29 unchanged sentences
This includes integrating solutions into a spectrum of public service missions that impact travel, trade, health and the economy.
−Removed: The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives, including IT modernization, digital engineering, artificial intelligence ("AI"), mission systems support, training and simulation, and ground vehicles support.
+Added: The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives, including IT modernization, digital engineering, artificial intelligence ("AI"), mission systems support and advisory, training and simulation, and ground vehicles support.
These services include end-to-end solutions spanning the design, development, integration, deployment, management and operations, sustainment and security of the customers’ entire IT infrastructure.
1 unchanged sentence
Our Innovation Factory supports the operating segments by developing superior enterprise-class solutions which are delivered to the our customers as stand-alone solutions or integrated with and aligned to product offerings through the operations of the business to meet complex customer needs and accelerate digital transformation.
−Removed: The Innovation Factory includes designated teams focused on AI, application development, network services, platforms and cloud, and cyber.
−Removed: 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.
+Added: The Innovation Factory includes designated teams focused on AI, application development, network services, platforms and cloud, and cybersecurity.
+Added: It uses a highly automated, cloud-hosted tool set to rapidly build, test and deploy solutions and works with customers to enhance solutions going forward.
Costs associated with corporate functions that are not allocable to the reportable segments are presented as Corporate.
1 unchanged sentence
Economic Opportunities, Challenges, and Risks
−Removed: During the three months ended May 3, 2024, we generated 98% of our revenues from contracts with the U.S.
+Added: During the three and six months ended August 2, 2024, we generated 98% of our revenues from contracts with the U.S.
government, including subcontracts on which we perform.
1 unchanged sentence
government spending and the alignment of our offerings and capabilities with the budget priorities of the U.S.
−Removed: Appropriations measures passed in December 2022 provided full funding for the federal government through the end of government fiscal year ("GFY") 2023.
In March 2024, the President signed appropriation measures that provide funding for GFY 2024 for all of the U.S.
23 unchanged sentences
Our past performance was achieved by employees dedicated to supporting our customers' most challenging missions.
−Removed: Our current cost structure and
+Added: Our current cost structure and ongoing efforts to reduce costs by strategic sourcing and developing repeatable offerings sold "as a service" and as
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
−Removed: ongoing efforts to reduce costs by strategic sourcing and developing repeatable offerings sold "as a service" and as managed services in a more commercial business model are expected to allow us to compete effectively on price in an evolving environment.
+Added: managed services in a more commercial business model are expected to allow us to compete effectively on price in an evolving environment.
Our ability to be competitive in the future will continue to be driven by our reputation for successful program execution, competitive cost structure, development of new pricing and business models, and efficiencies in assigning the right people, at the right time, in support of our contracts.
12 unchanged sentences
The following table summarizes our condensed consolidated results of operations:
−Removed: Three Months Ended
−Removed: change May 5,
+Added: Three Months Ended Six Months Ended
+Added: change August 4,
+Added: 2023 August 2,
+Added: change August 4,
(dollars in millions)
−Removed: Revenues $ 1,847 (9 %) $ 2,028
+Added: $ 1,818 2 % $ 1,784 $ 3,665 (4 %) $ 3,812
Cost of revenues
+Added: 1,608 3 % 1,568 3,242 (4 %) 3,361
As a percentage of revenues
+Added: 88.4 % 87.9 % 88.5 % 88.2 %
Selling, general and administrative expenses
+Added: 77 (13 %) 88 162 (6 %) 172
(Gain) loss on divestitures, net of transaction costs — (100 %) (234) — (100 %) (240)
Other operating (income) expense
+Added: (1) 100 % — (4) 100 % —
Operating income
+Added: 134 (63 %) 362 265 (49 %) 519
As a percentage of revenues
+Added: 7.4 % 20.3 % 7.2 % 13.6 %
Provision for income taxes (19) (78 %) (88) (37) (67 %) (113)
$ 81 (67 %) $ 247 $ 158 (54 %) $ 345
−Removed: Net cash provided by operating activities $ 98 20 % $ 82
−Removed: Revenues decreased $181 million for the three months ended May 3, 2024 as compared to the same period in the prior year primarily due to the sale of the Supply Chain Business ($188 million) in the prior year (see Note 4—Divestitures to the condensed consolidated financial statements), and contract completions.
