v3.26.1
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)20262025
 
Revenue
SMS$2,990 $2,411 
CSD1,855 1,809 
MSL990 840 
Intersegment(91)(74)
Segment revenue5,744 4,986 
Other(1)
— 146 
Total revenue5,744 5,132 
Cost of revenue
SMS(2,439)(1,948)
CSD(1,163)(1,157)
MSL(807)(656)
Intersegment91 
74 
Segment cost of revenue(4,318)(3,687)
Other(2)
(24)(95)
Total cost of revenue(4,342)(3,782)
Operating income
SMS313 238 
CSD465 443 
MSL124 96 
Segment operating income902 777 
Unallocated corporate items and other, net(250)
(252)
Total operating income652 525 
Non-service FAS pension income and other, net73 
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, 2026January 2, 2026
SMS$14,264 $13,736 
CSD10,932 10,862 
MSL6,748 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)20262025
Capital expenditures
SMS$29 $35 
CSD18 8 
MSL33 14 
Corporate19 2 
Total capital expenditures$99 $59 
Depreciation and amortization
SMS$42 $40 
CSD18 17 
MSL14 16 
Corporate208 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
20262025
(In millions)SMSCSDMSLSMSCSDMSL
Other(1)
Revenue by customer relationship
Prime contractor$2,286 $1,192 $250 $1,725 $1,173 $222 $72 
Subcontractor681 606 729 660 607 600 73 
Intersegment23 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-type1,057 278 336 727 287 317 — 
Intersegment23 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 
International427 761 105 357 689 27 84 
Intersegment23 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.