BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Apr. 03, 2026

Segment Reporting [Abstract]

Schedule of Selected Financial Information by Business Segments

The following table presents operating results by business segment and a reconciliation to total income before income taxes:

	First Quarter
(In millions)	2026		2025
Revenue
SMS	$	2,990	$	2,411
CSD	1,855		1,809
MSL	990		840
Intersegment	(91)		(74)
Segment revenue	5,744		4,986
Other(1)	—		146
Total revenue	5,744		5,132
Cost of revenue
SMS	(2,439)		(1,948)
CSD	(1,163)		(1,157)
MSL	(807)		(656)
Intersegment	91		74
Segment cost of revenue	(4,318)		(3,687)
Other(2)	(24)		(95)
Total cost of revenue	(4,342)		(3,782)
Operating income
SMS	313		238
CSD	465		443
MSL	124		96
Segment operating income	902		777
Unallocated corporate items and other, net	(250)		(252)
Total operating income	652		525
Non-service FAS pension income and other, net	73		84
Interest expense, net	(136)		(150)
Income before income taxes	$	589	$	459

_______________

(1)Includes other non-reportable businesses, which consists of the CAS disposal group, corporate headquarters, and eliminations.

(2)Includes corporate headquarters. Additionally, first quarter 2025 includes other non-reportable businesses, which consists of the CAS disposal group.

Schedule of Disaggregation of Revenue by Segment

Assets

Total assets by business segment were as follows:

(In millions)	April 3, 2026		January 2, 2026
SMS	$	14,264	$	13,736
CSD	10,932		10,862
MSL	6,748		6,605
Corporate(1)	9,436		9,992
Total assets	$	41,380	$	41,195

_______________

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

Other Financial Information

Other financial information by business segment is summarized below:

	First Quarter
(In millions)	2026		2025
Capital expenditures
SMS	$	29	$	35
CSD	18		8
MSL	33		14
Corporate	19		2
Total capital expenditures	$	99	$	59
Depreciation and amortization
SMS	$	42	$	40
CSD	18		17
MSL	14		16
Corporate	208		228
Total depreciation and amortization	$	282	$	301

We disaggregate revenue 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
	2026						2025
(In millions)	SMS		CSD		MSL		SMS		CSD		MSL		Other(1)
Revenue by customer relationship
Prime contractor	$	2,286	$	1,192	$	250	$	1,725	$	1,173	$	222	$	72
Subcontractor	681		606		729		660		607		600		73
Intersegment	23		57		11		26		29		18		1
Total segment	$	2,990	$	1,855	$	990	$	2,411	$	1,809	$	840	$	146
Revenue by contract type
Fixed-price	$	1,910	$	1,520	$	643	$	1,658	$	1,493	$	505	$	145
Cost-type	1,057		278		336		727		287		317		—
Intersegment	23		57		11		26		29		18		1
Total segment	$	2,990	$	1,855	$	990	$	2,411	$	1,809	$	840	$	146
Revenue by geographical region
United States	$	2,540	$	1,037	$	874	$	2,028	$	1,091	$	795	$	61
International	427		761		105		357		689		27		84
Intersegment	23		57		11		26		29		18		1
Total segment	$	2,990	$	1,855	$	990	$	2,411	$	1,809	$	840	$	146

_______________

(1)Includes revenue associated with other non-reportable businesses, which consists of the CAS disposal group. These amounts are included to reconcile total revenue.