SCIENCE APPLICATIONS INTERNATIONAL CORP, 10-K filed on 3/26/2021
Annual Report
v3.21.1
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Jan. 29, 2021
Mar. 05, 2021
Jul. 31, 2020
Document And Entity Information [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 29, 2021    
Document Transition Report false    
Entity File Number 001-35832    
Entity Registrant Name Science ApplicationsInternational Corporation    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 46-1932921    
Entity Address, Address Description 12010 Sunset Hills Road    
Entity Address, City or Town Reston    
Entity Address, State or Province VA    
Entity Address, Postal Zip Code 20190    
City Area Code 703    
Local Phone Number 676-4300    
Title of 12(b) Security Science Applications International CorporationCommon Stock, Par Value $.0001 Per Share    
Trading Symbol SAIC    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 4.5
Entity Common Stock, Shares Outstanding (in shares)   58,066,285  
Documents Incorporated by Reference [Text Block] Portions of Science Applications International Corporation’s Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated by reference in Part III of this report.    
Entity Central Index Key 0001571123    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --01-29    
ICFR Auditor Attestation Flag true    
v3.21.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Statement of Comprehensive Income [Abstract]      
Revenues $ 7,056 $ 6,379 $ 4,659
Cost of revenues 6,264 5,673 4,195
Selling, general and administrative expenses 352 288 158
Acquisition and integration costs 54 48 86
Other operating income (4) 0 0
Operating income 390 370 220
Interest expense 122 90 53
Other (income) expense, net (3) (6) (3)
Income before income taxes 271 286 170
Provision for income taxes (60) (57) (33)
Net income 211 229 137
Net income attributable to non-controlling interest 2 3 0
Net income attributable to common stockholders $ 209 $ 226 $ 137
Earnings per share:      
Basic (in dollars per share) $ 3.60 $ 3.87 $ 3.16
Diluted (in dollars per share) $ 3.56 $ 3.83 $ 3.11
v3.21.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Statement of Comprehensive Income [Abstract]      
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 211 $ 229 $ 137
Other comprehensive (loss) income, net of tax:      
Net unrealized loss on derivative instruments (19) (53) (18)
Defined benefit obligation adjustment 2 (5) 0
Total other comprehensive (loss) income, net of tax (17) (58) (18)
Comprehensive income 194 171 119
Comprehensive income attributable to non-controlling interest (2) (3) 0
Comprehensive income attributable to common stockholders $ 192 $ 168 $ 119
v3.21.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Current assets:    
Cash and cash equivalents $ 171 $ 188
Receivables, net 962 1,099
Inventories, net 78 84
Prepaid expenses 56 40
Other current assets 22 19
Total current assets 1,289 1,430
Goodwill 2,787 2,139
Intangible assets, net 1,138 711
Property, plant, and equipment, net 108 91
Operating lease right of use assets 236 190
Other assets 165 150
Total assets 5,723 4,711
Current liabilities:    
Accounts payable 517 527
Accrued payroll and other employee benefits 196 126
Accrued vacation 150 118
Other accrued liabilities 344 287
Long-term debt, current portion 68 70
Total current liabilities 1,275 1,128
Long-term debt, net of current portion 2,447 1,851
Operating lease liabilities 205 172
Other long-term liabilities 244 133
Commitments and contingencies (Note 17)
Equity:    
Common stock, $0.0001 par value, 1 billion shares authorized, 58 million shares issued and outstanding as of January 29, 2021 and January 31, 2020 0 0
Additional paid-in capital 1,004 983
Retained earnings 627 506
Accumulated other comprehensive loss (89) (72)
Total common stockholders' equity 1,542 1,417
Non-controlling interest 10 10
Total stockholders' equity 1,552 1,427
Total liabilities and stockholders' equity $ 5,723 $ 4,711
v3.21.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jan. 29, 2021
Jan. 31, 2020
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 58,000,000 58,000,000
Common stock, shares outstanding (in shares) 58,000,000 58,000,000
v3.21.1
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Shares of common stock
Additional paid-in capital
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive income (loss)
Non-Controlling Interest
Balance, (in shares) at Feb. 02, 2018     43,000,000          
Balance, beginning of period at Feb. 02, 2018 $ 327 $ 3   $ 0 $ 323 $ 3 $ 4 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 137       137      
Net Income (Loss) Attributable to Parent 137              
Net income attributable to non-controlling interest 0              
Issuances of stock, (in shares)     1,000,000          
Stock Issued During Period, Value, New Issues 7     7        
Other Comprehensive Income (Loss), Net of Tax (18)           (18)  
Cash dividends (54)       (54)      
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 43     52 (9)      
Repurchases of stock, (in shares)     (1,000,000)          
Stock Repurchased and Retired During Period, Value (44)     (11) (33)      
Stock issued for the Engility acquisition (in shares)     17,000,000          
Stock Issued During Period, Value, Acquisitions 1,084     1,084        
Noncontrolling Interest, Increase from Business Combination 13             13
(Distributions to) contributions from non-controlling interest 1             1
Balance, (in shares) at Feb. 01, 2019     60,000,000          
Balance, end of period at Feb. 01, 2019 1,499     1,132 367   (14) 14
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 229       226     3
Net Income (Loss) Attributable to Parent 226              
Net income attributable to non-controlling interest 3              
Stock Issued During Period, Value, New Issues 12     12        
Other Comprehensive Income (Loss), Net of Tax (58)           (58)  
Cash dividends (87)       (87)      
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 21     21        
Repurchases of stock, (in shares)     (2,000,000)          
Stock Repurchased and Retired During Period, Value (182)     (182)        
Distributions to non-controlling interest $ (7)             (7)
Balance, (in shares) at Jan. 31, 2020 58,000,000   58,000,000          
Balance, end of period at Jan. 31, 2020 $ 1,427     983 506   (72) 10
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 211              
Net Income (Loss) Attributable to Parent 209       209      
Net income attributable to non-controlling interest 2             2
Stock Issued During Period, Value, New Issues 14     14        
Other Comprehensive Income (Loss), Net of Tax (17)           (17)  
Cash dividends (88)       (88)      
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 30     30        
Stock Repurchased and Retired During Period, Value (23)     (23)        
Distributions to non-controlling interest $ (2)             (2)
Balance, (in shares) at Jan. 29, 2021 58,000,000   58,000,000          
Balance, end of period at Jan. 29, 2021 $ 1,552     $ 1,004 $ 627   $ (89) $ 10
v3.21.1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Statement of Stockholders' Equity [Abstract]      
Cash dividends paid per share (in dollars per share) $ 1.48 $ 1.48 $ 1.24
v3.21.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Statement of Cash Flows [Abstract]      
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 211 $ 229 $ 137
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 179 131 47
Amortization of Off Market Customer Contracts (15) 0 0
Amortization of Debt Issuance Costs 21 7 2
Deferred income taxes 12 44 19
Stock-based compensation expense 42 37 45
Loss on Disposition of Business 10 0 0
Impairment of right of use assets 2 5 0
Loss on extinguishment of debt 0 0 4
Provisions for inventory and deferred contract costs 0 0 36
Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of the acquisitions:      
Receivables 221 (50) (26)
Inventory, prepaid expenses, and other current assets 8 (10) (26)
Other assets (14) (34) (12)
Accounts payable and accrued liabilities (76) 62 (65)
Accrued payroll and employee benefits 95 3 22
Operating lease assets and liabilities, net (5) (4) 0
Other long-term liabilities 64 38 1
Net cash provided by operating activities 755 458 184
Cash flows from investing activities:      
Expenditures for property, plant, and equipment (46) (21) (28)
Payments to Acquire Marketable Securities (6) (24) 0
Proceeds from Sale and Maturity of Marketable Securities 9 3 0
Cash paid for acquisitions, net of cash acquired (1,202) 0 (1,001)
Proceeds from Divestiture of Businesses 17 0 0
Other (3) (5) 1
Net cash used in investing activities (1,231) (47) (1,028)
Cash flows from financing activities:      
Dividend payments to stockholders (87) (87) (53)
Principal payments on borrowings (399) (274) (779)
Issuances of stock 13 10 7
Stock repurchased and retired or withheld for taxes on equity awards (34) (197) (69)
Proceeds from borrowings 1,000 100 1,859
Debt issuance costs (27) 0 (26)
Equity issuance costs 0 0 (2)
(Distributions to) contributions from non-controlling interest (2) (7) 1
Net cash provided by (used in) financing activities 464 (455) 938
Net (decrease) increase in cash, cash equivalents and restricted cash (12) (44) 94
Cash, cash equivalents and restricted cash at beginning of period 202 246 152
Cash, cash equivalents and restricted cash at end of period 190 202 246
Supplementary cash flow disclosure:      
Cash paid for interest 96 86 44
Cash paid for income taxes 39 32 24
Non-cash investing and financing activities:      
Increase (decrease) in accrued plan share repurchases 1 (1) 0
(Decrease) increase in accrued plant, property, and equipment (1) 3 (3)
Fair value of equity consideration paid for acquisition $ 0 $ 0 $ 1,108
v3.21.1
Business Overview and Summary of Significant Accounting Policies
 12 Months Ended
Jan. 29, 2021
Accounting Policies [Abstract]  
Business Overview and Summary of Significant Accounting Policies Business Overview and Summary of Significant Accounting Policies:
Overview
Description of Business. Science Applications International Corporation (collectively, with its consolidated subsidiaries, the “Company”) is a leading provider of technical, engineering and enterprise information technology (IT) services primarily to the U.S. government. The Company provides engineering and integration services for large, complex projects and offers a broad range of services with a targeted emphasis on higher-end, differentiated technology services. The Company is organized as a matrix comprised of three customer facing operating segments supported by a strategy, growth and innovation organization. Each of the Company’s three customer facing operating segments is focused on providing the Company’s comprehensive technical, engineering and enterprise IT service offerings to one or more agencies of the U.S federal government. The Company's operating segments are aggregated into one reportable segment for financial reporting purposes, see Note 16.
Acquisitions. On March 13, 2020, the Company completed the acquisition of Unisys Federal, a former operating unit of Unisys Corporation, which enhances our capabilities in government priority areas, expands our portfolio of intellectual property and technology-driven offerings, and increases our access to current and new customers. On January 14, 2019, the Company completed the acquisition of Engility Holdings, Inc. (collectively with its consolidated subsidiaries, "Engility"), which provides increased customer and market access, as well as increased scale in strategic business areas of national interest, such as defense, federal civilian agencies, intelligence and space.  
Principles of Consolidation and Basis of Presentation
References to “financial statements” refer to the consolidated financial statements of the Company, which include the statements of income and comprehensive income, balance sheets, statements of equity and statements of cash flows. These financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP). All intercompany transactions and account balances within the Company have been eliminated. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation.
Non-controlling Interest. The Company holds a 50.1% majority interest in Forfeiture Support Associates J.V. (FSA). The results of operations of FSA are included in the Company's consolidated statements of income and comprehensive income. The non-controlling interest reported on the consolidated balance sheets represents the portion of FSA’s equity that is attributable to the non-controlling interest.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Significant estimates inherent in the preparation of the financial statements may include, but are not limited to estimated profitability of long-term contracts, income taxes, fair value measurements, fair value of goodwill and other intangible assets, pension and defined benefit plan obligations, and contingencies. Estimates have been prepared by management on the basis of the most current and best available information at the time of estimation and actual results could differ from those estimates.
Reporting Periods
The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks. Fiscal 2019 began on February 3, 2018 and ended on February 1, 2019, fiscal 2020 began on February 2, 2019 and ended on January 31, 2020, and fiscal 2021 began on February 1, 2020 and ended on January 29, 2021.
Stock-based Compensation
The Company issues stock-based awards as compensation to employees and directors. Stock-based awards include stock options, vesting stock awards and performance share awards. These awards are accounted for as equity awards. The Company recognizes stock-based compensation expense net of estimated forfeitures on a straight-line basis over the underlying award’s requisite service period, as measured using the award’s grant date fair value. For performance share awards, the Company reassesses the probability of achieving the performance conditions at each reporting period end and adjusts compensation expense based on the number of shares the Company expects to ultimately issue.
Income Taxes
The Company accounts for income taxes under the asset and liability method of accounting, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted. The provision for federal, state, local and foreign income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes. Recording the provision for income taxes requires management to make significant judgments and estimates for matters for which the ultimate resolution may not become known until the final resolution of an examination by taxing authorities or the statute of limitations lapses. Additionally, recording liabilities for uncertainty in income taxes involves significant judgment in evaluating the Company’s tax positions and developing the best estimate of the taxes ultimately expected to be paid. Tax penalties and interest are included in income tax expense.
The Company records net deferred tax assets to the extent these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. If it is determined that the Company would be able to realize the deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize the deferred income tax assets in the future as currently recorded, an adjustment would be made to the valuation allowance, which would decrease or increase the provision for income taxes.
The Company has also recognized liabilities for uncertainty in income taxes when it is more likely than not that a tax position will not be sustained on examination and settlement with various taxing authorities. Liabilities for uncertainty in income taxes are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Deferred tax assets and liabilities are netted by taxable jurisdiction and classified as noncurrent on the consolidated balance sheets.
Costs Allocated to Contracts
The Company classifies indirect costs as overhead (included in cost of revenues) or general and administrative expenses in the same manner as such costs are defined in the Company’s Disclosure Statements under U.S. government Cost Accounting Standards (CAS).
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents are comprised of cash in banks and highly liquid instruments, which primarily consist of bank deposits and investments in institutional money market funds. The Company includes outstanding payments within cash and cash equivalents and accounts payable on the consolidated balance sheets and as of January 29, 2021 and January 31, 2020 these amounts were $25 million and $54 million, respectively. The Company does not invest in high yield or high risk securities. The cash in bank accounts at times may exceed federally insured limits.
Restricted cash consists of cash on deposit in rabbi trusts that are contractually restricted from use in operations, but are subject to future claims of creditors. Restricted cash will be used primarily to fund future payment obligations related to deferred compensation plans and our voluntary disability insurance plan in California. The following table
provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets for the periods presented:
 January 29, 2021January 31, 2020
 (in millions)
Cash and cash equivalents$171 $188 
Restricted cash included in other current assets5 4 
Restricted cash included in other assets14 10 
Cash, cash equivalents and restricted cash$190 $202 
Receivables
Receivables include billed and billable receivables, and unbilled receivables. The Company’s receivables are primarily due from the U.S. government, or from prime contractors on which we are subcontractors and the end customer is the U.S. government, and are generally considered collectable from the perspective of the customer’s ability to pay. The Company does not have a material credit risk exposure.
Unbilled receivables, substantially all of which are expected to be billed and collected within one year, are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of a specified event, other than the passage of time. Legal title to the related accumulated costs of contracts in progress generally vests with the U.S. government on the Company’s receipt of progress payments. Progress payments received of $28 million and $33 million offset unbilled receivables as of January 29, 2021 and January 31, 2020, respectively. Contract retentions are billed when contract conditions have been met and may relate to uncompleted indirect cost negotiations with the U.S. government. Based on historical experience, the majority of retention balances are expected to be collected beyond one year. Retention is presented in other assets on the consolidated balance sheets, see Note 3. Write-offs of retention balances have not been significant.
Receivable balances are written-off in the period during which management determines they are uncollectable, and, at that time, such balances are removed from billed receivables and, if previously reserved, from the allowance.
Inventory
Inventory is substantially comprised of finished goods inventory purchased for resale to customers, such as tires and lubricants, and is valued at the lower of cost or net realizable value, generally using the average method. The Company evaluates current inventory against historical and planned usage to estimate the appropriate provision for obsolete inventory.
The Company recognized a $26 million provision for inventory within cost of revenues during fiscal 2019 related to firm purchase commitments on a firm-fixed price program.
Business Combinations
The Company records all tangible and intangible assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, which is determined using a cost, market or income approach. The excess amount of the aggregated purchase consideration paid over the fair value of the net of assets acquired and liabilities assumed is recorded as goodwill. Acquisition date fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as measured on the acquisition date.
