What changed in this filing

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Item 1. Business

2024-03-20 compared with 2023-04-03 · 134 added, 87 removed, 169 unchanged (57% of the section changed)

Science Applications International Corporation (herein referred to as “SAIC,” the “Company,” “we,” “us,” or “our”) is a leading provider of technical, engineering and enterprise information technology ("IT") services primarily to the U.S.

The Company provides these services for large, complex projects with a targeted emphasis on higher-end, differentiated technology services and solutions that accelerate and transform secure and resilient digital environments through system development, modernization, integration, and sustainment to drive enterprise and mission outcomes.

The Company provides these services for large, complex projects with a targeted emphasis on higher-end, differentiated technology services and solutions that accelerate and transform secure and resilient digital environments through systems design, development, modernization, integration, and sustainment to drive enterprise and mission outcomes.

Our end-to-end enterprise IT offerings span the entire spectrum of our customers' IT infrastructure.

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Department of State, Department of Justice, Department of Homeland Security and several sensitive intelligence community agencies.

We serve our customers through approximately 1,800 active contracts and task orders.

We have approximately 24,000 employees that are led by an experienced executive team of proven industry leaders.

The Company is organized as a matrix comprised of two customer facing operating sectors supported by the enterprise organizations, including the Innovation Factory.

The two operating sectors are responsible for customer relationships, program management, delivery and execution, and, in collaboration with the enterprise organizations, manage the development of our offerings, solutions and capabilities which support our four strategic pivots — portfolio, go-to-market, culture and brand.

Effective February 3, 2024, the first day of fiscal 2025, the Company completed a business reorganization which replaces its current two operating sectors with five customer facing business groups supported by the enterprise organizations, including the Innovation Factory.

The reorganization is designed to enhance management's involvement with customers and advance SAIC’s innovation and go-to-market strategy.

The Company is currently evaluating the impact of the reorganization on its segment reporting.

Our long-standing customer relationships have enabled us to achieve an in-depth understanding of our customers’ missions and provide differentiated service offerings to meet our customers’ most complex requirements.

Through our offerings, we provide end-to-end services spanning the design, development, integration, deployment, management and operations, sustainment and security of our customers’ entire IT infrastructure.

Our offerings include:

technology integration;

IT Modernization:

maintenance of ground and maritime systems;

We help defense, intelligence, and civilian agencies reimagine the way they accomplish their objectives through digital transformation by providing next-generation cloud computing, cybersecurity, and software capabilities.

We modernize enterprise IT environments for government customers and then operate and maintain them via their preferred service delivery methods.

Digital Engineering:

Our digital engineering integrates industry-leading tools and processes for design;

modeling, simulation and visualization;

and manufacturing execution, all within a secure and collaborative ecosystem to ensure faster systems outcomes for our customers.

Artificial Intelligence ("AI"):

We deploy and integrate AI solutions for customers, including AI solutions that assist with the design, deployment, and management of AI applications and allow customers to work with their complex and sensitive data to power the most demanding analytics, data science, and AI use cases.

Weapon Systems Support:

We design, build, modify, integrate, and sustain weapon systems across all branches of the U.S.

military, ensuring mission readiness on land, at sea, and in the air.

Training and Simulation:

operation and program support services;

and end-to-end services spanning the design, development, integration, deployment, management and operations, sustainment and security of our customers’ entire IT infrastructure.

We serve our customers through approximately 1,900 active contracts and task orders.

We have approximately 25,000 employees that are led by an experienced executive team of proven industry leaders.

On July 2, 2021, the Company completed the acquisition of Halfaker and Associates, LLC (Halfaker), a mission focused, pure-play health IT company, which grows the Company's digital transformation portfolio.

Additionally, on May 3, 2021, the Company acquired Koverse, a software company that provides a data management platform enabling artificial intelligence and machine learning on complex sensitive data.