−Removed: This was partially offset by ramp up in volume on existing and new contracts .
−Removed: A djusting for the impact of the divestiture, revenues grew 0.4%.
+Added: Revenues increased $34 million for the three months ended August 2, 2024 as compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
+Added: Revenues decreased $147 million for the six months ended August 2, 2024 as compared to the same period in the prior year primarily due to the sale of the Supply Chain Business ($188 million) in the prior year (see Note 4—Divestitures to the condensed consolidated financial statements), and contract completions.
+Added: This was partially offset by ramp up in volume on existing and new contracts.
+Added: Adjusting for the impact of the divestiture, revenues grew 1.1%.
Operating Income.
−Removed: Operating income as a percentage of revenues for the three months ended May 3, 2024 decreased from the comparable prior year period primarily due to sale of the Supply Chain Business in the prior year, a gain recognized from the deconsolidation of FSA in the prior year period, and contract completions, partially offset by ramp up in volume on existing and new contracts .
+Added: Operating income as a percentage of revenues for the three months ended August 2, 2024 decreased from the comparable prior year period prim arily due to the gain on the sale of the Supply Chain Business ($234 million) in the prior year period, and contract completions, partially offset by ramp up in volume on existing and new contracts.
+Added: Operating income as a percentage of revenues for the six months ended August 2, 2024 decreased from the comparable prior year period primarily due to the gain on the sale of the Supply Chain Business ($233 million) in the prior year, a gain recognized from the deconsolidation of FSA ($7 million), and contract completions, partially offset by ramp up in volume on existing and new contracts.
Income Taxes.
−Removed: Our effective income tax rate was 19.0% and 20.0% for the three months ended May 3, 2024 and May 5, 2023, respectively.
−Removed: Our effective tax rate for the three months ended May 3, 2024, is lower compared to the effective tax rate from the same period in the prior year primarily due to higher tax benefits from the deduction for foreign-derived intangible income.
+Added: Our effective income tax rate was 19.6% and 19.3% for the three and six months ended August 2, 2024, respectively, and 26.4% and 24.7% for the three and six months ended August 4, 2023, respectively.
+Added: Our effective tax rate differs from the statutory tax rate primarily due to the deduction for foreign derived intangible income, research and development tax credits, and stock-based compensation windfalls.
+Added: Our effective tax rate for the three and six months ended August 2, 2024 decreased compared to the same periods in the previous year due to the non-recurrence of a gain from the disposition of the Supply Chain Business and the associated non-deductible goodwill.
Beginning in fiscal 2023, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures immediately in the year incurred and requires taxpayers to amortize such expenditures over five years for tax purposes.
4 unchanged sentences
We do not anticipate Pillar Two to have a significant impact on our effective tax rate or our consolidated results of operations, financial position, and cash flows.
−Removed: Cash Flows Provided by Operating Activities.
−Removed: Cash flows provided by operating activities increased $16 million for the three months ended May 3, 2024 as compared to the prior year primarily due to the higher cash provided by the Master Accounts Receivable Purchase Agreement ("MARPA Facility") in the current year (see Note 10—Sales of Receivables to the condensed consolidated financial statements contained within this report for additional information), partially offset by higher incentive-based compensation payments in the current year and other changes in working capital.
Segment and Corporate Results
1 unchanged sentence
The following tables summarize our results of operations by reportable segment:
−Removed: Defense and Intelligence
−Removed: Three Months Ended
−Removed: change May 5,
+Added: Defense and Intelligence Three Months Ended Six Months Ended
+Added: change August 4,
+Added: 2023 August 2,
+Added: change August 4,
(dollars in millions)
2 unchanged sentences
As a percentage of revenues 7.6 % 7.6 % 7.5 % 7.7 %
−Removed: Revenues decreased $161 million for the three months ended May 3, 2024 as compared to the same period in the prior year primarily due to the sale of the Supply Chain Business ($188 million) in the prior year, and contract completions.
