What changed in this filing

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Item 1. Business

2025-03-17 compared with 2024-03-20 · 109 added, 136 removed, 167 unchanged (59% of the section changed)

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

Our business has a long and successful history of over 50 years serving all branches (Army, Air Force, Navy, Marines and Coast Guard) and agencies of the Department of Defense ("DoD"), National Aeronautics and Space Administration ("NASA"), U.S.

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

Our business has a long and successful history of over 50 years serving all military forces (Army, Air Force, Navy, Marines, Coast Guard, and Space Force) and agencies of the Department of Defense ("DoD"), National Aeronautics and Space Administration ("NASA"), U.S.

Department of State, Department of Justice, Department of Homeland Security and members of the Intelligence Community.

We serve our customers through approximately 1,700 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.

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

The five business groups, which are also our operating segments, are aggregated into two reportable segments for financial reporting purposes given the similarity in economic and qualitative characteristics, and based on the nature of the customers they serve.

Our two reportable segments are the Defense and Intelligence segment and the Civilian segment.

The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the DoD and Intelligence Community of the United States Government.

The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments, in order to deliver services for citizen well-being, border security, and protecting lives.

This includes integrating solutions into a spectrum of public service missions that impact travel, trade, health and the economy.

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.

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.

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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.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Weapon Systems Support:

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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

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facing warfighters.

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 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.

Our Innovation Factory supports the operating segments by developing enterprise-class solutions which are delivered to our customers as stand-alone solutions or integrated with and aligned to our product offerings through the operations of the business 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, engineering, and cybersecurity.

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.

Within this report, we have recast historical financial information to reflect the new reportable segments.

The recast historical information has no impact on our previously reported consolidated financial statements.

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.

We deliver systems to ensure the U.S.

maintains proactive control over every threat in the undersea domain.

Border of the Future:

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Citizen Experience:

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

We drive commercial-quality U.S.

government 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.

We develop integrated conflict deterrence, combat preparedness, and data connectivity capabilities for the U.S.

Military and Intelligence Community.

Next Generation Space:

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With approximately $7.5 billion in revenue in fiscal 2025, we are one of the largest pure-play technology service providers to the U.S.

Our significant scale advantage enables us to serve as a prime systems integrator on large, complex programs and to allocate resources toward further developing and expanding our repeatable, proven solutions and differentiated technical capabilities.

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technical capabilities.

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

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The quality, training and knowledge of our employees are important competitive assets.

Our skilled workforce ranges from entry-level technicians to expert-level professionals in network engineering, software design and development, IT modernization, logistics, technology integration and systems engineering.

Our skilled workforce ranges from entry-level technicians to expert-level, highly cleared professionals in network engineering, software design and development, IT modernization, logistics, technology integration and systems engineering.

Additionally, the majority of our workforce holds an active security clearance, which is required on many of our existing programs and future program opportunities.

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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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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.

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

On February 4, 2023, the we sold 0.1% of our 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.

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.

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

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.

Key Customers

In each of fiscal 2024, 2023 and 2022, 98% of our total revenues were attributable to prime contracts with the U.S.

In fiscal 2025, 2024 and 2023, 98% of our total revenues were attributable to prime contracts with the U.S.

government or to subcontracts with other contractors engaged in work for the U.S.

In fiscal 2025 and fiscal 2024, approximately 52% of our total revenues were attributable to the "Department of Defense", while 46% were attributable to "Intelligence and other federal government agencies" and the remainder attributable to "Commercial, state and local governments and international" customers.

In fiscal 2023, 49% of our total revenues were attributable to both the "Department of Defense" and "Intelligence and other federal government agencies" respectively, with the remainder attributable to "Commercial, state and local governments and international" customers.

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

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 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 %

Other federal government 46 % 49 % 50 %

government 98 % 98 % 98 %

Other 2 % 2 % 2 %

Total 100 % 100 % 100 %

As a government contractor, we operate in a heavily regulated environment and are subject to various laws, regulations, and policies at the federal, state, and local levels.

The Federal Acquisition Regulation ("FAR") is the primary regulation governing the procurement process for U.S.

government contracts.

Together with various agency-specific supplements, the FAR governs the terms and conditions of government contracts, including bidding, performance, and pricing, and imposes specific compliance obligations related to security, intellectual property, data privacy, and environmental regulations.

For contracts with the DoD, we are subject to the Defense Federal Acquisition Regulation Supplement ("DFARS"), which imposes additional requirements on defense contractors,

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Our business is heavily regulated and we must comply with and are affected by laws and regulations, including Federal Acquisition Regulations ("FAR") and U.S.

government Cost Accounting Standards ("CAS"), relating to the award, administration and performance of U.S.

government and other contracts.

These regulations set forth policies, procedures and requirements for the acquisition of goods and services by the U.S.

government and impose a broad range of requirements, many of which are unique to government contracting and include procurement, import and export, security, contract termination and adjustment, and audit requirements.

