KBR, INC., 10-K filed on 2/26/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Jan. 02, 2026
Jan. 30, 2026
Jul. 04, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 02, 2026    
Current Fiscal Year End Date --01-02    
Document Transition Report false    
Entity File Number 001-33146    
Entity Registrant Name KBR, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-4536774    
Entity Address, Address Line One 601 Jefferson Street, Suite 3400    
Entity Address, City or Town Houston    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 77002    
City Area Code 713    
Local Phone Number 753-2000    
Title of 12(b) Security Common Stock par value $0.001 per share    
Trading Symbol KBR    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 6.1
Entity Common Stock, Shares Outstanding (in shares)   126,466,139  
Documents Incorporated by Reference
Portions of the registrant’s Proxy Statement for its 2026 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.
    
Amendment Flag false    
Entity Central Index Key 0001357615    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
v3.25.4
Audit Information
 12 Months Ended
Jan. 02, 2026
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Houston, Texas
Auditor Firm ID 185
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Income Statement [Abstract]      
Revenues $ 7,786 $ 7,710 $ 6,956
Cost of revenues (6,636) (6,611) (5,979)
Gross profit 1,150 1,099 977
Equity in earnings of unconsolidated affiliates 210 107 114
Selling, general and administrative expenses (578) (543) (487)
Legal settlement of legacy matter 0 0 (144)
Other (4) (4) (11)
Operating income 778 659 449
Interest expense (158) (144) (115)
Charges associated with Convertible Notes 0 0 (494)
Other non-operating expense (6) (7) (5)
Income (loss) from continuing operations before income taxes 614 508 (165)
Provision for income taxes (156) (129) (95)
Net income (loss) from continuing operations 458 379 (260)
Net income (loss) from discontinued operations, net of tax (55) 2 (1)
Net income (loss) 403 381 (261)
Less: Net income attributable to noncontrolling interests included in continuing operations 7 5 4
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations (19) 1 0
Net income (loss) attributable to KBR $ 415 $ 375 $ (265)
Net income (loss) attributable to KBR per share      
Basic earnings (loss) per share from continuing operations (in usd per share) $ 3.49 $ 2.78 $ (1.96)
Basic earnings (loss) per share from discontinued operations (in usd per share) (0.28) 0.01 0
Basic earnings (loss) per share attributable to KBR (in usd per share) 3.21 2.79 (1.96)
Diluted earnings (loss) per share from continuing operations (in usd per share) 3.49 2.78 (1.96)
Diluted earnings (loss) per share from discontinued operations (in usd per share) (0.28) 0.01 0
Diluted earnings (loss) per share attributable to KBR (in usd per share) $ 3.21 $ 2.79 $ (1.96)
Basic weighted average common shares outstanding (in shares) 129 134 135
Diluted weighted average common shares outstanding (in shares) 129 134 135
Cash dividends declared per share ( in usd per share) $ 0.66 $ 0.60 $ 0.54
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 403 $ 381 $ (261)
Other comprehensive income (loss):      
Foreign currency translation adjustments 72 (20) 52
Pension and post-retirement benefits (44) (15) (101)
Changes in fair value of derivatives (26) 0 (12)
Other comprehensive income (loss) 2 (35) (61)
Income tax (expense) benefit:      
Pension and post-retirement benefits 11 4 25
Changes in fair value of derivatives 5 0 3
Income tax benefit 16 4 28
Other comprehensive income (loss), net of tax 18 (31) (33)
Comprehensive income (loss) 421 350 (294)
Less: Comprehensive income attributable to noncontrolling interests included in continuing operations 7 5 4
Less: Comprehensive income (loss) attributable to noncontrolling interests included in discontinued operations (19) 1 0
Comprehensive income (loss) attributable to KBR $ 433 $ 344 $ (298)
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Current assets:    
Cash and cash equivalents $ 500 $ 342
Accounts receivable, net of allowance for credit losses of $6 and $9, respectively 1,086 1,066
Contract assets 280 271
Other current assets 166 173
Current assets of discontinued operations 19 21
Total current assets 2,051 1,873
Pension assets 89 82
Property, plant and equipment, net of accumulated depreciation of $506 and $474 (including net PPE of $5 and $5 owned by a variable interest entity), respectively 232 237
Operating lease right-of-use assets 217 203
Goodwill 2,677 2,630
Intangible assets, net of accumulated amortization of $501 and $427, respectively 727 763
Equity in and advances to unconsolidated affiliates 107 192
Deferred income taxes 162 209
Other assets 322 396
Non-current assets of discontinued operations 0 78
Total assets 6,584 6,663
Current liabilities:    
Accounts payable 712 772
Contract liabilities 331 328
Accrued salaries, wages and benefits 342 351
Current maturities of long-term debt 49 36
Other current liabilities 235 280
Current liabilities of discontinued operations 19 15
Total current liabilities 1,688 1,782
Employee compensation and benefits 144 135
Income tax payable 83 122
Deferred income taxes 95 83
Long-term debt 2,547 2,533
Operating lease liabilities 236 228
Other liabilities 279 244
Non-current liabilities of discontinued operations 0 69
Total liabilities 5,072 5,196
Commitments and Contingencies (Notes 6, 13 and 14)
KBR shareholders' equity:    
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued 0 0
Common stock, $0.001 par value 300,000,000 shares authorized, 182,891,428 and 182,469,230 shares issued, and 126,454,289 and 132,435,609 shares outstanding, respectively 0 0
PIC 2,552 2,526
Retained earnings 1,697 1,367
Treasury stock, 56,437,139 shares and 50,033,621 shares, at cost, respectively (1,818) (1,494)
AOCL (928) (946)
Total KBR shareholders' equity 1,503 1,453
Noncontrolling interests 9 14
Total shareholders' equity 1,512 1,467
Total liabilities and shareholders’ equity $ 6,584 $ 6,663
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Allowance for doubtful accounts $ 6 $ 9
Accumulated depreciation, PP&E 506 474
Net PPE of owned by a variable interest entity 232 237
Accumulated amortization, intangibles $ 501 $ 427
Preferred stock, par value (in usd per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 50,000,000 50,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in usd per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 182,891,428 182,469,230
Common stock, shares outstanding (in shares) 126,454,289 132,435,609
Treasury stock, shares (in shares) 56,437,139 50,033,621
Variable Interest Entity, Primary Beneficiary    
Net PPE of owned by a variable interest entity $ 5 $ 5
v3.25.4
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
PIC
Retained Earnings
Treasury Stock
AOCL
NCI
Beginning balance at Dec. 31, 2022 $ 1,632 $ 2,235 $ 1,410 $ (1,143) $ (882) $ 12
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 20 20        
Common stock issued upon exercise of stock options 5 5        
Dividends declared to shareholders (73)   (73)      
Repurchases of common stock (138)     (138)    
Issuance of ESPP shares 6 3   3    
Distributions to noncontrolling interests (6)         (6)
Convertible Notes Transactions 242 242        
Other 0     (1)   1
Net income (loss) (261)   (265)     4
Other comprehensive (loss) income , net of tax (33)       (33)  
Ending balance at Dec. 29, 2023 1,394 2,505 1,072 (1,279) (915) 11
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 22 22        
Common stock issued upon exercise of stock options 2 2        
Dividends declared to shareholders (80)   (80)      
Repurchases of common stock (218)     (218)    
Issuance of ESPP shares 9 5   4    
Acquisition of noncontrolling interests (10) (8)       (2)
Distributions to noncontrolling interests (4)         (4)
Other 2     (1)   3
Net income (loss) 381   375     6
Other comprehensive (loss) income , net of tax (31)       (31)  
Ending balance at Jan. 03, 2025 1,467 2,526 1,367 (1,494) (946) 14
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 21 21        
Dividends declared to shareholders (85)   (85)      
Repurchases of common stock (329)     (329)    
Issuance of ESPP shares 13 5   8    
Investments by noncontrolling interest 12         12
Distributions to noncontrolling interests (4)         (4)
Other (4)     (3)   (1)
Net income (loss) 403   415     (12)
Other comprehensive (loss) income , net of tax 18       18  
Ending balance at Jan. 02, 2026 $ 1,512 $ 2,552 $ 1,697 $ (1,818) $ (928) $ 9
v3.25.4
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared per share ( in usd per share) $ 0.66 $ 0.60 $ 0.54
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Cash flows from operating activities:      
Net income (loss) $ 403 $ 381 $ (261)
Net (income) loss from discontinued operations, net of tax 55 (2) 1
Net income (loss) from continuing operations 458 379 (260)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Charges associated with Convertible Notes 0 0 494
Depreciation and amortization 169 156 141
Equity in earnings of unconsolidated affiliates (210) (107) (114)
Deferred income tax 60 1 14
Other (1) (11) 12
Changes in operating assets and liabilities, net of acquired businesses:      
Accounts receivable, net of allowance for credit losses (2) 5 (32)
Contract assets (3) (93) 38
Accounts payable (70) 147 (53)
Contract liabilities (16) (29) 76
Accrued salaries, wages and benefits (2) (7) 21
Payments on operating lease liabilities (81) (71) (65)
Payments from unconsolidated affiliates, net 9 9 18
Distributions of earnings from unconsolidated affiliates 170 163 74
Pension funding (3) (62) (9)
Other assets and liabilities 79 (30) (54)
Total cash flows provided by operating activities - continuing operations 557 450 301
Cash flows from investing activities:      
Purchases of property, plant and equipment (42) (52) (62)
Proceeds from sale of assets or investments 3 7 0
Return of equity method investments, net 82 36 60
Acquisitions of businesses, net of cash acquired (14) (738) 0
Funding in other investment (10) (5) (39)
Other (3) 1 (11)
Total cash flows provided by (used in) investing activities - continuing operations 16 (751) (52)
Cash flows from financing activities:      
Borrowings on short-term and long-term debt 0 574 0
Borrowings on Revolver 555 393 785
Payments on short-term and long-term debt (36) (124) (17)
Payments on Revolver (505) (98) (340)
Payments to repurchase common stock (329) (218) (138)
Payments on settlement of warrants 0 (33) (217)
Debt issuance costs 0 (18) 0
Proceeds from the settlement of note hedge 0 0 493
Payments to settle Convertible Notes 0 0 (843)
Acquisition of noncontrolling interest 0 (10) 0
Payments of dividends to shareholders (84) (79) (72)
Other (4) (13) (10)
Total cash flows provided by (used in) financing activities - continuing operations (403) 374 (359)
Total operating cash flows from discontinued operations (33) 12 30
Total investing cash flows from discontinued operations (12) (25) (18)
Total financing cash flows from discontinued operations 12 0 0
Total cash flows from discontinued operations (33) (13) 12
Effect of exchange rate changes on cash 18 (14) 13
Increase (decrease) in cash and cash equivalents 155 46 (85)
Cash and cash equivalents at beginning of period 350 304 389
Cash and cash equivalents at end of period 505 350 304
Less: cash and cash equivalents of discontinued operations 5 8 21
Cash and cash equivalents at end of period for continuing operations 500 342 283
Supplemental disclosure of cash flows information:      
Cash paid for interest 141 124 102
Cash paid for income taxes (net of refunds) 83 82 52
Noncash financing activities      
Dividends declared $ 21 $ 20 $ 18
v3.25.4
Significant Accounting Policies
 12 Months Ended
Jan. 02, 2026
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform with current period presentation. We have evaluated all events and transactions occurring after the balance sheet date but before the consolidated financial statements were issued and have included the appropriate disclosures.

As discussed further in Note 21. “Discontinued Operations” to our consolidated financial statements, HomeSafe informed us on June 18, 2025, that U.S. Transportation Command unexpectedly terminated HomeSafe’s role in the Global Household Goods Contract. We disposed of HomeSafe in the second quarter of fiscal 2025 and determined that this disposal met the requirements to be reported as discontinued operations. As such, the results of HomeSafe are presented as discontinued operations in the accompanying consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows and notes for all periods presented.

Reporting Periods

In 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. Fiscal 2025 ended January 2, 2026, fiscal 2024 ended January 3, 2025 and fiscal 2023 ended December 29, 2023. Fiscal 2025 included 52 weeks, fiscal 2024 included 53 weeks and fiscal 2023 included 52 weeks.

Use of Estimates

The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring estimates and assumptions by our management include the following:

•project revenues, costs and profits on our contracts;
•award fees, costs and profits on government contracts;
•client claims and recoveries of costs from subcontractors, vendors and others;
•provisions for income taxes and related valuation allowances and tax uncertainties;
•evaluation of goodwill for impairment;
•evaluation of intangibles and long-lived assets for impairment;
•evaluation of equity method investments for impairment;
•valuation of pension obligations and pension assets;
•accruals for estimated liabilities, including litigation accruals; and
•valuation of assets and liabilities acquired in business combinations.
Cash and Cash Equivalents

We consider highly liquid investments with an original maturity of three months or less to be cash equivalents.

Revenue Recognition

We, and our equity method investments, recognize revenue in accordance with ASC 606. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied, which occurs with the transfer of control of the goods or services to the customer. We recognize revenue on substantially all of our contracts over time, as performance obligations are satisfied, due to
the continuous transfer of control to the customer. We determine whether to recognize revenue on a gross or net basis by assessing if we control the goods or services provided by third parties before they reach the customer, acting as the principal when we do and as the agent when we only arrange for another party to provide them. Our contracts are generally accounted for as a single performance obligation and are not segmented between types of services provided. We recognize revenue on those contracts over time using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs at completion. Contract costs include all direct materials, labor and subcontractors costs and indirect costs related to contract performance. We believe this method is the most accurate measure of contract performance because it directly measures the value of the goods and services transferred to the customer. For all other contracts we recognize revenue when services are performed which generally coincides with our ability to bill.

Contract Combination

To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract.

For a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service.

Contract Types

The Company performs work under contracts that broadly consists of fixed-price, cost-reimbursable, time-and-materials or a combination of the three.

Fixed-price contracts also include unit-rate contracts. Under fixed-price contracts, we perform a defined scope of work for a specified fee to cover all costs and any profit element. Fixed-price contracts entail risk to us because they require us to predetermine the work to be performed, the project execution schedule and all the costs associated with the scope of work. Unit-rate contracts are considered fixed-price contracts with the only variable being units of work to be performed. Although fixed-price contracts involve greater risk than cost-reimbursable contracts, they also are potentially more profitable because the owner/customer pays a premium to transfer project risks to us.

Time-and-materials contracts typically provide for negotiated fixed rates for specified cost categories. The rates are designed to cover the cost of direct labor, indirect expense and fee. These contracts can also allow for reimbursement of cost of material plus a fee, if applicable. In U.S. government contracting, this type of contract is generally used when there is uncertainty of the extent or duration of the work to be performed by the contractor at the time of contract award or it is not possible to anticipate costs with any reasonable degree of confidence. With respect to time-and-materials contracts, we assume the price risk because our costs of performance may exceed negotiated hourly rates. In commercial and non-U.S. government contracting, this contract type is generally used for defined and non-defined scope contracts where there is a higher degree of uncertainty and risks as to the scope of work. These types of contracts may also provide for a guaranteed maximum price where the total cost plus the fee cannot exceed an agreed upon guaranteed maximum price or not-to-exceed provisions.

Under cost-reimbursable contracts, the price is generally variable based upon our actual allowable costs incurred for materials, equipment, reimbursable labor hours, overhead and G&A expenses. Profit on cost-reimbursable contracts may be in the form of a fixed fee or a mark-up applied to costs incurred, or a combination of the two. The fee may also be an incentive fee based on performance indicators, milestones or targets and can be based on customer discretion or in form of an award fee determined based on customer evaluation of the Company's performance against contractual criteria. Cost-reimbursable contracts may also provide for a guaranteed maximum price where the total fee plus the total cost cannot exceed an agreed upon guaranteed maximum price. Cost-reimbursable contracts are generally less risky because the owner/customer retains many of the project risks, however it requires us to use our best efforts to accomplish the scope of the work within a specified time and
budget. Cost-reimbursable contracts with the U.S. government are subject to the FAR and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers, including the types of costs that are allowable, is based on specific negotiations with each customer.

See Note 3. "Revenue" to our consolidated financial statements for further discussion of our revenue by contract type.

Contract Costs

Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. Project mobilization costs incurred are capitalized as deferred assets and amortized on a straight-line basis over the anticipated term of the contract or a specified period of performance consistent with the transfer of control of the performance obligation to the client. These costs incurred may be to transition the services, employees and equipment to or from the customer, a prior contract or prior contractor. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client.

Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties.

We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations.

Variable Consideration

In addition to the variable contract price under cost-reimbursable contracts, it is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance and any other information (historical, current or forecasted) that is reasonably available to us.

Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred.

Contract Estimates and Modifications

Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors
and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method.

We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. See Note 3. "Revenue" for changes in all other project-related estimates.

Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications prospectively when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification.

Contract Assets and Liabilities

Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is used, and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue.

Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.

The payment terms of our contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. Advance payments generally are not considered to contain a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.

Selling, General and Administrative Expenses

Selling, general and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other functions. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in cost of revenues) or selling, general and administrative expenses in the same manner as such costs are defined in the Company’s disclosure statements under CAS.

Accounts Receivable

Accounts receivable include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. Amounts billed and unbilled are recognized at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Unbilled amounts also include rate variances that are billable upon negotiation of final indirect rates with the DCAA.
We establish an allowance for credit losses based on the assessment of our clients' ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due.
Additionally, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. The receivables sold under the agreements do not allow for recourse for any credit risk related to our customers if such receivables are not collected by the third-party financial institutions. The Company accounts for these receivable transfers as a sale under ASC Topic 860, Transfers and Servicing as the receivables have been legally isolated from the Company, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the consolidated balance sheets is presented net of the transferred amount. See Note 20. "Fair Value of Financial Instruments and Risk Management" to our consolidated financial statements for further information on sales of receivables.

Property, Plant and Equipment

Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term. See Note 7. “Property, Plant and Equipment” to our consolidated financial statements for our discussion on property, plant and equipment.    

Business Combinations

We account for business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations ("ASC 805"). Under this method, the purchase consideration is measured at fair value, and the identifiable tangible and intangible assets acquired and liabilities assumed are recognized at their estimated acquisition‑date fair values, with any excess recognized as goodwill. We engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred.

Goodwill and Intangible Assets
Goodwill is an asset representing the excess cost over the fair market value of net assets and identifiable intangibles acquired in business combinations. In accordance with ASC Topic 350, Intangibles - Goodwill and Other, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure.

Goodwill is assessed annually for possible impairment as of the first day of our fourth quarter each fiscal year, and on an interim basis when indicators of possible impairment exist. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required.

We also have the option to proceed directly to the quantitative test. Under the quantitative impairment test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge equal to the excess would be recognized, up to a maximum amount of goodwill allocated to that reporting unit. We can resume the qualitative assessment in any subsequent period for any reporting unit.

During fiscal 2025, 2024 and 2023, management performed a qualitative impairment assessment of our reporting units, of which there were no indications that it was more likely than not that the fair value of our reporting units were less than their respective carrying values. As such, a quantitative goodwill test was not required, and no goodwill impairment was recognized in fiscal 2025, 2024 and 2023. See Note 8. “Goodwill and Intangible Assets” to our consolidated financial statements for reported goodwill in each of our segments.
We had intangible assets with net carrying values of $727 million and $763 million as of January 2, 2026 and January 3, 2025, respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. During fiscal 2025, 2024 and 2023, there were no triggering events identified. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years. See Note 8. “Goodwill and Intangible Assets” to our consolidated financial statements for further discussion of our intangible assets.

Equity Method Investments

We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions.

Equity in earnings (losses) of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings.
    
We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for our discussion on equity method investments.

We evaluate distributions received from our equity method investments using the nature of distribution approach. Under this approach, we evaluate the nature of activities of the investee that generated the distribution. The distributions received are either classified as a return on investment, which is presented as a component of operating activities on our consolidated statements of cash flows, or as a return of investment, which is presented as a component of investing activities on our consolidated statements of cash flows. For BRIS only, we apply the cumulative earnings approach for the cash flow classification of distributions as information is not available to evaluate the nature of the activities of the joint venture.

Other Investments

Other investments are investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our consolidated balance sheets. These investments are accounted for under the measurement alternative, provided that KBR does not have the ability to exercise significant influence or control over the investees. We measure the investments at cost, less any impairment, and adjust the carrying value to fair value resulting from observable transactions for identical or similar investments of the investee. If it is determined that impairment indicators exist and the carrying value is less than the fair value, we adjust the carrying value of the investment to its fair value and record the related impairment. The gains and losses on the investments are recognized in other non-operating expense on our consolidated statements of operations.

Joint Ventures and VIEs

The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC Topic 810, Consolidation ("ASC 810"), which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting.
We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations.

We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for our discussion on variable interest entities.

We may determine that we are the primary beneficiary as a result of a reconsideration event associated with an existing unconsolidated VIE. We account for the change in control under the acquisition method of accounting for business combinations in accordance with ASC 805.

Pensions

We account for our defined benefit pension plans in accordance with ASC Topic 715, Compensation - Retirement Benefits, which requires an employer to:

•recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan;
•recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur;
•measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and
•disclose additional information.

Our pension benefit obligations and expenses are calculated using actuarial models and methods. The more critical assumption and estimate used in the actuarial calculations is the discount rate for determining the current value of benefit obligations. Other assumptions and estimates used in determining benefit obligations and plan expenses include expected rate of return on plan assets, inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (typically annually) and are updated accordingly to reflect our actual experience and expectations.

The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity funds and securities, fixed income funds and securities, real estate and other funds. As we have
both domestic and international plans, these assumptions differ based on varying factors specific to each particular country, participant demographics or economic environment.

Unrecognized actuarial gains and losses are recognized using the corridor method over a period of approximately 20 years, which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense.

Income Taxes

We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. See Note 12. “Income Taxes” to our consolidated financial statements for our discussion on income taxes.

Income taxes are accounted for under the asset and liability method. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
 
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, income available from carryback years, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results.
 
We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year.
 
We recognize the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records potential interest and penalties related to unrecognized tax benefits in income tax expense.
 
Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome.

Derivative Instruments

We enter into derivative financial transactions to hedge existing or forecasted risk to changing foreign currency exchange rates and interest rate risk on variable rate debt. We do not enter into derivative transactions for speculative or trading purposes.
We recognize all derivatives at fair value on the balance sheet. Derivatives that are not designated as hedges in accordance with ASC 815, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a cash flow hedge, all changes in the fair value of derivatives are recognized in other comprehensive income (loss) and are subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. See Note 20. "Fair Value of Financial Instruments and Risk Management" to our consolidated financial statements for our discussion on derivative instruments.

Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within other non-operating income (expense) on our consolidated statements of operations. Realized gains or losses on derivatives used to manage interest rate risk are included in interest expense in our consolidated statements of operations.

Concentration of Credit Risk

Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal.

Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost.

We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues which are generally not collateralized. We generated significant revenues from transactions with the U.S. government and U.K. government within our MTS business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented.

The following table summarizes our revenues and accounts receivable for contracts with U.S. and U.K. government agencies for which we are the prime contractor, as well as for contracts in which we are a subcontractor and the ultimate customer is a U.S. or U.K. government agency, respectively.
Revenues and percentage of consolidated revenues from major customers:
 
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
U.S. government$4,427 57 %$4,350 56 %$4,000 58 %
U.K. government$663 9 %$674 9 %$634 9 %
  
Accounts receivable and percentage of consolidated accounts receivable from major customers:
Dollars in millionsJanuary 2, 2026January 3, 2025
U.S. government$512 47 %$521 49 %
U.K. government$76 7 %$67 6 %

Noncontrolling Interest

Noncontrolling interests represent the equity investments of partners in our joint ventures and other subsidiary entities that we consolidate in our financial statements.

Foreign Currency

Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long-term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in accumulated other comprehensive loss on our consolidated balance sheets.
Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in accumulated other comprehensive loss on our consolidated balance sheets.

Share-based Compensation

We account for share-based payments, including grants of employee stock options, restricted stock-based awards and performance cash units, in accordance with ASC Topic 718, Compensation-Stock Compensation ("ASC 718"), which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in our consolidated statements of operations based on their fair values on the award date and the estimated number of shares of common stock we ultimately expect to vest. We recognize share-based compensation expense on a straight-line basis over the service period of the award, which is no greater than 3 years. If an award is modified after the grant date, incremental compensation cost is recognized immediately as of the modification. The benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefits) are classified as additional paid-in-capital and cash retained as a result of these excess tax benefits is presented in the statements of cash flows as financing cash inflows. See Note 18. “Share-based Compensation and Incentive Plans” to our consolidated financial statements for our discussion on share-based compensation and incentive plans.

Commitments and Contingencies

We record liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. We adopted this standard effective for our 2025 fiscal year on a prospective basis. Refer to Note 12. "Income Taxes" for additional information.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of additional information about certain income statement expense categories. ASU 2024-03 will be effective for our 2027 fiscal year ending December 31, 2027. Early adoption is permitted and the amendments can be applied on a prospective or retrospective basis. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. Under the new standard, cost capitalization should only commence when an entity has committed to funding a software project and it is probable the project will be completed and the software will be used for its intended function. The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Entities may apply the guidance using a prospective, retrospective or modified transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We are currently determining the preferred transition approach and assessing the impact of the ASU on our disclosures and financial statements, including the timing of its adoption.
Additional Balance Sheet Information

Other Current Assets. The components of other current assets on our consolidated balance sheets as of January 2, 2026 and January 3, 2025 are presented below: 
Dollars in millionsJanuary 2, 2026January 3, 2025
Prepaid expenses$69 $76 
Value-added tax receivable43 36 
Advances to subcontractors14 6 
Other miscellaneous assets40 55 
Total other current assets$166 $173 

Other Current Liabilities. The components of other current liabilities on our consolidated balance sheets as of January 2, 2026 and January 3, 2025 are presented below:
Dollars in millionsJanuary 2, 2026January 3, 2025
Operating lease liabilities$56 $58 
Value-added tax payable34 46 
Dividend payable21 20 
Other miscellaneous liabilities124 156 
Total other current liabilities$235 $280 
v3.25.4
Business Segment Information
 12 Months Ended
Jan. 02, 2026
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
We provide a wide range of professional services, and the management of our business is heavily focused on major projects or programs within each of our reportable segments. At any given time, government programs and joint ventures represent a substantial part of our operations. To streamline and optimize our processes, we realigned our segments effective as of fiscal 2025. As part of this realignment, our Government Solutions reportable segment has been renamed Mission Technology Solutions while Sustainable Technology Solutions has retained its name. The international business contained within Government Solutions has been integrated into both Mission Technology Solutions and Sustainable Technology Solutions. All information in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026 is presented in accordance with the realigned reportable segments and all prior period information was recast to reflect the realigned reportable segments. Effective for fiscal 2026, a portion of a business unit within our Mission Technology Solutions segment will become part of our Sustainable Technology Solutions segment. We will begin reporting new segment information due to this change beginning the first fiscal quarter of 2026.

We are organized into two core business segments, Mission Technology Solutions and Sustainable Technology Solutions and one non-core business segment as described below:

Mission Technology Solutions. Our Mission Technology Solutions business segment provides full life-cycle support solutions to defense, intelligence, space, aviation and other programs and missions for military and other government agencies primarily in the U.S., U.K. and Australia. KBR's full-spectrum solutions span research and development, advanced prototyping, acquisition support, systems engineering, C5ISR, cyber analytics, space domain awareness, test and evaluation, data analytics and integration, systems integration and program management, global supply chain management, operations readiness and support and professional advisory services across the defense, energy security and transition and critical infrastructure sectors. Included in Mission Technology Solutions is the business of LinQuest Corporation ("LinQuest"), an engineering, data analytics and digital integration company acquired on August 30, 2024 and Infrastar Limited acquired on May 17, 2025. See Note 4. "Acquisitions" to our consolidated financial statements for additional information on these acquisitions. Additionally, the disposal of HomeSafe is reported as discontinued operations and HomeSafe's operations are excluded from Mission Technology Solutions results reflected within our tables below. See Note 21. “Discontinued Operations” for additional information regarding the HomeSafe disposal.

Sustainable Technology Solutions. Our Sustainable Technology Solutions business segment is anchored by our portfolio of over 85 innovative, proprietary, sustainability-focused process technologies that reduce emissions, increase efficiency and/or accelerate and enable energy transition across the industrial base in four primary verticals: ammonia/syngas, chemical/petrochemicals, clean refining and circular process/circular economy solutions. STS also provides highly synergistic services including advisory and consulting focused on energy security, broad-based emission solutions, high-end engineering,
infrastructure, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization, as well as our digitally-enabled operating and monitoring solutions. Through early planning and scope definition, advanced technologies and facility life-cycle optimization, our STS business segment works closely with customers to provide what we believe is the optimal approach to maximize their return on investment.

Corporate. Our non-core segment includes corporate expenses and selling, general and administrative expenses not allocated to the business segments above.

In its operation of our business, our management, including our chief operating decision maker ("CODM"), evaluates the performance of our business segments based on operating income. Our CODM, who is our chief executive officer, utilizes operating income to evaluate segment results and is a factor considered in determining capital allocation among the segments. Our CODM analyzes selected segment balance sheet information for our business segments and for the Company as a whole. Information on each of our business segments and reconciliation to net income (loss) attributable to KBR from continuing operations within our consolidated statements of operations is presented in the tables below.

Operations by Reportable Segment
Year ended January 2, 2026
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,581 $2,205 $— $7,786 
Cost of revenues(4,860)(1,776)— (6,636)
Gross profit721 429 — 1,150 
Equity in earnings of unconsolidated affiliates33 177 — 210 
Selling, general and administrative expenses(293)(127)(158)(578)
Other2 (2)(4)(4)
Operating income (loss)463 477 (162)778 
Interest expense— — (158)(158)
Other non-operating income (expense)(6)2 (2)(6)
Income (loss) from continuing operations before income taxes457 479 (322)614 
Provision for income taxes— — (156)(156)
Net income (loss) from continuing operations457 479 (478)458 
Less: Net income attributable to noncontrolling interests included in continuing operations— 7 — 7 
Net income (loss) attributable to KBR from continuing operations$457 $472 $(478)$451 
Supplemental Disclosures:
Depreciation and amortization$115 $27 $27 $169 
Purchases of property, plant, and equipment$(28)$(4)$(10)$(42)
Total assets as of January 2, 2026$4,432 $1,184 $968 $6,584 
Year ended January 3, 2025
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,555 $2,155 $— $7,710 
Cost of revenues(4,887)(1,724)— (6,611)
Gross profit668 431 — 1,099 
Equity in earnings of unconsolidated affiliates32 75 — 107 
Selling, general and administrative expenses(285)(98)(160)(543)
Other— (3)(1)(4)
Operating income (loss)415 405 (161)659 
Interest expense— — (144)(144)
Other non-operating income (expense)— 1 (8)(7)
Income (loss) from continuing operations before income taxes415 406 (313)508 
Provision for income taxes— — (129)(129)
Net income (loss) from continuing operations415 406 (442)379 
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations(1)6 — 5 
Net income (loss) attributable to KBR from continuing operations$416 $400 $(442)$374 
Supplemental Disclosures:
Depreciation and amortization$99 $27 $30 $156 
Purchases of property, plant, and equipment$(33)$(7)$(12)$(52)
Total assets as of January 3, 2025$4,534 $1,182 $947 $6,663 
Year ended December 29, 2023
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,119 $1,837 $— $6,956 
Cost of revenues(4,518)(1,461)— (5,979)
Gross profit601 376 — 977 
Equity in earnings of unconsolidated affiliates33 81 — 114 
Selling, general and administrative expenses(234)(98)(155)(487)
Legal settlement of legacy matter(144)— — (144)
Other— (5)(6)(11)
Operating income (loss)256 354 (161)449 
Interest expense— — (115)(115)
Charges associated with Convertible Notes— — (494)(494)
Other non-operating income (expense)2 2 (9)(5)
Income (loss) from continuing operations before income taxes258 356 (779)(165)
Provision for income taxes— — (95)(95)
Net income (loss) from continuing operations258 356 (874)(260)
Less: Net income attributable to noncontrolling interests included in continuing operations— 4 — 4 
Net income (loss) attributable to KBR from continuing operations$258 $352 $(874)$(264)
Supplemental Disclosures:
Depreciation and amortization$90 $25 $26 $141 
Purchases of property, plant, and equipment$(25)$(15)$(22)$(62)
Selected Geographic Information

Long-lived assets by country are determined based on the location of tangible assets.

