Commitments and Contingencies	6 Months Ended
Jul. 04, 2026
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations. MV-75 Program Funding As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended April 4, 2026, on April 28, 2026, Bell received a letter from the U.S. Army Contracting Command (the Contracting Command) stating that the U.S. Government is pursuing an Above Threshold Reprogramming (ATR) request for $350 million in additional funds for the MV-75 program for the U.S. Government’s fiscal year ending September 30, 2026. The letter advised that, if Bell continues working after currently available funds are exhausted or if the additional funding is not approved, Bell could be required to stop work, and the U.S. Army will have no authority to pay for such work. On May 8, 2026, Bell received a letter from the Contracting Command stating that the U.S. Government does not plan to issue a Stop-Work Order. The letter reiterated that the U.S. Government is pursuing the ATR request for additional funding, which is subject to Congressional approval and is not guaranteed. It advised that, if Bell exhausts the currently allotted funds before an ATR is approved and obligated pursuant to a contract modification, Bell should stop work in accordance with Federal Acquisition Regulations. The letter stated that the U.S. Government is not obligated to reimburse Bell for any costs incurred beyond the current obligated funding allotted in the contract and that any performance beyond the allotted funds is at Bell’s own risk. Accordingly, to mitigate the impact of the funding limitation, Bell initiated various spending reduction actions during the second quarter, some of which continued into the third quarter, including headcount reductions, furloughs and reduced supplier spending. We have appropriately included all costs and assumptions within our program contract estimates for the second quarter of 2026. Subsequent to the end of our second quarter, in mid-July 2026, Bell exhausted substantially all currently available fiscal 2026 MV-75 program funds and, since then, has continued working on the MV-75 program at its own risk. Therefore, if the ATR is not approved and obligated pursuant to a contract modification, Bell will continue to incur costs in excess of fiscal 2026 program funding for which it may not be reimbursed by the U.S. Government. In such event, we would recognize an unfavorable cumulative catch-up program adjustment of up to approximately $120 million, assuming $350 million in costs incurred in excess of available funding which would also negatively impact our cash flows by approximately $350 million. We believe that MV-75 program costs incurred subsequent to September 30, 2026 will be funded as the Department of War’s current Future Years Defense Program, which projects forces, resources and programs to support the Department of War, indicates a total funding level for the MV-75 program of $2.3 billion for the U.S. Government’s fiscal year 2027 which begins October 1, 2026. Low-Rate Initial Production Option As the MV-75 program continues to progress, we expect that we will be awarded the long-lead Low-Rate Initial Production (LRIP) phase of the contract in late 2026 or early 2027. Upon award of the LRIP option, which is largely fixed price, we expect to record an unfavorable cumulative catch-up program adjustment, reflecting higher costs than originally anticipated from when the program was bid, in the range of $60 million to $110 million. We expect the overall MV-75 program to continue to generate a positive profit margin after the adjustment.

We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended April 4, 2026, on April 28, 2026, Bell received a letter from the U.S. Army Contracting Command (the Contracting Command) stating that the U.S. Government is pursuing an Above Threshold Reprogramming (ATR) request for $350 million in additional funds for the MV-75 program for the U.S. Government’s fiscal year ending September 30, 2026. The letter advised that, if Bell continues working after currently available funds are exhausted or if the additional funding is not approved, Bell could be required to stop work, and the U.S. Army will have no authority to pay for such work.

On May 8, 2026, Bell received a letter from the Contracting Command stating that the U.S. Government does not plan to issue a Stop-Work Order. The letter reiterated that the U.S. Government is pursuing the ATR request for additional funding, which is subject to Congressional approval and is not guaranteed. It advised that, if Bell exhausts the currently allotted funds before an ATR is approved and obligated pursuant to a contract modification, Bell should stop work in accordance with Federal Acquisition

Regulations. The letter stated that the U.S. Government is not obligated to reimburse Bell for any costs incurred beyond the current obligated funding allotted in the contract and that any performance beyond the allotted funds is at Bell’s own risk. Accordingly, to mitigate the impact of the funding limitation, Bell initiated various spending reduction actions during the second quarter, some of which continued into the third quarter, including headcount reductions, furloughs and reduced supplier spending. We have appropriately included all costs and assumptions within our program contract estimates for the second quarter of 2026.

Subsequent to the end of our second quarter, in mid-July 2026, Bell exhausted substantially all currently available fiscal 2026 MV-75 program funds and, since then, has continued working on the MV-75 program at its own risk. Therefore, if the ATR is not approved and obligated pursuant to a contract modification, Bell will continue to incur costs in excess of fiscal 2026 program funding for which it may not be reimbursed by the U.S. Government. In such event, we would recognize an unfavorable cumulative catch-up program adjustment of up to approximately $120 million, assuming $350 million in costs incurred in excess of available funding which would also negatively impact our cash flows by approximately $350 million.

We believe that MV-75 program costs incurred subsequent to September 30, 2026 will be funded as the Department of War’s current Future Years Defense Program, which projects forces, resources and programs to support the Department of War, indicates a total funding level for the MV-75 program of $2.3 billion for the U.S. Government’s fiscal year 2027 which begins October 1, 2026.

As the MV-75 program continues to progress, we expect that we will be awarded the long-lead Low-Rate Initial Production (LRIP) phase of the contract in late 2026 or early 2027. Upon award of the LRIP option, which is largely fixed price, we expect to record an unfavorable cumulative catch-up program adjustment, reflecting higher costs than originally anticipated from when the program was bid, in the range of $60 million to $110 million. We expect the overall MV-75 program to continue to generate a positive profit margin after the adjustment.