The company said revenue for fiscal 2023 increased $1.0 billion, or 7%, from fiscal 2022. It cited program wins, a net increase in volumes on certain programs and a net increase in revenues from business acquisitions as drivers of the increase. It said the completion of certain contracts partially offset the increase.

1. 01

   The company said revenue for fiscal 2023 increased $1.0 billion, or 7%, from fiscal 2022. It cited program wins, a net increase in volumes on certain programs and a net increase in revenues from business acquisitions as drivers of the increase. It said the completion of certain contracts partially offset the increase.

2. 02

   Leidos said operating income for fiscal 2023 was $621 million, down $467 million from the prior year, and its operating margin was 4.0% (7.6% in the prior year). The company attributed the decrease mainly to a net increase in impairment charges of $647 million, including impairment charges at the SES reporting unit.

3. 03

   The company said that in fiscal 2023, in the Q3, the SES reporting unit decided to adjust its product portfolio and exit certain country businesses. It said that in its interim quantitative assessment, the carrying value exceeded the estimated fair value, and it recognized a non-cash goodwill impairment charge of $596 million. It also recognized intangible asset impairment charges of $79 million.

4. 04

   The company said its effective tax rate was 48.4% in fiscal 2023 (21.8% in fiscal 2022), and that the impact of goodwill impairment charges, which are not tax deductible, was significant. It also said net cash provided by operating activities increased by $173 million, and that a higher tax payment of $260 million, mainly related to the TCJA provision, partially offset this increase.

Key figures

Fiscal year ended December 29, 2023

Revenue

$15.3B

Operating income

$621M

Net income

$199M

EPS

$1.44

Operating cash flow

$1.2B

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.