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CONTRACT ASSETS AND LIABILITIES
 9 Months Ended
Sep. 27, 2026
Revenue from Contract with Customer [Abstract]  
CONTRACT ASSETS AND LIABILITIES
NOTE 5 - CONTRACT ASSETS AND LIABILITIES
Contract assets and contract liabilities were as follows (in millions):
September 27,
2026		December 31,
2025
Contract assets $16,899 $13,001 
Contract liabilities12,644 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 nine months ended September 27, 2026, contract assets increased $3.9 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 nine months ended September 27, 2026 and September 28, 2025.
Contract liabilities include advance payments and billings in excess of revenue recognized. These liabilities increased $1.2 billion during the nine months ended September 27, 2026, primarily due to payment received in excess of revenue recognized on performance obligations (primarily for the F-16 program at Aeronautics and Sikorsky programs at RMS). During the quarter and nine months ended September 27, 2026, we recognized $1.0 billion and $5.8 billion of our contract liabilities at December 31, 2025 as revenue.