PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed and consolidated financial statements, along with detailed notes on business overview, accounting policies, and financial instruments [Condensed and Consolidated Statements of Income](index=3&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Income) Condensed and Consolidated Statements of Income (in millions, except per share amounts) | Metric | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :--------------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Revenues | $1,895 | $1,909 | $5,707 | $5,736 | | Operating income | $143 | $133 | $662 | $383 | | Income before income taxes | $114 | $100 | $572 | $290 | | Net income | $93 | $80 | $438 | $228 | | Net income attributable to common stockholders | $93 | $80 | $438 | $226 | | Basic EPS | $1.79 | $1.45 | $8.19 | $4.06 | | Diluted EPS | $1.76 | $1.45 | $8.11 | $4.04 | [Condensed and Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed and Consolidated Statements of Comprehensive Income (in millions) | Metric | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Net income | $93 | $80 | $438 | $228 | | Net unrealized (loss) gain on derivative instruments | $(3) | $29 | $(2) | $63 | | Total other comprehensive (loss) income, net of tax | $(3) | $29 | $(2) | $63 | | Comprehensive income | $90 | $109 | $436 | $291 | | Comprehensive income attributable to common stockholders | $90 | $109 | $436 | $289 | [Condensed and Consolidated Balance Sheets](index=6&type=section&id=Condensed%20and%20Consolidated%20Balance%20Sheets) Condensed and Consolidated Balance Sheets (in millions) | Asset/Liability/Equity | November 3, 2023 | February 3, 2023 | | :--------------------------------------- | :--------------- | :--------------- | | **ASSETS** | | | | Cash and cash equivalents | $311 | $109 | | Receivables, net | $1,010 | $936 | | Total current assets | $1,388 | $1,197 | | Goodwill | $2,851 | $2,911 | | Intangible assets, net | $923 | $1,009 | | Total assets | $5,658 | $5,543 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $1,226 | $1,126 | | Long-term debt, net of current portion | $2,194 | $2,343 | | Total stockholders' equity | $1,828 | $1,704 | | Total liabilities and stockholders' equity | $5,658 | $5,543 | [Condensed and Consolidated Statements of Equity](index=7&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Equity) Condensed and Consolidated Statements of Equity (in millions) | Metric | Balance at Feb 3, 2023 | Net Income (9 months) | Cash Dividends (9 months) | Repurchases of Stock (9 months) | Balance at Nov 3, 2023 | | :--------------------------------- | :--------------------- | :-------------------- | :------------------------ | :------------------------------ | :--------------------- | | Additional paid-in capital | $637 | — | — | $(276) | $395 | | Retained earnings | $1,035 | $438 | $(60) | — | $1,413 | | Accumulated other comprehensive income | $22 | $(2) | — | — | $20 | | Total stockholders' equity | $1,704 | $438 | $(60) | $(276) | $1,828 | [Condensed and Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20and%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed and Consolidated Statements of Cash Flows (Nine Months Ended, in millions) | Cash Flow Activity | November 3, 2023 | October 28, 2022 | | :--------------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $333 | $387 | | Net cash provided by (used in) investing activities | $324 | $(23) | | Net cash used in financing activities | $(455) | $(417) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $202 | $(53) | | Cash, cash equivalents and restricted cash at end of period | $320 | $62 | [Notes to Condensed and Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20and%20Consolidated%20Financial%20Statements) [Note 1—Business Overview and Summary of Significant Accounting Policies](index=9&type=section&id=Note%201%E2%80%94Business%20Overview%20and%20Summary%20of%20Significant%20Accounting%20Policies) - SAIC is a leading provider of technical, engineering, and enterprise information technology (IT) services primarily to the U.S. government, focusing on higher-end, differentiated technology services and solutions such as secure cloud modernization, outcome-based enterprise IT as-a-service, and defense systems integration[22](index=22&type=chunk)[23](index=23&type=chunk) - The company adopted ASU 2022-04, Liabilities—Supplier Finance Programs, effective the first day of fiscal 2024, requiring annual and interim disclosures for entities using supplier finance programs[39](index=39&type=chunk)[40](index=40&type=chunk) - The FASB issued ASU 2023-07, Segment Reporting, effective for fiscal years beginning after December 15, 2023, to enhance