On March 13, 2020, we completed the acquisition of Unisys Federal, a former operating unit of Unisys Corporation, which enhances our capabilities in government priority areas, expands our portfolio of intellectual property and technology-driven offerings, and increases our access to current and new customers.

We are invested in accelerating the adoption and application of immersive technologies that solve pressing human performance and operational efficiency challenges.

Ground Vehicles Support:

We integrate, modify, upgrade, and sustain ground vehicles for our nation's armed forces, leveraging commercial products and in-house solutions to address some of the toughest challenges

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

facing warfighters.

Our experts in cybersecurity, enhanced surveillance, secure communications, mobility, and more apply core as well as emerging capabilities to address evolving mission needs.

Our Innovation Factory develops superior enterprise-class solutions which are delivered to our customers as stand-alone solutions or integrated with and aligned to our product offerings to meet complex customer needs and accelerate digital transformation.

The Innovation Factory includes designated teams focused on AI, application development, network services, platforms and cloud, and cyber.

It uses a highly automated, cloud-hosted tool set to rapidly build, test and deploy solutions quickly and works with customers to enhance solutions going forward.

SAIC integrates emerging technology securely and in real-time into mission critical operations that modernize and enable national imperatives:

Undersea Dominance:

We deliver systems to ensure the US maintains proactive control over every threat in the undersea domain.

Border of the Future:

We support integrated systems across all ports of entry (i.e., land, sea, air) for all U.S.

travel, trade, contraband detection, and immigration functions.

Citizen Experience:

We drive commercial-quality USG service delivery through scalable solutions that innovate mission outcomes of legacy systems.

All Domain Warfighting:

We develop integrated conflict deterrence, combat preparedness, and data connectivity capabilities for the US Military and Intelligence Community.

Next Generation Space:

We integrate advanced solutions to enable the rapid deployment of future space missions.

Our core strengths have supported our successful performance on programs of national importance.

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Our diversified revenue base consists of programs ranging from research and development to operations and maintenance.

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Technical Experts Led by Experienced Management.

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Our executive team consists of members who have served as senior leaders in public companies and are recognized as leaders in their respective markets by customers and partners.

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Repeatable Methodologies and Certified Processes.

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We deploy our tools and processes enterprise-wide and emphasize a consistent approach to planning, designing and delivering solutions and services to our customers.

We hold certifications from the International Organization for Standardization (including ISO 9001, ISO/IEC 27001, and AS9100D), and from the Capability Maturity Model Integration Institute as a CMMI®-DEV Maturity Level 3 organization.

The Company is organized as a matrix comprised of two customer facing operating sectors supported by an enterprise solutions and operations organization.

The two operating sectors are responsible for customer relationships, business development and program management, and delivery and execution, while the enterprise solutions and operations organization manages the development of our offerings, solutions and capabilities.

Each of the Company’s two customer facing operating sectors is focused on providing both (1) growth and technology accelerating solutions and (2) core IT service offerings to one or more agencies of the U.S.

federal government.

Growth and technology accelerating solutions include the delivery of secure cloud modernization, outcome based enterprise IT as-a-service, and the integration, production and modernization of defense systems.

Core IT services include systems engineering, the operation and maintenance of existing IT systems and networks, and logistics and supply chain solutions.

The Company's operating sectors are aggregated into one reportable segment for financial reporting purposes.

We hold certifications from the International Organization for Standardization ("ISO") (including ISO 9001, ISO/IEC 27001, and AS9100D), and from the Capability Maturity Model Integration Institute as a CMMI®-DEV Maturity Level 3 organization.

Acquisitions and Divestitures

On May 6, 2023, SAIC closed the sale of its logistics and supply chain management business ("Supply Chain Business") to ASRC Federal Holding Company, LLC ("ASRC Federal").

The sale enables the Company to focus its resources on long-term strategic growth areas.

On February 4, 2023, the Company sold 0.1% of its 50.1% majority ownership interest in Forfeiture Support Associates J.V.

