BUSINESS SEGMENTS (Tables)

12 Months Ended

Jan. 03, 2025

Schedule of Selected Financial Information by Business Segments

The

difference between CAS pension cost and the service cost component of net periodic benefit income (“FAS pension

service cost”) is reflected in the “FAS/CAS operating adjustment,” which is included as a component of Unallocated

corporate department expense line item in Note 14: Business Segments in these Notes.


	Fiscal Year Ended
(In millions)	January 3, 2025	December 29, 2023	December 30, 2022

FAS pension service cost	$(36)	$(35)	$(46)
Less: CAS pension cost	(64)	(145)	(141)
FAS/CAS operating adjustment	28	110	95

The following tables present revenue, expenses and operating income by segment:


	Fiscal Year Ended January 3, 2025
(In millions)	SAS	IMS	CS	AR	Other(1)	Total

Revenue	$6,869	$6,842	$5,459	$2,347	$(192)	$21,325
Cost of Revenue	(5,430)	(5,237)	(3,490)	(1,802)	158	(15,801)
Other Segment Costs(2)	(627)	(767)	(645)	(251)	34	(2,256)
Unallocated corporate department expense						(1,350)
Operating income	$812	$838	$1,324	$294	$—	$1,918
Non-service FAS pension income and other, net						354
Interest expense, net						(675)
Income before income taxes						$1,597


	Fiscal Year Ended December 29, 2023
(In millions)	SAS	IMS	CS	AR	Other(1)	Total

Revenue	$6,856	$6,630	$5,070	$1,052	$(189)	$19,419
Cost of Revenue	(5,380)	(5,086)	(3,217)	(817)	194	(14,306)
Other Segment Costs(2)	(720)	(1,085)	(624)	(113)	(5)	(2,547)
Unallocated corporate department expense						(1,140)
Operating income	$756	$459	$1,229	$122	$—	$1,426
Non-service FAS pension income and other, net						338
Interest expense, net						(543)
Income before income taxes						$1,221


	Fiscal Year Ended December 30, 2022
(In millions)	SAS	IMS	CS	AR	Other(1)	Total

Revenue	$6,384	$6,626	$4,217	**	$(165)	$17,062
Cost of revenue	(4,810)	(4,893)	(2,598)	**	166	(12,135)
Other Segment Costs(2)	(909)	(1,239)	(952)	**	(1)	(3,101)
Unallocated corporate department expense						(699)
Operating income	$665	$494	$667	**	$—	$1,127
Non-service FAS pension income and other, net						425
Interest expense, net						(279)
Income before income taxes						$1,273

_______________

** Our AR segment was established in the quarter ended September 29, 2023 in connection with the AJRD acquisition. As such, there is no fiscal

2022 information.

(1) Includes corporate headquarters and intersegment eliminations

(2) Other segment costs include Impairment of goodwill and other assets, company-funded R&D costs, selling and marketing costs, and other

G&A expenses, which includes a portion of capital expenditure and depreciation and amortization costs that are disaggregated by segment

under the “Disaggregation of Revenue” heading below in this Note.

Other selected financial information by business segment and geographical area is summarized below:


	Fiscal Year Ended
(In millions)	January 3, 2025	December 29, 2023	December 30, 2022

Capital Expenditures
SAS	$140	$151	$133
IMS	118	149	45
CS	50	39	36
AR	49	31	**
Corporate	51	79	38
Total capital expenditures	$408	$449	$252

Depreciation and Amortization
SAS	$130	$115	$112
IMS	65	73	76
CS	56	54	47
AR	48	29	**
Corporate	990	895	703
Total depreciation and amortization	$1,289	$1,166	$938

Geographical Information for Operations
Long-lived assets of U.S. operations	$2,639	$2,678	$1,896
Long-lived assets of international operations	167	184	208

_______________

**Our AR segment was established in the quarter ended September 29, 2023 in connection with the AJRD acquisition. As such, there is no

fiscal 2022 information.

Schedule of Disaggregation of Revenue by Segment

We disaggregate revenue for all four business segments 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.


