About Leidos Holdings

Leidos Holdings, Inc. (Leidos) engages in developing smarter technology solutions, particularly for customers in highly regulated industries. The company brings domain-specific capabilities and innovations to customers in each of these markets by leveraging five technical core capabilities: digital modernization, cyber operations, mission software systems, integrated systems and mission operations. Applying the company’s technically-advanced solutions to help solve its customers' most difficult problems has enabled the company to build strong relationships with key customers. The company’s customers include the U.S. Department of Defense (‘DoD’), the U.S. Intelligence Community, the U.S. Department of Homeland Security (‘DHS’), the Federal Aviation Administration (‘FAA’), the Department of Veterans Affairs (‘VA’), National Aeronautics and Space Administration (‘NASA’), and many other U.S. civilian, state and local government agencies, foreign government agencies and commercial businesses. With a focus on delivering mission-critical solutions, Leidos generated 87% of revenues for the year ended December 29, 2023 (‘fiscal 2023’) from the U.S. government contracts, either as a prime contractor or a subcontractor to other contractors engaged in work for the U.S. government. Business Segments The company operates through three reportable segments: Defense Solutions, Civil, and Health. The company’s operations and reportable segments are organized around the customers and markets the company serves. The company provides a wide array of scientific, engineering and technical services and solutions across these reportable segments. Approximately 9% of the company’s revenues are generated by entities located outside of the United States. Defense Solutions Defense Solutions has provided leading-edge and technologically advanced services, solutions and products to a broad customer base. The company’s ever-changing technologies and innovations cover a wide spectrum of markets with primary areas of concentration in digital modernization, mission systems and integration, Command, Control, Computers, Communications, Intelligence, Surveillance and Reconnaissance (‘C4ISR’) technologies and services, maritime solutions, transformative software, analytics, intelligence analysis, mission support and logistics services, weapons systems and space systems and solutions. The company is dedicated to delivering solutions backed by innovation-generating research and development to meet the evolving missions of its customers. The company provides a diverse portfolio of national security solutions and systems for air, land, sea, space and cyberspace for the U.S. Intelligence Community, the DoD, the Space Development Agency, NASA, Defense Information Systems Agency (‘DISA’), military services, government agencies of the U.S. allies abroad and other federal and commercial customers in the national security industry. The company is heavily engaged in the top defense Research Development Test and Evaluation priorities that are driven by critical evolving threat-driven needs. The company’s solutions deliver innovative technology, large-scale systems, command and control platforms, data analytics, logistics and cybersecurity solutions, as well as intelligence analysis and operations support to critical missions around the world. Digital Modernization – As an industry leader in cyber and enterprise IT, the company provides extensive worldwide digital support for its nation's largest and most critical infrastructure. The company designs, develops, implements and maintains IT environments to provide stability and flexibility to mission needs. The company’s capabilities support offerings, including cybersecurity, data analytics, and operations and logistics. The company’s cybersecurity solutions help detect and manage the most sophisticated cyber threats. C4ISR Technologies and Services – The company offers a wide range of technologies and services in multiple domains that address the nation's most critical threats and deliver solutions to the U.S. Intelligence Community, DoD and military services. The company’s market concentration is on airborne and ground intelligence, surveillance and reconnaissance (‘ISR’), maritime systems, electronic warfare systems, distributed sensor systems, autonomous systems, sensors, Command and Control (‘C2’), Joint All-Domain Command and Control (‘JADC2’) and Multi-Domain Operations. The company provides multi-spectral, airborne, ground, maritime and space-based ISR collection, algorithm development and processing systems, advanced sensor design, C2 solutions and training systems. The company also provides laser and radio frequency-based communications systems for airborne, ground, naval and space platforms. The company links its high-end solutions to other key services demanded by its customers. In the air, the company supports a fleet of government and Leidos-owned fixed wing, rotary wing and unmanned aircraft. The company applies an open architecture approach to digitally connect the joint force across air, land, sea, cyber and space domains in the support of the DoD’s JADC2 imperative and support through innovative solutions, essential services and enriched data management tools facilitating critical decision making. Maritime Solutions – On and under the sea, the company offers a wide range of capabilities. The company continues to enhance its surface and subsurface autonomous and unmanned technologies to help make maritime operations safer and more efficient for government and industry by providing leading sensor systems, signal processing, communications hardware and software to support these vital missions. In space the company provides sensor, algorithm development and integrated payload capabilities to identify and track threats and cue defensive systems. The company has developed and delivered full integrated small satellite systems. The company is a market leader in submarine collection technologies and anti-submarine warfare system installation and maintenance and are expanding the company’s capabilities in these areas to meet market demand for this growing threat. The company also provides prototyping and research and development support services to a wide variety of DoD customers from concept analysis to classified manufacturing. The company’s Gibbs & Cox subsidiary is one of the largest independent naval architecture and marine engineering firm by headcount