+Added: Revenues increased $26 million for the three months ended August 2, 2024 as compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
+Added: Revenues decreased $135 million for the six months ended August 2, 2024 as compared to the same period in the prior year primarily due to the sale of the Supply Chain Business ($188 million) in the prior year, and contract completions.
This was partially offset by ramp up in volume on existing and new contracts.
−Removed: A djusting for the impact of the divestiture, revenues grew 1.9%.
+Added: Adjusting for the impact of the divestiture, revenues grew 1.9%.
Operating Income:
−Removed: Operating income as a percentage of revenues for the three months ended May 3, 2024 decreased from the comparable prior year period primarily due to the sale of the Supply Chain Business in the prior year.
−Removed: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
−Removed: Three Months Ended
−Removed: change May 5,
+Added: Operating income as a percentage of revenues for the three months ended August 2, 2024 was comparable to the prior year period, primarily due to ramp up in volume on existing and new contracts, offset by contract completions.
+Added: Operating income as a percentage of revenues for the six months ended August 2, 2024 decreased from the comparable prior year period primarily due to contract completions and the sale of the Supply Chain Business in the prior year, partially offset by ramp up in volume on existing and new contracts.
+Added: Three Months Ended Six Months Ended
+Added: change August 4,
+Added: 2023 August 2,
+Added: change August 4,
(dollars in millions)
2 unchanged sentences
As a percentage of revenues 8.4 % 10.9 % 8.4 % 10.3 %
−Removed: Revenues decreased $20 million for the three months ended May 3, 2024 as compared to the same period in the prior year primarily due to reduced volume partially offset by new contracts.
+Added: Revenues increased $8 million for the three months ended August 2, 2024 as compared to the same period in the prior year primarily due to ramp up in volume on existing contracts.
+Added: Revenues decreased $12 million for the six months ended August 2, 2024 as compared to the same period in the prior year primarily due to reduced volume on existing contracts, partially offset by new contracts.
Operating Income:
−Removed: Operating income as a percentage of revenues for the three months ended May 3, 2024 decreased from the comparable prior year peri od primarily due to reduced volume.
−Removed: Three Months Ended
−Removed: change May 5,
+Added: Operating income as a percentage of revenues for the three months ended August 2, 2024 decreased from the comparable prior year period partially due to timing and volume mix.
+Added: Operating income as a percentage of revenues for the six months ended August 2, 2024 decreased from the comparable prior year primarily due to reduced volume on existing contracts.
+Added: Three Months Ended Six Months Ended
+Added: change August 4,
+Added: 2023 August 2,
+Added: change August 4,
(dollars in millions)
−Removed: Operating loss
+Added: Operating (loss) income
$ (7) 103 % $ 213 $ (17) 108 % $ 204
−Removed: Operating Loss.
−Removed: Operating loss increased $1 million for the three months ended May 3, 2024 as compared to the same period in the pri or year primarily due to the gain recognized from the deconsolidation of FSA in the prior year period, partially offset by lower selling, general and administrative expenses.
+Added: Operating (Loss) Income:
+Added: Operating loss increased $220 million for the three months ended August 2, 2024 as compared to the same period in the prior year primarily due to the gain recognized from the divestiture of the Supply Chain Business in the prior year period ($234 million), partially offset by lower selling, general and administrative expenses.
+Added: Operating loss increased $221 million for the six months ended August 2, 2024 as compared to the same period in the prior year primarily due to the divestiture of the Supply Chain Business in the prior year ($233 million) and the gain recognized from the deconsolidation of FSA ($7 million), partially offset by lower selling, general and administrative expenses.
Non-GAAP Measures
3 unchanged sentences
Other companies may define similar measures differently.