("FSA") to its sole joint venture partner for a nominal amount.

As a result of the sale and amendment to the joint venture operating agreement of FSA, the Company no longer controls the joint venture and accounts for its retained interest as an equity method investment as of the date of the transaction.

On July 2, 2021, the Company completed the acquisition of Halfaker and Associates, LLC ("Halfaker"), a mission focused, pure-play health IT company, which grows the Company's digital transformation portfolio.

For additional discussion and analysis related to recent business developments, see “Economic Opportunities, Challenges, and Risks” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this report.

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Substantially all of our revenues were earned by entities located in the United States.

Army and U.S.

Navy each generated more than 10% of our revenues during each of the last three fiscal years.

Navy and Air Force each generated more than 10% of our revenues during fiscal 2024.

The percentages of total revenues for the U.S.

government, its agencies and other customers, including those comprising more than 10% of total revenues for each of the periods presented were approximately:

February 3, 2023 January 28, 2022 January 29, 2021

February 2, 2024 February 3, 2023 January 28, 2022

Army 17 % 15 % 15 %

Navy 13 % 12 % 12 %

Air Force 12 % 10 % 9 %

Other DoD 10 % 12 % 12 %

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Our compliance with these regulations is monitored by the Defense Contract Management Agency ("DCMA") and the Defense Contract Audit Agency ("DCAA").

government has the ability to cancel contracts at any time through a termination for the convenience of the U.S.

government can cancel contracts at any time for its convenience.

Most of our contracts have cancellation terms that would permit us to recover all or a portion of our incurred costs and contract profit for work performed when the U.S.

government issues a termination for convenience.

Some of our operations and service offerings involve our access to and use of personally identifiable information and protected health information, which activities are regulated by extensive federal and state privacy and data security laws requiring organizations to provide certain privacy protections and security safeguards for such information.

government terminates a contract for its convenience.

Some of our operations and service offerings involve our access to and use of personally identifiable information and protected health information, and these activities are regulated by extensive federal and state privacy and data security laws requiring organizations to provide certain privacy protections and security safeguards for such information.

Internationally, we are subject to foreign government laws and regulations, and U.S.

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government to purchase substantial amounts of services or solutions from one or more contractors.

At the time an IDIQ contract is awarded (prior to the letting of any task orders), a contractor may have limited or no visibility as to the ultimate amount of services or solutions that the U.S.

At the time an IDIQ contract is awarded (prior to the issuance of any task orders), a contractor may have limited or no visibility as to the ultimate amount of services or solutions that the U.S.

government will purchase under the contract, and, in the case of a multi-award IDIQ, the contractor from which such purchases may be made.

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We generate revenues under several types of contracts, including the following:

• Cost-reimbursement contracts provide for reimbursement of our direct contract costs and allocable indirect costs, plus a fee (contract profit).

This type of contract is generally used when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use a fixed-price contract.

• Cost-reimbursement contracts include cost-plus-fixed-fee, award-fee and incentive-fee contracts.

These contracts provide for reimbursement of our direct contract costs and allocable indirect costs, plus a fee (contract profit).

These types of contracts are generally used when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use a fixed-price contract.

Cost-reimbursement contracts usually subject us to lower risk and generally require us to use our best efforts to accomplish the scope of the work within a specified time and amount of costs.

Award and incentive fee contracts generally are based on certain performance criteria including technical performance and quality.

• Time-and-materials ("T&M") contracts typically provide for negotiated fixed hourly rates for specified categories of direct labor plus reimbursement of other direct costs.

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On T&M contracts, we assume the risk of providing appropriately qualified staff to perform these contracts at the hourly rates set forth in the contracts over their period of performance.

Fixed-price-level-of-effort contracts are similar except they require a specified level of effort over a specified period of time and payment is based on effort expended.

• Firm-fixed price ("FFP") contracts provide for a predetermined price for specific solutions.

