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Unapproved Change Orders and Claims Against Clients | 12 Months Ended
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Jan. 02, 2026
Contractors [Abstract] |
Unapproved Change Orders and Claims Against Clients | Unapproved Change Orders and Claims Against Clients The amounts of unapproved change orders and claims against clients included in determining the profit or loss on contracts that has been recorded to date are as follows:
Dollars in millions | Fiscal 2025 |  | Fiscal 2024
Amounts included in project estimates-at-completion at beginning of fiscal year | $ | 104 |  |  | $ | 74 |
Net increase in project estimates | 67 |  |  | 57 |
Resolution of claim | — |  |  | (27) |
Approved change orders | (146) |  |  | — |
Amounts included in project-related estimates-at-completion at end of fiscal year | $ | 25 |  |  | $ | 104 |
Amounts recognized over time based on progress | $ | 13 |  |  | $ | 100 |
The balance as of January 2, 2026 relates to estimated recoveries of claims associated with certain U.S. government projects in our Mission Technology Solutions segment. In fiscal 2025, a resolution was reached regarding an outstanding unapproved change order within our Mission Technology Solutions segment for $128 million. In fiscal 2024, an outstanding legacy claim was resolved associated with a U.S. government project resulting in a $26 million decrease recognized in revenues on our consolidated statements of operations.

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