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Revenues
 6 Months Ended
Aug. 02, 2024
Revenue from Contract with Customer [Abstract]  
Revenues
Note 3—Revenues:
Changes in Estimates on Contracts
Changes in estimates of revenues, cost of revenues or profits related to performance obligations satisfied over time are recognized in operating income in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can occur routinely over the performance period for a variety of reasons, which include: changes in scope; changes in cost estimates due to unanticipated cost growth or reassessments of risks impacting costs; changes in the estimated transaction price, such as variable amounts for incentive or award fees; and performance being better or worse than previously estimated.
A significant portion of the Company's contracts recognize revenue on performance obligations using a cost input measure (cost-to-cost), which requires estimates of total costs at completion. In cases when total expected costs exceed total estimated revenues for a performance obligation, the Company recognizes the total estimated loss in the quarter identified. Total estimated losses are inclusive of any unexercised options that are probable of award, only if they increase the amount of the loss.
Aggregate net changes in estimates on contracts accounted for using the cost-to-cost method of accounting were recognized in operating income as follows:
Three Months EndedSix Months Ended
August 2,
2024		August 4,
2023		August 2,
2024		August 4,
2023
(in millions, except per share amounts)
Net (unfavorable) favorable adjustments
$(1)$(1)$— $4 
Net (unfavorable) favorable adjustments, after tax
(1)(1)— 3 
Diluted EPS impact$(0.02)$(0.02)$— $0.06 
Revenues were $1 million higher for the six months ended August 2, 2024 and $1 million lower and $4 million higher for the three and six months ended August 4, 2023, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.
Disaggregation of Revenues
The Company's revenues are generated primarily from long-term contracts with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company disaggregates revenues by customer, contract type and prime versus subcontractor to the federal government for each of its reportable segments.
Disaggregated revenues by customer were as follows:
Three Months Ended
August 2, 2024
August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Department of Defense$950 $— $950 $917 $2 $919 
Intelligence and other federal government agencies
455 369 824 469 359 828 
Commercial, state and local governments and international
10 34 44 3 34 37 
Total$1,415 $403 $1,818 $1,389 $395 $1,784 
Six Months Ended
August 2, 2024
August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Department of Defense$1,924 $2 $1,926 $1,986 $4 $1,990 
Intelligence and other federal government agencies
913 745 1,658 993 755 1,748 
Commercial, state and local governments and international
14 67 81 7 67 74 
Total$2,851 $814 $3,665 $2,986 $826 $3,812 
Disaggregated revenues by contract type were as follows:
Three Months Ended
August 2, 2024
August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Cost reimbursement$1,085 $20 $1,105 $1,092 $13 $1,105 
Time and materials ("T&M")
162 264 426 115 243 358 
Firm-fixed price ("FFP")
168 119 287 182 139 321 
Total$1,415 $403 $1,818 $1,389 $395 $1,784 
Six Months Ended
August 2, 2024
August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Cost reimbursement$2,219 $41 $2,260 $2,183 $34 $2,217 
Time and materials ("T&M")
311 532 843 229 496 725 
Firm-fixed price ("FFP")
321 241 562 574 296 870 
Total$2,851 $814 $3,665 $2,986 $826 $3,812 
Disaggregated revenues by prime versus subcontractor were as follows:
Three Months Ended
August 2, 2024August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Prime contractor to federal government$1,283 $335 $1,618 $1,261 $330 $1,591 
Subcontractor to federal government122 34 156 125 31 156 
Other10 34 44 3 34 37 
Total$1,415 $403 $1,818 $1,389 $395 $1,784 
Six Months Ended
August 2, 2024
August 4, 2023
Defense and Intelligence
Civilian
Total
Defense and Intelligence
Civilian
Total
(in millions)
Prime contractor to federal government$2,592 $677 $3,269 $2,750 $696 $3,446 
Subcontractor to federal government245 70 315 229 63 292 
Other14 67 81 7 67 74 
Total$2,851 $814 $3,665 $2,986 $826 $3,812 
Contract Balances
Contract balances for the periods presented were as follows:
Balance Sheet line itemAugust 2,
2024		February 2,
2024
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$574 $555 
Contract assets - unbillable receivablesReceivables, net372 359 
Contract assets - contract retentionsOther assets15 14 
Contract liabilities - current
Other accrued liabilities
23 53 
Contract liabilities - non-currentOther long-term liabilities$1 $2 
(1)    Net of allowance of $3 million as of August 2, 2024 and February 2, 2024.
During the three and six months ended August 2, 2024, the Company recognized revenues of $10 million and $30 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of February 2, 2024. During the three and six months ended August 4, 2023, the Company recognized revenues of $12 million and $33 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of February 3, 2023.
Remaining Performance Obligations
Remaining performance obligations ("RPO") represent the transaction price of exercised contracts (both funded and unfunded) less inception to date revenue recognized. RPO does not include unexercised option periods and future task orders expected to be awarded under IDIQ contracts. As of August 2, 2024, the Company had approximately $5.4 billion of RPO. The Company expects to recognize revenue on approximately 79% of the RPO over the next 12 months and approximately 90% over the next 24 months, with the remaining recognized thereafter.