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SALE OF RECEIVABLES | 6 Months Ended
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Jul. 03, 2026
Receivables [Abstract] |
SALE OF RECEIVABLES | RECEIVABLES Receivables were comprised of the following:
|  |  | As of
|  |  |  | July 3, |  |  |  | December 31,
(In thousands) |  |  |  | 2026 |  |  |  | 2025
Billed receivables |  |  |  | $ | 154,915 |  |  |  |  | $ | 87,089 |
Unbilled receivables (contract assets) |  |  |  | 649,052 |  |  |  |  | 628,529 |
Other |  |  |  | 23,392 |  |  |  |  | 14,638 |
Total receivables |  |  |  | $ | 827,359 |  |  |  |  | $ | 730,256 |
As of July 3, 2026 and December 31, 2025, substantially all billed receivables were due from the U.S. government, either directly as prime contractor to the U.S. government or as subcontractor to another prime contractor to the U.S. government. Because the Company's billed receivables are with the U.S. government, the Company does not believe it has a material credit risk exposure. Unbilled receivables are contract assets that represent revenue recognized on long-term contracts in excess of amounts billed as of the balance sheet date. The Company expects to bill customers for most of the July 3, 2026 contract assets during 2026. Changes in the balance of receivables are primarily due to the timing differences between performance and customers' payments. SALE OF RECEIVABLES The Company has a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd. (MUFG) for the sale of certain designated eligible receivables up to a maximum amount of $400.0 million with the U.S. government. Receivables sold under the MARPA Facility are without recourse for any U.S. government credit risk. The Company accounts for these receivable transfers under the MARPA Facility as sales under ASC Topic 860, Transfers and Servicing, and removes the sold receivables from its balance sheet. The fair value of the sold receivables approximated their book value due to their short-term nature.
|  |  |  |  |  |  | As of and for the |  |  |  |  |  |
|  |  |  |  |  | Six Months Ended |  |  |  |
|  |  |  |  |  |  |  |  |  | July 3, |  | June 27, |  |  |  |  |  |  |  |
(In thousands) |  |  |  |  |  |  |  |  |  | 2026 |  | 2025 |  |  |  |  |  |  |  |
Beginning balance: |  |  |  |  |  |  |  |  |  | $ | 276,720 |  |  | $ | 218,897 |  |  |  |  |  |  |  |  |
Sale of receivables |  |  |  |  |  |  |  |  |  | 2,034,406 |  |  | 1,708,624 |  |  |  |  |  |  |  |  |
Cash collections |  |  |  |  |  |  |  |  |  | (2,177,281) |  |  | (1,699,604) |  |  |  |  |  |  |  |  |
Outstanding balance sold to MUFG 1 |  |  |  |  |  |  |  |  |  | 133,845 |  |  | 227,917 |  |  |  |  |  |  |  |  |
Cash collected, not remitted to MUFG 2 |  |  |  |  |  |  |  |  |  | (20,841) |  |  | (77,963) |  |  |  |  |  |  |  |  |
Remaining sold receivables |  |  |  |  |  |  |  |  |  | $ | 113,004 |  |  | $ | 149,954 |  |  |  |  |  |  |  |  |
1 For the six months ended July 3, 2026, the Company recorded a net cash outflow, excluding fees, from sale of receivables of $142.9 million from operating activities.
2 Includes the cash collected on behalf of, but not yet remitted to, MUFG as of July 3, 2026. This balance is included in other accrued liabilities as of the balance sheet date.
During the three months ended July 3, 2026 and June 27, 2025, the Company incurred purchase discount fees, net of servicing fees, of $2.2 million and $2.6 million, respectively, which are presented in other expense, net on the Condensed Consolidated Statements of Income. During the six months ended July 3, 2026 and June 27, 2025, the Company incurred purchase discount fees, net of servicing fees, of $4.6 million and $5.1 million, respectively, which are presented in other expense, net on the Condensed Consolidated Statements of Income and are reflected as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of July 3, 2026. Proceeds from the sale of receivables are reflected as cash inflows from operating activities on the Condensed Consolidated Statements of Cash Flows.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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