Leonardo DRS (DRS) 10-Q 30 Jul 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-41565
Entity Registrant Name	Leonardo DRS, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-2632319
Entity Address, Address Line One	2345 Crystal Drive
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Arlington
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22202
City Area Code	703
Local Phone Number	416-8000
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	DRS
Security Exchange Name	NASDAQ
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		263,702,807
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001833756
Current Fiscal Year End Date	--12-31

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues:
Total revenues	$ 753	$ 628	$ 1,441	$ 1,197
Cost of revenues:
Total cost of revenues	(584)	(483)	(1,119)	(921)
Gross profit	169	145	322	276
General and administrative expenses	(107)	(90)	(208)	(190)
Amortization of intangibles	(6)	(5)	(11)	(11)
Other operating expenses, net	(1)	(8)	(5)	(8)
Operating earnings	55	42	98	67
Interest expense	(7)	(9)	(12)	(17)
Other, net	(1)	0	(2)	(1)
Earnings before taxes	47	33	84	49
Income tax provision (benefit)	9	(2)	17	2
Net earnings	$ 38	$ 35	$ 67	$ 47
Net earnings per share from common stock:
Basic earnings per share (in dollars per share)	$ 0.14	$ 0.14	$ 0.25	$ 0.18
Diluted earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.25	$ 0.18
Products
Revenues:
Total revenues	$ 731	$ 590	$ 1,354	$ 1,110
Cost of revenues:
Total cost of revenues	(572)	(458)	(1,060)	(861)
Services
Revenues:
Total revenues	22	38	87	87
Cost of revenues:
Total cost of revenues	$ (12)	$ (25)	$ (59)	$ (60)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net earnings	$ 38	$ 35	$ 67	$ 47
Other comprehensive income (loss):
Foreign currency translation (loss) gain, net of income taxes	(1)	1	(1)	1
Pension and other postretirement benefit plan adjustments, net of income taxes	1	1	1	1
Other comprehensive income (loss), net of income taxes	0	2	0	2
Total comprehensive income	$ 38	$ 37	$ 67	$ 49

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 149	$ 467
Accounts receivable, net	188	151
Contract assets	1,037	908
Inventories	367	329
Prepaid expenses	31	21
Other current assets	33	42
Total current assets	1,805	1,918
Noncurrent assets:
Property, plant and equipment, net	419	402
Intangible assets, net	144	151
Goodwill	1,238	1,238
Deferred tax assets	122	123
Other noncurrent assets	91	89
Total noncurrent assets	2,014	2,003
Total assets	3,819	3,921
Current liabilities:
Short-term borrowings and current portion of long-term debt	22	57
Accounts payable	263	398
Contract liabilities	348	335
Other current liabilities	263	288
Total current liabilities	896	1,078
Noncurrent liabilities:
Long-term debt	351	349
Pension and other postretirement benefit plan liabilities	36	36
Deferred tax liabilities	4	4
Other noncurrent liabilities	126	129
Total noncurrent liabilities	517	518
Commitments and contingencies (Note 13)
Shareholders' equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; none issued	0	0
Common stock, $0.01 par value: 350,000,000 shares authorized; 263,660,716 and 262,525,390 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	3	3
Additional paid-in capital	5,189	5,175
Accumulated deficit	(2,739)	(2,806)
Accumulated other comprehensive loss	(47)	(47)
Total shareholders' equity	2,406	2,325
Total liabilities and shareholders' equity	$ 3,819	$ 3,921

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	350,000,000	350,000,000
Common stock, issued (in shares)	263,660,716	262,525,390
Common stock, outstanding (in shares)	263,660,716	262,525,390

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net earnings	$ 67	$ 47
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	45	42
Deferred income taxes	1	6
Share-based compensation expense	11	8
Other	1	0
Changes in assets and liabilities:
Accounts receivable	(37)	(32)
Contract assets	(129)	(146)
Inventories	(38)	(59)
Prepaid expenses	(10)	3
Other current assets	9	(25)
Other noncurrent assets	14	6
Defined benefit obligations	0	(2)
Other current liabilities	(28)	(91)
Other noncurrent liabilities	(15)	5
Accounts payable	(135)	(167)
Contract liabilities	13	59
Net cash used in operating activities	(231)	(346)
Investing activities
Capital expenditures	(44)	(27)
Proceeds from sales of assets	0	1
Net cash used in investing activities	(44)	(26)
Financing activities
Net decrease in third party borrowings (maturities of 90 days or less)	(35)	(4)
Repayment of third party debt	(141)	(291)
Borrowings of third party debt	135	395
Proceeds from stock issuance	7	6
Cash outlay to reacquire equity instruments	(4)	(1)
Other	(5)	(4)
Net cash (used in) provided by financing activities	(43)	101
Effect of exchange rate changes on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(318)	(271)
Cash and cash equivalents at beginning of year	467	306
Cash and cash equivalents at end of period	$ 149	$ 35

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Balance at beginning of period at Dec. 31, 2022	$ 2,127	$ 3	$ 5,147	$ (49)	$ (2,974)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	49			2	47
Share-based compensation activity	13		13
Balance at end of period at Jun. 30, 2023	2,189	3	5,160	(47)	(2,927)
Balance at beginning of period at Dec. 31, 2023	2,325	3	5,175	(47)	(2,806)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	67				67
Share-based compensation activity	14		14
Balance at end of period at Jun. 30, 2024	$ 2,406	$ 3	$ 5,189	$ (47)	$ (2,739)

