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Spin off | 9 Months Ended
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Oct. 03, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Spin off | 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 October 3, 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 nine months ended October 3, 2025 and September 27, 2024 were as follows:
| Three Months Ended |  | Nine Months Ended
Dollars in millions | October 3, 2025 |  | September 27, 2024 |  | October 3, 2025 |  | September 27, 2024
Revenues | $ | 3 |  |  | $ | 10 |  |  | $ | 67 |  |  | $ | 18 |
Cost of revenues | (3) |  |  | (9) |  |  | (82) |  |  | (16) |
Gross profit (loss) | — |  |  | 1 |  |  | (15) |  |  | 2 |
Selling, general and administrative expenses | (2) |  |  | — |  |  | (29) |  |  | — |
Loss on disposal (a) | — |  |  | — |  |  | (22) |  |  | — |
Other | — |  |  | (1) |  |  | — |  |  | (1) |
Operating income (loss) | (2) |  |  | — |  |  | (66) |  |  | 1 |
Income (loss) from discontinued operations before income taxes | (2) |  |  | — |  |  | (66) |  |  | 1 |
Provision for income taxes | 1 |  |  | — |  |  | 11 |  |  | — |
Net income (loss) from discontinued operations, net of tax | (1) |  |  | — |  |  | (55) |  |  | 1 |
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations | — |  |  | — |  |  | (18) |  |  | 1 |
Net loss attributable to KBR from discontinued operations | $ | (1) |  |  | $ | — |  |  | $ | (37) |  |  | $ | — |
(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 during the nine months ended October 3, 2025. 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 October 3, 2025 and January 3, 2025:
Dollars in millions | October 3, 2025 |  | January 3, 2025 |  |
Assets |  |  |  |  |
Cash and equivalents | $ | — |  |  | $ | 8 |  |  |
Accounts receivable, net of allowance for credit losses | 4 |  |  | 5 |  |  |
Contract assets | 1 |  |  | 2 |  |  |
Other current assets | 12 |  |  | 6 |  |  |
Total current assets of discontinued operations | $ | 17 |  |  | $ | 21 |  |  |
Property, plant, and equipment, net of accumulated depreciation | $ | — |  |  | $ | 52 |  |  |
Other assets | — |  |  | 26 |  |  |
Total non-current assets of discontinued operations | $ | — |  |  | $ | 78 |  |  |
Liabilities |  |  |  |  |
Accounts payable | $ | 11 |  |  | $ | 5 |  |  |
Contract liabilities | 2 |  |  | 8 |  |  |
Accrued salaries, wages and benefits | 2 |  |  | 2 |  |  |
Other current liabilities | 9 |  |  | — |  |  |
Total current liabilities of discontinued operations | $ | 24 |  |  | $ | 15 |  |  |
Other liabilities | $ | — |  |  | $ | 69 |  |  |
Total non-current liabilities of discontinued operations | $ | — |  |  | $ | 69 |  |  |
Spin-off Mission Technology Solutions Spin-off In September 2025, the Company announced its intention to spin off its Mission Technology Solutions business into a separate, U.S. publicly-traded company. The planned spin-off is intended to be tax-free to KBR and its shareholders for U.S. federal income tax purposes and targeting completion by mid-to-late 2026. The spin-off will be subject to final approval by KBR's Board of Directors and other customary conditions, including receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S. Internal Revenue Service with respect to the tax treatment of the transaction for U.S. federal income tax purposes, the effectiveness of a registration statement on Form 10 filed with the SEC, satisfactory completion of financing, and other regulatory approvals. Because the intended transaction is a spin-off, the Mission Technology Solutions business is not classified as held for sale and will be reported as continuing operations.

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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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