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Our earnings and profitability may vary materially depending on changes in the proportionate amount of revenues derived from each type of contract, the nature of services or solutions provided, as well as the achievement of performance objectives and the stage of performance at which the right to receive fees is finally determined.

Given the relative amount of risk assumed by the contractor, cost-reimbursement and T&M contracts generally have lower profitability than FFP contracts.

For the proportionate amount of revenues derived from each type of contract for the last three fiscal years, see “Other Key Performance Measures—Contract Types” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this report.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

the relative amount of risk assumed by the contractor, cost-reimbursement and T&M contracts generally have lower profitability than FFP contracts.

Competition for contracts is intense and we often compete against a large number of established multinational companies, which may have greater name recognition, financial resources and larger technical staffs than we do.

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Our principal competitors include the following:

• the engineering and technical services divisions of large defense contractors that provide IT services in addition to other hardware systems and products, which include companies such as General Dynamics Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation;

• contractors focused principally on technical and IT services, such as Booz Allen Hamilton Inc., CACI International, Inc., Leidos Holdings, Inc., ManTech International Corporation, and Serco Group plc;

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government IT services, such as Accenture plc and International Business Machines Corporation.

• contractors providing supply chain management and other logistics services, such as Agility Logistics Corporation and SupplyCore.

We compete on various factors, which include:

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People and Culture

Our purpose is to advance the power of technology and innovation to serve and protect our world .

We achieve our purpose with and through our people, who are fundamental to our success.

Our values of passion, empowerment, integrity, inclusion and innovation underpin our culture and are at the heart of how we operate.

Attracting and retaining top talent is an essential element of our business strategy and part of our value proposition for our shareholders, customers and employees.

To deliver on this strategy, we seek to be a company that provides meaningful work and purpose by continuing to strengthen our diversity, equity and inclusion efforts;

nurturing our people through every aspect of the talent lifecycle;

creating a culture where our people are empowered to be their authentic selves and to do their best work;

and providing benefits and programs that enhance the employee experience and their well-being.

Our company's success starts with our people.

Our purpose is to advance technology and innovation to serve and protect our world.

With our business focused on engineering, IT and integrated solutions, the need to acquire, develop and retain highly skilled talent is central to the Company's success.

Our values of innovation, inclusion and integrity underpin our culture.

As advancing our company's culture is a key consideration for building long-term shareholder value, we work every day to build a culture that provides employees with a differentiated experience.

To do this, we strive to be a company that provides meaningful work and purpose, which means delivering solutions to our customers' most

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

challenging problems;

building our diversity, equity and inclusion efforts;

providing opportunities for our employees to develop and enhance their careers through every phase of the talent lifecycle;

and prioritizing employee flexibility and well-being.

Advancing Diversity, Equity and Inclusion

Our ongoing diversity, equity and inclusion efforts demonstrate our continuing commitment to hold ourselves accountable and to be transparent about both our progress and our areas of opportunity.

Diversity creates innovation and is critical to the delivery of exceptional business results.

In fiscal 2023, we accomplished significant advancement of workforce diversity through internal development, talent acquisition and employee engagement at all levels of the enterprise.

In fiscal 2022, to ensure our leadership reflects the diversity of the workforce, we established goals to achieve parity in the representation of women and people of color between our leader and non-leadership roles by the end of fiscal 2026.

In fiscal 2023, we achieved parity for women ahead of our committed timeline as we increased women in leadership to 28%.

In addition, we have increased people of color in leadership 400 basis points over the past two years.

To hold ourselves accoun table for our results, our executive compensation incentive plans are tied to meeting our diversity goals.

As of February 2, 2024, we employed approximately 24,000 individuals, consisting of the following:

Gender of employees

Race ethnicity of employees

American Indian

Two or more races

Veteran status of employees

Non-Military/Non-Veterans

Military/Veterans

In fiscal 2024, we accomplished significant advancement of workforce diversity, equity and inclusion through internal efforts, employee development, talent acquisition and employee engagement.