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies A. Organization Leonardo DRS, Inc., together with its wholly owned subsidiaries (hereinafter, “DRS,” “the Company,” “us,” “our,” or “we”) is a supplier of defense electronics products, systems and military support services. The Company’s largest shareholder is Leonardo S.p.A (hereinafter, “Leonardo S.p.A.”), an Italian multi-national aerospace, defense and security company headquartered in Rome, Italy, through its ultimate sole ownership of Leonardo US Holding, LLC (“US Holding”). US Holding is the majority stockholder of the Company. DRS is a provider of defense products and technologies that are used across land, air, sea, space and cyber domains. Our diverse array of defense systems and solutions are offered to all branches of the U.S. military, major aerospace and defense prime contractors, government intelligence agencies, international military customers and industrial markets for deployment on a wide range of military platforms. We focus our capabilities in areas of critical importance to the U.S. military, such as advanced sensing, network computing, force protection and electric power and propulsion. These capabilities directly align with our two reportable operating segments: Advanced Sensing and Computing and Integrated Mission Systems. The U.S. Department of Defense (the “DoD”) is our largest customer and accounts for approximately 82% and 81% of our total revenues as an end-user for the six months ended June 30, 2024 and June 30, 2023, respectively. Specific international and commercial market opportunities exist within these segments and comprise approximately 18% and 19% of our total revenues for the six months ended June 30, 2024 and June 30, 2023, respectively. Our two reportable segments reflect the way performance is assessed and resources are allocated by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). Advanced Sensing and Computing Our Advanced Sensing and Computing (“ASC”) segment designs, develops and manufactures sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution by our customers. Our leading sensing capabilities span applications including missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared (“EO/IR”), signals intelligence (“SIGINT”) and other intelligence systems, electronic warfare (“EW”), ground vehicle sensing, next generation active electronically scanned array tactical radars, dismounted soldier sensing and space sensing. Across our offerings, we are focused on advancing sensor distance, precision, clarity, definition, spectral depth and effectiveness. Furthermore, we seek to leverage our multi-decade experience to optimize size, weight, power and cost tailored to our customers’ specific mission requirements, including in space-based applications for earth surveillance and missile tracking. Our sensing capabilities are complemented by our rugged, trusted and cyber resilient network computing products. Our network computing offering is utilized across a broad range of mission applications including platform computing on ground and shipboard (both surface ship and submarine) for advanced battle management, combat systems, radar, command and control (“C2”), tactical networks, tactical computing and communications. Our network computing products support the DoD’s need for greater situational understanding at the tactical edge and permits data to be rapidly transmitted securely from command centers to forward-positioned defense assets. Integrated Mission Systems Our Integrated Mission Systems (“IMS”) segment designs, develops, manufactures and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems for the U.S. and allied defense customers. Our naval power and propulsion systems are providing next-generation power capabilities for the future fleet. DRS is currently a leading provider of next-generation electrical propulsion systems for the U.S. Navy. We provide power conversion, control, distribution and propulsion systems for the U.S. Navy’s top priority shipbuilding programs, including the Columbia Class ballistic missile submarine, the first modern U.S. electric drive submarine. We believe DRS is well positioned to meet the needs of an increasingly electrified fleet with our high-efficiency, power dense permanent magnet motors, energy storage systems and associated efficient, rugged and compact power conversion, electrical actuation systems, and advanced cooling technologies. DRS has a long history of providing a number of other critical products to the U.S. Navy with a significant installed base on submarines, aircraft carriers and other surface ships including motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems for electronics and ship stores refrigeration. Our technologies and systems help protect U.S. forces and assets against increasingly sophisticated and proliferating threats. DRS is an integrator of systems in ground vehicles for short-range air defense, counter-unmanned aerial systems (“C-UAS”), and vehicle survivability and protection. This integrator role includes utilizing radars, EW equipment, reconnaissance and surveillance systems, modular combat vehicle turrets, and stabilized sensor suites, and kinetic countermeasures for short-range air defense. Our force protection systems, including solutions for C-UAS, short-range air defense systems and active protection systems used to defend ground combat vehicles, help protect personnel and defense assets from these growing threats. See Note 15 : Segment Information for further information regarding our operating segments. B. Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of DRS, its wholly owned subsidiaries and its controlling interests and contain all adjustments, which are of a normal and recurring nature, considered necessary by management to present fairly the financial position, results of operations and cash flows for the periods presented. Interests in ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts significant influence, the Company applies the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Interim Financial Statements . The unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These rules and regulations permit some of the information and footnote disclosures included in financial statements prepared in accordance with U.S. GAAP to be condensed or omitted. These unaudited Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. C. New Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires enhanced disclosures about significant segment expenses. The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. We are currently evaluating the impact of adopting this new pronouncement. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires additional disclosures regarding rate reconciliation, income taxes paid, and other income tax disclosures. The new standard is effective for fiscal years beginning after December 15, 2024, on a prospective basis. We are currently evaluating the impact of adopting this new pronouncement.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Contract Estimates Revenues for the majority of our contracts are measured using the over time, percentage of completion cost-to-cost method of accounting to calculate percentage of completion. We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Due to the long-term nature of many of our contracts, developing the estimated total cost at completion often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance and the risk and impact of delayed performance. After establishing the estimated total cost at completion, we follow a standard Estimate at Completion (“EAC”) process in which we review the progress and performance on our ongoing contracts on a routine basis. Adjustments to original estimates for a contract's revenue, estimated costs at completion and estimated profit or loss often are required as work progresses under a contract, as experience is gained and as more information is obtained, even though the scope of work required under the contract may not change and are also required if contract modifications occur. When adjustments in estimated total costs at completion are determined, the related impact on revenue and operating income are recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Any anticipated losses on these contracts are fully recognized in the period in which the losses become evident. Net EAC adjustments had the following impacts for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Revenue and operating earnings $ (10) $ (11) $ (19) $ (20) Total % of revenue 1 % 2 % 1 % 2 % Net earnings $ (8) $ (9) $ (15) $ (16) Impact on diluted earnings per share $ (0.03) $ (0.03) $ (0.06) $ (0.06) The impacts noted above are attributed primarily to changes in our firm-fixed price development type programs. As changes happen in the design required to achieve contractual specifications, those changes often result in a change in the programs’ estimates and related profitability. Contract Assets and Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities. Contract assets and contract liabilities as of the dates presented were: (Dollars in millions) June 30, 2024 December 31, 2023 Contract assets $ 1,037 $ 908 Contract liabilities 348 335 Revenue recognized in the six months ended June 30, 2024 and June 30, 2023, that was included in the contract liability balance at the beginning of each period was $222 million and $129 million, respectively. Value of Remaining Performance Obligations The value of remaining performance obligations, which we also refer to as total backlog, includes the following components: • Funded - Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts. • Unfunded - Unfunded backlog represents the revenue value of firm orders for products and services under existing contracts for which funding has not yet been appropriated less funding previously recognized on these contracts. As of June 30, 2024, our total backlog was $7,925 million. We expect to recognize approximately 19% of our June 30, 2024 backlog as revenue over the next six months, with the remainder to be recognized thereafter. Approximately 46% of our total backlog relates to long-term contracts on electric power and propulsion programs with the U.S. Navy, which are expected to be recognized as revenue over a span of up to 15 years. Disaggregation of Revenue ASC : ASC revenue is primarily derived from U.S. government development and production contracts and is generally recognized using the over time, percentage of completion cost-to-cost method of accounting. We disaggregate ASC revenue by geographical region, customer relationship and contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of ASC revenue and cash flows are affected by economic factors: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Revenue by Geographical Region United States $ 396 $ 340 $ 733 $ 670 International 91 62 181 112 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 Revenue by Customer Relationship Prime contractor $ 253 $ 181 $ 416 $ 343 Subcontractor 234 221 498 439 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 Revenue by Contract Type Firm-Fixed Price $ 402 $ 335 $ 752 $ 659 Flexibly Priced (1) 85 67 162 123 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 ________________ (1) Includes revenue derived from cost-plus and time-and-materials contracts. IMS : IMS revenue is primarily derived from U.S. government development and production contracts and is generally recognized using the over time, percentage of completion cost-to-cost method of accounting. We disaggregate IMS revenue by geographical region, customer relationship and contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Revenue by Geographical Region United States $ 262 $ 222 $ 519 $ 408 International 4 4 8 7 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 Revenue by Customer Relationship Prime contractor $ 59 $ 48 $ 124 $ 94 Subcontractor 207 178 403 321 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 Revenue by Contract Type Firm-Fixed Price $ 214 $ 183 $ 432 $ 338 Flexibly Priced (1) 52 43 95 77 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 ________________ (1) Includes revenue derived from cost-plus and time-and-materials contracts.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consist of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Accounts receivable $ 189 $ 152 Less allowance for credit losses (1) (1) Accounts receivable, net $ 188 $ 151 The Company maintains certain agreements with financial institutions to sell certain trade receivables. See Note 4: Sale of Receivables for more information.