disclosures about significant segment expenses[38](index=38&type=chunk) [Note 2—Earnings Per Share, Share Repurchases and Dividends](index=11&type=section&id=Note%202%E2%80%94Earnings%20Per%20Share,%20Share%20Repurchases%20and%20Dividends) Weighted-Average Number of Shares Outstanding (in millions) | Metric | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Basic weighted-average number of shares outstanding | 52.8 | 55.0 | 53.5 | 55.6 | | Diluted weighted-average number of shares outstanding | 53.3 | 55.5 | 54.0 | 56.0 | - As of November 3, 2023, the Company had repurchased approximately **19.6 million** shares of common stock under its existing repurchase plan, which was increased by 8.0 million shares in June 2022[43](index=43&type=chunk) - A quarterly dividend of $0.37 per share was declared and paid during the three months ended November 3, 2023, and another $0.37 per share dividend was declared payable on January 26, 2024[44](index=44&type=chunk) [Note 3—Revenues](index=12&type=section&id=Note%203%E2%80%94Revenues) Disaggregated Revenues by Customer (in millions) | Customer | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :-------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Department of Defense | $992 | $969 | $2,982 | $2,799 | | Other federal government agencies | $863 | $903 | $2,611 | $2,827 | | Commercial, state and local | $40 | $37 | $114 | $110 | | Total | $1,895 | $1,909 | $5,707 | $5,736 | Disaggregated Revenues by Contract Type (in millions) | Contract Type | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :------------------ | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Cost reimbursement | $1,207 | $1,071 | $3,424 | $3,201 | | Time and materials (T&M) | $382 | $363 | $1,107 | $1,077 | | Firm-fixed price (FFP) | $306 | $475 | $1,176 | $1,458 | | Total | $1,895 | $1,909 | $5,707 | $5,736 | - As of November 3, 2023, the Company had approximately **$5.5 billion** of remaining performance obligations, with 80% expected to be recognized over the next 12 months and 90% over the next 24 months[53](index=53&type=chunk) [Note 4—Divestitures](index=15&type=section&id=Note%204%E2%80%94Divestitures) - On February 4, 2023, SAIC sold 0.1% of its majority ownership in Forfeiture Support Associates J.V. (FSA), leading to deconsolidation and a **$7 million** gain from remeasuring the retained equity method investment[56](index=56&type=chunk)[57](index=57&type=chunk) - On May 6, 2023, SAIC sold its logistics and supply chain management business for **$356 million** in cash, recording a pre-tax gain of **$233 million**, to focus resources on strategic growth areas[58](index=58&type=chunk) [Note 5—Goodwill and Intangible Assets](index=16&type=section&id=Note%205%E2%80%94Goodwill%20and%20Intangible%20Assets) Goodwill and Intangible Assets (in millions) | Asset | November 3, 2023 | February 3, 2023 | | :---------------------- | :--------------- | :--------------- | | Goodwill | $2,851 | $2,911 | | Intangible assets, net | $923 | $1,009 | - Goodwill decreased by **$60 million** due to the sale of the Supply Chain Business, with no impairments recorded during the periods presented[60](index=60&type=chunk) - Amortization expense for intangible assets was **$86 million** for the nine months ended November 3, 2023, down from **$94 million** in the prior year period[61](index=61&type=chunk) [Note 6—Income Taxes](index=16&type=section&id=Note%206%E2%80%94Income%20Taxes) Effective Income Tax Rates | Period | November 3, 2023 | October 28, 2022 | | :-------------------------- | :--------------- | :--------------- | | Three Months Ended | 18.0% | 20.3% | | Nine Months Ended | 23.4% | 21.3% | - The nine-month effective tax rate increased primarily due to the gain from the disposition of the Supply Chain Business and associated non-deductible goodwill, partially offset by higher tax benefits from stock-based compensation and foreign-derived intangible income[64](index=64&type=chunk) - Unrecognized tax benefits increased to **$225 million** as of November 3, 2023, from **$156 million** as of February 3, 2023, mainly due to research tax credits and capitalized R&D costs under the TCJA[66](index=66&type=chunk) [Note 7—Debt Obligations](index=17&type=section&id=Note%207%E2%80%94Debt%20Obligations) Long-Term Debt (in millions) | Debt Type | November 3, 2023 (Net) | February 3, 2023 (Net) | | :-------------------------- | :--------------------- | :--------------------- | | Term Loan A Facility | $1,211 | $1,225 | | Term Loan B Facility | $423 | $485 | | Term Loan B2 Facility | $233 | $268 | | Senior Notes | $396 | $396 | | Total long-term debt, net | $2,194 | $2,343 | - During the nine months ended November 3, 2023, the