The valuations are based on information that existed as of the acquisition date. During the measurement period that shall not exceed one year from the acquisition date, the Company may adjust provisional amounts recorded for assets acquired and liabilities assumed to reflect new information that the Company has subsequently obtained regarding facts and circumstances that existed as of the acquisition date.
Acquisition and Integration Costs
Acquisition-related costs that are not part of the purchase price consideration are generally expensed as incurred, except for certain costs that are deferred in connection with the issuance of debt. These costs typically include transaction-related costs, such as finder’s fees, legal, accounting and other professional costs. Integration-related costs typically include strategic consulting services, employee related costs, such as severance and accelerated vesting of assumed stock awards, costs to integrate information technology infrastructure, enterprise planning systems, processes, and other non-recurring integration-related costs. Acquisition and integration costs are presented together as acquisition and integration costs on the consolidated statements of income.
The amounts recognized in acquisition and integration costs on the consolidated statements of income are as follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Acquisition(1)
$20 $2 $31 
Integration(2)(3)
34 46 55 
Total acquisition and integration costs$54 $48 $86 
(1)    Acquisition expenses recognized for the twelve months ended January 29, 2021, and January 31, 2020 are related to the acquisition of Unisys Federal. Acquisition expenses recognized for the twelve months ended February 1, 2019 are related to the acquisition of Engility. See Note 4 for additional information related to the acquisitions.
(2)    Integration expenses for the twelve months ended January 29, 2021, include an $11 million loss associated with the divestiture of non-strategic international operations.
(3)    Includes $6 million, $16 million, and $29 million of restructuring costs for the year ended January 29, 2021, January 31, 2020, and February 1, 2019, respectively, and $1 million and $5 million of impairment of right of use lease assets for fiscal 2021 and fiscal 2020, respectively. See Note 5 for additional information related to restructuring costs and impairments.
Divestiture
On July 3, 2020, in connection with the integration of Engility, the Company sold certain non-strategic international operations for $22 million and recognized a loss on the divestiture of $11 million, including $1 million of transaction costs. The loss is included in acquisition and integration costs on the consolidated statements of income. The Company has received $17 million in cash proceeds through January 29, 2021, with the remaining balance due in installments through October 2021.
Goodwill and Intangible Assets
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for potential impairment annually at the beginning of the fourth quarter, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. There were no impairments during the periods presented.
The goodwill impairment test is performed at the reporting unit level. The Company estimates and compares the fair value of each reporting unit to its respective carrying value including goodwill. The fair value of the Company’s reporting units are determined using either a market approach, income approach, or a combination of both, which involves the use of estimates and assumptions, including projected future operating results and cash flows, the cost of capital, and financial measures derived from observable market data of comparable public companies. If the fair value is less than the carrying value, the amount of impairment expense is equal to the difference between the reporting unit’s fair value and the reporting unit’s carrying value.
Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives. Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Impairment of Long-lived Assets
The Company evaluates its long-lived assets for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount of the asset exceeds its estimated future undiscounted cash flows. When the carrying amount of the asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized to reduce the asset’s carrying amount to its estimated fair value based on the present value of its estimated future cash flows.
Commitments and Contingencies
Accruals for commitments and loss contingencies are recorded when it is both probable that they will occur and the amounts can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. The Company reviews these accruals quarterly and adjusts the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information.
Pension and Defined Benefit Plans
The Company measures plan assets and benefit obligations as of the month-end that is closest to its fiscal year-end. Accounting and reporting for the Company's pension and defined benefit plans requires the use of assumptions, including but not limited to, a discount rate and an expected return on assets. These assumptions are reviewed at least annually based on reviews of current plan information and consultation with the Company's independent actuary and the plans’ investment advisor. If these assumptions differ materially from actual results, the Company's obligations under the pension and defined benefit plans could also differ materially, potentially requiring the Company to record an additional liability. The Company's pension and defined benefit plan liabilities are developed from actuarial valuations, which are performed each year.
Marketable Securities
Investments in marketable securities consist of equity securities, which are recorded at fair value using observable inputs such as quoted prices in active markets (Level 1). As of January 29, 2021 and January 31, 2020, the fair value of our investments total $27 million and was included in other assets on the consolidated balance sheets. The Company's investments are primarily held in a custodial account, which includes investments to fund our deferred compensation plan liabilities.
Fair Value Measurements
The Company utilizes fair value measurement guidance prescribed by GAAP to value its financial instruments. The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than the quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).
The carrying amounts of cash and cash equivalents, receivables, accounts payable and other amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The carrying value of the Company’s outstanding debt obligations approximates its fair value. The fair value of long-term debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.
Non-financial assets acquired and liabilities assumed in a business combination were measured at fair value using income, market and cost valuation methodologies. See Note 4. The fair value measurements were estimated using significant inputs that are not observable in the market and thus represent a Level 3 measurement.
Derivative Instruments Designated as Cash Flow Hedges
Derivative instruments are recorded on the consolidated balance sheets at fair value. Unrealized gains and losses on derivatives designated as cash flow hedges are reported in other comprehensive income (loss) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions.
The Company’s fixed interest rate swaps are considered over-the-counter derivatives, and fair value is calculated using a standard pricing model for interest rate swaps with contractual terms for maturities, amortization and interest rates. Level 2, or market observable inputs (such as yield and credit curves), are used within the standard pricing models in order to determine fair value. The fair value is an estimate of the amount that the Company would pay or receive as of a measurement date if the agreements were transferred to a third party or canceled. See Note 12 for further discussion on the Company’s derivative instruments designated as cash flow hedges.
Operating Cycle
The Company’s operating cycle may be greater than one year and is measured by the average time intervening between the inception and the completion of contracts.
Research and Development
The Company conducts research and development activities under customer-funded contracts and with company-funded independent research and development (IR&D) funds. IR&D efforts consist of projects involving basic research, applied research, development, and systems and other concept formulation studies. Company-funded IR&D expense is included in selling, general and administrative expenses (SG&A) and was $6 million, $7 million and $5 million in fiscal 2021, 2020 and 2019, respectively. Customer-funded research and development activities performed under customer contracts are charged directly to cost of revenues for those particular contracts.
Accounting Standards Updates
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to use a forward-looking model to estimate credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets. The Company adopted ASU 2016-13 in the first quarter of fiscal 2021 using the modified retrospective approach. The adoption did not have a material impact on the Company’s financial statements.
In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software (Subtopic 350-40). During the third quarter of fiscal 2020, the Company early adopted ASU 2018-15 and applied its provisions prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing lease accounting standards (Topic 840). The Company adopted the standard using the optional transition method. Accordingly, the prior periods were not recast, and all prior period amounts disclosed are presented under Accounting Standards Codification (ASC 840). As a result of the adoption of the new standard, on February 2, 2019, the Company recognized approximately $169 million of right of use operating assets and $184 million of operating lease liabilities, of which $140 million was noncurrent. The adoption did not have a material impact on retained earnings, the consolidated statements of income, or the consolidated statements of cash flows.
In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for the defined benefit pension plans and other postretirement plans. The Company early adopted the provisions of the standard in the fourth quarter of fiscal 2019, which did not result in a material impact to its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements and some cost guidance included in the ASC. The Company adopted the standard on February 3, 2018, using the modified retrospective method. Under this method, the Company recognized the cumulative effect of adoption as an adjustment to its opening balance of retained earnings on February 3, 2018. Prior year periods were not retrospectively adjusted. The net impact to opening retained earnings as a result of the adoption was $3 million, attributable primarily to the change in accounting for programs previously accounted for using the efforts-expended method of percentage of completion.
In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities, which simplifies the application of hedge accounting and eliminates the requirement to separately measure and report hedge ineffectiveness. The Company early adopted the provisions of the standard in the first quarter of fiscal 2019. The adoption did not have a material impact on the Company's financial statements.
Other Accounting Standards Updates effective after January 29, 2021 are not expected to have a material effect on the Company’s financial statements.
v3.21.1
Earnings Per Share, Share Repurchases and Dividends
 12 Months Ended
Jan. 29, 2021
Earnings Per Share [Abstract]  
Earnings Per Share, Share Repurchases and Dividends Earnings Per Share, Share Repurchases and Dividends:
Earnings per Share (EPS)
Basic EPS is computed by dividing net income attributable to common stockholders by the basic weighted-average number of shares outstanding. Diluted EPS is computed similarly to basic EPS, except the weighted-average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.
A reconciliation of the weighted-average number of shares outstanding used to compute basic and diluted EPS was:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Basic weighted-average number of shares outstanding58.1 58.4 43.4 
Dilutive common share equivalents - stock options and other stock-based awards0.6 0.6 0.7 
Diluted weighted-average number of shares outstanding58.7 59.0 44.1 
 
The following stock-based awards were excluded from the weighted-average number of shares outstanding used to compute diluted EPS:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Antidilutive stock options excluded0.3 0.3 0.2 
Share Repurchases
The Company may repurchase shares in accordance with established repurchase plans. The Company retires its common stock upon repurchase with the excess over par value allocated to additional paid-in capital. The Company has not made any material purchases of common stock other than in connection with established share repurchase plans. On March 27, 2019, the number of shares of our common stock that may be repurchased under our existing repurchase plan, previously announced in October 2013, was increased by approximately 4.6 million shares, bringing the total authorized shares to be repurchased under the plan to approximately 16.4 million shares. As of January 29, 2021, the Company has repurchased approximately 12.0 million shares of common stock under the plan.
Dividends
The Company declared and paid quarterly dividends every quarter for the years presented, increasing from $0.31 to $0.37 per share in the first quarter of fiscal 2020. Total dividends declared and paid were $1.48 per share during fiscal 2021 and fiscal 2020 and $1.24 per share during fiscal 2019.
Subsequent to the end of fiscal 2021, on March 23, 2021, the Company’s Board of Directors declared a cash dividend of $0.37 per share of the Company’s common stock payable on April 30, 2021 to stockholders of record on April 16, 2021.
v3.21.1
Revenues
 12 Months Ended
Jan. 29, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues:
Revenue Recognition
The Company provides technical, engineering and enterprise IT services under long-term service arrangements primarily with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company also serves a number of state and local governments, foreign governments and U.S. commercial customers.
The Company provides services under various contract types, including firm-fixed price (FFP), time-and-materials (T&M), cost-plus-fixed-fee, cost-plus-award-fee and cost-plus-incentive-fee contracts. Our service arrangements typically involve an annual base period of performance followed by renewal periods that are accounted for as separate contracts upon each exercise.
The Company recognizes revenue when, or as, we satisfy our performance obligations under a contract. A performance obligation is the unit of account for revenue recognition and refers to a promise in a contract to transfer a distinct service or good to the customer. The majority of the Company’s contracts contain a single performance obligation involving a significant integration of various activities that are performed together to deliver a combined service or solution. Performance obligations may be satisfied over time or at a point in time, but the majority of the Company’s performance obligations are satisfied over time. The Company selects the appropriate measure of progress for revenue recognition based on the nature of the performance obligation, contract type and other pertinent contract terms.
Over time performance obligations may involve a series of recurring services, such as network operations and maintenance, operation and program support services, IT outsourcing services, and other IT arrangements where the Company is standing ready to provide support, when-and-if needed. Such performance obligations are satisfied over time because the customer simultaneously receives and consumes the benefits of our performance as services are provided. Alternatively, over time performance obligations may involve the completion of a contract deliverable. Examples include systems integration, network engineering, network design, and engineering and build services. Deliverable-based performance obligations are satisfied over time when the Company’s performance creates or enhances an asset that is controlled by the customer, or when the Company’s performance creates an asset that is customized to the customer’s specifications and the Company has a right to payment, including profit, for work performed to date.
For recurring services performance obligations, the Company measures progress using either a cost input measure (cost-to-cost), a time-elapsed output measure, or the as-invoiced practical expedient. A cost input measure typically is applied to the Company’s cost-reimbursable contracts. Revenue is recognized based on the ratio of costs incurred to total estimated costs at completion. Award or incentive fees are allocated to the distinct periods to which they relate. For fixed-price contracts, a time-elapsed output measure is applied to fixed consideration, such that revenue is recognized ratably over the period of performance. Where fixed-price contracts also provide for reimbursement of certain costs, such as travel or other direct costs, consideration may be attributed only to a distinct subset of time within the performance period. The Company’s time-and-material and fixed price-level of effort contracts generally qualify for the as-invoiced practical expedient. Revenue is recognized in the amount to which the Company has a contractual right to invoice. Contract modifications typically create new enforceable rights and obligations, which are accounted for prospectively. Changes to our estimates of the transaction price are recognized as a cumulative adjustment to revenue.
For deliverable-based performance obligations satisfied over time, the Company recognizes revenue using a cost input measure of progress (cost-to-cost), regardless of contract type. Revenue is recognized based on the ratio of costs incurred to total estimated costs at completion, except for certain contracts for which the costs associated with significant materials or hardware procurements are excluded from the measure of progress and revenue is recognized on an adjusted cost-to-cost basis. Contract modifications typically change currently enforceable rights and obligations and are accounted for as a cumulative adjustment to revenue. Changes to our estimates of transaction price are recognized as a cumulative adjustment to revenue.
For performance obligations in which the Company does not transfer control over time, we recognize revenue at the point-in-time when the customer obtains control of the related asset, usually at the time of shipment or upon delivery. The Company accrues for shipping and handling costs occurring after the point-in-time control transfers to the customer.
Recognizing revenue on long-term contracts involves significant estimates and judgments. The transaction price is the estimated amount of consideration we expect to receive for performance under our contracts. Contract terms may include variable consideration, such as reimbursable costs, award and incentive fees, usage-based fees, service-level penalties, performance bonuses, or other provisions that can either increase or decrease the transaction price. Variable amounts generally are determined upon our achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. When making our estimates, the Company considers the customer, contract terms, the complexity of the work and related risks, the extent of customer discretion, historical experience and the potential of a significant reversal of revenue. The Company includes variable consideration in the transaction price only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.
Estimating costs at completion is complex due to the nature of the services being performed and the length of certain contracts. Contract costs generally include direct costs, such as labor, subcontract costs and materials, and indirect costs identifiable with or allocable to a specific contract. Management must make assumptions regarding the complexity of the work to be performed, the schedule and associated tasks, labor productivity and availability, increases in wages and prices of materials, execution by our subcontractors, overhead cost rates, and other variables. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the Defense Contract Audit Agency ("DCAA").
Contract fulfillment costs are expensed as incurred except for certain costs incurred for transition, set-up or other fulfillment activities, which are capitalized and amortized on a straight-line basis over the expected period of benefit, which generally includes the base contract period of performance and anticipated renewal periods. The Company provides for anticipated losses on contracts with the U.S. government by recording an expense for the total expected loss during the period in which the losses are first determined.
For contracts with multiple performance obligations, the Company allocates transaction price to each performance obligation based on the relative standalone selling price of each distinct performance obligation within the contract. Because the Company typically provides customized services and solutions that are specific to a single customer’s requirements, standalone selling price is most often estimated based on expected costs plus a reasonable profit margin.
Changes in Estimates on Contracts
Changes in estimates of revenues, cost of revenues or profits related to performance obligations satisfied over time are recognized in operating income in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can routinely occur over the performance period for a variety of reasons, which include: changes in scope; changes in cost estimates due to unanticipated cost growth or reassessments of risks impacting costs; changes in the estimated transaction price, such as variable amounts for incentive or award fees; and performance being better or worse than previously estimated. In cases when total expected costs exceed total estimated revenues for a performance obligation, the Company recognizes the total estimated loss in the quarter identified. Total estimated losses are inclusive of any unexercised options that are probable of award, only if they increase the amount of the loss.
Aggregate changes in these estimates recognized in operating income were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions, except per share amounts)
Favorable adjustments$41 $39 $30 
Unfavorable adjustments(32)(17)(13)
Net favorable adjustments9 22 17 
Income tax effect(2)(4)(4)
Net favorable adjustments, after tax7 18 13 
Basic EPS impact$0.12 $0.31 $0.29 
Diluted EPS impact$0.12 $0.31 $0.29 
Revenues were $21 million, $23 million, and $8 million higher for fiscal 2021, 2020, and 2019, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.