in the United States. The company’s naval architecture services span the entire ship’s lifetime, from early-stage concept designs through detailed design, shipyard construction support, full lifecycle and sustainment support, ship alterations, service life extensions, and disposal. The company’s Marine Engineering involves a wide range of activities, beginning with concept and feasibility design and continues through detailed design, construction support, life-cycle support and into ship-alt design for service-life extensions. Transformative Software, Analytics – The company offers extensive software development capabilities for C2, intelligence and information systems and deliver mission and enterprise-level solutions to the U.S. and allied defense and intelligence organizations. This includes encryption key management, the use of artificial intelligence to automate and streamline processes and the development of software to manage some of the worlds toughest data problems. The company offers data analytics capabilities, and the company designs, develops, integrates, deploys and supports information-centric software and enterprise IT systems for complex, data-driven national security challenges for the intelligence community, homeland security and defense customers. The company’s capabilities are enhanced by its advanced software factories, providing the brainpower to deliver the optimum software solutions for its customer base. Across the U.S. Army the company performs complex software development projects, develops training simulators for Army vehicles, maintains and conducts soldier training for field C2 equipment, and the company is installing its cloud-based Army base access control system throughout the U.S. Intelligence Analysis, Mission Support and Logistics Services – The company delivers high-end services to the U.S. Intelligence Community, DoD and allied governments. Operating throughout the world the company provides intelligence analysis, operational support, logistics operations, security, linguistics and training. In addition, the company delivers tailored IT services and solutions to its customers across the globe. The company offers product support and lifecycle sustainment services to the company’s U.S. Army, Navy and Air Force customers, including planning and managing the cost and performance across the product’s lifecycle. The company offers reverse engineering, classified manufacturing and design, and threat exploitation services to a wide breadth of the U.S. Intelligence Community customers. Weapons Systems – The company offers tactical weapons components and systems for surface-launched missiles, cruise missiles, air-to-air, air-to-ground and anti-ship missiles and guided munitions and rockets across the DoD. The company also delivers offensive boost-glide, launcher and air-breathing systems, thermal protection systems and hypersonic defense systems. The company has capabilities in integrated force protection in both directed energy (such as high-energy lasers and microwave systems) and area defense (such as counter-unmanned aviation systems, radar systems, sensors and kinetic weapon launchers). In addition, the company provides cyber-physical systems in the development of offensive and defensive cyber command and control, toolkits and exploits, as well as offensive cyber operations. The company also supports autonomous systems in the areas of unmanned aerial systems, surface ships, undersea vehicles and ground vehicles, as well as autonomy software and hardware for autonomous vehicles and platforms. The company’s unique autonomy algorithms provide decision support for the heavily-burdened warfighter and support coordinated man-autonomous machine operations. Space Systems and Solutions – The company provides integrated design, manufacturing, integration of human-rated and exploration spacecraft for NASA and commercial customers. The company has the capability to design and manufacture space systems and key launch vehicle subsystems, such as avionics/mission computing, guidance, navigation and control, boosters and structures. The company provides expertise in the design, manufacturing, and integration of satellite propulsion, structures, and space-based EO/IR, multi/hyperspectral, EW/SIGINT and communications payloads. Civil The company’s Civil business has been focused on modernizing infrastructure, systems and security for government and commercial customers both domestically and internationally. By applying leading science, innovative technologies and business acumen, the company’s talented employees help customers achieve their missions and take on the connected world with data-driven insights, improved efficiencies and technological advantages in the areas of digital modernization, energy infrastructure, integrated missions, transportation applications and security detection. Transportation Solutions – Leidos is a trusted systems developer, service provider and integrator serving Air Navigation Service Providers around the world, including the FAA. The company provides air traffic control systems that help manage the world's most complex airspace. The company delivers many of the FAA's key automation systems and services, including the En Route Automation Modernization (‘ERAM’), Advanced Technologies and Oceanic Procedures (‘ATOP’), Time Based Flow Management, Terminal Flight Data Manager, Enterprise-Information Display System, Geo-7 and Future Flight Services. Leidos received 10+ year extensions to the ERAM and ATOP contracts for continued delivery of the evolving National Airspace System needs. In addition, under the Mode S Beacon Replacement Systems contract, Leidos is supporting the replacement of the FAA's Mode S Beacon Systems, which are secondary surveillance radar capable of providing surveillance and specific aircraft information necessary to support Air Traffic Control automation in all traffic environments. The company also provides key air traffic control systems around the world, including New Zealand and South Korea. Security Enterprise Solutions (‘SES’) – Leidos is an industry leader of fully-integrated security detection solutions, making security screening and checkpoints safer for aviation, ports and borders, and critical infrastructure customers around the world. With more than 24,000 products deployed across over 120 countries, the SES business has the most widespread global footprint within the Civil Group portfolio. The company