Sale of Receivables

Sale of Receivables	6 Months Ended
	Jun. 30, 2024
Transfers and Servicing [Abstract]
Sale of Receivables	Sale of Receivables The Company is party to factoring facilities with various financial institutions (the “purchasers”) with an aggregate capacity of $225 million and $275 million as of June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024 and June 30, 2023, the Company incurred immaterial purchase discount fees which are presented in general and administrative expenses on the Consolidated Statements of Earnings. The table below summarizes the activity under the factoring facilities: Six Months Ended June 30, (Dollars in millions) 2024 2023 Beginning balance $ 192 $ 243 Sales of receivables 50 90 Cash returned to purchasers (205) (271) Outstanding balance sold to purchasers 37 62 Cash collected, not remitted to purchasers (1) (1) (6) Remaining sold receivables $ 36 $ 56 ________________ (1) Represents cash collected on behalf of purchasers and not yet remitted. This balance is included within short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheets. See Note 10: Debt for further information.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Raw materials $ 79 $ 66 Work in progress 279 254 Finished goods 9 9 Total inventories $ 367 $ 329

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment by major asset class consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Land, buildings and improvements $ 382 $ 342 Plant and machinery 199 197 Equipment and other 338 334 Total property, plant and equipment, at cost 919 873 Less accumulated depreciation (500) (471) Total property, plant and equipment, net $ 419 $ 402 Depreciation expense related to property, plant and equipment was $17 million and $34 million for the three and six months ended June 30, 2024, respectively, and $15 million and $31 million for the three and six months ended June 30, 2023, respectively.

Other Liabilities

Other Liabilities	6 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Other Liabilities	Other Liabilities A summary of significant other liabilities by balance sheet caption follows: (Dollars in millions) June 30, 2024 December 31, 2023 Salaries, wages and accrued bonuses $ 52 $ 73 Fringe benefits 67 63 Litigation 2 2 Restructuring costs 6 10 Provision for contract losses 42 36 Operating lease liabilities 26 23 Taxes payable 22 46 Other (1) 46 35 Total other current liabilities $ 263 $ 288 Operating lease liabilities $ 70 $ 68 Unrecognized tax benefits 36 36 Other (1) 20 25 Total other noncurrent liabilities $ 126 $ 129 ________________ (1) Consists primarily of warranty reserves and provision for an acquired onerous contract. See Note 13: Commitments and Contingencies for more information regarding the warranty provision.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets consists of the following: June 30, 2024 December 31, 2023 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired intangible assets $ 1,087 $ (951) $ 136 $ 1,087 $ (940) $ 147 Patents and licenses 14 (6) 8 10 (6) 4 Total intangible assets $ 1,101 $ (957) $ 144 $ 1,097 $ (946) $ 151 Amortization expense related to intangible assets was $6 million and $11 million for the three and six months ended June 30, 2024, respectively, and $5 million and $11 million for the three and six months ended June 30, 2023, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was 19.1% and 20.2% for the three and six months ended June 30, 2024, respectively, and (6.1)% and 4.1% for the three and six months ended June 30, 2023, respectively. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2024 and December 31, 2023 is as follows: (Dollars in millions) June 30, 2024 December 31, 2023 Deferred tax assets $ 258 $ 258 Less valuation allowance 22 21 Deferred tax assets 236 237 Deferred tax liabilities 118 118 Net deferred tax asset $ 118 $ 119 Our deferred tax balance associated with our retirement benefit plans includes deferred tax assets of $8 million and $9 million as of June 30, 2024 and December 31, 2023, respectively, that are recorded in accumulated other comprehensive earnings to recognize the funded status of our retirement plans.

