Contract Balances

12 Months Ended

Oct. 03, 2025

Revenue from Contract with Customer [Abstract]

Contract Balances

Revenues

Disaggregation of Revenues

The Company disaggregates revenues by customer, contract type, prime contractor versus subcontractor, geographic location and whether the solution provided is primarily Digital Solutions or Global Engineering Solutions. These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.

Disaggregated revenues by customer-type were as follows:

	For the years ended
	October 3, 2025						September 27, 2024						September 29, 2023
(Amounts in millions)	DS		GES		Total		DS		GES		Total		DS		GES		Total
Department of War and U.S. Intelligence Community	$	3,222	$	4,456	$	7,678	$	1,509	$	4,094	$	5,603	$	1,474	$	3,791	$	5,265
Other U.S. Government Agencies	1,607		2,387		3,994		386		1,598		1,984		341		1,526		1,867
Commercial and International	714		2,007		2,721		86		715		801		84		649		733
Total revenues	$	5,543	$	8,850	$	14,393	$	1,981	$	6,407	$	8,388	$	1,899	$	5,966	$	7,865

Disaggregated revenues by contract-type were as follows:

	For the years ended
	October 3, 2025						September 27, 2024						September 29, 2023
(Amounts in millions)	DS		GES		Total		DS		GES		Total		DS		GES		Total
Cost-plus-fee	$	3,557	$	5,426	$	8,983	$	964	$	4,234	$	5,198	$	875	$	4,066	$	4,941
Fixed-price	1,422		2,067		3,489		650		1,576		2,226		667		1,422		2,089
Time-and-materials	564		1,357		1,921		367		597		964		357		478		835
Total revenues	$	5,543	$	8,850	$	14,393	$	1,981	$	6,407	$	8,388	$	1,899	$	5,966	$	7,865

Disaggregated revenues by prime contractor versus subcontractor were as follows:

	For the years ended
	October 3, 2025						September 27, 2024						September 29, 2023
(Amounts in millions)	DS		GES		Total		DS		GES		Total		DS		GES		Total
Prime contractor	$	5,069	$	8,027	$	13,096	$	1,772	$	5,738	$	7,510	$	1,722	$	5,236	$	6,958
Subcontractor	474		823		1,297		209		669		878		177		730		907
Total revenues	$	5,543	$	8,850	$	14,393	$	1,981	$	6,407	$	8,388	$	1,899	$	5,966	$	7,865

Revenues by geographic location are reported by the country in which the work is performed and were as follows:

	For the years ended
	October 3, 2025						September 27, 2024						September 29, 2023
(Amounts in millions)	DS		GES		Total		DS		GES		Total		DS		GES		Total
United States	$	5,304	$	5,442	$	10,746	$	1,679	$	4,376	$	6,055	$	1,544	$	4,204	$	5,748
International	239		3,408		3,647		302		2,031		2,333		355		1,762		2,117
Total revenues	$	5,543	$	8,850	$	14,393	$	1,981	$	6,407	$	8,388	$	1,899	$	5,966	$	7,865

Changes in Estimates on Contracts

Changes in estimated contract earnings at completion using the cumulative catch-up method of accounting were recognized in revenues as follows:

	For the years ended
(Amounts in millions)	October 3, 2025		September 27, 2024		September 29, 2023
Favorable earnings at completion adjustments	$	126	$	83	$	88
Unfavorable earnings at completion adjustments	(67)		(38)		(46)
Net favorable adjustments	$	59	$	45	$	42
Impact on diluted earnings (loss) per share attributable to common shareholders (1)	$	0.19	$	0.40	$	0.37

(1)    The impact on diluted earnings (loss) per share attributable to common shareholders is calculated using our statutory rate.

Remaining Performance Obligations

The Company’s remaining performance obligations balance represents the expected revenues to be recognized for the satisfaction of remaining performance obligations on existing contracts. This balance excludes unexercised contract option years and task orders that may be issued as part of an indefinite delivery, indefinite quantity contract. The remaining performance obligations balance as of October 3, 2025 and September 27, 2024 was $9.9 billion and $12.9 billion, respectively.

As of October 3, 2025, the Company expects to recognize approximately 77% and 90% of the remaining performance obligations balance as revenues over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.

Contract Balances

The Company's contract balances consisted of the following (in millions):

		As of
Description of Contract Related Balance	Classification	October 3, 2025		September 27, 2024
Billed and billable receivables	Accounts receivable, net	$	1,514	$	1,378
Contract assets	Accounts receivable, net	902		986
Related party receivables	Accounts receivable, net	63		37
Long-term contract assets	Other long-term assets	90		138
Related party contract liabilities - deferred revenues and other contract liabilities	Contract liabilities	(15)		—
Contract liabilities - deferred revenues and other contract liabilities	Contract liabilities	(212)		(113)

Contract assets primarily relate to accruals for reimbursable costs and fees in which our right to consideration is conditional. Long-term contract assets relate to a prior acquisition.

The Company recognized revenues of $95 million and $98 million during the years ended October 3, 2025 and September 27, 2024, respectively, that was included in Contract liabilities as of September 27, 2024 and September 29, 2023, respectively.