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
EBITDA and Adjusted EBITDA.
5 unchanged sentences
We believe that EBITDA and adjusted EBITDA provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding our long-term financial performance.
−Removed: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
EBITDA and adjusted EBITDA for the periods presented were calculated as follows:
−Removed: Three Months Ended
+Added: Three Months Ended Six Months Ended
+Added: 2024 August 4,
+Added: 2023 August 2,
+Added: 2024 August 4,
(dollars in millions)
−Removed: Net income $ 77 $ 98
+Added: $ 81 $ 247 $ 158 $ 345
Interest expense, net and loss on sale of receivables
1 unchanged sentence
Depreciation and amortization
−Removed: EBITDA 167 194
+Added: 169 402 336 596
EBITDA as a percentage of revenues
+Added: 9.3 % 22.5 % 9.2 % 15.6 %
Acquisition and integration costs (1)
2 unchanged sentences
(Gain) loss on divestitures, net of transaction costs
+Added: — (234) — (240)
Adjusted EBITDA
+Added: $ 170 $ 174 $ 336 $ 363
Adjusted EBITDA as a percentage of revenues
+Added: 9.4 % 9.8 % 9.2 % 9.5 %
(1) Adjustment consists of a reversal of immaterial costs related to the Koverse acquisition.
1 unchanged sentence
government Cost Accounting Standards.
−Removed: Adjusted EBITDA as a percentage of revenues for the three months ended May 3, 2024 decreased to 9.0% from 9.3% in the prior year period, primarily due to contract completions, partially offset by ramp up in volume on existing and new contracts .
+Added: Adjusted EBITDA as a percentage of revenues for the three and six months ended August 2, 2024 decreased compared to the same periods in the prior year primarily due to contract completions, partially offset by ramp up in volume on existing and new contracts.
Other Key Performance Measures
4 unchanged sentences
We calculate net bookings as the period’s ending backlog plus the period’s revenues less the prior period’s ending backlog and initial backlog obtained through acquisitions.
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts as work is performed.
8 unchanged sentences
Funded backlog for contracts with non-government customers represents the estimated value on contracts, which may cover multiple future years, under which we are obligated to perform, less revenues previously recognized on these contracts.
−Removed: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
• Negotiated Unfunded Backlog.
7 unchanged sentences
The estimated value of our total backlog as of the dates presented was:
−Removed: May 3, 2024 February 2, 2024
+Added: August 2, 2024 February 2, 2024
Defense and Intelligence
2 unchanged sentences
Funded backlog
+Added: $ 3,411 $ 826 $ 4,237 $ 2,707 $ 832 $ 3,539
Negotiated unfunded backlog
+Added: 15,819 2,843 18,662 16,316 2,908 19,224
Total backlog
−Removed: We had net bookings worth an estimated $2.6 billion during the three months ended May 3, 2024.
+Added: $ 19,230 $ 3,669 $ 22,899 $ 19,023 $ 3,740 $ 22,763
+Added: We had net bookings worth an estimated $1.2 billion and $3.8 billion during the three and six months ended August 2, 2024.
Contract Types.
2 unchanged sentences
The following table summarizes revenues by contract type as a percentage of each reportable segment and total SAIC revenues for the periods presented:
−Removed: Three Months Ended May 3, 2024
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
+Added: Three Months Ended
+Added: August 2, 2024
+Added: August 4, 2023
Defense and Intelligence
+Added: Defense and Intelligence
(in millions)
5 unchanged sentences
Total 100 % 100 % 100 % 100 % 100 % 100 %
−Removed: Three Months Ended May 5, 2023
+Added: Six Months Ended
+Added: August 2, 2024
+Added: August 4, 2023
Defense and Intelligence
+Added: Defense and Intelligence
(in millions)
5 unchanged sentences
Total 100 % 100 % 100 % 100 % 100 % 100 %
−Removed: The change in contract mix for the three months ended May 3, 2024 is primarily due to a decrease in firm-fixed price type contracts due to the divestiture of the Supply Chain Business in the prior year, which historically had a higher proportion of these contracts.