Debt

Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt The Company’s debt consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Term Loan A $ 208 $ 214 Outstanding revolver — — Finance lease and other 165 158 Short-term borrowings 1 35 Total debt principal 374 407 Less unamortized debt issuance costs and discounts (1) (1) Total debt, net 373 406 Less short-term borrowings and current portion of long-term debt (22) (57) Total long-term debt $ 351 $ 349 Term Loans In November 2022, the Company entered into a senior unsecured credit agreement with Bank of America in the amount of $500 million (the “2022 Credit Agreement”) with a maturity of November 29, 2027. The 2022 Credit Agreement provides for a term loan of $225 million bearing interest at a variable rate generally based on the Secured Overnight Financing Rate (“SOFR”), plus a spread ranging from 1.48% to 2.10% depending on the leverage ratio, as defined in the 2022 Credit Agreement, or an alternative variable rate based on the higher of the Bank of America prime rate, the federal funds rate, or a rate generally based on the SOFR, in each case subject to an additional basis point spread as defined in the 2022 Credit Agreement (“2022 Term Loan A”). Interest is payable quarterly in arrears. The outstanding balance of the 2022 Term Loan A at June 30, 2024 was $208 million. The fair value of the 2022 Term Loan A at June 30, 2024 was approximately $203 million; however, the Company has the ability to prepay the outstanding principal balance without penalty. The fair value of the Company’s outstanding debt obligations is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. Credit Facilities The 2022 Credit Agreement provides for a revolving credit facility available for working capital needs of the Company (“the 2022 Revolving Credit Facility”). As of June 30, 2024 and December 31, 2023, the 2022 Revolving Credit Facility had a limit of $275 million. Loans under the 2022 Revolving Credit Facility bear interest at a variable rate generally based on the SOFR, plus a spread ranging from 1.48% to 2.10% depending on the leverage ratio, as defined in the 2022 Credit Agreement, or an alternative variable rate based on the higher of the Bank of America prime rate, the federal funds rate, or a rate generally based on the SOFR, in each case subject to an additional basis point spread as defined in the 2022 Credit Agreement. The Company also pays a commitment fee ranging between 0.20% and 0.35% depending on the Company’s leverage ratio applied to the unused balance of the 2022 Revolving Credit Facility. There was no outstanding balance on the 2022 Revolving Credit Facility as of June 30, 2024 and December 31, 2023. The weighted average interest rate on the 2022 Revolving Credit Facility as of June 30, 2024 was 6.79%. The Company also maintains uncommitted working capital credit facilities with certain financial institutions in the aggregate of $115 million and $65 million at June 30, 2024 and December 31, 2023, respectively (the “Financial Institution Credit Facilities”). The sole purpose of the Financial Institution Credit Facilities is to support standby letter of credit issuances on contracts with customers. The Company had letters of credit outstanding of approximately $37 million and $41 million as of June 30, 2024 and December 31, 2023, respectively, which reduces the available capacity of the Financial Institution Credit Facilities by an equal amount. Short-term Borrowings As of June 30, 2024 and December 31, 2023, the Company recognized $1 million and $35 million, respectively, collected on behalf of the purchasers of our trade receivables pursuant to our factoring arrangements as short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheets, which approximates its fair value. Refer to Note 4: Sale of Receivables for more information.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	6 Months Ended
	Jun. 30, 2024
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits	Pension and Other Postretirement Benefits The following tables provide certain information regarding the Company's pension, postretirement and supplemental retirement plans for the periods presented: Defined Benefit Pension Plans Postretirement Benefit Supplemental Retirement Plans Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 2024 2023 Interest cost $ 2 $ 2 $ — $ — $ 1 $ — Expected return on plan assets (1) (2) — — — — Amortization of net actuarial loss — 1 — — — — Net periodic benefit cost $ 1 $ 1 $ — $ — $ 1 $ — Defined Benefit Pension Plans Postretirement Benefit Supplemental Retirement Plans Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 2024 2023 Interest cost $ 4 $ 4 $ — $ — $ 1 $ — Expected return on plan assets (3) (3) — — — — Amortization of net actuarial loss — 1 — — — — Net periodic benefit cost $ 1 $ 2 $ — $ — $ 1 $ — Pension related expenses are reflected in cost of revenues and general and administrative expenses on the Consolidated Statements of Earnings.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2024 2023 2024 2023 Net earnings $ 38 $ 35 $ 67 $ 47 Basic weighted average number of shares outstanding 263 261 263 261 Impact of dilutive share-based awards 4 3 4 2 Diluted weighted average number of shares outstanding 267 264 267 263 Earnings per share attributable to common shareholders - basic $ 0.14 $ 0.14 $ 0.25 $ 0.18 Earnings per share attributable to common shareholders - diluted $ 0.14 $ 0.13 $ 0.25 $ 0.18 Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during each period. The computation of diluted EPS includes the dilutive effect of outstanding share-based compensation awards (which primarily consist of employee stock options, restricted stock units, and performance-based restricted stock units). The computation of diluted EPS excludes the effect of the potential exercise of stock awards when the average market price of the common stock is lower than the exercise price of the stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted EPS excludes stock awards whose issuance is contingent upon the satisfaction of certain performance vesting conditions that have not yet been achieved.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments The Company’s commitments are primarily related to our lease agreements, purchase obligations, and credit agreements. Contingencies From time to time we are subject to certain legal proceedings and claims in the ordinary course of business. These matters are subject to many uncertainties and it is possible that some of these matters ultimately could be decided, resolved or settled in a manner adverse to us. Although the precise amount of liability that may result from these matters is not ascertainable, the Company believes that any amounts exceeding the Company's recorded accruals should not materially adversely affect the Company's financial condition or liquidity. It is possible, however, that the ultimate resolution of those matters could result in a material adverse effect on the Company's results of operations and/or cash flows from operating activities for a particular reporting period. We establish reserves for specific legal matters when we determine that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. The Company reviews the developments in contingencies that could affect the amount of the reserves that have been previously recorded. The Company adjusts provisions and changes to disclosures accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Significant judgment is required to determine both the probability and the estimated amount of any potential losses. As a government contractor, with customers including the U.S. government as well as various state and local government entities, the Company may be subject to audits, investigations and claims with respect to its contract performance, pricing, costs, cost allocations and procurement practices. Additionally, amounts billed under such contracts, including direct and indirect costs, are subject to potential adjustments before final settlement. Management believes that adequate provisions for such potential audits, investigations, claims and contract adjustments, if any, have been made in the financial statements. Product Warranties Product warranty costs generally are accrued in proportion to product revenue realized in conjunction with our over time revenue recognition policy. Product warranty expense is recognized based on the term of the product warranty, generally one year to three years, and the related estimated costs, considering historical claims expense. Accrued warranty costs are reduced as these costs are incurred and as the warranty period expires, and otherwise may be modified as specific product performance issues are identified and resolved. The following is a summary of changes in the product warranty balances during the six months ended June 30, 2024: (Dollars in millions) Balance at December 31, 2023 $ 26 Additional provision 12 Reversal and utilization (11) Balance at June 30, 2024 $ 27