is a leader in aviation screening equipment, computed tomography carry-on baggage scanners, people scanners and explosive trace detectors, facilitating secure and efficient passenger movement in airports worldwide. The company also has screening technologies for checked baggage and cargo. Leidos is the leading supplier of mobile non-intrusive inspection systems to the U.S. Customs and Border Protection (‘CBP’). For CBP, and other global customers, the company helps to safeguard the flow of travel and trade through solutions that effectively detect and mitigate threats across all trade elements, including cargo, vehicles and people. Leidos is also transforming security detection beyond aviation and ports of entry to help government agencies and the private sector secure public venues and critical infrastructures. Digital Transformation – The company delivers secure, user-centric IT solutions in cloud computing, mobility, application modernization, DevOps, data center and network modernization, asset management, help desk operations and digital workplace enablement. The company helps its customers achieve their missions and business goals by delivering purpose-built solutions, cybersecurity as a standard, efficient project delivery and end-user satisfaction. The company accelerates enterprise transformation using customizable roadmaps and repeatable processes, enabling customers to effectively use their resources and advance their objectives. Using its cyber expertise, the company continually enhances its techniques and processes to build systems that operate resiliently in the face of evolving cyber threats. Leidos is modernizing enterprise IT in classified and unclassified environments, including programs with the FAA, NASA, Department of Justice, IRS, the U.S. MINT, Department of Commerce, FTC, and HUD. Climate, Energy and Environment – The company is trusted by government agencies and commercial customers with substantial environmental and sustainability driven-missions. The company’s reputation across climate science, environmental management and operations, nuclear security, power grid engineering, energy efficiency, infrastructure management, mission support and IT modernization provides the applicable expertise needed to transform operations while modernizing aging infrastructure and maintaining environmental stewardship. The company supports the critical missions of the Department of Energy (‘DoE’), National Nuclear Security Administration, National Science Foundation, utilities, energy investors and developers, energy efficiency administrators and commercial industrial customers. At the DoE Hanford site, the company provides site-wide infrastructure management and operation, including oversight of land and logistics, public works, information technology, fleet transportation, environmental sustainability, and compliance, first responder services and future project planning. At the National Energy Technology Laboratory, the company actively conducts and supports fundamental and applied research efforts, including providing product and logistical support comprising strategic business development, technology transfer and agreements and education and outreach support for the effective and efficient execution of research programs. In addition, the company help investor-owned utilities and industrial customers modernize power delivery systems for improved reliability, implement energy management strategies, support vehicle electrification, transform digital infrastructure and gain operational efficiencies to meet evolving energy needs and climate change goals. Health The company’s Health business has been focused on delivering effective and affordable solutions to federal and commercial customers that are responsible for the health and well-being of people worldwide, including service members and veterans. The company’s solutions enable customers to deliver on the health mission of providing high-quality care, and are accomplished through the integration of information technology, engineering, life sciences, health services, clinical insights and health policy. The capabilities the company provides predominantly fall in four major areas of activity: health information management services, managed health services, digital modernization and life sciences research and development. Health Information Management Services – Leidos employs holistic-systems thinking in fielding applied technology solutions across the entire continuum of healthcare. In the company’s work delivering a single, common electronic health record to both DoD and VA hospitals and treatment facilities worldwide, its responsibilities range from integrating software for the electronic healthcare record vendor and dental record vendors to integrating picture archiving and communications software and more. The company supports cybersecurity across all integrated systems. The company also provides enterprise IT solutions to the VA, National Institutes of Health (‘NIH’), DoD and other federal health customers to help operate mission critical infrastructure reliably and at a reasonable cost. Managed Health Services – The company deploys a national footprint of health clinics and health providers to support care delivery services, including medical disability and behavioral health examinations for the VA, as well as serving other independent medical exam markets. The company has developed unique capabilities in behavioral health management through many decades of experience with a special emphasis on substance abuse services and non-medical counseling. These capabilities can be expanded into other clinical adjacencies. The company’s managed health services activities leverage its IT and mission enablement capabilities, which underpin solutions the company offers to its customers across all of its served markets. Digital Modernization – The company manages the entire lifecycle of the IT journey for its customers. The company’s expertise includes IT strategic planning, outsourcing and management of large-scale data centers, agile software development and system transformation, cloud migration and application modernization, digitization and big data management and advanced analytics. The company’s customers include the Centers for Medicare & Medicaid Services, Food and Drug Administration, Social Security Administration, VA, Defense Health Agency (‘DHA’) and commercial customers. Leidos helps transform the company’s