v3.26.3
Revenue Recognition from Contracts with Customers
 9 Months Ended
Sep. 26, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition from Contracts with Customers Revenue Recognition from Contracts with Customers
The following table presents a disaggregation of revenue by end market:
Three Months Ended Nine Months Ended
September 26, 2026September 27, 2025September 26, 2026September 27, 2025
Commercial Original Equipment$690 $642 $2,026 $1,914 
Commercial Aftermarket
2,126 2,084 6,123 5,822 
Defense and Space1,828 1,807 5,369 5,160 
Net sales
$4,644 $4,533 $13,518 $12,896 
The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company's revenue based on timing of recognition is as follows:
Three Months Ended Nine Months Ended
September 26, 2026September 27, 2025September 26, 2026September 27, 2025
Products, transferred point in time
48 %48 %48 %48 %
Products, transferred over time
10 8 9 8 
Net product sales
58 56 57 56 
Services, transferred point in time
2 4 2 3 
Services, transferred over time
40 40 41 41 
Net service sales
42 44 43 44 
Net sales
100 %100 %100 %100 %
Contract Assets and Liabilities
Contract assets reflect the recognition of revenue from the satisfaction of performance obligations in advance of customer billings. Contract liabilities are recorded when customers are billed in accordance with the contract prior to the recognition of revenue. Contract balances are classified as assets or liabilities on a contract-by-contract basis and are recorded in the Condensed Consolidated Balance Sheets within Current contract assets, Other assets, Current contract liabilities, and Contract liabilities.
The following table summarizes the Company’s contract assets and liabilities balances:
2026
Contract assets - January 1$1,373 
Contract assets - September 261,467 
Change in Contract assets - increase94 
Contract liabilities - January 1
(2,680)
Contract liabilities - September 26(2,687)
Change in Contract liabilities - (increase)(7)
Net change
$87 
2025
Contract assets - January 1$1,219 
Contract assets - September 271,301 
Change in Contract assets - increase82 
Contract liabilities - January 1
(2,401)
Contract liabilities - September 27
(2,414)
Change in Contract liabilities - (increase)(13)
Net change
$69 
For the three and nine months ended September 26, 2026, the Company recognized revenue of $158 million and $827 million, respectively, that was previously included in the beginning balance of Contract liabilities. For the three and nine months ended September 27, 2025, the Company recognized revenue of $167 million and $778 million, respectively, that was previously included in the beginning balance of Contract liabilities.
Remaining Performance Obligations
As of September 26, 2026, the Company’s remaining performance obligations, which is the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied, was approximately $19.3 billion. Remaining performance obligations exclude transaction price associated with revenue which is recognized on a right to invoice basis for certain long-term contracts. Performance obligations expected to be satisfied within one year and greater than one year are 59% and 41%, respectively.