BUSINESS SEGMENTS (Tables)

12 Months Ended

Jan. 02, 2026

Segment Reporting [Abstract]

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)	2025		2024		2023
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)	2025		2024		2023
Revenue
CS	$	5,673	$	5,459	$	5,070
IMS	6,630		6,618		6,446
SAS	6,946		6,869		6,856
AR	2,845		2,580		1,243
Intersegment	(229)		(201)		(196)
Total revenue	21,865		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 corporate	188		166		201
Total cost of revenue	(16,240)		(15,801)		(14,306)
Operating income
CS	1,432		1,324		1,229
IMS	812		826		443
SAS	852		812		756
AR	270		307		138
Segment operating income	3,366		3,269		2,566
Unallocated corporate items	(1,256)		(1,351)		(1,140)
Total operating income	2,110		1,918		1,426
Non-service FAS pension income and other, net	419		354		338
Interest expense, net	(597)		(675)		(543)
Income before income taxes	$	1,932	$	1,597	$	1,221

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 2025
(In millions)	CS		IMS		SAS		AR
Revenue By Customer Relationship
Prime contractor	$	4,287	$	4,598	$	4,307	$	650
Subcontractor	1,324		1,957		2,575		2,167
Intersegment	62		75		64		28
Total segment	$	5,673	$	6,630	$	6,946	$	2,845
Revenue By Contract Type
Fixed-price	$	4,825	$	5,050	$	4,619	$	1,850
Cost-type	786		1,505		2,263		967
Intersegment	62		75		64		28
Total segment	$	5,673	$	6,630	$	6,946	$	2,845
Revenue By Geographical Region
United States	$	3,609	$	4,852	$	6,045	$	2,545
International(1)	2,002		1,703		837		272
Intersegment	62		75		64		28
Total segment	$	5,673	$	6,630	$	6,946	$	2,845

_______________

(1) Includes revenue where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors. No individual foreign country represents more than 5% of our total revenue.

	Fiscal 2024
(In millions)	CS		IMS		SAS		AR
Revenue By Customer Relationship
Prime contractor	$	3,801	$	4,279	$	4,307	$	664
Subcontractor	1,589		2,286		2,511		1,888
Intersegment	69		53		51		28
Total segment	$	5,459	$	6,618	$	6,869	$	2,580
Revenue By Contract Type
Fixed-price	$	4,566	$	5,199	$	4,293	$	1,568
Cost-type	824		1,366		2,525		984
Intersegment	69		53		51		28
Total segment	$	5,459	$	6,618	$	6,869	$	2,580
Revenue By Geographical Region
United States	$	3,741	$	4,721	$	5,971	$	2,504
International(1)	1,649		1,844		847		48
Intersegment	69		53		51		28
Total segment	$	5,459	$	6,618	$	6,869	$	2,580

_______________

(1) Includes revenue where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors. No individual foreign country represents more than 5% of our total revenue.

	Fiscal 2023
(In millions)	CS		IMS		SAS		AR
Revenue By Customer Relationship
Prime contractor	$	3,420	$	4,152	$	4,252	$	294
Subcontractor	1,597		2,220		2,555		929
Intersegment	53		74		49		20
Total segment	$	5,070	$	6,446	$	6,856	$	1,243
Revenue By Contract Type
Fixed-price	$	4,289	$	4,869	$	4,257	$	783
Cost-type	728		1,503		2,550		440
Intersegment	53		74		49		20
Total segment	$	5,070	$	6,446	$	6,856	$	1,243
Revenue By Geographical Region
United States	$	3,482	$	4,646	$	5,933	$	1,184
International(1)	1,535		1,726		874		39
Intersegment	53		74		49		20
Total segment	$	5,070	$	6,446	$	6,856	$	1,243

_______________

(1) Includes revenue where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors. No individual foreign country represents more than 5% of our total revenue.

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

	Fiscal Year
(In millions)	2025		2024		2023
Capital Expenditures
CS	$	70	$	50	$	39
IMS	74		115		148
SAS	118		140		151
AR	116		52		32
Corporate	46		51		79
Total capital expenditures	$	424	$	408	$	449
Depreciation and Amortization
CS	$	53	$	56	$	54
IMS	70		63		71
SAS	146		130		115
AR	49		50		31
Corporate	906		990		895
Total depreciation and amortization	$	1,224	$	1,289	$	1,166
Geographical Operations
Long-lived assets
United States	$	2,503	$	2,639	$	2,678
International	162		167		184

Schedule of Total Assets by Segment

Total assets by business segment were as follows:

(In millions)	January 2, 2026		January 3, 2025
CS	$	7,131	$	7,060
IMS	9,831		10,389
SAS	8,958		8,705
AR	5,109		4,826
Corporate(1)	10,166		11,021
Total assets	$	41,195	$	42,001

_______________

(1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company. See the “Intangible Assets” section in Note 6: Goodwill and Intangible Assets in these Notes for further information.