−Removed: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
+Added: The change in contract mix for the six months ended August 2, 2024 is primarily due to a decrease in firm-fixed price type contracts due to the divestiture of the Supply Chain Business in the prior year, which historically had a higher proportion of these contracts.
Cost of Revenues Mix.
3 unchanged sentences
The following table presents cost mix as a percentage of each reportable segment and total SAIC revenues for the periods presented:
−Removed: Three Months Ended May 3, 2024
+Added: Three Months Ended
+Added: August 2, 2024
+Added: August 4, 2023
Defense and Intelligence
+Added: Defense and Intelligence
(in millions)
3 unchanged sentences
Total 100 % 100 % 100 % 100 % 100 % 100 %
−Removed: Three Months Ended May 5, 2023
+Added: Six Months Ended
+Added: August 2, 2024
+Added: August 4, 2023
Defense and Intelligence
+Added: Defense and Intelligence
(in millions)
4 unchanged sentences
Total 100 % 100 % 100 % 100 % 100 % 100 %
−Removed: The change in cost of revenues mix for the three months ended May 3, 2024 is primarily due to a decrease in supply chain materials-related costs due to the divestiture of the Supply Chain Business in the prior year.
+Added: The change in cost of revenues mix for the six months ended August 2, 2024 is primarily due to a decrease in supply chain materials-related costs due to the divestiture of the Supply Chain Business in the prior year.
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Liquidity and Capital Resources
10 unchanged sentences
See Note 7—Debt Obligations to the condensed consolidated financial statements contained within this report for additional information.
−Removed: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Historical Cash Flow Trends
The following table summarizes our cash flows:
−Removed: Three Months Ended
+Added: Six Months Ended
+Added: 2024 August 4,
(in millions)
4 unchanged sentences
Net Cash Provided by Operating Activities.
−Removed: Refer to “Results of Operations” above for a discussion of the changes in cash provided by operating activities between the three months ended May 3, 2024 and the comparable prior year period.
+Added: Cash flows provided by operating activities increased $4 million for the six months ended August 2, 2024 as compared to the prior year primarily due to timing of customer collections and vendor payments, lower tax payments in the current year, and other net favorable changes in working capital, partially offset by higher incentive-based compensation payments and higher cash used from the Master Accounts Receivable Purchase Agreement ("MARPA Facility") in the current year (see Note 10—Sales of Receivables to the condensed consolidated financial statements contained within this report for additional information).
Net Cash (Used in) Provided by Investing Activities.
−Removed: Cash used investing activities for the three months ended May 3, 2024 was $7 million compared to cash provided by investing activities of $336 million in the prior year period.
+Added: Cash used in investing activities for the six months ended August 2, 2024 was $16 million compared to cash provided by investing activities of $334 million in the prior year period.
This change is primarily due to the $355 million of cash proceeds for the sale of the Supply Chain Business in the prior year period (see Note 4 to the condensed consolidated financial statements).
Net Cash Used in Financing Activities.
−Removed: Cash used in financing activities for the three months ended May 3, 2024 increased compared to the prior year period primarily due to higher principal payments, net of proceeds received from borrowings and higher share repurchases in the current year.
+Added: Cash used in financing activities for the six months ended August 2, 2024 decreased compared to the prior year period primarily due to higher proceeds received from borrowings, net of principal payments, partially offset by higher share repurchases in the current year.
Critical Accounting Policies and Estimates
−Removed: There have been no changes to our critical accounting policies and estimates during the three months ended May 3, 2024 from those disclosed in our most recently filed Annual Report on Form 10-K.
+Added: There have been no changes to our critical accounting policies and estimates during the six months ended August 2, 2024 from those disclosed in our most recently filed Annual Report on Form 10-K.
+Added: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Recently Issued But Not Yet Adopted Accounting Pronouncements
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.