v3.26.1
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Change in Estimate at Completion Adjustments
Net EAC adjustments had the following impacts for the periods presented:
Three Months Ended March 31,
(Dollars in millions, except per share amounts)
20262025
Revenue and operating earnings
$4 $(9)
Total % of revenue—%1%
Net earnings$3 $(7)
Impact on diluted earnings per share$0.01 $(0.03)
Schedule of Contract Assets and Contract Liabilities Contract assets and contract liabilities as of the dates presented were:
(Dollars in millions)March 31, 2026December 31, 2025
Contract assets$975 $931 
Contract liabilities640 585 
Schedule of Disaggregation of Revenue We disaggregate ASC revenue by geographical region, customer relationship and contract
type. We believe these categories best depict how the nature, amount, timing and uncertainty of ASC revenue and cash flows are affected by economic factors.
Three Months Ended March 31,
(Dollars in millions)20262025
Revenue by Geographical Region
United States$471 $446 
International81 62 
Intersegment sales7 3 
Total $559 $511 
Revenue by Customer Relationship
Prime contractor$261 $224 
Subcontractor291 284 
Intersegment sales7 3 
Total $559 $511 
Revenue by Contract Type
Fixed-price
$491 $437 
Flexibly priced(1)
61 71 
Intersegment sales7 3 
Total $559 $511 
________________
(1)Includes revenue derived from cost-plus and time-and-materials contracts.
We believe these categories best depict how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors.
Three Months Ended March 31,
(Dollars in millions)20262025
Revenue by Geographical Region
United States$277 $294 
International17 (3)
Intersegment sales1 — 
Total $295 $291 
Revenue by Customer Relationship
Prime contractor$62 $46 
Subcontractor232 245 
Intersegment sales1 — 
Total $295 $291 
Revenue by Contract Type
Fixed-price
$242 $254 
Flexibly priced(1)
52 37 
Intersegment sales1 — 
Total $295 $291 
________________
(1)Includes revenue derived from cost-plus and time-and-materials contracts.