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Revenue
12 Months Ended
Jan. 02, 2026
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:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Mission Technology Solutions
Science & Space$1,126 $1,188 $1,127 
Defense & Intel3,178 2,887 2,497 
Readiness & Sustainment1,277 1,480 1,495 
Total Mission Technology Solutions$5,581 $5,555 $5,119 
Sustainable Technology Solutions$2,205 $2,155 $1,837 
Total revenue$7,786 $7,710 $6,956 

Revenue by customer type was as follows:
Year ended
January 2, 2026January 3, 2025December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$3,370 $— $3,370 $3,292 $— $3,292 $3,039 $— $3,039 
U.S. Government Federal Civilian Clients1,057 — 1,057 1,112 — 1,112 1,052 — 1,052 
International Government Clients905 — 905 891 — 891 791 — 791 
Commercial and Infrastructure Clients249 2,205 2,454 260 2,155 2,415 237 1,837 2,074 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 
Revenue by geographic destination was as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Total by Countries/RegionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
United States$3,772 $472 $4,244 $3,503 $542 $4,045 $3,096 $521 $3,617 
Europe1,313 271 1,584 1,595 299 1,894 1,569 247 1,816 
Middle East123 667 790 110 621 731 105 423 528 
Australia219 329 548 202 324 526 204 292 496 
Africa77 176 253 70 131 201 70 106 176 
Asia20 122 142 18 134 152 17 152 169 
Other countries57 168 225 57 104 161 58 96 154 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 

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:    

Year ended January 2, 2026Year ended January 3, 2025Year ended December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$3,305 $— $3,305 $3,507 $— $3,507 $3,287 $— $3,287 
Time-and-Materials938 1,373 2,311 892 1,362 2,254 846 1,166 2,012 
Fixed Price1,338 832 2,170 1,156 793 1,949 986 671 1,657 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 

Performance Obligations

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 $48 million, $30 million and $15 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively.

On January 2, 2026, we had $13.3 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 41% in years two through five and 23% 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 January 2, 2026.

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 fiscal 2025, we recognized a favorable change in operating income of $134 million as a result of changes in estimates on an LNG project.

Contract Assets and Contract Liabilities

Contract assets were $280 million and $271 million and contract liabilities were $331 million and $328 million, at January 2, 2026 and January 3, 2025, respectively. The increase in contract assets was primarily attributed to revenue recognized on certain contracts partially offset by the timing of billings. The increase in contract liabilities was due to the timing of advance payments and revenue recognized during the period. We recognized revenue of $233 million for the year ended January 2, 2026, which was previously included in the contract liability balance at January 3, 2025.
Accounts Receivable

Dollars in millionsJanuary 2, 2026January 3, 2025
Unbilled$520 $525 
Trade & other566 541 
Accounts receivable, net$1,086 $1,066