v3.24.1.u1
Revenues
 3 Months Ended
Mar. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2–Revenues
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 March 29, 2024, we had $14.3 billion of RPO and expect to recognize approximately 62% and 78% 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 March 29, 2024
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
DoD and U.S. Intelligence Community
$1,221 $257 $10 $425 $1,913 
Other U.S. government agencies(1)
525 917 73 22 1,537 
Commercial and non-U.S. customers
33 16 425 27 501 
Total$1,779 $1,190 $508 $474 $3,951 
Three Months Ended March 31, 2023
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
DoD and U.S. Intelligence Community
$1,154 $272 $8 $390 $1,824 
Other U.S. government agencies(1)
557 713 65 30 1,365 
Commercial and non-U.S. customers
35 14 416 25 490 
Total$1,746 $999 $489 $445 $3,679 
(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 March 29, 2024
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$946 $447 $85 $301 $1,779 
Firm-fixed-price492 690 319 139 1,640 
Time-and-materials and fixed-price-level-of-effort
341 53 104 34 532 
Total$1,779 $1,190 $508 $474 $3,951 
Three Months Ended March 31, 2023
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$927 $553 $92 $272 $1,844 
Firm-fixed-price507 403 289 134 1,333 
Time-and-materials and fixed-price-level-of-effort
312 43 108 39 502 
Total$1,746 $999 $489 $445 $3,679 
Disaggregated revenues by geographic location were as follows:
Three Months Ended March 29, 2024
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$1,770 $1,189 $208 $468 $3,635 
International
9 1 300 6 316 
Total$1,779 $1,190 $508 $474 $3,951 
Three Months Ended March 31, 2023
National Security and Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$1,735 $998 $192 $441 $3,366 
International
11 1 297 4 313 
Total$1,746 $999 $489 $445 $3,679 
Revenues by customer-type, contract-type and geographic location exclude lease income of $24 million and $20 million for the three months ended March 29, 2024, and March 31, 2023, 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. Unbilled receivables exclude amounts billable where the right to consideration is solely subject to the passage of time. 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 itemMarch 29,
2024		December 29,
2023
(in millions)
Contract assets - current:
Unbilled receivablesReceivables, net$1,099 $1,041 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$414 $442 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$18 $21 
(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 unbilled receivables was primarily due to revenue recognized on certain contracts, partially offset by the timing of billings. The decrease in deferred revenue was primarily due to revenue recognized during the period, offset by the timing of advanced payments from customers.
For the three months ended March 29, 2024, $157 million of revenue recognized was included as a contract liability at December 29, 2023. For the three months ended March 31, 2023, $155 million of revenue recognized was included as a contract liability at December 30, 2022.