As of October 1, 2023, based on our population of full-time, non-executive employees, our pay gap was less than 1%, and the gender pay equity ratio was approximately 99% for the compensation of women relative to men.

In fiscal 2022, to ensure our leadership reflects the diversity of the workforce, we set goals to achieve parity in the representation of women and people of color between our leader and non-leadership roles by the end of fiscal 2026.

In fiscal 2023, we achieved our parity goal for women in leadership, and in fiscal 2024, we sustained it a t 28% .

In fiscal 2024, we made steady progress improving parity for people of color in leadershi p by 2% to 25%.

To hold ourselves accoun table for progress, our executive compensation incentive plans are tied to meeting our diversity goals.

As of February 2, 2024, our diversity representation was:

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SAIC Non-leader Employees 27% Women 34% People of Color

We are committed to developing a diverse leadership team from within our existing workforce.

Now in its second year, the Company’s AcceleratHER Women’s Leadership Academy program welcomed its second cohort in 2022.

This program is for high-performing, early to mid-career women who are on track to progress to leadership roles.

To meet our commitment to enhance our diversity, equity and inclusion in our hiring efforts, the Company continues to ensure our job descriptions, recruiting tools and processes help eliminate the potential for bias, and we actively promote diverse slates of candidates for leadership roles.

To cultivate inclusion, we have seven active Employee Resource Groups (ERGs) to allow our employees to foster connections with their fellow colleagues and bring their authentic selves to work.

We encourage our employees to actively participate in these ERGs, and as a result in fiscal 2023, our ERGs experienced a 13% year-over-year increase in engagement, which ultimately strengthens employee retention.

Third-parties acknowledge SAIC’s commitment to an inclusive workforce:

We are very proud that SAIC was on Forbes 2022 list of 500 Best Employers for Diversity and its Best Employers for Veterans;

We are developing a diverse leadership team from within our existing workforce by promoting a diverse slate of candidates for leadership roles;

ensuring all our job descriptions, recruiting tools and processes help eliminate the potential for bias;

and providing training, educational resources and leadership development programs, including our AcceleratHER Women’s Leadership Academy, Leadership 365 and Developing Frontline Leaders programs.

To ensure further opportunity to underrepresented populations, we offer several programs that incorporate internal networking components;

programs include Leadership Essentials, Management Accelerator, Executive Leadership Program and Connected Leaders Academy for Asian, Black and Hispanic and Latino cohorts.

To ensure greater opportunities for all, SAIC continues to provide gender pay parity and improve hiring and recruiting practices such as diversity, equity, inclusion and accessibility training for recruiters and hiring managers and use of key enablers such as diverse talent communities and sourcing tools.

We also do this through our partnerships with organizations such as historically Black colleges and universities ("HBCUs"), Black Engineer of the Year Awards ("BEYA"), DisabilityIN, Fair360 (formerly DiversityInc.), Women in Aerospace and Women in Tech.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

To help employees bring their authentic selves to work and cultivate inclusion in our culture, we have seven Employee Resource Groups ("ERGs") for our employees to connect with colleagues from across the enterprise.

Each ERG sponsors several internal events throughout the year and leads efforts to support local community and philanthropic events.

We encourage our employees and our leadership to participate in these ERGs, and as a result in fiscal 2024, our ERGs experienced a 14% year-over-year increase in membership as well as greater engagement.

This year we also introduced five social communities of interest ("COI") to connect employees as well as provide informal training opportunities and corporate support.

Third parties acknowledge SAIC’s inclusive workforce:

The Company was once again on Forbes list of 500 Best Employers for Diversity;

LATINA Style’s Top 50 Best Companies for Latinas;

and No.1 on DiversityInc’s 2022 Top Companies for Veterans.

For the fourth consecutive year, SAIC received a score of 100% on the Human Rights Campaign Foundation’s 2021 Corporate Equality Index (CEI), which is the most recent year for this recognition and is the nation’s premier benchmarking survey and report measuring corporate policies and practices related to LGBTQ workplace equality.