Dollars in millionsJanuary 2, 2026January 3, 2025
Property, plant & equipment, net:
United States$124 $129 
United Kingdom34 35 
Other74 73 
Total$232 $237 
v3.25.4
Revenue
 12 Months Ended
Jan. 02, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue

We disaggregate our revenue from customers by business unit, customer type, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue by business unit and reportable segment was as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Mission Technology Solutions
Science & Space$1,126 $1,188 $1,127 
Defense & Intel3,178 2,887 2,497 
Readiness & Sustainment1,277 1,480 1,495 
Total Mission Technology Solutions$5,581 $5,555 $5,119 
Sustainable Technology Solutions$2,205 $2,155 $1,837 
Total revenue$7,786 $7,710 $6,956 

Revenue by customer type was as follows:
Year ended
January 2, 2026January 3, 2025December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$3,370 $— $3,370 $3,292 $— $3,292 $3,039 $— $3,039 
U.S. Government Federal Civilian Clients1,057 — 1,057 1,112 — 1,112 1,052 — 1,052 
International Government Clients905 — 905 891 — 891 791 — 791 
Commercial and Infrastructure Clients249 2,205 2,454 260 2,155 2,415 237 1,837 2,074 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 
Revenue by geographic destination was as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Total by Countries/RegionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
United States$3,772 $472 $4,244 $3,503 $542 $4,045 $3,096 $521 $3,617 
Europe1,313 271 1,584 1,595 299 1,894 1,569 247 1,816 
Middle East123 667 790 110 621 731 105 423 528 
Australia219 329 548 202 324 526 204 292 496 
Africa77 176 253 70 131 201 70 106 176 
Asia20 122 142 18 134 152 17 152 169 
Other countries57 168 225 57 104 161 58 96 154 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 

Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:    

Year ended January 2, 2026Year ended January 3, 2025Year ended December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$3,305 $— $3,305 $3,507 $— $3,507 $3,287 $— $3,287 
Time-and-Materials938 1,373 2,311 892 1,362 2,254 846 1,166 2,012 
Fixed Price1,338 832 2,170 1,156 793 1,949 986 671 1,657 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 

Performance Obligations

Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations satisfied in previous periods for such matters of $48 million, $30 million and $15 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively.

On January 2, 2026, we had $13.3 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 41% in years two through five and 23% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of January 2, 2026.

Changes in Project-related Estimates

There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. During fiscal 2025, we recognized a favorable change in operating income of $134 million as a result of changes in estimates on an LNG project.

Contract Assets and Contract Liabilities

Contract assets were $280 million and $271 million and contract liabilities were $331 million and $328 million, at January 2, 2026 and January 3, 2025, respectively. The increase in contract assets was primarily attributed to revenue recognized on certain contracts partially offset by the timing of billings. The increase in contract liabilities was due to the timing of advance payments and revenue recognized during the period. We recognized revenue of $233 million for the year ended January 2, 2026, which was previously included in the contract liability balance at January 3, 2025.
Accounts Receivable

Dollars in millionsJanuary 2, 2026January 3, 2025
Unbilled$520 $525 
Trade & other566 541 
Accounts receivable, net$1,086 $1,066 
v3.25.4
Acquisition
 12 Months Ended
Jan. 02, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisition Acquisitions
Infrastar Limited

On May 17, 2025, we acquired Infrastar Limited for $35 million, which consisted of $15 million of cash and contingent consideration with an estimated fair value of $20 million that is contingent upon the achievement of certain performance targets through May 2027. The contingent consideration could result in cash payments aggregating up to approximately $24 million. Within our MTS segment, as of January 2, 2026, we recognized $2 million of cash, $11 million of intangible assets related to customer relationships and goodwill of $24 million primarily related to future growth opportunities. As of January 2, 2026, the estimated fair values of net assets acquired were preliminary. We recorded a measurement period adjustment to the preliminary fair values initially recorded on May 17, 2025 and reported within KBR's quarterly report on Form 10-Q for the period ended July 4, 2025. The measurement period adjustment was a decrease to cash of $2 million and an increase to goodwill of $2 million. For U.S. tax purposes, the transaction is treated as a stock deal. As a result, there is no step-up in tax basis and the goodwill recognized is not deductible for tax purposes.

LinQuest Corporation
On August 30, 2024, we acquired LinQuest for $739 million in cash net of cash acquired, subject to certain working capital, net debt and other post-closing adjustments. The purchase price allocation for the LinQuest business combination is final as of January 2, 2026. During the year ended January 2, 2026, we recorded a measurement period adjustment to the preliminary fair values reported within our Annual Report on Form 10-K for the year ended January 3, 2025. The measurement period adjustment was a decrease to deferred income taxes liability of $10 million and a decrease to goodwill of $10 million. We recognized goodwill within our MTS segment of $516 million primarily related to future growth opportunities, a highly skilled assembled workforce and other expected synergies from the combined operations. Intangible assets of $200 million were recognized and comprised of customer relationships and contract backlog, which will be amortized over a weighted-average period of 14 years. For U.S. tax purposes, the transaction is treated as a stock deal. As a result, there is no step-up in tax basis and the goodwill recognized is not deductible for tax purposes.
v3.25.4
Cash and Cash Equivalents
 12 Months Ended
Jan. 02, 2026
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents Cash and Cash Equivalents
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include cash balances held by our wholly owned subsidiaries as well as cash held by joint ventures that we consolidate. Joint venture and the Aspire project cash balances are limited to specific project activities and are not available for other projects, new acquisitions and joint ventures, general cash needs or distribution to us without approval of the Board of Directors of the respective entities. The cash and cash equivalents held in consolidated joint ventures and the Aspire project are expected to be used for their respective project costs and distributions of earnings.

The components of our cash and cash equivalents balance are as follows:
January 2, 2026
Dollars in millionsInternational (a)Domestic (b)Total
Cash and cash equivalents$226 $199 $425 
Short-term investments (c)12 11 23 
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d)52 — 52 
Total$290 $210 $500 
January 3, 2025
Dollars in millionsInternational (a)Domestic (b)Total
Cash and cash equivalents$199 $14 $213 
Short-term investments (c)8 10 18 
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d)110 1 111 
Total$317 $25 $342 
(a)Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes.
(b)Includes U.S. dollar and foreign currency deposits held in U.S. entities with operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. Includes cash and cash equivalents held by our wholly owned captive insurance company of $15 million and $12 million as of January 2, 2026 and January 3, 2025, respectively, which is generally not available to KBR to support its other operations.
(c)Includes time deposits, money market funds and other highly liquid short-term investments.
(d)Includes short-term investments held by Aspire Defence subcontracting entities for $11 million and $83 million as of January 2, 2026 and January 3, 2025, respectively. In fiscal 2025 a contractual repayment was made by the Aspire Defence subcontracting entities.
v3.25.4
Unapproved Change Orders and Claims Against Clients
 12 Months Ended
Jan. 02, 2026
Contractors [Abstract]  
Unapproved Change Orders and Claims Against Clients Unapproved Change Orders and Claims Against Clients
The amounts of unapproved change orders and claims against clients included in determining the profit or loss on contracts that has been recorded to date are as follows:
Dollars in millionsFiscal 2025Fiscal 2024
Amounts included in project estimates-at-completion at beginning of fiscal year$104 $74 
Net increase in project estimates67 57 
Resolution of claim— (27)
     Approved change orders(146)— 
Amounts included in project-related estimates-at-completion at end of fiscal year$25 $104 
Amounts recognized over time based on progress $13 $100 
The balance as of January 2, 2026 relates to estimated recoveries of claims associated with certain U.S. government projects in our Mission Technology Solutions segment. In fiscal 2025, a resolution was reached regarding an outstanding unapproved change order within our Mission Technology Solutions segment for $128 million. In fiscal 2024, an outstanding legacy claim was resolved associated with a U.S. government project resulting in a $26 million decrease recognized in revenues on our consolidated statements of operations.
v3.25.4
Property, Plant and Equipment
 12 Months Ended
Jan. 02, 2026
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
The components of our property, plant and equipment balance are as follows:
Dollars in millionsEstimated Useful Lives in YearsJanuary 2, 2026January 3, 2025
LandN/A$5 $5 
Buildings and property improvements
1-35
179 165 
Equipment and other
1-25
554 541 
Total$738 $711 
Less accumulated depreciation(506)(474)
Net property, plant and equipment$232 $237 
Property, plant and equipment includes approximately $23 million and $33 million of equipment and other assets under finance lease obligations as of January 2, 2026, and January 3, 2025, respectively. Depreciation expense, including amortization expense for finance ROU assets, was $51 million, $56 million and $50 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively.
v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Jan. 02, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill

The changes in the carrying amount of goodwill in each of our reportable segments for the years ended January 2, 2026 and January 3, 2025 were as follows:
Dollars in millionsMTSSTSTotal
Balance as of December 29, 2023$1,921 $188 $2,109 
Goodwill acquired during the period (Note 4)531 — 531 
Foreign currency translation(9)(1)(10)
Balance as of January 3, 2025$2,443 $187 $2,630 
Goodwill acquired and adjusted during the period (Note 4)14 — 14 
Foreign currency translation30 3 33 
Balance as of January 2, 2026$2,487 $190 $2,677 

Intangible Assets

Intangible assets are comprised of customer relationships, trade names, licensing agreements and other. The cost and accumulated amortization of our intangible assets were as follows:
January 2, 2026
Dollars in millionsWeighted Average Remaining Useful LivesIntangible Assets, GrossAccumulated AmortizationIntangible Assets, Net
Trademarks/trade namesIndefinite$50 $— $50 
Customer relationships11758 (266)492 
Developed technologies1583 (48)35 
Contract backlog15314 (173)141 
Other1023 (14)9 
Total intangible assets$1,228 $(501)$727 
January 3, 2025
Dollars in millionsWeighted Average Remaining Useful LivesIntangible Assets, GrossAccumulated AmortizationIntangible Assets, Net
Trademarks/trade namesIndefinite$50 $— $50 
Customer relationships13740 (219)521 
Developed technologies1682 (45)37 
Contract backlog15297 (151)146 
Other1021 (12)9 
Total intangible assets$1,190 $(427)$763 

Intangibles subject to amortization are impaired if the carrying value of the intangible is not recoverable and exceeds its fair value. Intangibles that are not subject to amortization are reviewed annually for impairment or more often if events or circumstances change that would create a triggering event. During the years ended January 2, 2026, January 3, 2025 and December 29, 2023, no impairments related to our intangible assets were recorded.
Our intangibles amortization expense is presented below:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Intangibles amortization expense$64 $52 $45 

Our expected intangibles amortization expense for the next five fiscal years is presented below:
Dollars in millionsExpected future intangibles amortization expense
2026$58 
2027$57 
2028$57 
2029$57 
2030$57 
Beyond 2030$391 
v3.25.4
Equity Method Investments and Variable Interest Entities
 12 Months Ended
Jan. 02, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments and Variable Interest Entities Equity Method Investments and Variable Interest Entities
We conduct some of our operations through joint ventures, which operate through partnerships, corporations and undivided interests and other business forms and are principally accounted for using the equity method of accounting. Additionally, the majority of our joint ventures are VIEs.

The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
Dollars in millionsJanuary 2, 2026January 3, 2025
Balance at beginning of fiscal year$192 $206 
Equity in earnings of unconsolidated affiliates210 107 
Distributions of earnings of unconsolidated affiliates (a)(165)(202)
Payments from unconsolidated affiliates, net(9)(9)
Return of equity method investments, net (b)(82)(36)
Foreign currency translation adjustments4 (2)
Other (c)(43)128 
Balance at end of fiscal year$107 $192 
(a)In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our consolidated statements of cash flows. Joint ventures within our STS segment declared a distribution of earnings of $34 million in the fourth quarter of fiscal 2025 that was not received by KBR until fiscal 2026. A joint venture within our STS segment declared a distribution of earnings of $39 million in the fourth quarter of fiscal 2024 that was not received by KBR until fiscal 2025.
(b)During fiscal 2025, we received a return of investment from BRIS of approximately $82 million. On October 6, 2025, our joint venture partner in BRIS sold its ownership interest to a third party. Prior to the closing of this sale, funds were distributed by BRIS during fiscal 2025 to return capital to its owners. Of the funds distributed, KBR received $79 million which has been reflected as a "return of equity method investment, net" within the investing section of our consolidated statements of cash flows. During fiscal 2024, we received a return of investment from JKC of approximately $36 million related to our proportionate share of a tax refund.
(c)During fiscal 2025, Other included a reduction to the net liability position of $43 million related to a joint venture within our STS business segment. During fiscal 2024, Other included the reclassification of the net liability position of $128 million related to joint ventures within our STS business segment.

Equity Method Investments

Brown & Root Industrial Services Joint Venture. The Brown & Root Industrial Services ("BRIS") joint venture offers engineering, construction and reliability-driven maintenance services for the refinery, petrochemical, chemical, specialty chemicals and fertilizer markets. Our interest in this venture is accounted for using the equity method and we have determined that the BRIS joint venture is not a VIE. Results from this joint venture are included in our STS business segment. Subsequent to January 2, 2026, BRIS closed on an agreement to acquire a welding and turnaround services provider. We contributed $115 million in cash to BRIS in fiscal 2026 as part of this agreement.
Summarized financial information

Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows:

Balance Sheets
Dollars in millionsJanuary 2, 2026January 3, 2025
Current assets$1,624 $3,142 
Noncurrent assets1,475 1,473 
Total assets$3,099 $4,615 
Current liabilities$1,493 $3,173 
Noncurrent liabilities1,874 1,628 
Total liabilities$3,367 $4,801 

Statements of Operations
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Revenues$4,737 $8,657 $5,873 
Operating income$453 $217 $264 
Net income$443 $221 $242 

Unconsolidated Variable Interest Entities

For the VIEs in which we participate, our maximum exposure to loss consists of our equity investment in the VIE and any amounts owed to us for services we may have provided to the VIE, reduced by any unearned revenues on the project. Our maximum exposure to loss may also include our obligation to fund our proportionate share of any future losses incurred. Where our performance and financial obligations are joint and several to the client with our joint venture partners, we may be further exposed to losses above our ownership interest in the joint venture.
The following table summarizes the total assets and total liabilities recorded on our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.
January 2, 2026
Dollars in millionsTotal AssetsTotal Liabilities
Affinity joint venture (U.K. MFTS project)$7 $1 
Aspire Defence Limited$94 $9 
JKC joint venture (Ichthys LNG project)$— $81 
Plaquemines LNG project$— $35 
January 3, 2025
Dollars in millionsTotal AssetsTotal Liabilities
Affinity joint venture (U.K. MFTS project)$6 $1 
Aspire Defence Limited$84 $7 
JKC joint venture (Ichthys LNG project)$— $80 
Plaquemines LNG project$48 $94 

Affinity. KBR owns a 50% interest in Affinity. In addition, KBR owns a 50% interest in the two joint ventures, Affinity Capital Works and Affinity Flying Services, which provide procurement, operations and management support services under subcontracts with Affinity. The remaining 50% interest in these entities is held by Elbit Systems. KBR has provided its proportionate share of certain limited financial and performance guarantees in support of the partners' contractual obligations. The three project-related entities are VIEs; however, KBR is not the primary beneficiary of any of these entities. We account for KBR's interests in each entity using the equity method of accounting within our MTS business segment. The project is funded through KBR and Elbit Systems provided equity, subordinated debt and non-recourse third party commercial bank debt. Our maximum exposure to loss includes our equity investments in the project entities as of January 2, 2026.

Aspire Defence project. We indirectly own a 45% interest in Aspire Defence Limited, the contracting company that is the holder of the 35-year concession contract. The project is funded through equity and subordinated debt provided by the project sponsors and the issuance of publicly-held senior bonds which are nonrecourse to KBR and the other project sponsors. The contracting company is a VIE; however, we are not the primary beneficiary of this entity. We account for our interest in Aspire Defence Limited using the equity method of accounting. Our maximum exposure to loss includes our equity investments in the project entities and amounts payable to us for services provided to these entities less unearned revenues to be provided to these entities as of January 2, 2026.
Ichthys LNG project. The Ichthys LNG project, a project to construct the Ichthys Onshore LNG Export Facility in Darwin, Australia, is being executed through two entities (collectively, "JKC"), which are VIEs, in which we own a 30% equity interest. We account for our investments using the equity method of accounting.

Plaquemines LNG project. KZJV is a joint venture with Zachry Group that performs certain design, engineering, procurement and construction-related services for a LNG facility in Plaquemines Parish, Louisiana. KBR owns a 45% interest in KZJV, which is a VIE for which we are joint and several to the client with our joint venture partner. We are not the primary beneficiary as we do not have the power to direct the activities of the VIE that most significantly impact its economic performance. The investment is accounted for within our STS business segment using the equity method of accounting.

Related Party Transactions

We often provide engineering, construction management and other subcontractor services to our unconsolidated joint ventures, and our revenues include amounts related to these services. For the years ended January 2, 2026, January 3, 2025 and December 29, 2023, our revenues included $710 million, $721 million and $567 million, respectively, related to the services we provided primarily to the Aspire Defence Limited joint venture within our MTS business segment and a joint venture within our STS business segment.
Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of January 2, 2026 and January 3, 2025 are as follows:

Dollars in millionsJanuary 2, 2026January 3, 2025
Accounts receivable, net of allowance for credit losses (a)$59 $96 
Contract liabilities (a)$41 $68 
(a)Accounts receivable and contract liabilities primarily related to the Aspire Defence Limited joint venture within our MTS business segment and a joint venture within our STS business segment.

Consolidated Variable Interest Entities

We consolidate VIEs if we determine we are the primary beneficiary of the project entity because we control the activities that most significantly impact the economic performance of the entity. The following is a summary of the significant VIE where we are the primary beneficiary:
January 2, 2026
Dollars in millionsTotal AssetsTotal Liabilities
Aspire Defence subcontracting entities (Aspire Defence project)$338 $149 
January 3, 2025
Dollars in millionsTotal AssetsTotal Liabilities
Aspire Defence subcontracting entities (Aspire Defence project)$372 $197 
 
Aspire Defence project (subcontracting entities). We assumed operational management of the Aspire Defence subcontracting entities in January 2018. These subcontracting entities exclusively provide the construction and the related support services under subcontract arrangements with Aspire Defence Limited. These entities are considered VIEs, and, because we are the primary beneficiary, they are consolidated for financial reporting purposes.
v3.25.4
Retirement Benefits
 12 Months Ended
Jan. 02, 2026
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
Defined Contribution Retirement Plans
    
We have elective defined contribution plans for our employees in the U.S. and retirement savings plans for our employees in the U.K., Canada and other locations. Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of retirement benefits the participant is to receive. Contributions to these plans are based on pretax income discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $148 million in fiscal 2025, $131 million in fiscal 2024 and $119 million in fiscal 2023.

Defined Benefit Pension Plans

We have two frozen defined benefit pension plans in the U.S., one frozen and one active plan in the U.K. and one frozen plan in Germany. Substantially all of our defined benefit plans are funded pension plans, which define an amount of pension benefit to be provided, usually as a function of years of service or compensation.

We used January 2, 2026 as the measurement date for all plans in fiscal 2025 and January 3, 2025 as the measurement date for all plans in fiscal 2024. Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables.
OverfundedUnderfunded
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025
Change in projected benefit obligations:
Projected benefit obligations at beginning of period$47 $1,111 $8 $4 
Service cost— 1 — — 
Interest cost2 63 1 — 
Foreign currency exchange rate changes— 84 — — 
Actuarial (gain) loss(1)
1 (12)— — 
Benefits paid(4)(70)(1)— 
Other— (1)— — 
Projected benefit obligations at end of period$46 $1,176 $8 $4 
Change in plan assets:
Fair value of plan assets at beginning of period$46 $1,193 $8 $— 
Actual return on plan assets6 48 1 — 
Employer contributions2 1 — — 
Foreign currency exchange rate changes— 91 — — 
Benefits paid(4)(70)(1)— 
Other(1)(1)— — 
Fair value of plan assets at end of period$49 $1,262 $8 $— 
Funded status$3 $86 $— $(4)
(1) Actuarial (gains) losses primarily driven by inflation.
OverfundedUnderfunded
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2024
Change in projected benefit obligations:
Projected benefit obligations at beginning of period$— $1,301 $58 $4 
Service cost— 1 — — 
Interest cost— 61 3 — 
Foreign currency exchange rate changes— (23)— — 
Actuarial gain(1)
— (162)(1)— 
Benefits paid— (67)(5)— 
Projected benefit obligations at end of period$— $1,111 $55 $4 
Change in plan assets:
Fair value of plan assets at beginning of period$— $1,295 $53 $— 
Actual return on plan assets— (72)5 — 
Employer contributions— 61 1 — 
Foreign currency exchange rate changes— (24)— — 
Benefits paid— (67)(5)— 
Fair value of plan assets at end of period$— $1,193 $54 $— 
Funded status$— $82 $(1)$(4)
(1) Actuarial gains primarily driven by change in discount rates.
The Accumulated Benefit Obligation ("ABO") is the present value of benefits earned to date. The ABO for our United States pension plans was $54 million and $55 million as of January 2, 2026 and January 3, 2025, respectively. The ABO for our international pension plans was $1,180 million and $1,115 million as of January 2, 2026 and January 3, 2025, respectively.
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024
Amounts recognized on the consolidated balance sheets
Pension assets$3 $86 $— $82 
Other liabilities$— $(4)$(1)$(4)
Net periodic pension cost for our defined benefit plans included the following components:
United StatesInternationalUnited StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024Fiscal 2023
Components of net periodic benefit cost
Service cost$— $1 $— $1 $— $1 
Interest cost3 63 3 61 3 61 
Expected return on plan assets(3)(112)(3)(113)(3)(102)
Prior service cost amortization— 1 — 1 — 1 
Recognized actuarial loss1 4 1 3 1 — 
Net periodic (benefit) cost$1 $(43)$1 $(47)$1 $(39)
The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at January 2, 2026 and January 3, 2025, net of tax were as follows:
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024
Unrecognized actuarial loss, net of tax of $6 and $238, $6 and $226, respectively
$10 $678 $12 $643 
Total in accumulated other comprehensive loss$10 $678 $12 $643 
The weighted-average assumptions used to determine net periodic benefit cost were as follows:
United StatesInternationalUnited StatesInternationalUnited StatesInternational
Fiscal 2025Fiscal 2024Fiscal 2023
Discount rate5.32 %5.54 %4.70 %4.79 %4.91 %5.00 %
Expected return on plan assets6.64 %6.80 %6.64 %6.70 %6.63 %5.92 %
The weighted-average assumptions used to determine benefit obligations at the measurement date were as follows:
United StatesInternationalUnited StatesInternational
Fiscal 2025Fiscal 2024
Discount rate4.97 %5.60 %5.32 %5.54 %

Plan fiduciaries of our retirement plans set investment policies and strategies and oversee the investment direction, which includes selecting investment managers, commissioning asset-liability studies and setting long-term strategic targets. Long-term strategic investment objectives include preserving the funded status of the plan and balancing risk and return and have diversified asset types, fund strategies and fund managers. Targeted asset allocation ranges are guidelines, not limitations and occasionally plan fiduciaries will approve allocations above or below a target range.
The target asset allocation for our U.S. and International plans for fiscal 2026 is as follows:
Fiscal 2026 Targeted
United StatesInternational
Equity funds and securities52 %37 %
Fixed income funds and securities39 %46 %
Real estate funds1 %7 %
Other 8 %10 %
Total100 %100 %

The range of targeted asset allocations for our International plans for fiscal 2026 and fiscal 2025, by asset class, are as follows:
International PlansFiscal 2026 Targeted Percentage RangeFiscal 2025 Targeted Percentage Range
Minimum MaximumMinimumMaximum
Equity funds and securities29 %45 %36 %55 %
Fixed income funds and securities37 %55 %28 %42 %
Real estate funds6 %8 %6 %10 %
Other8 %12 %10 %15 %

The range of targeted asset allocations for our U.S. plans for fiscal 2026 and fiscal 2025, by asset class, are as follows:
Domestic PlansFiscal 2026 Targeted Percentage RangeFiscal 2025 Targeted Percentage Range
MinimumMaximumMinimumMaximum
Equity funds and securities41 %62 %41 %62 %
Fixed income funds and securities31 %47 %31 %47 %
Real estate funds1 %1 %1 %1 %
Other7 %10 %7 %10 %

ASC Topic 820 ("ASC 820"), Fair Value Measurement addresses fair value measurements and disclosures, defines fair value, establishes a framework for using fair value to measure assets and liabilities and expands disclosures about fair value measurements. This standard applies whenever other standards require or permit assets or liabilities to be measured at fair value. ASC 820 establishes a three-tier value hierarchy, categorizing the inputs used to measure fair value. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. Refer to Note 20. "Fair Value of Financial Instruments and Risk Management" for a description of the primary valuation methodologies and classification used for assets measured at fair value.

A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below.
Fair Value Measurements at Reporting Date
Dollars in millionsTotalLevel 1Level 2Level 3
Asset Category at January 2, 2026
United States plan assets
Investments measured at net asset value (a)$57 $— $— $— 
Total United States plan assets$57 $— $— $— 
International plan assets
Equities$413 $— $356 $57 
Fixed income606 — 606 — 
Real estate2 — — 2 
Cash and cash equivalents99 99 — — 
Other56 — — 56 
Investments measured at net asset value (a)86 — — — 
Total international plan assets$1,262 $99 $962 $115 
Total plan assets at January 2, 2026$1,319 $99 $962 $115 
Fair Value Measurements at Reporting Date
Dollars in millionsTotalLevel 1Level 2Level 3
Asset Category at January 3, 2025
United States plan assets
Investments measured at net asset value (a)$54 $— $— $— 
Total United States plan assets$54 $— $— $— 
International plan assets
Equities$433 $— $379 $54 
Fixed income564 — 564 — 
Real estate1 — — 1 
Cash and cash equivalents39 39 — — 
Other56 — — 56 
Investments measured at net asset value (a)100 — — — 
Total international plan assets$1,193 $39 $943 $111 
Total plan assets at January 3, 2025$1,247 $39 $943 $111 
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following:
Dollars in millionsTotalEquitiesFixed IncomeReal EstateOther
International plan assets
Balance as of December 29, 2023$114 $51 $— $1 $62 
Return on assets held at end of year6 8 — — (2)
Purchases, sales and settlements, net(7)(4)— — (3)
Foreign exchange impact(2)(1)— — (1)
Balance as of January 3, 2025$111 $54 $— $1 $56 
Return on assets held at end of year(6)2 1 — (9)
Return on assets sold during the year— (1)(1)— 2 
Purchases, sales and settlements, net1 (2)— — 3 
Foreign exchange impact9 4 — 1 4 
Balance as of January 2, 2026$115 $57 $— $2 $56 

Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plans reside. In certain countries the funding requirements are mandatory while in other countries they are discretionary. In 2024, the Trustee of the U.K. defined benefit pension plan commenced the triennial actuarial valuation of the plan which was finalized during the year ended January 2, 2026. At this time, we do not anticipate contributing additional funding to this plan at least until the next triennial valuation occurs. We paid no employer pension contributions in fiscal 2025 and $61 million in fiscal 2024 for our U.K. defined benefit pension plan.
Benefit payments. The following table presents the expected benefit payments over the next 10 years.
Pension Benefits
Dollars in millionsUnited StatesInternational
Fiscal 2026$6 $73 
Fiscal 2027$5 $75 
Fiscal 2028$5 $78 
Fiscal 2029$5 $80 
Fiscal 2030$5 $81 
Fiscals 2031-2035$20 $417 
Deferred Compensation Plans
Our Elective Deferral Plan is a nonqualified deferred compensation program that provides benefits payable to officers, certain key employees or their designated beneficiaries and non-employee directors at specified future dates, upon retirement, or death. The elective deferral plan is unfunded except for $7 million and $6 million of mutual funds designated for a portion of our employee deferral plan included in other assets on our consolidated balance sheets at January 2, 2026 and January 3, 2025, respectively. The mutual funds are measured at fair value using Level 1 inputs under ASC 820 and may be liquidated in the near term without restrictions. Our obligations under our employee deferred compensation plan were $80 million and $74 million as of January 2, 2026 and January 3, 2025, respectively, and are included in employee compensation and benefits in our consolidated balance sheets.
v3.25.4
Debt and Other Credit Facilities
 12 Months Ended
Jan. 02, 2026
Debt Disclosure [Abstract]  
Debt and Other Credit Facilities Debt and Other Credit Facilities
Our outstanding debt consisted of the following at the dates indicated:
Dollars in millionsJanuary 2, 2026January 3, 2025
Term Loan A$989 $1,006 
Term Loan B983 993 
Senior Notes250 250 
Revolver395 345 
Unamortized debt issuance costs and discounts(21)(25)
Total debt2,596 2,569 
Less: current portion49 36 
Total long-term debt, net of current portion$2,547 $2,533 

Senior Credit Facility
Our existing Credit Agreement, dated as of April 25, 2018, as amended ("Credit Agreement"), consists of a $1 billion revolving credit facility (the "Revolver"), a Term Loan A ("Term Loan A") with debt tranches denominated in U.S. dollars and British pound sterling and a Term Loan B ("Term Loan B" and together with the Revolver and Term Loan A, the "Senior Credit Facility").

We had cash borrowings of $555 million on our Revolver that occurred during fiscal 2025. We had cash repayments of $505 million on our Revolver, $26 million on our Term Loan A and $10 million on our Term Loan B that occurred during fiscal 2025. The interest rates with respect to the Revolver, Term Loan A and Term Loan B are based on, at our option, the applicable adjusted reference rate plus an additional margin or base rate plus additional margin. Additionally, there is a commitment fee applicable to available amounts under the Revolver.

The applicable interest rate per annum of the Term B loan facility is term SOFR plus 2.00% (or base rate plus 1.00%). The details of the applicable margins and commitment fees under the Revolver, Term Loan A-1 and Term Loan A-3 are based on our consolidated net leverage ratio as follows:
Revolver, Term Loan A-1 and Term Loan A-3
Consolidated Net Leverage RatioReference Rate (a)Base RateCommitment Fee
Greater than or equal to 4.25 to 1.002.25 %1.25 %0.33 %
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.002.00 %1.00 %0.30 %
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.001.75 %0.75 %0.28 %
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.001.50 %0.50 %0.25 %
Less than 1.25 to 1.001.25 %0.25 %0.23 %
(a)The reference rate for the Revolver and the U.S. dollar tranches of Term Loan A-1 is SOFR plus 10 basis points Credit Spread Adjustment and the British pound sterling tranche of Term Loan A-3 is SONIA plus 12 basis points Credit Spread Adjustment.
The details of the applicable margins and commitment fees under Term Loan A-2 are based on our consolidated net leverage ratio as follows:
Term Loan A-2
Consolidated Net Leverage RatioReference Rate (a)Base RateCommitment Fee
Greater than or equal to 4.25 to 1.002.13 %1.13 %0.33 %
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.001.88 %0.88 %0.30 %
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.001.63 %0.63 %0.28 %
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.001.38 %0.38 %0.25 %
Less than 1.25 to 1.001.13 %0.13 %0.23 %
(a)The reference rate for Term Loan A-2 is SOFR.

Both Term Loan A-1 and Term Loan A-3 provide for quarterly principal payments of 0.625% of the aggregate principal amount, increasing to 1.25% starting with the quarter ending April 3, 2026. Term Loan A-2 provides for quarterly principal payments of 0.625% of the aggregate principal amount and Term Loan B provides for quarterly principal payments of $3 million. Each of Term Loan A-1, Term Loan A-3 and the Revolver matures in February 2029, Term Loan A-2 matures in August 2027 and Term Loan B matures in January 2031.

The Senior Credit Facility contains financial covenants providing for a maximum consolidated net leverage ratio and a consolidated interest coverage ratio (as such terms are defined in the Senior Credit Facility). Our consolidated net leverage ratio as of the last day of any fiscal quarter may not exceed 4.25 to 1 in 2023, reducing to 4.00 to 1 in 2024 and thereafter. Our consolidated interest coverage ratio may not be less than 3.00 to 1 as of the last day of any fiscal quarter. As of January 2, 2026, we were in compliance with our financial covenants under our Senior Credit Facility.

Senior Notes
We have $250 million aggregate principal amount of 4.750% Senior Notes due 2028 (the "Senior Notes") pursuant to an indenture among us, the guarantors party thereto and Citibank, N.A., as trustee. The Senior Notes are senior unsecured obligations and are fully and unconditionally guaranteed by each of our existing and future domestic subsidiaries that guarantee our obligations under the Senior Credit Facility and certain other indebtedness. Interest is payable semi-annually in arrears on March 30 and September 30 of each year and the principal is due on September 30, 2028.

We have the ability to redeem all or part of the Senior Notes at our option, at the redemption prices set forth in the Senior Notes, plus accrued and unpaid interest, if any, to (but not including) the redemption date. If we undergo a change of control, we may be required to make an offer to holders of the Senior Notes to repurchase all of the Senior Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest.

