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Discontinued Operations | 12 Months Ended
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Jan. 02, 2026
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. As of January 2, 2026 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 consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows for all periods presented. HomeSafe was previously reported within our MTS business segment. Financial Information of Discontinued Operations The key components of net income (loss) attributable to KBR from discontinued operations for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:
|  |  | Year ended
Dollars in millions |  |  |  |  | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
Revenues |  |  |  |  | $ | 67 |  |  | $ | 32 |  |  | $ | — |
Cost of revenues |  |  |  |  | (83) |  |  | (28) |  |  | — |
Gross profit (loss) |  |  |  |  | (16) |  |  | 4 |  |  | — |
Selling, general and administrative expenses |  |  |  |  | (30) |  |  | (1) |  |  | (1) |
Loss on disposal (a) |  |  |  |  | (22) |  |  | — |  |  | — |
Operating income (loss) |  |  |  |  | (68) |  |  | 3 |  |  | (1) |
Income (loss) from discontinued operations before income taxes |  |  |  |  | (68) |  |  | 3 |  |  | (1) |
Provision for income taxes |  |  |  |  | 13 |  |  | (1) |  |  | — |
Net income (loss) from discontinued operations, net of tax |  |  |  |  | (55) |  |  | 2 |  |  | (1) |
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations |  |  |  |  | (19) |  |  | 1 |  |  | — |
Net income (loss) attributable to KBR from discontinued operations |  |  |  |  | $ | (36) |  |  | $ | 1 |  |  | $ | (1) |
(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 year ended January 2, 2026. The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's consolidated balance sheets as of January 2, 2026 and January 3, 2025:
Dollars in millions | January 2, 2026 |  | January 3, 2025 |  |
Assets |  |  |  |  |
Cash and cash equivalents | $ | 5 |  |  | $ | 8 |  |  |
Accounts receivable, net of allowance for credit losses | 1 |  |  | 5 |  |  |
Contract assets | — |  |  | 2 |  |  |
Other current assets | 13 |  |  | 6 |  |  |
Total current assets of discontinued operations | $ | 19 |  |  | $ | 21 |  |  |
Property, plant, and equipment, net of accumulated depreciation | $ | — |  |  | $ | 52 |  |  |
Other assets | — |  |  | 26 |  |  |
Total non-current assets of discontinued operations | $ | — |  |  | $ | 78 |  |  |
Liabilities |  |  |  |  |
Accounts payable | $ | 8 |  |  | $ | 5 |  |  |
Contract liabilities | 2 |  |  | 8 |  |  |
Accrued salaries, wages and benefits | 1 |  |  | 2 |  |  |
Other current liabilities | 8 |  |  | — |  |  |
Total current liabilities of discontinued operations | $ | 19 |  |  | $ | 15 |  |  |
Other liabilities | $ | — |  |  | $ | 69 |  |  |
Total non-current liabilities of discontinued operations | $ | — |  |  | $ | 69 |  |  |
Spin-off Mission Technology Solutions Spin-off In September 2025, we announced our intention to spin off our Mission Technology Solutions business into a separate, U.S. publicly-traded company. The Planned Spin-Off is intended to be tax-free to us and our shareholders for U.S. federal income tax purposes and targeting completion in the second half of fiscal 2026. The spin-off will be subject to final approval by our 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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