customers' technology environments in the support of their most critical missions, accomplished in a highly secure manner by leveraging the company’s cybersecurity domain expertise and its Leidos rapid application development software platform. Life Sciences Research & Development – The company provides life science research and development support to the NIH, Center for Disease Control, Army Medical Research community and commercial biotech companies. Most notably, on behalf of the U.S. government and the public trust, the company operates the Frederick National Laboratory for Cancer Research, where the company employs thousands of scientists, technicians, administrators and support staff. The company’s professionals operate a wide range of leading-edge research and development laboratories in the areas of genetics and genomics, proteins and proteomics, advanced biomedical computing and information technology, biopharmaceutical development and manufacturing, nanotechnology characterization and clinical trials management. From the biomedical sciences to implementing and optimizing electronic health records and enabling providers to perform care coordination and population health management, Leidos is pioneering the use of the depth and breadth of systems integration principles, processes and technologies to transform the health industry’s evolution towards better quality and more efficient and effective care. Divestitures On October 20, 2023, the company disposed of an immaterial business within its Defense Solutions reportable segment. Key Customers The majority of the company’s revenues are generated in the United States. The company’s consolidated revenues are largely attributable to prime contracts or to subcontracts with other contractors engaged in work for the U.S. government, with the remaining attributable to international customers, including the U.K. Ministry of Defence and Australian Ministry of Defence, and customers across a variety of commercial markets. Within the U.S. government, the company’s revenues are diversified across many agencies, including various intelligence agencies, the U.S. Army, Navy and Air Force, the U.S. Space Force, DHS, DISA, FAA, Transportation Security Administration, CBP, DHA, VA, Department of Health and Human Services, NASA, National Science Foundation, DoE, the Environmental Protection Agency and research agencies, such as Defense Advanced Research Projects Agency. Research and Development The company-funded research and development expense was $128 million for the year ended December 29, 2023. Seasonality The company tends to generate less revenue from its labor services during the fourth quarter (year ended December 2023) as a result of the holiday season. Regulation The company provides services and products to numerous U.S. government agencies and entities, including to the DoD, the U.S. Intelligence Community and the DHS. Some significant laws and regulations that affect the company include: The Federal Acquisition Regulation (‘FAR’) and supplements, including the DoD Federal Acquisition Regulation Supplement (‘DFARS’), which regulate the formation, administration and performance of the U.S. government contracts; The Truth in Negotiations Act, which requires certification and disclosure of cost and pricing data in connection with certain contract negotiations; The Procurement Integrity Act, which regulates access to competitor bid and proposal information and government source selection information and the company’s ability to provide compensation to certain former government officials; The Civil False Claims Act, which provides for substantial civil penalties for violations, including for submission of a false or fraudulent claim to the U.S. government for payment or approval; The False Statements Act, which imposes civil and criminal liability for making false statements to the U.S. government; and The U.S. government Cost Accounting Standards (‘CAS’), which imposes accounting requirements that govern the company’s right to reimbursement under certain cost-based U.S. government contracts. Data Privacy and Security Laws Some of the company’s operations and service offerings involve access to and use by the company of personal information and/or protected health information. These activities are regulated by extensive federal, state and international data privacy and security laws requiring organizations to, among other things, provide certain privacy protections and security safeguards for such information. For example, among others: The European Union's (‘EU’s’) General Data Protection Regulation (‘GDPR’), which imposes compliance obligations for companies that process personal data of EU data subjects, necessitating investment into ongoing data protection activities and documentation requirements, and creates the potential for significant fines for noncompliance; The United Kingdom’s (‘U.K.’s’) General Data Protection Regulation, (‘U.K. GDPR’),which creates similar compliance obligations for companies that process personal data of the U.K. data subjects as are imposed by the GDPR; The California Consumer Privacy Act, as amended by the California Privacy Rights Act (collectively, ‘CCPA’), which broadly defines personal information and provides expanded consumer privacy rights to natural persons residing in California, such as affording them the right to access and request deletion of their information and to opt out of certain sharing and sales of personal information; and The Health Insurance Portability and Accountability Act, as amended by the Health Information Technology for Economic and Clinical Health Act, which establishes privacy and security compliance obligations with respect to the processing of protected health information by covered entities and business associates, necessitating investment in technical and organizational compliance measures and creates the potential for substantial fines for noncompliance. Competition The company’s principal competitors include the following companies: Accenture Federal Systems, Amentum Services Inc., BAE Systems, Booz Allen Hamilton Inc., CACI International Inc., General Dynamics Corporation, IBM, Jacobs Engineering Group Inc., KBR Inc., L3Harris, Lockheed Martin Corporation, ManTech, Northrop Grumman Corporation, Peraton, Raytheon Technologies Corporation and SAIC. History The company was founded in 1969. It was formerly known as SAIC, Inc. and changed its name to Leidos Holdings, Inc. in 2013.