v3.25.3
Revenues
 9 Months Ended
Oct. 03, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2–Revenues
REMAINING PERFORMANCE OBLIGATIONS
Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.
As of October 3, 2025, we had $17 billion of RPO and expect to recognize approximately 64% and 82% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.
DISAGGREGATION OF REVENUES
We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.
Disaggregated revenues by customer-type were as follows:
Three Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,456 $241 $10 $536 $2,243 
Other U.S. government agencies(1)
513 1,034 89 16 1,652 
Commercial and non-U.S. customers
32 21 471 30 554 
Total$2,001 $1,296 $570 $582 $4,449 
Three Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,281 $243 $15 $475 $2,014 
Other U.S. government agencies(1)
540 964 114 18 1,636 
Commercial and non-U.S. customers
26 16 448 29 519 
Total$1,847 $1,223 $577 $522 $4,169 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Nine Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community$4,106 $763 $22 $1,476 $6,367 
Other U.S. government agencies(1)
1,536 3,028 285 63 4,912 
Commercial and non-U.S. customers83 58 1,396 94 1,631 
Total$5,725 $3,849 $1,703 $1,633 $12,910 
Nine Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community$3,749 $755 $29 $1,341 $5,874 
Other U.S. government agencies(1)
1,585 2,867 268 64 4,784 
Commercial and non-U.S. customers87 48 1,348 86 1,569 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Disaggregated revenues by contract-type were as follows:
Three Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$1,107 $443 $99 $345 $1,994 
Firm-fixed-price555 809 347 201 1,912 
Time-and-materials and fixed-price-level-of-effort
339 44 124 36 543 
Total$2,001 $1,296 $570 $582 $4,449 
Three Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$980 $433 $94 $326 $1,833 
Firm-fixed-price511 737 378 155 1,781 
Time-and-materials and fixed-price-level-of-effort
356 53 105 41 555 
Total$1,847 $1,223 $577 $522 $4,169 
Nine Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee$3,127 $1,344 $284 $978 $5,733 
Firm-fixed-price1,566 2,355 1,051 536 5,508 
Time-and-materials and fixed-price-level-of-effort1,032 150 368 119 1,669 
Total$5,725 $3,849 $1,703 $1,633 $12,910 
Nine Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee$2,874 $1,331 $269 $940 $5,414 
Firm-fixed-price1,497 2,176 1,049 437 5,159 
Time-and-materials and fixed-price-level-of-effort1,050 163 327 114 1,654 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
Disaggregated revenues by geographic location were as follows:
Three Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,987 $1,293 $248 $576 $4,104 
International
14 3 322 6 345 
Total$2,001 $1,296 $570 $582 $4,449 
Three Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,840 $1,222 $257 $511 $3,830 
International
7 1 320 11 339 
Total$1,847 $1,223 $577 $522 $4,169 
Nine Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$5,695 $3,843 $733 $1,607 $11,878 
International
30 6 970 26 1,032 
Total$5,725 $3,849 $1,703 $1,633 $12,910 
Nine Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$5,398 $3,666 $692 $1,458 $11,214 
International
23 4 953 33 1,013 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
Revenues by customer-type, contract-type and geographic location exclude lease income of $20 million and $57 million for the three and nine months ended October 3, 2025, respectively, and $21 million and $70 million for the three and nine months ended September 27, 2024, respectively.
CONTRACT ASSETS AND LIABILITIES
Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.
Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer. Unbilled receivables exclude amounts billable where the right to consideration is solely subject to the passage of time. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized.
The components of contract assets and contract liabilities consisted of the following:
(in millions)Balance sheet line itemOctober 3,
2025		January 3,
2025
Contract assets - current:
Unbilled receivablesReceivables, net$949 $842 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$396 $333 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$6 $10 
(1) Certain contracts record revenue net of cost of revenues, and therefore, the respective deferred revenue balance will not fully convert to revenue.
The increase in unbilled receivables was primarily due to revenue recognized on certain contracts, partially offset by the timing of billings on certain contracts. The increase in deferred revenue was primarily due to the timing of advanced payments from customers, offset by revenue recognized during the period.
For the three and nine months ended October 3, 2025, $21 million and $220 million, respectively, of revenue recognized was included as a contract liability at January 3, 2025. For the three and nine months ended September 27, 2024, $45 million and $256 million, respectively, of revenue recognized was included as a contract liability at December 29, 2023.