Disaggregation of Revenues
The Company's revenues are generated primarily from long-term contracts with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company disaggregates revenues by customer, contract-type and prime vs. subcontractor to the federal government.
Disaggregated revenues by customer was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Department of Defense$3,292 $3,330 $2,805 
Other federal government agencies3,611 2,920 1,707 
Commercial, state and local153 129 147 
Total$7,056 $6,379 $4,659 
Disaggregated revenues by contract-type was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Cost reimbursement$3,773 $3,644 $2,306 
Time and materials (T&M)1,557 1,280 1,086 
Firm-fixed price (FFP)1,726 1,455 1,267 
Total$7,056 $6,379 $4,659 
Disaggregated revenues by prime vs. subcontractor was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Prime contractor to federal government$6,337 $5,662 $4,178 
Subcontractor to federal government566 588 334 
Other153 129 147 
Total$7,056 $6,379 $4,659 
Contract Balances
Timing of revenue recognition may differ from the timing of billing and cash receipts from customers. Amounts are invoiced as work progresses, typically biweekly or monthly in arrears, or upon achievement of contractual milestones. We record a contract asset when revenue is recognized prior to invoicing, or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets include unbillable receivables and contract retentions, but exclude billed and billable receivables. Billed and billable receivables are rights to consideration, which are unconditional other than to the passage of time. Contract liabilities include customer advances, billings in excess of revenues and deferred revenue. Contract assets and liabilities are recorded net on a contract-by-contract basis and are generally classified as current based on our contract operating cycle. Deferred revenue attributable to long-term contract material renewal options may be classified as non-current when the option renewal period will not occur within one year of the balance sheet date.
Contract balances for the periods presented were as follows:
Balance Sheet line itemJanuary 29,
2021		January 31,
2020
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$600 $720 
Contract assets - unbillable receivablesReceivables, net362 379 
Contract assets - contract retentionsOther assets18 17 
Contract liabilities - currentOther accrued liabilities82 41 
Contract liabilities - non-currentOther long-term liabilities$17 $10 
(1)    Net of allowance of $3 million and $4 million as of January 29, 2021 and January 31, 2020, respectively.
The changes in the Company's contract assets and contract liabilities during the current period primarily results from the acquisition of Unisys Federal in fiscal 2021 and timing differences between the Company's performance, invoicing and customer payments. During the twelve months ended January 29, 2021 and January 31, 2020, the Company recognized revenues of $30 million and $23 million relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2020 and February 1, 2019, respectively.
Deferred Costs
Certain eligible costs, typically incurred during the initial phases of our service contracts, are capitalized when the costs relate directly to the contract, are expected to be recovered, and generate or enhance resources to be used in satisfying the performance obligation. These costs primarily consist of transition and set-up costs. Capitalized fulfillment costs are amortized on a straight-line basis over the expected period of benefit, which generally includes the contract base period and anticipated renewals.
The Company defers fulfillment costs incurred to transfer service to a customer prior to the establishment of a contract provided recovery is probable. These pre-contract costs are typically expensed upon contract award unless they are eligible for capitalization.
The Company performs periodic reviews to assess the recoverability of deferred contract transition and setup costs. The carrying amount of the asset is compared to the remaining amount of consideration the Company expects to receive for the services to which the asset relates, less the costs that relate directly to providing those services that have not yet been recognized. If the carrying amount is not recoverable, an impairment loss is recognized.
Deferred costs for the periods presented were as follows:
 Balance Sheet line itemJanuary 29,
2021		January 31,
2020
 (in millions)
Pre-contract costsOther current assets$2 $3 
Fulfillment costs - non-currentOther assets$15 $12 
Pre-contract costs of $8 million and $3 million were expensed during the twelve months ended January 29, 2021 and January 31, 2020, respectively. Fulfillment costs of $4 million and $3 million were amortized during the twelve months ended January 29, 2021 and January 31, 2020, respectively.
Remaining Performance Obligations
As of January 29, 2021, the Company had $4.9 billion of remaining performance obligations. Remaining performance obligations exclude any variable consideration that is allocated entirely to unsatisfied performance obligations on our supply chain contracts. The Company expects to recognize revenue on approximately 85% of the remaining performance obligations over the next 12 months and approximately 90% over the next 24 months, with the remaining recognized thereafter.
v3.21.1
Acquisitions
 12 Months Ended
Jan. 29, 2021
Business Combinations [Abstract]  
Acquisitions Acquisitions:
Unisys Federal Acquisition
On March 13, 2020, the Company completed the acquisition of Unisys Federal, a former operating unit of Unisys Corporation. Unisys Federal provides infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service solutions to U.S. federal civilian agencies and the Department of Defense. This strategic acquisition enhances our capabilities in government priority areas, expands our portfolio of intellectual property and technology-driven offerings, and increases our access to current and new customers. The Company purchased substantially all of the assets and liabilities of Unisys Federal for an aggregate purchase price of $1.2 billion. The Company used the net proceeds from its offering of Senior Notes and borrowings under the Term Loan B2 Facility (as discussed in Note 11), proceeds from the sale of receivables under its MARPA Facility (as discussed in Note 14), and cash on its balance sheet to finance the acquisition and pay related fees and expenses.
The purchase price was allocated, on a preliminary basis, among assets acquired and liabilities assumed at fair value on the acquisition date, March 13, 2020, based on the best available information, with the excess purchase price recorded as goodwill.
During fiscal 2021, the Company adjusted the preliminary purchase price resulting in a $39 million net increase to goodwill. The measurement period adjustments included: $6 million increase to the purchase price associated with the final net working capital adjustment; $67 million increase to other long-term liabilities associated with off-market customer contracts; $26 million net increase to intangible assets; $6 million increase to deferred tax assets; $1 million increase to prepaid expenses; and $1 million decrease to other accrued liabilities. The Company has completed the purchase accounting valuation for this transaction and recorded final purchase accounting entries as follows:
(in millions)
Receivables$114 
Prepaid expenses15 
Goodwill654 
Intangible assets574 
Property, plant, and equipment4 
Operating lease right of use assets43 
Other assets7 
Total assets acquired1,411 
Accounts payable42 
Accrued vacation7 
Other accrued liabilities62 
Operating lease liabilities30 
Other long-term liabilities68 
Total liabilities assumed209 
Net assets acquired$1,202 
Amount of tax deductible goodwill$593 
Goodwill resulting from the acquisition of Unisys Federal was primarily associated with intellectual capital, an acquired assembled work force, and future customer relationships. The identifiable intangible assets and a portion of the goodwill acquired by the Company are amortizable for tax purposes.
The following table summarizes the fair value of intangible assets and the related weighted-average useful lives as of the acquisition date:
AmountWeighted-Average Amortization Period
(in millions)(in years)
Customer relationships$520 13
Backlog47 1
Developed technology7 1
Total intangible assets$574 12
The backlog intangible asset is comprised solely of funded backlog as of the acquisition date. The customer relationships intangible asset consists of unfunded backlog as of the acquisition date and estimated future renewals and recompetes. The backlog and customer relationships intangible assets were valued using the excess earnings method (income approach) in which the value is derived from an estimation of the after-tax cash flows specifically attributable to the intangible asset being valued. The analysis included assumptions for projections of revenues and expenses, tax rates, contributory asset charges, discount rates, and a tax amortization benefit.
The developed technology asset was valued using the relief from royalty method (income approach) in which the value is derived by estimation of the after-tax royalty savings attributable to owning the developed technology asset. Assumptions in this analysis included projections of revenues, royalty rates representing costs avoided due to ownership of the developed technology asset, discount rates, a tax amortization benefit, and future obsolescence of the technology.
The Company recorded a $67 million provision for certain off-market customer contracts whose terms are unfavorable compared to the current market terms as of the acquisition date. An income approach was used to
estimate fair value, involving estimates for future costs to complete the remaining performance under the contract as well as a market participant profit rate of return. The provision for off-market customer contracts is included in other long-term liabilities and will be amortized over the remaining contractual terms as an increase to revenue. Amortization for the fiscal year ended January 29, 2021, was $15 million. Amortization for the next four years is expected to be as follows: $18 million in 2022, $18 million in 2023, $14 million in 2024, and $2 million in 2025.
The Company incurred $49 million in acquisition-related costs associated with the acquisition of Unisys Federal, including $27 million of debt issue costs (as discussed in Note 11). Acquisition-related costs of $2 million were incurred in the fourth quarter of fiscal 2020.
The amount of Unisys Federal's revenue included in the consolidated statements of income for the twelve months ended January 29, 2021, was $669 million, and the amount of net income attributable to common stockholders included in the consolidated statements of income for the twelve months ended January 29, 2021, was $62 million.
The following unaudited pro forma financial information presents the combined results of operations for Unisys Federal and the Company for the twelve months ended January 29, 2021 and January 31, 2020, respectively:
Year Ended
January 29,
2021		January 31,
2020
(in millions)
Revenues$7,146 $7,105 
Net income attributable to common stockholders$258 $193 
The unaudited pro forma combined financial information presented above has been prepared from historical financial statements that have been adjusted to give effect to the acquisition of Unisys Federal as though it had occurred on February 2, 2019. They include adjustments for intangible asset amortization; interest expense and debt issuance costs on long-term debt; acquisition and other transaction costs; and certain costs allocated from the former parent. The unaudited pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had occurred on February 2, 2019, nor is it indicative of future operating results.
Engility Acquisition
On January 14, 2019, the Company completed the acquisition of Engility Holdings, Inc., a leading provider of integrated solutions and services supporting U.S. government customers in the defense, federal civilian, and intelligence and space communities. The purchase consideration for the acquisition of Engility was as follows:
(in millions)
Common stock issued to Engility shareholders(1)
$1,086 
Converted vesting stock awards assumed(2)
22 
Cash consideration paid to extinguish Engility outstanding debt1,052 
Purchase price$2,160 
(1)    Represents approximately 16.8 million new shares of SAIC common stock issued to Engility shareholders prior to the market opening on January 14, 2019, using the SAIC share price of $65.03 at the close of business on January 11, 2019.
(2)    Represents the fair value of the converted vesting stock awards assumed attributable to pre-acquisition service. See Note 8.
During fiscal 2019, the Company incurred $63 million in acquisition-related costs associated with the acquisition of Engility, including $31 million of debt issue costs, see Note 11, and $2 million in stock issue costs.
The amount of Engility's revenue included in the consolidated statements of income for fiscal 2019 was $98 million and the amount of net loss included in the consolidated statements of income for fiscal 2019 was $19 million, which includes $32 million of integration-related costs.
The following unaudited pro forma financial information presents the combined results of operations for Engility and the Company for the year ended February 1, 2019:
Year Ended
February 1, 2019
(in millions)
Revenues$6,426 
Net income attributable to common stockholders$260 
The unaudited pro forma, combined financial information presented above has been prepared from historical financial statements that have been adjusted to give effect to the acquisition of Engility as though it had occurred on February 4, 2017. They include adjustments for intangible asset amortization; interest expense and debt issuance costs on long-term debt; acquisition, integration, and other transaction costs; and the elimination of intercompany revenue and costs.
v3.21.1
Restructuring and Impairment (Notes)
 12 Months Ended
Jan. 29, 2021
Restructuring and Related Activities [Abstract]  
Restructuring and Impairment Restructuring and Impairment:
Restructuring and impairment costs recognized were as follows:
Year Ended
Statement of Income line itemJanuary 29, 2021January 31, 2020February 1, 2019
(in millions)
2021 Restructuring:
Severance and other employee costsSG&A$4 $— $— 
2019 Restructuring:
Severance and other employee costsAcquisition and integration costs2 9 29 
Other associated costsAcquisition and integration costs4 7 — 
Total restructuring costs10 16 29 
Impairment of right of use lease assetsSG&A1 — — 
Impairment of right of use lease assetsAcquisition and integration costs1 5 — 
Total restructuring costs and impairment$12 $21 $29 
In fiscal 2021, the Company initiated and completed restructuring activities (the "2021 Restructuring") associated with an internal reorganization. The remaining liability associated with the restructuring is $4 million and will be settled by the first quarter of fiscal 2022.
In fiscal 2019, the Company initiated restructuring activities (the "2019 Restructuring") to realize cost synergies from the integration of Engility, which includes employee termination costs and other costs associated with the optimization and consolidation of facilities. The Company expects to complete restructuring activities in fiscal 2022, incurring total restructuring costs of approximately $52 million, comprised of $40 million for severance and other employee costs and $12 million of other associated costs, such as contract terminations and costs incurred for facility consolidation. Cash paid for severance and other employee costs was $3 million, $12 million, and $25 million during fiscal 2021, fiscal 2020, and fiscal 2019, respectively. Cash paid for other associated costs was $4 million and $7 million during fiscal 2021 and fiscal 2020, respectively, and the Company expects to incur an additional $1 million in fiscal 2022.
v3.21.1
Goodwill and Intangible Assets
 12 Months Ended
Jan. 29, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets:
Goodwill
Goodwill had a carrying value of $2,787 million and $2,139 million as of January 29, 2021 and January 31, 2020, respectively. Goodwill increased by $648 million during the twelve months ended January 29, 2021, due to the acquisition of Unisys Federal ($654 million) as discussed in Note 4, partially offset by goodwill allocated to the divestiture of non-strategic international operations ($6 million) as discussed in Note 1. There were no impairments of goodwill during the periods presented.
Intangible Assets
Intangible assets, all of which were finite-lived, consisted of the following:
January 29, 2021January 31, 2020
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in millions)
Customer relationships$1,371 $(241)$1,130 $851 $(142)$709 
Backlog47 (41)6 — — — 
Developed technology9 (7)2 2 — 2 
Total intangible assets$1,427 $(289)$1,138 $853 $(142)$711 
Amortization expense related to intangible assets was $147 million, $95 million and $24 million for fiscal 2021, 2020 and 2019, respectively. There were no intangible asset impairment losses during the periods presented.
As of January 29, 2021, the estimated future annual amortization expense related to intangible assets is as follows:
Fiscal Year Ending(in millions)
2022$110 
2023106 
2024103 
2025103 
2026103 
Thereafter613 
Total$1,138 
Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments and other factors.
v3.21.1
Property, Plant, and Equipment
 12 Months Ended
Jan. 29, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment Property, Plant, and Equipment:Property, plant, and equipment are carried at cost net of accumulated depreciation and amortization. Purchases of property, plant, and equipment, as well as costs associated with major renewals and betterments, are capitalized. Maintenance, repairs and minor renewals and betterments are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized.
Depreciation and amortization is recognized using the methods and estimated useful lives as follows: 
Depreciation or
amortization method
Estimated useful lives (in years)January 29,
2021		January 31,
2020
(in millions)
Computer equipmentStraight-line or
declining balance
3-10
$90 $90 
Capitalized software and software licensesStraight-line or
declining balance
3-10
45 68 
Leasehold improvementsStraight-lineShorter of lease term or 1092 80 
Office furniture and fixturesStraight-line or
declining balance
3-10
17 19 
Buildings and improvementsStraight-line407 7 
Construction in process14 7 
Land1 1 
Property, plant, and equipment266 272 
Accumulated depreciation and amortization(158)(181)
Property, plant, and equipment, net$108 $91 
Depreciation and amortization expense for property, plant, and equipment was $32 million, $36 million and $23 million in fiscal 2021, 2020 and 2019, respectively.
v3.21.1
Stock-Based Compensation
 12 Months Ended
Jan. 29, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation:
Engility Acquisition Assumed Awards
Upon the acquisition of Engility, all Engility outstanding and unvested equity awards were converted into SAIC vesting stock awards using the same exchange ratio as Engility’s common shareholders (0.45 SAIC share per Engility share). The Company assumed approximately 642,000 converted vesting stock awards with a fair value of $65.03 per share for a total of $42 million, which was bifurcated between pre- and post-combination periods of service in the amount of $22 million and $20 million, respectively. The amount attributable to the pre-combination service period is included in the purchase consideration of Engility. Of the remaining $20 million attributable to the post-combination service period, the Company expensed $2 million, $3 million, and $14 million in fiscal 2021, fiscal 2020, and fiscal 2019, respectively.