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company has related party sales with the ultimate majority stockholder and its other affiliates that occur in the regular course of business. Related party sales for these transactions included in revenues were $3 million and $11 million for the three and six months ended June 30, 2024, respectively, and $6 million and $11 million for the three and six months ended June 30, 2023, respectively. The Company also has related party purchases with the ultimate majority stockholder and its other affiliates that occur in the regular course of business. Related party purchases for these transactions are included in cost of revenues and were immaterial for the three and six months ended June 30, 2024 and June 30, 2023. The receivables related to these transactions with the ultimate majority stockholder and its other affiliates of $6 million and $8 million, respectively, and payables of $3 million and $4 million, respectively, as of June 30, 2024 and December 31, 2023, are included in accounts receivable, net and accounts payable in our Consolidated Balance Sheets. In addition, there was a related party balance in contract assets of $4 million at June 30, 2024.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information Operating segments represent components of an enterprise for which separate financial information is available that is regularly reviewed by the CODM in determining how to allocate resources and assess performance. Our Chief Executive Officer is our CODM and he uses a variety of measures to assess the performance of the Company as a whole, depending on the nature of the activity. The Company’s operating and reportable segments consist of ASC and IMS. All other operations, which consists primarily of DRS corporate headquarters and certain non-operating subsidiaries of the Company, are grouped in Corporate & Eliminations. We primarily use adjusted EBITDA, a non-GAAP financial measure, to manage the Company and allocate resources. Adjusted EBITDA of our business segments includes our net earnings before income taxes, amortization of acquired intangible assets, depreciation, restructuring costs, interest, deal-related transaction costs, other non-operating expenses such as foreign exchange, non-service pension expenditures, legal liability accrual reversals, and other one-time non-operational events as well as gains (losses) on business disposals. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of our operations on a consistent basis from period to period and provide an additional understanding of factors and trends affecting our business segments. This measure assists the CODM in assessing segment operating performance consistently over time without the impact of our capital structure, asset base and items outside the control of the management team and expenses that do not relate to our core operations. Certain information related to our segments for the periods ended June 30, 2024 and June 30, 2023 is presented in the following tables. Consistent accounting policies have been applied by all segments within the Company, within all reporting periods. A description of our reportable segments as of June 30, 2024 and June 30, 2023 has been included in Note 1: Summary of Significant Accounting Policies . Intersegment sales are generally transferred at cost to the buying segment, and the sourcing segment does not recognize a profit. Such intercompany operating income is eliminated in consolidation, so that the Company’s total revenues and operating earnings reflect only those transactions with external customers. Total revenues and intersegment revenues by segment for the periods ended June 30, 2024 and June 30, 2023 consists of the following: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 ASC $ 492 $ 404 $ 925 $ 795 IMS 266 226 527 415 Corporate & Eliminations (5) (2) (11) (13) Total revenues $ 753 $ 628 $ 1,441 $ 1,197 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 ASC $ 5 $ 2 $ 11 $ 13 IMS — — — — Total intersegment revenues $ 5 $ 2 $ 11 $ 13 Reconciliation of reportable segment adjusted EBITDA to net earnings consists of the following: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Adjusted EBITDA ASC $ 55 $ 36 $ 96 $ 73 IMS 27 26 56 38 Corporate & Eliminations — — — — Total adjusted EBITDA $ 82 $ 62 $ 152 $ 111 Amortization of intangibles (6) (5) (11) (11) Depreciation (17) (15) (34) (31) Restructuring costs (1) (8) (5) (8) Interest expense (7) (9) (12) (17) Deal-related transaction costs (3) (1) (4) (3) Other one-time non-operational events (1) 9 (2) 8 Income tax (provision) benefit (9) 2 (17) (2) Net earnings $ 38 $ 35 $ 67 $ 47

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net earnings	$ 38	$ 35	$ 67	$ 47

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
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

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Segment Reporting	Our two reportable segments reflect the way performance is assessed and resources are allocated by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). Advanced Sensing and Computing Our Advanced Sensing and Computing (“ASC”) segment designs, develops and manufactures sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution by our customers. Our leading sensing capabilities span applications including missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared (“EO/IR”), signals intelligence (“SIGINT”) and other intelligence systems, electronic warfare (“EW”), ground vehicle sensing, next generation active electronically scanned array tactical radars, dismounted soldier sensing and space sensing. Across our offerings, we are focused on advancing sensor distance, precision, clarity, definition, spectral depth and effectiveness. Furthermore, we seek to leverage our multi-decade experience to optimize size, weight, power and cost tailored to our customers’ specific mission requirements, including in space-based applications for earth surveillance and missile tracking. Our sensing capabilities are complemented by our rugged, trusted and cyber resilient network computing products. Our network computing offering is utilized across a broad range of mission applications including platform computing on ground and shipboard (both surface ship and submarine) for advanced battle management, combat systems, radar, command and control (“C2”), tactical networks, tactical computing and communications. Our network computing products support the DoD’s need for greater situational understanding at the tactical edge and permits data to be rapidly transmitted securely from command centers to forward-positioned defense assets. Integrated Mission Systems Our Integrated Mission Systems (“IMS”) segment designs, develops, manufactures and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems for the U.S. and allied defense customers. Our naval power and propulsion systems are providing next-generation power capabilities for the future fleet. DRS is currently a leading provider of next-generation electrical propulsion systems for the U.S. Navy. We provide power conversion, control, distribution and propulsion systems for the U.S. Navy’s top priority shipbuilding programs, including the Columbia Class ballistic missile submarine, the first modern U.S. electric drive submarine. We believe DRS is well positioned to meet the needs of an increasingly electrified fleet with our high-efficiency, power dense permanent magnet motors, energy storage systems and associated efficient, rugged and compact power conversion, electrical actuation systems, and advanced cooling technologies. DRS has a long history of providing a number of other critical products to the U.S. Navy with a significant installed base on submarines, aircraft carriers and other surface ships including motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems for electronics and ship stores refrigeration. Our technologies and systems help protect U.S. forces and assets against increasingly sophisticated and proliferating threats. DRS is an integrator of systems in ground vehicles for short-range air defense, counter-unmanned aerial systems (“C-UAS”), and vehicle survivability and protection. This integrator role includes utilizing radars, EW equipment, reconnaissance and surveillance systems, modular combat vehicle turrets, and stabilized sensor suites, and kinetic countermeasures for short-range air defense. Our force protection systems, including solutions for C-UAS, short-range air defense systems and active protection systems used to defend ground combat vehicles, help protect personnel and defense assets from these growing threats.
Basis of Presentation	Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of DRS, its wholly owned subsidiaries and its controlling interests and contain all adjustments, which are of a normal and recurring nature, considered necessary by management to present fairly the financial position, results of operations and cash flows for the periods presented. Interests in ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts significant influence, the Company applies the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Interim Financial Statements . The unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These rules and regulations permit some of the information and footnote disclosures included in financial statements prepared in accordance with U.S. GAAP to be condensed or omitted.
New Accounting Pronouncements	New Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires enhanced disclosures about significant segment expenses. The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. We are currently evaluating the impact of adopting this new pronouncement. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires additional disclosures regarding rate reconciliation, income taxes paid, and other income tax disclosures. The new standard is effective for fiscal years beginning after December 15, 2024, on a prospective basis. We are currently evaluating the impact of adopting this new pronouncement.
Revenue from Contracts with Customers	Contract Estimates Revenues for the majority of our contracts are measured using the over time, percentage of completion cost-to-cost method of accounting to calculate percentage of completion. We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Due to the long-term nature of many of our contracts, developing the estimated total cost at completion often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance and the risk and impact of delayed performance. After establishing the estimated total cost at completion, we follow a standard Estimate at Completion (“EAC”) process in which we review the progress and performance on our ongoing contracts on a routine basis. Adjustments to original estimates for a contract's revenue, estimated costs at completion and estimated profit or loss often are required as work progresses under a contract, as experience is gained and as more information is obtained, even though the scope of work required under the contract may not change and are also required if contract modifications occur. When adjustments in estimated total costs at completion are determined, the related impact on revenue and operating income are recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Any anticipated losses on these contracts are fully recognized in the period in which the losses become evident. Contract Assets and Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers before revenue is Value of Remaining Performance Obligations The value of remaining performance obligations, which we also refer to as total backlog, includes the following components: • Funded - Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts. • Unfunded - Unfunded backlog represents the revenue value of firm orders for products and services under existing contracts for which funding has not yet been appropriated less funding previously recognized on these contracts.
Pension and Other Postretirement Benefits	Pension related expenses are reflected in cost of revenues and general and administrative expenses on the Consolidated Statements of Earnings.
Earnings Per Share	Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during each period. The computation of diluted EPS includes the dilutive effect of outstanding share-based compensation awards (which primarily consist of employee stock options, restricted stock units, and performance-based restricted stock units). The computation of diluted EPS excludes the effect of the potential exercise of stock awards when the average market price of the common stock is lower than the exercise price of the stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted EPS excludes stock awards whose issuance is contingent upon the satisfaction of certain performance vesting conditions that have not yet been achieved.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Change in Estimate at Completion Adjustments	Net EAC adjustments had the following impacts for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Revenue and operating earnings $ (10) $ (11) $ (19) $ (20) Total % of revenue 1 % 2 % 1 % 2 % Net earnings $ (8) $ (9) $ (15) $ (16) Impact on diluted earnings per share $ (0.03) $ (0.03) $ (0.06) $ (0.06)
Schedule of Contract Assets and Contract Liabilities	Contract assets and contract liabilities as of the dates presented were: (Dollars in millions) June 30, 2024 December 31, 2023 Contract assets $ 1,037 $ 908 Contract liabilities 348 335
Schedule of Disaggregation of Revenue	We believe these categories best depict how the nature, amount, timing and uncertainty of ASC revenue and cash flows are affected by economic factors: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Revenue by Geographical Region United States $ 396 $ 340 $ 733 $ 670 International 91 62 181 112 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 Revenue by Customer Relationship Prime contractor $ 253 $ 181 $ 416 $ 343 Subcontractor 234 221 498 439 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 Revenue by Contract Type Firm-Fixed Price $ 402 $ 335 $ 752 $ 659 Flexibly Priced (1) 85 67 162 123 Intersegment Sales 5 2 11 13 Total $ 492 $ 404 $ 925 $ 795 ________________ (1) Includes revenue derived from cost-plus and time-and-materials contracts. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Revenue by Geographical Region United States $ 262 $ 222 $ 519 $ 408 International 4 4 8 7 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 Revenue by Customer Relationship Prime contractor $ 59 $ 48 $ 124 $ 94 Subcontractor 207 178 403 321 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 Revenue by Contract Type Firm-Fixed Price $ 214 $ 183 $ 432 $ 338 Flexibly Priced (1) 52 43 95 77 Intersegment Sales — — — — Total $ 266 $ 226 $ 527 $ 415 ________________ (1) Includes revenue derived from cost-plus and time-and-materials contracts.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Accounts receivable $ 189 $ 152 Less allowance for credit losses (1) (1) Accounts receivable, net $ 188 $ 151

