Leidos(US:LDOS)2025-02-11 18:19Revenue Segmentation - National Security & Digital segment accounted for 44% of total revenues in fiscal 2024, down from 47% in both fiscal 2023 and fiscal 2022[25] - Health & Civil segment represented 30% of total revenues in fiscal 2024, an increase from 27% in both fiscal 2023 and fiscal 2022[26] - Commercial & International segment maintained 14% of total revenues for both fiscal 2024 and fiscal 2023, and 13% for fiscal 2022[29] - Defense Systems segment contributed 12% of total revenues in both fiscal 2024 and fiscal 2023, slightly down from 13% in fiscal 2022[31] - The company generated $7.962 billion from the DoD and U.S. Intelligence Community, representing a significant portion of total revenues[420] Financial Performance - Leidos Holdings, Inc. reported revenues of $16,662 million for the fiscal year ended January 3, 2025, representing a 7.9% increase from $15,438 million in 2023[319] - The company's net income attributable to common stockholders increased to $1,254 million in 2025, compared to $199 million in 2023, marking a significant growth of 530.7%[319] - Operating income rose to $1,827 million in 2025, up from $621 million in 2023, reflecting a substantial increase of 194.5%[319] - Total assets increased to $13,104 million as of January 3, 2025, compared to $12,695 million at the end of 2023, indicating a growth of 3.2%[317] - The company’s total liabilities increased to $8,644 million in 2025, compared to $8,437 million in 2023, reflecting a rise of 2.5%[317] - Net income for the year ended January 3, 2025, was $1,251 million, a significant increase from $208 million in 2023[321] Employee Statistics - Approximately 48,000 full and part-time employees as of January 3, 2025, with 42,600 located in the United States[41] - 37% of employees hold degrees in science, technology, engineering, or mathematics fields[41] - The workforce consists of 65% male and 35% female employees[42] - 52% of employees possess U.S. security clearances[41] - 24% of employees have advanced degrees, and 19% are military veterans[41] Research and Development - Company-funded research and development expenses were $150 million for fiscal 2024, representing 0.9% of consolidated revenues[59] - Company-funded research and development expenses increased to $150 million in fiscal 2024 from $128 million in 2023 and $116 million in 2022, indicating a focus on innovation and development[373] Debt and Financial Instruments - As of January 3, 2025, Leidos Holdings, Inc. had $4.7 billion in debt, including $1.0 billion related to senior unsecured term loans with a variable interest rate based on the Secured Overnight Financing Rate (SOFR) plus a margin[296] - The company has interest rate swap agreements with a notional value of $500 million to hedge cash flows of a portion of its variable rate senior unsecured term loan, converting part of its variable rate borrowing to fixed rate[297] - A hypothetical 10% movement in the one-month SOFR rate would not significantly impact the company's annual interest expense[298] Contractual and Regulatory Environment - The company is subject to substantial regulation and unique risks in government contracting, including the ability of the U.S. government to cancel contracts at any time[68] - The company utilizes various contract types, including Cost-reimbursement, Fixed-price-incentive-fee, and Time-and-materials contracts, which affect revenue generation and risk exposure[69] - Revenue recognition for contracts with the U.S. government is subject to the Federal Acquisition Regulation (FAR), ensuring competitive pricing[358] Acquisitions and Dispositions - The company completed the acquisition of Cobham Aviation Services Australia's Special Mission business in fiscal 2022[36] - The company recognized $128 million in revenues related to the Cobham Special Mission acquisition in fiscal 2024, compared to $115 million in fiscal 2023[432] - The company disposed of an immaterial business for approximately $2 million on October 20, 2023, with net assets of $7 million divested[434] Stockholder Equity and Compensation - Total stockholders' equity as of January 3, 2025, was $4,460 million, an increase from $4,258 million in 2023[323] - The company’s stock-based compensation is recognized over the requisite service period, impacting financial results based on fair value estimates[414][416] International Operations - Foreign operations accounted for 8% of total revenues for fiscal years 2024, 2023, and 2022, indicating a stable contribution from international markets[300] - The company’s international operations are subject to additional risks, including compliance with U.S. government laws and regulations applicable to international business[423]