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LDOSLeidos

Industrials · IT Services · NYSE
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The 10-K against last year's

118 changes: 37 added, 14 removed, 65 reworded, 2 quiet changes

10-K Feb 17, 2026 vs Feb 11, 2025
Risk FactorsRedline ↓
15.1%
of the text changed · 20,043 words now
33.4%
of the text changed · 5,595 words now
Legal ProceedingsRedline ↓
21.2%
of the text changed · 401 words now
Accounting PoliciesRedline ↓
7.9%
of the text changed · 5,547 words now

10-K 0001336920-26-000030 (2026-02-17) vs 10-K 0001336920-25-000006 (2025-02-11)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 332 words changed in this paragraph; it is 33% similar to last year's version.
As a government contractor and a provider of information technology services operating in multiple regulated industries and geographies, we and our service providers, suppliers and subcontractors collect, store, transmit, and otherwise process personal, confidential, proprietary, and sensitive information, including protected health information, personnel information, personal information, classified information, controlled unclassified information, intellectual property and financial information, concerning our business, employees, and customers. Therefore, we are continuously exposed to unauthorized attempts to compromise access, release or otherwise compromise such information through cyber-attacks and other information security threats, including, among other things, physical break-ins, theft, denial-of-service attacks, worms, computer viruses, software bugs, malicious or destructive code, social engineering, phishing attacks and impersonating authorized users, credential stuffing, account takeovers, insider threats, malfeasance or improper access by employees or service providers, human error, fraud, use of AI, “bots” or other automation software, or other similar disruptions. We are also exposed to hackers who have requested “ransom” in exchange for not disclosing information or restoring access to information or systems. These techniques may be perpetrated by internal bad actors, such as employees or contractors, or by third parties (including traditional computer hackers, persons involved with well-funded organized crime or state-sponsored actors). Any electronic or physical break-in or other security breach or compromise of our information technology systems and networks or facilities, or those of our service providers, suppliers, joint ventures or subcontractors, may jeopardize the confidentiality, integrity or availability of information, including personal, confidential, proprietary or sensitive information, stored or transmitted through these systems and networks or stored in those facilities. This could lead to disruptions in mission-critical systems, unauthorized access to or release of personal, confidential, proprietary, sensitive or otherwise protected information and corruption of data or systems. We could also be subject to operational downtimes, delays and other detrimental impacts on our operations or ability to provide products and services to our customers. We are also increasingly subject to customer-driven cybersecurity certification requirements, including but not limited to CMMC, which are expected to be necessary to win future contracts. Security incidents could also result in liability, trigger other obligations under such contracts, or increase the difficulty of winning future contracts. Many statutory requirements, both in the U.S. and abroad, also include different obligations for companies to provide notice of information security incidents involving certain types of information (including obligations to notify affected individuals and regulators in the event of cybersecurity breaches involving certain personal information), which could result from breaches of our service providers, our suppliers or subcontractors.

Source: Item 1A, 10-K 0001336920-26-000030 vs Item 1A, 10-K 0001336920-25-000006

MD&A 193 words changed in this paragraph; it is 35% similar to last year's version.
On FFP For contracts requiring which involve complex deliverables, such as system integration and cost-plus integration, we usually recognize revenue over time as the work is completed. For contracts with an FFP component or variable consideration, revenue is generally recognized over time fees, we measure progress using a method that measures the extent of progress towards completion of a performance obligation, principally using a cost-input method (referred to as the cost-to-cost method). Under the cost-to-cost an input method, whereby revenue is recognized based on the proportion percentage of total costs incurred to estimated date compared to total costs-at-completion (“EAC”), which require us to use estimates costs we anticipate by the end of the contract. Commonly referred to as the “cost-to-cost” method. To do this, we must estimate both the total revenue and cost associated with the total costs needed to design, manufacture build, and delivery of deliver our offerings products and services. A performance obligation’s EAC includes These cost estimates include all direct costs costs, such as materials, labor, subcontract costs, subcontractors, overhead and a ratable portion of general and administrative costs. expenses. If we determine that the estimated total expected cost of completing a performance obligation whose associated contract will be more than the total revenue is recognized using the cost-to-cost method exceeds the estimated transaction price, we expect to receive, we record the entire amount of the expected loss is recognized in operations in the period the loss is known. when identified.

Source: Item 7, 10-K 0001336920-26-000030 vs Item 7, 10-K 0001336920-25-000006

Accounting Policies 93 words changed in this paragraph; it is 51% similar to last year's version.
Our cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. Outstanding Effective fiscal 2025, we changed our policy to exclude outstanding payments are included within from “Cash and cash equivalents” and “Accounts payable and accrued liabilities” correspondingly on the consolidated balance sheets. At To reflect the change in accounting policy, we recast "Cash and cash equivalents" and "Accounts payable and accrued liabilities" on the consolidated balance sheet as of January 3, 2025, reducing both balances by $94 million from the previously reported amounts. The recast of the consolidated statement of cash flows for the year ended January 3, 2025, and December 29, 2023, $94 resulted in an increase of $43 million and $136 $22 million, respectively, of outstanding payments were included within “Cash and to net cash equivalents.” provided by operations.

