| Schedule of Selected Financial Information by Business Segments |
The following table presents operating results by business segment and a reconciliation to total income before income taxes: | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter | | Year to Date | | (In millions) | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | Revenue | | | | | | | | | CS | $ | 1,462 | | | $ | 1,382 | | | $ | 4,190 | | | $ | 4,022 | | | IMS | 1,700 | | | 1,608 | | | 4,914 | | | 4,906 | | | SAS | 1,809 | | | 1,683 | | | 5,207 | | | 5,141 | | | AR | 755 | | | 669 | | | 2,082 | | | 1,886 | | Other(1) | (67) | | | (50) | | | (176) | | | (153) | | | Total revenue | 5,659 | | | 5,292 | | | 16,217 | | | 15,802 | | | Cost of revenue | | | | | | | | | CS | $ | (911) | | | $ | (858) | | | $ | (2,637) | | | $ | (2,571) | | | IMS | (1,308) | | | (1,203) | | | (3,808) | | | (3,743) | | | SAS | (1,425) | | | (1,325) | | | (4,112) | | | (4,020) | | | AR | (589) | | | (535) | | | (1,627) | | | (1,466) | | Other(1) | 68 | | | 48 | | | 146 | | | 125 | | | Total cost of revenue | (4,165) | | | (3,873) | | | (12,038) | | | (11,675) | | Other segment costs(2) | | | | | | | | | CS | $ | (169) | | | $ | (165) | | | $ | (490) | | | $ | (453) | | | IMS | (188) | | | (201) | | | (485) | | | (574) | | | SAS | (166) | | | (163) | | | (481) | | | (495) | | | AR | (70) | | | (58) | | | (190) | | | (186) | | Other(1) | (1) | | | 2 | | | 30 | | | 28 | | Total other segment costs(3) | (594) | | | (585) | | | (1,616) | | | (1,680) | | | Operating income | | | | | | | | | CS | $ | 382 | | | $ | 359 | | | $ | 1,063 | | | $ | 998 | | | IMS | 204 | | | 204 | | | 621 | | | 589 | | | SAS | 218 | | | 195 | | | 614 | | | 626 | | | AR | 96 | | | 76 | | | 265 | | | 234 | | | Unallocated corporate items | (279) | | | (339) | | | (846) | | | (1,098) | | | Total operating income | 621 | | | 495 | | | 1,717 | | | 1,349 | | | Non-service FAS pension income and other, net | 98 | | | 101 | | | 287 | | | 275 | | | Interest expense, net | (152) | | | (166) | | | (454) | | | (514) | | | Income before income taxes | $ | 567 | | | $ | 430 | | | $ | 1,550 | | | $ | 1,110 | |
_____________ (1) Includes corporate headquarters and intersegment eliminations. (2) Other segment costs consist of company-funded R&D costs, selling and marketing costs and other General and Administrative (“G&A”) expenses, which include a portion of depreciation and amortization expenses that are disclosed by segment under the “Other Financial Information” heading below in this Note. (3) Includes gains recognized in connection with the monetization of certain legacy end-of-life assets.
|
| Schedule of Disaggregation of Revenue by Segment |
The following table presents capital expenditures and depreciation and amortization by business segment: | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter | | Year to Date | | (In millions) | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | Capital Expenditures | | | | | | | | | CS | $ | 19 | | | $ | 9 | | | $ | 40 | | | $ | 27 | | | IMS | 16 | | | 25 | | | 51 | | | 93 | | | SAS | 31 | | | 23 | | | 74 | | | 107 | | | AR | 33 | | | 11 | | | 62 | | | 26 | | | Corporate | 20 | | | 10 | | | 39 | | | 37 | | | Total capital expenditures | $ | 119 | | | $ | 78 | | | $ | 266 | | | $ | 290 | | | | | | | | | | | Depreciation and Amortization | | | | | | | | | CS | $ | 13 | | | $ | 14 | | | $ | 39 | | | $ | 42 | | | IMS | 20 | | | 15 | | | 52 | | | 46 | | | SAS | 40 | | | 35 | | | 106 | | | 92 | | | AR | 12 | | | 14 | | | 37 | | | 37 | | | Corporate | 224 | | | 246 | | | 679 | | | 746 | | | Total depreciation and amortization | $ | 309 | | | $ | 324 | | | $ | 913 | | | $ | 963 | |