Letters of credit, surety bonds and guarantees
In connection with certain projects, we are required to provide letters of credit, surety bonds or guarantees to our customers in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers and future funding commitments. As of January 2, 2026, we had a $1 billion committed line of credit on the Revolver under our Senior Credit Facility and $488 million of bilateral and uncommitted lines of credit. As of January 2, 2026, with respect to our Revolver, we had $395 million of outstanding borrowings. We also have $14 million of outstanding letters of credit on our Senior Credit Facility. With respect to our $488 million of bilateral and uncommitted lines of credit, we utilized $296 million for letters of credit as of January 2, 2026. The total remaining capacity of these committed and uncommitted lines of credit was approximately $783 million as of January 2, 2026, all of which can be used toward issuing letters of credit. Of the letters of credit outstanding under the Senior Credit Facility, none have expiry dates beyond the maturity date of the Senior Credit Facility. Of the total letters of credit outstanding under our bilateral facilities, $99 million relate to our joint venture operations where the letters of credit are posted using our capacity to support our pro-rata share of obligations under various contracts executed by joint ventures of which we are a member.

We may also guarantee that a project, once completed, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential amount of future payments that we could be required to make under an outstanding performance arrangement is typically the remaining estimated cost of work to be performed by or on behalf of third parties. Amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress are not estimable. For cost reimbursable contracts, amounts that may
become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract. For fixed-price contracts, the performance guarantee amount is the cost to complete the contracted work, less amounts remaining to be billed to the client under the contract. Remaining billable amounts could be greater or less than the cost to complete the project. If costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, subcontractors or vendors for claims.
In our joint venture arrangements, the liability of each partner is usually joint and several. This means that each joint venture partner may become liable for the entire risk of performance guarantees provided by each partner to the customer. Typically, each joint venture partner indemnifies the other partners for any liabilities incurred in excess of the liabilities the other party is obligated to bear under the respective joint venture agreement. We are unable to estimate the maximum potential amount of future payments that we could be required to make under outstanding performance guarantees related to joint venture projects due to a number of factors, including but not limited to the nature and extent of any contractual defaults by our joint venture partners, resource availability, potential performance delays caused by the defaults, the location of the projects and the terms of the related contracts.
v3.25.4
Income Taxes
 12 Months Ended
Jan. 02, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income (loss) from continuing operations before income taxes and noncontrolling interests were as follows:

Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
United States$270 $99 $(464)
Foreign:
United Kingdom150 161 133 
Australia30 45 49 
Middle East64 61 45 
Asia55 100 48 
Other45 42 24 
Subtotal344 409 299 
Total$614 $508 $(165)

The total income taxes included in the statements of operations and in shareholders' equity were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Provision for income taxes$(156)$(129)$(95)
Shareholders' equity, pension and post-retirement benefits11 4 25 
Shareholders' equity, changes in fair value of derivatives5 — 3 
Total income taxes$(140)$(125)$(67)
The components of the provision for income taxes were as follows:
Dollars in millionsCurrentDeferredTotal
Year ended January 2, 2026
Federal$(1)$(55)$(56)
Foreign(69)(14)(83)
State and other(26)9 (17)
Provision for income taxes$(96)$(60)$(156)
Year ended January 3, 2025
Federal$(7)$6 $(1)
Foreign(95)(10)(105)
State and other(25)2 (23)
Provision for income taxes$(127)$(2)$(129)
Year ended December 29, 2023
Federal$— $(3)$(3)
Foreign(65)(14)(79)
State and other(17)4 (13)
Provision for income taxes$(82)$(13)$(95)

The components of total foreign income tax provision were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
United Kingdom$(32)$(37)$(32)
Australia(12)(19)(13)
Middle East(17)(18)(12)
Asia(13)(18)(8)
Other(9)(13)(14)
Foreign provision for income taxes$(83)$(105)$(79)

The components of income taxes paid, net of refunds received, for the year ended January 2, 2026 were as follows:
Year ended
Dollars in millionsJanuary 2, 2026
Federal$9 
Foreign
Australia17 
India8 
Saudi Arabia5 
Singapore10 
United Kingdom5 
Other9 
State and other
Louisiana5 
Other15 
Cash paid during the period for income taxes, net of refunds$83 
Our effective tax rate on income from continuing operations for the year ended January 2, 2026 differed from the statutory U.S. federal income tax rate of 21%, presented after prospectively adopting ASU 2023-09, as a result of the following:
Year ended
January 2, 2026
Dollars in millions$%
U.S. statutory federal rate$129 21 %
Domestic federal tax effects:
Tax credits(8)(1)%
Nontaxable or nondeductible items:
Non-deductible charge-outs7 1 %
Other9 1 %
Effect of cross-border tax laws:
Global Intangible Low-Taxed Income11 2 %
Foreign-derived Intangible Income deduction(10)(2)%
Subpart F deemed dividend6 1 %
Other(2)— %
Changes in valuation allowances(3)— %
State and local income taxes, net of federal benefit (a)
14 2 %
Foreign tax effects:
Australia
Non-deductible charge-outs and release of refundable associated with a resolution18 3 %
Other6 1 %
Iraq6 1 %
Other(7)(1)%
Worldwide changes in unrecognized tax benefits(20)(4)%
Effective tax rate on income from continuing operations$156 25 %
(a)State taxes in Louisiana made up the majority (greater than 50%) of the tax effect in this category.

As previously disclosed for the years ended January 3, 2025 and December 29, 2023, prior to the adoption of ASU 2023-09, the effective tax rate on income from continuing operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following:
Year ended
January 3,December 29,
20252023
U.S. statutory federal rate, expected (benefit) provision21 %21 %
Increase (reduction) in tax rate from:
Tax impact from foreign operations2 %2 %
Noncontrolling interests and equity earnings(2)%(1)%
State and local income taxes, net of federal benefit3 %2 %
Other permanent differences, net2 %5 %
Other non-deductible expenditures2 %— %
Change in federal and foreign valuation allowance(2)%(3)%
Research and development credits, net of provision(1)%— %
Release of previously reserved position— %(2)%
Non-Deductible portion associated with legal settlement of legacy matter— %(11)%
Non-Deductible portion of Charges associated with Convertible Notes — %(70)%
Effective tax rate on income from continuing operations25 %(57)%
The primary components of our deferred tax assets and liabilities were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025
Deferred tax assets:
     Employee compensation and benefits$64 $63 
     Foreign tax credit carryforwards60 98 
     Loss carryforwards70 69 
Research and development and other credit carryforwards37 49 
     Insurance accruals8 8 
Lease obligation and accrued liabilities84 93 
Contract liabilities 22 23 
Capitalized research expenditures76 73 
     Other99 118 
          Total gross deferred tax assets520 594 
     Valuation allowances(124)(142)
          Net deferred tax assets396 452 
Deferred tax liabilities:
Right-of-use assets(42)(47)
     Intangible amortization(127)(131)
     Indefinite-lived intangible amortization(107)(98)
     Other(53)(50)
          Total gross deferred tax liabilities(329)(326)
Deferred income tax assets, net$67 $126 

The valuation allowance for deferred tax assets was $124 million and $142 million at January 2, 2026 and January 3, 2025, respectively. The net change in the total valuation allowance was a decrease of $18 million in fiscal 2025 and a decrease of $6 million in fiscal 2024. The change in fiscal 2025 was mainly driven by the reassessment of a tax benefit previously valued in the preliminary purchase price allocation associated with the LinQuest acquisition in fiscal 2024 and the release of previously valued foreign tax credits in the U.S. The change in fiscal 2024 was mainly driven by the additional utilization of previously valued foreign tax credits in the U.S.

The valuation allowance balance at January 2, 2026 is primarily related to foreign tax credit carryforwards and foreign and state net operating loss carryforwards that, in the judgment of management, are not more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), income available from carryback years, projected future taxable income and tax-planning strategies in making this assessment.

Income related to the U.S. branches totaled $86 million, $147 million and $94 million for the fiscal years 2025, 2024 and 2023, respectively, and is included in the foreign component of income in the notes to our consolidated financial statements.

The total income (loss) related to the U.S., inclusive of branches and exclusive of charges associated with Convertible Notes and the legal settlement of a legacy matter in fiscal 2023, totaled $356 million, $249 million and $267 million for the fiscal years 2025, 2024 and 2023, respectively.

We concluded that future taxable income and the reversal of deferred tax liabilities were the only sources of taxable income available in determining the amount of valuation allowance to be recorded against our deferred tax assets. The deferred tax liabilities we relied on are projected to reverse in the same jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The deferred tax liabilities are projected to reverse in the same periods as the deferred tax assets and are projected to reverse beginning in fiscal 2026 through fiscal 2029. We estimated future taxable income by jurisdiction exclusive of reversing temporary differences and carryforwards and applied our foreign tax credit carryforwards based on the sourcing and character of those estimates and considered any limitations.
Our ability to utilize the unreserved foreign tax credit carryforwards is based on our ability to generate future taxable income of at least $286 million prior to their expiration whereas our ability to utilize other net deferred tax assets exclusive of those associated with indefinite-lived intangible assets is based on our ability to generate future taxable income of at least $914 million. While our current projections of taxable income exceed these amounts, changes in our forecasted taxable income in the applicable taxing jurisdictions within the carryforward periods could affect the ultimate realization of deferred tax assets and our valuation allowance.

The net deferred tax balance by major jurisdiction after valuation allowance as of January 2, 2026 was as follows:
Dollars in millionsGross Deferred Asset (Liability), netValuation AllowanceDeferred Asset (Liability), net
United States$224 $(95)$129 
United Kingdom(87)— (87)
Australia21 — 21 
Canada20 (19)1 
Asia3 (2)1 
Other 10 (8)2 
Total$191 $(124)$67 
    
At January 2, 2026, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows:
Dollars in millionsJanuary 2, 2026Expiration
Foreign tax credit carryforwards$60 2025-2029
Foreign net operating loss carryforwards$98 2025-2045
Foreign net operating loss carryforwards$33 Indefinite
State net operating loss carryforwards$782 Various
Research and development and other credit carryforwards$37 2025-2045
We provide for taxes on accumulated and current E&P on certain foreign subsidiaries. As of January 2, 2026, the cumulative amount of permanently reinvested foreign earnings is $2.7 billion. These previously unremitted earnings have been subject to U.S. tax. However, these undistributed earnings could be subject to additional taxes (withholding and/or state taxes) if remitted, or deemed remitted, as a dividend. The tax effects of remitting earnings, if any, are recognized when we plan on remitting these earnings. We consider our future U.S. and non-U.S. cash needs such as 1) our anticipated foreign working capital requirements, including funding of our U.K. pension plan, 2) the expected growth opportunities across all geographical markets and 3) our plans to invest in strategic growth opportunities that may include acquisitions around the world.

The OECD has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2). While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which we operate have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. On January 5, 2026 the OECD issued new administrative guidance with respect to Pillar 2 which modifies key aspects of the framework for countries to enact in their own laws. We do not expect Pillar 2 to have a material impact on our effective tax rate or our consolidated results of operations, financial position, and cash flows.
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows:
Dollars in millionsFiscal 2025Fiscal 2024Fiscal 2023
Balance at beginning of fiscal year$85 $74 $92 
Increases related to current year tax positions2 3 2 
Increases related to prior year tax positions20 — — 
Decreases related to prior year tax positions(28)(4)(2)
Increases related to tax positions from an acquisition— 15 — 
Settlements— — (16)
Lapse of statute of limitations(5)(1)(2)
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions2 (2)— 
Balance at end of fiscal year$76 $85 $74 

The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was approximately $62 million as of January 2, 2026. The difference between this amount and the amounts reflected in the tabular reconciliation above relates primarily to deferred income tax benefits on uncertain tax positions. The increases and decreases related to prior year tax positions in fiscal 2025 are primarily due to a resolution reached with tax authorities. The settlements of $16 million in fiscal 2023 are related to the release of a previously reserved IRS audit position based on developments associated with the ongoing IRS examination and appeals process for certain years.
We recognize accrued interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. Our accrual for interest and penalties was $31 million and $46 million as of January 2, 2026 and January 3, 2025, respectively. During fiscal 2025, fiscal 2024 and fiscal 2023, we recognized net interest and penalty charges of $(7) million, $4 million and $3 million, respectively, related to uncertain tax positions.

KBR is the parent of a group of domestic companies that are members of a U.S. consolidated federal income tax return. We also file income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to examination by tax authorities for U.S. federal or state and local income tax for years before 2007.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Jan. 02, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We are a party to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of any individual matter, including the matters described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings and cash flows in any particular reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress.

Although we cannot predict the outcome of legal or other proceedings with certainty, when it is probable that a loss will be incurred and the amount is reasonably estimable, U.S. GAAP requires us to accrue an estimate of the probable loss or range of loss. In the event a loss is probable, but the probable loss is not reasonably estimable, we are required to make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion, a reasonably possible loss or range of loss associated with any individual contingency cannot be estimated. See further discussion of material legal proceedings and ongoing litigation in Note 14. “U.S. Government Matters” below.

Employee Benefit Insurance Programs

Our employee-related health care benefits program is self-funded. Our workers’ compensation, automobile and general liability insurance programs include a deductible applicable to each claim. Claims in excess of our deductible are paid by the insurer. The liabilities are based on claims filed and estimates of claims incurred but not reported. As of January 2, 2026, liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately
$51 million, comprised of $21 million included in accrued salaries, wages and benefits, $2 million included in other current liabilities and $28 million included in other liabilities, all on our consolidated balance sheets. As of January 3, 2025, liabilities for anticipated claim payments and incurred but not reported claims for all insurance programs totaled approximately $40 million, comprised of $17 million included in accrued salaries, wages and benefits, $3 million included in other current liabilities and $20 million included in other liabilities, all on our consolidated balance sheets.
v3.25.4
U.S. Government Matters
 12 Months Ended
Jan. 02, 2026
United States Government Contract Work [Abstract]  
U.S. Government Matters U.S. Government Matters
We provide services to various U.S. governmental agencies, including the U.S. DoW, NASA, the Department of State and other agencies within the Intelligence Community. The negotiation, administration and settlement of our contracts are subject to audit by the DCAA. The DCAA serves in an advisory role to the DCMA, which is responsible for the administration of the majority of our contracts. The scope of these audits includes, among other things, the validity of direct and indirect incurred costs, provisional approval of annual billing rates, approval of annual overhead rates, compliance with the FAR and CAS, compliance with certain unique contract clauses and audits of certain aspects of our internal control systems. Based on the information received to date, we do not believe any completed or ongoing government audits will have a material adverse impact on our results of operations, financial position or cash flows. The U.S. government also retains the right to pursue various remedies under any of these contracts which could result in challenges to expenditures, suspension of payments, fines and suspensions or debarment from future business with the U.S. government.

We accrued for probable and reasonably estimable unallowable costs associated with open government matters related to our MTS business in the amounts of $37 million and $41 million as of January 2, 2026, and January 3, 2025, respectively, which are recorded in other liabilities on our consolidated balance sheets.

Legacy U.S. Government Matters

Between 2002 and 2011, we provided significant support to the U.S. Army and other U.S. government agencies in support of the war in Iraq under the LogCAP III contract. We have been closing out the LogCAP III contract since 2011, and we expect the contract closeout process to continue for at least another year. As a result of our work under LogCAP III, there are claims and disputes pending between us and the U.S. government that need to be resolved in order to close the contract. The contract closeout process includes administratively closing the individual task orders issued under the contract. We continue to work with the U.S. government to resolve the issues to close the remaining task orders, which includes ongoing litigation of third-party vendor disputes. We also have matters related to ongoing litigation or investigations involving U.S. government contracts. We anticipate billing vendor resolution and vendor litigation costs as we resolve the open matters in the future.
First Kuwaiti Trading Company arbitration. In April 2008, FKTC, one of our LogCAP III subcontractors providing housing containers, filed for arbitration with the American Arbitration Association for several claims under various LogCAP III subcontracts. After a series of arbitration proceedings and related litigation between KBR and the U.S. government, the panel heard the final claims and we received an award on July 27, 2022. FKTC filed a motion for correction of the award asking the tribunal to change its findings. The tribunal denied FKTC's motion in an order issued on October 20, 2022. On January 5, 2023, FKTC filed a motion to vacate the arbitral award in the Eastern District of Virginia Federal District Court. KBR filed its response on February 2, 2023. On March 22, 2023, both parties presented oral arguments. On May 12, 2023, the District Court issued its order denying FKTC’s motion to vacate the arbitration award and confirming the award. On June 12, 2023, the parties submitted their briefs in support of their calculations of the final award amount. KBR sought to confirm the net award of $16 million in KBR’s favor plus post-judgment interest. FKTC sought to offset amounts awarded to KBR with amounts FKTC claimed it was owed based on unpaid principal and post award interest on the awards issued in its favor in the prior arbitration proceedings, totaling $70 million. KBR disagreed with FKTC’s interest claim and calculation. On September 22, 2023, the Court issued a decision finding the net amount due in favor of KBR from FKTC is $8 million. FKTC has appealed this ruling. In June 2025, the appellate court affirmed the judgment in KBR’s favor and then, in July 2025, denied FKTC’s petition for a rehearing en banc. In addition, in March 2022, FKTC filed a civil action in Kuwait civil court against KBR seeking $100 million in damages. This action is duplicative of the claims decided in arbitration. In September 2022, we filed a motion to dismiss this action for lack of jurisdiction due to the arbitration agreement between KBR and FKTC. On December 7, 2023, the Kuwait Court of Cassation issued a ruling ordering KBR to pay an immaterial provisional damage award and requiring FKTC to refile its case in the Court of First Instance for adjudication. FKTC refiled its case and, in November 2024, served KBR. There are upcoming hearings in the Kuwaiti proceedings, during which KBR is expected to raise its jurisdictional defenses. Based on our assessment of existing law and precedent, the opinions or views of legal counsel and the facts available to us, no amounts were accrued as of January 2, 2026.
v3.25.4
Leases
 12 Months Ended
Jan. 02, 2026
Leases [Abstract]  
Leases Leases
We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 95% of our lease obligations at January 2, 2026. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term to determine total future lease payments. Because most of our lease agreements do not explicitly state the discount rate, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments.

Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities.

The operating lease ROU asset and noncurrent operating lease liabilities are disclosed on our consolidated balance sheets. The current operating lease liabilities are included in other current liabilities on our consolidated balance sheets. The finance ROU asset is included in property, plant and equipment and the current and noncurrent finance lease liabilities are included in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

The components of our operating lease costs for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:

Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Operating lease cost$70 $63 $62 
Short-term lease cost145 248 215 
Total lease cost$215 $311 $277 

Operating lease cost includes operating lease ROU asset amortization of $52 million, $48 million and $46 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively, and other noncash operating lease costs related to the accretion of operating lease liabilities and straight-line lease accounting of $18 million, $15 million and $16 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively.
Total short-term lease commitments as of January 2, 2026 were approximately $223 million. Additional information related to leases was as follows:
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$81 $71 $65 
Financing cash flows from finance leases$8 $11 $11 
Right-of-use assets obtained in exchange for new operating lease liabilities$29 $106 $60 
Right-of-use assets obtained in exchange for new finance lease liabilities$10 $3 $11 
Weighted-average remaining lease term - operating (in years)6 years6 years6 years
Weighted-average remaining lease term - finance (in years)2 years2 years2 years
Weighted-average discount rate - operating leases6.3 %6.4 %6.2 %
Weighted-average discount rate - finance leases6.4 %5.1 %4.2 %
The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of January 2, 2026:
Dollars in millionsOperating LeasesFinance Leases
Fiscal 2026$71 $5 
Fiscal 202763 3 
Fiscal 202858 2 
Fiscal 202951 — 
Fiscal 203036 — 
Thereafter67 — 
Total future payments346 10 
Less imputed interest(54)(1)
Present value of future lease payments292 9 
Less current portion of lease obligations(56)(5)
Noncurrent portion of lease obligations$236 $4 
Leases Leases
We enter into lease arrangements primarily for real estate, project equipment, transportation and information technology assets in the normal course of our business operations. Real estate leases accounted for approximately 95% of our lease obligations at January 2, 2026. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. We have elected not to recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. Many of our equipment leases, primarily associated with the performance of projects for U.S. government customers, include one or more renewal option periods, with renewal terms that can extend the lease term in one year increments. The exercise of these lease renewal options is at our sole discretion and is generally dependent on the period of project performance, or extension thereof, determined by our customers. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term to determine total future lease payments. Because most of our lease agreements do not explicitly state the discount rate, we use our incremental borrowing rate on the commencement date to calculate the present value of future lease payments.

Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. We exclude these non-lease components in calculating the ROU asset and lease liability for real estate leases and expense them as incurred. For all other types of leases, non-lease components are included in calculating our ROU assets and lease liabilities.

The operating lease ROU asset and noncurrent operating lease liabilities are disclosed on our consolidated balance sheets. The current operating lease liabilities are included in other current liabilities on our consolidated balance sheets. The finance ROU asset is included in property, plant and equipment and the current and noncurrent finance lease liabilities are included in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

The components of our operating lease costs for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:

Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Operating lease cost$70 $63 $62 
Short-term lease cost145 248 215 
Total lease cost$215 $311 $277 

Operating lease cost includes operating lease ROU asset amortization of $52 million, $48 million and $46 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively, and other noncash operating lease costs related to the accretion of operating lease liabilities and straight-line lease accounting of $18 million, $15 million and $16 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively.
Total short-term lease commitments as of January 2, 2026 were approximately $223 million. Additional information related to leases was as follows:
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$81 $71 $65 
Financing cash flows from finance leases$8 $11 $11 
Right-of-use assets obtained in exchange for new operating lease liabilities$29 $106 $60 
Right-of-use assets obtained in exchange for new finance lease liabilities$10 $3 $11 
Weighted-average remaining lease term - operating (in years)6 years6 years6 years
Weighted-average remaining lease term - finance (in years)2 years2 years2 years
Weighted-average discount rate - operating leases6.3 %6.4 %6.2 %
Weighted-average discount rate - finance leases6.4 %5.1 %4.2 %
The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of January 2, 2026:
Dollars in millionsOperating LeasesFinance Leases
Fiscal 2026$71 $5 
Fiscal 202763 3 
Fiscal 202858 2 
Fiscal 202951 — 
Fiscal 203036 — 
Thereafter67 — 
Total future payments346 10 
Less imputed interest(54)(1)
Present value of future lease payments292 9 
Less current portion of lease obligations(56)(5)
Noncurrent portion of lease obligations$236 $4 
v3.25.4
Accumulated Other Comprehensive Loss
 12 Months Ended
Jan. 02, 2026
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Changes in AOCL, net of tax, by component
Dollars in millionsAccumulated foreign currency translation adjustmentsAccumulated pension liability adjustmentsChanges in fair value of derivativesTotal
Balance at December 29, 2023$(300)$(644)$29 $(915)
Other comprehensive income (loss) adjustments before reclassifications(20)(15)22 (13)
Amounts reclassified from AOCL— 4 (22)(18)
Net other comprehensive loss(20)(11)— (31)
Balance at January 3, 2025$(320)$(655)$29 $(946)
Other comprehensive income (loss) adjustments before reclassifications72 (37)(4)31 
Amounts reclassified from AOCL— 4 (17)(13)
Net other comprehensive income (loss)72 (33)(21)18 
Balance at January 2, 2026$(248)$(688)$8 $(928)
Reclassifications out of AOCL, net of tax, by component
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025Affected line item on the Consolidated Statements of Operations
Accumulated pension liability adjustments
Prior service cost amortization$(1)$(1)See (a) below
Recognized actuarial loss(5)(4)See (a) below
Tax benefit2 1 Provision for income taxes
Net pension and post-retirement benefits$(4)$(4)Net of tax
   
Changes in fair value for derivatives
Interest rate swap settlements$21 $28 Interest Expense
Tax expense(4)(6)Provision for income taxes
Net changes in fair value of derivatives$17 $22 Net of tax
(a)This item is included in the computation of net periodic pension cost. See Note 10. “Retirement Benefits” to our consolidated financial statements for further discussion.
v3.25.4
Share Repurchases
 12 Months Ended
Jan. 02, 2026
Equity [Abstract]  
Share Repurchases Share Repurchases
Authorized Share Repurchase Program

On February 25, 2014, the Board of Directors authorized a plan to repurchase our outstanding shares of common stock, which replaced and terminated the August 26, 2011 share repurchase program. On February 20, 2025, the Board of Directors authorized $454 million of share repurchases to be added to the prior authorizations, which increased the total amount authorized and available for repurchase under the share repurchase program to $750 million. As of January 2, 2026, $427 million remained available for repurchase under this authorization. The authorization does not obligate us to acquire any particular number of shares of common stock and may be commenced, suspended or discontinued without prior notice. The share repurchases are intended to be funded through our current and future cash flows and the authorization does not have an expiration date.

Share Maintenance Programs

Stock options and restricted stock awards granted under the KBR, Inc. 2006 Stock and Incentive Plan ("KBR Stock Plan") may be satisfied using shares of our authorized but unissued common stock or our treasury share account.

The ESPP allows eligible employees to withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR common stock. These shares are issued from our treasury share account. Effective February 1, 2026, we suspended new share purchases under the ESPP in connection with the Planned Spin‑Off of our Mission Technology Solutions business.

Withhold to Cover Program

We have in place a "withhold to cover" program, which allows us to withhold common shares from employees in connection with the settlement of income tax and related benefit withholding obligations arising from the issuance of share-based equity awards under the KBR Stock Plan.
The table below presents information on our annual share repurchases activity under these programs:
Year ended January 2, 2026
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program6,529,142$49.45 $323 
Withhold to cover shares120,188$49.01 6 
Total6,649,330$49.44 $329 
Year ended January 3, 2025
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program3,316,026$61.51 $204 
Withhold to cover shares227,616$59.64 14 
Total3,543,642$61.39 $218 
v3.25.4
Share-based Compensation and Incentive Plans
 12 Months Ended
Jan. 02, 2026
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation and Incentive Plans Share-based Compensation and Incentive Plans
KBR Stock Plan

In November 2006, KBR established the KBR Stock Plan, which provides for the grant of any or all of the following types of share-based compensation listed below:

•stock options, including incentive stock options and nonqualified stock options;
•stock appreciation rights, in tandem with stock options or freestanding;
•restricted stock;
•restricted stock units;
•cash performance awards; and
•stock value equivalent awards.

In May 2012, the KBR Stock Plan was amended to add 2 million shares of our common stock available for issuance under the KBR Stock Plan and increase certain sub-limits and in May 2016, the KBR Stock Plan was further amended to add 4.4 million shares of our common stock available for issuance under the KBR Stock Plan.

In May 2021, the KBR Stock Plan was amended to add 7.0 million shares of our common stock available for issuance under the KBR Stock Plan. Additionally, this amendment increased the sublimit under the Stock Plan in the form of restricted stock awards, restricted stock unit awards, stock value equivalent awards or pursuant to performance awards denominated in common stock by 7.0 million. Under the terms of the KBR Stock Plan, 23.4 million shares of common stock have been reserved for issuance to employees and non-employee directors. The plan specifies that no more than 16.9 million shares can be awarded as restricted stock, restricted stock units, stock value equivalents or pursuant to performance awards denominated in common stock.

At January 2, 2026, approximately 9.9 million shares were available for future grants under the KBR Stock Plan, of which approximately 6.5 million shares remained available for restricted stock awards or restricted stock unit awards.

KBR Stock Options

Under the KBR Stock Plan, stock options are granted with an exercise price not less than the fair market value of the common stock on the date of the grant and a term no greater than 10 years. The fair value of options at the date of grant were estimated using the Black-Scholes-Merton option pricing model. The expected volatility of KBR options granted in each year is based upon a blended rate that uses the historical and implied volatility of common stock for KBR. The expected term of KBR options granted was based on KBR's historical experience. The estimated dividend yield was based upon KBR’s annualized dividend rate divided by the market price of KBR’s stock on the option grant date. The risk-free interest rate was based upon the yield of U.S. government issued treasury bills or notes on the option grant date. We amortize the fair value of the stock options over the vesting period on a straight-line basis. Options are granted from shares authorized by our Board of Directors. There were no stock options granted in fiscal 2025, fiscal 2024 or fiscal 2023.
As of January 2, 2026, there were no options outstanding and exercisable. During fiscal 2025, 28,298 options were exercised with a weighted average exercise price of $16.05. As of January 2, 2026, there was no unrecognized compensation cost, net of estimated forfeitures, related to non-vested KBR stock options. There was no stock option compensation expense in fiscal 2025, fiscal 2024 and fiscal 2023.

KBR Restricted stock

Restricted shares issued under the KBR Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically over a period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and ratably charged to income over the period during which the restrictions lapse on a straight-line basis.

The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during fiscal 2025 under the KBR Stock Plan. 
Restricted stock activity summaryNumber of SharesWeighted Average Grant-Date Fair Value per Share
Nonvested shares at January 3, 2025527,729 $54.46 
Granted528,046 47.65 
Vested(275,948)50.19 
Forfeited(68,147)53.14 
Nonvested shares at January 2, 2026711,680 $51.29 

The weighted average grant-date fair value per share of restricted KBR shares granted to employees during fiscal 2025, 2024 and 2023 was $47.65, $59.78 and $56.09, respectively. Restricted stock compensation expense was $16 million in fiscal 2025 and $15 million in each of fiscal 2024 and 2023. Total income tax benefit recognized in net income for share-based compensation arrangements during each of fiscal 2025, 2024 and 2023 was $3 million. As of January 2, 2026, there was $23 million of unrecognized compensation cost, net of estimated forfeitures, related to KBR’s non-vested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 1.72 years. The total fair value of restricted shares vested was $13 million in fiscal 2025, $23 million in fiscal 2024 and $21 million in fiscal 2023 based on the weighted-average fair value on the vesting date. The total fair value of shares vested was $14 million in fiscal 2025, $16 million in fiscal 2024 and $14 million in fiscal 2023 based on the weighted-average fair value on the date of grant.

Performance-Based Stock Awards

Under the KBR Stock Plan, a portion of the Long-term Performance Cash and Stock Awards is settled in KBR shares. These awards vest and shares are issued at the end of a three-year period. The ultimate number of shares issued could range from 0% to 200% of the original shares granted depending upon KBR's performance in relation to the Total Shareholder Return ("TSR") performance objective. Stock compensation expense for these awards was $5 million in fiscal 2025 and $6 million in each of fiscal 2024 and fiscal 2023, respectively. In fiscal 2025, 118,273 shares vested related to our performance-based stock awards. As of January 2, 2026, there was $5 million of unrecognized compensation cost related to KBR's non-vested performance-based stock awards.

KBR Cash Performance Based Award Units ("Cash Performance Awards")

Under the KBR Stock Plan, for Cash Performance Awards granted in fiscal 2025, 2024 and 2023, performance is based 50% on average TSR, as compared to the average TSR of KBR’s peers, and 50% on KBR’s Book-to-Bill for fiscal 2025, 2024 and 2023. In accordance with the provisions of ASC 718, the TSR portion for the performance award units are classified as liability awards and remeasured at the end of each reporting period at fair value until settlement. The fair value approach uses the Monte Carlo valuation method which analyzes the companies comprising KBR’s peer group, considering volatility, interest rate, stock beta and TSR through the grant date. The Book-to-Bill calculation for fiscal 2025, 2024 and 2023 is based on the Company's Book-to-Bill earned at a target level averaged over a three year period. The Book-to-Bill portion of the Cash
Performance Award is also classified as a liability award and remeasured at the end of each reporting period based on our estimate of the amount to be paid at the end of the vesting period. The cash performance award units may only be paid in cash.

Under the KBR Stock Plan, in fiscal 2025, we granted 20 million performance based award units ("Cash Performance Awards") with a three-year performance period from January 1, 2025 to December 31, 2027. In fiscal 2024, we granted 20 million Cash Performance Awards with a three-year performance period from January 1, 2024 to December 31, 2026. In fiscal 2023, we granted 19 million Cash Performance Awards with a three-year performance period from January 1, 2023 to December 31, 2025. Cash Performance Awards forfeited, net of previous plan payout, totaled 7 million units, 7 million units and 5 million units during fiscal 2025, fiscal 2024 and fiscal 2023, respectively. At January 2, 2026, the outstanding balance for Cash Performance Awards is 45 million units. Cash Performance Awards are not considered earned until required performance conditions are met. Additionally, approval by the Compensation Committee of the Board of Directors is required before earned Cash Performance Awards are paid.

Cost for the Cash Performance Awards is accrued over the requisite service period. For fiscal 2025, fiscal 2024 and fiscal 2023, we recognized $9 million, $16 million and $21 million, respectively, in expense for Cash Performance Awards. The expense associated with these Cash Performance Awards is included in cost of revenues and selling, general and administrative expense in our consolidated statements of operations. The liability for Cash Performance Awards includes $12 million recorded within accrued salaries, wages and benefits and $11 million recorded within employee compensation and benefits on our consolidated balance sheets as of January 2, 2026. The liability for Cash Performance Awards includes $17 million recorded within accrued salaries, wages and benefits and $16 million recorded within employee compensation and benefits on our consolidated balance sheets as of January 3, 2025.

