v3.25.4
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Change in Estimate at Completion Adjustments
Net EAC adjustments had the following impacts to revenue for the periods presented:
Year Ended December 31,
(Dollars in millions)202520242023
Revenue and operating earnings$(59)$(25)$(23)
Total % of revenue2%1%1%
Net earnings(47)(20)(18)
Impact on diluted earnings per share$(0.17)$(0.07)$(0.07)
Schedule of Contract Assets and Contract Liabilities Contract assets and contract liabilities as of the dates presented were:
December 31,
(Dollars in millions)20252024
Contract assets$931 $872 
Contract liabilities585 399 
Schedule of Disaggregation of Revenue We disaggregate ASC revenue by geographical region, customer relationship and contract
type. We believe these categories best depict how the nature, amount, timing and uncertainty of ASC revenue and cash flows are affected by economic factors.
Year Ended December 31,
(Dollars in millions)202520242023
Revenue by Geographical Region
United States$2,018 $1,685 $1,537 
International325 412 269 
Intersegment sales12 21 25 
Total
$2,355 $2,118 $1,831 
Revenue by Customer Relationship
Prime contractor$1,056 $925 $858 
Subcontractor1,287 1,172 948 
Intersegment sales12 21 25 
Total
$2,355 $2,118 $1,831 
Revenue by Contract Type
Firm-fixed price
$2,056 $1,762 $1,522 
Flexibly priced(1)
287 335 284 
Intersegment sales12 21 25 
Total
$2,355 $2,118 $1,831 
________________
(1)Includes revenue derived from cost-type and time-and-materials contracts.
We disaggregate IMS revenue by geographical region, customer relationship and contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors.
Year Ended December 31,
(Dollars in millions)202520242023
Revenue by Geographical Region
United States$1,326 $1,117 $1,006 
International(21)20 14 
Intersegment sales2 1 1 
Total
$1,307 $1,138 $1,021 
Revenue by Customer Relationship
Prime contractor$351 $259 $252 
Subcontractor954 878 768 
Intersegment sales2 1 1 
Total
$1,307 $1,138 $1,021 
Revenue by Contract Type
Firm-fixed price
$1,149 $948 $851 
Flexibly priced(1)
156 189 169 
Intersegment sales2 1 1 
Total
$1,307 $1,138 $1,021 
________________
(1)Includes revenue derived from cost-type and time-and-materials contracts.