Sale of Receivables (Tables)

Sale of Receivables (Tables)	6 Months Ended
	Jun. 30, 2024
Transfers and Servicing [Abstract]
Schedule of Sale of Receivables	The table below summarizes the activity under the factoring facilities: Six Months Ended June 30, (Dollars in millions) 2024 2023 Beginning balance $ 192 $ 243 Sales of receivables 50 90 Cash returned to purchasers (205) (271) Outstanding balance sold to purchasers 37 62 Cash collected, not remitted to purchasers (1) (1) (6) Remaining sold receivables $ 36 $ 56 ________________ (1) Represents cash collected on behalf of purchasers and not yet remitted. This balance is included within short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheets. See Note 10: Debt for further information.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Raw materials $ 79 $ 66 Work in progress 279 254 Finished goods 9 9 Total inventories $ 367 $ 329

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment by major asset class consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Land, buildings and improvements $ 382 $ 342 Plant and machinery 199 197 Equipment and other 338 334 Total property, plant and equipment, at cost 919 873 Less accumulated depreciation (500) (471) Total property, plant and equipment, net $ 419 $ 402

Other Liabilities (Tables)

Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Other Liabilities	A summary of significant other liabilities by balance sheet caption follows: (Dollars in millions) June 30, 2024 December 31, 2023 Salaries, wages and accrued bonuses $ 52 $ 73 Fringe benefits 67 63 Litigation 2 2 Restructuring costs 6 10 Provision for contract losses 42 36 Operating lease liabilities 26 23 Taxes payable 22 46 Other (1) 46 35 Total other current liabilities $ 263 $ 288 Operating lease liabilities $ 70 $ 68 Unrecognized tax benefits 36 36 Other (1) 20 25 Total other noncurrent liabilities $ 126 $ 129 ________________ (1) Consists primarily of warranty reserves and provision for an acquired onerous contract. See Note 13: Commitments and Contingencies for more information regarding the warranty provision.

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets consists of the following: June 30, 2024 December 31, 2023 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired intangible assets $ 1,087 $ (951) $ 136 $ 1,087 $ (940) $ 147 Patents and licenses 14 (6) 8 10 (6) 4 Total intangible assets $ 1,101 $ (957) $ 144 $ 1,097 $ (946) $ 151

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2024 and December 31, 2023 is as follows: (Dollars in millions) June 30, 2024 December 31, 2023 Deferred tax assets $ 258 $ 258 Less valuation allowance 22 21 Deferred tax assets 236 237 Deferred tax liabilities 118 118 Net deferred tax asset $ 118 $ 119

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s debt consists of the following: (Dollars in millions) June 30, 2024 December 31, 2023 Term Loan A $ 208 $ 214 Outstanding revolver — — Finance lease and other 165 158 Short-term borrowings 1 35 Total debt principal 374 407 Less unamortized debt issuance costs and discounts (1) (1) Total debt, net 373 406 Less short-term borrowings and current portion of long-term debt (22) (57) Total long-term debt $ 351 $ 349

Pension and Other Postretirem_2

Pension and Other Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2024
Retirement Benefits [Abstract]
Schedule of Net Benefit Costs	The following tables provide certain information regarding the Company's pension, postretirement and supplemental retirement plans for the periods presented: Defined Benefit Pension Plans Postretirement Benefit Supplemental Retirement Plans Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 2024 2023 Interest cost $ 2 $ 2 $ — $ — $ 1 $ — Expected return on plan assets (1) (2) — — — — Amortization of net actuarial loss — 1 — — — — Net periodic benefit cost $ 1 $ 1 $ — $ — $ 1 $ — Defined Benefit Pension Plans Postretirement Benefit Supplemental Retirement Plans Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 2024 2023 Interest cost $ 4 $ 4 $ — $ — $ 1 $ — Expected return on plan assets (3) (3) — — — — Amortization of net actuarial loss — 1 — — — — Net periodic benefit cost $ 1 $ 2 $ — $ — $ 1 $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2024 2023 2024 2023 Net earnings $ 38 $ 35 $ 67 $ 47 Basic weighted average number of shares outstanding 263 261 263 261 Impact of dilutive share-based awards 4 3 4 2 Diluted weighted average number of shares outstanding 267 264 267 263 Earnings per share attributable to common shareholders - basic $ 0.14 $ 0.14 $ 0.25 $ 0.18 Earnings per share attributable to common shareholders - diluted $ 0.14 $ 0.13 $ 0.25 $ 0.18

