v3.26.1
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Change in Estimate at Completion Adjustments
Net EAC adjustments had the following impacts for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions, except per share amounts)
2026202520262025
Revenue and operating earnings
$21 $— $25 $(9)
Total % of revenue2%—%1%(1%)
Net earnings$17 $— $20 $(7)
Impact on diluted earnings per share$0.06 $— $0.07 $(0.03)
Schedule of Contract Assets and Contract Liabilities Contract assets and contract liabilities as of the dates presented were:
(Dollars in millions)June 30, 2026December 31, 2025
Contract assets$1,002 $931 
Contract liabilities598 585 
Schedule of Disaggregation of Revenue We disaggregate ASC revenue by geographical region, customer relationship and contract
type. We believe these categories best depict how the nature, amount, timing and uncertainty of ASC revenue and cash flows are affected by economic factors.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2026202520262025
Revenue by Geographical Region
United States$487 $465 $958 $911 
International94 74 175 136 
Intersegment sales6 3 13 6 
Total $587 $542 $1,146 $1,053 
Revenue by Customer Relationship
Prime contractor$244 $238 $505 $462 
Subcontractor337 301 628 585 
Intersegment sales6 3 13 6 
Total $587 $542 $1,146 $1,053 
Revenue by Contract Type
Fixed-price
$518 $468 $1,009 $905 
Flexibly priced(1)
63 71 124 142 
Intersegment sales6 3 13 6 
Total $587 $542 $1,146 $1,053 
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(1)Includes revenue derived from cost-plus and time-and-materials contracts.
We believe these categories best depict how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2026202520262025
Revenue by Geographical Region
United States$317 $296 $594 $590 
International15 (6)32 (9)
Intersegment sales1 — 2 — 
Total $333 $290 $628 $581 
Revenue by Customer Relationship
Prime contractor$54 $54 $116 $100 
Subcontractor278 236 510 481 
Intersegment sales1 — 2 — 
Total $333 $290 $628 $581 
Revenue by Contract Type
Fixed-price
$262 $242 $504 $496 
Flexibly priced(1)
70 48 122 85 
Intersegment sales1 — 2 — 
Total $333 $290 $628 $581 
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(1)Includes revenue derived from cost-plus and time-and-materials contracts.