Related Party Transactions

12 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Although we operate largely independently from Leonardo S.p.A. and the proxy agreement contains limitations on services that we may provide to and receive from Leonardo S.p.A. and its affiliates, we have historically provided, and expect to continue to provide, certain services to Leonardo S.p.A. and its affiliates to support its U.S. operations (aside from us). These services include financial, tax, trade compliance, marketing and communications and legal.

The Company also has related party sales and purchases with the indirect majority stockholder and its other affiliates that occur in the regular course of business. Related party sales are included in revenues and were $30 million, $40 million and $59 million for the years ended December 31, 2024, 2023 and 2022, respectively. Related party purchases are included in cost of revenues and were $7 million, $4 million and $3 million for the years ended December 31, 2024, 2023 and 2022, respectively. The receivables with the indirect majority stockholder and its other affiliates of $19 million and $8 million, respectively, and payables of $4 million and $4 million, respectively, as of December 31, 2024 and 2023, are included in accounts receivable, net and accounts payable in our Consolidated Balance Sheets. In addition, there was a related party balance in contract assets of $12 million at December 31, 2024.

The Company entered into a Tax Allocation Agreement with US Holding, dated as of November 16, 2020. See Note 1: Summary of Significant Accounting Policies for more information.