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Discontinued Operations | 6 Months Ended
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Jul. 04, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations HomeSafe, a joint venture with Tier One Relocation, informed us on June 18, 2025, that U.S. Transportation Command unexpectedly terminated HomeSafe's role in the Global Household Goods Contract. KBR owns a 72% interest in HomeSafe. The HomeSafe joint venture is a VIE that is consolidated for financial reporting purposes and was previously reported within our MTS business segment. As of July 4, 2025 substantially all of HomeSafe's operations, including run-off operations, have ceased. We disposed of HomeSafe in the second quarter of fiscal 2025 and determined that this disposal met the requirements to be reported as discontinued operations under ASC Subtopic 205-20 Discontinued Operations. We classified the disposal of HomeSafe as discontinued operations because it represents a strategic shift that significantly impacted our long-term operations plan. As such, the results of HomeSafe are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows for all periods presented. Financial Information of Discontinued Operations The key components of net income (loss) attributable to KBR from discontinued operations for the three and six months ended July 4, 2025 and June 28, 2024 were as follows:
| Three Months Ended |  | Six Months Ended
| July 4, 2025 |  | June 28, 2024 |  | July 4, 2025 |  | June 28, 2024
Dollars in millions |  |  |  |  |  |  |
Revenues | $ | 27 |  |  | $ | 8 |  |  | $ | 64 |  |  | $ | 8 |
Cost of revenues | (40) |  |  | (7) |  |  | (79) |  |  | (7) |
Gross profit (loss) | (13) |  |  | 1 |  |  | (15) |  |  | 1 |
Selling, general and administrative expenses | (22) |  |  | — |  |  | (27) |  |  | — |
Loss on disposal (a) | (22) |  |  | — |  |  | (22) |  |  | — |
Operating income (loss) | (57) |  |  | 1 |  |  | (64) |  |  | 1 |
Income (loss) from discontinued operations before income taxes | (57) |  |  | 1 |  |  | (64) |  |  | 1 |
Provision for income taxes | 9 |  |  | — |  |  | 10 |  |  | — |
Net income (loss) from discontinued operations, net of tax | (48) |  |  | 1 |  |  | (54) |  |  | 1 |
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations | (16) |  |  | 1 |  |  | (18) |  |  | 1 |
Net loss attributable to KBR from discontinued operations | $ | (32) |  |  | $ | — |  |  | $ | (36) |  |  | $ | — |
(a) Includes $64 million of asset impairments related to property, plant and equipment and write-offs of $30 million in other assets, offset by elimination of $72 million in other liabilities. The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's Condensed Consolidated Balance Sheets as of July 4, 2025 and January 3, 2025:
| July 4, 2025 |  | January 3, 2025 |  |
Dollars in millions |  |  |  |  |
Assets |  |  |  |  |
Cash and equivalents | $ | 1 |  |  | $ | 8 |  |  |
Accounts receivable, net of allowance for credit losses | 14 |  |  | 5 |  |  |
Contract assets | 3 |  |  | 2 |  |  |
Other current assets | 12 |  |  | 6 |  |  |
Total current assets of discontinued operations | 30 |  |  | 21 |  |  |
Property, plant, and equipment, net of accumulated depreciation | — |  |  | 52 |  |  |
Other assets | — |  |  | 26 |  |  |
Total non-current assets of discontinued operations | — |  |  | 78 |  |  |
Liabilities |  |  |  |  |
Accounts payable | $ | 24 |  |  | $ | 5 |  |  |
Contract liabilities | — |  |  | 8 |  |  |
Accrued salaries, wages and benefits | 3 |  |  | 2 |  |  |
Other current liabilities | 11 |  |  | — |  |  |
Total current liabilities of discontinued operations | 38 |  |  | 15 |  |  |
Other liabilities | — |  |  | 69 |  |  |
Total non-current liabilities of discontinued operations | — |  |  | 69 |  |  |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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