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Revenues
 3 Months Ended
Apr. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2–Revenues
REMAINING PERFORMANCE OBLIGATIONS
Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.
As of April 3, 2026, we had $19 billion of RPO and expect to recognize approximately 62% and 82% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.
DISAGGREGATION OF REVENUES
We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.
Disaggregated revenues by customer-type were as follows:
Three Months Ended April 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
DoW and U.S. Intelligence Community$1,078 $249 $20 $822 $2,169 
Other U.S. government agencies(1)
403 924 272 27 1,626 
Commercial and non-U.S. customers
16 15 523 34 588 
Total$1,497 $1,188 $815 $883 $4,383 
Three Months Ended April 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
DoW and U.S. Intelligence Community$958 $269 $23 $809 $2,059 
Other U.S. government agencies(1)
429 898 276 34 1,637 
Commercial and non-U.S. customers
10 16 470 36 532 
Total$1,397 $1,183 $769 $879 $4,228 
(1) Includes federal government agencies other than the DoW and U.S. Intelligence Community, as well as state and local government agencies.
Disaggregated revenues by contract-type were as follows:
Three Months Ended April 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
Cost-reimbursement and fixed-price-incentive-fee
$904 $428 $174 $522 $2,028 
Firm-fixed-price344 730 435 274 1,783 
Time-and-materials and fixed-price-level-of-effort
249 30 206 87 572 
Total$1,497 $1,188 $815 $883 $4,383 
Three Months Ended April 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
Cost-reimbursement and fixed-price-incentive-fee
$795 $407 $169 $517 $1,888 
Firm-fixed-price343 735 434 257 1,769 
Time-and-materials and fixed-price-level-of-effort
259 41 166 105 571 
Total$1,397 $1,183 $769 $879 $4,228 
Disaggregated revenues by geographic location were as follows:
Three Months Ended April 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
United States
$1,497 $1,188 $466 $875 $4,026 
International
— — 349 8 357 
Total$1,497 $1,188 $815 $883 $4,383 
Three Months Ended April 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
United States
$1,397 $1,183 $433 $868 $3,881 
International
— — 336 11 347 
Total$1,397 $1,183 $769 $879 $4,228 
Revenues by customer-type, contract-type and geographic location exclude lease income of $17 million for both the three months ended April 3, 2026, and April 4, 2025.
CONTRACT ASSETS AND LIABILITIES
Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.
Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer. Unbilled receivables exclude amounts billable where the right to consideration is unconditional and not billed. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized.
The components of contract assets and contract liabilities consisted of the following:
(in millions)Balance sheet line itemApril 3,
2026		January 2,
2026
Contract assets - current:
Unbilled receivablesReceivables, net$865 $894 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$411 $348 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$5 $6 
(1) Certain contracts record revenue net of cost of revenues, and therefore, the respective deferred revenue balance will not fully convert to revenue.
The decrease in unbilled receivables was primarily due to the timing of billings on certain contracts, partially offset by revenue recognized on certain contracts. The increase in deferred revenue was primarily due to the acquisition of Entrust (see "Note 3–Acquisitions, Goodwill and Intangible Assets") and timing of advanced payments from customers, partially offset by revenue recognized during the period.
For the three months ended April 3, 2026, $56 million of revenue recognized was included as a contract liability at January 2, 2026. For the three months ended April 4, 2025, $137 million of revenue recognized was included as a contract liability at January 3, 2025.