The SES reporting unit refined its portfolio and made strategic business decisions to exit certain product offerings and cease operations in certain countries. This resulted in a significant reduction in forecasted revenue and cash flows, leading to goodwill and intangible asset impairments.

Management emphasizes a high level of cost management focus to remain competitive, despite general competitive pressures and uncertainty in U.S. government spending. They continue to review the cost structure and undertake efficiency initiatives.

Sales to customers in international markets represented approximately 9% of total revenues for fiscal 2023. International business increases exposure to international regulatory, foreign currency exchange rate and geopolitical risks, impacting financial results.

The acquisition of Cobham Special Mission contributed $94 million to the increase in Defense Solutions revenues. This indicates successful integration and execution of M&A strategy.

Several new executive appointments were made, including a new Chief Executive Officer, Chief Growth Officer, and presidents for the Health and Civil Sector and National Security Sector. These changes suggest a strategic realignment and focus on key growth areas.

The company is routinely subject to governmental investigations and reviews and is taking steps to improve internal controls. This is a proactive approach to mitigate potential risks and improve compliance.

Approximately 87% of Leidos' revenue is derived from U.S. government contracts, making the company highly susceptible to changes in government spending, budgetary priorities, and delays in contract awards. These factors could adversely affect future revenues and growth prospects.

A majority of Leidos' business is awarded through a competitive bidding process, which involves substantial costs and managerial time. Competitor bid protests can result in significant expense, delay, contract modifications, or even contract loss.

Leidos is subject to complex and evolving laws and regulations regarding data privacy and security, and cybersecurity breaches could negatively impact business and financial results, impair the ability to provide services, and cause harm to reputation or competitive position.

Leidos competes with larger companies having greater name recognition and smaller, more specialized companies. This intense competition may result in fewer orders, reduced revenue and margins, and loss of market share.

Success depends on ability to invest in and develop services and products that address rapidly changing customer needs and technology. To remain competitive, the company must consistently provide superior service, technology, and performance to customers on a cost-effective basis.

Competitors may make acquisitions or establish teaming agreements, allowing them to offer more competitive and comprehensive solutions. This could accelerate technology adoption, increase resources, and expand product offerings more quickly than Leidos.

The global economy faces heightened inflationary pressure, impacting the cost of doing business in both supply and labor markets. This could result in reduced profits or even losses for fixed-priced contracts and longer-term multi-year contracts.

The industry is under general competitive pressures associated with U.S. government spending, requiring a high level of cost management focus to remain competitive. The company continues to review its cost structure and undertake efficiency initiatives.

The company reduced leased space by exiting and consolidating underutilized buildings as part of an ongoing facility rationalization effort. This aims to improve operational efficiency and reduce costs.

The company utilizes artificial intelligence, including generative AI, machine learning, and similar tools and technologies that collect, aggregate, analyze, or generate data or other materials or content. This could expose the company to liability.

The company's success depends on its ability to invest in and develop services and products that address rapidly changing customer needs and technology. The markets in which it operates are characterized by rapidly changing customer needs and technology.

The company's business segments, particularly Defense Solutions and Civil, emphasize digital modernization and transformative software capabilities. This indicates a strategic focus on technology and innovation.

The company used proceeds from senior notes and a term loan facility to repay existing debt and refinance. This demonstrates a focus on managing capital structure and reducing interest expense.

The company continues to pay dividends and repurchase shares, indicating a commitment to returning value to shareholders. However, the amount of share repurchases decreased in fiscal 2023.

Payments for property, equipment and software increased, indicating a higher level of investment in capital assets.

There is increased scrutiny from governmental organizations, customers, and employees on companies' environmental, social, and governance practices and disclosures. This may impose additional costs and expose the company to new or additional risks.

The company places a strong emphasis on the health and safety of its employees, with the physical and mental well-being of employees being a top priority. This is reflected in the provision of well-being and mental health benefits.

The company's operations are subject to various environmental protection and health and safety laws and regulations. Compliance with these laws requires significant operating and capital costs.

Ongoing instability and current conflicts in global markets, including in Eastern Europe, the Middle East, and Asia, have created and may continue to create economic and political uncertainties and impacts that could have a material adverse effect on the business.

The global economy faces heightened inflationary pressure, impacting the cost of doing business in both supply and labor markets. This could result in reduced profits or even losses for fixed-priced contracts.

The funding of U.S. government programs is subject to an annual congressional budget authorization and appropriations process. Delays in this process or government shutdowns could delay procurement and adversely affect future revenues.