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Product Warranty Liability	The following is a summary of changes in the product warranty balances during the six months ended June 30, 2024: (Dollars in millions) Balance at December 31, 2023 $ 26 Additional provision 12 Reversal and utilization (11) Balance at June 30, 2024 $ 27

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Total Revenues and Intersegment Revenues by Segment	Total revenues and intersegment revenues by segment for the periods ended June 30, 2024 and June 30, 2023 consists of the following: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 ASC $ 492 $ 404 $ 925 $ 795 IMS 266 226 527 415 Corporate & Eliminations (5) (2) (11) (13) Total revenues $ 753 $ 628 $ 1,441 $ 1,197 Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 ASC $ 5 $ 2 $ 11 $ 13 IMS — — — — Total intersegment revenues $ 5 $ 2 $ 11 $ 13
Schedule of Reconciliation of Reportable Segment Adjusted EBITDA to Net Earnings	Reconciliation of reportable segment adjusted EBITDA to net earnings consists of the following: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Adjusted EBITDA ASC $ 55 $ 36 $ 96 $ 73 IMS 27 26 56 38 Corporate & Eliminations — — — — Total adjusted EBITDA $ 82 $ 62 $ 152 $ 111 Amortization of intangibles (6) (5) (11) (11) Depreciation (17) (15) (34) (31) Restructuring costs (1) (8) (5) (8) Interest expense (7) (9) (12) (17) Deal-related transaction costs (3) (1) (4) (3) Other one-time non-operational events (1) 9 (2) 8 Income tax (provision) benefit (9) 2 (17) (2) Net earnings $ 38 $ 35 $ 67 $ 47

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - segment	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Concentration Risk [Line Items]
Number of reportable segments	2
U.S. Department Of Defense | Revenue from Contract with Customer Benchmark | Government Contracts Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	82%	81%
International and Commercial Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	18%	19%

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Estimate at Completion Adjustments (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Change in Accounting Estimate [Line Items]
Net earnings	$ 38	$ 35	$ 67	$ 47
Impact on diluted earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.25	$ 0.18
Contracts Accounted for under Percentage of Completion
Change in Accounting Estimate [Line Items]
Revenue and operating earnings	$ (10)	$ (11)	$ (19)	$ (20)
Total % of revenue	1%	2%	1%	2%
Net earnings	$ (8)	$ (9)	$ (15)	$ (16)
Impact on diluted earnings per share (in dollars per share)	$ (0.03)	$ (0.03)	$ (0.06)	$ (0.06)

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 1,037	$ 908
Contract liabilities	$ 348	$ 335

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, revenue recognized	$ 222	$ 129

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Remaining Performance Obligations, Narrative (Details) $ in Millions	Jun. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total backlog	$ 7,925
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	19%
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Long-Term Contracts on Electric Power and Propulsion Programs
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	46%
Revenue, remaining performance obligation, expected timing of satisfaction, period	15 years

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenues	$ 753	$ 628	$ 1,441	$ 1,197
Intersegment Sales
Disaggregation of Revenue [Line Items]
Total revenues	(5)	(2)	(11)	(13)
ASC | Firm-Fixed Price
Disaggregation of Revenue [Line Items]
Total revenues	402	335	752	659
ASC | Flexibly Priced
Disaggregation of Revenue [Line Items]
Total revenues	85	67	162	123
ASC | Prime contractor
Disaggregation of Revenue [Line Items]
Total revenues	253	181	416	343
ASC | Subcontractor
Disaggregation of Revenue [Line Items]
Total revenues	234	221	498	439
ASC | Intersegment Sales
Disaggregation of Revenue [Line Items]
Total revenues	(5)	(2)	(11)	(13)
ASC | Operating Segments
Disaggregation of Revenue [Line Items]
Total revenues	492	404	925	795
ASC | United States
Disaggregation of Revenue [Line Items]
Total revenues	396	340	733	670
ASC | International
Disaggregation of Revenue [Line Items]
Total revenues	91	62	181	112
IMS | Firm-Fixed Price
Disaggregation of Revenue [Line Items]
Total revenues	214	183	432	338
IMS | Flexibly Priced
Disaggregation of Revenue [Line Items]
Total revenues	52	43	95	77
IMS | Prime contractor
Disaggregation of Revenue [Line Items]
Total revenues	59	48	124	94
IMS | Subcontractor
Disaggregation of Revenue [Line Items]
Total revenues	207	178	403	321
IMS | Intersegment Sales
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
IMS | Operating Segments
Disaggregation of Revenue [Line Items]
Total revenues	266	226	527	415
IMS | United States
Disaggregation of Revenue [Line Items]
Total revenues	262	222	519	408
IMS | International
Disaggregation of Revenue [Line Items]
Total revenues	$ 4	$ 4	$ 8	$ 7

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 189	$ 152
Less allowance for credit losses	(1)	(1)
Accounts receivable, net	$ 188	$ 151

Sale of Receivables - Narrative

Sale of Receivables - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Transfers and Servicing [Abstract]
Sale of receivable, aggregate capacity	$ 225		$ 275
Sale of receivables, purchase discount fees	$ 0	$ 0

Sale of Receivables - Schedule

Sale of Receivables - Schedule of Sale of Receivables (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Transfer of Financial Assets Accounted for as Sales [Roll Forward]
Beginning balance	$ 192	$ 243
Sales of receivables	50	90
Cash returned to purchasers	(205)	(271)
Outstanding balance sold to purchasers	37	62
Cash collected, not remitted to purchasers	(1)	(6)
Remaining sold receivables	$ 36	$ 56

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 79	$ 66
Work in progress	279	254
Finished goods	9	9
Total inventories	$ 367	$ 329

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 919	$ 873
Less accumulated depreciation	(500)	(471)
Total property, plant and equipment, net	419	402
Land, buildings and improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	382	342
Plant and machinery
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	199	197
Equipment and other
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 338	$ 334

Property, Plant and Equipment_2

Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 17	$ 15	$ 34	$ 31

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Salaries, wages and accrued bonuses	$ 52	$ 73
Fringe benefits	67	63
Litigation	2	2
Restructuring costs	6	10
Provision for contract losses	42	36
Operating lease liabilities	26	23
Taxes payable	22	46
Other	$ 46	$ 35
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total other current liabilities	Total other current liabilities
Total other current liabilities	$ 263	$ 288
Operating lease liabilities	70	68
Unrecognized tax benefits	36	36
Other	$ 20	$ 25
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Total other noncurrent liabilities	Total other noncurrent liabilities
Total other noncurrent liabilities	$ 126	$ 129

