v3.26.1
Revenue
 3 Months Ended
Apr. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue

We disaggregate our revenue from customers by customer type, geographic destination and contract type for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue by customer type was as follows:
Three months ended
April 3, 2026April 4, 2025
Dollars in millionsMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$816 $— $816 $906 $— $906 
U.S. Government Federal Civilian Clients262 — 262 281 — 281 
International Government Clients192 46 238 167 52 219 
Commercial and Infrastructure Clients26 581 607 27 585 612 
Total revenue$1,296 $627 $1,923 $1,381 $637 $2,018 

Revenue by geographic destination was as follows:
Three months ended
Dollars in millionsApril 3, 2026April 4, 2025
Total by Countries/RegionsMTSSTSTotalMTSSTSTotal
United States$950 $82 $1,032 $976 $133 $1,109 
Europe215 151 366 293 164 457 
Middle East31 192 223 26 152 178 
Australia63 86 149 50 82 132 
Africa19 38 57 18 33 51 
Asia4 35 39 3 41 44 
Other countries14 43 57 15 32 47 
Total revenue$1,296 $627 $1,923 $1,381 $637 $2,018 

Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:    
Three months ended April 3, 2026Three months ended April 4, 2025
Dollars in millionsMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$771 $7 $778 $891 $— $891 
Time-and-Materials200 363 563 207 384 591 
Fixed Price325 257 582 283 253 536 
Total revenue$1,296 $627 $1,923 $1,381 $637 $2,018 

Performance Obligations and Contract Liabilities

Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations satisfied in previous periods for such matters of $12 million for the three months ended April 3, 2026.

On April 3, 2026, we had $13.6 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 41% in years two through five and 23% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of
April 3, 2026.

We recognized revenue of $171 million and $151 million for the three months ended April 3, 2026 and April 4, 2025, respectively, which was previously included in the contract liability balance at the beginning of each period.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. During the three months ended April 3, 2026 and April 4, 2025 we recognized a favorable change in operating income of $52 million and $21 million, respectively, as a result of changes in estimates on an LNG project.

Accounts Receivable    
Dollars in millionsApril 3, 2026January 2, 2026
Unbilled$559 $520 
Trade & other480 566 
Accounts receivable, net$1,039 $1,086