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Revenue
6 Months Ended
Jul. 04, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue

We disaggregate our revenue from customers by business unit, customer type, geographic destination and contract type for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue by business unit and reportable segment was as follows:
Three Months EndedSix Months Ended
July 4,June 28,July 4,June 28,
Dollars in millions2025202420252024
Mission Technology Solutions
     Science & Space$289 $291 $585 $589 
     Defense & Intel785 651 1,604 1,322 
     Readiness & Sustainment338 374 691 730 
Total Mission Technology Solutions1,412 1,316 2,880 2,641 
Sustainable Technology Solutions540 531 1,090 1,024 
Total revenue$1,952 $1,847 $3,970 $3,665 

Revenue by customer type was as follows:
Three Months Ended July 4, 2025Six Months Ended July 4, 2025

Dollars in millions
MTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients
$856 $— $856 $1,762 $— $1,762 
U.S. Government Federal Civilian Clients
273 — 273 554 — 554 
International Government Clients
223 — 223 442 — 442 
Commercial and Infrastructure Clients
60 540 600 122 1,090 1,212 
Total revenue$1,412 $540 $1,952 $2,880 $1,090 $3,970 
Three Months Ended June 28, 2024Six Months Ended June 28, 2024

Dollars in millions
MTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$769 $— $769 $1,527 $— $1,527 
U.S. Government Federal Civilian Clients268 — 268 548 — 548 
International Government Clients219 — 219 440 — 440 
Commercial and Infrastructure Clients60 531 591 126 1,024 1,150 
Total revenue$1,316 $531 $1,847 $2,641 $1,024 $3,665 
Revenue by geographic destination was as follows:
Three Months Ended July 4, 2025Six Months Ended July 4, 2025
Total by Countries/Regions
Dollars in millions
Mission Technology SolutionsSustainable Technology SolutionsTotalMission Technology SolutionsSustainable Technology SolutionsTotal
     United States$988 $122 $1,110 $1,964 $255 $2,219 
Europe290 66 356 670 143 813 
     Middle East39 166 205 65 318 383 
     Australia56 81 137 106 163 269 
     Africa18 51 69 36 84 120 
     Asia10 27 37 13 68 81 
     Other countries11 27 38 26 59 85 
Total revenue$1,412 $540 $1,952 $2,880 $1,090 $3,970 
Three Months Ended June 28, 2024Six Months Ended June 28, 2024
Total by Countries/Regions
Dollars in millions
Mission Technology SolutionsSustainable Technology SolutionsTotalMission Technology SolutionsSustainable Technology SolutionsTotal
     United States$821 $129 $950 $1,639 $256 $1,895 
Europe387 71 458 783 143 926 
     Middle East23 165 188 53 300 353 
     Australia50 86 136 97 160 257 
     Africa16 33 49 33 66 99 
     Asia23 25 50 56 
     Other countries17 24 41 30 49 79 
Total revenue$1,316 $531 $1,847 $2,641 $1,024 $3,665 

Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:    
Three Months Ended July 4, 2025Six Months Ended July 4, 2025
Dollars in millionsMission Technology SolutionsSustainable Technology SolutionsTotalMission Technology SolutionsSustainable Technology SolutionsTotal
     Cost Reimbursable$853 $— $853 $1,744 $— $1,744 
     Time-and-Materials236 379 615 487 719 1,206 
     Fixed Price323 161 484 649 371 1,020 
Total revenue$1,412 $540 $1,952 $2,880 $1,090 $3,970 
Three Months Ended June 28, 2024Six Months Ended June 28, 2024
Dollars in millionsMission Technology SolutionsSustainable Technology SolutionsTotalMission Technology SolutionsSustainable Technology SolutionsTotal
     Cost Reimbursable$839 $— $839 $1,683 $— $1,683 
     Time-and-Materials209 344 553 408 653 1,061 
     Fixed Price268 187 455 550 371 921 
Total revenue$1,316 $531 $1,847 $2,641 $1,024 $3,665 

Performance Obligations and Contract Liabilities

Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations
satisfied in previous periods for such matters of $26 million and $23 million for the three months ended July 4, 2025 and June 28, 2024, respectively, and $34 million and $31 million for the six months ended July 4, 2025 and June 28, 2024, respectively.

On July 4, 2025, we had $13.1 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 39% in years two through five and 25% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of July 4, 2025.

We recognized revenue of $214 million and $225 million for the six months ended July 4, 2025 and June 28, 2024, respectively, which was previously included in the contract liability balance at the beginning of each period.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. During the three and six months ended July 4, 2025 we recognized a favorable change in operating income of $50 million and $65 million, respectively, as a result of changes in estimates on an LNG project.

Accounts Receivable    
July 4,January 3,
Dollars in millions20252025
     Unbilled$602 $525 
     Trade & other611 541 
Accounts receivable$1,213 $1,066