	Fiscal Year Ended
	January 3, 2025
(In millions)	SAS	IMS	CS	AR

Revenue By Customer Relationship
Prime contractor	$4,307	$4,341	$3,801	$602
Subcontractor(1)	2,511	2,429	1,589	1,745
Intersegment	51	72	69	—
Total segment	$6,869	$6,842	$5,459	$2,347

Revenue By Contract Type
Fixed-price(2)	$4,293	$5,378	$4,566	$1,389
Cost-reimbursable	2,525	1,392	824	958
Intersegment	51	72	69	—
Total segment	$6,869	$6,842	$5,459	$2,347

Revenue By Geographical Region
United States	$5,971	$4,926	$3,741	$2,299
International	847	1,844	1,649	48
Intersegment	51	72	69	—
Total segment	$6,869	$6,842	$5,459	$2,347

_______________

(1)Our subcontractor revenues includes products and services to contractors whose customers are the end user.

(2)Includes revenue derived from time-and-materials contracts.


	Fiscal Year Ended
	December 29, 2023
(In millions)	SAS	IMS	CS	AR

Revenue By Customer Relationship
Prime contractor	$4,252	$4,196	$3,420	$250
Subcontractor(1)	2,555	2,347	1,597	802
Intersegment	49	87	53	—
Total segment	$6,856	$6,630	$5,070	$1,052

Revenue By Contract Type
Fixed-price(2)	$4,257	$5,020	$4,289	$632
Cost-reimbursable	2,550	1,523	728	420
Intersegment	49	87	53	—
Total segment	$6,856	$6,630	$5,070	$1,052

Revenue By Geographical Region
United States	$5,933	$4,816	$3,482	$1,015
International	874	1,727	1,535	37
Intersegment	49	87	53	—
Total segment	$6,856	$6,630	$5,070	$1,052

_______________

(1)Our subcontractor revenues includes products and services to contractors whose customers are the end user.

(2)Includes revenue derived from time-and-materials contracts.


	Fiscal Year Ended
	December 30, 2022
(In millions)	SAS	IMS	CS	AR

Revenue By Customer Relationship
Prime contractor	$4,005	$4,301	$2,829	**
Subcontractor(1)	2,330	2,254	1,343	**
Intersegment	49	71	45	**
Total segment	$6,384	$6,626	$4,217	$—

Revenue By Contract Type
Fixed-price(2)	$3,811	$5,060	$3,552	**
Cost-reimbursable	2,524	1,495	620	**
Intersegment	49	71	45	**
Total segment	$6,384	$6,626	$4,217	$—

Revenue By Geographical Region
United States	$5,623	$4,796	$2,735	**
International	712	1,759	1,437	**
Intersegment	49	71	45	**
Total segment	$6,384	$6,626	$4,217	$—

_______________

**Our AR segment was established in the quarter ended September 29, 2023 in connection with the AJRD acquisition. As such, there is no

fiscal 2022 information.

(1)Our subcontractor revenues includes products and services to contractors whose customers are the end user.

(2)Includes revenue derived from time-and-materials contracts.


	Fiscal Year Ended
(In millions)	January 3, 2025	December 29, 2023	December 30, 2022

Geographical Information for Operations
Revenue from U.S. operations	$19,614	$17,537	$15,373
Revenue from international operations	1,711	1,882	1,689

Schedule of Total Assets by Segment

Total assets by business segment are as follows:


(In millions)	January 3, 2025	December 29, 2023

Total Assets
SAS	$8,705	$9,085
IMS	10,749	10,631
CS	7,060	7,084
AR	4,466	4,208
Corporate(1)	11,021	10,679
Total Assets	$42,001	$41,687

_______________

(1)Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefit

the entire Company. Intangible asset balances recorded as corporate assets were $7,639 million and $8,540 million at January 3, 2025 and

December 29, 2023, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred

compensation plan assets, buildings and equipment, real estate held for development and leasing, investments, as well as any assets of

businesses held for sale.