Plan Summaries
Certain of the Company’s employees participate in the following four stock-based compensation plans: “2013 Equity Incentive Plan” (EIP), “Management Stock Compensation Plan,” “2013 Employee Stock Purchase Plan” (ESPP), and the "2012 Long Term Performance Plan" (LTPP) for Engility assumed awards, which are herein referred to together as the “Plans.” The Company issues new shares on the vesting of stock awards or exercise of stock options under these Plans.
The EIP provides the Company’s employees and directors the opportunity to receive various types of stock-based compensation and cash awards. The terms of the stock-based awards granted to employees and directors are the same, except that those for directors cliff vest within one year of the grant date. As of January 29, 2021, the Company has outstanding stock options, vested and vesting stock awards, and performance share awards under this plan. Stock options granted under the EIP generally become exercisable 33%, 33%, and 33% after one, two and three years, respectively, while vesting stock awards granted prior to fiscal 2020 generally vest 25%, 25%, 25% and 25% after one, two, three and four years, respectively. Vesting stock awards granted in fiscal 2020 and thereafter generally vest 33%, 33%, and 33% after one, two and three years, respectively. The maximum contractual term for stock options granted under the EIP is ten years, but historically the Company has granted stock options with a seven-year contractual term. Vesting may be accelerated for employees meeting retirement eligibility conditions. Vesting accelerates for eligible officers upon termination of employment, subject to certain conditions set forth in the Company’s Executive Severance, Change in Control and Retirement Policy effective July 1, 2020. Stock-based awards generally provide for accelerated vesting if there is a change in control (as defined in the EIP). Vesting stock awards and performance share awards have forfeitable rights to dividends. In June 2014, the EIP was amended and restated to increase the total authorized shares of common stock for issuance under the EIP from 5.7 million to 8.5 million.
The Company grants performance-based stock awards to certain officers and key employees under the EIP. Performance shares are rights to receive shares of the Company’s stock on the satisfaction of service requirements and performance conditions. These awards cliff vest at the end of the third fiscal year following the grant date, subject to meeting the minimum service requirements and the achievement of certain annual and cumulative financial metrics of the Company’s performance, with the number of shares ultimately issued, if any, ranging up to 200% of the specified target shares. If performance is below the minimum threshold level of performance, no shares will be issued. For all performance share awards granted, the annual financial metrics are based on operating cash flows and the cumulative financial metrics are based on a measure of earnings.
The Management Stock Compensation Plan provides for awards in share units to eligible employees. Benefits are payable in shares of the Company’s stock that are held in a trust for the purpose of funding benefit payments to the participants. During fiscal 2017 all remaining outstanding awards in the Management Stock Compensation Plan vested. The Board of Directors may at any time amend or terminate the Management Stock Compensation Plan. In the event of a change in control of the Company (as defined by the Management Stock Compensation Plan), participant accounts will be immediately distributed, otherwise participant accounts will generally be distributed upon retirement, based on the participant’s payout election, or upon termination. The Management Stock Compensation Plan does not provide for a maximum number of shares available for future issuance.
The Company’s ESPP allows eligible employees to purchase shares of the Company’s stock at a discount of up to 15% of the fair market value on the date of purchase. During the three years ended January 29, 2021, the discount was 5% of the fair market value on the date of purchase for purchases made under the Company’s ESPP, thereby resulting in the ESPP being non-compensatory. As of January 29, 2021, 3.4 million shares of the Company’s stock are authorized for issuance under the ESPP.
The LTPP provides certain employees of the Company the opportunity to receive various types of stock-based compensation awards. As of January 29, 2021, the Company has vesting stock awards assumed from the Engility acquisition under this plan. These remaining outstanding vesting stock awards assumed under the LTPP will continue to vest under their original vesting schedule, when granted by Engility prior to the acquisition, and generally cliff vest at the end of the third fiscal year following the grant date. Vesting may be accelerated for employees meeting retirement eligibility conditions. Vesting stock awards under the LTPP have forfeitable rights to dividends.
Expense and Related Tax Benefits Recognized
Stock-based compensation expense and related tax benefits recognized under the Plans were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Stock-based compensation expense:
Stock options$3 $4 $3 
Vesting stock awards32 29 37 
Performance share awards7 4 5 
Total stock-based compensation expense$42 $37 $45 
Tax benefits recognized from stock-based compensation$14 $13 $20 
Stock Options
Stock options are granted with their exercise price equal to the closing market price of the Company’s stock on the last trading day preceding the grant date.
Stock option activity for the year ended January 29, 2021 was:
Shares of stocks under stock optionsWeighted-average exercise priceWeighted-average remaining contractual termAggregate intrinsic value
(in millions)(in years)(in millions)
Outstanding at January 31, 20200.7 $60.47 3.5$20 
Options granted0.2 74.57 
Options forfeited or expired— — 
Options exercised(0.2)40.82 
Outstanding at January 29, 20210.7 $68.57 3.9$20 
Options exercisable at January 29, 20210.5 $64.91 2.8$14 
Vested and expected to vest as of January 29, 20210.7 $68.48 3.8$19 
 
As of January 29, 2021 there was $2 million of unrecognized compensation cost, net of estimated forfeitures, related to stock options, which is expected to be recognized over a weighted-average period of 1.1 years.
The following table summarizes activity related to exercises of stock options:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Cash received from exercises of stock options$— $— $— 
Stock exchanged at fair value upon exercises of stock options$1 $2 $1 
Tax benefits from exercises of stock options$2 $3 $7 
Total intrinsic value of options exercised$8 $16 $24 
 
The fair value of stock option awards granted under the Company’s plan were valued using the Black-Scholes option-pricing model based on the following assumptions:
Expected Term--The expected term was calculated from the Company's historical settlement data.
Expected Volatility--The expected volatility is based on the historical volatility of the Company over a period commensurate with the expected term of the stock option as of the date of grant.
Risk-Free Interest Rate--The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the stock option on the date of grant.
Dividend Yield--The dividend yield assumed over the expected term of the option is calculated based on the most recently announced dividend as of the grant date.
The weighted-average grant date fair value and assumptions used to determine the fair value of stock options granted for the periods presented were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
Weighted-average grant-date fair value$17.54 $16.88 $19.48 
Expected term (in years)3.84.24.0
Expected volatility35.5 %30.0 %29.0 %
Risk-free interest rate0.3 %2.2 %2.5 %
Dividend yield1.8 %2.0 %1.6 %

Vesting Stock Awards
Vesting stock award activity for the year ended January 29, 2021 was:
Shares of stock under stock awardsWeighted-average grant date fair value
(in millions)
Unvested January 31, 20200.9 $74.94 
Awards granted0.6 76.41 
Awards forfeited(0.1)75.34 
Awards vested(0.4)72.64 
Unvested January 29, 20211.0 $76.73 
 
The grant date fair value of vesting stock awards is based on the closing market price of the Company’s stock on the last trading day preceding the grant date. The weighted-average grant date fair value of the vesting stock awards granted for fiscal 2021, fiscal 2020 and fiscal 2019 was $76.41, $76.01 and $84.28, respectively. As of January 29, 2021 there was $39 million of unrecognized compensation cost, net of estimated forfeitures, related to vesting stock awards, which is expected to be recognized over a weighted-average period of 1.3 years. The fair value of vesting stock awards that vested in fiscal 2021, fiscal 2020 and fiscal 2019 was $32 million, $35 million and $60 million, respectively.
Performance Share Awards
Performance share award activity for the year ended January 29, 2021 was:
Shares of stock under performance sharesWeighted-average grant date fair value
(in millions)
Unvested performance shares at January 31, 20200.1 $81.60 
Performance shares granted0.1 74.40 
Performance shares forfeited— — 
Performance shares vested— — 
Performance shares adjustment— — 
Unvested performance shares at January 29, 20210.2 $76.54 
 
For performance share awards granted in fiscal 2021, the actual number of shares to be issued upon vesting range between 0-200% of the specified target shares. For performance share awards granted prior to fiscal 2021, the actual number of shares to be issued upon vesting range between 0-150% of the specified target shares. The number of performance shares are presented at 100% of the specified target shares in the table above, except for performance shares that vested and performance shares adjustment. Performance shares vested reflects the number of shares to be issued based on the actual achievement of the performance goals for shares that vested during the period. Performance shares adjustment reflects the increase or decrease in the number of performance shares vested compared to the number of performance shares that would have vested at target.
The fair value of performance share awards that vested in fiscal 2021 was $5 million. For unvested performance shares as of January 29, 2021 the Company expects to issue 0.2 million shares of stock in the future based on estimated future achievement of the performance goals. The weighted-average grant date fair value of the performance share awards granted for fiscal 2021, fiscal 2020, and fiscal 2019 was $74.40, $79.04 and $85.31, respectively. The grant date fair value of performance share awards is based on the closing market price of the Company’s common stock on the last trading day preceding the grant date. As of January 29, 2021 there was $5.6 million of unrecognized compensation cost, net of estimated forfeitures, related to performance share awards, which is expected to be recognized over a weighted-average period of 1.7 years.
v3.21.1
Retirement Plans
 12 Months Ended
Jan. 29, 2021
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans:
Defined Contribution Plans
The Company sponsors the Science Applications International Corporation Retirement Plan (a qualified defined contribution 401(k) plan) and an employee stock ownership plan, in which most employees are eligible to participate. There are a variety of investment options available, including the Company's stock. Engility sponsored the Engility Master Savings Plan, which was a 401(k) plan in which most employees of Engility were eligible to participate. The Engility Master Savings Plan merged into the Science Applications International Corporation Retirement Plan on January 2, 2020.
The Science Applications International Corporation Retirement Plan allows eligible participants to contribute a portion of their income through payroll deductions and the Company makes matching company contributions and may also make discretionary contributions. The Company contributions expensed for defined contribution plans were $73 million, $65 million and $46 million in fiscal 2021, 2020 and 2019, respectively.
Deferred Compensation Plans
The Company has established the Science Applications International Corporation Deferred Compensation Plan (DCP), effective January 1, 2015, providing certain eligible employees and directors an opportunity to defer some or all of their compensation on an unfunded, nonqualified basis. Participant deferrals are fully vested and diversified at the participant’s direction among the investment options offered under the DCP. Participant accounts will be credited with a rate of return based on the performance of the investment options selected. Distributions are made in cash. Deferred balances will be paid on retirement, based on the participant’s payout election, or upon termination. The Company may provide discretionary contributions to participants, but no Company contributions have been made.
The Science Applications International Corporation Key Executive Stock Deferral Plan (KESDP) was closed on December 31, 2014, and no further deferrals are allowed. Benefits from the KESDP are payable in shares of the Company’s stock that may be held in trust for the purpose of funding benefit payments to KESDP participants. Vested deferred balances will generally be paid on retirement, based on the participant’s payout election, or upon termination.
The Science Applications International Corporation 401(k) Excess Deferral Plan (Excess Plan) was also closed on December 31, 2014, and no further deferrals are allowed. Participant deferrals are fully vested and diversified at the participant’s direction among the investment options offered under the Excess Plan. Deferred balances will generally be paid following retirement or termination.
Defined Benefit Plans
In connection with the acquisition of Engility on January 14, 2019, SAIC assumed two defined benefit plans sponsored by Engility for certain current and former employees: a Defined Benefit Pension Plan (Pension Plan) and a Retiree Health Reimbursement Account Plan (RHRA Benefit Plan). Membership and participants' calculated pension benefit are frozen in the Pension Plan and membership in the RHRA Benefit Plan is frozen.
Our funding policy is to contribute at least the minimum amount required by the Employee Retirement income Security Act of 1974. Additional amounts are contributed to assure that plan assets will be adequate to provide retirement benefits. During fiscal 2022, the Company expects to contribute $1 million to fund the RHRA Benefit Plan.
During fiscal 2021, the Company recognized a net gain of $2 million on our retirement plans within other comprehensive loss. The gain was primarily comprised of a $3 million gain due to assumption changes other than discount rates, $2 million gain from the excess in actual investment return over the expected return, and $1 million of settlement charges. During the fourth quarter of fiscal 2021, the Company transferred out $6 million of assets to settle the obligations of certain retirees within the Pension Plan, which resulted in the $1 million of settlement charges. These gains were partially offset by a $4 million increase in liability caused by a decrease in the discount rates.
During fiscal 2020, the Company recognized net losses of $5 million and $1 million within other comprehensive (income) loss related to changes in the net benefit obligations for the Pension Plan and RHRA Benefit Plan, respectively. During fiscal 2020, the net loss of $6 million was attributable to a $9 million increase in the projected benefit obligation caused by a decrease in the discount rate, partially offset by an actual investment return in excess of the expected return by $3 million.

Net Periodic Benefit Costs
The net periodic benefit cost was as follows:
Pension PlanRHRA Benefit Plan
Year Ended
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Interest cost on projected benefit obligation$2 $3 $— $1 
Expected return on plan assets(3)(3)— — 
Settlement cost1 — — — 
Net periodic benefit cost$— $— $— $1 
Obligations and Funded Status
The projected benefit obligation, fair value of plan assets, and funded status for each plan are as follows:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year$76 $71 $17 $15 
Interest cost2 3 — 1 
Benefits paid(5)(5)(1)(1)
Actuarial loss (gain)3 7 (2)2 
Settlements(6)— — — 
Benefit obligation at end of year$70 $76 $14 $17 
Change in plan assets:
Fair value of plan assets at beginning of year53 52 — — 
Actual return on plan assets5 6 — — 
Employer contributions8 — 1 1 
Benefits paid(5)(5)(1)(1)
Settlements(6)— — — 
Fair value of plan assets at end of year$55 $53 $— $— 
Unfunded status$15 $23 $14 $17 
Amounts recognized in the consolidated balance sheets consist of:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Other accrued liabilities$— $— $1 $1 
Other long-term liabilities15 23 13 16 
Net amount recognized$15 $23 $14 $17 
Assumptions
The Company uses the spot rate approach to measure liabilities and interest costs for defined benefit obligations. Under the spot rate approach, the Company uses individual spot rates along the yield curve that correspond with the timing of each benefit payment.
The discount rates represent the estimated rate at which we could effectively settle our defined benefit obligations using a high quality bond yield curve.
The assumed long-term rate of return on plan assets, which is the average return expected on the funds invested or to be invested to provide future benefits to pension plan participants, is determined by an annual review of historical returns on plan assets. In selecting the expected long-term rate of return on assets used for the Pension Plan, the Company considered its investment return goals stated in the Pension Plan's investment policy. This process included determining expected returns for the various asset classes that comprise the Pension Plan's target asset allocation.
The following assumptions were used to determine the benefit obligations and net periodic benefit costs:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020February 1, 2019January 29, 2021January 31, 2020February 1, 2019
Discount rate2.47 %2.87 %4.06 %1.86 %2.56 %3.82 %
Interest cost effective rate2.47 %3.70 %N/A2.27 %3.58 %N/A
Expected rate of return on assets5.50 %5.50 %N/AN/AN/AN/A
Pension Plan Assets
The Company's investment policy includes a periodic review of the Pension Plan's investment in the various asset classes. During 2021, the Company's overall investment strategy is for plan assets to achieve a long-term rate of return of 5.50%, with a wide diversification of asset types, fund strategies and fund managers. The target allocation for the plan assets is 44% in domestic equity securities, 20% international equity, 31% in fixed income securities, and 5% in cash and cash equivalents. The risk management practices include regular evaluations of fund managers to ensure the risk assumed is commensurate with the given investment style and objectives. According to the plan's investment policy, performance will be evaluated across all time periods, with a particular emphasis on longer-term returns relative to associated peers and benchmarks.