KBR Employee Stock Purchase Plan ("ESPP")

Under the ESPP, eligible employees may withhold up to 10% of their earnings, subject to some limitations, to purchase shares of KBR’s common stock. Unless KBR’s Board of Directors determines otherwise, each six-month offering period commences at the beginning of February and August of each year. In fiscal 2025, employees who participated in the ESPP received a 7% discount on the stock price at the end of each period. During fiscal 2025 and fiscal 2024, our employees purchased approximately 246,000 and 156,000 shares, respectively, through the ESPP. These shares were issued from our treasury share account. Effective February 1, 2026, we suspended new share purchases under the ESPP in connection with the Planned Spin‑Off of our Mission Technology Solutions business.
v3.25.4
Income (loss) per Share and Certain Related Information
 12 Months Ended
Jan. 02, 2026
Earnings Per Share [Abstract]  
Income (loss) per Share and Certain Related Information Income (loss) per Share and Certain Related Information
Income (loss) per share

Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Diluted income (loss) per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for Convertible Debt and the treasury stock method for all other instruments.

A summary of the basic and diluted net income (loss) per share calculations is as follows:
Year ended
January 2,January 3,December 29,
Shares in millions202620252023
Net income (loss) attributable to KBR from continuing operations:
Net income (loss) from continuing operations$458 $379 $(260)
Less: Net income attributable to noncontrolling interests included in continuing operations7 5 4 
Net income (loss) attributable to KBR from continuing operations451 374 (264)
Less: Earnings allocable to participating securities1 1 — 
Basic net income (loss) attributable to KBR from continuing operations450 373 (264)
Diluted net income (loss) attributable to KBR from continuing operations$450 $373 $(264)
Net income (loss) attributable to KBR from discontinued operations:
Net income (loss) from discontinued operations, net of tax$(55)$2 $(1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Basic net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Diluted net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
  
Weighted average common shares outstanding:
Basic weighted average common shares outstanding129134135
Diluted weighted average common shares outstanding129134135
  
Net income (loss) attributable to KBR per share:
Basic earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total basic earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
Diluted earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total diluted earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
For the years ended January 2, 2026 and January 3, 2025, the diluted net income attributable to KBR per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 0.3 million and 0.2 million, respectively, related to our stock options and restricted stock awards.

Due to our net loss position for the year ended December 29, 2023, our basic net loss attributable to KBR per share and diluted net loss attributable to KBR per share are identical as the effect of all potential common shares is anti-dilutive and therefore excluded. For the year ended December 29, 2023, the diluted net loss attributable to KBR per share calculation excluded the following weighted-average potential common shares because their inclusion would have been anti-dilutive: 4.0 million related to the convertible notes that we repurchased and settled in fiscal 2023, 10.2 million related to the outstanding warrants that were terminated in fiscal 2023 and 1.4 million related to our stock options and restricted stock awards.
Shares of common stock
Shares in millionsShares
Balance at December 29, 2023181.7 
Common stock issued0.8 
Balance at January 3, 2025182.5 
Common stock issued0.4 
Balance at January 2, 2026182.9 

Shares of treasury stock
Shares and dollars in millionsSharesAmount
Balance at December 29, 202346.6 $1,279 
Treasury stock acquired, net of ESPP shares issued3.4 215 
Balance at January 3, 202550.0 1,494 
Treasury stock acquired, net of ESPP shares issued6.4 324 
Balance at January 2, 202656.4 $1,818 

Dividends

We declared dividends totaling $85 million and $80 million in fiscal 2025 and fiscal 2024, respectively. On February 19, 2026, the Board of Directors declared a dividend of $0.165 per share, which will be paid on April 15, 2026.
v3.25.4
Fair Value of Financial Instruments and Risk Management
 12 Months Ended
Jan. 02, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments and Risk Management Fair Value of Financial Instruments and Risk Management
Fair value measurements. The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.

The carrying amount of cash and cash equivalents, accounts receivable and accounts payable, as reflected in the consolidated balance sheets, approximates fair value due to the short-term maturities of these financial instruments. The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our consolidated balance sheets are provided in the following table.
January 2, 2026January 3, 2025
Dollars in millionsCarrying ValueFair ValueCarrying ValueFair Value
Liabilities (including current maturities):
Term Loan ALevel 2$989 $989 $1,006 $1,006 
Term Loan BLevel 2983 989 993 996 
Senior NotesLevel 2250 246 250 240 
RevolverLevel 2395 395 345 345 

The carrying value of the debt instruments listed above exclude debt issuance costs for the respective instrument. See Note 11. "Debt and Other Credit Facilities" for the debt issuance costs of our debt instruments and further discussion of our term loans, Senior Notes and Revolver.

The following disclosures for foreign currency risk and interest rate risk includes the fair value hierarchy levels for our assets and liabilities that are measured at fair value on a recurring basis.
Foreign currency risk. We conduct business globally in numerous currencies and are therefore exposed to foreign currency fluctuations. We may use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for speculative trading purposes. We generally utilize foreign currency exchange forwards and option contracts to hedge exposures associated with forecasted future cash flows, to hedge exposures present on our balance sheet and to mitigate certain operational exposures.

As of January 2, 2026, the gross notional value of our foreign currency exchange forwards and option contracts used to hedge balance sheet exposures was $117 million, all of which had durations of 28 days or less. The fair value of our balance sheet hedges are included in other current assets and other current liabilities on our consolidated balance sheets at January 2, 2026, and January 3, 2025. The fair values of these derivatives are considered Level 2 under ASC 820 as they are based on quoted prices directly observable in active markets.

The following table summarizes the recognized changes in fair value of our balance sheet hedges and remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our consolidated statements of operations.
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Balance Sheet Hedges - Fair Value$(2)$— $— 
Balance Sheet Position - Remeasurement(5)(3)(6)
Net$(7)$(3)$(6)

Interest rate risk. We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting a portion of our variable rate debt under our Senior Credit Facility into fixed-rate debt. During fiscal 2025, we entered into additional interest rate swap agreements to term SOFR. The effective date of the April 2025 Forward Interest Rate Swaps is August 14, 2027.

Our portfolio of interest rate swaps consists of the following:

Dollars in millionsNotional Amount at January 2, 2026*Pay Fixed Rate (Weighted Average)Receive Variable RateSettlement and Termination
March 2020 Interest Rate Swaps$400 0.89 %Term SOFRMonthly through January 2027
September 2022 Interest Rate Swaps$350 3.43 %Term SOFRMonthly through January 2027
March 2023 Interest Rate Swaps$205 3.61 %Term SOFRMonthly through January 2027
March 2023 Amortizing Interest Rate Swaps£104 3.81 %Term SONIAMonthly through November 2026
September 2024 Interest Rate Swaps$200 3.27 %Term SOFRMonthly through August 2027
April 2025 Interest Rate Swaps$270 3.39 %Term SOFRMonthly through August 2027
April 2025 Forward Interest Rate Swaps$150 3.38 %Term SOFRMonthly from August 2027 through December 2030
*Includes the April 2025 Forward Interest Rate Swaps that become effective August 14, 2027.

Our interest rate swaps are reported at fair value using Level 2 inputs. The fair value of the interest rate swaps at January 2, 2026 was a $10 million net asset, of which $11 million is included in other current assets and $1 million is included in each of other assets, other current liabilities and other liabilities. The unrealized net gain on these interest rate swaps was $10 million and is included in AOCL as of January 2, 2026. The fair value of the interest rate swaps at January 3, 2025 was a $37 million net asset, of which $19 million is included in other current assets and $18 million is included in other assets. The unrealized net gain on these interest rate swaps was $37 million and is included in AOCL as of January 3, 2025.

Sales of Receivables. From time to time, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. One such program is with MUFG Bank, Ltd. (“MUFG”) under a Master Accounts Receivable Purchase Agreement (the “RPA”), which provides the sale to MUFG of certain of our designated eligible receivables, with a significant portion of such receivables being owed by the U.S. government. During fiscal 2025, we derecognized $2,143 million of accounts receivables from the balance sheet under these agreements, of which certain receivables totaling $2,094 million were sold under the MUFG RPA. The fair value of the sold receivables approximated their
book value due to their short-term nature. The fees incurred are presented in other non-operating expense on the consolidated statements of operations.
Activity for third-party financial institutions consisted of the following:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025
Beginning balance$106 $135 
Sale of receivables2,143 3,117 
Settlement of receivables(2,184)(3,127)
Cash collected, not yet remitted— (19)
Outstanding balances sold to financial institutions$65 $106 

Other Investments. Other investments include investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our consolidated balance sheets. These investments are accounted for under the measurement alternative, provided that KBR does not have the ability to exercise significant influence or control over the investees. KBR's aggregate investment in Mura Technology ("Mura") is approximately 17%. The carrying value of our investment in Mura was $136 million and $126 million at January 2, 2026 and January 3, 2025, respectively.
v3.25.4
Discontinued Operations
 12 Months Ended
Jan. 02, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
HomeSafe, a joint venture with Tier One Relocation, informed us on June 18, 2025, that U.S. Transportation Command unexpectedly terminated HomeSafe's role in the Global Household Goods Contract. KBR owns a 72% interest in HomeSafe. The HomeSafe joint venture is a VIE that is consolidated for financial reporting purposes. As of January 2, 2026 all of HomeSafe's operations, including run-off operations, have ceased. We disposed of HomeSafe in the second quarter of fiscal 2025 and determined that this disposal met the requirements to be reported as discontinued operations under ASC Subtopic 205-20, Discontinued Operations. We classified the disposal of HomeSafe as discontinued operations because it represents a strategic shift that significantly impacted our long-term operations plan. As such, the results of HomeSafe are presented as discontinued operations in the accompanying consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows for all periods presented. HomeSafe was previously reported within our MTS business segment.
Financial Information of Discontinued Operations
The key components of net income (loss) attributable to KBR from discontinued operations for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Revenues$67 $32 $— 
Cost of revenues(83)(28)— 
Gross profit (loss)(16)4 — 
Selling, general and administrative expenses(30)(1)(1)
Loss on disposal (a)(22)— — 
Operating income (loss)(68)3 (1)
Income (loss) from discontinued operations before income taxes(68)3 (1)
Provision for income taxes13 (1)— 
Net income (loss) from discontinued operations, net of tax(55)2 (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
(a) Includes $64 million of asset impairments related to property, plant and equipment and write-offs of $30 million in other assets, offset by elimination of $72 million in other liabilities during the year ended January 2, 2026.
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's consolidated balance sheets as of January 2, 2026 and January 3, 2025:
Dollars in millionsJanuary 2, 2026January 3, 2025
Assets
Cash and cash equivalents$5 $8 
Accounts receivable, net of allowance for credit losses1 5 
Contract assets— 2 
Other current assets13 6 
Total current assets of discontinued operations$19 $21 
Property, plant, and equipment, net of accumulated depreciation$— $52 
Other assets— 26 
Total non-current assets of discontinued operations$— $78 
Liabilities
Accounts payable$8 $5 
Contract liabilities2 8 
Accrued salaries, wages and benefits1 2 
Other current liabilities8 — 
Total current liabilities of discontinued operations$19 $15 
Other liabilities$— $69 
Total non-current liabilities of discontinued operations$— $69 
Spin-off
Mission Technology Solutions Spin-off
In September 2025, we announced our intention to spin off our Mission Technology Solutions business into a separate, U.S. publicly-traded company. The Planned Spin-Off is intended to be tax-free to us and our shareholders for U.S. federal income tax purposes and targeting completion in the second half of fiscal 2026. The spin-off will be subject to final approval by our Board of Directors and other customary conditions, including receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S. Internal Revenue Service with respect to the tax treatment of the transaction for U.S. federal income tax purposes, the effectiveness of a registration statement on Form 10 filed with the SEC, satisfactory completion of financing and other regulatory approvals. Because the intended transaction is a spin-off, the Mission Technology Solutions business is not classified as held for sale and will be reported as continuing operations.
v3.25.4
Spin-off
 12 Months Ended
Jan. 02, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Spin-off Discontinued Operations
HomeSafe, a joint venture with Tier One Relocation, informed us on June 18, 2025, that U.S. Transportation Command unexpectedly terminated HomeSafe's role in the Global Household Goods Contract. KBR owns a 72% interest in HomeSafe. The HomeSafe joint venture is a VIE that is consolidated for financial reporting purposes. As of January 2, 2026 all of HomeSafe's operations, including run-off operations, have ceased. We disposed of HomeSafe in the second quarter of fiscal 2025 and determined that this disposal met the requirements to be reported as discontinued operations under ASC Subtopic 205-20, Discontinued Operations. We classified the disposal of HomeSafe as discontinued operations because it represents a strategic shift that significantly impacted our long-term operations plan. As such, the results of HomeSafe are presented as discontinued operations in the accompanying consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows for all periods presented. HomeSafe was previously reported within our MTS business segment.
Financial Information of Discontinued Operations
The key components of net income (loss) attributable to KBR from discontinued operations for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Revenues$67 $32 $— 
Cost of revenues(83)(28)— 
Gross profit (loss)(16)4 — 
Selling, general and administrative expenses(30)(1)(1)
Loss on disposal (a)(22)— — 
Operating income (loss)(68)3 (1)
Income (loss) from discontinued operations before income taxes(68)3 (1)
Provision for income taxes13 (1)— 
Net income (loss) from discontinued operations, net of tax(55)2 (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
(a) Includes $64 million of asset impairments related to property, plant and equipment and write-offs of $30 million in other assets, offset by elimination of $72 million in other liabilities during the year ended January 2, 2026.
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's consolidated balance sheets as of January 2, 2026 and January 3, 2025:
Dollars in millionsJanuary 2, 2026January 3, 2025
Assets
Cash and cash equivalents$5 $8 
Accounts receivable, net of allowance for credit losses1 5 
Contract assets— 2 
Other current assets13 6 
Total current assets of discontinued operations$19 $21 
Property, plant, and equipment, net of accumulated depreciation$— $52 
Other assets— 26 
Total non-current assets of discontinued operations$— $78 
Liabilities
Accounts payable$8 $5 
Contract liabilities2 8 
Accrued salaries, wages and benefits1 2 
Other current liabilities8 — 
Total current liabilities of discontinued operations$19 $15 
Other liabilities$— $69 
Total non-current liabilities of discontinued operations$— $69 
Spin-off
Mission Technology Solutions Spin-off
In September 2025, we announced our intention to spin off our Mission Technology Solutions business into a separate, U.S. publicly-traded company. The Planned Spin-Off is intended to be tax-free to us and our shareholders for U.S. federal income tax purposes and targeting completion in the second half of fiscal 2026. The spin-off will be subject to final approval by our Board of Directors and other customary conditions, including receipt of a favorable opinion of legal counsel and/or a private letter ruling from the U.S. Internal Revenue Service with respect to the tax treatment of the transaction for U.S. federal income tax purposes, the effectiveness of a registration statement on Form 10 filed with the SEC, satisfactory completion of financing and other regulatory approvals. Because the intended transaction is a spin-off, the Mission Technology Solutions business is not classified as held for sale and will be reported as continuing operations.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Jan. 02, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Jan. 02, 2026
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Jan. 02, 2026
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy

Cybersecurity risk is managed within the Company’s Enterprise Risk Management program. Our Enterprise Risk Management team works closely with our global Information Assurance team to continuously evaluate and address cybersecurity risks within the Enterprise Risk Management framework in alignment with our business objectives and operational needs. The Company has established a comprehensive global cybersecurity and information security framework to help safeguard the confidentiality, integrity and access of its information assets and to ensure regulatory, contractual and operational compliance. We understand the importance of preserving trust and protecting personal and other confidential and sensitive information. Our cybersecurity program includes controls designed to identify, protect against, detect, respond to and recover from cybersecurity and information security incidents.

The Company's cybersecurity and information security framework is built upon the National Institute of Standards and Technology (NIST) Cyber Security Framework and incorporates International Organization for Standardizations (ISO) 27001 standards for general information technology security controls and Sarbanes-Oxley (SOX) for assessment of internal controls. KBR's global cybersecurity risk program also integrates the following cybersecurity frameworks across our regional operations: US Defense Federal Acquisition Regulation Supplement (DFARS) which includes Cybersecurity Maturity Model Certification (CMMC) and NIST 800-171, UK Cyber Essentials and Australia's Essential Eight.

The Company utilizes policies and procedures, software, training programs and hardware solutions to protect and monitor its environment. Our Chief Information Security Officer (CISO) oversees the Company’s approach to managing cybersecurity and digital risk. Our CISO reports to the General Counsel, is supported by and collaborates with the Company's executive leadership team and regularly engages with cross-functional teams at the Company, including Digital Technology, Legal, Audit, Human Resources, Facilities and Corporate Risk. Our Chief Compliance Officer (CCO), Chief Information Officer (CIO) and CISO oversee our dedicated technology risk management, which work in partnership with our internal audit department and data privacy team to review information technology-related internal controls.

The Company provides mandatory annual security awareness education and training for all employees, new hires and contractors, conducts regular internal “phishing” testing and requires additional training for “clickers,” and publishes periodic tips to inform our user population of cyber best practices, any emerging external or internal threats and data privacy requirements applicable in the jurisdictions in which we operate.

We maintain a robust Cybersecurity Incident Response Plan, which provides a framework for handling cybersecurity incidents based on the severity of the incident and facilitates cross-functional coordination across the Company, and have established a global Security Operations Center to support enterprise visibility to cyber incidents in real time. We update our Cybersecurity Incident Response Plan on a regular basis, and regularly measure our security posture and resilience through risk assessments, penetration testing, vulnerability scanning and attack simulation. The Company also conducts additional cybersecurity tabletop exercises using independent moderators with respect to breach and other problematic information security scenarios for executive management and employees, as well as our board of directors, when appropriate.

We also engage with a range of external experts to assess and report on the effectiveness of our cybersecurity and data privacy controls, compliance with international and regional cybersecurity standards and our internal incident response preparedness, as well as to help identify areas for continued focus and improvement. The Company also has a third-party risk management program that assesses the cyber-related risks from our vendors and suppliers. We also benchmark our activities and results against select peers.

Risks from Cybersecurity Threats

In the last three fiscal years, we have not experienced any material information security breach incidences and the expenses we have incurred from information security breach incidences were immaterial. We have not incurred any material penalties and settlements related to any cybersecurity breach. Other risks from cybersecurity threats have also not materially impacted our business strategy, results of operations or financial condition, and as of the date of this report, we do not reasonably believe that such risks will have a material impact on our business strategy, results of operations or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The Company's cybersecurity and information security framework is built upon the National Institute of Standards and Technology (NIST) Cyber Security Framework and incorporates International Organization for Standardizations (ISO) 27001 standards for general information technology security controls and Sarbanes-Oxley (SOX) for assessment of internal controls. KBR's global cybersecurity risk program also integrates the following cybersecurity frameworks across our regional operations: US Defense Federal Acquisition Regulation Supplement (DFARS) which includes Cybersecurity Maturity Model Certification (CMMC) and NIST 800-171, UK Cyber Essentials and Australia's Essential Eight.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Board of Directors Oversight

Our Board of Directors is committed to mitigating data privacy and cybersecurity risks. While the Board of Directors maintains ultimate responsibility for the oversight of our data privacy and cybersecurity program and risks, it has delegated certain responsibilities to our Sustainability, Technology & Cybersecurity Committee and Audit Committee. The Sustainability, Technology & Cybersecurity Committee and Audit Committee stay apprised of our data privacy and information security programs, strategy, policies, standards, architecture, processes and material risks and overseeing responses to security and data incidents. The Board of Directors receives information security and privacy awareness training, which covers, among other matters, the Board's oversight obligations and the privacy and security programs in place at the company. Our Sustainability, Technology & Cybersecurity Committee and Audit Committee regularly receive updates from our CISO and CIO on data privacy risks, security risks and any material incidents. Additionally, outside counsel advises the Board about best practices for cybersecurity oversight by the Board. Members of the Board stay apprised of the rapidly evolving cyber threat landscape through our ongoing director education programming and provide guidance to management as appropriate in order to address the effectiveness of our overall data privacy and cybersecurity program. Ten members of our Board of Directors, five of whom serve as the entire membership of the Sustainability, Technology & Cybersecurity Committee, have cybersecurity experience, and two are subject matter experts.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] While the Board of Directors maintains ultimate responsibility for the oversight of our data privacy and cybersecurity program and risks, it has delegated certain responsibilities to our Sustainability, Technology & Cybersecurity Committee and Audit Committee.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] While the Board of Directors maintains ultimate responsibility for the oversight of our data privacy and cybersecurity program and risks, it has delegated certain responsibilities to our Sustainability, Technology & Cybersecurity Committee and Audit Committee. The Sustainability, Technology & Cybersecurity Committee and Audit Committee stay apprised of our data privacy and information security programs, strategy, policies, standards, architecture, processes and material risks and overseeing responses to security and data incidents. The Board of Directors receives information security and privacy awareness training, which covers, among other matters, the Board's oversight obligations and the privacy and security programs in place at the company. Our Sustainability, Technology & Cybersecurity Committee and Audit Committee regularly receive updates from our CISO and CIO on data privacy risks, security risks and any material incidents. Additionally, outside counsel advises the Board about best practices for cybersecurity oversight by the Board. Members of the Board stay apprised of the rapidly evolving cyber threat landscape through our ongoing director education programming and provide guidance to management as appropriate in order to address the effectiveness of our overall data privacy and cybersecurity program. Ten members of our Board of Directors, five of whom serve as the entire membership of the Sustainability, Technology & Cybersecurity Committee, have cybersecurity experience, and two are subject matter experts.
Cybersecurity Risk Role of Management [Text Block]
Management's Role Managing Risk
Our CISO is responsible for the creation of the Company’s enterprise-wide cybersecurity and information security framework, including the design effectiveness of the Company’s cybersecurity controls. Our CIO is responsible for the implementation of the Company’s cybersecurity and information security framework and the day-to-day execution of our cybersecurity processes and controls. The CISO reports to the General Counsel and, in fiscal 2025, the CIO reported to the Chief Financial Officer. Effective January 3, 2026, the CIO reports to the Chief Digital & Development Officer. All cyber incidents under our existing cyber policy are reported to both the CISO and CIO, which are then communicated through their reporting structure to the General Counsel and Chief Financial Officer. The CISO and CIO routinely provide operational updates to the General Counsel and Chief Financial Officer as needed, and updates are regularly provided by the CISO and CIO to both the Sustainability, Technology & Cybersecurity Committee and Audit Committee of our Board of Directors as discussed more fully below.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our CISO is responsible for the creation of the Company’s enterprise-wide cybersecurity and information security framework, including the design effectiveness of the Company’s cybersecurity controls. Our CIO is responsible for the implementation of the Company’s cybersecurity and information security framework and the day-to-day execution of our cybersecurity processes and controls.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO brings over 15 years of experience, which includes implementing and verifying effectiveness of cybersecurity controls in high-security environments. Our CISO maintains the following internationally recognized certifications: ISC2 - Certified Information System Security Professional (CISSP) and Project Management Institute - Project Management Professional (PMP).Our CIO oversees the Company’s information technology infrastructure and implements policies and procedures issued by the CISO within the Company. Our CIO brings over 30 years of experience, garnered across a diverse range of industries and countries, which includes implementing new systems and modifying existing systems for changes in policies and procedures.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our Sustainability, Technology & Cybersecurity Committee and Audit Committee regularly receive updates from our CISO and CIO on data privacy risks, security risks and any material incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 02, 2026
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of KBR, Inc. and the subsidiaries it controls, including VIEs where it is the primary beneficiary. We account for investments over which we have significant influence, but not a controlling financial interest, using the equity method of accounting. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for further discussion of our equity investments and VIEs. All material intercompany balances and transactions are eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform with current period presentation. We have evaluated all events and transactions occurring after the balance sheet date but before the consolidated financial statements were issued and have included the appropriate disclosures.
Reporting Periods
Reporting Periods

In 2022, the Board of Directors approved a change in the fiscal year end from a calendar year ending on December 31 to a 52 – 53 week year ending on the Friday closest to December 31, effective as of the commencement of the Company's fiscal year on January 1, 2023. Fiscal 2025 ended January 2, 2026, fiscal 2024 ended January 3, 2025 and fiscal 2023 ended December 29, 2023. Fiscal 2025 included 52 weeks, fiscal 2024 included 53 weeks and fiscal 2023 included 52 weeks.
Use of Estimates
Use of Estimates

The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses for the periods covered and certain amounts disclosed in the notes to our consolidated financial statements. These estimates are based on information available through the date of the issuance of the financial statements and actual results could differ from those estimates. Areas requiring estimates and assumptions by our management include the following:

•project revenues, costs and profits on our contracts;
•award fees, costs and profits on government contracts;
•client claims and recoveries of costs from subcontractors, vendors and others;
•provisions for income taxes and related valuation allowances and tax uncertainties;
•evaluation of goodwill for impairment;
•evaluation of intangibles and long-lived assets for impairment;
•evaluation of equity method investments for impairment;
•valuation of pension obligations and pension assets;
•accruals for estimated liabilities, including litigation accruals; and
•valuation of assets and liabilities acquired in business combinations.
Cash and Cash Equivalents
Cash and Cash Equivalents
We consider highly liquid investments with an original maturity of three months or less to be cash equivalents.
Revenue Recognition
Revenue Recognition

We, and our equity method investments, recognize revenue in accordance with ASC 606. Revenue is measured based on the amount of consideration specified in a contract with a customer. Revenue is recognized when and as our performance obligations under the terms of the contract are satisfied, which occurs with the transfer of control of the goods or services to the customer. We recognize revenue on substantially all of our contracts over time, as performance obligations are satisfied, due to
the continuous transfer of control to the customer. We determine whether to recognize revenue on a gross or net basis by assessing if we control the goods or services provided by third parties before they reach the customer, acting as the principal when we do and as the agent when we only arrange for another party to provide them. Our contracts are generally accounted for as a single performance obligation and are not segmented between types of services provided. We recognize revenue on those contracts over time using the cost-to-cost method, based primarily on contract costs incurred to date compared to total estimated contract costs at completion. Contract costs include all direct materials, labor and subcontractors costs and indirect costs related to contract performance. We believe this method is the most accurate measure of contract performance because it directly measures the value of the goods and services transferred to the customer. For all other contracts we recognize revenue when services are performed which generally coincides with our ability to bill.

Contract Combination

To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires judgment and the decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts primarily because we provide a significant service of integrating a complex set of tasks and components into a single project or capability. Contracts that cover multiple phases of the product lifecycle (development, construction and maintenance & support) are typically considered to have multiple performance obligations even when they are part of a single contract.

For a limited number of contracts with multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the relative standalone selling price of each distinct good or service in the contract. In cases where we do not provide the distinct good or service on a standalone basis, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service.

Contract Types

The Company performs work under contracts that broadly consists of fixed-price, cost-reimbursable, time-and-materials or a combination of the three.

Fixed-price contracts also include unit-rate contracts. Under fixed-price contracts, we perform a defined scope of work for a specified fee to cover all costs and any profit element. Fixed-price contracts entail risk to us because they require us to predetermine the work to be performed, the project execution schedule and all the costs associated with the scope of work. Unit-rate contracts are considered fixed-price contracts with the only variable being units of work to be performed. Although fixed-price contracts involve greater risk than cost-reimbursable contracts, they also are potentially more profitable because the owner/customer pays a premium to transfer project risks to us.

Time-and-materials contracts typically provide for negotiated fixed rates for specified cost categories. The rates are designed to cover the cost of direct labor, indirect expense and fee. These contracts can also allow for reimbursement of cost of material plus a fee, if applicable. In U.S. government contracting, this type of contract is generally used when there is uncertainty of the extent or duration of the work to be performed by the contractor at the time of contract award or it is not possible to anticipate costs with any reasonable degree of confidence. With respect to time-and-materials contracts, we assume the price risk because our costs of performance may exceed negotiated hourly rates. In commercial and non-U.S. government contracting, this contract type is generally used for defined and non-defined scope contracts where there is a higher degree of uncertainty and risks as to the scope of work. These types of contracts may also provide for a guaranteed maximum price where the total cost plus the fee cannot exceed an agreed upon guaranteed maximum price or not-to-exceed provisions.

Under cost-reimbursable contracts, the price is generally variable based upon our actual allowable costs incurred for materials, equipment, reimbursable labor hours, overhead and G&A expenses. Profit on cost-reimbursable contracts may be in the form of a fixed fee or a mark-up applied to costs incurred, or a combination of the two. The fee may also be an incentive fee based on performance indicators, milestones or targets and can be based on customer discretion or in form of an award fee determined based on customer evaluation of the Company's performance against contractual criteria. Cost-reimbursable contracts may also provide for a guaranteed maximum price where the total fee plus the total cost cannot exceed an agreed upon guaranteed maximum price. Cost-reimbursable contracts are generally less risky because the owner/customer retains many of the project risks, however it requires us to use our best efforts to accomplish the scope of the work within a specified time and
budget. Cost-reimbursable contracts with the U.S. government are subject to the FAR and are competitively priced based on estimated or actual costs of providing the contractual goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Pricing for non-U.S. government agencies and commercial customers, including the types of costs that are allowable, is based on specific negotiations with each customer.

See Note 3. "Revenue" to our consolidated financial statements for further discussion of our revenue by contract type.

Contract Costs

Contract costs include all direct materials, labor and subcontractor costs and an allocation of indirect costs related to contract performance. Customer-furnished materials are included in both contract revenue and cost of revenue when management concludes that the company is acting as a principal rather than as an agent. Project mobilization costs incurred are capitalized as deferred assets and amortized on a straight-line basis over the anticipated term of the contract or a specified period of performance consistent with the transfer of control of the performance obligation to the client. These costs incurred may be to transition the services, employees and equipment to or from the customer, a prior contract or prior contractor. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client.

Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the DCAA. If the U.S. government concludes costs charged to a contract are not reimbursable under the terms of the contract or applicable procurement regulations, these costs are disallowed or, if already reimbursed, we may be required to refund the reimbursed amounts to the customer. Such conditions may also include interest and other financial penalties.

We provide limited warranties to customers for work performed under our contracts that typically extend for a limited duration following substantial completion of our work on a project. Such warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations.

Variable Consideration

In addition to the variable contract price under cost-reimbursable contracts, it is common for our contracts to contain variable consideration in the form of award fees, incentive fees, performance bonuses, liquidated damages or penalties that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or targets and can be based on customer discretion. Other contract provisions also give rise to variable consideration such as unapproved change orders and claims, and on certain contracts, index-based price adjustments. We estimate the amount of variable consideration at the most likely amount to which we expect to be entitled. Variable consideration is included in the transaction price when it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, anticipated performance and any other information (historical, current or forecasted) that is reasonably available to us.

Variable consideration associated with claims and unapproved change orders is included in the transaction price only to the extent of costs incurred. We recognize claims against vendors, subcontractors and others as a reduction in recognized costs when enforceability is established by the contract and the amounts are reasonably estimable and probable of recovery. Reductions in costs are recognized to the extent of the lesser of the amounts management expects to recover or actual costs incurred.

Contract Estimates and Modifications

Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex and subject to many variables and requires significant judgment. As a significant change in estimated total revenue and cost could affect the profitability of our contracts, we routinely review and update our contract-related estimates through a disciplined project review process in which management reviews the progress and execution of our performance obligations and the EAC. As part of this process, management reviews information including, but not limited to, outstanding contract matters, progress towards completion, program schedule and the associated changes in estimates of revenues and costs. Management must make assumptions and estimates regarding the availability and productivity of labor, the complexity of the work to be performed, the availability and cost of materials, the performance of subcontractors
and the availability and timing of funding from the customer, along with other risks inherent in performing services under all contracts where we recognize revenue over time using the cost-to-cost method.

We recognize changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. See Note 3. "Revenue" for changes in all other project-related estimates.

Contracts are often modified to account for changes in contract specifications and requirements. Most of our contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We account for contract modifications prospectively when the modification results in the promise to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the stand-alone selling price of the additional goods or services included in the modification.

Contract Assets and Liabilities

Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is used, and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized as well as deferred revenue.