Newsweek America's Greatest Workplaces for Diversity and DiversityInc’s (now Fair360) Top Companies for Veterans in 2023.

Nurturing the Talent Lifecycle

At every point in the talent lifecycle, we are committed to creating an inclusive workforce culture that attracts highly skilled, exceptional talent and develops and sustains the critical skills of our employees to drive engagement and retention.

During fiscal 2023, we hired approximately 5,800 new e mployees and we are an industry leader in the retention of our employees.

At every opportunity in the talent lifecycle, we work to create an inclusive workforce culture that develops and sustains the critical skills of our employees to drive engagement and retention.

When we need to hire externally, our efforts are designed to attract highly skilled and exceptional talent.

Employee referrals often result in some of our best performing new hires.

In fiscal 2024, 32% of the approximately 5,900 new employees we hired came from an employee referral.

We are an industry leader in the retention of our employees, consistently decreasing voluntary attrition as a percentage of employees.

We invest in our people through technical and professional skills training, leadership development programs, higher education programs and tuition assistance programs for continuing education or industry certification.

In fiscal 2023, our employees completed approximately 129,000 hours of training that included over 7,800 hours of leadership specific development for aspiring managers.

In fiscal 2024, our employees completed approximately 155,000 hours of training, or nearly six and a half hours per employee.

This time included over 9,100 hours of leadership development.

Enhancing Culture and Employee Experience

Through our annual culture and engagement survey, we gather confidential feedback from our employees to learn and take action on how we can improve our efforts to create an authentic culture and provide an exceptional employee experience.

To ensure all levels of management understand employee sentiment, leaders receive aggregated results to develop an action plan to address their team’s needs.

Strengths and opportunities are identified, leading to focused investments to build on our cultural strengths and address areas for improvement.

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Inclusion and engagement are often witnessed through employee volunteering and philanthropy.

Our people embrace our legacy of community involvement and philanthropy.

Last year they volunteered more than 26,000 hours and donated both their time and money to causes circled around SAIC’s three pillars of focus:

Through our annual employee culture and engagement survey, we gather confidential feedback to learn and act on how we can continue to create and improve an authentic culture and an exceptional employee experience.

Across the board, scores from our annual culture survey have improved and are either above or closely aligned to the national benchmark.

Notably, SAIC saw significant improvement in its sustainable engagement and scored more favorably than the benchmarks for our industry.

All levels of management receive aggregated results to develop an action plan to address their team’s needs.

Strengths and opportunities are identified, leading to focused investments to build on cultural strengths and address areas for improvement.

Employee volunteering and philanthropy demonstrate engagement and inclusion in a culture.

Last year, our employees increased their volunteer hours by 10% by serving more than 29,000 hours in their communities.

Our employees donated both their time and money to support SAIC’s three giving pillars of focus:

military heroes, community wellness, and science, technology, engineering and mathematics ("STEM").

As a key component of our culture and at the core of our commitment to our employees is the SAIC Foundation, a public 501(c)(3) organization to address the unforeseen financial impact on employees and their families.

A component of our culture and commitment to our employees is the SAIC Foundation, a public 501(c)(3) organization to address the unforeseen financial impact on employees and their families.

The SAIC Foundation continues its work to help employees and their dependents by providing emergency funds to help them when financial hardships or natural disasters arise.

In fiscal 2023, the Foundation awarded 26 grants or $69,000 in direct support to our employees.

In calendar year 2023, the Foundation awarded grants for more than $58,000 in direct support to our employees.

Supporting Well-being

We provide wide-ranging options to support employees’ well-being, including an Employee Assistance Program and a wellness program.

For the third consecutive year, we are fully covering the increased costs of employee premiums in the Company’s medical insurance plans, holding employee premiums flat.

Last year, based on employee feedback, we substantially raised paid family leave to further support parents and multi-generational families and offered company-subsidized backup child and elder care.