Company made **$15 million** in scheduled principal payments and **$100 million** in prepayments on its Term Loan Facilities[69](index=69&type=chunk) - The Company borrowed and repaid **$160 million** under its **$1.0 billion** Revolving Credit Facility, with no outstanding balance as of November 3, 2023, and was in compliance with covenants[69](index=69&type=chunk) [Note 8—Derivative Instruments Designated as Cash Flow Hedges](index=18&type=section&id=Note%208%E2%80%94Derivative%20Instruments%20Designated%20as%20Cash%20Flow%20Hedges) Fair Value of Derivative Instruments (in millions) | Derivative | Notional Amount (Nov 3, 2023) | Fair Value of Asset (Nov 3, 2023) | Fair Value of Asset (Feb 3, 2023) | | :------------------ | :---------------------------- | :-------------------------------- | :-------------------------------- | | Interest rate swaps 1 | $685 | $22 | $16 | | Interest rate swaps 2 | — | — | $9 | | Total | $685 | $22 | $25 | - Interest Rate Swaps 2, with a notional value of **$450 million**, matured during the three months ended November 3, 2023[74](index=74&type=chunk) [Note 9—Changes in Accumulated Other Comprehensive Income (Loss) by Component](index=19&type=section&id=Note%209%E2%80%94Changes%20in%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)%20by%20Component) Changes in Accumulated Other Comprehensive Income (Loss) (in millions) | Component | Balance at Feb 3, 2023 | Net Other Comprehensive Loss (9 months) | Balance at Nov 3, 2023 | | :--------------------------------------- | :--------------------- | :-------------------------------------- | :--------------------- | | Unrealized Gains (Losses) on Fixed Interest Rate Swap Cash Flow Hedges | $18 | $(2) | $16 | | Defined Benefit Obligation Adjustment | $4 | — | $4 | | Total | $22 | $(2) | $20 | - Net other comprehensive loss for the nine months ended November 3, 2023, was **$(2) million**, a decrease from net other comprehensive income of **$63 million** in the prior year period[77](index=77&type=chunk) [Note 10—Sales of Receivables](index=20&type=section&id=Note%2010%E2%80%94Sales%20of%20Receivables) - The Company has a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd. for the sale of up to **$300 million** of certain eligible U.S. government receivables[78](index=78&type=chunk) Purchase Discount Fees (in millions) | Period | November 3, 2023 | October 28, 2022 | | :-------------------------- | :--------------- | :--------------- | | Nine Months Ended | $7 | $4 | [Note 11—Legal Proceedings and Other Commitments and Contingencies](index=20&type=section&id=Note%2011%E2%80%94Legal%20Proceedings%20and%20Other%20Commitments%20and%20Contingencies) - The Company received a Federal Grand Jury Subpoena in April 2022 and October 2023 from the U.S. Department of Justice, Antitrust Division, in connection with a criminal investigation, and is fully cooperating[82](index=82&type=chunk) - The Assault Amphibious Vehicle (AAV) contract was terminated for convenience by the Marine Corps in October 2018, and the Company is continuing to negotiate cost recovery[83](index=83&type=chunk) - The Company is routinely subject to government investigations, audits, and reviews (e.g., DCAA) and believes it has adequately reserved for estimated net amounts to be refunded to customers for potential adjustments[84](index=84&type=chunk)[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, business overview, economic factors, operational results, and liquidity [Business Overview](index=22&type=section&id=Business%20Overview) - SAIC is a leading technology integrator and one of the largest pure-play technology service providers to the U.S. government, operating through approximately 1,900 active contracts and employing about 24,000 individuals[90](index=90&type=chunk) [Economic Opportunities, Challenges, and Risks](index=22&type=section&id=Economic%20Opportunities,%20Challenges,%20and%20Risks) - **98%** of SAIC's revenues are derived from U.S. government contracts, making its business performance highly dependent on government spending levels and budget priorities[91](index=91&type=chunk) - Potential adverse impacts include spending reductions, delayed appropriations, inflationary increases, and government shutdowns, while new spending packages (e.g., infrastructure, Inflation Reduction Act, CHIPS and Science Act) may offer opportunities in digital modernization, cyber, microelectronics, and climate resiliency[92](index=92&type=chunk)[93](index=93&type=chunk) - Increased reliance on competitive bidding and small business prime set-aside contracts has intensified competition and pricing pressure in the industry[94](index=94&type=chunk) - SAIC differentiates itself through