Retainage, included in contract assets, represent the amounts withheld from billings by our clients pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.
The payment terms of our contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. Advance payments generally are not considered to contain a significant financing component as we expect to recognize those amounts in revenue within a year of receipt as work progresses on the related performance obligation.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses

Selling, general and administrative expenses include charges for such items as executive management, corporate business development, information technology, finance and accounting, human resources and various other functions. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in cost of revenues) or selling, general and administrative expenses in the same manner as such costs are defined in the Company’s disclosure statements under CAS.
Accounts Receivable
Accounts Receivable

Accounts receivable include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. Amounts billed and unbilled are recognized at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Unbilled amounts also include rate variances that are billable upon negotiation of final indirect rates with the DCAA.
We establish an allowance for credit losses based on the assessment of our clients' ability to pay. In addition to such allowances, there are often items in dispute or being negotiated that may require us to make an estimate as to the ultimate outcome. Past due receivable balances are written off when our internal collection efforts have been unsuccessful in collecting the amounts due.
Additionally, we sell certain receivables to unrelated third-party financial institutions under various accounts receivable monetization programs. The receivables sold under the agreements do not allow for recourse for any credit risk related to our customers if such receivables are not collected by the third-party financial institutions. The Company accounts for these receivable transfers as a sale under ASC Topic 860, Transfers and Servicing as the receivables have been legally isolated from the Company, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the consolidated balance sheets is presented net of the transferred amount.
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment are reported at cost less accumulated depreciation except for those assets that have been written down to their fair values due to impairment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. The cost of property, plant and equipment sold or otherwise disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in operating income for the respective period. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life of the improvement or the lease term.
Business Combinations
Business Combinations

We account for business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations ("ASC 805"). Under this method, the purchase consideration is measured at fair value, and the identifiable tangible and intangible assets acquired and liabilities assumed are recognized at their estimated acquisition‑date fair values, with any excess recognized as goodwill. We engage third-party appraisal firms when appropriate to assist in the fair value determination of intangible assets. Initial purchase price allocations are subject to revisions within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill is an asset representing the excess cost over the fair market value of net assets and identifiable intangibles acquired in business combinations. In accordance with ASC Topic 350, Intangibles - Goodwill and Other, goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. Our reporting units are our operating segments or components of operating segments where discrete financial information is available and segment management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on our reporting structure.

Goodwill is assessed annually for possible impairment as of the first day of our fourth quarter each fiscal year, and on an interim basis when indicators of possible impairment exist. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required.

We also have the option to proceed directly to the quantitative test. Under the quantitative impairment test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge equal to the excess would be recognized, up to a maximum amount of goodwill allocated to that reporting unit. We can resume the qualitative assessment in any subsequent period for any reporting unit.

During fiscal 2025, 2024 and 2023, management performed a qualitative impairment assessment of our reporting units, of which there were no indications that it was more likely than not that the fair value of our reporting units were less than their respective carrying values. As such, a quantitative goodwill test was not required, and no goodwill impairment was recognized in fiscal 2025, 2024 and 2023. See Note 8. “Goodwill and Intangible Assets” to our consolidated financial statements for reported goodwill in each of our segments.
We had intangible assets with net carrying values of $727 million and $763 million as of January 2, 2026 and January 3, 2025, respectively. Intangible assets with indefinite lives are not amortized but are subject to annual impairment tests or on an interim basis when indicators of potential impairment exist. An intangible asset with an indefinite life is impaired if its carrying value exceeds its fair value. During fiscal 2025, 2024 and 2023, there were no triggering events identified. Intangible assets with finite lives are amortized on a straight-line basis over the useful life of those assets, ranging from 1 year to 25 years.
Equity Method Investments
Equity Method Investments

We account for non-marketable investments using the equity method of accounting if the investment gives us the ability to exercise significant influence over, but not control, of an investee. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and our proportionate share of earnings or losses and distributions.

Equity in earnings (losses) of unconsolidated affiliates, in the consolidated statements of operations, reflects our proportionate share of the investee's net income, including any associated taxes. Our proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income (loss). In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities' undistributed earnings.
    
We evaluate our equity method investments for impairment at least annually or whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of an investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether an impairment has occurred. If the estimated fair value is less than the carrying value and management considers the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for our discussion on equity method investments.
We evaluate distributions received from our equity method investments using the nature of distribution approach. Under this approach, we evaluate the nature of activities of the investee that generated the distribution. The distributions received are either classified as a return on investment, which is presented as a component of operating activities on our consolidated statements of cash flows, or as a return of investment, which is presented as a component of investing activities on our consolidated statements of cash flows. For BRIS only, we apply the cumulative earnings approach for the cash flow classification of distributions as information is not available to evaluate the nature of the activities of the joint venture.
Other Investments
Other Investments
Other investments are investments in equity securities of privately held companies without readily determinable fair values and are included in other assets on our consolidated balance sheets. These investments are accounted for under the measurement alternative, provided that KBR does not have the ability to exercise significant influence or control over the investees. We measure the investments at cost, less any impairment, and adjust the carrying value to fair value resulting from observable transactions for identical or similar investments of the investee. If it is determined that impairment indicators exist and the carrying value is less than the fair value, we adjust the carrying value of the investment to its fair value and record the related impairment. The gains and losses on the investments are recognized in other non-operating expense on our consolidated statements of operations.
Joint Ventures and VIEs
Joint Ventures and VIEs

The majority of our joint ventures are VIEs. We account for VIEs in accordance with ASC Topic 810, Consolidation ("ASC 810"), which requires the consolidation of VIEs in which a company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. If a reporting enterprise meets these conditions, then it has a controlling financial interest and is the primary beneficiary of the VIE. Our unconsolidated VIEs are accounted for under the equity method of accounting.
We assess all newly created entities and those with which we become involved to determine whether such entities are VIEs and, if so, whether or not we are their primary beneficiary. Most of the entities we assess are incorporated or unincorporated joint ventures formed by us and our partner(s) for the purpose of executing a project or program for a customer and are generally dissolved upon completion of the project or program. Many of our long-term, commercial projects are executed through such joint ventures. Although the joint ventures in which we participate own and hold contracts with the customers, the services required by the contracts are typically performed by the joint venture partners, or by other subcontractors under subcontracts with the joint ventures. Typically, these joint ventures are funded by advances from the project owner, and accordingly, require little or no equity investment by the joint venture partners but may require subordinated financial support from the joint venture partners such as letters of credit, performance and financial guarantees or obligations to fund losses incurred by the joint venture. Other joint ventures, such as PFIs, generally require the partners to invest equity and take an ownership position in an entity that manages and operates an asset after construction is complete. The assets of joint ventures are restricted for use to the obligations of the particular joint venture and are not available for our general operations.

We perform a qualitative assessment to determine whether we are the primary beneficiary once an entity is identified as a VIE. Thereafter, we continue to re-evaluate whether we are the primary beneficiary of the VIE in accordance with ASC 810. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities. These include the terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed and the parties involved in the design of the entity. We then identify all of the variable interests held by parties involved with the VIE including, among other things, equity investments, subordinated debt financing, letters of credit, financial and performance guarantees and contracted service providers. Once we identify the variable interests, we determine those activities which are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Though infrequent, some of our assessments reveal no primary beneficiary because the power to direct the most significant activities that impact the economic performance is held equally by two or more variable interest holders who are required to provide their consent prior to the execution of their decisions. Most of the VIEs with which we are involved have relatively few variable interests and are primarily related to our equity investment, significant service contracts and other subordinated financial support. See Note 9. "Equity Method Investments and Variable Interest Entities" to our consolidated financial statements for our discussion on variable interest entities.
We may determine that we are the primary beneficiary as a result of a reconsideration event associated with an existing unconsolidated VIE. We account for the change in control under the acquisition method of accounting for business combinations in accordance with ASC 805.
Pensions
Pensions

We account for our defined benefit pension plans in accordance with ASC Topic 715, Compensation - Retirement Benefits, which requires an employer to:

•recognize on its balance sheet the funded status (measured as the difference between the fair value of plan assets and the benefit obligation) of the pension plan;
•recognize, through comprehensive income, certain changes in the funded status of a defined benefit plan in the year in which the changes occur;
•measure plan assets and benefit obligations as of the end of the employer’s fiscal year; and
•disclose additional information.

Our pension benefit obligations and expenses are calculated using actuarial models and methods. The more critical assumption and estimate used in the actuarial calculations is the discount rate for determining the current value of benefit obligations. Other assumptions and estimates used in determining benefit obligations and plan expenses include expected rate of return on plan assets, inflation rates and demographic factors such as retirement age, mortality and turnover. These assumptions and estimates are evaluated periodically (typically annually) and are updated accordingly to reflect our actual experience and expectations.

The discount rate used to determine the benefit obligations was computed using a yield curve approach that matches plan specific cash flows to a spot rate yield curve based on high quality corporate bonds. The expected long-term rate of return on assets was determined by a stochastic projection that takes into account asset allocation strategies, historical long-term performance of individual asset classes, an analysis of additional return (net of fees) generated by active management, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. Plan assets are comprised primarily of equity funds and securities, fixed income funds and securities, real estate and other funds. As we have
both domestic and international plans, these assumptions differ based on varying factors specific to each particular country, participant demographics or economic environment.

Unrecognized actuarial gains and losses are recognized using the corridor method over a period of approximately 20 years, which represents a reasonable systematic method for amortizing gains and losses for the employee group. Our unrecognized actuarial gains and losses arise from several factors, including experience and assumption changes in the obligations and the difference between expected returns and actual returns on plan assets. The difference between actual and expected returns is deferred as an unrecognized actuarial gain or loss on our consolidated statement of comprehensive income (loss) and is recognized as a decrease or an increase in future pension expense.
Income Taxes
Income Taxes

We recognize the amount of taxes payable or refundable for the year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. See Note 12. “Income Taxes” to our consolidated financial statements for our discussion on income taxes.

Income taxes are accounted for under the asset and liability method. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will not be realized. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A current tax asset or liability is recognized for the estimated taxes refundable or payable on tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
 
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. We consider the scheduled reversal of deferred tax liabilities, income available from carryback years, projected future taxable income and available tax planning strategies in making this assessment. Additionally, we use forecasts of certain tax elements such as taxable income and foreign tax credit utilization in making this assessment of realization. Given the inherent uncertainty involved with the use of such estimates and assumptions, there can be significant variation between estimated and actual results.
 
We have operations in numerous countries other than the United States. Consequently, we are subject to the jurisdiction of a significant number of taxing authorities. The income earned in these various jurisdictions is taxed on differing bases, including income actually earned, income deemed earned and revenue-based tax withholding. The final determination of our tax liabilities involves the interpretation of local tax laws, tax treaties and related authorities in each jurisdiction. Changes in the operating environment, including changes in tax law and currency/repatriation controls, could impact the determination of our tax liabilities for a tax year.
 
We recognize the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records potential interest and penalties related to unrecognized tax benefits in income tax expense.
 
Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined by tax authorities in the normal course of business. These examinations may result in assessments of additional taxes, which we work to resolve with the tax authorities and through the judicial process. Predicting the outcome of disputed assessments involves some uncertainty. Factors such as the availability of settlement procedures, willingness of tax authorities to negotiate and the operation and impartiality of judicial systems vary across the different tax jurisdictions and may significantly influence the ultimate outcome. We review the facts for each assessment, and then utilize assumptions and estimates to determine the most likely outcome and provide taxes, interest and penalties as needed based on this outcome.
Derivative Instruments
Derivative Instruments

We enter into derivative financial transactions to hedge existing or forecasted risk to changing foreign currency exchange rates and interest rate risk on variable rate debt. We do not enter into derivative transactions for speculative or trading purposes.
We recognize all derivatives at fair value on the balance sheet. Derivatives that are not designated as hedges in accordance with ASC 815, are adjusted to fair value and such changes are reflected in the results of operations. If the derivative is designated as a cash flow hedge, all changes in the fair value of derivatives are recognized in other comprehensive income (loss) and are subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. See Note 20. "Fair Value of Financial Instruments and Risk Management" to our consolidated financial statements for our discussion on derivative instruments.

Recognized gains or losses on derivatives entered into to manage project related foreign exchange risk are included in gross profit. Foreign currency gains and losses for hedges of non-project related foreign exchange risk are reported within other non-operating income (expense) on our consolidated statements of operations. Realized gains or losses on derivatives used to manage interest rate risk are included in interest expense in our consolidated statements of operations.
Concentration of Credit Risk
Concentration of Credit Risk

Financial instruments which potentially subject our company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our cash is primarily held with major banks and financial institutions throughout the world. We believe the risk of any potential loss on deposits held in these institutions is minimal.

Contracts with clients usually contain standard provisions allowing the client to curtail or terminate contracts for convenience. Upon such a termination, we are generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination and demobilization cost.

We have revenues and receivables from transactions with an external customer that amounts to 10% or more of our revenues which are generally not collateralized. We generated significant revenues from transactions with the U.S. government and U.K. government within our MTS business segment. No other customers represented 10% or more of consolidated revenues in any of the periods presented.
Noncontrolling Interest
Noncontrolling Interest

Noncontrolling interests represent the equity investments of partners in our joint ventures and other subsidiary entities that we consolidate in our financial statements.
Foreign Currency
Foreign Currency

Our reporting currency is the U.S. dollar. The functional currency of our non-U.S. subsidiaries is typically the currency of the primary environment in which they operate. Where the functional currency for a non-U.S. subsidiary is not the U.S. dollar, translation of all of the assets and liabilities (including long-term assets, such as goodwill) to U.S. dollars is based on exchange rates in effect at the balance sheet date. Translation of revenues and expenses to U.S. dollars is based on the average rate during the period and shareholders’ equity accounts are translated at historical rates. Translation gains or losses, net of income tax effects, are reported in accumulated other comprehensive loss on our consolidated balance sheets.
Transaction gains and losses that arise from foreign currency exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in income each reporting period when these transactions are either settled or remeasured. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in accumulated other comprehensive loss on our consolidated balance sheets.
Share-based Compensation
Share-based Compensation
We account for share-based payments, including grants of employee stock options, restricted stock-based awards and performance cash units, in accordance with ASC Topic 718, Compensation-Stock Compensation ("ASC 718"), which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in our consolidated statements of operations based on their fair values on the award date and the estimated number of shares of common stock we ultimately expect to vest. We recognize share-based compensation expense on a straight-line basis over the service period of the award, which is no greater than 3 years. If an award is modified after the grant date, incremental compensation cost is recognized immediately as of the modification. The benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefits) are classified as additional paid-in-capital and cash retained as a result of these excess tax benefits is presented in the statements of cash flows as financing cash inflows.
Commitments and Contingencies
Commitments and Contingencies

We record liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
Recently Adopted Accounting Standards and Recent Accounting Pronouncements
Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. We adopted this standard effective for our 2025 fiscal year on a prospective basis. Refer to Note 12. "Income Taxes" for additional information.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of additional information about certain income statement expense categories. ASU 2024-03 will be effective for our 2027 fiscal year ending December 31, 2027. Early adoption is permitted and the amendments can be applied on a prospective or retrospective basis. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. Under the new standard, cost capitalization should only commence when an entity has committed to funding a software project and it is probable the project will be completed and the software will be used for its intended function. The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Entities may apply the guidance using a prospective, retrospective or modified transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We are currently determining the preferred transition approach and assessing the impact of the ASU on our disclosures and financial statements, including the timing of its adoption.
v3.25.4
Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 02, 2026
Accounting Policies [Abstract]  
Schedule of Revenues and Accounts Receivable Contracts with U.S. and U.K. Governmental Agencies
The following table summarizes our revenues and accounts receivable for contracts with U.S. and U.K. government agencies for which we are the prime contractor, as well as for contracts in which we are a subcontractor and the ultimate customer is a U.S. or U.K. government agency, respectively.
Revenues and percentage of consolidated revenues from major customers:
 
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
U.S. government$4,427 57 %$4,350 56 %$4,000 58 %
U.K. government$663 9 %$674 9 %$634 9 %
  
Accounts receivable and percentage of consolidated accounts receivable from major customers:
Dollars in millionsJanuary 2, 2026January 3, 2025
U.S. government$512 47 %$521 49 %
U.K. government$76 7 %$67 6 %
Schedule of Other Current Assets The components of other current assets on our consolidated balance sheets as of January 2, 2026 and January 3, 2025 are presented below: 
Dollars in millionsJanuary 2, 2026January 3, 2025
Prepaid expenses$69 $76 
Value-added tax receivable43 36 
Advances to subcontractors14 6 
Other miscellaneous assets40 55 
Total other current assets$166 $173 
Schedule of Components of Other Current Liabilities The components of other current liabilities on our consolidated balance sheets as of January 2, 2026 and January 3, 2025 are presented below:
Dollars in millionsJanuary 2, 2026January 3, 2025
Operating lease liabilities$56 $58 
Value-added tax payable34 46 
Dividend payable21 20 
Other miscellaneous liabilities124 156 
Total other current liabilities$235 $280 
v3.25.4
Business Segment Information (Tables)
 12 Months Ended
Jan. 02, 2026
Segment Reporting [Abstract]  
Schedule of Operations by Reportable Segment Information on each of our business segments and reconciliation to net income (loss) attributable to KBR from continuing operations within our consolidated statements of operations is presented in the tables below.
Operations by Reportable Segment
Year ended January 2, 2026
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,581 $2,205 $— $7,786 
Cost of revenues(4,860)(1,776)— (6,636)
Gross profit721 429 — 1,150 
Equity in earnings of unconsolidated affiliates33 177 — 210 
Selling, general and administrative expenses(293)(127)(158)(578)
Other2 (2)(4)(4)
Operating income (loss)463 477 (162)778 
Interest expense— — (158)(158)
Other non-operating income (expense)(6)2 (2)(6)
Income (loss) from continuing operations before income taxes457 479 (322)614 
Provision for income taxes— — (156)(156)
Net income (loss) from continuing operations457 479 (478)458 
Less: Net income attributable to noncontrolling interests included in continuing operations— 7 — 7 
Net income (loss) attributable to KBR from continuing operations$457 $472 $(478)$451 
Supplemental Disclosures:
Depreciation and amortization$115 $27 $27 $169 
Purchases of property, plant, and equipment$(28)$(4)$(10)$(42)
Total assets as of January 2, 2026$4,432 $1,184 $968 $6,584 
Year ended January 3, 2025
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,555 $2,155 $— $7,710 
Cost of revenues(4,887)(1,724)— (6,611)
Gross profit668 431 — 1,099 
Equity in earnings of unconsolidated affiliates32 75 — 107 
Selling, general and administrative expenses(285)(98)(160)(543)
Other— (3)(1)(4)
Operating income (loss)415 405 (161)659 
Interest expense— — (144)(144)
Other non-operating income (expense)— 1 (8)(7)
Income (loss) from continuing operations before income taxes415 406 (313)508 
Provision for income taxes— — (129)(129)
Net income (loss) from continuing operations415 406 (442)379 
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations(1)6 — 5 
Net income (loss) attributable to KBR from continuing operations$416 $400 $(442)$374 
Supplemental Disclosures:
Depreciation and amortization$99 $27 $30 $156 
Purchases of property, plant, and equipment$(33)$(7)$(12)$(52)
Total assets as of January 3, 2025$4,534 $1,182 $947 $6,663 
Year ended December 29, 2023
Dollars in millionsMTSSTSCorporateTotal
Revenues$5,119 $1,837 $— $6,956 
Cost of revenues(4,518)(1,461)— (5,979)
Gross profit601 376 — 977 
Equity in earnings of unconsolidated affiliates33 81 — 114 
Selling, general and administrative expenses(234)(98)(155)(487)
Legal settlement of legacy matter(144)— — (144)
Other— (5)(6)(11)
Operating income (loss)256 354 (161)449 
Interest expense— — (115)(115)
Charges associated with Convertible Notes— — (494)(494)
Other non-operating income (expense)2 2 (9)(5)
Income (loss) from continuing operations before income taxes258 356 (779)(165)
Provision for income taxes— — (95)(95)
Net income (loss) from continuing operations258 356 (874)(260)
Less: Net income attributable to noncontrolling interests included in continuing operations— 4 — 4 
Net income (loss) attributable to KBR from continuing operations$258 $352 $(874)$(264)
Supplemental Disclosures:
Depreciation and amortization$90 $25 $26 $141 
Purchases of property, plant, and equipment$(25)$(15)$(22)$(62)
Schedule of Selected Geographic Information
Long-lived assets by country are determined based on the location of tangible assets.

Dollars in millionsJanuary 2, 2026January 3, 2025
Property, plant & equipment, net:
United States$124 $129 
United Kingdom34 35 
Other74 73 
Total$232 $237 
v3.25.4
Revenue (Tables)
 12 Months Ended
Jan. 02, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
Revenue by business unit and reportable segment was as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Mission Technology Solutions
Science & Space$1,126 $1,188 $1,127 
Defense & Intel3,178 2,887 2,497 
Readiness & Sustainment1,277 1,480 1,495 
Total Mission Technology Solutions$5,581 $5,555 $5,119 
Sustainable Technology Solutions$2,205 $2,155 $1,837 
Total revenue$7,786 $7,710 $6,956 

Revenue by customer type was as follows:
Year ended
January 2, 2026January 3, 2025December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
U.S. Government Defense and Intelligence Clients$3,370 $— $3,370 $3,292 $— $3,292 $3,039 $— $3,039 
U.S. Government Federal Civilian Clients1,057 — 1,057 1,112 — 1,112 1,052 — 1,052 
International Government Clients905 — 905 891 — 891 791 — 791 
Commercial and Infrastructure Clients249 2,205 2,454 260 2,155 2,415 237 1,837 2,074 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 
Revenue by geographic destination was as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Total by Countries/RegionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
United States$3,772 $472 $4,244 $3,503 $542 $4,045 $3,096 $521 $3,617 
Europe1,313 271 1,584 1,595 299 1,894 1,569 247 1,816 
Middle East123 667 790 110 621 731 105 423 528 
Australia219 329 548 202 324 526 204 292 496 
Africa77 176 253 70 131 201 70 106 176 
Asia20 122 142 18 134 152 17 152 169 
Other countries57 168 225 57 104 161 58 96 154 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 
Revenue by contract type was as follows:    
Year ended January 2, 2026Year ended January 3, 2025Year ended December 29, 2023
Dollars in millionsMTSSTSTotalMTSSTSTotalMTSSTSTotal
Cost-Reimbursable$3,305 $— $3,305 $3,507 $— $3,507 $3,287 $— $3,287 
Time-and-Materials938 1,373 2,311 892 1,362 2,254 846 1,166 2,012 
Fixed Price1,338 832 2,170 1,156 793 1,949 986 671 1,657 
Total revenue$5,581 $2,205 $7,786 $5,555 $2,155 $7,710 $5,119 $1,837 $6,956 
Schedule of Accounts Receivable
Dollars in millionsJanuary 2, 2026January 3, 2025
Unbilled$520 $525 
Trade & other566 541 
Accounts receivable, net$1,086 $1,066 
v3.25.4
Cash and Cash Equivalents (Tables)
 12 Months Ended
Jan. 02, 2026
Cash and Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The components of our cash and cash equivalents balance are as follows:
January 2, 2026
Dollars in millionsInternational (a)Domestic (b)Total
Cash and cash equivalents$226 $199 $425 
Short-term investments (c)12 11 23 
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d)52 — 52 
Total$290 $210 $500 
January 3, 2025
Dollars in millionsInternational (a)Domestic (b)Total
Cash and cash equivalents$199 $14 $213 
Short-term investments (c)8 10 18 
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities (d)110 1 111 
Total$317 $25 $342 
(a)Includes deposits held by non-U.S. entities with operating accounts that constitute offshore cash for tax purposes.
(b)Includes U.S. dollar and foreign currency deposits held in U.S. entities with operating accounts that constitute onshore cash for tax purposes but may reside either in the U.S. or in a foreign country. Includes cash and cash equivalents held by our wholly owned captive insurance company of $15 million and $12 million as of January 2, 2026 and January 3, 2025, respectively, which is generally not available to KBR to support its other operations.
(c)Includes time deposits, money market funds and other highly liquid short-term investments.
(d)Includes short-term investments held by Aspire Defence subcontracting entities for $11 million and $83 million as of January 2, 2026 and January 3, 2025, respectively. In fiscal 2025 a contractual repayment was made by the Aspire Defence subcontracting entities.
v3.25.4
Unapproved Change Orders and Claims Against Clients (Tables)
 12 Months Ended
Jan. 02, 2026
Contractors [Abstract]  
Schedule of Unapproved Change Orders and Claims
The amounts of unapproved change orders and claims against clients included in determining the profit or loss on contracts that has been recorded to date are as follows:
Dollars in millionsFiscal 2025Fiscal 2024
Amounts included in project estimates-at-completion at beginning of fiscal year$104 $74 
Net increase in project estimates67 57 
Resolution of claim— (27)
     Approved change orders(146)— 
Amounts included in project-related estimates-at-completion at end of fiscal year$25 $104 
Amounts recognized over time based on progress $13 $100 
v3.25.4
Property, Plant and Equipment (Tables)
 12 Months Ended
Jan. 02, 2026
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
The components of our property, plant and equipment balance are as follows:
Dollars in millionsEstimated Useful Lives in YearsJanuary 2, 2026January 3, 2025
LandN/A$5 $5 
Buildings and property improvements
1-35
179 165 
Equipment and other
1-25
554 541 
Total$738 $711 
Less accumulated depreciation(506)(474)
Net property, plant and equipment$232 $237 
v3.25.4
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jan. 02, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill by Reportable Segments
The changes in the carrying amount of goodwill in each of our reportable segments for the years ended January 2, 2026 and January 3, 2025 were as follows:
Dollars in millionsMTSSTSTotal
Balance as of December 29, 2023$1,921 $188 $2,109 
Goodwill acquired during the period (Note 4)531 — 531 
Foreign currency translation(9)(1)(10)
Balance as of January 3, 2025$2,443 $187 $2,630 
Goodwill acquired and adjusted during the period (Note 4)14 — 14 
Foreign currency translation30 3 33 
Balance as of January 2, 2026$2,487 $190 $2,677 
Schedule of Cost and Accumulated Amortization of Intangible Assets The cost and accumulated amortization of our intangible assets were as follows:
January 2, 2026
Dollars in millionsWeighted Average Remaining Useful LivesIntangible Assets, GrossAccumulated AmortizationIntangible Assets, Net
Trademarks/trade namesIndefinite$50 $— $50 
Customer relationships11758 (266)492 
Developed technologies1583 (48)35 
Contract backlog15314 (173)141 
Other1023 (14)9 
Total intangible assets$1,228 $(501)$727 
January 3, 2025
Dollars in millionsWeighted Average Remaining Useful LivesIntangible Assets, GrossAccumulated AmortizationIntangible Assets, Net
Trademarks/trade namesIndefinite$50 $— $50 
Customer relationships13740 (219)521 
Developed technologies1682 (45)37 
Contract backlog15297 (151)146 
Other1021 (12)9 
Total intangible assets$1,190 $(427)$763 
Schedule of Amortization Expense of Intangible Assets
Our intangibles amortization expense is presented below:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Intangibles amortization expense$64 $52 $45 
Schedule of Expected Amortization Expense of Intangibles
Our expected intangibles amortization expense for the next five fiscal years is presented below:
Dollars in millionsExpected future intangibles amortization expense
2026$58 
2027$57 
2028$57 
2029$57 
2030$57 
Beyond 2030$391 
v3.25.4
Equity Method Investments and Variable Interest Entities (Tables)
 12 Months Ended
Jan. 02, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity in Earnings of Unconsolidated Affiliates
The following table presents a rollforward of our equity in and advances to unconsolidated affiliates:
Dollars in millionsJanuary 2, 2026January 3, 2025
Balance at beginning of fiscal year$192 $206 
Equity in earnings of unconsolidated affiliates210 107 
Distributions of earnings of unconsolidated affiliates (a)(165)(202)
Payments from unconsolidated affiliates, net(9)(9)
Return of equity method investments, net (b)(82)(36)
Foreign currency translation adjustments4 (2)
Other (c)(43)128 
Balance at end of fiscal year$107 $192 
(a)In the normal course of business, our joint ventures will declare a distribution in the current quarter that is not paid until the subsequent quarter. As such, the distributions declared during the current quarter may not agree to the distributions of earnings from unconsolidated affiliates on our consolidated statements of cash flows. Joint ventures within our STS segment declared a distribution of earnings of $34 million in the fourth quarter of fiscal 2025 that was not received by KBR until fiscal 2026. A joint venture within our STS segment declared a distribution of earnings of $39 million in the fourth quarter of fiscal 2024 that was not received by KBR until fiscal 2025.
(b)During fiscal 2025, we received a return of investment from BRIS of approximately $82 million. On October 6, 2025, our joint venture partner in BRIS sold its ownership interest to a third party. Prior to the closing of this sale, funds were distributed by BRIS during fiscal 2025 to return capital to its owners. Of the funds distributed, KBR received $79 million which has been reflected as a "return of equity method investment, net" within the investing section of our consolidated statements of cash flows. During fiscal 2024, we received a return of investment from JKC of approximately $36 million related to our proportionate share of a tax refund.
(c)During fiscal 2025, Other included a reduction to the net liability position of $43 million related to a joint venture within our STS business segment. During fiscal 2024, Other included the reclassification of the net liability position of $128 million related to joint ventures within our STS business segment.
Schedule of Consolidated Summarized Financial Information
Summarized financial information for all jointly owned operations including VIEs that are accounted for using the equity method of accounting is as follows:

Balance Sheets
Dollars in millionsJanuary 2, 2026January 3, 2025
Current assets$1,624 $3,142 
Noncurrent assets1,475 1,473 
Total assets$3,099 $4,615 
Current liabilities$1,493 $3,173 
Noncurrent liabilities1,874 1,628 
Total liabilities$3,367 $4,801 

Statements of Operations
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Revenues$4,737 $8,657 $5,873 
Operating income$453 $217 $264 
Net income$443 $221 $242 
The following table summarizes the total assets and total liabilities recorded on our consolidated balance sheets related to our unconsolidated VIEs in which we have a significant variable interest but are not the primary beneficiary.
January 2, 2026
Dollars in millionsTotal AssetsTotal Liabilities
Affinity joint venture (U.K. MFTS project)$7 $1 
Aspire Defence Limited$94 $9 
JKC joint venture (Ichthys LNG project)$— $81 
Plaquemines LNG project$— $35 
January 3, 2025
Dollars in millionsTotal AssetsTotal Liabilities
Affinity joint venture (U.K. MFTS project)$6 $1 
Aspire Defence Limited$84 $7 
JKC joint venture (Ichthys LNG project)$— $80 
Plaquemines LNG project$48 $94 
Schedule of Services Provided to Unconsolidated JV's
Amounts included in our consolidated balance sheets related to services we provided to our unconsolidated joint ventures as of January 2, 2026 and January 3, 2025 are as follows:

Dollars in millionsJanuary 2, 2026January 3, 2025
Accounts receivable, net of allowance for credit losses (a)$59 $96 
Contract liabilities (a)$41 $68 
(a)Accounts receivable and contract liabilities primarily related to the Aspire Defence Limited joint venture within our MTS business segment and a joint venture within our STS business segment.
Schedule of Significant VIEs The following is a summary of the significant VIE where we are the primary beneficiary:
January 2, 2026
Dollars in millionsTotal AssetsTotal Liabilities
Aspire Defence subcontracting entities (Aspire Defence project)$338 $149 
January 3, 2025
Dollars in millionsTotal AssetsTotal Liabilities
Aspire Defence subcontracting entities (Aspire Defence project)$372 $197 
v3.25.4
Retirement Benefits (Tables)
 12 Months Ended
Jan. 02, 2026
Retirement Benefits [Abstract]  
Schedule of Change in Projected Benefit Obligations Plan assets, expenses and obligations for our defined benefit pension plans are presented in the following tables.
OverfundedUnderfunded
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025
Change in projected benefit obligations:
Projected benefit obligations at beginning of period$47 $1,111 $8 $4 
Service cost— 1 — — 
Interest cost2 63 1 — 
Foreign currency exchange rate changes— 84 — — 
Actuarial (gain) loss(1)
1 (12)— — 
Benefits paid(4)(70)(1)— 
Other— (1)— — 
Projected benefit obligations at end of period$46 $1,176 $8 $4 
Change in plan assets:
Fair value of plan assets at beginning of period$46 $1,193 $8 $— 
Actual return on plan assets6 48 1 — 
Employer contributions2 1 — — 
Foreign currency exchange rate changes— 91 — — 
Benefits paid(4)(70)(1)— 
Other(1)(1)— — 
Fair value of plan assets at end of period$49 $1,262 $8 $— 
Funded status$3 $86 $— $(4)
(1) Actuarial (gains) losses primarily driven by inflation.
OverfundedUnderfunded
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2024
Change in projected benefit obligations:
Projected benefit obligations at beginning of period$— $1,301 $58 $4 
Service cost— 1 — — 
Interest cost— 61 3 — 
Foreign currency exchange rate changes— (23)— — 
Actuarial gain(1)
— (162)(1)— 
Benefits paid— (67)(5)— 
Projected benefit obligations at end of period$— $1,111 $55 $4 
Change in plan assets:
Fair value of plan assets at beginning of period$— $1,295 $53 $— 
Actual return on plan assets— (72)5 — 
Employer contributions— 61 1 — 
Foreign currency exchange rate changes— (24)— — 
Benefits paid— (67)(5)— 
Fair value of plan assets at end of period$— $1,193 $54 $— 
Funded status$— $82 $(1)$(4)
(1) Actuarial gains primarily driven by change in discount rates.
Schedule of Amounts Recognized on Consolidated Balance Sheet
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024
Amounts recognized on the consolidated balance sheets
Pension assets$3 $86 $— $82 
Other liabilities$— $(4)$(1)$(4)
Schedule of Components of Net Periodic Benefit Cost
Net periodic pension cost for our defined benefit plans included the following components:
United StatesInternationalUnited StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024Fiscal 2023
Components of net periodic benefit cost
Service cost$— $1 $— $1 $— $1 
Interest cost3 63 3 61 3 61 
Expected return on plan assets(3)(112)(3)(113)(3)(102)
Prior service cost amortization— 1 — 1 — 1 
Recognized actuarial loss1 4 1 3 1 — 
Net periodic (benefit) cost$1 $(43)$1 $(47)$1 $(39)
Schedule of Accumulated Other Comprehensive Loss
The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at January 2, 2026 and January 3, 2025, net of tax were as follows:
United StatesInternationalUnited StatesInternational
Dollars in millionsFiscal 2025Fiscal 2024
Unrecognized actuarial loss, net of tax of $6 and $238, $6 and $226, respectively
$10 $678 $12 $643 
Total in accumulated other comprehensive loss$10 $678 $12 $643 
Schedule of Weighted-Average Assumptions
The weighted-average assumptions used to determine net periodic benefit cost were as follows:
United StatesInternationalUnited StatesInternationalUnited StatesInternational
Fiscal 2025Fiscal 2024Fiscal 2023
Discount rate5.32 %5.54 %4.70 %4.79 %4.91 %5.00 %
Expected return on plan assets6.64 %6.80 %6.64 %6.70 %6.63 %5.92 %
The weighted-average assumptions used to determine benefit obligations at the measurement date were as follows:
United StatesInternationalUnited StatesInternational
Fiscal 2025Fiscal 2024
Discount rate4.97 %5.60 %5.32 %5.54 %
Schedule of Allocation of Plan Assets
The target asset allocation for our U.S. and International plans for fiscal 2026 is as follows:
Fiscal 2026 Targeted
United StatesInternational
Equity funds and securities52 %37 %
Fixed income funds and securities39 %46 %
Real estate funds1 %7 %
Other 8 %10 %
Total100 %100 %

