v3.26.3
Revenue from Contracts with Customers (Tables)
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
(Dollars in millions, except per share amounts)
2026202520262025
Revenue and operating earnings
$8 $5 $33 $(4)
Total % of revenue1%1%1%—%
Net earnings$7 $4 $27 $(3)
Impact on diluted earnings per share$0.03 $0.01 $0.10 $(0.01)
Schedule of Contract Assets and Contract Liabilities Contract assets and contract liabilities as of the dates presented were:
(Dollars in millions)September 30, 2026December 31, 2025
Contract assets$1,083 $931 
Contract liabilities594 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 September 30,Nine Months Ended September 30,
(Dollars in millions)2026202520262025
Revenue by Geographical Region
United States$558 $500 $1,516 $1,411 
International81 77 256 213 
Intersegment sales20 3 33 9 
Total $659 $580 $1,805 $1,633 
Revenue by Customer Relationship
Prime contractor$302 $298 $807 $760 
Subcontractor337 279 965 864 
Intersegment sales20 3 33 9 
Total $659 $580 $1,805 $1,633 
Revenue by Contract Type
Fixed-price
$563 $509 $1,572 $1,414 
Flexibly priced(1)
76 68 200 210 
Intersegment sales20 3 33 9 
Total $659 $580 $1,805 $1,633 
________________
(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 September 30,Nine Months Ended September 30,
(Dollars in millions)2026202520262025
Revenue by Geographical Region
United States$411 $366 $1,005 $956 
International16 17 48 8 
Intersegment sales1 — 3 — 
Total $428 $383 $1,056 $964 
Revenue by Customer Relationship
Prime contractor$107 $136 $223 $236 
Subcontractor320 247 830 728 
Intersegment sales1 — 3 — 
Total $428 $383 $1,056 $964 
Revenue by Contract Type
Fixed-price
$343 $359 $847 $855 
Flexibly priced(1)
84 24 206 109 
Intersegment sales1 — 3 — 
Total $428 $383 $1,056 $964 
________________
(1)Includes revenue derived from cost-plus and time-and-materials contracts.