We disaggregate revenue for all four business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter | | 2025 | | 2024 | | (In millions) | CS | | IMS | | SAS | | AR | | CS | | IMS | | SAS | | AR | | | | | | | | | | | | | | | | | | Revenue By Customer Relationship | | Prime contractor | $ | 1,127 | | | $ | 1,220 | | | $ | 1,114 | | | $ | 173 | | | $ | 977 | | | $ | 1,036 | | | $ | 1,008 | | | $ | 164 | | | Subcontractor | 317 | | | 459 | | | 675 | | | 574 | | | 388 | | | 557 | | | 663 | | | 499 | | | Intersegment | 18 | | | 21 | | | 20 | | | 8 | | | 17 | | | 15 | | | 12 | | | 6 | | | Total segment | $ | 1,462 | | | $ | 1,700 | | | $ | 1,809 | | | $ | 755 | | | $ | 1,382 | | | $ | 1,608 | | | $ | 1,683 | | | $ | 669 | | | | | | | | | | | | | | | | | | | Revenue By Contract Type | Fixed-price | $ | 1,231 | | | $ | 1,192 | | | $ | 1,203 | | | $ | 490 | | | $ | 1,146 | | | $ | 1,196 | | | $ | 1,012 | | | $ | 423 | | | Cost-type | 213 | | | 487 | | | 586 | | | 257 | | | 219 | | | 397 | | | 659 | | | 240 | | | Intersegment | 18 | | | 21 | | | 20 | | | 8 | | | 17 | | | 15 | | | 12 | | | 6 | | | Total segment | $ | 1,462 | | | $ | 1,700 | | | $ | 1,809 | | | $ | 755 | | | $ | 1,382 | | | $ | 1,608 | | | $ | 1,683 | | | $ | 669 | | | | | | | | | | | | | | | | | | | Revenue By Geographical Region | | United States | $ | 948 | | | $ | 1,290 | | | $ | 1,572 | | | $ | 619 | | | $ | 975 | | | $ | 1,150 | | | $ | 1,484 | | | $ | 651 | | | International | 496 | | | 389 | | | 217 | | | 128 | | | 390 | | | 443 | | | 187 | | | 12 | | | Intersegment | 18 | | | 21 | | | 20 | | | 8 | | | 17 | | | 15 | | | 12 | | | 6 | | | Total segment | $ | 1,462 | | | $ | 1,700 | | | $ | 1,809 | | | $ | 755 | | | $ | 1,382 | | | $ | 1,608 | | | $ | 1,683 | | | $ | 669 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year to Date | | 2025 | | 2024 | | (In millions) | CS | | IMS | | SAS | | AR | | CS | | IMS | | SAS | | AR | | | | | | | | | | | | | | | | | | Revenue By Customer Relationship | | Prime contractor | $ | 3,154 | | | $ | 3,440 | | | $ | 3,230 | | | $ | 473 | | | $ | 2,805 | | | $ | 3,176 | | | $ | 3,192 | | | $ | 495 | | | Subcontractor | 989 | | | 1,418 | | | 1,927 | | | 1,586 | | | 1,164 | | | 1,691 | | | 1,909 | | | 1,370 | | | Intersegment | 47 | | | 56 | | | 50 | | | 23 | | | 53 | | | 39 | | | 40 | | | 21 | | | Total segment | $ | 4,190 | | | $ | 4,914 | | | $ | 5,207 | | | $ | 2,082 | | | $ | 4,022 | | | $ | 4,906 | | | $ | 5,141 | | | $ | 1,886 | | | | | | | | | | | | | | | | | | | Revenue By Contract Type | Fixed-price | $ | 3,550 | | | $ | 3,695 | | | $ | 3,392 | | | $ | 1,332 | | | $ | 3,329 | | | $ | 3,745 | | | $ | 3,192 | | | $ | 1,138 | | | Cost-type | 593 | | | 1,163 | | | 1,765 | | | 727 | | | 640 | | | 1,122 | | | 1,909 | | | 727 | | | Intersegment | 47 | | | 56 | | | 50 | | | 23 | | | 53 | | | 39 | | | 40 | | | 21 | | | Total segment | $ | 4,190 | | | $ | 4,914 | | | $ | 5,207 | | | $ | 2,082 | | | $ | 4,022 | | | $ | 4,906 | | | $ | 5,141 | | | $ | 1,886 | | | | | | | | | | | | | | | | | | | Revenue By Geographical Region | | United States | $ | 2,695 | | | $ | 3,671 | | | $ | 4,515 | | | $ | 1,825 | | | $ | 2,786 | | | $ | 3,537 | | | $ | 4,479 | | | $ | 1,828 | | | International | 1,448 | | | 1,187 | | | 642 | | | 234 | | | 1,183 | | | 1,330 | | | 622 | | | 37 | | | Intersegment | 47 | | | 56 | | | 50 | | | 23 | | | 53 | | | 39 | | | 40 | | | 21 | | | Total segment | $ | 4,190 | | | $ | 4,914 | | | $ | 5,207 | | | $ | 2,082 | | | $ | 4,022 | | | $ | 4,906 | | | $ | 5,141 | | | $ | 1,886 | |
|
| Schedule of Total Assets by Segment |
Total assets by business segment were as follows: | | | | | | | | | | | | | (In millions) | October 3, 2025 | | January 3, 2025 | | | | | | CS | $ | 7,186 | | | $ | 7,060 | | | IMS | 9,741 | | | 10,389 | | | SAS | 9,117 | | | 8,705 | | | AR | 4,811 | | | 4,826 | | Corporate(1) | 10,159 | | | 11,021 | | | Total assets | $ | 41,014 | | | $ | 42,001 | |
_______________ (1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company of $7,072 million and $7,639 million as of October 3, 2025 and January 3, 2025, respectively.
|