v3.25.1
CONTRACT ASSETS AND LIABILITIES
 3 Months Ended
Mar. 30, 2025
Revenue from Contract with Customer [Abstract]  
CONTRACT ASSETS AND LIABILITIES CONTRACT ASSETS AND LIABILITIES
Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows (in millions):
March 30,
2025		December 31,
2024
Contract assets $14,677 $12,957 
Contract liabilities9,375 9,795 
Contract assets are primarily driven by the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for which we have not yet billed our customers. During the quarter ended March 30, 2025, contract assets increased $1.7 billion primarily due to the F-35 program at Aeronautics and the Black Hawk program at RMS. There were no significant credit or impairment losses related to our contract assets during the quarters ended March 30, 2025 and March 31, 2024.
Contract liabilities decreased $420 million during the quarter ended March 30, 2025, primarily due to revenue recognized in excess of payments received on performance obligations. During the quarter ended March 30, 2025, we recognized $3.2 billion of our contract liabilities at December 31, 2024 as revenue. During the quarter ended March 31, 2024, we recognized $2.4 billion of our contract liabilities at December 31, 2023 as revenue.