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v3.25.3

Revenue | 9 Months Ended
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Oct. 03, 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 Ended |  | Nine Months Ended
| October 3, |  | September 27, |  | October 3, |  | September 27,
Dollars in millions | 2025 |  | 2024 |  | 2025 |  | 2024
Mission Technology Solutions |  |  |  |  |  |  |
Science & Space | $ | 292 |  |  | $ | 308 |  |  | $ | 877 |  |  | $ | 897 |
Defense & Intel | 814 |  |  | 712 |  |  | 2,418 |  |  | 2,034 |
Readiness & Sustainment | 300 |  |  | 386 |  |  | 991 |  |  | 1,116 |
Total Mission Technology Solutions | 1,406 |  |  | 1,406 |  |  | 4,286 |  |  | 4,047 |
Sustainable Technology Solutions | 525 |  |  | 531 |  |  | 1,615 |  |  | 1,555 |
Total revenue | $ | 1,931 |  |  | $ | 1,937 |  |  | $ | 5,901 |  |  | $ | 5,602 |
Revenue by customer type was as follows:
|  | Three Months Ended October 3, 2025 |  | Nine Months Ended October 3, 2025
Dollars in millions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
U.S. Government Defense and Intelligence Clients |  | $ | 832 |  |  | $ | — |  |  | $ | 832 |  |  | $ | 2,594 |  |  | $ | — |  |  | $ | 2,594 |
U.S. Government Federal Civilian Clients |  | 274 |  |  | — |  |  | 274 |  |  | 828 |  |  | — |  |  | 828 |
International Government Clients |  | 236 |  |  | — |  |  | 236 |  |  | 678 |  |  | — |  |  | 678 |
Commercial and Infrastructure Clients |  | 64 |  |  | 525 |  |  | 589 |  |  | 186 |  |  | 1,615 |  |  | 1,801 |
Total revenue |  | $ | 1,406 |  |  | $ | 525 |  |  | $ | 1,931 |  |  | $ | 4,286 |  |  | $ | 1,615 |  |  | $ | 5,901 |
|  | Three Months Ended September 27, 2024 |  | Nine Months Ended September 27, 2024
Dollars in millions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
U.S. Government Defense and Intelligence Clients |  | $ | 835 |  |  | $ | — |  |  | $ | 835 |  |  | $ | 2,362 |  |  | $ | — |  |  | $ | 2,362 |
U.S. Government Federal Civilian Clients |  | 288 |  |  | — |  |  | 288 |  |  | 836 |  |  | — |  |  | 836 |
International Government Clients |  | 220 |  |  | — |  |  | 220 |  |  | 660 |  |  | — |  |  | 660 |
Commercial and Infrastructure Clients |  | 63 |  |  | 531 |  |  | 594 |  |  | 189 |  |  | 1,555 |  |  | 1,744 |
Total revenue |  | $ | 1,406 |  |  | $ | 531 |  |  | $ | 1,937 |  |  | $ | 4,047 |  |  | $ | 1,555 |  |  | $ | 5,602 |
Revenue by geographic destination was as follows:
Dollars in millions |  | Three Months Ended October 3, 2025 |  | Nine Months Ended October 3, 2025
Total by Countries/Regions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
United States |  | $ | 938 |  |  | $ | 102 |  |  | $ | 1,040 |  |  | $ | 2,902 |  |  | $ | 357 |  |  | $ | 3,259 |
Europe |  | 343 |  |  | 54 |  |  | 397 |  |  | 1,013 |  |  | 197 |  |  | 1,210 |
Middle East |  | 28 |  |  | 172 |  |  | 200 |  |  | 93 |  |  | 490 |  |  | 583 |
Australia |  | 62 |  |  | 87 |  |  | 149 |  |  | 168 |  |  | 250 |  |  | 418 |
Africa |  | 20 |  |  | 44 |  |  | 64 |  |  | 56 |  |  | 128 |  |  | 184 |
Asia |  | 2 |  |  | 28 |  |  | 30 |  |  | 15 |  |  | 96 |  |  | 111 |
Other countries |  | 13 |  |  | 38 |  |  | 51 |  |  | 39 |  |  | 97 |  |  | 136 |
Total revenue |  | $ | 1,406 |  |  | $ | 525 |  |  | $ | 1,931 |  |  | $ | 4,286 |  |  | $ | 1,615 |  |  | $ | 5,901 |
