Net bookings for the quarter were $8.1 billion, exceeding the $4.19 billion in revenue. This resulted in a total backlog of $40.6 billion, indicating strong future revenue potential.

Leidos realigned its business into four reportable segments: National Security & Digital, Health & Civil, Commercial & International, and Defense Systems. This restructuring aims to better align operations with customer needs and defined capability sets.

Sales to international customers represented approximately 8% of total revenues for both the three and nine months ended September 27, 2024, consistent with the prior year. This stable international presence provides diversification but also exposes Leidos to international risks.

The effective tax rate increased to 23.0% compared to (2.1)% in the prior year. This increase is primarily due to the tax impacts from non-deductible goodwill impairments in the prior year, indicating improved financial management and strategic decision-making.

The increase in operating income for the three and nine months ended September 27, 2024, as compared to the three and nine months ended September 29, 2023, was primarily attributable to contract efficiencies, a net increase in volumes on certain contracts and program wins, partially offset by the completion of certain contracts.

The company is cooperating with the Department of Justice and the Securities and Exchange Commission regarding potential FCPA violations. While the outcome is uncertain, these ongoing investigations could result in significant penalties and reputational damage.

Approximately 87% of total revenues are derived from contracts with the U.S. government, making Leidos susceptible to changes in government spending and budget priorities. The continuing resolution passed by Congress provides funding only through December 20, 2024, creating potential for future disruptions.

International business increases exposure to international markets and the associated international regulatory and geopolitical risks. Changes in international trade policies, including higher tariffs on imported goods and materials, may increase the procurement cost of certain IT hardware used both on our contracts and internally.

Leidos is involved in various claims, lawsuits, investigations, and reviews, including potential FCPA violations and antitrust inquiries. These matters could have a material adverse effect on the company's business, financial position, results of operations, or cash flows.

Net bookings of $8.1 billion for the quarter demonstrate Leidos' ability to win new contracts and maintain a strong competitive position in its key markets. This is further supported by a total backlog of $40.6 billion.

The performance of individual segments reflects the competitive dynamics within those markets. For example, the Health & Civil segment experienced significant revenue growth, while the Commercial & International segment faced challenges.

The realignment of the business into four reportable segments is intended to focus on specific, defined capability sets, which could enhance Leidos' competitiveness by allowing it to better address customer needs and market opportunities.

The increase in operating income for the three and nine months ended September 27, 2024, as compared to the three and nine months ended September 29, 2023, was primarily attributable to contract efficiencies, a net increase in volumes on certain contracts and program wins, partially offset by the completion of certain contracts.

The increase in operating loss for the Corporate segment was primarily attributable to increased general and administrative expenses and legal fees, indicating potential areas for improved operational efficiency.

Net cash used in investing activities decreased $29 million and $79 million during the three and nine months ended September 27, 2024, respectively, when compared to the prior year. The decreases were primarily due to lower capital expenditures of $27 million and $66 million for the three and nine months ended September 27, 2024, respectively.

The National Security & Digital segment provides technology-enabled services and mission software capabilities, indicating a focus on innovation and technology as key drivers of growth in this area.

The Health & Civil segment helps customers achieve their missions and take on the connected world with data-driven insights, improved efficiencies and technological advantages, highlighting the importance of technology in this segment.

The Defense Systems segment develops and produces advanced space, aerial, surface, and sub-surface manned and un-manned defense systems, showcasing a commitment to technological innovation in defense solutions.

Leidos repurchased $200 million and $450 million of its common stock during the three and nine months ended September 27, 2024, respectively, demonstrating a commitment to returning capital to shareholders.

The company paid dividends of $51 million and $155 million during the three and nine months ended September 27, 2024, respectively, indicating a consistent capital allocation strategy.

The company made principal payments on its debt, excluding commercial paper, of $5 million and $14 million during the three and nine months ended September 27, 2024, respectively, reflecting ongoing efforts to manage its capital structure.

The 10-Q filing does not explicitly mention any specific environmental, social, or governance (ESG) initiatives. This suggests that ESG factors may not be a primary focus or are not being prominently disclosed in this report.

Approximately 87% of total revenues are derived from contracts with the U.S. government, highlighting the company's reliance on this market and its sensitivity to changes in government spending policies.

The continuing resolution passed by Congress provides government funding only through December 20, 2024, creating a potential risk of a government shutdown if further appropriations are not approved.

Changes in international trade policies, including higher tariffs on imported goods and materials, may increase the procurement cost of certain IT hardware used both on our contracts and internally.