v3.24.3
Revenues
 9 Months Ended
Sep. 27, 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 September 27, 2024, we had $16 billion of RPO and expect to recognize approximately 66% and 82% 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 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense SystemsTotal
(in millions)
DoD and U.S. Intelligence Community
$1,281 $243 $15 $475 $2,014 
Other U.S. government agencies(1)
540 964 114 18 1,636 
Commercial and non-U.S. customers
26 16 448 29 519 
Total$1,847 $1,223 $577 $522 $4,169 
Three Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
DoD and U.S. Intelligence Community
$1,235 $257 $11 $444 $1,947 
Other U.S. government agencies(1)
570 776 91 31 1,468 
Commercial and non-U.S. customers
33 16 446 (13)482 
Total$1,838 $1,049 $548 $462 $3,897 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Nine Months Ended September 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense SystemsTotal
(in millions)
DoD and U.S. Intelligence Community$3,749 $755 $29 $1,341 $5,874 
Other U.S. government agencies(1)
1,585 2,867 268 64 4,784 
Commercial and non-U.S. customers87 48 1,348 86 1,569 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
Nine Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense SystemsTotal
(in millions)
DoD and U.S. Intelligence Community$3,582 $797 $26 $1,219 $5,624 
Other U.S. government agencies(1)
1,682 2,230 236 91 4,239 
Commercial and non-U.S. customers99 45 1,319 63 1,526 
Total$5,363 $3,072 $1,581 $1,373 $11,389 
(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 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$980 $433 $94 $326 $1,833 
Firm-fixed-price511 737 378 155 1,781 
Time-and-materials and fixed-price-level-of-effort
356 53 105 41 555 
Total$1,847 $1,223 $577 $522 $4,169 
Three Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee
$993 $467 $89 $301 $1,850 
Firm-fixed-price509 537 367 134 1,547 
Time-and-materials and fixed-price-level-of-effort
336 45 92 27 500 
Total$1,838 $1,049 $548 $462 $3,897 
Nine Months Ended September 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee$2,874 $1,331 $269 $940 $5,414 
Firm-fixed-price1,497 2,176 1,049 437 5,159 
Time-and-materials and fixed-price-level-of-effort1,050 163 327 114 1,654 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
Nine Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
Cost-reimbursement and fixed-price-incentive-fee$2,876 $1,542 $263 $840 $5,521 
Firm-fixed-price1,513 1,394 1,005 425 4,337 
Time-and-materials and fixed-price-level-of-effort974 136 313 108 1,531 
Total$5,363 $3,072 $1,581 $1,373 $11,389 
Disaggregated revenues by geographic location were as follows:
Three Months Ended September 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$1,840 $1,222 $257 $511 $3,830 
International
7 1 320 11 339 
Total$1,847 $1,223 $577 $522 $4,169 
Three Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$1,831 $1,047 $221 $458 $3,557 
International
7 2 327 4 340 
Total$1,838 $1,049 $548 $462 $3,897 
Nine Months Ended September 27, 2024
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$5,398 $3,666 $692 $1,458 $11,214 
International
23 4 953 33 1,013 
Total$5,421 $3,670 $1,645 $1,491 $12,227 
Nine Months Ended September 29, 2023
National Security & Digital
Health & Civil
Commercial & International
Defense Systems
Total
(in millions)
United States
$5,336 $3,069 $630 $1,362 $10,397 
International
27 3 951 11 992 
Total$5,363 $3,072 $1,581 $1,373 $11,389 
Revenues by customer-type, contract-type and geographic location exclude lease income of $21 million and $70 million for the three and nine months ended September 27, 2024, respectively, and $24 million and $69 million for the three and nine months ended September 29, 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 itemSeptember 27,
2024		December 29,
2023
(in millions)
Contract assets - current:
Unbilled receivablesReceivables, net$1,137 $1,041 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$353 $442 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$13 $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 and nine months ended September 27, 2024, $45 million and $256 million, respectively, of revenue recognized was included as a contract liability at December 29, 2023. For the three and nine months ended September 29, 2023, $28 million and $215 million, respectively, of revenue recognized was included as a contract liability at December 30, 2022.