v3.26.1
BUSINESS SEGMENT INFORMATION (Tables)
 6 Months Ended
Jul. 03, 2026
Segment Reporting [Abstract]  
Schedule of Selected Financial Information by Business Segments
The following table presents operating results by business segment and a reconciliation to total income before income taxes:
 Second QuarterYear to Date
(In millions)2026202520262025
 
Revenue
Space & Mission Systems$2,966 $2,770 $5,956 $5,181 
Communications & Spectrum Dominance1,943 1,861 3,798 3,670 
Missile Solutions1,054 925 2,044 1,765 
Intersegment(82)(130)(173)(204)
Segment revenue5,881 5,426 11,625 10,412 
Other(1)
— — — 146 
Total revenue5,881 5,426 11,625 10,558 
Cost of revenue
Space & Mission Systems(2,442)(2,287)(4,881)(4,235)
Communications & Spectrum Dominance(1,177)(1,185)(2,340)(2,342)
Missile Solutions(827)(722)(1,634)(1,378)
Intersegment82 130 173 204 
Segment cost of revenue(4,364)(4,064)(8,682)(7,751)
Other(2)
(15)(27)(39)(122)
Total cost of revenue(4,379)(4,091)(8,721)(7,873)
Other segment items(3)
Space & Mission Systems(234)(194)(472)(419)
Communications & Spectrum Dominance(244)(218)(471)(427)
Missile Solutions(97)(87)(156)(175)
Total other segment items(575)(499)(1,099)(1,021)
Other(2)
15 27 39 (24)
Total other items(560)(472)(1,060)(1,045)
Operating income
Space & Mission Systems290 289 603 527 
Communications & Spectrum Dominance522 458 987 901 
Missile Solutions130 116 254 212 
Segment operating income942 863 1,844 1,640 
Unallocated corporate items and other, net(288)
(292)(538)
(544)
Total operating income654 571 1,306 1,096 
Non-service FAS pension income and other, net185 105 258 189 
Interest expense, net(129)(152)(265)(302)
Income before income taxes$710 $524 $1,299 $983 
______________
(1)Includes other non-reportable businesses, which consists of the CAS disposal group.
(2)Includes corporate headquarters. Additionally, year to date 2025 includes other non-reportable businesses, which consists of the CAS disposal group.
(3)Other segment items include company-funded R&D costs, selling and marketing costs, $39 million of gains and losses, net of impairments, on investments associated with companies developing dual-use technologies that accelerate our capabilities, improve go-to-market efforts and are operationally aligned with our business segments in second quarter and year to date 2026, and other G&A expenses, which includes a portion of capital expenditure and depreciation and amortization costs that are disaggregated by segment under the “Disaggregation of Revenue” heading below in this Note.
Schedule of Disaggregation of Revenue by Segment
Assets
Total assets by business segment were as follows:
(In millions)July 3, 2026January 2, 2026
Space & Mission Systems$14,485 $13,736 
Communications & Spectrum Dominance10,972 10,862 
Missile Solutions7,245 6,605 
Corporate(1)
10,236 9,992 
Total assets$42,938 $41,195 
_______________
(1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company. See the “Intangible Assets” section in Note F: Goodwill and Intangible Assets in these Notes for further information.
Other Financial Information
Other financial information by business segment is summarized below:
Second QuarterYear to Date
(In millions)2026202520262025
Capital expenditures
Space & Mission Systems$33 $28 $62 $63 
Communications & Spectrum Dominance17 20 35 28 
Missile Solutions38 23 71 37 
Corporate20 17 39 19 
Total capital expenditures$108 $88 $207 $147 
Depreciation and amortization
Space & Mission Systems$42 $40 $84 $80 
Communications & Spectrum Dominance21 18 39 35 
Missile Solutions15 18 29 34 
Corporate210 227 418 455 
Total depreciation and amortization$288 $303 $570 $604 
We disaggregate revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Second Quarter
20262025
(In millions)SMSCSDMSLSMSCSDMSL
Revenue by customer relationship
Prime contractor$2,177 $1,300 $245 $2,021 $1,204 $245 
Subcontractor767 595 797 721 563 672 
Intersegment22 48 12 28 94 8 
Total segment$2,966 $1,943 $1,054 $2,770 $1,861 $925 
Revenue by contract type
Fixed-price
$2,138 $1,585 $704 $1,957 $1,518 $576 
Cost-type806 310 338 785 249 341 
Intersegment22 48 12 28 94 8 
Total segment$2,966 $1,943 $1,054 $2,770 $1,861 $925 
Revenue by geographical region
United States$2,505 $1,076 $922 $2,380 $1,113 $809 
International439 819 120 362 654 108 
Intersegment22 48 12 28 94 8 
Total segment$2,966 $1,943 $1,054 $2,770 $1,861 $925 
Year to Date
20262025
(In millions)SMSCSDMSLSMSCSDMSL
Other(1)
Revenue by customer relationship
Prime contractor$4,463 $2,492 $495 $3,746 $2,377 $467 $72 
Subcontractor1,448 1,201 1,526 1,381 1,170 1,272 73 
Intersegment45 105 23 54 123 26 1 
Total segment$5,956 $3,798 $2,044 $5,181 $3,670 $1,765 $146 
Revenue by contract type
Fixed-price
$4,048 $3,105 $1,347 $3,615 $3,011 $1,081 $145 
Cost-type1,863 588 674 1,512 536 658 — 
Intersegment45 105 23 54 123 26 1 
Total segment$5,956 $3,798 $2,044 $5,181 $3,670 $1,765 $146 
Revenue by geographical region
United States$5,045 $2,113 $1,796 $4,408 $2,204 $1,604 $61 
International866 1,580 225 719 1,343 135 84 
Intersegment45 105 23 54 123 26 1 
Total segment$5,956 $3,798 $2,044 $5,181 $3,670 $1,765 $146 
_______________
(1)Includes revenue associated with other non-reportable businesses, which consists of the CAS disposal group. These amounts are included to reconcile total revenue.