Dollars in millions |  | Three Months Ended September 27, 2024 |  | Nine Months Ended September 27, 2024
Total by Countries/Regions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
United States |  | $ | 896 |  |  | $ | 136 |  |  | $ | 1,032 |  |  | $ | 2,535 |  |  | $ | 392 |  |  | $ | 2,927 |
Europe |  | 400 |  |  | 68 |  |  | 468 |  |  | 1,183 |  |  | 211 |  |  | 1,394 |
Middle East |  | 25 |  |  | 153 |  |  | 178 |  |  | 78 |  |  | 453 |  |  | 531 |
Australia |  | 53 |  |  | 81 |  |  | 134 |  |  | 150 |  |  | 241 |  |  | 391 |
Africa |  | 17 |  |  | 30 |  |  | 47 |  |  | 50 |  |  | 96 |  |  | 146 |
Asia |  | 1 |  |  | 36 |  |  | 37 |  |  | 7 |  |  | 86 |  |  | 93 |
Other countries |  | 14 |  |  | 27 |  |  | 41 |  |  | 44 |  |  | 76 |  |  | 120 |
Total revenue |  | $ | 1,406 |  |  | $ | 531 |  |  | $ | 1,937 |  |  | $ | 4,047 |  |  | $ | 1,555 |  |  | $ | 5,602 |
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 October 3, 2025 |  | Nine Months Ended October 3, 2025
Dollars in millions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
Cost Reimbursable |  | $ | 823 |  |  | $ | — |  |  | $ | 823 |  |  | $ | 2,567 |  |  | $ | — |  |  | $ | 2,567 |
Time-and-Materials |  | 238 |  |  | 335 |  |  | 573 |  |  | 725 |  |  | 1,054 |  |  | 1,779 |
Fixed Price |  | 345 |  |  | 190 |  |  | 535 |  |  | 994 |  |  | 561 |  |  | 1,555 |
Total revenue |  | $ | 1,406 |  |  | $ | 525 |  |  | $ | 1,931 |  |  | $ | 4,286 |  |  | $ | 1,615 |  |  | $ | 5,901 |
|  | Three Months Ended September 27, 2024 |  | Nine Months Ended September 27, 2024
Dollars in millions |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
Cost Reimbursable |  | $ | 898 |  |  | $ | — |  |  | $ | 898 |  |  | $ | 2,581 |  |  | $ | — |  |  | $ | 2,581 |
Time-and-Materials |  | 226 |  |  | 337 |  |  | 563 |  |  | 634 |  |  | 990 |  |  | 1,624 |
Fixed Price |  | 282 |  |  | 194 |  |  | 476 |  |  | 832 |  |  | 565 |  |  | 1,397 |
Total revenue |  | $ | 1,406 |  |  | $ | 531 |  |  | $ | 1,937 |  |  | $ | 4,047 |  |  | $ | 1,555 |  |  | $ | 5,602 |
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 $3 million and $24 million for the three months ended October 3, 2025 and September 27, 2024, respectively, and $31 million and $46 million for the nine months ended October 3, 2025 and September 27, 2024, respectively. On October 3, 2025, we had $13.5 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 37% of our remaining performance obligations as revenue within one year, 39% in years two through five and 24% 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 October 3, 2025. We recognized revenue of $228 million and $256 million for the nine months ended October 3, 2025 and September 27, 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 nine months ended October 3, 2025 we recognized a favorable change in operating income of $40 million and $107 million, respectively, as a result of changes in estimates on an LNG project. Accounts Receivable
| October 3, |  | January 3, |  |  |  |
Dollars in millions | 2025 |  | 2025 |  |  |  |
Unbilled | $ | 547 |  |  | $ | 525 |  |  |  |  |
Trade & other | 575 |  |  | 541 |  |  |  |  |
Accounts receivable | $ | 1,122 |  |  | $ | 1,066 |  |  |  |  |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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