The fair value measurement of plan assets by category is as follows:
January 29, 2021January 31, 2020
Asset CategoryFair Value Hierarchy(in millions)
Mutual funds
EquityLevel 1$37 $34 
Fixed incomeLevel 18 9 
Guaranteed deposit accountLevel 33 2 
Subtotal48 45 
Collective trust - fixed income(1)
Measured at NAV7 8 
Total$55 $53 
(1)Collective trusts are measured at fair value using net asset value (NAV) as a practical expedient and have not been categorized in the fair value hierarchy.
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
A reconciliation of the beginning and ending balances of the Guaranteed Deposit Account (GDA) is as follows:
Guaranteed Deposit Account
(in millions)
Balance at February 1, 2019
$3 
Purchases13 
Sales(14)
Balance at January 31, 2020
2 
Purchases12 
Sales(11)
Balance at January 29, 2021
$3 
The GDA is designed to provide liquidity and safety of principal with a competitive guaranteed rate of return. The fair value of the GDA approximates the market value of underlying investments by discounting expected future investment cash flow from both investment income and repayment of principal for each investment purchased directly for the defined benefit segment of the General Account. Principal and accumulated interest are fully guaranteed by Prudential Retirement Insurance and Annuity Company (PRIAC). The declared interest rate is
announced each year in advance and is determined by PRIAC. The GDA invests in a broadly diversified, fixed-income portfolio within PRIAC's general account. The portfolio is invested in public bonds, commercial mortgages and private placement bonds.
Estimated Future Benefit Payments
The following table sets forth the expected timing of benefit payments by fiscal year:
Fiscal YearPension PlanRHRA Benefit PlanTotal
(in millions)
2022$5 $1 $6 
20235 1 6 
20245 1 6 
20255 1 6 
20265 1 6 
Five subsequent fiscal years$22 $6 $28 
v3.21.1
Income Taxes
 12 Months Ended
Jan. 29, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes:
Substantially all of the Company’s income before income taxes for the three years ended January 29, 2021 is subject to taxation in the United States. The provision for income taxes for each of the periods presented include the following:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Current:
Federal$34 $10 $4 
State14 3 10 
Deferred:
Federal10 32 17 
State2 12 2 
Total$60 $57 $33 
A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for each of the periods presented follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Amount computed at the statutory federal income tax rate$57 $60 $36 
State income taxes, net of federal tax benefit13 14 9 
Research and development and other federal credits(8)(11)(8)
Non-deductible compensation3 2 3 
Non-deductible acquisition costs— — 3 
Excess tax benefits for stock-based compensation(3)(4)(9)
Other(2)(4)(1)
Total$60 $57 $33 
Effective income tax rate22.1 %20.0 %19.4 %
The effective income tax rate for fiscal 2021 is higher than fiscal 2020 primarily due to less research and development credits in fiscal 2021 because fiscal year 2020 included the benefit from multiple years and smaller excess tax benefits from stock-based compensation in fiscal 2021. In fiscal 2020, we recognized $6 million of tax benefits related to research and development credits for fiscal years 2016 - 2019 and $5 million related to the 2020 tax year. The effective income tax rate for fiscal 2020 is consistent with the rate in fiscal 2019 due to smaller excess tax benefits from stock-based compensation were partially offset by increased research and development credits in fiscal 2020.
Deferred income taxes are recorded for differences in the basis of assets and liabilities for financial reporting purposes and tax reporting purposes. Deferred tax assets (liabilities) were comprised of:
January 29,
2021		January 31,
2020
(in millions)
Accrued vacation and bonuses$33 $21 
Accrued liabilities16 20 
Deferred compensation20 23 
Stock awards11 11 
Net operating loss and other carryforwards105 117 
Fixed asset basis differences— 2 
Deferred revenue14 — 
Lease liability65 54 
Payroll tax deferral11 — 
Accumulated other comprehensive loss30 23 
Valuation allowance(7)(5)
Total deferred tax assets298 266 
Deferred revenue— (1)
Purchased intangible assets(198)(177)
Fixed asset basis difference(4)— 
Right of use assets(61)(48)
Total deferred tax liabilities(263)(226)
Net deferred tax assets$35 $40 
 
Net deferred tax assets are presented in other assets on the consolidated balance sheets. Deferred tax assets for both periods presented include state tax credit carryforwards for which the Company has set up a valuation allowance.
The changes in the unrecognized tax benefits, excluding accrued interest and penalties, were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Unrecognized tax benefits at beginning of the year$51 $13 $7 
Additions for acquired unrecognized tax benefits— — 3 
Additions for tax positions related to prior years8 32 1 
Additions for tax positions related to the current year9 8 2 
Reductions for prior year tax positions related to statute expiration(2)(2)— 
Unrecognized tax benefits at end of the year$66 $51 $13 
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate$66 $48 $9 
Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at January 29, 2021. During the year ended January 29, 2021, we recognized an increase in unrecognized tax benefits of approximately $17 million related to an increase in available tax credits in fiscal year 2021. The Company recognizes net interest and penalties as a component of income tax expense and for the periods presented, there was not a material amount of current interest and penalties recognized.
The Company has filed income tax returns in the U.S. and various state jurisdictions, which may be subject to routine compliance reviews by the Internal Revenue Service ("IRS") and other taxing authorities. While the Company believes it has adequate accruals for uncertain tax positions, the tax authorities may determine that the Company owes taxes in excess of recorded accruals or the recorded accruals may be in excess of the final settlement amounts agreed to by tax authorities. The Company’s tax returns for fiscal years 2016 through 2020 remain subject to examination by the IRS and various other tax jurisdictions. The Company is currently under examination by the IRS for fiscal years 2016 and 2017. The Company is also subject to examination for the returns of Engility from calendar year 2016 through the short pre-acquisition period ended January 13, 2019, although net operating losses from all years are subject to examinations and adjustments for at least three years following the year in which the attribute is used. The Company is responsible for Engility's tax liabilities relating to all open pre and post acquisition years.
As of January 29, 2021, the Company has approximately $383 million of federal loss carryforward, $14 million of state loss carryforwards and approximately $8 million of state credit carryforwards that will begin to expire in fiscal 2026. The valuation allowance of $7 million relates to these state carryforwards.
v3.21.1
Debt Obligations
 12 Months Ended
Jan. 29, 2021
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations:
The Company’s long-term debt as of the periods presented was as follows:
January 29, 2021January 31, 2020
Stated interest rateEffective interest ratePrincipalUnamortized Debt Issuance CostsNetPrincipalUnamortized Debt Issuance CostsNet
(in millions)
Term Loan A Facility due October 2023
1.87 %2.20 %$844 $(6)$838 $904 $(9)$895 
Term Loan B Facility due October 2025
2.00 %2.19 %1,026 (9)1,017 1,037 (11)1,026 
Term Loan B2 Facility due March 20272.37 %2.79 %272 (6)266 — — — 
Senior Notes due April 20284.88 %5.04 %400 (6)394 — — — 
Total long-term debt
$2,542 $(27)$2,515 $1,941 $(20)$1,921 
Less current portion
68 — 68 70 — 70 
Total long-term debt, net of current portion
$2,474 $(27)$2,447 $1,871 $(20)$1,851 
As of January 29, 2021, the Company has a $2.5 billion credit facility (the Credit Facility) consisting of a $400 million secured Revolving Credit Facility due October 2023, an $844 million secured Term Loan A Facility due October 2023, a $1,026 million secured Term Loan B Facility due October 2025, and a $272 million secured Term Loan B2 Facility due March 2027 (together, the Term Loan Facilities). The Revolving Credit Facility is available to the Company through October 2023 and there is no balance outstanding as of January 29, 2021. Any obligations under the Credit Facility are secured by liens on substantially all of the assets of the Company and its subsidiaries. As of January 29, 2021, the Company was in compliance with the covenants under its Credit Facility.
During fiscal 2019, the Company entered into the Third Amended and Restated Credit Agreement (Third Amended Credit Agreement) in anticipation of the acquisition of Engility. In connection with the Third Amended Credit Agreement, the Company increased the capacity of its existing Revolving Credit Facility to $400 million, funded a senior secured Term Loan B Facility due October 2025 in the amount of $1.1 billion, and funded the Term Loan A Facility due October 2023 in the amount of $1.1 billion. The proceeds were used to repay all indebtedness outstanding under the previous credit facility, to partially finance the acquisition of Engility, and for general corporate purposes.
The Company incurred $31 million of debt issue costs associated with the Third Amended Credit Agreement. The Company recognized $5 million in expenses associated with the Third Amended Credit Agreement, which is included in interest expense and includes a $4 million loss on extinguishment of debt. The Company deferred $26 million in financing fees that are amortized to interest expense utilizing the effective interest method.
Borrowings under the Term Loan A Facility due October 2023 amortize quarterly beginning on January 31, 2020 at 1.25% of the original borrowed amount thereunder, with such quarterly amortization payments increasing to 1.875% on January 31, 2021 and then to 2.50% on January 31, 2022. Beginning January 31, 2019, the Term Loan B Facility due October 2025 amortizes quarterly at 0.25% of the original borrowed amount.
Beginning in fiscal year 2020, the scheduled principal repayments for the Term Loan A and Term Loan B facilities may be further reduced or eliminated by annual mandatory prepayments of a portion of SAIC’s Excess Cash Flow (as defined in the Third Amended Credit Agreement). Mandatory principal prepayments are allocated to Term Loan A and Term Loan B facilities on a pro rata basis and reduce the remaining scheduled principal installments for each facility. Voluntary principal prepayments may be applied to either or both loans at the Company’s direction. During fiscal year 2020, the Company made $150 million of voluntary principal prepayments on the Term Loan A Facility due October 2023. During fiscal 2020, the Company borrowed and repaid $100 million under the Revolving Credit Facility.
Borrowings under the Third Amended Credit Agreement bear interest at a variable rate of interest based on LIBOR or a base rate, plus in each case an applicable margin. Applicable margins with respect to borrowings under the Term Loan B Facility due October 2025 are 1.75% for LIBOR loans and 0.75% for base rate loans. Applicable margins with respect to borrowings under the Term Loan A Facility due October 2023 and the Revolving Credit Facility due October 2023 range from 1.25% to 2.00% for LIBOR loans and 0.25% to 1.00% for base rate loans, in each case based on the then applicable Leverage Ratio (as defined in the Third Amended Credit Agreement). The Company also pays a commitment fee with respect to undrawn amounts under the Revolving Credit Facility due October 2023 ranging from 0.20% to 0.35%.
The Third Amended Credit Agreement contains certain restrictive covenants applicable to the Company and its subsidiaries including a requirement to maintain a Senior Secured Leverage Ratio (as defined in the Third Amended Credit Agreement) of not greater than 3.75 to 1.00 until the effectiveness of the acquisition of Engility, not greater than 4.50 to 1.00 upon the effectiveness of the acquisition and for the succeeding six fiscal quarters, and not greater than 4.00 to 1.00 thereafter, unless a Permitted Acquisition (as defined in the Third Amended Credit Agreement) occurs in which case not greater than 4.25 to 1.00 for three consecutive quarters following such a transaction.
On March 13, 2020, the Company entered into the Second Amendment to the Third Amended and Restated Credit Agreement (Second Amendment), which established, among other things, a new $600 million senior secured term loan "B" credit facility commitment (the Term Loan B2 Facility due March 2027) that was funded in full contemporaneously with the closing of the acquisition of Unisys Federal (see Note 4). The Term Loan B2 Facility due March 2027 bears interest at a variable rate of interest based on LIBOR or a base rate, plus, an applicable margin of 2.25% for LIBOR loans and 1.25% for base rate loans. Effective upon funding the Term Loan B2 Facility due March 2027, the applicable margin for the Term Loan B Facility due October 2025 was increased from 1.75% to 1.875% for LIBOR loans and from 0.75% to 0.875% for base rate loans.
Borrowings under the Term Loan B2 Facility due March 2027 amortize quarterly beginning on July 31, 2020 at 0.25% of the original borrowed amount with the remaining unamortized balance due in full upon its maturity, March 13, 2027. The Term Loan B2 Facility due March 2027 is subject to the same mandatory prepayments as the Company’s existing term loans under the Credit Facility and is subject to the same covenants and events of default as the Company's Term Loan B Facility due October 2025. During the twelve months ended January 29, 2021, the Company made voluntary principal prepayments on the Term Loan B2 Facility due March 2027 of $325 million. The Company wrote off debt issuance costs associated with the voluntary principal prepayments of $8 million.
On March 13, 2020, to partially finance the acquisition of Unisys Federal, the Company issued $400 million of unsecured 4.875% Senior Notes due 2028 (the Senior Notes) through a private offering. Interest is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2020, and the principal is due on April 1, 2028.
The Company incurred $27 million of debt issue costs associated with the Second Amendment, the issuance of the Senior Notes, and an undrawn bridge facility that terminated upon the consummation of the acquisition of Unisys Federal. The Company deferred $22 million of financing fees and recognized $5 million of expenses associated with the undrawn bridge facility, which is included in interest expense. Deferred financing fees are amortized to interest expense utilizing the effective interest method.
Maturities of long-term debt as of January 29, 2021 are:
Fiscal Year EndingTotal
(in millions)
2022$68 
2023147 
2024661 
202510 
2026984 
Thereafter672 
Total principal payments$2,542 
As of January 29, 2021 and January 31, 2020, the carrying value of the Company’s outstanding debt obligations approximated its fair value. The fair value of long-term debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s Term Loan Facilities and Senior Notes.Subsequent to the end of fiscal 2021, on March 1, 2021, the Company executed the Third Amendment to the Third Amended and Restated Credit Agreement, which reduces the applicable margin for the Term Loan B2 Facility due March 2027 for LIBOR loans from 2.25% to 1.875% and for base rate loans from 1.25% to 0.875%.
v3.21.1
Derivative Instruments Designated as Cash Flow Hedges
 12 Months Ended
Jan. 29, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Designated as Cash Flow Hedges:
The Company’s derivative instruments designated as cash flow hedges consist of:
Liability Fair Value(1) at
Notional Amount at January 29, 2021Pay Fixed RateReceive Variable RateSettlement and TerminationJanuary 29,
2021		January 31,
2020
(in millions)(in millions)
Interest rate swaps #1$229 2.78 %1-month LIBORMonthly through July 30, 2021$(3)$(6)
Interest rate swaps #2500 3.07 %1-month LIBORMonthly through October 31, 2025(81)(62)
Interest rate swaps #3563 2.49 %1-month LIBORMonthly through October 31, 2023(33)(24)
Total$1,292 $(117)$(92)
 
(1)The fair value of the fixed interest rate swaps liability is included in other accrued liabilities on the consolidated balance sheets.
The Company is party to fixed interest rate swap instruments that are designated and accounted for as cash flow hedges to manage risks associated with interest rate fluctuations on a portion of the Company’s floating rate debt. The counterparties to all swap agreements are financial institutions. See Note 13 for the unrealized change in fair values on cash flow hedges recognized in other comprehensive (loss) income and the amounts reclassified from accumulated other comprehensive (loss) income into earnings for the current and comparative periods presented. The Company estimates that it will reclassify $35 million of unrealized losses from accumulated other comprehensive loss into earnings in the twelve months following January 29, 2021.
On October 31, 2018, the Company exited one of its interest rate swaps and discontinued hedge accounting. The Company received cash proceeds of $6 million upon the early settlement. The $6 million of deferred gains in accumulated other comprehensive loss were reclassified into interest expense over the original contractual term of the interest rate swaps, which had a maturity date of May 7, 2020. For the years ended January 29, 2021, January 31, 2020 and February 1, 2019, the Company reclassified $1 million, $4 million and $1 million, respectively.
v3.21.1
Changes in Accumulated Other Comprehensive Loss by Component
 12 Months Ended
Jan. 29, 2021
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Loss by Component Changes in Accumulated Other Comprehensive Loss by Component:
The following table presents the changes in accumulated other comprehensive loss attributable to the Company’s defined benefit plans and fixed interest rate swap cash flow hedges that are discussed in Note 9 and Note 12, respectively.