its scale, prime contractor leadership, long-term customer relationships, deep technical expertise, and an 'Innovation Factory' to deliver superior enterprise-class solutions[95](index=95&type=chunk)[96](index=96&type=chunk) [Management of Operating Performance and Reporting](index=23&type=section&id=Management%20of%20Operating%20Performance%20and%20Reporting) - Management monitors contract margin performance by evaluating risks, updating estimates, and analyzing revenue drivers and cost mix (labor, subcontractor, materials), noting that programs with a higher proportion of SAIC labor are generally more profitable[97](index=97&type=chunk)[98](index=98&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Summary of Results of Operations (in millions) | Metric | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Revenues | $1,895 | $1,909 | $5,707 | $5,736 | | Cost of revenues | $1,666 | $1,688 | $5,027 | $5,070 | | Selling, general and administrative expenses | $87 | $87 | $259 | $272 | | Operating income | $143 | $133 | $662 | $383 | | Net income attributable to common stockholders | $93 | $80 | $438 | $226 | | Net cash provided by operating activities | $101 | $128 | $333 | $387 | - Revenues decreased by **$14 million** (3 months) and **$29 million** (9 months) year-over-year, primarily due to the sale of the Supply Chain Business and the deconsolidation of FSA; adjusting for these, revenues grew **10.6%** (3 months) and **7.3%** (9 months)[100](index=100&type=chunk)[101](index=101&type=chunk) - Operating income increased **8%** (3 months) and **73%** (9 months) year-over-year, with the nine-month increase significantly driven by a **$233 million** gain from the Supply Chain Business sale and a **$7 million** gain from the deconsolidation of FSA[100](index=100&type=chunk)[106](index=106&type=chunk) - Net cash provided by operating activities decreased **$54 million** for the nine months ended November 3, 2023, primarily due to higher tax payments associated with Section 174 of the Internal Revenue Code and the Supply Chain Business sale, partially offset by timing of vendor payments[107](index=107&type=chunk) [Non-GAAP Measures](index=25&type=section&id=Non-GAAP%20Measures) EBITDA and Adjusted EBITDA Reconciliation (in millions) | Metric | Three Months Ended Nov 3, 2023 | Three Months Ended Oct 28, 2022 | Nine Months Ended Nov 3, 2023 | Nine Months Ended Oct 28, 2022 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :---------------------------- | :---------------------------- | | Net income | $93 | $80 | $438 | $228 | | EBITDA | $177 | $168 | $773 | $498 | | EBITDA as a percentage of revenues | 9.3% | 8.8% | 13.5% | 8.7% | | Adjusted EBITDA | $178 | $170 | $541 | $509 | | Adjusted EBITDA as a percentage of revenues | 9.4% | 8.9% | 9.5% | 8.9% | - Adjusted EBITDA as a percentage of revenues increased to **9.4%** for the three months and **9.5%** for the nine months ended November 3, 2023, from **8.9%** in the comparable prior year periods, driven by improved contract profitability and lower indirect costs[113](index=113&type=chunk) [Other Key Performance Measures](index=26&type=section&id=Other%20Key%20Performance%20Measures) Total Backlog (in millions) | Backlog Type | November 3, 2023 | February 3, 2023 | | :-------------------------- | :--------------- | :--------------- | | Funded backlog | $4,036 | $3,554 | | Negotiated unfunded backlog | $19,102 | $20,248 | | Total backlog | $23,138 | $23,802 | - Net bookings were an estimated **$2.5 billion** for the three months and **$5.3 billion** for the nine months ended November 3, 2023[118](index=118&type=chunk) Contract Type Mix (as a % of revenues, Nine Months Ended) | Contract Type | November 3, 2023 | October 28, 2022 | | :------------------ | :--------------- | :--------------- | | Cost reimbursement | 60% | 56% | | Time and materials (T&M) | 19% | 19% | | Firm-fixed price (FFP) | 21% | 25% | | Total | 100% | 100% | - The change in contract mix reflects a decrease in firm-fixed price contracts due to the divestiture of the Supply Chain Business, which historically had a higher proportion of these contracts[119](index=119&type=chunk) Cost of Revenues Mix (as a % of total cost of revenues, Nine Months Ended) | Cost Component | November 3, 2023 | October 28, 2022 | | :--------------------------------------- | :--------------- | :--------------- | | Labor-related cost of revenues | 54% | 54% | | Subcontractor-related cost of revenues | 31% | 29% | | Supply chain materials-related cost of revenues | 3% | 7% | | Other materials-related cost of revenues | 12% | 10% | | Total | 100% | 100% | - The decrease in supply chain materials-related costs in the cost of revenues mix is