Business Segments

9 Months Ended

Oct. 02, 2020

Segment Reporting [Abstract]

Business Segments

Note 14–Business Segments

Our operations and reportable segments are organized around the customers and markets we serve. We define our reportable segments based on the way the chief operating decision maker ("CODM"), currently our Chairman and Chief Executive Officer, manages operations for the purposes of allocating resources and assessing performance.

Effective the beginning of fiscal 2020, certain contracts were reassigned from the Civil reportable segment to the Defense Solutions reportable segment to better align operations within the reportable segments to the customers they serve. Prior year segment results have been recast to reflect this change.

The results of Dynetics and the SD&A Businesses were included within the Defense Solutions and Civil reportable segments, respectively.

The segment information for the periods presented was as follows:

	Three Months Ended				Nine Months Ended
	October 2, 2020		September 27, 2019		October 2, 2020		September 27, 2019
	(in millions)
Revenues:
Defense Solutions	$	1,951	$	1,594	$	5,413	$	4,645
Civil	771		733		2,183		2,023
Health	520		508		1,449		1,472
Total revenues	$	3,242	$	2,835	$	9,045	$	8,140
Operating income (loss):
Defense Solutions	$	145	$	107	$	359	$	324
Civil	54		43		191		157
Health	75		63		149		169
Corporate	(16)		36		—		1
Total operating income	$	258	$	249	$	699	$	651

The income statement performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other (expense) income, net" and "Income tax expense" as reported in the condensed consolidated financial statements are not allocated to our segments. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in indirect cost pools, which are then collectively allocated to the reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. As such, depreciation expense is not separately disclosed on the condensed consolidated statements of income.

Asset information by segment is not a key measure of performance used by the CODM.