XML 24 R11.htm IDEA: XBRL DOCUMENT v3.25.3
Revenue
 9 Months Ended
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 EndedNine Months Ended
October 3,September 27,October 3,September 27,
Dollars in millions2025202420252024
Mission Technology Solutions
     Science & Space$292 $308 $877 $897 
     Defense & Intel814 712 2,418 2,034 
     Readiness & Sustainment300 386 991 1,116 
Total Mission Technology Solutions1,406 1,406 4,286 4,047 
Sustainable Technology Solutions525 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, 2025Nine 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, 2024Nine 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 Clients288 — 288 836 — 836 
International Government Clients220 — 220 660 — 660 
Commercial and Infrastructure Clients63 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, 2025Nine 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 
Europe343 54 397 1,013 197 1,210 
     Middle East28 172 200 93 490 583 
     Australia62 87 149 168 250 418 
     Africa20 44 64 56 128 184 
     Asia2 28 30 15 96 111 
     Other countries13 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, 2024Nine Months Ended September 27, 2024
Total by Countries/Regions
MTSSTSTotal
MTS
STS
Total
     United States$896 $136 $1,032 $2,535 $392 $2,927 
Europe400 68 468 1,183 211 1,394 
     Middle East25 153 178 78 453 531 
     Australia53 81 134 150 241 391 
     Africa17 30 47 50 96 146 
     Asia1 36 37 7 86 93 
     Other countries14 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, 2025Nine Months Ended October 3, 2025
Dollars in millions
MTS
STS
Total
MTS
STS
Total
     Cost Reimbursable$823 $— $823 $2,567 $— $2,567 
     Time-and-Materials238 335 573 725 1,054 1,779 
     Fixed Price345 190 535 994 561 1,555 
Total revenue$1,406 $525 $1,931 $4,286 $1,615 $5,901 
Three Months Ended September 27, 2024Nine Months Ended September 27, 2024
Dollars in millions
MTS
STS
Total
MTS
STS
Total
     Cost Reimbursable$898 $— $898 $2,581 $— $2,581 
     Time-and-Materials226 337 563 634 990 1,624 
     Fixed Price282 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 millions20252025
     Unbilled$547 $525 
     Trade & other575 541 
Accounts receivable$1,122 $1,066