The range of targeted asset allocations for our International plans for fiscal 2026 and fiscal 2025, by asset class, are as follows:
International PlansFiscal 2026 Targeted Percentage RangeFiscal 2025 Targeted Percentage Range
Minimum MaximumMinimumMaximum
Equity funds and securities29 %45 %36 %55 %
Fixed income funds and securities37 %55 %28 %42 %
Real estate funds6 %8 %6 %10 %
Other8 %12 %10 %15 %

The range of targeted asset allocations for our U.S. plans for fiscal 2026 and fiscal 2025, by asset class, are as follows:
Domestic PlansFiscal 2026 Targeted Percentage RangeFiscal 2025 Targeted Percentage Range
MinimumMaximumMinimumMaximum
Equity funds and securities41 %62 %41 %62 %
Fixed income funds and securities31 %47 %31 %47 %
Real estate funds1 %1 %1 %1 %
Other7 %10 %7 %10 %
A summary of total investments for KBR’s defined benefit pension plan assets measured at fair value is presented below.
Fair Value Measurements at Reporting Date
Dollars in millionsTotalLevel 1Level 2Level 3
Asset Category at January 2, 2026
United States plan assets
Investments measured at net asset value (a)$57 $— $— $— 
Total United States plan assets$57 $— $— $— 
International plan assets
Equities$413 $— $356 $57 
Fixed income606 — 606 — 
Real estate2 — — 2 
Cash and cash equivalents99 99 — — 
Other56 — — 56 
Investments measured at net asset value (a)86 — — — 
Total international plan assets$1,262 $99 $962 $115 
Total plan assets at January 2, 2026$1,319 $99 $962 $115 
Fair Value Measurements at Reporting Date
Dollars in millionsTotalLevel 1Level 2Level 3
Asset Category at January 3, 2025
United States plan assets
Investments measured at net asset value (a)$54 $— $— $— 
Total United States plan assets$54 $— $— $— 
International plan assets
Equities$433 $— $379 $54 
Fixed income564 — 564 — 
Real estate1 — — 1 
Cash and cash equivalents39 39 — — 
Other56 — — 56 
Investments measured at net asset value (a)100 — — — 
Total international plan assets$1,193 $39 $943 $111 
Total plan assets at January 3, 2025$1,247 $39 $943 $111 
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
Schedule of Fair Value Measurement of Plan Assets
The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed each year due to the following:
Dollars in millionsTotalEquitiesFixed IncomeReal EstateOther
International plan assets
Balance as of December 29, 2023$114 $51 $— $1 $62 
Return on assets held at end of year6 8 — — (2)
Purchases, sales and settlements, net(7)(4)— — (3)
Foreign exchange impact(2)(1)— — (1)
Balance as of January 3, 2025$111 $54 $— $1 $56 
Return on assets held at end of year(6)2 1 — (9)
Return on assets sold during the year— (1)(1)— 2 
Purchases, sales and settlements, net1 (2)— — 3 
Foreign exchange impact9 4 — 1 4 
Balance as of January 2, 2026$115 $57 $— $2 $56 
Schedule of Expected Benefit Payments
Benefit payments. The following table presents the expected benefit payments over the next 10 years.
Pension Benefits
Dollars in millionsUnited StatesInternational
Fiscal 2026$6 $73 
Fiscal 2027$5 $75 
Fiscal 2028$5 $78 
Fiscal 2029$5 $80 
Fiscal 2030$5 $81 
Fiscals 2031-2035$20 $417 
v3.25.4
Debt and Other Credit Facilities (Tables)
 12 Months Ended
Jan. 02, 2026
Debt Disclosure [Abstract]  
Schedule of Outstanding Debt
Our outstanding debt consisted of the following at the dates indicated:
Dollars in millionsJanuary 2, 2026January 3, 2025
Term Loan A$989 $1,006 
Term Loan B983 993 
Senior Notes250 250 
Revolver395 345 
Unamortized debt issuance costs and discounts(21)(25)
Total debt2,596 2,569 
Less: current portion49 36 
Total long-term debt, net of current portion$2,547 $2,533 
The details of the applicable margins and commitment fees under the Revolver, Term Loan A-1 and Term Loan A-3 are based on our consolidated net leverage ratio as follows:
Revolver, Term Loan A-1 and Term Loan A-3
Consolidated Net Leverage RatioReference Rate (a)Base RateCommitment Fee
Greater than or equal to 4.25 to 1.002.25 %1.25 %0.33 %
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.002.00 %1.00 %0.30 %
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.001.75 %0.75 %0.28 %
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.001.50 %0.50 %0.25 %
Less than 1.25 to 1.001.25 %0.25 %0.23 %
(a)The reference rate for the Revolver and the U.S. dollar tranches of Term Loan A-1 is SOFR plus 10 basis points Credit Spread Adjustment and the British pound sterling tranche of Term Loan A-3 is SONIA plus 12 basis points Credit Spread Adjustment.
The details of the applicable margins and commitment fees under Term Loan A-2 are based on our consolidated net leverage ratio as follows:
Term Loan A-2
Consolidated Net Leverage RatioReference Rate (a)Base RateCommitment Fee
Greater than or equal to 4.25 to 1.002.13 %1.13 %0.33 %
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.001.88 %0.88 %0.30 %
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.001.63 %0.63 %0.28 %
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.001.38 %0.38 %0.25 %
Less than 1.25 to 1.001.13 %0.13 %0.23 %
(a)The reference rate for Term Loan A-2 is SOFR.
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 02, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Tax
The components of income (loss) from continuing operations before income taxes and noncontrolling interests were as follows:

Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
United States$270 $99 $(464)
Foreign:
United Kingdom150 161 133 
Australia30 45 49 
Middle East64 61 45 
Asia55 100 48 
Other45 42 24 
Subtotal344 409 299 
Total$614 $508 $(165)
Schedule of Taxes on Financial Statements
The total income taxes included in the statements of operations and in shareholders' equity were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Provision for income taxes$(156)$(129)$(95)
Shareholders' equity, pension and post-retirement benefits11 4 25 
Shareholders' equity, changes in fair value of derivatives5 — 3 
Total income taxes$(140)$(125)$(67)
Schedule of Components of Provision for Income Taxes
The components of the provision for income taxes were as follows:
Dollars in millionsCurrentDeferredTotal
Year ended January 2, 2026
Federal$(1)$(55)$(56)
Foreign(69)(14)(83)
State and other(26)9 (17)
Provision for income taxes$(96)$(60)$(156)
Year ended January 3, 2025
Federal$(7)$6 $(1)
Foreign(95)(10)(105)
State and other(25)2 (23)
Provision for income taxes$(127)$(2)$(129)
Year ended December 29, 2023
Federal$— $(3)$(3)
Foreign(65)(14)(79)
State and other(17)4 (13)
Provision for income taxes$(82)$(13)$(95)
Schedule of Components of Foreign Income Tax Provision
The components of total foreign income tax provision were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
United Kingdom$(32)$(37)$(32)
Australia(12)(19)(13)
Middle East(17)(18)(12)
Asia(13)(18)(8)
Other(9)(13)(14)
Foreign provision for income taxes$(83)$(105)$(79)
Schedule of Cash Paid for Income Taxes, Net of Refunds
The components of income taxes paid, net of refunds received, for the year ended January 2, 2026 were as follows:
Year ended
Dollars in millionsJanuary 2, 2026
Federal$9 
Foreign
Australia17 
India8 
Saudi Arabia5 
Singapore10 
United Kingdom5 
Other9 
State and other
Louisiana5 
Other15 
Cash paid during the period for income taxes, net of refunds$83 
Schedule of Effective Income Tax Rate Reconciliation
Our effective tax rate on income from continuing operations for the year ended January 2, 2026 differed from the statutory U.S. federal income tax rate of 21%, presented after prospectively adopting ASU 2023-09, as a result of the following:
Year ended
January 2, 2026
Dollars in millions$%
U.S. statutory federal rate$129 21 %
Domestic federal tax effects:
Tax credits(8)(1)%
Nontaxable or nondeductible items:
Non-deductible charge-outs7 1 %
Other9 1 %
Effect of cross-border tax laws:
Global Intangible Low-Taxed Income11 2 %
Foreign-derived Intangible Income deduction(10)(2)%
Subpart F deemed dividend6 1 %
Other(2)— %
Changes in valuation allowances(3)— %
State and local income taxes, net of federal benefit (a)
14 2 %
Foreign tax effects:
Australia
Non-deductible charge-outs and release of refundable associated with a resolution18 3 %
Other6 1 %
Iraq6 1 %
Other(7)(1)%
Worldwide changes in unrecognized tax benefits(20)(4)%
Effective tax rate on income from continuing operations$156 25 %
(a)State taxes in Louisiana made up the majority (greater than 50%) of the tax effect in this category.

As previously disclosed for the years ended January 3, 2025 and December 29, 2023, prior to the adoption of ASU 2023-09, the effective tax rate on income from continuing operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following:
Year ended
January 3,December 29,
20252023
U.S. statutory federal rate, expected (benefit) provision21 %21 %
Increase (reduction) in tax rate from:
Tax impact from foreign operations2 %2 %
Noncontrolling interests and equity earnings(2)%(1)%
State and local income taxes, net of federal benefit3 %2 %
Other permanent differences, net2 %5 %
Other non-deductible expenditures2 %— %
Change in federal and foreign valuation allowance(2)%(3)%
Research and development credits, net of provision(1)%— %
Release of previously reserved position— %(2)%
Non-Deductible portion associated with legal settlement of legacy matter— %(11)%
Non-Deductible portion of Charges associated with Convertible Notes — %(70)%
Effective tax rate on income from continuing operations25 %(57)%
Schedule of Deferred Tax Assets and Liabilities
The primary components of our deferred tax assets and liabilities were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025
Deferred tax assets:
     Employee compensation and benefits$64 $63 
     Foreign tax credit carryforwards60 98 
     Loss carryforwards70 69 
Research and development and other credit carryforwards37 49 
     Insurance accruals8 8 
Lease obligation and accrued liabilities84 93 
Contract liabilities 22 23 
Capitalized research expenditures76 73 
     Other99 118 
          Total gross deferred tax assets520 594 
     Valuation allowances(124)(142)
          Net deferred tax assets396 452 
Deferred tax liabilities:
Right-of-use assets(42)(47)
     Intangible amortization(127)(131)
     Indefinite-lived intangible amortization(107)(98)
     Other(53)(50)
          Total gross deferred tax liabilities(329)(326)
Deferred income tax assets, net$67 $126 
Schedule of Valuation Allowance
The net deferred tax balance by major jurisdiction after valuation allowance as of January 2, 2026 was as follows:
Dollars in millionsGross Deferred Asset (Liability), netValuation AllowanceDeferred Asset (Liability), net
United States$224 $(95)$129 
United Kingdom(87)— (87)
Australia21 — 21 
Canada20 (19)1 
Asia3 (2)1 
Other 10 (8)2 
Total$191 $(124)$67 
Schedule of Operating Loss Carryforwards
At January 2, 2026, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows:
Dollars in millionsJanuary 2, 2026Expiration
Foreign tax credit carryforwards$60 2025-2029
Foreign net operating loss carryforwards$98 2025-2045
Foreign net operating loss carryforwards$33 Indefinite
State net operating loss carryforwards$782 Various
Research and development and other credit carryforwards$37 2025-2045
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows:
Dollars in millionsFiscal 2025Fiscal 2024Fiscal 2023
Balance at beginning of fiscal year$85 $74 $92 
Increases related to current year tax positions2 3 2 
Increases related to prior year tax positions20 — — 
Decreases related to prior year tax positions(28)(4)(2)
Increases related to tax positions from an acquisition— 15 — 
Settlements— — (16)
Lapse of statute of limitations(5)(1)(2)
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions2 (2)— 
Balance at end of fiscal year$76 $85 $74 
v3.25.4
Leases (Tables)
 12 Months Ended
Jan. 02, 2026
Leases [Abstract]  
Schedule of Leasing Activity
The components of our operating lease costs for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:

Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Operating lease cost$70 $63 $62 
Short-term lease cost145 248 215 
Total lease cost$215 $311 $277 
Additional information related to leases was as follows:
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$81 $71 $65 
Financing cash flows from finance leases$8 $11 $11 
Right-of-use assets obtained in exchange for new operating lease liabilities$29 $106 $60 
Right-of-use assets obtained in exchange for new finance lease liabilities$10 $3 $11 
Weighted-average remaining lease term - operating (in years)6 years6 years6 years
Weighted-average remaining lease term - finance (in years)2 years2 years2 years
Weighted-average discount rate - operating leases6.3 %6.4 %6.2 %
Weighted-average discount rate - finance leases6.4 %5.1 %4.2 %
Schedule of Operating Lease Maturity
The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of January 2, 2026:
Dollars in millionsOperating LeasesFinance Leases
Fiscal 2026$71 $5 
Fiscal 202763 3 
Fiscal 202858 2 
Fiscal 202951 — 
Fiscal 203036 — 
Thereafter67 — 
Total future payments346 10 
Less imputed interest(54)(1)
Present value of future lease payments292 9 
Less current portion of lease obligations(56)(5)
Noncurrent portion of lease obligations$236 $4 
Schedule of Finance Lease Maturity
The following is a maturity analysis of the future undiscounted cash flows associated with our lease liabilities as of January 2, 2026:
Dollars in millionsOperating LeasesFinance Leases
Fiscal 2026$71 $5 
Fiscal 202763 3 
Fiscal 202858 2 
Fiscal 202951 — 
Fiscal 203036 — 
Thereafter67 — 
Total future payments346 10 
Less imputed interest(54)(1)
Present value of future lease payments292 9 
Less current portion of lease obligations(56)(5)
Noncurrent portion of lease obligations$236 $4 
v3.25.4
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Jan. 02, 2026
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in AOCL, net of tax, by component
Dollars in millionsAccumulated foreign currency translation adjustmentsAccumulated pension liability adjustmentsChanges in fair value of derivativesTotal
Balance at December 29, 2023$(300)$(644)$29 $(915)
Other comprehensive income (loss) adjustments before reclassifications(20)(15)22 (13)
Amounts reclassified from AOCL— 4 (22)(18)
Net other comprehensive loss(20)(11)— (31)
Balance at January 3, 2025$(320)$(655)$29 $(946)
Other comprehensive income (loss) adjustments before reclassifications72 (37)(4)31 
Amounts reclassified from AOCL— 4 (17)(13)
Net other comprehensive income (loss)72 (33)(21)18 
Balance at January 2, 2026$(248)$(688)$8 $(928)
Schedule of Reclassification out of Accumulated Other Comprehensive Income
Reclassifications out of AOCL, net of tax, by component
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025Affected line item on the Consolidated Statements of Operations
Accumulated pension liability adjustments
Prior service cost amortization$(1)$(1)See (a) below
Recognized actuarial loss(5)(4)See (a) below
Tax benefit2 1 Provision for income taxes
Net pension and post-retirement benefits$(4)$(4)Net of tax
   
Changes in fair value for derivatives
Interest rate swap settlements$21 $28 Interest Expense
Tax expense(4)(6)Provision for income taxes
Net changes in fair value of derivatives$17 $22 Net of tax
(a)This item is included in the computation of net periodic pension cost. See Note 10. “Retirement Benefits” to our consolidated financial statements for further discussion.
v3.25.4
Share Repurchases (Tables)
 12 Months Ended
Jan. 02, 2026
Equity [Abstract]  
Schedule of Shares Repurchased
The table below presents information on our annual share repurchases activity under these programs:
Year ended January 2, 2026
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program6,529,142$49.45 $323 
Withhold to cover shares120,188$49.01 6 
Total6,649,330$49.44 $329 
Year ended January 3, 2025
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program3,316,026$61.51 $204 
Withhold to cover shares227,616$59.64 14 
Total3,543,642$61.39 $218 
Shares of treasury stock
Shares and dollars in millionsSharesAmount
Balance at December 29, 202346.6 $1,279 
Treasury stock acquired, net of ESPP shares issued3.4 215 
Balance at January 3, 202550.0 1,494 
Treasury stock acquired, net of ESPP shares issued6.4 324 
Balance at January 2, 202656.4 $1,818 
v3.25.4
Share-based Compensation and Incentive Plans (Tables)
 12 Months Ended
Jan. 02, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Vested and Unvested RSUs
The following table presents the restricted stock awards and restricted stock units granted, vested and forfeited during fiscal 2025 under the KBR Stock Plan. 
Restricted stock activity summaryNumber of SharesWeighted Average Grant-Date Fair Value per Share
Nonvested shares at January 3, 2025527,729 $54.46 
Granted528,046 47.65 
Vested(275,948)50.19 
Forfeited(68,147)53.14 
Nonvested shares at January 2, 2026711,680 $51.29 
v3.25.4
Income (loss) per Share and Certain Related Information (Tables)
 12 Months Ended
Jan. 02, 2026
Earnings Per Share [Abstract]  
Schedule Of Basic And Diluted Net Income (Loss) Per Share Calculations
A summary of the basic and diluted net income (loss) per share calculations is as follows:
Year ended
January 2,January 3,December 29,
Shares in millions202620252023
Net income (loss) attributable to KBR from continuing operations:
Net income (loss) from continuing operations$458 $379 $(260)
Less: Net income attributable to noncontrolling interests included in continuing operations7 5 4 
Net income (loss) attributable to KBR from continuing operations451 374 (264)
Less: Earnings allocable to participating securities1 1 — 
Basic net income (loss) attributable to KBR from continuing operations450 373 (264)
Diluted net income (loss) attributable to KBR from continuing operations$450 $373 $(264)
Net income (loss) attributable to KBR from discontinued operations:
Net income (loss) from discontinued operations, net of tax$(55)$2 $(1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Basic net income (loss) attributable to KBR from discontinued operations(36)1 (1)
Diluted net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
  
Weighted average common shares outstanding:
Basic weighted average common shares outstanding129134135
Diluted weighted average common shares outstanding129134135
  
Net income (loss) attributable to KBR per share:
Basic earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total basic earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
Diluted earnings (loss) per share
Continuing operations$3.49 $2.78 $(1.96)
Discontinued operations$(0.28)$0.01 $— 
Total diluted earnings (loss) per share attributable to KBR$3.21 $2.79 $(1.96)
Schedule of Shares of Common Stock
Shares of common stock
Shares in millionsShares
Balance at December 29, 2023181.7 
Common stock issued0.8 
Balance at January 3, 2025182.5 
Common stock issued0.4 
Balance at January 2, 2026182.9 
Schedule of Shares of Treasury Stock
The table below presents information on our annual share repurchases activity under these programs:
Year ended January 2, 2026
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program6,529,142$49.45 $323 
Withhold to cover shares120,188$49.01 6 
Total6,649,330$49.44 $329 
Year ended January 3, 2025
Number of SharesAverage price per shareDollars in Millions
Repurchases under the authorized share repurchase program3,316,026$61.51 $204 
Withhold to cover shares227,616$59.64 14 
Total3,543,642$61.39 $218 
Shares of treasury stock
Shares and dollars in millionsSharesAmount
Balance at December 29, 202346.6 $1,279 
Treasury stock acquired, net of ESPP shares issued3.4 215 
Balance at January 3, 202550.0 1,494 
Treasury stock acquired, net of ESPP shares issued6.4 324 
Balance at January 2, 202656.4 $1,818 
v3.25.4
Fair Value of Financial Instruments and Risk Management (Tables)
 12 Months Ended
Jan. 02, 2026
Fair Value Disclosures [Abstract]  
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our consolidated balance sheets are provided in the following table.
January 2, 2026January 3, 2025
Dollars in millionsCarrying ValueFair ValueCarrying ValueFair Value
Liabilities (including current maturities):
Term Loan ALevel 2$989 $989 $1,006 $1,006 
Term Loan BLevel 2983 989 993 996 
Senior NotesLevel 2250 246 250 240 
RevolverLevel 2395 395 345 345 
Schedule of Changes in Fair Value of Balance Sheet Hedges
The following table summarizes the recognized changes in fair value of our balance sheet hedges and remeasurement of balance sheet positions. These amounts are recognized in our consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating expense on our consolidated statements of operations.
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Balance Sheet Hedges - Fair Value$(2)$— $— 
Balance Sheet Position - Remeasurement(5)(3)(6)
Net$(7)$(3)$(6)
Schedule of Interest Rate Swaps
Our portfolio of interest rate swaps consists of the following:

