CONTRACT ASSETS AND LIABILITIES

12 Months Ended

Jan. 02, 2026

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND LIABILITIES

NOTE 3: CONTRACT ASSETS AND LIABILITIES

Contract assets and liabilities are summarized below:

(In millions)	January 2, 2026		January 3, 2025
Contract assets	$	3,566	$	3,230
Contract liabilities, current	(2,262)		(2,142)
Contract liabilities, non-current(1)	(108)		(91)
Net contract assets	$	1,196	$	997

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(1)Included as a component of the “Other non-current liabilities” line item in our Consolidated Balance Sheet.

Contract assets and liabilities as of January 2, 2026 and January 3, 2025 were primarily impacted by the timing of contractual billing milestones. In fiscal 2025, 2024 and 2023, we recognized revenue of $1,683 million, $1,433 million and $1,247 million, respectively, related to contract liabilities that were outstanding at the end of the respective prior fiscal year.