Source: Item 8, Note 3 – Summary of Significant Accounting Policies, 10-K 0001336920-26-000030 vs Item 8, Note 3 – Summary of Significant Accounting Policies, 10-K 0001336920-25-000006

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of LDOS's Risk Factors and MD&A, 10-K 2026-02-17 against 10-K 2025-02-11. Each links to the text at sec.gov.

RemovedRisk Factors
exceed requirements, to the extent we do not, we will be unable to bid on such contract awards, which could adversely impact our revenue and our profitability.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
uachieving annual revenue growth through internal collaboration and better leveraging of key differentiators across our company and the deployment of resources and investments into profitable growth markets;

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
ucontinued improvement in our back-office infrastructure and related business processes for greater effectiveness and efficiency across all business functions; and

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
On December 21, 2024, the U.S. federal government avoided a shutdown by passing into law a continuing resolution that provides government funding through March 14, 2025. The continuing resolution gives lawmakers additional time to consider the 12 appropriations bills for government fiscal year 2025. Failure to pass the appropriations bills or another continuing resolution by March 14, 2025, will result in a partial or complete federal government shutdown.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
Our effective tax rate was 23.7%, 48.4% and 21.8% in fiscal 2024, 2023 and 2022, respectively. The effective tax rate for fiscal 2024 was favorably impacted primarily by federal research tax credits and lower state income taxes, partially offset by an increase in unrecognized tax benefits. The effective tax rate for fiscal 2023 was unfavorably impacted primarily by non tax deductible goodwill impairments. The effective tax rate for fiscal 2022 was favorably impacted primarily by federal research tax credits and excess tax benefits related to employee stock-based payment transactions.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
In December 2021, the Organization for Economic Cooperation and Development enacted model rules for a new 15% global minimum tax framework (“Pillar Two”). Many governments around the world have enacted or are in the process of enacting Pillar Two legislation. The Pillar Two legislation became effective for certain jurisdictions beginning in fiscal 2024. We will continue to evaluate the impact of the rules as additional legislation gets enacted; however, there is not a material impact from jurisdictions where Pillar Two rules are currently in effect.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts. We segregate our backlog into two categories as follows:

Read it in 10-K 2025-02-11 at sec.gov ↗

Show the other 6
RemovedMD&A
uNegotiated Unfunded Backlog. Negotiated unfunded backlog represents estimated amounts of revenue to be earned in the future from contracts for which funding has not been appropriated and unexercised priced contract options. Negotiated unfunded backlog does not include unexercised option periods and future potential task orders expected to be awarded under IDIQ, GSA Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
Year Ended January 3, December 29, December 30, 2025 2023 2022 Cost-reimbursement and fixed-price-incentive-fee 44% 48% 50% Firm-fixed-price 43% 39% 38% Time-and-materials and fixed-price-level-of-effort 13% 13% 12% Total 100% 100% 100%

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
As of January 3, 2025, borrowings under our Credit Agreement were based on a Term Secured Overnight Financing Rate (“SOFR”) with a 0.10% Term SOFR adjustment and an applicable margin range from 1.00% to 1.50%. At January 3, 2025, the applicable margin for SOFR-denominated borrowings was 1.25%.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
On FFP contracts requiring system integration and cost-plus contracts with variable consideration, revenue is generally recognized over time using a method that measures the extent of progress towards completion of a performance obligation, principally using a cost-input method (referred to as the cost-to-cost method). Under the cost-to-cost method, revenue is recognized based on the proportion of total costs incurred to estimated total costs-at-completion (“EAC”), which require us to use estimates of the revenue and cost associated with the design, manufacture and delivery of our offerings and services. A performance obligation’s EAC includes all direct costs such as materials, labor, subcontract costs, overhead and a ratable portion of general and administrative costs. If the estimated cost of a performance obligation whose associated revenue is recognized using the cost-to-cost method exceeds the estimated transaction price, the entire amount of the loss is recognized in operations in the period the loss is known.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
Goodwill represents the excess of the fair value of consideration transferred, plus the fair value of any non-controlling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but instead is tested annually, at the beginning of the fourth quarter, for impairment at the reporting unit level and may be tested more frequently if events or circumstances indicate that the carrying value may not be recoverable. As of January 3, 2025, and December 29, 2023, goodwill represented 46% and 48% of our total assets, respectively.

Read it in 10-K 2025-02-11 at sec.gov ↗

RemovedMD&A
Operations of the Security Enterprise Solutions (“SES”) reporting unit rely heavily on the sales and servicing of security and detection products, which prior to fiscal 2024, have been negatively impacted due to delays in airline travel infrastructure projects as customer budgets recover from the pandemic.

Read it in 10-K 2025-02-11 at sec.gov ↗

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