v3.25.3
Business Segments
 9 Months Ended
Oct. 03, 2025
Segment Reporting [Abstract]  
Business Segments
Note 10–Business Segments
Our operations and reportable segments are organized around the customers and markets we serve. We define our reportable segments based on the way the chief operating decision maker ("CODM"), currently our Chief Executive Officer, manages operations for the purposes of allocating resources and assessing performance. The CODM considers segment revenue and operating income to assist with the evaluation of strategic business decisions, including potential acquisitions or divestitures, whether to invest in certain products or services, share repurchases and the declaration of dividends.
The following table summarizes business segment information for the periods presented:
Three Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$2,015 $1,301 $571 $582 $4,469 
Less:
Direct labor510 236 109 113 968 
Amortization of intangible assets8 6 7 13 34 
Other segment expense1,306 731 417 419 2,873 
Segment operating income$191 $328 $38 $37 $594 
Corporate expense59 
Total operating income$535 
Three Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$1,865 $1,225 $578 $522 $4,190 
Less:
Direct labor
483 232 103 103 921 
Amortization of intangible assets6 8 7 16 37 
Other segment expense1,189 698 427 366 2,680 
Segment operating income
$187 $287 $41 $37 $552 
Corporate expense
36 
Total operating income$516 
Nine Months Ended October 3, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$5,765 $3,864 $1,705 $1,633 $12,967 
Less:
Direct labor1,503 715 317 330 2,865 
Amortization of intangible assets20 18 21 37 96 
Other segment expense3,678 2,193 1,252 1,154 8,277 
Segment operating income$564 $938 $115 $112 $1,729 
Corporate expense93 
Total operating income$1,636 
Nine Months Ended September 27, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$5,471 $3,687 $1,648 $1,491 $12,297 
Less:
Direct labor
1,454 711 306 307 2,778 
Amortization of intangible assets17 21 22 50 110 
Other segment expense3,455 2,139 1,256 1,042 7,892 
Segment operating income$545 $816 $64 $92 $1,517 
Corporate expense
111 
Total operating income$1,406 
The statement of operations performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other (expense) income, net" and "Income tax expense" as reported in the condensed consolidated statements of operations are not allocated to our segments.
Other segment expenses include direct program costs such as material and subcontractor expenses, as well as allocable indirect costs such as depreciation and Corporate compensation expenses, but excludes direct labor which is separately presented above. The Health & Civil and Defense Systems segments also include equity earnings of non-consolidated subsidiaries within operating income.
Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in indirect cost pools, which are then collectively allocated to the reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. As such, depreciation expense is not separately disclosed on the condensed consolidated statements of operations.
Asset information by segment is not a key measure of performance used by the CODM.