BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 28, 2025

Schedule of Selected Financial Information by Business Segments

Segment revenue, segment operating income and a reconciliation of segment operating income to total income before income taxes were as follows:


	First Quarter
(Dollars in millions)	2025		2024

Revenue
CS	$	1,352	$	1,294
IMS	1,592		1,627
SAS	1,611		1,751
AR	629		584
Other (1)	(52)		(45)
Total revenue	5,132		5,211
Cost of revenue
CS	$	(856)	$	(837)
IMS	(1,204)		(1,248)
SAS	(1,281)		(1,366)
AR	(489)		(443)
Other (1)	48		31
Total cost of revenue	(3,782)		(3,863)
Other segment costs (2)
CS	$	(151)	$	(147)
IMS	(185)		(194)
SAS	(154)		(169)
AR	(64)		(64)
Other (1)	4		14
Total other segment costs (2)	(550)		(560)
Operating income
CS	$	345	$	310
IMS	203		185
SAS	176		216
AR	76		77
Unallocated corporate expenses	(275)		(410)
Total operating income	525		378
Non-service FAS pension income and other, net	84		88
Interest expense, net	(150)		(176)
Income before income taxes	$	459	$	290

_____________

(1) Includes corporate headquarters and intersegment eliminations.

(2) Other segment costs consist of company-funded R&D costs, selling and marketing costs and other General and Administrative (“G&A”) expenses, which include a portion of depreciation and amortization expenses that are disclosed by segment under the “Disaggregation of Revenue” heading below in this Note.

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.


	First Quarter
	2025								2024
(In millions)	CS		IMS		SAS		AR		CS		IMS		SAS		AR

Revenue By Customer Relationship
Prime contractor	$	995	$	1,049	$	1,008	$	139	$	913	$	1,056	$	1,108	$	163
Subcontractor(1)	345		530		586		480		367		560		628		416
Intersegment	12		13		17		10		14		11		15		5
Total segment	$	1,352	$	1,592	$	1,611	$	629	$	1,294	$	1,627	$	1,751	$	584

Revenue By Contract Type
Fixed-price(2)	$	1,161	$	1,255	$	994	$	392	$	1,065	$	1,245	$	1,108	$	335
Cost-reimbursable	179		324		600		227		215		371		628		244
Intersegment	12		13		17		10		14		11		15		5
Total segment	$	1,352	$	1,592	$	1,611	$	629	$	1,294	$	1,627	$	1,751	$	584

Revenue By Geographical Region
United States	$	844	$	1,147	$	1,376	$	609	$	925	$	1,166	$	1,507	$	564
International	496		432		218		10		355		450		229		15
Intersegment	12		13		17		10		14		11		15		5
Total segment	$	1,352	$	1,592	$	1,611	$	629	$	1,294	$	1,627	$	1,751	$	584

_______________

(1) Includes products and services to contractors whose customers are the end user.

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

Other selected financial information by business segment is summarized below:


	First Quarter
(In millions)	2025		2024

Capital Expenditures
CS	$	7	$	6
IMS	20		40
SAS	19		53
AR	11		5
Corporate	2		11
Total capital expenditures	$	59	$	115

Depreciation and Amortization
CS	$	13	$	14
IMS	15		16
SAS	33		30
AR	12		9
Corporate	228		251
Total depreciation and amortization	$	301	$	320

Schedule of Total Assets by Segment

Total assets by business segment were as follows:


(In millions)	March 28, 2025		January 3, 2025


CS	$	7,124	$	7,060
IMS	9,615		10,389
SAS	9,145		8,705
AR	4,773		4,826
Corporate(1)	10,591		11,021
Total Assets	$	41,248	$	42,001

_______________

(1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company of $7,448 million and $7,639 million as of March 28, 2025 and January 3, 2025, respectively. Corporate assets also include cash, income taxes receivable, deferred income taxes, deferred compensation plan assets, buildings and equipment and real estate held for development and leasing.