v3.26.3
BUSINESS SEGMENT INFORMATION (Tables)
 9 Months Ended
Oct. 02, 2026
Segment Reporting [Abstract]  
Schedule of Revenues and Income From Continuing Operations by Segment
The following table presents results by business segment:
Third QuarterYear to Date
(In millions)2026202520262025
Revenue
Space & Mission Systems$3,093 $2,803 $9,049 $7,984 
Communications & Spectrum Dominance1,995 1,935 5,793 5,605 
Missile Solutions1,057 1,008 3,101 2,773 
Intersegment(80)(88)(253)(292)
Segment revenue6,065 5,658 17,690 16,070 
Other(1)
(5)1 (5)147 
Total revenue6,060 5,659 17,685 16,217 
Cost of revenue
Space & Mission Systems(2,486)(2,248)(7,367)(6,483)
Communications & Spectrum Dominance(1,214)(1,218)(3,554)(3,560)
Missile Solutions(832)(786)(2,466)(2,164)
Intersegment80 88 253 292 
Segment cost of revenue(4,452)(4,164)(13,134)(11,915)
Company-funded R&D costs(2)
Space & Mission Systems(51)(51)(155)(144)
Communications & Spectrum Dominance(71)(61)(209)(167)
Missile Solutions(21)(26)(85)(69)
Segment company-funded R&D costs(143)(138)(449)(380)
Other segment items(3)
Space & Mission Systems(218)(205)(586)(531)
Communications & Spectrum Dominance(208)(179)(541)(500)
Missile Solutions(77)(72)(169)(204)
Total other segment items(503)(456)(1,296)(1,235)
Operating income
Space & Mission Systems338 299 941 826 
Communications & Spectrum Dominance502 477 1,489 1,378 
Missile Solutions127 124 381 336 
Segment operating income$967 $900 $2,811 $2,540 
______________
(1)Includes corporate headquarters. Additionally, year to date 2025 includes other non-reportable businesses, which consists of the CAS disposal group.
(2)Included as a component of the “General and administrative expenses” line item in our Condensed Consolidated Statement of Operations.
(3)Includes selling and marketing costs and other General and Administrative (“G&A”) expenses, which includes depreciation and amortization costs that are disaggregated by segment under the “Disaggregation of Revenue” heading below in this Note, and investment gains recognized on segment aligned investments. See Note P: Investments for further information.
The following table presents a reconciliation of segment operating income to consolidated Income before income taxes:
Third QuarterYear to Date
(In millions)2026202520262025
Segment operating income$967 $900 $2,811 $2,540 
Unallocated corporate items and other, net(181)(279)(719)(823)
Operating income786 621 2,092 1,717 
Non-service FAS pension income74 73 224 236 
Other non-operating (expense) income, net(1)25 107 51 
Interest expense, net(116)
(152)(381)
(454)
Income before income taxes$743 
$567 
$2,042 
$1,550 
Schedule of Disaggregation of Revenue by Segment
Total assets by business segment were as follows:
(In millions)October 2, 2026January 2, 2026
Space & Mission Systems$14,233 $13,736 
Communications & Spectrum Dominance11,063 10,862 
Missile Solutions6,015 6,605 
Corporate
12,495 9,992 
Total assets$43,806 $41,195 
Other financial information by business segment is summarized below:
Third QuarterYear to Date
(In millions)2026202520262025
Capital expenditures
Space & Mission Systems$39 $34 $101 $97 
Communications & Spectrum Dominance23 25 58 53 
Missile Solutions101 40 172 77 
Corporate16 20 55 39 
Total capital expenditures$179 $119 $386 $266 
Depreciation and amortization
Space & Mission Systems$44 $50 $128 $130 
Communications & Spectrum Dominance19 19 58 54 
Missile Solutions15 16 44 50 
Corporate189 224 607 679 
Total depreciation and amortization$267 $309 $837 $913 
We disaggregate revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Third Quarter
20262025
(In millions)SMSCSDMSLSMSCSDMSL
Revenue by customer relationship
Prime contractor$2,324 $1,293 $277 $2,027 $1,335 $274 
Subcontractor742 662 767 752 549 722 
Intersegment27 40 13 24 51 12 
Total segment$3,093 $1,995 $1,057 $2,803 $1,935 $1,008 
Revenue by contract type
Fixed-price
$2,030 $1,648 $711 $1,898 $1,585 $634 
Cost-type1,036 307 333 881 299 362 
Intersegment27 40 13 24 51 12 
Total segment$3,093 $1,995 $1,057 $2,803 $1,935 $1,008 
Revenue by geographical region
United States$2,554 $1,125 $932 $2,415 $1,154 $859 
International512 830 112 364 730 137 
Intersegment27 40 13 24 51 12 
Total segment$3,093 $1,995 $1,057 $2,803 $1,935 $1,008 
Year to Date
20262025
(In millions)SMSCSDMSLSMSCSDMSL
Other(1)
Revenue by customer relationship
Prime contractor$6,787 $3,785 $772 $5,773 $3,712 $741 $72 
Subcontractor2,190 1,863 2,293 2,133 1,719 1,994 73 
Intersegment72 145 36 78 174 38 1 
Total segment$9,049 $5,793 $3,101 $7,984 $5,605 $2,773 $146 
Revenue by contract type
Fixed-price
$6,078 $4,753 $2,058 $5,513 $4,596 $1,715 $145 
Cost-type2,899 895 1,007 2,393 835 1,020 — 
Intersegment72 145 36 78 174 38 1 
Total segment$9,049 $5,793 $3,101 $7,984 $5,605 $2,773 $146 
Revenue by geographical region
United States$7,599 $3,238 $2,728 $6,823 $3,358 $2,463 $61 
International1,378 2,410 337 1,083 2,073 272 84 
Intersegment72 145 36 78 174 38 1 
Total segment$9,049 $5,793 $3,101 $7,984 $5,605 $2,773 $146 
_______________
(1)Includes revenue associated with other non-reportable businesses, which consists of the CAS disposal group. These amounts are included to reconcile total revenue.