v3.26.1
Discontinued Operations
 3 Months Ended
Apr. 03, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
HomeSafe, a joint venture with Tier One Relocation, informed us on June 18, 2025, that U.S. Transportation Command unexpectedly terminated HomeSafe's role in the Global Household Goods Contract. KBR owns a 72% interest in HomeSafe. The HomeSafe joint venture is a VIE that is consolidated for financial reporting purposes. As of April 3, 2026, all of HomeSafe's operations, including run-off operations, have ceased. We disposed of HomeSafe during the year ended January 2, 2026 and determined that this disposal met the requirements to be reported as discontinued operations under ASC Subtopic 205-20 Discontinued Operations. We classified the disposal of HomeSafe as discontinued operations because it represents a strategic shift that significantly impacted our long-term operations plan. As such, the results of HomeSafe are presented as discontinued operations in the accompanying condensed consolidated statements of operations, condensed consolidated balance sheets and condensed consolidated statements of cash flows for all periods presented. HomeSafe was previously reported within our MTS business segment.
Financial Information of Discontinued Operations

The key components of net loss attributable to KBR from discontinued operations for the three months ended April 3, 2026 and April 4, 2025 were as follows:
Three months ended
Dollars in millionsApril 3, 2026April 4, 2025
Revenues$— $37 
Cost of revenues(1)(39)
Gross loss(1)(2)
Selling, general and administrative expenses(1)(5)
Operating loss(2)(7)
Loss from discontinued operations before income taxes(2)(7)
Provision for income taxes— 1 
Net loss from discontinued operations, net of tax(2)(6)
Less: Net loss attributable to noncontrolling interests included in discontinued operations(1)(2)
Net loss attributable to KBR from discontinued operations$(1)$(4)

The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's condensed consolidated balance sheets as of April 3, 2026 and January 2, 2026:
Dollars in millionsApril 3, 2026January 2, 2026
Assets
Cash and cash equivalents$4 $5 
Accounts receivable, net of allowance for credit losses— 1 
Other current assets12 13 
Total current assets of discontinued operations$16 $19 
Liabilities
Accounts payable$6 $8 
Contract liabilities2 2 
Accrued salaries, wages and benefits— 1 
Other current liabilities10 8 
Total current liabilities of discontinued operations$18 $19 
Spin-off
Mission Technology Solutions Spin-off
In September 2025, we announced our intention to spin off our Mission Technology Solutions business (the "Planned Spin-Off") into a separate, U.S. publicly-traded company. The Planned Spin-Off is intended to be tax-free to us and our shareholders for U.S. federal income tax purposes and targeting completion on January 4, 2027, which is the first business day of fiscal 2027. The spin-off will be subject to final approval by our Board of Directors and other customary conditions, including receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S. Internal Revenue Service with respect to the tax treatment of the transaction for U.S. federal income tax purposes, the effectiveness of a registration statement on Form 10 filed with the SEC, satisfactory completion of financing and other regulatory approvals. Because the intended transaction is a spin-off, the Mission Technology Solutions business is not classified as held for sale and will be reported as continuing operations.