v3.22.2.2
Revenues from Contracts with Customers
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues from Contracts with Customers
Note 2–Revenues from Contracts with Customers
Remaining Performance Obligations
Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.
As of September 30, 2022, we had $14.3 billion of RPO and expect to recognize approximately 60% and 77% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.
Disaggregation of Revenues
We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.
Disaggregated revenues by customer-type were as follows:
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
DoD and U.S. Intelligence Community
$1,559 $22 $255 $1,836 $4,620 $62 $732 $5,414 
Other U.S. government agencies(1)
236 676 372 1,284 686 1,949 1,177 3,812 
Commercial and non-U.S. customers
280 151 28 459 869 446 83 1,398 
Total$2,075 $849 $655 $3,579 $6,175 $2,457 $1,992 $10,624 
Three Months Ended October 1, 2021Nine Months Ended October 1, 2021
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
DoD and U.S. Intelligence Community
$1,513 $19 $203 $1,735 $4,386 $45 $545 $4,976 
Other U.S. government agencies(1)
215 619 450 1,284 724 1,849 1,292 3,865 
Commercial and non-U.S. customers
281 121 28 430 859 377 80 1,316 
Total$2,009 $759 $681 $3,449 $5,969 $2,271 $1,917 $10,157 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Disaggregated revenues by contract-type were as follows:
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$1,166 $442 $200 $1,808 $3,493 $1,293 $534 $5,320 
Firm-fixed-price668 279 389 1,336 1,950 792 1,260 4,002 
Time-and-materials and fixed-price-level-of-effort
241 128 66 435 732 372 198 1,302 
Total$2,075 $849 $655 $3,579 $6,175 $2,457 $1,992 $10,624 
Three Months Ended October 1, 2021Nine Months Ended October 1, 2021
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$1,230 $397 $137 $1,764 $3,627 $1,176 $361 $5,164 
Firm-fixed-price540 245 443 1,228 1,619 755 1,254 3,628 
Time-and-materials and fixed-price-level-of-effort
239 117 101 457 723 340 302 1,365 
Total$2,009 $759 $681 $3,449 $5,969 $2,271 $1,917 $10,157 
Disaggregated revenues by geographic location were as follows:
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
United States
$1,830 $810 $655 $3,295 $5,429 $2,340 $1,992 $9,761 
International
245 39 — 284 746 117 — 863 
Total$2,075 $849 $655 $3,579 $6,175 $2,457 $1,992 $10,624 
Three Months Ended October 1, 2021Nine Months Ended October 1, 2021
Defense SolutionsCivilHealthTotalDefense SolutionsCivilHealthTotal
(in millions)
United States
$1,778 $726 $681 $3,185 $5,237 $2,158 $1,917 $9,312 
International
231 33 — 264 732 113 — 845 
Total$2,009 $759 $681 $3,449 $5,969 $2,271 $1,917 $10,157 
Revenues by customer-type, contract-type and geographic location exclude lease income of $29 million and $75 million for the three and nine months ended September 30, 2022, respectively, and $34 million and $89 million for the three and nine months ended October 1, 2021, respectively.
Contract Assets and Liabilities
Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.
Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer, where right to payment is not solely subject to the passage of time. Unbilled receivables exclude amounts billable where the right to consideration is unconditional. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized.
The components of contract assets and contract liabilities consisted of the following:
Balance sheet line itemSeptember 30,
2022		December 31,
2021
(in millions)
Contract assets - current:
Unbilled receivablesReceivables, net$1,028 $1,022 
Contract liabilities - current:
Deferred revenue (1)
Accounts payable and accrued liabilities$450 $364 
Contract liabilities - non-current:
Deferred revenue (1)
Other long-term liabilities$26 $24 
(1) Certain contracts record revenue net of cost of revenues, and therefore, the respective deferred revenue balance will not fully convert to revenue.
The increase in deferred revenue was primarily due to the timing of advanced payments from customers offset by revenue recognized during the period.
Revenue recognized for the three and nine months ended September 30, 2022, of $17 million and $257 million, respectively, was included as a contract liability at December 31, 2021. Revenue recognized for the three and nine months ended October 1, 2021, of $31 million and $253 million, respectively, was included as a contract liability at January 1, 2021.