Science Applications International CorpSAIC

Science Applications International Corp Goodwill & Intangibles Disclosure

10-KFiled Mar 16, 20262 min read
Note 6—Goodwill and Intangible Assets:
Goodwill
The following table presents the carrying value of goodwill by reportable segment:
January 30,
2026		January 31,
2025
(in millions)
Defense and Intelligence$2,094 $2,001 
Civilian850 850 
Total$2,944 $2,851 
During fiscal 2026, goodwill increased by $93 million in the Defense and Intelligence reportable segment due to the acquisition of SilverEdge (see Note 4—Acquisitions and Divestitures for additional information).
As a result of the internal reorganization on February 3, 2024, the Company reallocated its goodwill to its five new goodwill reporting units. The Company performed a goodwill impairment test immediately before and after the reorganization, both of which resulted in no impairment. For the goodwill impairment test immediately after the reorganization, the Company performed a quantitative assessment of its goodwill as of February 3, 2024 for its five new goodwill reporting units. The Company estimated the fair value of each reporting unit using a 50:50 weighting of fair values derived from an income approach and market approach.
Under the income approach, the Company estimated the fair value of its reporting units using a multi-year discounted cash flow model involving assumptions about projected future revenue growth, operating margins, income tax rates, capital expenditures, discount rate, and terminal value. Under the market approach, the Company estimated the fair value of its reporting units based on multiples of earnings derived from observable market data of comparable public companies.
During the fourth quarter of fiscal 2026, the Company completed its annual goodwill impairment testing using a qualitative assessment and determined that it was more likely than not that an impairment did not exist and that a quantitative analysis was not necessary.
Intangible Assets
Intangible assets, all of which were finite-lived, consisted of the following:
January 30, 2026January 31, 2025
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in millions)
Customer relationships$1,551 $(804)$747 $1,462 $(688)$774 
Developed technology19 (6)13 10 (5)5 
Backlog
2 (1)1 — — — 
Trade name— — — 1 (1)— 
Total intangible assets$1,572 $(811)$761 $1,473 $(694)$779 
During fiscal 2026, the gross carrying value of intangible assets increased by $99 million primarily due to the acquisition of SilverEdge (see Note 4—Acquisitions for additional information).
Amortization expense related to intangible assets was $119 million for fiscal 2026 and $115 million for fiscal 2025 and 2024. There were no impairments of intangible assets during the periods presented.
As of January 30, 2026, the estimated future annual amortization expense related to intangible assets is as follows:
Fiscal Year(in millions)
2027$126 
2028108 
2029108 
2030105 
203198 
Thereafter216 
Total$761 
Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments and other factors.

Historical Timeline

Fiscal YearFiled
2026Mar 16, 2026Showing above
2025Mar 17, 2025
2024Mar 20, 2024
2023Apr 3, 2023
2022Mar 28, 2022
2021Mar 26, 2021
2020Mar 27, 2020
2019Mar 29, 2019
2018Mar 29, 2018
2017Mar 30, 2017
2016Mar 29, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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