 
Unrealized Gains (Losses) on Fixed Interest Rate Swap Cash Flow Hedges(1)
Defined Benefit Obligation Adjustment(2)
Total
(in millions)
Balance at February 2, 2018$4 $— $4 
Other comprehensive loss before reclassifications(23)— (23)
Amounts reclassified from accumulated other comprehensive loss(1)— (1)
Income tax impact6 — 6 
Net other comprehensive loss(18)— (18)
Balance at February 1, 2019$(14)$— $(14)
Other comprehensive loss before reclassifications(76)(6)(82)
Amounts reclassified from accumulated other comprehensive loss4 — 4 
Income tax impact19 1 20 
Net other comprehensive loss(53)(5)(58)
Balance at January 31, 2020$(67)$(5)$(72)
Other comprehensive (loss) income before reclassifications(55)1 (54)
Amounts reclassified from accumulated other comprehensive loss29 1 30 
Income tax impact7 — 7 
Net other comprehensive (loss) income(19)2 (17)
Balance at January 29, 2021$(86)$(3)$(89)
(1)The amount reclassified from accumulated other comprehensive loss is included in interest expense.
(2)The amount reclassified from accumulated other comprehensive loss is included in other (income) expense, net.
v3.21.1
Sale of Receivables
 12 Months Ended
Jan. 29, 2021
Receivables [Abstract]  
Sales of Receivables Sale of Receivables:
On January 21, 2020 the Company entered into a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd. (the Purchaser) for the sale of up to a maximum amount of $200 million of certain designated eligible receivables with the U.S. government. On March 17, 2020, the Company amended the MARPA Facility to increase the aggregate facility limit from $200 million to $300 million. The receivables sold under the MARPA Facility are without recourse for any U.S. government credit risk. The MARPA Facility had an initial term of one year, but effective with the renewal on January 21, 2021 will automatically renew each year unless one of the parties gives prior notice to terminate.
The Company accounts for these receivable transfers under the MARPA Facility as sales under ASC 860, Transfers and Servicing, and removes the sold receivables from its balance sheet. The fair value of the sold receivables approximated their book value due to their short-term nature.
The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of January 29, 2021. Proceeds from the sale of receivables are reflected as cash flows from operating activities on the consolidated statements of cash flows.
During the twelve months ended January 29, 2021, the Company incurred purchase discount fees of $2 million, which are presented in other (income) expense, net on the consolidated statements of income.
MARPA Facility activity consisted of the following:
Year Ended
January 29, 2021
(in millions)
Beginning balance$— 
Sale of receivables3,226 
Cash collections(3,041)
Increase to cash flows from operating activities185 
Cash collected, not remitted to Purchaser(1)
(25)
Remaining sold receivables$160 
(1)    Includes the cash collected on behalf of but not yet remitted to the Purchaser as of January 29, 2021. This balance is included in accounts payable on the consolidated balance sheets as of January 29, 2021.
v3.21.1
Leases
 12 Months Ended
Jan. 29, 2021
Leases [Abstract]  
Operating Leases Leases:
The Company occupies most of its facilities under operating leases. Certain equipment also is leased under short-term or cancelable operating leases.
Effective upon the adoption of ASU 2016-02, the Company recognizes a right of use (ROU) asset and a lease liability upon the commencement of its operating leases. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives.
The Company recognizes lease costs on a straight-line basis over the remaining lease term, except for variable lease payments that are expensed in the period in which the obligation for those payments is incurred.
For its facility leases, the Company combines and accounts for lease and non-lease components together as a single component. The Company does not recognize lease liabilities and ROU assets for facility leases with original terms of 12 months or less. ROU assets are evaluated for impairment as a long-lived asset.
Total operating lease cost is comprised of the following:
Year Ended
January 29, 2021January 31, 2020
(in millions)
Operating lease cost$74 $64 
Variable lease cost21 15 
Short-term lease cost35 4 
Sublease income(2)(3)
Total lease cost$128 $80 
Lease cost and sublease income are included primarily in cost of revenues and SG&A, except for $1 million and $5 million of impairment of right of use assets for fiscal 2021 and fiscal 2020, respectively, that are included in acquisition and integration costs.
Rental expense for facilities and equipment under ASC 840 was $46 million in fiscal 2019.
The Company's ROU assets and lease liabilities consisted of the following:
Balance Sheet line itemJanuary 29, 2021January 31, 2020
(in millions)
Operating lease ROU assetOperating lease right of use assets$236 $190 
Operating lease current liabilityOther accrued liabilities49 34 
Operating lease non-current liabilityOperating lease liabilities205 172 
Total operating lease liabilities$254 $206 
Other supplemental operating lease information consists of the following:
Year Ended
January 29, 2021January 31, 2020
(in millions)
Cash paid for amounts included in the measurement of operating lease liabilities$77 $64 
ROU assets obtained in exchange for new operating lease obligations$110 $79 

Maturities of operating lease liabilities as of January 29, 2021 were as follows:
Fiscal Year EndingTotal
(in millions)
2022$57 
202358 
202447 
202537 
202629 
Thereafter54 
Total minimum lease payments282 
Less: imputed interest(28)
Present value of operating lease liabilities$254 
The weighted-average remaining lease term and the weighted-average discount rate was 5 years and 3.5% as of January 29, 2021, respectively, and 6 years and 4.5% as of January 31, 2020, respectively.
The Company leases IT equipment and hardware to its customers. All of the Company’s lessor arrangements are operating leases. Operating lease revenue is recognized on a straight-line basis over the term of the lease.
During the twelve months ended January 29, 2021, operating lease income was $40 million. Operating lease income is reported as revenue on the consolidated statements of income. As of January 29, 2021, the undiscounted future payments from our sublease arrangements is $12 million, which are expected to be received during fiscal 2022.
v3.21.1
Business Segment Information
 12 Months Ended
Jan. 29, 2021
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information:
The Company is organized as a matrix comprised of three customer facing operating segments supported by a strategy, growth and innovation organization. The three operating segments are responsible for customer relationships, business development and program management, and delivery and execution, while the strategy, growth, and innovation organization manages the development of our offerings, solutions and capabilities. Each of the Company’s three operating segments is focused on providing the Company’s comprehensive technical, engineering and enterprise IT service offerings to one or more agencies of the U.S federal government. The Company's operating segments are aggregated into one reportable segment because they have similar economic characteristics and meet the other aggregation criteria within the accounting standard on segment reporting, including similarities in the nature of the services provided, methods of service delivery, customers served and the regulatory environment in which they operate.
Substantially all of the Company’s revenues were generated by, and tangible long-lived assets owned by, entities located in the United States. As such, financial information by geographic location is not presented.
In each of fiscal 2021, 2020, and 2019 over 95% of our total revenues were attributable to prime contracts with the U.S. government or to subcontracts with other contractors engaged in work for the U.S. government.
v3.21.1
Legal Proceedings and Commitments and Contingencies
 12 Months Ended
Jan. 29, 2021
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings and Commitments and Contingencies Legal Proceedings and Commitments and Contingencies:
Legal Proceedings
The Company is involved in various claims and lawsuits arising in the normal conduct of its business, none of which the Company’s management believes, based on current information, is expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.
AAV Termination for Convenience
On August 27, 2018, the Company received a stop-work order from the United States Marine Corps on the Assault Amphibious Vehicle (AAV) contract and on October 3, 2018 the program was terminated for convenience by the customer. The Company is continuing to negotiate with the Marine Corps to recover costs associated with the termination.
Beginning in fiscal 2018, the Company entered into contracts with various vendors for long-lead time materials that would be necessary to complete the low-rate initial production (LRIP) phase of the program, including portions of the LRIP phase that had not yet been awarded. As a result of the program termination, the Company recognized an inventory provision for long-lead items during fiscal 2019, see Note 1.
Scitor Acquisition
On May 4, 2015, the Company completed the acquisition of Scitor Holdings, Inc. ("Scitor"), a leading global provider of technical services to the U.S. intelligence community and other U.S. government customers. Purchase consideration paid to acquire Scitor was $764 million (net of cash acquired), including $43 million that was deposited to escrow accounts. In August 2015, $3 million was released from escrow to the sellers after finalizing the working capital adjustment and another $13 million was released in September 2016 that was held to secure a portion of the sellers’ indemnification obligations. During the first quarter of fiscal 2019, the Company received a $6 million distribution from escrow to settle a claim, which was recognized as a reduction to selling, general and administrative costs. There is no remaining amount in escrow.
Government Investigations, Audits and Reviews
The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect, in particular, to its role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States. U.S. government agencies, including the DCAA, the Defense Contract Management Agency and others, routinely audit and review a contractor’s performance on government contracts, indirect rates and pricing practices, and compliance with applicable contracting and procurement laws, regulations and standards. They also review the adequacy of the contractor’s compliance with government standards for its business systems. Adverse findings in these investigations, audits, or reviews can lead to criminal, civil or administrative proceedings, and the Company could face disallowance of previously billed costs, penalties, fines, compensatory damages, and suspension or debarment from doing business with governmental agencies. Due to the Company’s reliance on government contracts, adverse findings could also have a material impact on the Company’s business, including its financial position, results of operations and cash flows.
The indirect cost audits by the DCAA of the Company’s business remain open for certain prior years and the current year. Although the Company has recorded contract revenues based on an estimate of costs that the Company believes will be approved on final audit, the Company does not know the outcome of any ongoing or future audits. If future completed audit adjustments exceed the Company’s reserves for potential adjustments, the Company’s profitability could be materially adversely affected.
The Company has recorded reserves for estimated net amounts to be refunded to customers for potential adjustments for indirect cost audits and compliance with CAS. As of January 29, 2021, the Company has recorded a total liability of $46 million, which is presented in other accrued liabilities on the consolidated balance sheets.
Letters of Credit and Surety Bonds
The Company has outstanding obligations relating to letters of credit of $10 million as of January 29, 2021, principally related to guarantees on insurance policies. The Company also has outstanding obligations relating to surety bonds in the amount of $18 million, principally related to performance and payment bonds on the Company’s contracts.
v3.21.1
Business Overview and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 29, 2021
Accounting Policies [Abstract]  
Segment Reporting The Company is organized as a matrix comprised of three customer facing operating segments supported by a strategy, growth and innovation organization. Each of the Company’s three customer facing operating segments is focused on providing the Company’s comprehensive technical, engineering and enterprise IT service offerings to one or more agencies of the U.S federal government. The Company's operating segments are aggregated into one reportable segment for financial reporting purposes, see Note 16.
Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation
References to “financial statements” refer to the consolidated financial statements of the Company, which include the statements of income and comprehensive income, balance sheets, statements of equity and statements of cash flows. These financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP). All intercompany transactions and account balances within the Company have been eliminated. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation.
Use of Estimates
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Significant estimates inherent in the preparation of the financial statements may include, but are not limited to estimated profitability of long-term contracts, income taxes, fair value measurements, fair value of goodwill and other intangible assets, pension and defined benefit plan obligations, and contingencies. Estimates have been prepared by management on the basis of the most current and best available information at the time of estimation and actual results could differ from those estimates.
Reporting Periods
Reporting Periods
The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks. Fiscal 2019 began on February 3, 2018 and ended on February 1, 2019, fiscal 2020 began on February 2, 2019 and ended on January 31, 2020, and fiscal 2021 began on February 1, 2020 and ended on January 29, 2021.
Stock-based Compensation Stock-based CompensationThe Company issues stock-based awards as compensation to employees and directors. Stock-based awards include stock options, vesting stock awards and performance share awards. These awards are accounted for as equity awards. The Company recognizes stock-based compensation expense net of estimated forfeitures on a straight-line basis over the underlying award’s requisite service period, as measured using the award’s grant date fair value. For performance share awards, the Company reassesses the probability of achieving the performance conditions at each reporting period end and adjusts compensation expense based on the number of shares the Company expects to ultimately issue.
Income Taxes
Income Taxes
The Company accounts for income taxes under the asset and liability method of accounting, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted. The provision for federal, state, local and foreign income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes. Recording the provision for income taxes requires management to make significant judgments and estimates for matters for which the ultimate resolution may not become known until the final resolution of an examination by taxing authorities or the statute of limitations lapses. Additionally, recording liabilities for uncertainty in income taxes involves significant judgment in evaluating the Company’s tax positions and developing the best estimate of the taxes ultimately expected to be paid. Tax penalties and interest are included in income tax expense.
The Company records net deferred tax assets to the extent these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. If it is determined that the Company would be able to realize the deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize the deferred income tax assets in the future as currently recorded, an adjustment would be made to the valuation allowance, which would decrease or increase the provision for income taxes.
The Company has also recognized liabilities for uncertainty in income taxes when it is more likely than not that a tax position will not be sustained on examination and settlement with various taxing authorities. Liabilities for uncertainty in income taxes are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Deferred tax assets and liabilities are netted by taxable jurisdiction and classified as noncurrent on the consolidated balance sheets.
Costs Allocated to Contracts
Costs Allocated to Contracts
The Company classifies indirect costs as overhead (included in cost of revenues) or general and administrative expenses in the same manner as such costs are defined in the Company’s Disclosure Statements under U.S. government Cost Accounting Standards (CAS).
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents are comprised of cash in banks and highly liquid instruments, which primarily consist of bank deposits and investments in institutional money market funds. The Company includes outstanding payments within cash and cash equivalents and accounts payable on the consolidated balance sheets and as of January 29, 2021 and January 31, 2020 these amounts were $25 million and $54 million, respectively. The Company does not invest in high yield or high risk securities. The cash in bank accounts at times may exceed federally insured limits.
Restricted cash consists of cash on deposit in rabbi trusts that are contractually restricted from use in operations, but are subject to future claims of creditors. Restricted cash will be used primarily to fund future payment obligations related to deferred compensation plans and our voluntary disability insurance plan in California.
Receivables
Receivables
Receivables include billed and billable receivables, and unbilled receivables. The Company’s receivables are primarily due from the U.S. government, or from prime contractors on which we are subcontractors and the end customer is the U.S. government, and are generally considered collectable from the perspective of the customer’s ability to pay. The Company does not have a material credit risk exposure.
Unbilled receivables, substantially all of which are expected to be billed and collected within one year, are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of a specified event, other than the passage of time. Legal title to the related accumulated costs of contracts in progress generally vests with the U.S. government on the Company’s receipt of progress payments. Progress payments received of $28 million and $33 million offset unbilled receivables as of January 29, 2021 and January 31, 2020, respectively. Contract retentions are billed when contract conditions have been met and may relate to uncompleted indirect cost negotiations with the U.S. government. Based on historical experience, the majority of retention balances are expected to be collected beyond one year. Retention is presented in other assets on the consolidated balance sheets, see Note 3. Write-offs of retention balances have not been significant.
Receivable balances are written-off in the period during which management determines they are uncollectable, and, at that time, such balances are removed from billed receivables and, if previously reserved, from the allowance.
Inventory
Inventory
Inventory is substantially comprised of finished goods inventory purchased for resale to customers, such as tires and lubricants, and is valued at the lower of cost or net realizable value, generally using the average method. The Company evaluates current inventory against historical and planned usage to estimate the appropriate provision for obsolete inventory.
Business Combinations
Business Combinations
The Company records all tangible and intangible assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, which is determined using a cost, market or income approach. The excess amount of the aggregated purchase consideration paid over the fair value of the net of assets acquired and liabilities assumed is recorded as goodwill. Acquisition date fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as measured on the acquisition date.
The valuations are based on information that existed as of the acquisition date. During the measurement period that shall not exceed one year from the acquisition date, the Company may adjust provisional amounts recorded for assets acquired and liabilities assumed to reflect new information that the Company has subsequently obtained regarding facts and circumstances that existed as of the acquisition date.
