CONTRACT ASSETS AND LIABILITIES

6 Months Ended

Jun. 29, 2025

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES

Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows (in millions):

	June 29, 2025		December 31, 2024
Contract assets	$	14,896	$	12,957
Contract liabilities	9,861		9,795

Contract assets are primarily driven by the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for which we have not yet billed our customers. During the six months ended June 29, 2025, contract assets increased $1.9 billion primarily due to the F-35 program at Aeronautics. There were no significant credit or impairment losses related to our contract assets during the quarters and six months ended June 29, 2025 and June 30, 2024.

Contract liabilities increased $66 million during the six months ended June 29, 2025, primarily due to payments received in excess of revenue recognized on performance obligations. During the quarter and six months ended June 29, 2025, we recognized $1.3 billion and $4.5 billion of our contract liabilities at December 31, 2024 as revenue. During the quarter and six months ended June 30, 2024, we recognized $1.7 billion and $4.1 billion of our contract liabilities at December 31, 2023 as revenue.