attributed to the divestiture of the Supply Chain Business[120](index=120&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) - SAIC expects to fund ongoing working capital, commitments, and discretionary investments using cash on hand, future operating cash flows, and borrowings under its **$1.0 billion** Revolving Credit Facility and **$300 million** MARPA Facility[121](index=121&type=chunk) - The capital deployment strategy prioritizes dividends, share repurchases, debt prepayments, or strategic acquisitions when cash generation exceeds the target average minimum cash balance[122](index=122&type=chunk) - The Tax Cuts and Jobs Act of 2017, requiring capitalization and amortization of R&D costs, is estimated to increase income taxes payable by approximately **$77 million** for fiscal 2024[124](index=124&type=chunk) [Historical Cash Flow Trends](index=29&type=section&id=Historical%20Cash%20Flow%20Trends) Summary of Cash Flows (Nine Months Ended, in millions) | Cash Flow Activity | November 3, 2023 | October 28, 2022 | | :--------------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $333 | $387 | | Net cash provided by (used in) investing activities | $324 | $(23) | | Net cash used in financing activities | $(455) | $(417) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $202 | $(53) | - Net cash provided by investing activities significantly increased to **$324 million** for the nine months ended November 3, 2023, from cash used of **$23 million** in the prior year, primarily due to **$356 million** in cash proceeds from the sale of the Supply Chain Business[126](index=126&type=chunk) - Net cash used in financing activities increased to **$(455) million**, primarily due to higher share repurchases, partially offset by lower term loan principal payments[127](index=127&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no material changes to the Company's critical accounting policies and estimates during the nine months ended November 3, 2023, from those disclosed in its most recently filed Annual Report on Form 10-K[128](index=128&type=chunk) [Recently Issued But Not Yet Adopted Accounting Pronouncements](index=29&type=section&id=Recently%20Issued%20But%20Not%20Yet%20Adopted%20Accounting%20Pronouncements) - Information on recently issued but not yet adopted accounting pronouncements is provided in Note 1 to the condensed and consolidated financial statements[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risks have occurred since the last Annual Report on Form 10-K - There have been no material changes to the Company's market risks from those discussed in its most recently filed Annual Report on Form 10-K[130](index=130&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls - Management, with the participation of the Chief Executive Officer and Chief Financial Officer, concluded that the Company's disclosure controls and procedures were operating and effective as of November 3, 2023[131](index=131&type=chunk) [Changes in Internal Control Over Financial Reporting](index=30&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There have been no changes in the Company's internal control over financial reporting during the quarterly period covered by this report that materially affected, or are likely to materially affect, its internal control over financial reporting[132](index=132&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Updated information on legal proceedings and government investigations is incorporated by reference from Note 11 - Updated information regarding legal proceedings and government investigations, audits, and reviews is incorporated by reference from Note 11 to the condensed and consolidated financial statements[135](index=135&type=chunk)[136](index=136&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the Company's most recently filed Annual Report on Form 10-K[137](index=137&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Details of common stock repurchases, including shares and average price, for the three months ended November 3, 2023 Common Stock Repurchases (Three Months Ended November 3, 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--------------------------------------- | :----------------------------- | :--------------------------- | | August 5, 2023 - September 8, 2023 | 265,748 | $117.59 | | September 9, 2023 - October 6, 2023 | 324,822 | $107.75 | | October 7, 2023 - November 3, 2023 | 313,654 | $110.78 | | Total | 904,224 | $111.69 | - As of November 3, 2023, approximately **4.89 million** shares remained authorized for repurchase under the existing plan[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No information is required regarding defaults upon