Acquisition and Integration Costs
Acquisition-related costs that are not part of the purchase price consideration are generally expensed as incurred, except for certain costs that are deferred in connection with the issuance of debt. These costs typically include transaction-related costs, such as finder’s fees, legal, accounting and other professional costs. Integration-related costs typically include strategic consulting services, employee related costs, such as severance and accelerated vesting of assumed stock awards, costs to integrate information technology infrastructure, enterprise planning systems, processes, and other non-recurring integration-related costs. Acquisition and integration costs are presented together as acquisition and integration costs on the consolidated statements of income.
The amounts recognized in acquisition and integration costs on the consolidated statements of income are as follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Acquisition(1)
$20 $2 $31 
Integration(2)(3)
34 46 55 
Total acquisition and integration costs$54 $48 $86 
(1)    Acquisition expenses recognized for the twelve months ended January 29, 2021, and January 31, 2020 are related to the acquisition of Unisys Federal. Acquisition expenses recognized for the twelve months ended February 1, 2019 are related to the acquisition of Engility. See Note 4 for additional information related to the acquisitions.
(2)    Integration expenses for the twelve months ended January 29, 2021, include an $11 million loss associated with the divestiture of non-strategic international operations.
(3)    Includes $6 million, $16 million, and $29 million of restructuring costs for the year ended January 29, 2021, January 31, 2020, and February 1, 2019, respectively, and $1 million and $5 million of impairment of right of use lease assets for fiscal 2021 and fiscal 2020, respectively. See Note 5 for additional information related to restructuring costs and impairments.
Divestiture
On July 3, 2020, in connection with the integration of Engility, the Company sold certain non-strategic international operations for $22 million and recognized a loss on the divestiture of $11 million, including $1 million of transaction costs. The loss is included in acquisition and integration costs on the consolidated statements of income. The Company has received $17 million in cash proceeds through January 29, 2021, with the remaining balance due in installments through October 2021.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for potential impairment annually at the beginning of the fourth quarter, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. There were no impairments during the periods presented.
The goodwill impairment test is performed at the reporting unit level. The Company estimates and compares the fair value of each reporting unit to its respective carrying value including goodwill. The fair value of the Company’s reporting units are determined using either a market approach, income approach, or a combination of both, which involves the use of estimates and assumptions, including projected future operating results and cash flows, the cost of capital, and financial measures derived from observable market data of comparable public companies. If the fair value is less than the carrying value, the amount of impairment expense is equal to the difference between the reporting unit’s fair value and the reporting unit’s carrying value.
Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives. Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Impairment of Long-lived Assets
Impairment of Long-lived Assets
The Company evaluates its long-lived assets for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount of the asset exceeds its estimated future undiscounted cash flows. When the carrying amount of the asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized to reduce the asset’s carrying amount to its estimated fair value based on the present value of its estimated future cash flows.
Commitments and Contingencies
Commitments and Contingencies
Accruals for commitments and loss contingencies are recorded when it is both probable that they will occur and the amounts can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. The Company reviews these accruals quarterly and adjusts the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information.
Pension and Defined Benefit Plans
Pension and Defined Benefit Plans
The Company measures plan assets and benefit obligations as of the month-end that is closest to its fiscal year-end. Accounting and reporting for the Company's pension and defined benefit plans requires the use of assumptions, including but not limited to, a discount rate and an expected return on assets. These assumptions are reviewed at least annually based on reviews of current plan information and consultation with the Company's independent actuary and the plans’ investment advisor. If these assumptions differ materially from actual results, the Company's obligations under the pension and defined benefit plans could also differ materially, potentially requiring the Company to record an additional liability. The Company's pension and defined benefit plan liabilities are developed from actuarial valuations, which are performed each year.
Marketable Securities, Policy Investments in marketable securities consist of equity securities, which are recorded at fair value using observable inputs such as quoted prices in active markets (Level 1). As of January 29, 2021 and January 31, 2020, the fair value of our investments total $27 million and was included in other assets on the consolidated balance sheets. The Company's investments are primarily held in a custodial account, which includes investments to fund our deferred compensation plan liabilities.
Fair Value Measurements
Fair Value Measurements
The Company utilizes fair value measurement guidance prescribed by GAAP to value its financial instruments. The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than the quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).
The carrying amounts of cash and cash equivalents, receivables, accounts payable and other amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The carrying value of the Company’s outstanding debt obligations approximates its fair value. The fair value of long-term debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.
Non-financial assets acquired and liabilities assumed in a business combination were measured at fair value using income, market and cost valuation methodologies. See Note 4. The fair value measurements were estimated using significant inputs that are not observable in the market and thus represent a Level 3 measurement.
Derivative Instruments Designated as Cash Flow Hedges
Derivative Instruments Designated as Cash Flow Hedges
Derivative instruments are recorded on the consolidated balance sheets at fair value. Unrealized gains and losses on derivatives designated as cash flow hedges are reported in other comprehensive income (loss) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions.
The Company’s fixed interest rate swaps are considered over-the-counter derivatives, and fair value is calculated using a standard pricing model for interest rate swaps with contractual terms for maturities, amortization and interest rates. Level 2, or market observable inputs (such as yield and credit curves), are used within the standard pricing models in order to determine fair value. The fair value is an estimate of the amount that the Company would pay or receive as of a measurement date if the agreements were transferred to a third party or canceled. See Note 12 for further discussion on the Company’s derivative instruments designated as cash flow hedges.
Lessee, Leases
The Company occupies most of its facilities under operating leases. Certain equipment also is leased under short-term or cancelable operating leases.
Effective upon the adoption of ASU 2016-02, the Company recognizes a right of use (ROU) asset and a lease liability upon the commencement of its operating leases. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives.
The Company recognizes lease costs on a straight-line basis over the remaining lease term, except for variable lease payments that are expensed in the period in which the obligation for those payments is incurred.
For its facility leases, the Company combines and accounts for lease and non-lease components together as a single component. The Company does not recognize lease liabilities and ROU assets for facility leases with original terms of 12 months or less. ROU assets are evaluated for impairment as a long-lived asset.
Operating Cycle Operating CycleThe Company’s operating cycle may be greater than one year and is measured by the average time intervening between the inception and the completion of contracts.
Research and Development
Research and Development
The Company conducts research and development activities under customer-funded contracts and with company-funded independent research and development (IR&D) funds. IR&D efforts consist of projects involving basic research, applied research, development, and systems and other concept formulation studies. Company-funded IR&D expense is included in selling, general and administrative expenses (SG&A) and was $6 million, $7 million and $5 million in fiscal 2021, 2020 and 2019, respectively. Customer-funded research and development activities performed under customer contracts are charged directly to cost of revenues for those particular contracts.
Accounting Standards Updates
Accounting Standards Updates
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to use a forward-looking model to estimate credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets. The Company adopted ASU 2016-13 in the first quarter of fiscal 2021 using the modified retrospective approach. The adoption did not have a material impact on the Company’s financial statements.
In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software (Subtopic 350-40). During the third quarter of fiscal 2020, the Company early adopted ASU 2018-15 and applied its provisions prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing lease accounting standards (Topic 840). The Company adopted the standard using the optional transition method. Accordingly, the prior periods were not recast, and all prior period amounts disclosed are presented under Accounting Standards Codification (ASC 840). As a result of the adoption of the new standard, on February 2, 2019, the Company recognized approximately $169 million of right of use operating assets and $184 million of operating lease liabilities, of which $140 million was noncurrent. The adoption did not have a material impact on retained earnings, the consolidated statements of income, or the consolidated statements of cash flows.
In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for the defined benefit pension plans and other postretirement plans. The Company early adopted the provisions of the standard in the fourth quarter of fiscal 2019, which did not result in a material impact to its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements and some cost guidance included in the ASC. The Company adopted the standard on February 3, 2018, using the modified retrospective method. Under this method, the Company recognized the cumulative effect of adoption as an adjustment to its opening balance of retained earnings on February 3, 2018. Prior year periods were not retrospectively adjusted. The net impact to opening retained earnings as a result of the adoption was $3 million, attributable primarily to the change in accounting for programs previously accounted for using the efforts-expended method of percentage of completion.
In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities, which simplifies the application of hedge accounting and eliminates the requirement to separately measure and report hedge ineffectiveness. The Company early adopted the provisions of the standard in the first quarter of fiscal 2019. The adoption did not have a material impact on the Company's financial statements.
Other Accounting Standards Updates effective after January 29, 2021 are not expected to have a material effect on the Company’s financial statements.
Revenue Recognition
Revenue Recognition
The Company provides technical, engineering and enterprise IT services under long-term service arrangements primarily with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company also serves a number of state and local governments, foreign governments and U.S. commercial customers.
The Company provides services under various contract types, including firm-fixed price (FFP), time-and-materials (T&M), cost-plus-fixed-fee, cost-plus-award-fee and cost-plus-incentive-fee contracts. Our service arrangements typically involve an annual base period of performance followed by renewal periods that are accounted for as separate contracts upon each exercise.
The Company recognizes revenue when, or as, we satisfy our performance obligations under a contract. A performance obligation is the unit of account for revenue recognition and refers to a promise in a contract to transfer a distinct service or good to the customer. The majority of the Company’s contracts contain a single performance obligation involving a significant integration of various activities that are performed together to deliver a combined service or solution. Performance obligations may be satisfied over time or at a point in time, but the majority of the Company’s performance obligations are satisfied over time. The Company selects the appropriate measure of progress for revenue recognition based on the nature of the performance obligation, contract type and other pertinent contract terms.
Over time performance obligations may involve a series of recurring services, such as network operations and maintenance, operation and program support services, IT outsourcing services, and other IT arrangements where the Company is standing ready to provide support, when-and-if needed. Such performance obligations are satisfied over time because the customer simultaneously receives and consumes the benefits of our performance as services are provided. Alternatively, over time performance obligations may involve the completion of a contract deliverable. Examples include systems integration, network engineering, network design, and engineering and build services. Deliverable-based performance obligations are satisfied over time when the Company’s performance creates or enhances an asset that is controlled by the customer, or when the Company’s performance creates an asset that is customized to the customer’s specifications and the Company has a right to payment, including profit, for work performed to date.
For recurring services performance obligations, the Company measures progress using either a cost input measure (cost-to-cost), a time-elapsed output measure, or the as-invoiced practical expedient. A cost input measure typically is applied to the Company’s cost-reimbursable contracts. Revenue is recognized based on the ratio of costs incurred to total estimated costs at completion. Award or incentive fees are allocated to the distinct periods to which they relate. For fixed-price contracts, a time-elapsed output measure is applied to fixed consideration, such that revenue is recognized ratably over the period of performance. Where fixed-price contracts also provide for reimbursement of certain costs, such as travel or other direct costs, consideration may be attributed only to a distinct subset of time within the performance period. The Company’s time-and-material and fixed price-level of effort contracts generally qualify for the as-invoiced practical expedient. Revenue is recognized in the amount to which the Company has a contractual right to invoice. Contract modifications typically create new enforceable rights and obligations, which are accounted for prospectively. Changes to our estimates of the transaction price are recognized as a cumulative adjustment to revenue.
For deliverable-based performance obligations satisfied over time, the Company recognizes revenue using a cost input measure of progress (cost-to-cost), regardless of contract type. Revenue is recognized based on the ratio of costs incurred to total estimated costs at completion, except for certain contracts for which the costs associated with significant materials or hardware procurements are excluded from the measure of progress and revenue is recognized on an adjusted cost-to-cost basis. Contract modifications typically change currently enforceable rights and obligations and are accounted for as a cumulative adjustment to revenue. Changes to our estimates of transaction price are recognized as a cumulative adjustment to revenue.
For performance obligations in which the Company does not transfer control over time, we recognize revenue at the point-in-time when the customer obtains control of the related asset, usually at the time of shipment or upon delivery. The Company accrues for shipping and handling costs occurring after the point-in-time control transfers to the customer.
Recognizing revenue on long-term contracts involves significant estimates and judgments. The transaction price is the estimated amount of consideration we expect to receive for performance under our contracts. Contract terms may include variable consideration, such as reimbursable costs, award and incentive fees, usage-based fees, service-level penalties, performance bonuses, or other provisions that can either increase or decrease the transaction price. Variable amounts generally are determined upon our achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. When making our estimates, the Company considers the customer, contract terms, the complexity of the work and related risks, the extent of customer discretion, historical experience and the potential of a significant reversal of revenue. The Company includes variable consideration in the transaction price only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.
Estimating costs at completion is complex due to the nature of the services being performed and the length of certain contracts. Contract costs generally include direct costs, such as labor, subcontract costs and materials, and indirect costs identifiable with or allocable to a specific contract. Management must make assumptions regarding the complexity of the work to be performed, the schedule and associated tasks, labor productivity and availability, increases in wages and prices of materials, execution by our subcontractors, overhead cost rates, and other variables. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the Defense Contract Audit Agency ("DCAA").
Contract fulfillment costs are expensed as incurred except for certain costs incurred for transition, set-up or other fulfillment activities, which are capitalized and amortized on a straight-line basis over the expected period of benefit, which generally includes the base contract period of performance and anticipated renewal periods. The Company provides for anticipated losses on contracts with the U.S. government by recording an expense for the total expected loss during the period in which the losses are first determined.
For contracts with multiple performance obligations, the Company allocates transaction price to each performance obligation based on the relative standalone selling price of each distinct performance obligation within the contract. Because the Company typically provides customized services and solutions that are specific to a single customer’s requirements, standalone selling price is most often estimated based on expected costs plus a reasonable profit margin.
Earnings Per Share (EPS)
Earnings per Share (EPS)
Basic EPS is computed by dividing net income attributable to common stockholders by the basic weighted-average number of shares outstanding. Diluted EPS is computed similarly to basic EPS, except the weighted-average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.
Property, Plant and Equipment Property, plant, and equipment are carried at cost net of accumulated depreciation and amortization. Purchases of property, plant, and equipment, as well as costs associated with major renewals and betterments, are capitalized. Maintenance, repairs and minor renewals and betterments are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized.
v3.21.1
Business Overview and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 29, 2021
Accounting Policies [Abstract]  
Schedule of Restricted Cash The following table
provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets for the periods presented:
 January 29, 2021January 31, 2020
 (in millions)
Cash and cash equivalents$171 $188 
Restricted cash included in other current assets5 4 
Restricted cash included in other assets14 10 
Cash, cash equivalents and restricted cash$190 $202 
Schedule of Cash and Cash Equivalents The following table
provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets for the periods presented:
 January 29, 2021January 31, 2020
 (in millions)
Cash and cash equivalents$171 $188 
Restricted cash included in other current assets5 4 
Restricted cash included in other assets14 10 
Cash, cash equivalents and restricted cash$190 $202 
Business Combination, Separately Recognized Transactions
The amounts recognized in acquisition and integration costs on the consolidated statements of income are as follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Acquisition(1)
$20 $2 $31 
Integration(2)(3)
34 46 55 
Total acquisition and integration costs$54 $48 $86 
(1)    Acquisition expenses recognized for the twelve months ended January 29, 2021, and January 31, 2020 are related to the acquisition of Unisys Federal. Acquisition expenses recognized for the twelve months ended February 1, 2019 are related to the acquisition of Engility. See Note 4 for additional information related to the acquisitions.
(2)    Integration expenses for the twelve months ended January 29, 2021, include an $11 million loss associated with the divestiture of non-strategic international operations.
(3)    Includes $6 million, $16 million, and $29 million of restructuring costs for the year ended January 29, 2021, January 31, 2020, and February 1, 2019, respectively, and $1 million and $5 million of impairment of right of use lease assets for fiscal 2021 and fiscal 2020, respectively. See Note 5 for additional information related to restructuring costs and impairments.
The purchase consideration for the acquisition of Engility was as follows:
(in millions)
Common stock issued to Engility shareholders(1)
$1,086 
Converted vesting stock awards assumed(2)
22 
Cash consideration paid to extinguish Engility outstanding debt1,052 
Purchase price$2,160 
(1)    Represents approximately 16.8 million new shares of SAIC common stock issued to Engility shareholders prior to the market opening on January 14, 2019, using the SAIC share price of $65.03 at the close of business on January 11, 2019.