In addition, these regulations govern contract pricing and reimbursable costs by, among other things, requiring certification and disclosure of cost or pricing data in connection with certain contract negotiations, defining allowable and unallowable costs, and otherwise governing the right to reimbursement under various flexibly priced contracts.

These laws and regulations impose specific cost accounting practices that may increase accounting and internal control costs associated with compliance with government standards.

including specific cybersecurity measures, contractor security clearances, and compliance with the Defense Contract Audit Agency ("DCAA") and Defense Contract Management Agency ("DCMA") audit and oversight processes.

The DFARS also includes clauses related to the protection of classified and sensitive information, with which we must comply when handling such materials.

The regulations govern contract pricing and reimbursable costs by, among other things, requiring government contractors to provide cost or pricing data when negotiating certain government contracts, defining allowable and unallowable costs, and otherwise governing the right to reimbursement under various flexibly priced contracts.

government may revise its procurement practices or adopt new contract rules and regulations at any time.

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

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 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.

government laws, regulations, and procurement policies and practices (including laws and regulations relating to bribery of foreign government officials, import and export control, investments, exchange controls and repatriation of earnings).

In some cases, such changes could have an adverse impact on our profitability and ability to win new business.

The DoD is increasingly using procedures like “other transaction authority” agreements ("OTAs") to accelerate the procurement process for emerging technologies.

OTAs bypass many of the formal and time-consuming requirements found in the typical government contracting process, reducing the barriers to entry and consequently increasing competition from companies that previously did not compete for public sector work.

In addition, modifications to cost-reimbursement contract structures could limit our ability to seek reimbursement of certain costs and overhead expenses and therefore erode our profit margins.

Most of our contracts are subject to the Cost Accounting Standards ("CAS"), which are a set of rules and guidelines that govern how companies account for costs on government contracts.

We must ensure that our cost accounting practices comply with CAS requirements, which include specific methods for handling indirect costs, overhead rates, and labor allocation.

government may terminate our contracts and subcontracts at any time either at its convenience or for default, based on our failure to meet specified performance requirements.

If a contract is terminated for convenience, we generally are entitled to the costs already incurred on the contract and profit on those costs.

If a contract is terminated for default, we should be entitled to payment for our work that the government customer has accepted.

Some of our operations and service offerings require us to access personally identifiable information and protected health information.

These activities are regulated by extensive federal and state privacy and data security laws requiring rigorous privacy protections and security safeguards.

Our business and operations are subject to both U.S.

laws, regulations, and procurement policies and practices, including regulations relating to lobbying, conflicts of interest, import-export controls, foreign investment, tariffs, taxation, exchange controls, repatriation of earnings, and the Foreign Corrupt Practices Act and other anti-corruption laws.

Violations of these laws could result in financial penalties, suspension or debarment, and/or the loss of government contracts.

We have policies and procedures designed to ensure compliance with these laws and regulations, and a robust ethics and compliance program to maintain a compliance-oriented workforce.

We are also susceptible to varying political and economic risks.

In order to help ensure compliance with these complex laws and regulations, we have established policies and procedures that address our approach to meeting these requirements and also administer a robust ethics and compliance training program to maintain a compliance-oriented workforce.

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

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

We must comply with and are affected by laws and regulations relating to the formation, administration and performance of U.S.

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When an agency has a requirement, interested contractors are solicited, qualified and then provided with a request for proposal.

The process of qualifying prospective bidders, soliciting proposals and evaluating contractor bids requires the agency to maintain a large, professional procurement staff and the bidding and selection process can take a year or more to complete.

This method of contracting may provide the contractor with greater certainty of the timing and amounts to be received at the time of contract award because it generally results in the customer contracting for a specific scope of work from the single successful awardee.

The process of qualifying prospective bidders, soliciting proposals and evaluating contractor bids and selection process can take a year or more to complete.

This method of contracting may provide the contractor with greater certainty of the timing and amounts to be received at the

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

time of contract award because it generally results in the customer contracting for a specific scope of work from the single successful awardee.

Sole Source Award Contracts.

government agencies may procure services and solutions through sole source award contracts in situations where only one contractor is deemed to qualify to provide the specified services due to proprietary technology, unique capabilities, or specialized expertise.

This method bypasses the competitive bidding process, and a detailed justification must be approved by the U.S.

government agency to ensure that no other contractor can meet the specified requirements.

Similar to single award contracts, this method provides the contractor with greater certainty regarding the timing and amounts to be received at the time of contract award.

Indefinite Delivery, Indefinite Quantity ("IDIQ") Contracts.

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Similar to IDIQ contracts, at the time a GSA Schedule contract is awarded, a contractor may have limited or no visibility as to the ultimate amount of services or solutions that customers will ultimately purchase under the contract.