senior securities - No information is required in response to this item[141](index=141&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No information is required regarding mine safety disclosures - No information is required in response to this item[142](index=142&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended November 3, 2023 - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended November 3, 2023[143](index=143&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include CEO/CFO certifications and interactive data files - The report includes certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) and Interactive Data Files (Exhibits 101, 104)[144](index=144&type=chunk) [Signatures](index=33&type=section&id=Signatures) The report was signed by Prabu Natarajan, Executive Vice President and Chief Financial Officer, on December 4, 2023 - The report was signed by Prabu Natarajan, Executive Vice President and Chief Financial Officer, on December 4, 2023[147](index=147&type=chunk)

Financial Data and Key Metrics Changes - The company reported revenue growth of over 8% year-over-year, with adjusted EBITDA margins increasing by 70 basis points to 9.8% [114][132] - Adjusted diluted EPS rose by 17% year-over-year to $2.05, driven by strong operating performance and a decline in diluted weighted average share count [118] - Free cash flow for the quarter was $143 million, with year-to-date free cash flow reaching $219 million, indicating good traction on working capital improvement efforts [160] Business Line Data and Key Metrics Changes - The company expects first-half FY '25 revenues to be roughly flat year-over-year, with more meaningful growth anticipated in the second half of FY '25 [5] - The Logistics & Supply Chain Management divestiture is expected to impact revenue growth, but the company maintains visibility into growth opportunities in its pipeline [5][159] Market Data and Key Metrics Changes - The company won approximately $1.1 billion of work since the beginning of the third quarter, with roughly 60% being new business across multiple domains [161] - The updated revenue guidance for FY '24 is increased to a range of $7.2 billion to $7.25 billion, representing pro-forma organic growth of approximately 4.5% [162] Company Strategy and Development Direction - The company aims to sustain and improve upon its relative performance while adhering to an asset-light business model and returning substantial cash to shareholders [116] - The focus on profitable organic growth is emphasized, with a commitment to balance near-term margin improvement against long-term value creation [136] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the operating environment, including budget constraints and delays in award timing, but expressed confidence in the company's growth trajectory [11][27] - The transition of leadership is expected to be smooth, with confidence in the new CEO's ability to advance the company's priorities [8][137] Other Important Information - The company has a strong pipeline of opportunities, with expectations for improved award activity and submissions in the second half of the year [161] - The company is committed to maintaining a book-to-bill ratio comfortably over 1.0, despite recent challenges [54] Q&A Session Summary Question: What is driving the delays in awards and the impact on book-to-bill? - Management indicated that delays are not systemic and are part of the normal operating environment, with expectations for improved performance in the coming quarters [27][28] Question: How is the company managing labor costs and retention? - The company has seen improvements in employee retention and is effectively managing labor costs, which is expected to provide a tailwind to margins [60][61] Question: Can you provide an update on the recompete landscape? - Approximately 20% of the portfolio is up for recompete each year, with the Vanguard deal being significant, but the company expects to win its fair share [82][83]

| --- | --- | --- | --- | --- | --- | --- | |-------|-------|------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year 2024 | | | | | | | | Second Quarter | | | | | | | | Earnings Call | | | | | BRING Partnering to deliver flexible tools and technologies that advance your mission, accelerate time-to-value to make our world better through innovation. On both the frontline and the homefront. SAIC PROFRIETARY INFORMATION | | © SAIC. ALL RIGHTS RESERVE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 4, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-35832 Science Applications International Corporation (Exact name of registrant as specified in its charter) Delaware ...

