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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Jan. 02, 2026
Accounting Policies [Abstract]  
Schedule of Net Estimated at Completion ("EAC") Adjustments
Net EAC adjustments had the following impact to earnings for the periods presented:
Fiscal Year
(In millions, except per share amounts)202520242023
Revenue$212 $210 $118 
Operating income47 39 (85)
Net income(1)
35 29 (63)
Diluted EPS0.19 0.15 (0.33)
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(1)Based on a 25 percent federal and state statutory tax rate.
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 the

“Unallocated corporate items” item in Note 14: Business Segments in these Notes.
Fiscal Year
(In millions)202520242023
FAS pension service cost$(26)$(36)$(35)
Less: CAS pension cost(36)(64)(145)
FAS/CAS operating adjustment$10 $28 $110 
The following table presents operating results by business segment and a reconciliation to total income before income taxes:
Fiscal Year
(In millions)202520242023
Revenue
CS$5,673 $5,459 $5,070 
IMS6,630 6,618 6,446 
SAS6,946 6,869 6,856 
AR2,845 2,580 1,243 
Intersegment(229)(201)(196)
Total revenue21,865 21,325 19,419 
Cost of revenue
CS(3,570)(3,490)(3,217)
IMS(5,188)(5,039)(4,933)
SAS(5,463)(5,430)(5,380)
AR(2,207)(2,008)(977)
Intersegment and corporate188 166 201 
Total cost of revenue(16,240)(15,801)(14,306)
Operating income
CS1,432 1,324 1,229 
IMS812 826 443 
SAS852 812 756 
AR270 307 138 
Segment operating income3,366 3,269 2,566 
Unallocated corporate items(1,256)(1,351)(1,140)
Total operating income2,110 1,918 1,426 
Non-service FAS pension income and other, net419 354 338 
Interest expense, net(597)(675)(543)
Income before income taxes$1,932 $1,597 $1,221