Intangible Assets - Schedule of

Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,101	$ 1,097
Accumulated Amortization	(957)	(946)
Net Carrying Amount	144	151
Acquired Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,087	1,087
Accumulated Amortization	(951)	(940)
Net Carrying Amount	136	147
Patents and licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	14	10
Accumulated Amortization	(6)	(6)
Net Carrying Amount	$ 8	$ 4

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 6	$ 5	$ 11	$ 11

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	19.10%	(6.10%)	20.20%	4.10%
Tax deferred asset	$ 8		$ 8		$ 9

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 258	$ 258
Less valuation allowance	22	21
Deferred tax assets	236	237
Deferred tax liabilities	118	118
Net deferred tax asset	$ 118	$ 119

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Finance lease and other	$ 165	$ 158
Short-term borrowings	1	35
Total debt principal	374	407
Less unamortized debt issuance costs and discounts	(1)	(1)
Total debt, net	373	406
Less short-term borrowings and current portion of long-term debt	(22)	(57)
Total long-term debt	351	349
Term Loan A | Notes Payable, Other Payables
Debt Instrument [Line Items]
Long-term debt, gross	208	214
Outstanding revolver | Notes Payable, Other Payables
Debt Instrument [Line Items]
Long-term debt, gross	$ 0	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Nov. 30, 2022	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Collection of sold receivables		$ 1	$ 35
2022 Credit Agreement | Notes Payable, Other Payables
Debt Instrument [Line Items]
Credit limit	$ 500
Term Loan A | Notes Payable, Other Payables
Debt Instrument [Line Items]
Principal amount	$ 225
Long-term debt, gross		208	214
Fair value of long-term debt		203
Term Loan A | Notes Payable, Other Payables | Minimum
Debt Instrument [Line Items]
Variable rate percentage	1.48%
Term Loan A | Notes Payable, Other Payables | Maximum
Debt Instrument [Line Items]
Variable rate percentage	2.10%
Outstanding revolver | Notes Payable, Other Payables
Debt Instrument [Line Items]
Credit limit		275	275
Long-term debt, gross		$ 0	0
Weighted average interest rate		6.79%
Outstanding revolver | Notes Payable, Other Payables | Minimum
Debt Instrument [Line Items]
Variable rate percentage		1.48%
Commitment fee percentage		0.20%
Outstanding revolver | Notes Payable, Other Payables | Maximum
Debt Instrument [Line Items]
Variable rate percentage		2.10%
Commitment fee percentage		0.35%
Financial Institution Credit Facilities | Line of Credit
Debt Instrument [Line Items]
Credit limit		$ 115	65
Letters of credit outstanding		$ 37	$ 41

Pension and Other Postretirem_3

Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 2	$ 2	$ 4	$ 4
Expected return on plan assets	(1)	(2)	(3)	(3)
Amortization of net actuarial loss	0	1	0	1
Net periodic benefit cost	1	1	1	2
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	0	0	0	0
Expected return on plan assets	0	0	0	0
Amortization of net actuarial loss	0	0	0	0
Net periodic benefit cost	0	0	0	0
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	0	1	0
Expected return on plan assets	0	0	0	0
Amortization of net actuarial loss	0	0	0	0
Net periodic benefit cost	$ 1	$ 0	$ 1	$ 0

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net earnings, basic	$ 38	$ 35	$ 67	$ 47
Net earnings, diluted	$ 38	$ 35	$ 67	$ 47
Basic weighted average number of shares outstanding (in shares)	263	261	263	261
Impact of dilutive share-based awards (in shares)	4	3	4	2
Diluted weighted average number of shares outstanding (in shares)	267	264	267	263
Earnings per share attributable to common shareholders - basic (in dollars per share)	$ 0.14	$ 0.14	$ 0.25	$ 0.18
Earnings per share attributable to common shareholders - diluted (in dollars per share)	$ 0.14	$ 0.13	$ 0.25	$ 0.18

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	6 Months Ended
	Jun. 30, 2024
Minimum
Product Warranty Liability [Line Items]
Product warranty term	1 year
Maximum
Product Warranty Liability [Line Items]
Product warranty term	3 years

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Product Warranty Liability (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 26
Additional provision	12
Reversal and utilization	(11)
Ending balance	$ 27

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Revenue from related party	$ 753	$ 628	$ 1,441	$ 1,197
Cost of revenue	584	483	1,119	921
Accounts receivable, net	188		188		$ 151
Accounts payable	263		263		398
Contract assets	1,037		1,037		908
Related Party | Leonardo S.p.A.
Related Party Transaction [Line Items]
Revenue from related party	3	6	11	11
Cost of revenue	0	$ 0	0	$ 0
Accounts receivable, net	6		6		8
Accounts payable	3		3		$ 4
Contract assets	$ 4		$ 4

Segment Information - Revenues

Segment Information - Revenues and Intersegment Revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Total revenues	$ 753	$ 628	$ 1,441	$ 1,197
Operating Segments | ASC
Segment Reporting Information [Line Items]
Total revenues	492	404	925	795
Operating Segments | IMS
Segment Reporting Information [Line Items]
Total revenues	266	226	527	415
Corporate & Eliminations
Segment Reporting Information [Line Items]
Total revenues	(5)	(2)	(11)	(13)
Corporate & Eliminations | ASC
Segment Reporting Information [Line Items]
Total revenues	(5)	(2)	(11)	(13)
Corporate & Eliminations | IMS
Segment Reporting Information [Line Items]
Total revenues	$ 0	$ 0	$ 0	$ 0

Segment Information - EBITDA Re

Segment Information - EBITDA Reconciliation to Net Earnings (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Adjusted EBITDA
Adjusted EBITDA	$ 82	$ 62	$ 152	$ 111
Amortization of intangibles	(6)	(5)	(11)	(11)
Depreciation	(17)	(15)	(34)	(31)
Restructuring costs	(1)	(8)	(5)	(8)
Interest expense	(7)	(9)	(12)	(17)
Deal-related transaction costs	(3)	(1)	(4)	(3)
Other one-time non-operational events	(1)	9	(2)	8
Income tax (provision) benefit	(9)	2	(17)	(2)
Net earnings	38	35	67	47
Operating Segments | ASC
Adjusted EBITDA
Adjusted EBITDA	55	36	96	73
Operating Segments | IMS
Adjusted EBITDA
Adjusted EBITDA	27	26	56	38
Corporate & Eliminations
Adjusted EBITDA
Adjusted EBITDA	$ 0	$ 0	$ 0	$ 0