This year, we significantly expanded military leave for our employees who continue to bravely serve our nation.

We provide wide-ranging options to support employees’ health and well-being, including an Employee Assistance Program that provides confidential counseling, financial information and resources, legal support and work-life assistance.

As many of our employees are remote and need flexibility in meeting their health and well-being needs, we offer a suite of convenient, easily accessible tools to keep our employees well wherever they may be.

Employee health and safety is always paramount to our business and to our employees’ well-being.

We encourage employees to participate in health and wellness initiatives, and actively work to prevent workplace hazards.

Throughout the COVID-19 pandemic, our priority has been the safety and well-being of our employees and business partners.

While all aspects of the COVID-19 virus have notably decreased, we continue to monitor COVID-19 matters and provide resources and programs as appropriate.

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Research and Development

For information related to our research and development activities, see Note 1 to the consolidated financial statements contained within this report.

For information related to our research and development activities, see Note 1—Business Overview and Summary of Significant Accounting Policies to the consolidated financial statements contained within this report.

government’s fiscal year ends on September 30.

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These regulations and risks are described in more detail under “Risk Factors” in Part I, Item 1A of this report.

We are committed to being a good steward of the environment through assessing, mitigating and reducing the impact we have on climate change and the physical environment in which we operate.

Due to the nature of our business, SAIC has limited exposure to environmental risks, yet we set self-imposed goals related to the reduction of greenhouse gas emissions, energy conservation, recycling and other important environmental initiatives.

Our direct emissions from owned or controlled sources (Scope 1) are used in the ordinary course of business and consist primarily of natural gas emissions from some of our facilities.

Indirect emissions from purchased electricity (Scope 2) are related to ongoing business operations at our various facilities.

SAIC measures, monitors and tracks our greenhouse gas (GHG) emissions (Scope 1 and Scope 2) and publicly discloses those emissions.

Given our recent acquisition activities, in 2019 we established a new corporate goal of an additional 15% reduction by 2025 for Scope 1 and Scope 2 emissions.

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Calendar year 2021 is our most recently disclosed data on GHG and reflects a 30% decrease in combined Scope 1 and Scope 2 emissions from our 2019 baseline.

We track and evaluate electricity consumption and efficiency at facilities where we have operational control.

In calendar year 2021, we reduced our electrical energy consumption by 10.5% from 2020 levels through our ongoing and consistent efforts across our portfolio to improve operating efficiencies including optimizing space utilization, deploying energy efficient lighting and implementing programs addressing after-hours setback and controls for heating and cooling.

SAIC encourages recycling and responsible disposal of non-hazardous waste and works to reduce waste through several initiatives, including leveraging remote work environments, promoting electronic equipment refurbishment programs and implementing programming to reduce paper usage.

Our goal is to be a good steward of the environment, and we are committed to reducing and mitigating any adverse impacts on the environment.

We are exposed to limited environmental risks due to the nature of our business, yet we set self-imposed goals for the reduction of greenhouse gas emissions, energy conservation and other important environmental initiatives.

We implement ISO 14001 environmental management standards, promote initiatives to reduce our direct environmental impacts and track and report key performance metrics.

As importantly, we regularly look for additional opportunities for environmental stewardship while balancing them with our business priorities.

We report our environmental performance through our annual Corporate Responsibility Report, the Global Reporting Initiative Standards 2021, the Task Force on Climate-Related Financial Disclosures and the CDP global disclosure system, which recently increased our score to a B acknowledging our active management of our environmental impact.

Calendar year 2022 is our most recently disclosed environmental data.

SAIC measures, monitors and tracks Scopes 1 and 2 greenhouse gas emissions.

For this reporting, we use the method outlined in the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.

As we achieved the reduction targets set for 2025, we have set a new goal of a 20% reduction in Scopes 1 and 2 emissions by 2030.

Executive Officers

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What changed 10-K

Item 1. Business