Dollars in millionsNotional Amount at January 2, 2026*Pay Fixed Rate (Weighted Average)Receive Variable RateSettlement and Termination
March 2020 Interest Rate Swaps$400 0.89 %Term SOFRMonthly through January 2027
September 2022 Interest Rate Swaps$350 3.43 %Term SOFRMonthly through January 2027
March 2023 Interest Rate Swaps$205 3.61 %Term SOFRMonthly through January 2027
March 2023 Amortizing Interest Rate Swaps£104 3.81 %Term SONIAMonthly through November 2026
September 2024 Interest Rate Swaps$200 3.27 %Term SOFRMonthly through August 2027
April 2025 Interest Rate Swaps$270 3.39 %Term SOFRMonthly through August 2027
April 2025 Forward Interest Rate Swaps$150 3.38 %Term SOFRMonthly from August 2027 through December 2030
*Includes the April 2025 Forward Interest Rate Swaps that become effective August 14, 2027.
Schedule of Third-Party Financial Institutions
Activity for third-party financial institutions consisted of the following:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025
Beginning balance$106 $135 
Sale of receivables2,143 3,117 
Settlement of receivables(2,184)(3,127)
Cash collected, not yet remitted— (19)
Outstanding balances sold to financial institutions$65 $106 
v3.25.4
Discontinued Operations (Tables)
 12 Months Ended
Jan. 02, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations
The key components of net income (loss) attributable to KBR from discontinued operations for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 were as follows:
Year ended
Dollars in millionsJanuary 2, 2026January 3, 2025December 29, 2023
Revenues$67 $32 $— 
Cost of revenues(83)(28)— 
Gross profit (loss)(16)4 — 
Selling, general and administrative expenses(30)(1)(1)
Loss on disposal (a)(22)— — 
Operating income (loss)(68)3 (1)
Income (loss) from discontinued operations before income taxes(68)3 (1)
Provision for income taxes13 (1)— 
Net income (loss) from discontinued operations, net of tax(55)2 (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations(19)1 — 
Net income (loss) attributable to KBR from discontinued operations$(36)$1 $(1)
(a) Includes $64 million of asset impairments related to property, plant and equipment and write-offs of $30 million in other assets, offset by elimination of $72 million in other liabilities during the year ended January 2, 2026.
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's consolidated balance sheets as of January 2, 2026 and January 3, 2025:
Dollars in millionsJanuary 2, 2026January 3, 2025
Assets
Cash and cash equivalents$5 $8 
Accounts receivable, net of allowance for credit losses1 5 
Contract assets— 2 
Other current assets13 6 
Total current assets of discontinued operations$19 $21 
Property, plant, and equipment, net of accumulated depreciation$— $52 
Other assets— 26 
Total non-current assets of discontinued operations$— $78 
Liabilities
Accounts payable$8 $5 
Contract liabilities2 8 
Accrued salaries, wages and benefits1 2 
Other current liabilities8 — 
Total current liabilities of discontinued operations$19 $15 
Other liabilities$— $69 
Total non-current liabilities of discontinued operations$— $69 
v3.25.4
Significant Accounting Policies (Narrative) (Details) - USD ($)
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Finite-Lived Intangible Assets [Line Items]      
Goodwill impairment $ 0 $ 0 $ 0
Intangible assets $ 727,000,000 $ 763,000,000  
Period in years that unrecognized actuarial net gains (losses) are being recognized 20 years    
Period of recognition (no greater than) 3 years    
Minimum      
Finite-Lived Intangible Assets [Line Items]      
Finite lived intangible assets useful lives 1 year    
Maximum      
Finite-Lived Intangible Assets [Line Items]      
Finite lived intangible assets useful lives 25 years    
v3.25.4
Significant Accounting Policies (Schedule of Revenues and Accounts Receivable Contracts with U.S. and U.K. Governmental Agencies) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Revenue, Major Customer [Line Items]      
Accounts receivable, net $ 1,086 $ 1,066  
U.S. government | Revenue Benchmark | Customer Concentration Risk      
Revenue, Major Customer [Line Items]      
Revenues $ 4,427 $ 4,350 $ 4,000
Concentration risk, percentage 57.00% 56.00% 58.00%
U.S. government | Accounts Receivable | Customer Concentration Risk      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 47.00% 49.00%  
Accounts receivable, net $ 512 $ 521  
U.K. government | Revenue Benchmark | Customer Concentration Risk      
Revenue, Major Customer [Line Items]      
Revenues $ 663 $ 674 $ 634
Concentration risk, percentage 9.00% 9.00% 9.00%
U.K. government | Accounts Receivable | Customer Concentration Risk      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 7.00% 6.00%  
Accounts receivable, net $ 76 $ 67  
v3.25.4
Significant Accounting Policies (Schedule of Other Current Assets) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Accounting Policies [Abstract]    
Prepaid expenses $ 69 $ 76
Value-added tax receivable 43 36
Advances to subcontractors 14 6
Other miscellaneous assets 40 55
Total other current assets $ 166 $ 173
v3.25.4
Significant Accounting Policies (Schedule of Components of Other Current Liabilities) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Accounting Policies [Abstract]      
Operating lease liabilities $ 56 $ 58  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total other current liabilities Total other current liabilities  
Value-added tax payable $ 34 $ 46  
Dividend payable 21 20 $ 18
Other miscellaneous liabilities 124 156  
Total other current liabilities $ 235 $ 280  
v3.25.4
Business Segment Information (Narrative) (Details)
 12 Months Ended
Jan. 02, 2026
vertical
process_technology
segment
Segment Reporting Information [Line Items]  
Number of Reportable Segments Not Disclosed Flag segment
Core business segments, number 2
Non-core business segments, number 1
STS  
Segment Reporting Information [Line Items]  
Number of process technologies (over) | process_technology 85
Number of primary verticals | vertical 4
v3.25.4
Business Segment Information (Schedule of Operations by Reportable Segment) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Segment Reporting Information [Line Items]      
Revenues $ 7,786 $ 7,710 $ 6,956
Cost of revenues (6,636) (6,611) (5,979)
Gross profit 1,150 1,099 977
Equity in earnings of unconsolidated affiliates 210 107 114
Selling, general and administrative expenses (578) (543) (487)
Legal settlement of legacy matter 0 0 (144)
Other (4) (4) (11)
Operating income 778 659 449
Interest expense (158) (144) (115)
Charges associated with Convertible Notes 0 0 (494)
Other non-operating income (expense) (6) (7) (5)
Income (loss) from continuing operations before income taxes 614 508 (165)
Provision for income taxes (156) (129) (95)
Net income (loss) from continuing operations 458 379 (260)
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations 7 5 4
Net income (loss) attributable to KBR from continuing operations 451 374 (264)
Depreciation and amortization 169 156 141
Purchases of property, plant, and equipment (42) (52) (62)
Total assets 6,584 6,663  
MTS      
Segment Reporting Information [Line Items]      
Revenues 5,581 5,555 5,119
Cost of revenues (4,860) (4,887) (4,518)
Gross profit 721 668 601
Equity in earnings of unconsolidated affiliates 33 32 33
Selling, general and administrative expenses (293) (285) (234)
Legal settlement of legacy matter     (144)
Other 2 0 0
Operating income 463 415 256
Interest expense 0 0 0
Charges associated with Convertible Notes     0
Other non-operating income (expense) (6) 0 2
Income (loss) from continuing operations before income taxes 457 415 258
Provision for income taxes 0 0 0
Net income (loss) from continuing operations 457 415 258
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations 0 (1) 0
Net income (loss) attributable to KBR from continuing operations 457 416 258
Depreciation and amortization 115 99 90
Purchases of property, plant, and equipment (28) (33) (25)
Total assets 4,432 4,534  
STS      
Segment Reporting Information [Line Items]      
Revenues 2,205 2,155 1,837
Cost of revenues (1,776) (1,724) (1,461)
Gross profit 429 431 376
Equity in earnings of unconsolidated affiliates 177 75 81
Selling, general and administrative expenses (127) (98) (98)
Legal settlement of legacy matter     0
Other (2) (3) (5)
Operating income 477 405 354
Interest expense 0 0 0
Charges associated with Convertible Notes     0
Other non-operating income (expense) 2 1 2
Income (loss) from continuing operations before income taxes 479 406 356
Provision for income taxes 0 0 0
Net income (loss) from continuing operations 479 406 356
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations 7 6 4
Net income (loss) attributable to KBR from continuing operations 472 400 352
Depreciation and amortization 27 27 25
Purchases of property, plant, and equipment (4) (7) (15)
Total assets 1,184 1,182  
Corporate      
Segment Reporting Information [Line Items]      
Revenues 0 0 0
Cost of revenues 0 0 0
Gross profit 0 0 0
Equity in earnings of unconsolidated affiliates 0 0 0
Selling, general and administrative expenses (158) (160) (155)
Legal settlement of legacy matter     0
Other (4) (1) (6)
Operating income (162) (161) (161)
Interest expense (158) (144) (115)
Charges associated with Convertible Notes     (494)
Other non-operating income (expense) (2) (8) (9)
Income (loss) from continuing operations before income taxes (322) (313) (779)
Provision for income taxes (156) (129) (95)
Net income (loss) from continuing operations (478) (442) (874)
Less: Net income (loss) attributable to noncontrolling interests included in continuing operations 0 0 0
Net income (loss) attributable to KBR from continuing operations (478) (442) (874)
Depreciation and amortization 27 30 26
Purchases of property, plant, and equipment (10) (12) $ (22)
Total assets $ 968 $ 947  
v3.25.4
Business Segment Information (Schedule of Selected Geographic Information) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Segment Reporting Information [Line Items]    
Property, plant & equipment, net: $ 232 $ 237
United States    
Segment Reporting Information [Line Items]    
Property, plant & equipment, net: 124 129
United Kingdom    
Segment Reporting Information [Line Items]    
Property, plant & equipment, net: 34 35
Other    
Segment Reporting Information [Line Items]    
Property, plant & equipment, net: $ 74 $ 73
v3.25.4
Revenue (Schedule of Revenue by Geographic Destination) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Disaggregation of Revenue [Line Items]      
Revenues $ 7,786 $ 7,710 $ 6,956
United States      
Disaggregation of Revenue [Line Items]      
Revenues 4,244 4,045 3,617
Europe      
Disaggregation of Revenue [Line Items]      
Revenues 1,584 1,894 1,816
Middle East      
Disaggregation of Revenue [Line Items]      
Revenues 790 731 528
Australia      
Disaggregation of Revenue [Line Items]      
Revenues 548 526 496
Africa      
Disaggregation of Revenue [Line Items]      
Revenues 253 201 176
Asia      
Disaggregation of Revenue [Line Items]      
Revenues 142 152 169
Other countries      
Disaggregation of Revenue [Line Items]      
Revenues 225 161 154
U.S. Government Defense and Intelligence Clients      
Disaggregation of Revenue [Line Items]      
Revenues 3,370 3,292 3,039
U.S. Government Federal Civilian Clients      
Disaggregation of Revenue [Line Items]      
Revenues 1,057 1,112 1,052
International Government Clients      
Disaggregation of Revenue [Line Items]      
Revenues 905 891 791
Commercial and Infrastructure Clients      
Disaggregation of Revenue [Line Items]      
Revenues 2,454 2,415 2,074
MTS      
Disaggregation of Revenue [Line Items]      
Revenues 5,581 5,555 5,119
MTS | United States      
Disaggregation of Revenue [Line Items]      
Revenues 3,772 3,503 3,096
MTS | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 1,313 1,595 1,569
MTS | Middle East      
Disaggregation of Revenue [Line Items]      
Revenues 123 110 105
MTS | Australia      
Disaggregation of Revenue [Line Items]      
Revenues 219 202 204
MTS | Africa      
Disaggregation of Revenue [Line Items]      
Revenues 77 70 70
MTS | Asia      
Disaggregation of Revenue [Line Items]      
Revenues 20 18 17
MTS | Other countries      
Disaggregation of Revenue [Line Items]      
Revenues 57 57 58
MTS | U.S. Government Defense and Intelligence Clients      
Disaggregation of Revenue [Line Items]      
Revenues 3,370 3,292 3,039
MTS | U.S. Government Federal Civilian Clients      
Disaggregation of Revenue [Line Items]      
Revenues 1,057 1,112 1,052
MTS | International Government Clients      
Disaggregation of Revenue [Line Items]      
Revenues 905 891 791
MTS | Commercial and Infrastructure Clients      
Disaggregation of Revenue [Line Items]      
Revenues 249 260 237
MTS | Science & Space      
Disaggregation of Revenue [Line Items]      
Revenues 1,126 1,188 1,127
MTS | Defense & Intel      
Disaggregation of Revenue [Line Items]      
Revenues 3,178 2,887 2,497
MTS | Readiness & Sustainment      
Disaggregation of Revenue [Line Items]      
Revenues 1,277 1,480 1,495
STS      
Disaggregation of Revenue [Line Items]      
Revenues 2,205 2,155 1,837
STS | United States      
Disaggregation of Revenue [Line Items]      
Revenues 472 542 521
STS | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 271 299 247
STS | Middle East      
Disaggregation of Revenue [Line Items]      
Revenues 667 621 423
STS | Australia      
Disaggregation of Revenue [Line Items]      
Revenues 329 324 292
STS | Africa      
Disaggregation of Revenue [Line Items]      
Revenues 176 131 106
STS | Asia      
Disaggregation of Revenue [Line Items]      
Revenues 122 134 152
STS | Other countries      
Disaggregation of Revenue [Line Items]      
Revenues 168 104 96
STS | U.S. Government Defense and Intelligence Clients      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
STS | U.S. Government Federal Civilian Clients      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
STS | International Government Clients      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
STS | Commercial and Infrastructure Clients      
Disaggregation of Revenue [Line Items]      
Revenues $ 2,205 $ 2,155 $ 1,837
v3.25.4
Revenue (Schedule of Revenue by Contract Type) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Disaggregation of Revenue [Line Items]      
Revenues $ 7,786 $ 7,710 $ 6,956
Cost-Reimbursable      
Disaggregation of Revenue [Line Items]      
Revenues 3,305 3,507 3,287
Time-and-Materials      
Disaggregation of Revenue [Line Items]      
Revenues 2,311 2,254 2,012
Fixed Price      
Disaggregation of Revenue [Line Items]      
Revenues 2,170 1,949 1,657
MTS      
Disaggregation of Revenue [Line Items]      
Revenues 5,581 5,555 5,119
MTS | Cost-Reimbursable      
Disaggregation of Revenue [Line Items]      
Revenues 3,305 3,507 3,287
MTS | Time-and-Materials      
Disaggregation of Revenue [Line Items]      
Revenues 938 892 846
MTS | Fixed Price      
Disaggregation of Revenue [Line Items]      
Revenues 1,338 1,156 986
STS      
Disaggregation of Revenue [Line Items]      
Revenues 2,205 2,155 1,837
STS | Cost-Reimbursable      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
STS | Time-and-Materials      
Disaggregation of Revenue [Line Items]      
Revenues 1,373 1,362 1,166
STS | Fixed Price      
Disaggregation of Revenue [Line Items]      
Revenues $ 832 $ 793 $ 671
v3.25.4
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue recognized from performance obligations $ 48 $ 30 $ 15
Revenue, remaining performance obligation 13,300    
Operating income (loss) 778 659 $ 449
Contract assets 280 271  
Contract liabilities 331 $ 328  
Contract liability, revenue recognized $ 233    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-03      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue, remaining performance obligation, expected to be satisfied (as a percentage) 36.00%    
Revenue, remaining performance obligation, expected timing of satisfaction (year) 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-02      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue, remaining performance obligation, expected to be satisfied (as a percentage) 41.00%    
Revenue, remaining performance obligation, expected timing of satisfaction (year) 4 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-12-28      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue, remaining performance obligation, expected to be satisfied (as a percentage) 23.00%    
Revenue, remaining performance obligation, expected timing of satisfaction (year)    
LNG Project      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Operating income (loss) $ 134    
v3.25.4
Revenue (Schedule of Accounts Receivable) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Revenue from External Customer [Line Items]    
Accounts receivable, net $ 1,086 $ 1,066
Unbilled    
Revenue from External Customer [Line Items]    
Accounts receivable, net 520 525
Trade & other    
Revenue from External Customer [Line Items]    
Accounts receivable, net $ 566 $ 541
v3.25.4
Acquisition (Narrative) (Details) - USD ($)
 12 Months Ended
May 17, 2025
Aug. 30, 2024
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Business Combination [Line Items]          
Goodwill     $ 2,677,000,000 $ 2,630,000,000 $ 2,109,000,000
Cash consideration paid     $ 14,000,000 $ 738,000,000 $ 0
Customer relationships          
Business Combination [Line Items]          
Weighted average useful life     11 years 13 years  
Infrastar Corporation          
Business Combination [Line Items]          
Purchase price of acquisition $ 35,000,000        
Cash consideration paid 15,000,000        
Contingent consideration 20,000,000        
Maximum contingent consideration 24,000,000        
Cash     $ 2,000,000    
Goodwill     24,000,000    
Decrease to cash 2,000,000        
Increase (decrease) to goodwill 2,000,000        
Tax deductible amount $ 0        
Infrastar Corporation | Customer relationships          
Business Combination [Line Items]          
Intangible assets     11,000,000    
LinQuest Corporation          
Business Combination [Line Items]          
Goodwill   $ 516,000,000      
Increase (decrease) to goodwill     (10,000,000)    
Tax deductible amount   0      
Cash consideration paid   739,000,000      
Decrease to deferred income taxes liability     $ 10,000,000    
Intangible asset acquired   $ 200,000,000      
Weighted average useful life   14 years      
v3.25.4
Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents $ 500 $ 342
Cash and cash equivalents    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 425 213
Short-term investments    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 23 18
Short-term investments | Aspire Defence Limited    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 11 83
Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 52 111
International    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 290 317
International | Cash and cash equivalents    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 226 199
International | Short-term investments    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 12 8
International | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 52 110
United States    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 210 25
United States | Wholly-Owned Captive Insurance Company    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 15 12
United States | Cash and cash equivalents    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 199 14
United States | Short-term investments    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 11 10
United States | Cash and cash equivalents held in consolidated joint ventures and Aspire Defence subcontracting entities    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents $ 0 $ 1
v3.25.4
Unapproved Change Orders and Claims Against Clients (Schedule of Unapproved Change Orders and Claims) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Unapproved Change Orders [Roll Forward]    
Amounts included in project estimates-at-completion at beginning of fiscal year $ 104 $ 74
Net increase in project estimates 67 57
Resolution of claim 0 (27)
Approved change orders (146) 0
Amounts included in project-related estimates-at-completion at end of fiscal year 25 104
Amounts recognized over time based on progress $ 13 $ 100
v3.25.4
Unapproved Change Orders and Claims Against Clients (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Increases in Unapproved Change Orders and Claims [Line Items]    
Approved change orders $ 146 $ 0
Decrease in revenues recognized   $ 26
MTS    
Increases in Unapproved Change Orders and Claims [Line Items]    
Approved change orders $ 128  
v3.25.4
Property, Plant and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Property, Plant and Equipment [Line Items]      
Total $ 738 $ 711  
Less accumulated depreciation (506) (474)  
Net property, plant and equipment 232 237  
Depreciation 51 56 $ 50
Land      
Property, Plant and Equipment [Line Items]      
Total 5 5  
Buildings and property improvements      
Property, Plant and Equipment [Line Items]      
Total $ 179 165  
Buildings and property improvements | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives in Years 1 year    
Buildings and property improvements | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives in Years 35 years    
Equipment and other      
Property, Plant and Equipment [Line Items]      
Total $ 554 541  
Finance leases $ 23 $ 33  
Equipment and other | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives in Years 1 year    
Equipment and other | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives in Years 25 years    
v3.25.4
Goodwill and Intangible Assets (Schedule of Goodwill by Reportable Segments) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Goodwill [Roll Forward]    
Balance, beginning of period $ 2,630 $ 2,109
Goodwill acquired and adjusted during the period (Note 4) 14 531
Foreign currency translation 33 (10)
Balance, end of period 2,677 2,630
MTS    
Goodwill [Roll Forward]    
Balance, beginning of period 2,443 1,921
Goodwill acquired and adjusted during the period (Note 4) 14 531
Foreign currency translation 30 (9)
Balance, end of period 2,487 2,443
STS    
Goodwill [Roll Forward]    
Balance, beginning of period 187 188
Goodwill acquired and adjusted during the period (Note 4) 0 0
Foreign currency translation 3 (1)
Balance, end of period $ 190 $ 187
v3.25.4
Goodwill and Intangible Assets (Schedule of Cost and Accumulated Amortization of Intangible Assets) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Intangible Assets, Gross $ 1,228 $ 1,190
Accumulated Amortization (501) (427)
Intangible Assets, Net $ 727 $ 763
Customer relationships    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Remaining Useful Lives 11 years 13 years
Intangible Assets, Gross $ 758 $ 740
Accumulated Amortization (266) (219)
Intangible Assets, Net $ 492 $ 521
Developed technologies    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Remaining Useful Lives 15 years 16 years
Intangible Assets, Gross $ 83 $ 82
Accumulated Amortization (48) (45)
Intangible Assets, Net $ 35 $ 37
Contract backlog    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Remaining Useful Lives 15 years 15 years
Intangible Assets, Gross $ 314 $ 297
Accumulated Amortization (173) (151)
Intangible Assets, Net $ 141 $ 146
Other    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Weighted Average Remaining Useful Lives 10 years 10 years
Intangible Assets, Gross $ 23 $ 21
Accumulated Amortization (14) (12)
Intangible Assets, Net 9 9
Trademarks/trade names    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Intangible Assets, Gross 50 50
Intangible Assets, Net $ 50 $ 50
v3.25.4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Impairment of intangible assets $ 0 $ 0 $ 0
v3.25.4
Goodwill and Intangible Assets (Schedule of Amortization Expense of Intangible Assets) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Intangibles amortization expense $ 64 $ 52 $ 45
v3.25.4
Goodwill and Intangible Assets (Schedule of Expected Amortization Expense of Intangibles) (Details)
$ in Millions
Jan. 02, 2026
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2026 $ 58
2027 57
2028 57
2029 57
2030 57
Beyond 2030 $ 391
v3.25.4
Equity Method Investments and Variable Interest Entities (Schedule of Equity in Earnings of Unconsolidated Affiliates) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 02, 2026
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Balance at beginning of fiscal year   $ 192    
Equity in earnings of unconsolidated affiliates   210 $ 107 $ 114
Distributions of earnings of unconsolidated affiliates   (170) (163) (74)
Return of equity method investments, net   (82) (36) (60)
Balance at end of fiscal year $ 107 107 192  
STS        
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Equity in earnings of unconsolidated affiliates   177 75 81
Equity Method Investments        
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Balance at beginning of fiscal year   192 206  
Equity in earnings of unconsolidated affiliates   210 107  
Distributions of earnings of unconsolidated affiliates   (165) (202)  
Payments from unconsolidated affiliates, net   (9) (9)  
Return of equity method investments, net   (82) (36)  
Foreign currency translation adjustments   4 (2)  
Other   (43) 128  
Balance at end of fiscal year 107 107 192 $ 206
Equity Method Investments | BRIS        
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Return of equity method investments, net   (79)    
Equity Method Investments | Subcontractor Settlement Agreement        
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Return of equity method investments, net     (36)  
Other   43 $ 128  
Equity Method Investments | STS        
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]        
Distributions of earnings of unconsolidated affiliates $ (34) $ (39)    
v3.25.4
Equity Method Investments and Variable Interest Entities (Narrative) (Details)
$ in Millions
 2 Months Ended 12 Months Ended
Feb. 26, 2026
USD ($)
Jan. 02, 2026
USD ($)
vIE
Jan. 03, 2025
USD ($)
Dec. 29, 2023
USD ($)
Schedule of Equity Method Investments [Line Items]        
Number of VIEs | vIE   3    
Revenues   $ 7,786 $ 7,710 $ 6,956
BRIS | Equity Method Investments | Subsequent Event        
Schedule of Equity Method Investments [Line Items]        
Cash contributed $ 115      
Corporate Joint Venture        
Schedule of Equity Method Investments [Line Items]        
Revenues   $ 710 $ 721 $ 567
JKC Joint Venture        
Schedule of Equity Method Investments [Line Items]        
Variable interest entity, ownership (as a percentage)   30.00%    
Number of VIEs | vIE   2    
Aspire Defence Limited        
Schedule of Equity Method Investments [Line Items]        
Term of contracted services portion of project (in years)   35 years    
Plaquemines LNG project | Variable Interest Entity, Not Primary Beneficiary        
Schedule of Equity Method Investments [Line Items]        
Variable interest entity, ownership (as a percentage)   45.00%    
Affinity Flying Training Services Limited        
Schedule of Equity Method Investments [Line Items]        
Variable interest entity, ownership (as a percentage)   50.00%    
Affinity Capital Works        
Schedule of Equity Method Investments [Line Items]        
Variable interest entity, ownership (as a percentage)   50.00%    
Aspire Defence Limited        
Schedule of Equity Method Investments [Line Items]        
Variable interest entity, ownership (as a percentage)   45.00%    
v3.25.4
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Balance Sheet) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Schedule of Equity Method Investments [Line Items]    
Current assets $ 2,051 $ 1,873
Total assets 6,584 6,663
Current liabilities 1,688 1,782
Total liabilities 5,072 5,196
Equity Method Investment    
Schedule of Equity Method Investments [Line Items]    
Current assets 1,624 3,142
Noncurrent assets 1,475 1,473
Total assets 3,099 4,615
Current liabilities 1,493 3,173
Noncurrent liabilities 1,874 1,628
Total liabilities $ 3,367 $ 4,801
v3.25.4
Equity Method Investments and Variable Interest Entities (Consolidated Summarized Financial Information - Statements of Operations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Schedule of Equity Method Investments [Line Items]      
Operating income $ 458 $ 379 $ (260)
Net income 403 381 (261)
Equity Method Investment      
Schedule of Equity Method Investments [Line Items]      
Revenues 4,737 8,657 5,873
Operating income 453 217 264
Net income $ 443 $ 221 $ 242
v3.25.4
Equity Method Investments and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Schedule of Equity Method Investments [Line Items]    
Total Assets $ 6,584 $ 6,663
Total Liabilities 5,072 5,196
Variable Interest Entity, Not Primary Beneficiary | Affinity joint venture (U.K. MFTS project)    
Schedule of Equity Method Investments [Line Items]    
Total Assets 7 6
Total Liabilities 1 1
Variable Interest Entity, Not Primary Beneficiary | Aspire Defence Limited    
Schedule of Equity Method Investments [Line Items]    
Total Assets 94 84
Total Liabilities 9 7
Variable Interest Entity, Not Primary Beneficiary | JKC joint venture (Ichthys LNG project)    
Schedule of Equity Method Investments [Line Items]    
Total Assets 0 0
Total Liabilities 81 80
Variable Interest Entity, Not Primary Beneficiary | Plaquemines LNG project    
Schedule of Equity Method Investments [Line Items]    
Total Assets 0 48
Total Liabilities 35 94
Variable Interest Entity, Primary Beneficiary | Aspire Defence Limited    
Schedule of Equity Method Investments [Line Items]    
Total Assets 338 372
Total Liabilities $ 149 $ 197
v3.25.4
Equity Method Investments and Variable Interest Entities (Balance Sheet Amounts Related to Services Provided) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Schedule of Equity Method Investments [Line Items]    
Accounts receivable, net of allowance for credit losses $ 1,086 $ 1,066
Contract liabilities 331 328
Corporate Joint Venture    
Schedule of Equity Method Investments [Line Items]    
Accounts receivable, net of allowance for credit losses 59 96
Contract liabilities $ 41 $ 68
v3.25.4
Retirement Benefits (Narrative) (Details)
 12 Months Ended
Jan. 02, 2026
USD ($)
plan
Jan. 03, 2025
USD ($)
Dec. 29, 2023
USD ($)
Defined Benefit Plan Disclosure [Line Items]      
Defined contribution plan expenses $ 148,000,000 $ 131,000,000 $ 119,000,000
Contributions by employer for defined benefit plan 0 61,000,000  
Funded amount 7,000,000 6,000,000  
Employee deferred compensation plan $ 80,000,000 74,000,000  
United States      
Defined Benefit Plan Disclosure [Line Items]      
Number of frozen defined benefit plans | plan 2    
Accumulated benefit obligation $ 54,000,000 55,000,000  
International      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligation $ 1,180,000,000 $ 1,115,000,000  
U.K.      
Defined Benefit Plan Disclosure [Line Items]      
Number of frozen defined benefit plans | plan 1    
Number of active defined benefit plans | plan 1    
Germany      
Defined Benefit Plan Disclosure [Line Items]      
Number of frozen defined benefit plans | plan 1    
v3.25.4
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($)
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Change in plan assets:      
Fair value of plan assets at beginning of period $ 1,247,000,000    
Employer contributions 0 $ 61,000,000  
Fair value of plan assets at end of period 1,319,000,000 1,247,000,000  
United States      
Change in projected benefit obligations:      
Service cost 0 0 $ 0
Interest cost 3,000,000 3,000,000 3,000,000
Change in plan assets:      
Fair value of plan assets at beginning of period 54,000,000    
Fair value of plan assets at end of period 57,000,000 54,000,000  
United States | Overfunded      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 47,000,000 0  
Service cost 0 0  
Interest cost 2,000,000 0  
Foreign currency exchange rate changes 0 0  
Actuarial (gain) loss 1,000,000 0  
Benefits paid (4,000,000) 0  
Other 0    
Projected benefit obligations at end of period 46,000,000 47,000,000 0
Change in plan assets:      
Fair value of plan assets at beginning of period 46,000,000 0  
Actual return on plan assets 6,000,000 0  
Employer contributions 2,000,000 0  
Foreign currency exchange rate changes 0 0  
Benefits paid (4,000,000) 0  
Other (1,000,000)    
Fair value of plan assets at end of period 49,000,000 46,000,000 0
Funded status 3,000,000 0  
United States | Overfunded | Previously Reported      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 0    
Projected benefit obligations at end of period   0  
Change in plan assets:      
Fair value of plan assets at beginning of period 0    
Fair value of plan assets at end of period   0  
United States | Underfunded      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 8,000,000 58,000,000  
Service cost 0 0  
Interest cost 1,000,000 3,000,000  
Foreign currency exchange rate changes 0 0  
Actuarial (gain) loss 0 (1,000,000)  
Benefits paid (1,000,000) (5,000,000)  
Other 0    
Projected benefit obligations at end of period 8,000,000 8,000,000 58,000,000
Change in plan assets:      
Fair value of plan assets at beginning of period 8,000,000 53,000,000  
Actual return on plan assets 1,000,000 5,000,000  
Employer contributions 0 1,000,000  
Foreign currency exchange rate changes 0 0  
Benefits paid (1,000,000) (5,000,000)  
Other 0    
Fair value of plan assets at end of period 8,000,000 8,000,000 53,000,000
Funded status 0 (1,000,000)  
United States | Underfunded | Previously Reported      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 55,000,000    
Projected benefit obligations at end of period   55,000,000  
Change in plan assets:      
Fair value of plan assets at beginning of period 54,000,000    
Fair value of plan assets at end of period   54,000,000  
International      
Change in projected benefit obligations:      
Service cost 1,000,000 1,000,000 1,000,000
Interest cost 63,000,000 61,000,000 61,000,000
Change in plan assets:      
Fair value of plan assets at beginning of period 1,193,000,000    
Fair value of plan assets at end of period 1,262,000,000 1,193,000,000  
International | Overfunded      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 1,111,000,000 1,301,000,000  
Service cost 1,000,000 1,000,000  
Interest cost 63,000,000 61,000,000  
Foreign currency exchange rate changes 84,000,000 (23,000,000)  
Actuarial (gain) loss (12,000,000) (162,000,000)  
Benefits paid (70,000,000) (67,000,000)  
Other (1,000,000)    
Projected benefit obligations at end of period 1,176,000,000 1,111,000,000 1,301,000,000
Change in plan assets:      
Fair value of plan assets at beginning of period 1,193,000,000 1,295,000,000  
Actual return on plan assets 48,000,000 (72,000,000)  
Employer contributions 1,000,000 61,000,000  
Foreign currency exchange rate changes 91,000,000 (24,000,000)  
Benefits paid (70,000,000) (67,000,000)  
Other (1,000,000)    
Fair value of plan assets at end of period 1,262,000,000 1,193,000,000 1,295,000,000
Funded status 86,000,000 82,000,000  
International | Overfunded | Previously Reported      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 1,111,000,000    
Projected benefit obligations at end of period   1,111,000,000  
Change in plan assets:      
Fair value of plan assets at beginning of period 1,193,000,000    
Fair value of plan assets at end of period   1,193,000,000  
International | Underfunded      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 4,000,000 4,000,000  
Service cost 0 0  
Interest cost 0 0  
Foreign currency exchange rate changes 0 0  
Actuarial (gain) loss 0 0  
Benefits paid 0 0  
Other 0    
Projected benefit obligations at end of period 4,000,000 4,000,000 4,000,000
Change in plan assets:      
Fair value of plan assets at beginning of period 0 0  
Actual return on plan assets 0 0  
Employer contributions 0 0  
Foreign currency exchange rate changes 0 0  
Benefits paid 0 0  
Other 0    
Fair value of plan assets at end of period 0 0 $ 0
Funded status (4,000,000) (4,000,000)  
International | Underfunded | Previously Reported      
Change in projected benefit obligations:      
Projected benefit obligations at beginning of period 4,000,000    
Projected benefit obligations at end of period   4,000,000  
Change in plan assets:      
Fair value of plan assets at beginning of period $ 0    
Fair value of plan assets at end of period   $ 0  
v3.25.4
Retirement Benefits (Schedule of Amounts Recognized on Consolidated Balance Sheet) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Defined Benefit Plan Disclosure [Line Items]    
Pension assets $ 89 $ 82
United States    
Defined Benefit Plan Disclosure [Line Items]    
Pension assets 3 0
Other liabilities 0 (1)
International    
Defined Benefit Plan Disclosure [Line Items]    
Pension assets 86 82
Other liabilities $ (4) $ (4)
v3.25.4
Retirement Benefits (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
United States      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 0 $ 0 $ 0
Interest cost 3 3 3
Expected return on plan assets (3) (3) (3)
Prior service cost amortization 0 0 0
Recognized actuarial loss 1 1 1
Net periodic (benefit) cost 1 1 1
International      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 1 1 1
Interest cost 63 61 61
Expected return on plan assets (112) (113) (102)
Prior service cost amortization 1 1 1
Recognized actuarial loss 4 3 0
Net periodic (benefit) cost $ (43) $ (47) $ (39)
v3.25.4
Retirement Benefits (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
United States    
Defined Benefit Plan Disclosure [Line Items]    
Unrecognized actuarial loss, net of tax of $6 and $238, $6 and $226, respectively $ 10 $ 12
Total in accumulated other comprehensive loss 10 12
Unrecognized actuarial loss, tax 6 6
International    
Defined Benefit Plan Disclosure [Line Items]    
Unrecognized actuarial loss, net of tax of $6 and $238, $6 and $226, respectively 678 643
Total in accumulated other comprehensive loss 678 643
Unrecognized actuarial loss, tax $ 238 $ 226
v3.25.4
Retirement Benefits (Schedule of Weighted-Average Assumptions) (Details)
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
United States      
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 5.32% 4.70% 4.91%
Expected return on plan assets 6.64% 6.64% 6.63%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 4.97% 5.32%  
International      
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 5.54% 4.79% 5.00%
Expected return on plan assets 6.80% 6.70% 5.92%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 5.60% 5.54%  
v3.25.4
Retirement Benefits (Schedule of Target Plan Allocation) (Details)
Jan. 01, 2027
Jan. 02, 2026
United States | Equity funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   41.00%
United States | Equity funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   62.00%
United States | Fixed income funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   31.00%
United States | Fixed income funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   47.00%
United States | Real estate funds | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   1.00%
United States | Real estate funds | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   1.00%
United States | Other | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   7.00%
United States | Other | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   10.00%
International | Equity funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   36.00%
International | Equity funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   55.00%
International | Fixed income funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   28.00%
International | Fixed income funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   42.00%
International | Real estate funds | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   6.00%
International | Real estate funds | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   10.00%
International | Other | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   10.00%
International | Other | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage)   15.00%
Scenario, Forecast | United States    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 100.00%  
Scenario, Forecast | United States | Equity funds and securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 52.00%  
Scenario, Forecast | United States | Equity funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 41.00%  
Scenario, Forecast | United States | Equity funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 62.00%  
Scenario, Forecast | United States | Fixed income funds and securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 39.00%  
Scenario, Forecast | United States | Fixed income funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 31.00%  
Scenario, Forecast | United States | Fixed income funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 47.00%  
Scenario, Forecast | United States | Real estate funds    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 1.00%  
Scenario, Forecast | United States | Real estate funds | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 1.00%  
Scenario, Forecast | United States | Real estate funds | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 1.00%  
Scenario, Forecast | United States | Other    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 8.00%  
Scenario, Forecast | United States | Other | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 7.00%  
Scenario, Forecast | United States | Other | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 10.00%  
Scenario, Forecast | International    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 100.00%  
Scenario, Forecast | International | Equity funds and securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 37.00%  
Scenario, Forecast | International | Equity funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 29.00%  
Scenario, Forecast | International | Equity funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 45.00%  
Scenario, Forecast | International | Fixed income funds and securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 46.00%  
Scenario, Forecast | International | Fixed income funds and securities | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 37.00%  
Scenario, Forecast | International | Fixed income funds and securities | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 55.00%  
Scenario, Forecast | International | Real estate funds    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 7.00%  
Scenario, Forecast | International | Real estate funds | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 6.00%  
Scenario, Forecast | International | Real estate funds | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 8.00%  
Scenario, Forecast | International | Other    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 10.00%  
Scenario, Forecast | International | Other | Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 8.00%  
Scenario, Forecast | International | Other | Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations (in percentage) 12.00%  
v3.25.4
Retirement Benefits (Schedule of Pension Plan Assets Measured at Fair Value) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1,319 $ 1,247  
Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 99 39  
Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 962 943  
Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 115 111  
United States      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 57 54  
United States | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
United States | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
United States | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