Other Transaction Authority (“OTA”) Agreements.

government may procure and enter into OTA agreements, which are used for research projects, prototype development or follow-on production to encourage rapid innovation and technological advancement.

The OTA process includes submitting proposals, being selected as a partner and negotiating terms which bypasses the traditional FAR contracts procurement processes.

Contract Types

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

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• 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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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.

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

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.

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We selectively pursue opportunities to license or transfer our technologies to third parties.

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In connection with the performance of services, the U.S.

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People and Culture

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

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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

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:

SAIC Leaders 28% Women 25% People of Color

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

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;

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

Nurturing the Talent Lifecycle

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 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 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:

Our success starts with our people.

Because our business focuses on high-end solutions in mission IT, enterprise IT, engineering services, and professional services, the ability to acquire, develop, and retain highly skilled talent is central to our operations and prosperity.

As of January 31, 2025, we employed approximately 24,000 individuals, including more than 6,000 active military or veterans.

Our corporate values of innovation, inclusion and integrity underpin our culture, and that culture is key to advancing long-term shareholder interests.

At SAIC, we strive for the most innovative solutions and best business results by respecting our people and partnering passionately with our customers and communities.

We empower our people to take appropriate risks and leverage emerging technology to solve our customers’ most complex problems.

Our employees excel because they are invested in our Company, our mission, and our customers’ success.

We work each day to create an environment where engaged employees perform meaningful work with purpose.

We deliver solutions to our customers' most challenging problems while giving our employees opportunities to develop their careers through every phase of the talent lifecycle in a flexible and healthy work environment.

Our commitment to our employees, and their commitment to our Company, are reflected in our fiscal 2025 culture survey results, where we achieved our highest overall score in five years ― exceeding certain national benchmarks by 6%.

This mutual commitment is further illustrated by our employees’ generous donations of time and money to support SAIC’s three giving pillars of focus:

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

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.

Last year, our employees volunteered 33,000 hours in their communities.

At the same time, the SAIC Charitable Foundation (the "Foundation"), a public 501(c)(3) organization created by SAIC, collected emergency relief funds for employees faced with unforeseen financial hardships, such as those caused by natural disasters.

In calendar year 2024, the Foundation awarded grants for more than $235,000 in direct support to our employees.

Our customers and the business community recognize and appreciate our innovative workforce.

In fiscal 2025, we received several noteworthy accolades, including Fortune’s Sector Leaders in Technology;

The Wall Street Journal & Drucker Institute 250 Best-Managed Companies of 2024;

and Forbes' America’s Best Employers for Engineers.

Talent Development

In fiscal 2025, we continued to invest in our workforce through various talent development and retention initiatives, such as “upskilling,” rotational assignments, and leadership development programs.

We have more than 20 third-party partners that help us deliver a wide range of job-specific training.

In addition to technical and professional skills training, we offer higher education and tuition assistance programs for continuing education and industry certifications.

Our employees completed more than 140,000 training hours, or nearly six hours per employee.

We seek to build our leadership team from within our workforce, with merit-based promotions of the most qualified candidates.

We invest in tomorrow’s leaders by providing leadership development programs such as Leadership 365 and Developing Frontline Leaders.

More than 450 employees participated in leadership development programs for nearly 8,500 hours of training.

We also had more than 300 early career professionals joined us for internships.

When we need to hire externally, we focus on identifying and attracting highly skilled, exceptional talent.

Employee referrals often result in our best-performing new hires.

In fiscal 2025, more than 21% of our approximately 5,000 new employees came from employee referrals.

With a voluntary attrition rate of approximately 13% in the current fiscal year, we are an industry leader in employee retention, having steadily decreased voluntary turnover as a percentage of employees over the past three years.

Supporting Well-being

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.

We are committed to the health and well-being of our workforce.

Our employees’ safety is paramount, and we actively work to prevent workplace hazards.

We also encourage our employees to participate in health and wellness

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Our wellness program helps employees incorporate healthy actions into everyday life through useful resources and valuable incentives.

We offer a suite of convenient, easily accessible tools to support wellness, whether an employee works at an SAIC facility, at a customer site, or remotely.

Our Employee Assistance Program provides confidential counseling, personal financial guidance and resources, legal support, and work-life assistance.

We are committed to providing accommodations to employees with disabilities that enable them to perform the essential functions of their job and enjoy equal employment opportunities.

Research and Development

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Our operations are subject to various foreign, federal, state, and local environmental protection and health and safety laws and regulations.

Although we do not currently anticipate that compliance costs or the liabilities associated with environmental laws or climate change will adversely affect our business, financial position, and results of operations and/or cash flows, it is possible that we may incur material costs or liabilities in the future.

Although we do not currently anticipate that compliance costs or the liabilities associated with environmental laws will adversely affect our business, financial position, and results of operations and/or cash flows, it is possible that we may incur material costs or liabilities in the future.

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

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