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CONTRACT ASSETS AND LIABILITIES
 6 Months Ended
Jun. 28, 2026
Revenue from Contract with Customer [Abstract]  
CONTRACT ASSETS AND LIABILITIES CONTRACT ASSETS AND LIABILITIES
Contract assets and contract liabilities were as follows (in millions):
June 28,
2026		December 31,
2025
Contract assets $16,038 $13,001 
Contract liabilities12,151 11,440 

Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. These assets are primarily driven by the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for which we have not yet billed our customers. During the six months ended June 28, 2026, contract assets increased $3.0 billion primarily due to the F-35 program at Aeronautics and tactical and strike missiles at MFC. There were no significant credit or impairment losses related to our contract assets during the quarters and six months ended June 28, 2026 and June 29, 2025.
Contract liabilities include advance payments and billings in excess of revenue recognized. These liabilities increased $711 million during the six months ended June 28, 2026, primarily due to payment received in excess of revenue recognized on performance obligations (primarily for the F-16 program at Aeronautics). During the quarter and six months ended June 28, 2026, we recognized $1.8 billion and $4.8 billion of our contract liabilities at December 31, 2025 as revenue. During the quarter and six months ended June 29, 2025, we recognized $1.3 billion and $4.5 billion of our contract liabilities at December 31, 2024 as revenue.