Revenues, expenses, and operating earnings by segment and the reconciliation to earnings before taxes for the periods ended September 30, 2026 and 2025 consist of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Revenues | | | | | | | | | ASC | $ | 659 | | | $ | 580 | | | $ | 1,805 | | | $ | 1,633 | | | IMS | 428 | | | 383 | | | 1,056 | | | 964 | | | Corporate & Eliminations | (21) | | | (3) | | | (36) | | | (9) | | | Total revenues | $ | 1,066 | | | $ | 960 | | | $ | 2,825 | | | $ | 2,588 | | | | | | | | | | | Cost of revenues | | | | | | | | | ASC | $ | 500 | | | $ | 437 | | | $ | 1,357 | | | $ | 1,237 | | | IMS | 324 | | | 304 | | | 792 | | | 760 | | | Corporate & Eliminations | (21) | | | (3) | | | (36) | | | (9) | | | Total cost of revenues | $ | 803 | | | $ | 738 | | | $ | 2,113 | | | $ | 1,988 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | General and administrative | | | | | | | | | ASC | $ | 70 | | | $ | 63 | | | $ | 206 | | | $ | 196 | | | IMS | 30 | | | 24 | | | 86 | | | 71 | | | Corporate & Eliminations | 5 | | | — | | | 5 | | | — | | | Total general and administrative | $ | 105 | | | $ | 87 | | | $ | 297 | | | $ | 267 | | | | | | | | | | | Company-funded independent research and development | | | | | | | | | ASC | $ | 27 | | | $ | 29 | | | $ | 80 | | | $ | 76 | | | IMS | 10 | | | 7 | | | 24 | | | 18 | | | Corporate & Eliminations | — | | | — | | | — | | | — | | | Total company-funded independent research and development | $ | 37 | | | $ | 36 | | | $ | 104 | | | $ | 94 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortization of acquired intangible assets | | | | | | | | | ASC | $ | 5 | | | $ | 5 | | | $ | 16 | | | $ | 16 | | | IMS | — | | | — | | | — | | | — | | | Corporate & Eliminations | — | | | — | | | — | | | — | | | Total amortization of acquired intangible assets | $ | 5 | | | $ | 5 | | | $ | 16 | | | $ | 16 | | | | | | | | | | | Other segment items | | | | | | | | | ASC | $ | — | | | $ | 1 | | | $ | — | | | $ | 1 | | | IMS | — | | | — | | | — | | | — | | | Corporate & Eliminations | — | | | — | | | — | | | — | | Total other segment items(1) | $ | — | | | $ | 1 | | | $ | — | | | $ | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Operating earnings | | | | | | | | | ASC | $ | 57 | | | $ | 45 | | | $ | 146 | | | $ | 107 | | | IMS | 64 | | | 48 | | | 154 | | | 115 | | | Corporate & Eliminations | (5) | | | — | | | (5) | | | — | | | Total operating earnings | $ | 116 | | | $ | 93 | | | $ | 295 | | | $ | 222 | | | Interest income (expense), net | 1 | | | (4) | | | 3 | | | (7) | | | Other, net | (1) | | | (2) | | | (5) | | | (3) | | | Earnings before taxes | $ | 116 | | | $ | 87 | | | $ | 293 | | | $ | 212 | |
________________(1)Includes ASC restructuring costs for the periods presented. Total intersegment revenues by segment for the periods ended September 30, 2026 and 2025 consist of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | ASC | $ | 20 | | | $ | 3 | | | $ | 33 | | | $ | 9 | | | IMS | 1 | | | — | | | 3 | | | — | | | Total intersegment revenues | $ | 21 | | | $ | 3 | | | $ | 36 | | | $ | 9 | |
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