Financial Data and Key Metrics Changes - The company reported revenue of $2.03 billion for Q1 2024, representing pro-forma growth of 3.5% year-over-year, or approximately 2% when excluding supply chain sales [8][43] - Adjusted EBITDA margin for the quarter was 9.3%, benefiting from solid execution and ongoing margin improvement initiatives [24][28] - Adjusted diluted earnings per share increased to $2.14, aided by stronger operating performance and a lower effective tax rate [28] - The company raised its adjusted diluted earnings per share guidance to a range of $7 to $7.20 due to improved operating performance and expectations for lower interest expenses [9] Business Line Data and Key Metrics Changes - The company’s net bookings included $766 million from the DCSA One IT program, which was re-awarded in the quarter [24] - The pipeline continues to skew favorably towards higher margin areas, with approximately 50% of the contract award portion of the qualified pipeline aligning with the company's GTAs [25] Market Data and Key Metrics Changes - The value of submitted proposals at the end of Q1 was $26 billion, an increase of 10% year-over-year, while the total qualified pipeline was up approximately 8% year-over-year [41][143] - The company expects to maintain a book-to-bill ratio comfortably over 1.0 for the year, with a solid pipeline and backlog [84][134] Company Strategy and Development Direction - The company is focused on maximizing long-term shareholder value while driving sustained profitable growth and increasing margins [46] - The leadership team emphasizes the importance of capital discipline and strategic investments to enhance ROIC over the next few years [72][79] - The company is committed to fostering a culture of diversity, equity, and inclusion, which is seen as beneficial for all stakeholders [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to the year and expects revenue growth rates to improve in the second and third quarters [8] - The company remains cautious about potential macro risks but is encouraged by its performance and outlook [43] - Management highlighted the importance of modernization in federal government systems, indicating a strong demand for their services despite potential short-term pressures [88] Other Important Information - The company announced the retirement of its CEO, Nazzic Keene, effective October 2, with Toni Townes-Whitley appointed as the next CEO [47] - The company is maintaining its free cash flow guidance of $460 million to $480 million and expects to repurchase approximately $350 million to $400 million in shares [45] Q&A Session Summary Question: Opportunities in the space arena - Management discussed the balanced exposure across civil, military, and intel space, indicating continued opportunities in IT modernization and systems integration [49][75] Question: Expectations on the Civil side of space - Management acknowledged potential impacts on modernization budgets but emphasized their strong position in legacy systems [62][65] Question: Impact of the debt ceiling deal - Management noted that the deal aligns with their long-term guidance and does not expect significant changes to their addressable market [80][82] Question: Book-to-bill expectations - Management expects the book-to-bill ratio to be comfortably over 1.0 for the year, supported by a healthy pipeline [84][134] Question: AI exposure and threats - Management highlighted the integration of AI in their solutions and acknowledged both opportunities and threats posed by AI advancements [127][132]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 5, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-35832 Science Applications International Corporation (Exact name of registrant as specified in its charter) Delaware 46 ...

Non-GAAP Reconciliation – FY24 Free Cash Flow Guidance (1) "Free cash flow" is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided by operating activities, but is not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with SAIC's consolidated financial statements prepar ...

Science Applications International Corporation (NASDAQ:SAIC) Q4 2023 Earnings Conference Call April 3, 2023 10:00 AM ET Company Participants Joe DeNardi - Investor Relations Nazzic Keene - Chief Executive Officer Prabu Natarajan - Chief Financial Officer Conference Call Participants Jason Gursky - Citi Matt Akers - Wells Fargo Cai von Rumohr - Cowen Greg Konrad - Jefferies Tobey Sommer - Truist Securities Louie DiPalma - William Blair Operator Good morning. My name is Rob and I will be your conference opera ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 3, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 001-35832 Science Applications International Corporation (Exact name of registrant as specified in its charter) Delaware 46-19 ...

Science Applications International Corporation Fiscal Year 2023 Third Quarter Earnings Call Supplemental Financial Presentation December 5, 2022 SAIC. We're not just another company that solves problems. No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering n a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new combat vehicles for our troops, we reached. And what's the one thing we haven't reached? ...