Revenue Recognition from Contracts with Customers

6 Months Ended

Jun. 27, 2026

Revenue from Contract with Customer [Abstract]

Revenue Recognition from Contracts with Customers

Revenue Recognition from Contracts with Customers

The following table presents a disaggregation of revenue by end market:

	Three Months Ended				Six Months Ended
	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025
Commercial Original Equipment	$	679	$	640	$	1,336	$	1,272
Commercial Aftermarket	2,026		1,881		3,997		3,738
Defense and Space	1,817		1,768		3,541		3,353
Net sales	$	4,522	$	4,289	$	8,874	$	8,363

The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company's revenue based on timing of recognition is as follows:

	Three Months Ended				Six Months Ended
	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025
Products, transferred point in time	49	%	47	%	48	%	48	%
Products, transferred over time	9		10		8		8
Net product sales	58		57		56		56
Services, transferred point in time	2		2		3		3
Services, transferred over time	40		41		41		41
Net service sales	42		43		44		44
Net sales	100	%	100	%	100	%	100	%

Contract Assets and Liabilities

Contract assets reflect the recognition of revenue from the satisfaction of performance obligations in advance of customer billings. Contract liabilities are recorded when customers are billed in accordance with the contract prior to the recognition of revenue. Contract balances are classified as assets or liabilities on a contract-by-contract basis and are recorded in the Condensed Combined Balance Sheets within Current contract assets, Other assets, Current contract liabilities, and Contract liabilities.

The following table summarizes the Company’s contract assets and liabilities balances:

	2026
Contract assets - January 1	$	1,373
Contract assets - June 27	1,418
Change in Contract assets - increase	45
Contract liabilities - January 1	(2,680)
Contract liabilities - June 27	(2,702)
Change in Contract liabilities - (increase)	(22)
Net change	$	23
	2025
Contract assets - January 1	$	1,219
Contract assets - June 28	1,251
Change in Contract assets - increase	32
Contract liabilities - January 1	(2,401)
Contract liabilities - June 28	(2,331)
Change in Contract liabilities - decrease	70
Net change	$	102

For three and six months ended June 27, 2026, the Company recognized revenue of $236 million and $669 million, respectively, that was previously included in the beginning balance of contract liabilities. For three and six months ended June 28, 2025, the Company recognized revenue of $210 million and $611 million, respectively, that was previously included in the beginning balance of contract liabilities.

Remaining Performance Obligations

As of June 27, 2026, the Company’s remaining performance obligations, which is the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied, was approximately $18.2 billion. Remaining performance obligations exclude transaction price associated with revenue which is recognized on a right to invoice basis for certain long-term contracts. Performance obligations expected to be satisfied within one year and greater than one year are 58% and 42%, respectively.