United States | Investments measured at net asset value      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 57 54  
International      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,262 1,193  
International | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 99 39  
International | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 962 943  
International | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 115 111 $ 114
International | Investments measured at net asset value      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 86 100  
International | Equities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 413 433  
International | Equities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Equities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 356 379  
International | Equities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 57 54 51
International | Fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 606 564  
International | Fixed income | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Fixed income | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 606 564  
International | Fixed income | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0 0
International | Real estate      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 1  
International | Real estate | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Real estate | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Real estate | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 1 1
International | Cash and cash equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 99 39  
International | Cash and cash equivalents | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 99 39  
International | Cash and cash equivalents | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Cash and cash equivalents | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Other      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 56 56  
International | Other | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Other | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International | Other | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 56 $ 56 $ 62
v3.25.4
Retirement Benefits (Schedule of Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Change in plan assets:    
Fair value of plan assets at beginning of period $ 1,247  
Fair value of plan assets at end of period 1,319 $ 1,247
Level 3    
Change in plan assets:    
Fair value of plan assets at beginning of period 111  
Fair value of plan assets at end of period 115 111
International    
Change in plan assets:    
Fair value of plan assets at beginning of period 1,193  
Fair value of plan assets at end of period 1,262 1,193
International | Equities    
Change in plan assets:    
Fair value of plan assets at beginning of period 433  
Fair value of plan assets at end of period 413 433
International | Fixed Income    
Change in plan assets:    
Fair value of plan assets at beginning of period 564  
Fair value of plan assets at end of period 606 564
International | Real Estate    
Change in plan assets:    
Fair value of plan assets at beginning of period 1  
Fair value of plan assets at end of period 2 1
International | Other    
Change in plan assets:    
Fair value of plan assets at beginning of period 56  
Fair value of plan assets at end of period 56 56
International | Level 3    
Change in plan assets:    
Fair value of plan assets at beginning of period 111 114
Return on assets held at end of year (6) 6
Return on assets sold during the year 0  
Purchases, sales and settlements, net 1 (7)
Foreign exchange impact 9 (2)
Fair value of plan assets at end of period 115 111
International | Level 3 | Equities    
Change in plan assets:    
Fair value of plan assets at beginning of period 54 51
Return on assets held at end of year 2 8
Return on assets sold during the year (1)  
Purchases, sales and settlements, net (2) (4)
Foreign exchange impact 4 (1)
Fair value of plan assets at end of period 57 54
International | Level 3 | Fixed Income    
Change in plan assets:    
Fair value of plan assets at beginning of period 0 0
Return on assets held at end of year 1 0
Return on assets sold during the year (1)  
Purchases, sales and settlements, net 0 0
Foreign exchange impact 0 0
Fair value of plan assets at end of period 0 0
International | Level 3 | Real Estate    
Change in plan assets:    
Fair value of plan assets at beginning of period 1 1
Return on assets held at end of year 0 0
Return on assets sold during the year 0  
Purchases, sales and settlements, net 0 0
Foreign exchange impact 1 0
Fair value of plan assets at end of period 2 1
International | Level 3 | Other    
Change in plan assets:    
Fair value of plan assets at beginning of period 56 62
Return on assets held at end of year (9) (2)
Return on assets sold during the year 2  
Purchases, sales and settlements, net 3 (3)
Foreign exchange impact 4 (1)
Fair value of plan assets at end of period $ 56 $ 56
v3.25.4
Retirement Benefits (Schedule of Expected Benefit Payments) (Details)
$ in Millions
Jan. 02, 2026
USD ($)
United States  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2026 $ 6
Fiscal 2027 5
Fiscal 2028 5
Fiscal 2029 5
Fiscal 2030 5
Fiscals 2031-2035 20
International  
Defined Benefit Plan Disclosure [Line Items]  
Fiscal 2026 73
Fiscal 2027 75
Fiscal 2028 78
Fiscal 2029 80
Fiscal 2030 81
Fiscals 2031-2035 $ 417
v3.25.4
Debt and Other Credit Facilities (Schedule of Outstanding Debt) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Debt Instrument [Line Items]    
Unamortized debt issuance costs and discounts $ (21) $ (25)
Total debt 2,596 2,569
Less: current portion 49 36
Total long-term debt, net of current portion 2,547 2,533
Secured Debt | Term Loan A    
Debt Instrument [Line Items]    
Long-term debt 989 1,006
Secured Debt | Term Loan B    
Debt Instrument [Line Items]    
Long-term debt 983 993
Senior Notes    
Debt Instrument [Line Items]    
Long-term debt 250 250
Revolver | Revolver    
Debt Instrument [Line Items]    
Long-term debt $ 395 $ 345
v3.25.4
Debt and Other Credit Facilities (Senior Credit Facility) (Details) - USD ($)
 12 Months Ended
Apr. 25, 2018
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Line of Credit Facility [Line Items]        
Cash repayments on revolver   $ 505,000,000 $ 98,000,000 $ 340,000,000
Term Loan A | Secured Debt        
Line of Credit Facility [Line Items]        
Repayments of secured debt   26,000,000    
Covenant, interest coverage ratio 3.00      
Term Loan A | Secured Debt | Maximum        
Line of Credit Facility [Line Items]        
Debt instrument, covenant, leverage ratio through 2023 4.25      
Debt instrument, covenant, leverage ratio through 2024 4.00      
Term Loan B | Secured Debt        
Line of Credit Facility [Line Items]        
Repayments of secured debt   $ 10,000,000    
Quarterly principal payments $ 3,000,000      
Term Loan B | Secured Debt | SOFR        
Line of Credit Facility [Line Items]        
Basis spread on variable rate   2.00%    
Term Loan B | Secured Debt | Base Rate        
Line of Credit Facility [Line Items]        
Basis spread on variable rate   1.00%    
Term Loan A-2 | Secured Debt | Payment term one        
Line of Credit Facility [Line Items]        
Percentage of aggregate principal 0.625%      
Delayed Draw Term Loan A-1 | Secured Debt | Payment term one        
Line of Credit Facility [Line Items]        
Percentage of aggregate principal 0.625%      
Delayed Draw Term Loan A-1 | Secured Debt | Payment term two        
Line of Credit Facility [Line Items]        
Percentage of aggregate principal 1.25%      
Delayed Draw Term Loan A-3 | Secured Debt | Payment term one        
Line of Credit Facility [Line Items]        
Percentage of aggregate principal 0.625%      
Delayed Draw Term Loan A-3 | Secured Debt | Payment term two        
Line of Credit Facility [Line Items]        
Percentage of aggregate principal 1.25%      
Revolver | Revolver        
Line of Credit Facility [Line Items]        
Line of credit facility, maximum borrowing capacity $ 1,000,000,000      
Repurchase of convertible notes   $ 555,000,000    
Cash repayments on revolver   $ 505,000,000    
v3.25.4
Debt and Other Credit Facilities (Schedule of Commitment Fees) (Details)
Apr. 25, 2018
Secured Debt | SOFR | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0010
Secured Debt | SOFR | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0010
Secured Debt | Sterling Overnight Index Average (SONIA) | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0012
Secured Debt | Sterling Overnight Index Average (SONIA) | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0012
Revolver | SOFR | Revolver  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0010
Revolver | Sterling Overnight Index Average (SONIA) | Revolver  
Debt Instrument [Line Items]  
Credit spread adjustment 0.0012
Greater than or equal to 4.25 to 1.00  
Debt Instrument [Line Items]  
Commitment Fee 0.33%
Greater than or equal to 4.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.25%
Greater than or equal to 4.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.25%
Greater than or equal to 4.25 to 1.00 | Secured Debt | SOFR | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.13%
Greater than or equal to 4.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Greater than or equal to 4.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Greater than or equal to 4.25 to 1.00 | Secured Debt | Base Rate | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.13%
Greater than or equal to 4.25 to 1.00 | Revolver | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.25%
Greater than or equal to 4.25 to 1.00 | Revolver | Base Rate | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00  
Debt Instrument [Line Items]  
Commitment Fee 0.30%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.00%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.00%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | SOFR | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.88%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.00%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.00%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Secured Debt | Base Rate | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.88%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 2.00%
Less than 4.25 to 1.00 but greater than or equal to 3.25 to 1.00 | Revolver | Base Rate | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.00%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00  
Debt Instrument [Line Items]  
Commitment Fee 0.28%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | SOFR | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.63%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Secured Debt | Base Rate | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.63%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.75%
Less than 3.25 to 1.00 but greater than or equal to 2.25 to 1.00 | Revolver | Base Rate | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.75%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00  
Debt Instrument [Line Items]  
Commitment Fee 0.25%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | SOFR | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.38%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Secured Debt | Base Rate | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.38%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.50%
Less than 2.25 to 1.00 but greater than or equal to 1.25 to 1.00 | Revolver | Base Rate | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.50%
Less than 1.25 to 1.00  
Debt Instrument [Line Items]  
Commitment Fee 0.23%
Less than 1.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Less than 1.25 to 1.00 | Secured Debt | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Less than 1.25 to 1.00 | Secured Debt | SOFR | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.13%
Less than 1.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-1  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.25%
Less than 1.25 to 1.00 | Secured Debt | Base Rate | Delayed Draw Term Loan A-3  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.25%
Less than 1.25 to 1.00 | Secured Debt | Base Rate | Term Loan A-2  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.13%
Less than 1.25 to 1.00 | Revolver | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 1.25%
Less than 1.25 to 1.00 | Revolver | Base Rate | Revolver  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.25%
v3.25.4
Debt and Other Credit Facilities (Senior Notes) (Details) - Notes Due 2028 - Senior Notes
 12 Months Ended
Jan. 02, 2026
USD ($)
Debt Instrument [Line Items]  
Aggregate principal amount $ 250,000,000
Interest rate, stated (as a percentage) 4.75%
Change of control  
Debt Instrument [Line Items]  
Redemption price (as a percentage) 101.00%
v3.25.4
Debt and Other Credit Facilities (Letters of Credit, Surety Bonds and Guarantees) (Details) - Revolver - USD ($)
Jan. 02, 2026
Apr. 25, 2018
Letters of Credit, Surety Bonds and Bank Guarantees    
Debt Instrument [Line Items]    
Letters of credit outstanding relate to joint venture operations $ 99,000,000  
Revolver    
Debt Instrument [Line Items]    
Line of credit facility, maximum borrowing capacity   $ 1,000,000,000
Long-term line of credit 395,000,000  
Letters of credit, outstanding amount 14,000,000  
Remaining borrowing capacity 783,000,000  
Revolver | Committed Line of Credit    
Debt Instrument [Line Items]    
Line of credit facility, maximum borrowing capacity 1,000,000,000  
Revolver | Uncommitted Line of Credit    
Debt Instrument [Line Items]    
Line of credit facility, maximum borrowing capacity 488,000,000  
Performance Letter of Credit Fee | Uncommitted Line of Credit    
Debt Instrument [Line Items]    
Letters of credit, outstanding amount $ 296,000,000  
v3.25.4
Income Taxes (Components of Income (Loss) before Income Tax) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Operating Loss Carryforwards [Line Items]      
United States $ 270 $ 99 $ (464)
Foreign 344 409 299
Income (loss) from continuing operations before income taxes 614 508 (165)
United Kingdom      
Operating Loss Carryforwards [Line Items]      
Foreign 150 161 133
Australia      
Operating Loss Carryforwards [Line Items]      
Foreign 30 45 49
Middle East      
Operating Loss Carryforwards [Line Items]      
Foreign 64 61 45
Asia      
Operating Loss Carryforwards [Line Items]      
Foreign 55 100 48
Other      
Operating Loss Carryforwards [Line Items]      
Foreign $ 45 $ 42 $ 24
v3.25.4
Income Taxes (Taxes on Financial Statements) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Income Tax Disclosure [Abstract]      
Provision for income taxes $ (156) $ (129) $ (95)
Shareholders' equity, pension and post-retirement benefits 11 4 25
Shareholders' equity, changes in fair value of derivatives 5 0 3
Total income taxes $ (140) $ (125) $ (67)
v3.25.4
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Federal      
Current $ (1) $ (7) $ 0
Deferred (55) 6 (3)
Total (56) (1) (3)
Foreign      
Current (69) (95) (65)
Deferred (14) (10) (14)
Total (83) (105) (79)
State and other      
Current (26) (25) (17)
Deferred 9 2 4
Total (17) (23) (13)
Current (96) (127) (82)
Deferred (60) (2) (13)
Total $ (156) $ (129) $ (95)
v3.25.4
Income Taxes (Components of Foreign Income Tax Provision) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes $ (83) $ (105) $ (79)
United Kingdom      
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes (32) (37) (32)
Australia      
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes (12) (19) (13)
Middle East      
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes (17) (18) (12)
Asia      
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes (13) (18) (8)
Other      
Operating Loss Carryforwards [Line Items]      
Foreign provision for income taxes $ (9) $ (13) $ (14)
v3.25.4
Income Taxes (Schedule of Cash Paid for Income Taxes, Net of Refunds) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Federal $ 9    
Cash paid during the period for income taxes, net of refunds 83 $ 82 $ 52
Australia      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 17    
India      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 8    
Saudi Arabia      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 5    
Singapore      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 10    
United Kingdom      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 5    
Other      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign 9    
Louisiana      
Effective Income Tax Rate Reconciliation [Line Items]      
State and other 5    
Other      
Effective Income Tax Rate Reconciliation [Line Items]      
State and other $ 15    
v3.25.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Operating Loss Carryforwards [Line Items]      
Valuation allowances $ 124 $ 142  
(Decrease) increase in valuation allowance (18) (6)  
Income (loss) exclusive of restructuring and impairment charges 356 249 $ 267
Income threshold required for foreign tax credit carryforward utilization 286    
Income threshold required for deferred tax asset utilization 914    
Undistributed earnings of foreign subsidiaries 2,700    
Unrecognized tax benefits 62    
Settlements 0 0 16
Income tax penalties and interest accrued 31 46  
Income tax penalties and interest expense (7) 4 3
United States      
Operating Loss Carryforwards [Line Items]      
Valuation allowances 95    
(Decrease) increase in valuation allowance $ 86 $ 147 $ 94
v3.25.4
Income Taxes (Reconciliations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Amount      
U.S. statutory federal rate $ 129    
Tax credits (8)    
Other 9    
Global Intangible Low-Taxed Income 11    
Foreign-derived Intangible Income deduction (10)    
Subpart F deemed dividend 6    
Other (2)    
Changes in valuation allowances (3)    
State and local income taxes, net of federal benefit 14    
Worldwide changes in unrecognized tax benefits (20)    
Recognized actuarial loss $ 156 $ 129 $ 95
Percent      
U.S. statutory federal rate, expected (benefit) provision 21.00% 21.00% 21.00%
Tax credits (1.00%)    
Other non-deductible expenditures 1.00% 2.00% 0.00%
Global Intangible Low-Taxed Income 2.00%    
Foreign-derived Intangible Income deduction (2.00%)    
Subpart F deemed dividend 0.01    
Other 0.00%    
Change in federal and foreign valuation allowance 0.00% (2.00%) (3.00%)
State and local income taxes, net of federal benefit 2.00% 3.00% 2.00%
Other permanent differences, net   2.00% 5.00%
Tax impact from foreign operations   2.00% 2.00%
Worldwide changes in unrecognized tax benefits (4.00%)    
Noncontrolling interests and equity earnings   (2.00%) (1.00%)
Research and development credits, net of provision   (1.00%) 0.00%
Release of previously reserved position   0.00% (2.00%)
Non-Deductible portion associated with legal settlement of legacy matter   0.00% (11.00%)
Non-Deductible portion of Charges associated with Convertible Notes   0.00% (70.00%)
Effective tax rate on income from continuing operations 25.00% 25.00% (57.00%)
United States      
Amount      
Non-deductible charge-outs $ 7    
Percent      
Non-deductible charge-outs 1.00%    
Australia      
Amount      
Non-deductible charge-outs $ 18    
Other $ 6    
Percent      
Non-deductible charge-outs 3.00%    
Other permanent differences, net 1.00%    
Iraq      
Amount      
Statutory income tax rate differential $ 6    
Percent      
Tax impact from foreign operations 1.00%    
Other      
Amount      
Statutory income tax rate differential $ (7)    
Percent      
Tax impact from foreign operations (1.00%)    
v3.25.4
Income Taxes (Components of Deferred Tax Assets and Liabilities and Related Valuation Allowances) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Deferred tax assets:    
Employee compensation and benefits $ 64 $ 63
Foreign tax credit carryforwards 60 98
Loss carryforwards 70 69
Research and development and other credit carryforwards 37 49
Insurance accruals 8 8
Lease obligation and accrued liabilities 84 93
Contract liabilities 22 23
Capitalized research expenditures 76 73
Other 99 118
Total gross deferred tax assets 520 594
Valuation allowances (124) (142)
Net deferred tax assets 396 452
Deferred tax liabilities:    
Right-of-use assets (42) (47)
Intangible amortization (127) (131)
Indefinite-lived intangible amortization (107) (98)
Other (53) (50)
Total gross deferred tax liabilities (329) (326)
Deferred income tax assets, net $ 67 $ 126
v3.25.4
Income Taxes (Valuation Allowance) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net $ 191  
Valuation Allowance (124) $ (142)
Deferred income tax assets, net 67 $ 126
United States    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net 224  
Valuation Allowance (95)  
Deferred income tax assets, net 129  
United Kingdom    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net (87)  
Valuation Allowance 0  
Deferred tax liabilities, net (87)  
Australia    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net 21  
Valuation Allowance 0  
Deferred income tax assets, net 21  
Canada    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net 20  
Valuation Allowance (19)  
Deferred income tax assets, net 1  
Asia    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net 3  
Valuation Allowance (2)  
Deferred income tax assets, net 1  
Other    
Valuation Allowance [Line Items]    
Gross Deferred Asset (Liability), net 10  
Valuation Allowance (8)  
Deferred income tax assets, net $ 2  
v3.25.4
Income Taxes (Loss and Credit Carryforwards) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Income Tax Disclosure [Abstract]    
Foreign tax credit carryforwards $ 60  
Foreign net operating loss carryforwards 98  
Foreign net operating loss carryforwards 33  
State net operating loss carryforwards 782  
Research and development and other credit carryforwards $ 37 $ 49
v3.25.4
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 85 $ 74 $ 92
Increases related to current year tax positions 2 3 2
Increases related to prior year tax positions 20 0 0
Decreases related to prior year tax positions (28) (4) (2)
Increases related to tax positions from an acquisition 0 15 0
Settlements 0 0 (16)
Lapse of statute of limitations (5) (1) (2)
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions 2 (2) 0
Unrecognized tax benefits, ending balance $ 76 $ 85 $ 74
v3.25.4
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Loss Contingencies [Line Items]    
Self insurance reserve, noncurrent $ 51 $ 40
Accounts Payable and Accrued Liabilities    
Loss Contingencies [Line Items]    
Self insurance reserve, noncurrent 21 17
Other Current Liabilities    
Loss Contingencies [Line Items]    
Self insurance reserve, noncurrent 2 3
Other Liabilities    
Loss Contingencies [Line Items]    
Self insurance reserve, noncurrent $ 28 $ 20
v3.25.4
U.S. Government Matters (Details) - USD ($)
$ in Millions
 1 Months Ended
Sep. 22, 2023
Jun. 12, 2023
Mar. 31, 2022
Jan. 02, 2026
Jan. 03, 2025
Reserve for potentially disallowable costs incurred under government contracts          
United States Government Contract Work [Line Items]          
Accrued reserve for unallowable costs       $ 37 $ 41
First Kuwaiti Trading Company Arbitration          
United States Government Contract Work [Line Items]          
Damages awarded, value   $ 16      
Claims in unpaid bonuses   $ 70 $ 100    
First Kuwaiti Trading Company Arbitration | Settled Litigation          
United States Government Contract Work [Line Items]          
Funds received from litigation settlement $ 8        
v3.25.4
Leases (Narrative) (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2026
USD ($)
renewal
Jan. 03, 2025
USD ($)
Dec. 29, 2023
USD ($)
Operating Leased Assets [Line Items]      
Lease obligations (as a percentage) 95.00%    
Term of contract 12 months    
Renewal term increments 1 year    
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Liabilities, Current    
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other liabilities    
Operating lease ROU asset amortization $ 52 $ 48 $ 46
Other noncash operating lease costs 18 $ 15 $ 16
Short-term lease commitments $ 223    
Minimum      
Operating Leased Assets [Line Items]      
Number of renewal options | renewal 1    
v3.25.4
Leases (Schedule of Leasing Activity) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Leases [Abstract]      
Operating lease cost $ 70 $ 63 $ 62
Short-term lease cost 145 248 215
Total lease cost 215 311 277
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from operating leases 81 71 65
Financing cash flows from finance leases 8 11 11
Right-of-use assets obtained in exchange for new operating lease liabilities 29 106 60
Right-of-use assets obtained in exchange for new finance lease liabilities $ 10 $ 3 $ 11
Weighted-average remaining lease term - operating (in years) 6 years 6 years 6 years
Weighted-average remaining lease term - finance (in years) 2 years 2 years 2 years
Weighted-average discount rate - operating leases 6.30% 6.40% 6.20%
Weighted-average discount rate - finance leases 6.40% 5.10% 4.20%
v3.25.4
Leases (Schedule of Lease Maturity) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Operating Leases    
Fiscal 2026 $ 71  
Fiscal 2027 63  
Fiscal 2028 58  
Fiscal 2029 51  
Fiscal 2030 36  
Thereafter 67  
Total future payments 346  
Less imputed interest (54)  
Present value of future lease payments 292  
Less current portion of lease obligations (56) $ (58)
Noncurrent portion of lease obligations 236 $ 228
Finance Leases    
Fiscal 2026 5  
Fiscal 2027 3  
Fiscal 2028 2  
Fiscal 2029 0  
Fiscal 2030 0  
Thereafter 0  
Total future payments 10  
Less imputed interest (1)  
Present value of future lease payments 9  
Less current portion of lease obligations (5)  
Noncurrent portion of lease obligations $ 4  
v3.25.4
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 1,467 $ 1,394 $ 1,632
Other comprehensive income (loss), net of tax 18 (31) (33)
Ending balance 1,512 1,467 1,394
AOCL      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (946) (915) (882)
Other comprehensive income (loss) adjustments before reclassifications 31 (13)  
Amounts reclassified from AOCL (13) (18)  
Other comprehensive income (loss), net of tax 18 (31) (33)
Ending balance (928) (946) (915)
Accumulated foreign currency translation adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (320) (300)  
Other comprehensive income (loss) adjustments before reclassifications 72 (20)  
Amounts reclassified from AOCL 0 0  
Other comprehensive income (loss), net of tax 72 (20)  
Ending balance (248) (320) (300)
Accumulated pension liability adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (655) (644)  
Other comprehensive income (loss) adjustments before reclassifications (37) (15)  
Amounts reclassified from AOCL 4 4  
Other comprehensive income (loss), net of tax (33) (11)  
Ending balance (688) (655) (644)
Changes in fair value of derivatives      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 29 29  
Other comprehensive income (loss) adjustments before reclassifications (4) 22  
Amounts reclassified from AOCL (17) (22)  
Other comprehensive income (loss), net of tax (21) 0  
Ending balance $ 8 $ 29 $ 29
v3.25.4
Accumulated Other Comprehensive Loss (Schedule of Reclassification out of AOCI) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Interest Expense $ (158) $ (144) $ (115)
Tax (benefit) expenses (156) (129) (95)
Net income (loss) 403 381 $ (261)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated pension liability adjustments      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Prior service cost amortization (1) (1)  
Recognized actuarial loss (5) (4)  
Tax (benefit) expenses 2 1  
Net income (loss) (4) (4)  
Reclassification out of Accumulated Other Comprehensive Income | Changes in fair value for derivatives      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Interest Expense 21 28  
Tax (benefit) expenses (4) (6)  
Net income (loss) $ 17 $ 22  
v3.25.4
Share Repurchases (Details) - USD ($)
 12 Months Ended
Jan. 02, 2026
Feb. 20, 2025
Equity [Abstract]    
Additional amount authorized for repurchase program   $ 454,000,000
Stock repurchase program, authorized amount   $ 750,000,000
Remaining authorized repurchase amount $ 427,000,000  
Employee's earnings withheld (as of percentage) 10.00%  
v3.25.4
Share Repurchases (Schedule of Shares Repurchased) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Equity, Class of Treasury Stock [Line Items]      
Number of shares (in shares) 6,649,330 3,543,642  
Average price per share (usd per share) $ 49.44 $ 61.39  
Value of common stock repurchases $ 329 $ 218 $ 138
Number of shares (in shares) 120,188 227,616  
Average price per share (usd per share) $ 49.01 $ 59.64  
Value of common stock repurchases $ 6 $ 14  
Share Repurchase Program 2014      
Equity, Class of Treasury Stock [Line Items]      
Number of shares (in shares) 6,529,142 3,316,026  
Average price per share (usd per share) $ 49.45 $ 61.51  
Value of common stock repurchases $ 323 $ 204  
v3.25.4
Share-based Compensation and Incentive Plans (Narrative) (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2021
May 31, 2016
May 31, 2012
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Stock Compensation Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares authorized (in shares) 7,000,000.0 4,400,000 2,000,000      
Common stock reserved for issuance (in shares) 23,400,000     9,900,000    
Stock Compensation Plan | Restricted Stock Units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares authorized (in shares) 7,000,000.0          
Common stock reserved for issuance (in shares) 16,900,000     6,500,000    
Stock Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Expected term (in years)       10 years    
Number of options granted (in shares)       0 0 0
Options outstanding (in shares)       0    
Exercised (in shares)       28,298    
Exercised (usd per share)       $ 16.05    
Unrecognized compensation cost, net of estimated forfeitures       $ 0    
Share-based compensation expense       $ 0 $ 0 $ 0
Restricted Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Expected term (in years)       10 years    
Unrecognized compensation cost, net of estimated forfeitures       $ 23,000,000    
Weighted average grant-date fair value per share (usd per share)       $ 47.65 $ 59.78 $ 56.09
Restricted stock compensation expense       $ 16,000,000 $ 15,000,000 $ 15,000,000
Income tax benefit recognized in net income for share-based compensation       $ 3,000,000 3,000,000 3,000,000
Weighted average recognizing period of unrecognized compensation cost (in years)       1 year 8 months 19 days    
Number of shares, vested (in shares)       275,948    
Weighted-Average Fair Value On Vesting Date            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total fair value of shares vested based on the weighted-average fair value       $ 13,000,000 23,000,000 21,000,000
Weighted-Average Fair Value On Grant Date            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total fair value of shares vested based on the weighted-average fair value       14,000,000 16,000,000 14,000,000
Performance Shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation cost, net of estimated forfeitures       5,000,000    
Share-based compensation expense       $ 5,000,000 $ 6,000,000 $ 6,000,000
Award vesting period       3 years    
Number of shares, vested (in shares)       118,273    
Performance Shares | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued based on TSR performance, percentage       0.00%    
Performance Shares | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued based on TSR performance, percentage       200.00%    
Cash Performance Awards            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period       3 years 3 years 3 years
Average total shareholder return (as of percentage)       50.00% 50.00% 50.00%
Job income sold (as of percentage)       50.00% 50.00% 50.00%
Period of target level average       3 years 3 years 3 years
Number of shares, granted (in shares)       20,000,000 20,000,000 19,000,000
Number of cash performance based award units forfeited (in shares)       7,000,000 7,000,000 5,000,000
Outstanding awards balance (in shares)       45,000,000    
Expense for cash performance awards       $ 9,000,000 $ 16,000,000 $ 21,000,000
Liability for awards due within one year       12,000,000 17,000,000  
Liability for awards       $ 11,000,000 $ 16,000,000  
Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Maximum withhold earrings (as of percentage)       10.00%    
ESPP offering period       6 months    
Percentage of discount on stock price         7.00%  
ESPP stock issued (in shares)       246,000 156,000  
v3.25.4
Share-based Compensation and Incentive Plans (Schedule of Vested and Unvested RSUs) (Details) - Restricted Stock
 12 Months Ended
Jan. 02, 2026
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 527,729
Granted (in shares) | shares 528,046
Vested (in shares) | shares (275,948)
Forfeited (in shares) | shares (68,147)
Ending balance (in shares) | shares 711,680
Weighted Average Grant-Date Fair Value per Share  
Beginning balance (usd per share) | $ / shares $ 54.46
Granted (usd per share) | $ / shares 47.65
Vested (usd per share) | $ / shares 50.19
Forfeited (usd per share) | $ / shares 53.14
Ending balance (usd per share) | $ / shares $ 51.29
v3.25.4
Income (loss) per Share and Certain Related Information (Schedule Of Basic And Diluted Net Income (Loss) Per Share ) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Net income (loss) attributable to KBR from continuing operations:      
Net income (loss) from continuing operations $ 458 $ 379 $ (260)
Less: Net income attributable to noncontrolling interests included in continuing operations 7 5 4
Net income (loss) attributable to KBR from continuing operations 451 374 (264)
Less: Earnings allocable to participating securities 1 1 0
Basic net income (loss) attributable to KBR from continuing operations 450 373 (264)
Diluted net income (loss) attributable to KBR from continuing operations 450 373 (264)
Net income (loss) attributable to KBR from discontinued operations:      
Net income (loss) from discontinued operations, net of tax (55) 2 (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations (19) 1 0
Net income (loss) attributable to KBR from discontinued operations (36) 1 (1)
Basic net income (loss) attributable to KBR from discontinued operations (36) 1 (1)
Diluted net income (loss) attributable to KBR from discontinued operations $ (36) $ 1 $ (1)
Weighted average common shares outstanding:      
Basic weighted average common shares outstanding (in shares) 129 134 135
Diluted weighted average common shares outstanding (in shares) 129 134 135
Basic earnings (loss) per share      
Continuing operations (in usd per share) $ 3.49 $ 2.78 $ (1.96)
Discontinued operations (in usd per share) (0.28) 0.01 0
Basic earnings (loss) per share attributable to KBR (in usd per share) 3.21 2.79 (1.96)
Diluted earnings (loss) per share      
Continuing operations (in usd per share) 3.49 2.78 (1.96)
Discontinued operations (in usd per share) (0.28) 0.01 0
Diluted earnings (loss) per share attributable to KBR (in usd per share) $ 3.21 $ 2.79 $ (1.96)
v3.25.4
Income (loss) per Share and Certain Related Information (Narrative) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Feb. 19, 2026
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dividends declared to shareholders   $ 85 $ 80 $ 73
Cash dividends declared per share ( in usd per share)   $ 0.66 $ 0.60 $ 0.54
Subsequent Event        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Cash dividends declared per share ( in usd per share) $ 0.165      
Stock Compensation Plan        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares)   0.3 0.2 1.4
Convertible Debt Securities        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares)       4.0
Warrant        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares)       10.2
v3.25.4
Income (loss) per Share and Certain Related Information (Shares of Common Stock) (Details) - shares
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Beginning balance (in shares) 182,469,230 181,700,000
Common stock issued (in shares) 400,000 800,000
Ending balance (in shares) 182,891,428 182,469,230
v3.25.4
Income (loss) per Share and Certain Related Information (Shares of Treasury Stock) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Beginning balance (in shares) 50,033,621 46,600,000
Treasury stock acquired, net of ESPP shares issued (in shares) 6,400,000 3,400,000
Ending balance (in shares) 56,437,139 50,033,621
Beginning balance $ 1,494 $ 1,279
Treasury stock acquired, net of ESPP shares issued 324 215
Ending balance $ 1,818 $ 1,494
v3.25.4
Fair Value of Financial Instruments and Risk Management (Schedule of Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Carrying Value | Secured Debt | Term Loan A    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure $ 989 $ 1,006
Carrying Value | Secured Debt | Term Loan B    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 983 993
Carrying Value | Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 250 250
Carrying Value | Revolver | Revolver    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 395 345
Fair Value | Secured Debt | Term Loan A    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 989 1,006
Fair Value | Secured Debt | Term Loan B    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 989 996
Fair Value | Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure 246 240
Fair Value | Revolver | Revolver    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument, fair value disclosure $ 395 $ 345
v3.25.4
Fair Value of Financial Instruments and Risk Management (Carrying value and Foreign Currency Risk) (Details)
 12 Months Ended
Jan. 02, 2026
USD ($)
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]  
Maximum length of time hedged in balance sheet hedge 28 days
Balance Sheet Hedge  
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]  
Derivative, notional amount $ 117,000,000
v3.25.4
Fair Value of Financial Instruments and Risk Management (Schedule of Changes in Fair Value of Balance Sheet Hedges) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Fair Value Disclosures [Abstract]      
Balance Sheet Hedges - Fair Value $ (2) $ 0 $ 0
Balance Sheet Position - Remeasurement (5) (3) (6)
Net $ (7) $ (3) $ (6)
v3.25.4
Fair Value of Financial Instruments and Risk Management (Schedule of Interest Rate Swaps) (Details)
Jan. 02, 2026
USD ($)
Jan. 02, 2026
GBP (£)
March 2020 Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 400,000,000  
Fixed interest rate (as of percentage) 0.89% 0.89%
September 2022 Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 350,000,000  
Fixed interest rate (as of percentage) 3.43% 3.43%
March 2023 Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 205,000,000  
Fixed interest rate (as of percentage) 3.61% 3.61%
March 2023 Amortizing Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount | £   £ 104,000,000
Fixed interest rate (as of percentage) 3.81% 3.81%
September 2024 Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 200,000,000  
Fixed interest rate (as of percentage) 3.27% 3.27%
April 2025 Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 270,000,000  
Fixed interest rate (as of percentage) 3.39% 3.39%
April 2025 Forward Interest Rate Swaps    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 150,000,000  
Fixed interest rate (as of percentage) 3.38% 3.38%
v3.25.4
Fair Value of Financial Instruments and Risk Management (Interest Rate Risk) (Narrative) (Details) - Interest Rate Swap - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Fair value of interest rate swap assets (liabilities) $ 10 $ 37
Unrealized gain on derivatives 10 37
Other Current Assets    
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Fair value of interest rate swap assets (liabilities) 11 19
Other Assets    
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Fair value of interest rate swap assets (liabilities) 1 $ 18
Other Current Liabilities    
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Fair value of interest rate swap assets (liabilities) (1)  
Other Liabilities    
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Fair value of interest rate swap assets (liabilities) $ (1)  
v3.25.4
Fair Value of Financial Instruments and Risk Management (Sale of Receivables) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Fair Value Disclosures [Abstract]    
Sale of receivables $ 2,143 $ 3,117
Receivables sold $ 2,094  
v3.25.4
Fair Value of Financial Instruments and Risk Management (Schedule of Third-Party Financial Institutions) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Transfer of Financial Assets Accounted for as Sales [Roll Forward]    
Beginning balance $ 106 $ 135
Sale of receivables 2,143 3,117
Settlement of receivables (2,184) (3,127)
Cash collected, not yet remitted 0 (19)
Outstanding balances sold to financial institutions $ 65 $ 106
v3.25.4
Fair Value of Financial Instruments and Risk Management (Other Investments) (Details) - Mura
$ in Millions
 12 Months Ended
Jan. 02, 2026
USD ($)
Jan. 03, 2025
USD ($)
Equity Securities without Readily Determinable Fair Value [Line Items]    
Ownership percentage 0.17  
Carrying value of investment $ 136 $ 126
v3.25.4
Discontinued Operations (Narrative) (Details)
Jan. 02, 2026
Abandonment | HomeSafe  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Discontinued operation, ownership percentage in disposed asset 72.00%
v3.25.4
Discontinued Operations (Components of Net Income (Loss) Attributable to KBR From Discontinued Operations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2026
Jan. 03, 2025
Dec. 29, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income (loss) from discontinued operations, net of tax $ (55) $ 2 $ (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations (19) 1 0
Net income (loss) attributable to KBR from discontinued operations (36) 1 (1)
Abandonment | HomeSafe      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Revenues 67 32 0
Cost of revenues (83) (28) 0
Gross profit (loss) (16) 4 0
Selling, general and administrative expenses (30) (1) (1)
Loss on disposal (22) 0 0
Operating income (loss) (68) 3 (1)
Income (loss) from discontinued operations before income taxes (68) 3 (1)
Provision for income taxes 13 (1) 0
Net income (loss) from discontinued operations, net of tax (55) 2 (1)
Less: Net income (loss) attributable to noncontrolling interests included in discontinued operations (19) 1 0
Net income (loss) attributable to KBR from discontinued operations (36) $ 1 $ (1)
Asset impairments related to property, plant and equipment 64    
Asset write-offs 30    
Elimination of other liabilities $ 72    
v3.25.4
Discontinued Operations (Classes of Assets and Liabilities of Discontinued Operations) (Details) - USD ($)
$ in Millions
Jan. 02, 2026
Jan. 03, 2025
Assets    
Total current assets of discontinued operations $ 19 $ 21
Total non-current assets of discontinued operations 0 78
Liabilities    
Total current liabilities of discontinued operations 19 15
Total non-current liabilities of discontinued operations 0 69
Abandonment | HomeSafe    
Assets    
Cash and cash equivalents 5 8
Accounts receivable, net of allowance for credit losses 1 5
Contract assets 0 2
Other current assets 13 6
Total current assets of discontinued operations 19 21
Property, plant, and equipment, net of accumulated depreciation 0 52
Other assets 0 26
Total non-current assets of discontinued operations 0 78
Liabilities    
Accounts payable 8 5
Contract liabilities 2 8
Accrued salaries, wages and benefits 1 2
Other current liabilities 8 0
Total current liabilities of discontinued operations 19 15
Other liabilities 0 69
Total non-current liabilities of discontinued operations $ 0 $ 69