(2)    Represents the fair value of the converted vesting stock awards assumed attributable to pre-acquisition service. See Note 8.
v3.21.1
Earnings Per Share, Share Repurchases and Dividends (Tables)
 12 Months Ended
Jan. 29, 2021
Earnings Per Share [Abstract]  
Reconciliation of Weighted Average Number of Shares Outstanding Used to Compute Basic and Diluted EPS
A reconciliation of the weighted-average number of shares outstanding used to compute basic and diluted EPS was:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Basic weighted-average number of shares outstanding58.1 58.4 43.4 
Dilutive common share equivalents - stock options and other stock-based awards0.6 0.6 0.7 
Diluted weighted-average number of shares outstanding58.7 59.0 44.1 
Stock-Based Awards Excluded from Weighted Average Number of Shares Outstanding Used to Compute Diluted EPS
The following stock-based awards were excluded from the weighted-average number of shares outstanding used to compute diluted EPS:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Antidilutive stock options excluded0.3 0.3 0.2 
v3.21.1
Revenues (Tables)
 12 Months Ended
Jan. 29, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Disaggregated revenues by customer was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Department of Defense$3,292 $3,330 $2,805 
Other federal government agencies3,611 2,920 1,707 
Commercial, state and local153 129 147 
Total$7,056 $6,379 $4,659 
Disaggregated revenues by contract-type was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Cost reimbursement$3,773 $3,644 $2,306 
Time and materials (T&M)1,557 1,280 1,086 
Firm-fixed price (FFP)1,726 1,455 1,267 
Total$7,056 $6,379 $4,659 
Disaggregated revenues by prime vs. subcontractor was as follows:
Year Ended
January 29, 2021January 31, 2020February 1, 2019
(in millions)
Prime contractor to federal government$6,337 $5,662 $4,178 
Subcontractor to federal government566 588 334 
Other153 129 147 
Total$7,056 $6,379 $4,659 
Contract with Customer, Asset and Liability
Aggregate changes in these estimates recognized in operating income were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions, except per share amounts)
Favorable adjustments$41 $39 $30 
Unfavorable adjustments(32)(17)(13)
Net favorable adjustments9 22 17 
Income tax effect(2)(4)(4)
Net favorable adjustments, after tax7 18 13 
Basic EPS impact$0.12 $0.31 $0.29 
Diluted EPS impact$0.12 $0.31 $0.29 
Contract balances for the periods presented were as follows:
Balance Sheet line itemJanuary 29,
2021		January 31,
2020
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$600 $720 
Contract assets - unbillable receivablesReceivables, net362 379 
Contract assets - contract retentionsOther assets18 17 
Contract liabilities - currentOther accrued liabilities82 41 
Contract liabilities - non-currentOther long-term liabilities$17 $10 
(1)    Net of allowance of $3 million and $4 million as of January 29, 2021 and January 31, 2020, respectively.
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure
Deferred costs for the periods presented were as follows:
 Balance Sheet line itemJanuary 29,
2021		January 31,
2020
 (in millions)
Pre-contract costsOther current assets$2 $3 
Fulfillment costs - non-currentOther assets$15 $12 
v3.21.1
Acquisitions (Tables)
 12 Months Ended
Jan. 29, 2021
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The Company has completed the purchase accounting valuation for this transaction and recorded final purchase accounting entries as follows:
(in millions)
Receivables$114 
Prepaid expenses15 
Goodwill654 
Intangible assets574 
Property, plant, and equipment4 
Operating lease right of use assets43 
Other assets7 
Total assets acquired1,411 
Accounts payable42 
Accrued vacation7 
Other accrued liabilities62 
Operating lease liabilities30 
Other long-term liabilities68 
Total liabilities assumed209 
Net assets acquired$1,202 
Amount of tax deductible goodwill$593 
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]
The following table summarizes the fair value of intangible assets and the related weighted-average useful lives as of the acquisition date:
AmountWeighted-Average Amortization Period
(in millions)(in years)
Customer relationships$520 13
Backlog47 1
Developed technology7 1
Total intangible assets$574 12
Schedule of Unaudited Pro Forma Financial Information
The following unaudited pro forma financial information presents the combined results of operations for Unisys Federal and the Company for the twelve months ended January 29, 2021 and January 31, 2020, respectively:
Year Ended
January 29,
2021		January 31,
2020
(in millions)
Revenues$7,146 $7,105 
Net income attributable to common stockholders$258 $193 
The following unaudited pro forma financial information presents the combined results of operations for Engility and the Company for the year ended February 1, 2019:
Year Ended
February 1, 2019
(in millions)
Revenues$6,426 
Net income attributable to common stockholders$260 
Business Combination, Separately Recognized Transactions
The amounts recognized in acquisition and integration costs on the consolidated statements of income are as follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Acquisition(1)
$20 $2 $31 
Integration(2)(3)
34 46 55 
Total acquisition and integration costs$54 $48 $86 
(1)    Acquisition expenses recognized for the twelve months ended January 29, 2021, and January 31, 2020 are related to the acquisition of Unisys Federal. Acquisition expenses recognized for the twelve months ended February 1, 2019 are related to the acquisition of Engility. See Note 4 for additional information related to the acquisitions.
(2)    Integration expenses for the twelve months ended January 29, 2021, include an $11 million loss associated with the divestiture of non-strategic international operations.
(3)    Includes $6 million, $16 million, and $29 million of restructuring costs for the year ended January 29, 2021, January 31, 2020, and February 1, 2019, respectively, and $1 million and $5 million of impairment of right of use lease assets for fiscal 2021 and fiscal 2020, respectively. See Note 5 for additional information related to restructuring costs and impairments.
The purchase consideration for the acquisition of Engility was as follows:
(in millions)
Common stock issued to Engility shareholders(1)
$1,086 
Converted vesting stock awards assumed(2)
22 
Cash consideration paid to extinguish Engility outstanding debt1,052 
Purchase price$2,160 
(1)    Represents approximately 16.8 million new shares of SAIC common stock issued to Engility shareholders prior to the market opening on January 14, 2019, using the SAIC share price of $65.03 at the close of business on January 11, 2019.
(2)    Represents the fair value of the converted vesting stock awards assumed attributable to pre-acquisition service. See Note 8.
v3.21.1
Restructuring and Impairment (Tables)
 12 Months Ended
Jan. 29, 2021
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
Restructuring and impairment costs recognized were as follows:
Year Ended
Statement of Income line itemJanuary 29, 2021January 31, 2020February 1, 2019
(in millions)
2021 Restructuring:
Severance and other employee costsSG&A$4 $— $— 
2019 Restructuring:
Severance and other employee costsAcquisition and integration costs2 9 29 
Other associated costsAcquisition and integration costs4 7 — 
Total restructuring costs10 16 29 
Impairment of right of use lease assetsSG&A1 — — 
Impairment of right of use lease assetsAcquisition and integration costs1 5 — 
Total restructuring costs and impairment$12 $21 $29 
v3.21.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jan. 29, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
Intangible assets, all of which were finite-lived, consisted of the following:
January 29, 2021January 31, 2020
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in millions)
Customer relationships$1,371 $(241)$1,130 $851 $(142)$709 
Backlog47 (41)6 — — — 
Developed technology9 (7)2 2 — 2 
Total intangible assets$1,427 $(289)$1,138 $853 $(142)$711 
Schedule of Estimated Annual Amortization Expense Related To Intangible Assets
As of January 29, 2021, the estimated future annual amortization expense related to intangible assets is as follows:
Fiscal Year Ending(in millions)
2022$110 
2023106 
2024103 
2025103 
2026103 
Thereafter613 
Total$1,138 
v3.21.1
Property, Plant, and Equipment (Tables)
 12 Months Ended
Jan. 29, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Depreciation and amortization is recognized using the methods and estimated useful lives as follows: 
Depreciation or
amortization method
Estimated useful lives (in years)January 29,
2021		January 31,
2020
(in millions)
Computer equipmentStraight-line or
declining balance
3-10
$90 $90 
Capitalized software and software licensesStraight-line or
declining balance
3-10
45 68 
Leasehold improvementsStraight-lineShorter of lease term or 1092 80 
Office furniture and fixturesStraight-line or
declining balance
3-10
17 19 
Buildings and improvementsStraight-line407 7 
Construction in process14 7 
Land1 1 
Property, plant, and equipment266 272 
Accumulated depreciation and amortization(158)(181)
Property, plant, and equipment, net$108 $91 
v3.21.1
Stock-Based Compensation (Tables)
 12 Months Ended
Jan. 29, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation and Related Tax Benefits
Stock-based compensation expense and related tax benefits recognized under the Plans were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Stock-based compensation expense:
Stock options$3 $4 $3 
Vesting stock awards32 29 37 
Performance share awards7 4 5 
Total stock-based compensation expense$42 $37 $45 
Tax benefits recognized from stock-based compensation$14 $13 $20 
Stock Option Activity
Stock option activity for the year ended January 29, 2021 was:
Shares of stocks under stock optionsWeighted-average exercise priceWeighted-average remaining contractual termAggregate intrinsic value
(in millions)(in years)(in millions)
Outstanding at January 31, 20200.7 $60.47 3.5$20 
Options granted0.2 74.57 
Options forfeited or expired— — 
Options exercised(0.2)40.82 
Outstanding at January 29, 20210.7 $68.57 3.9$20 
Options exercisable at January 29, 20210.5 $64.91 2.8$14 
Vested and expected to vest as of January 29, 20210.7 $68.48 3.8$19 
Schedule of Share-Based Compensation Activity Related to Exercise of Stock Options
The following table summarizes activity related to exercises of stock options:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Cash received from exercises of stock options$— $— $— 
Stock exchanged at fair value upon exercises of stock options$1 $2 $1 
Tax benefits from exercises of stock options$2 $3 $7 
Total intrinsic value of options exercised$8 $16 $24 
Weighted Average Grant Date Fair Value and Assumptions Used to Determine Fair Value of Stock Options Granted
The weighted-average grant date fair value and assumptions used to determine the fair value of stock options granted for the periods presented were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
Weighted-average grant-date fair value$17.54 $16.88 $19.48 
Expected term (in years)3.84.24.0
Expected volatility35.5 %30.0 %29.0 %
Risk-free interest rate0.3 %2.2 %2.5 %
Dividend yield1.8 %2.0 %1.6 %
Vesting Stock Award Activity
Vesting stock award activity for the year ended January 29, 2021 was:
Shares of stock under stock awardsWeighted-average grant date fair value
(in millions)
Unvested January 31, 20200.9 $74.94 
Awards granted0.6 76.41 
Awards forfeited(0.1)75.34 
Awards vested(0.4)72.64 
Unvested January 29, 20211.0 $76.73 
Performance Share Award Activity
Performance share award activity for the year ended January 29, 2021 was:
Shares of stock under performance sharesWeighted-average grant date fair value
(in millions)
Unvested performance shares at January 31, 20200.1 $81.60 
Performance shares granted0.1 74.40 
Performance shares forfeited— — 
Performance shares vested— — 
Performance shares adjustment— — 
Unvested performance shares at January 29, 20210.2 $76.54 
v3.21.1
Retirement Plans (Tables)
 12 Months Ended
Jan. 29, 2021
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs
The net periodic benefit cost was as follows:
Pension PlanRHRA Benefit Plan
Year Ended
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Interest cost on projected benefit obligation$2 $3 $— $1 
Expected return on plan assets(3)(3)— — 
Settlement cost1 — — — 
Net periodic benefit cost$— $— $— $1 
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The projected benefit obligation, fair value of plan assets, and funded status for each plan are as follows:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year$76 $71 $17 $15 
Interest cost2 3 — 1 
Benefits paid(5)(5)(1)(1)
Actuarial loss (gain)3 7 (2)2 
Settlements(6)— — — 
Benefit obligation at end of year$70 $76 $14 $17 
Change in plan assets:
Fair value of plan assets at beginning of year53 52 — — 
Actual return on plan assets5 6 — — 
Employer contributions8 — 1 1 
Benefits paid(5)(5)(1)(1)
Settlements(6)— — — 
Fair value of plan assets at end of year$55 $53 $— $— 
Unfunded status$15 $23 $14 $17 
Schedule of Amounts Recognized in Balance Sheet
Amounts recognized in the consolidated balance sheets consist of:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Other accrued liabilities$— $— $1 $1 
Other long-term liabilities15 23 13 16 
Net amount recognized$15 $23 $14 $17 
Schedule of Assumptions Used
The following assumptions were used to determine the benefit obligations and net periodic benefit costs:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020February 1, 2019January 29, 2021January 31, 2020February 1, 2019
Discount rate2.47 %2.87 %4.06 %1.86 %2.56 %3.82 %
Interest cost effective rate2.47 %3.70 %N/A2.27 %3.58 %N/A
Expected rate of return on assets5.50 %5.50 %N/AN/AN/AN/A
Schedule of Allocation of Plan Assets
The fair value measurement of plan assets by category is as follows:
January 29, 2021January 31, 2020
Asset CategoryFair Value Hierarchy(in millions)
Mutual funds
EquityLevel 1$37 $34 
Fixed incomeLevel 18 9 
Guaranteed deposit accountLevel 33 2 
Subtotal48 45 
Collective trust - fixed income(1)
Measured at NAV7 8 
Total$55 $53 
(1)Collective trusts are measured at fair value using net asset value (NAV) as a practical expedient and have not been categorized in the fair value hierarchy.
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
A reconciliation of the beginning and ending balances of the Guaranteed Deposit Account (GDA) is as follows:
Guaranteed Deposit Account
(in millions)
Balance at February 1, 2019
$3 
Purchases13 
Sales(14)
Balance at January 31, 2020
2 
Purchases12 
Sales(11)
Balance at January 29, 2021
$3 
Schedule of Expected Benefit Payments
The following table sets forth the expected timing of benefit payments by fiscal year:
Fiscal YearPension PlanRHRA Benefit PlanTotal
(in millions)
2022$5 $1 $6 
20235 1 6 
20245 1 6 
20255 1 6 
20265 1 6 
Five subsequent fiscal years$22 $6 $28 
v3.21.1
Income Taxes (Tables)
 12 Months Ended
Jan. 29, 2021
Income Tax Disclosure [Abstract]  
Provision for Income Taxes The provision for income taxes for each of the periods presented include the following:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Current:
Federal$34 $10 $4 
State14 3 10 
Deferred:
Federal10 32 17 
State2 12 2 
Total$60 $57 $33 
Reconciliation of Provision for Income Taxes Computed by Statutory Federal Income Tax Rate
A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for each of the periods presented follows:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Amount computed at the statutory federal income tax rate$57 $60 $36 
State income taxes, net of federal tax benefit13 14 9 
Research and development and other federal credits(8)(11)(8)
Non-deductible compensation3 2 3 
Non-deductible acquisition costs— — 3 
Excess tax benefits for stock-based compensation(3)(4)(9)
Other(2)(4)(1)
Total$60 $57 $33 
Effective income tax rate22.1 %20.0 %19.4 %
Deferred Tax Assets and Liabilities Deferred tax assets (liabilities) were comprised of:
January 29,
2021		January 31,
2020
(in millions)
Accrued vacation and bonuses$33 $21 
Accrued liabilities16 20 
Deferred compensation20 23 
Stock awards11 11 
Net operating loss and other carryforwards105 117 
Fixed asset basis differences— 2 
Deferred revenue14 — 
Lease liability65 54 
Payroll tax deferral11 — 
Accumulated other comprehensive loss30 23 
Valuation allowance(7)(5)
Total deferred tax assets298 266 
Deferred revenue— (1)
Purchased intangible assets(198)(177)
Fixed asset basis difference(4)— 
Right of use assets(61)(48)
Total deferred tax liabilities(263)(226)
Net deferred tax assets$35 $40 
Changes in Unrecognized Tax Benefits
The changes in the unrecognized tax benefits, excluding accrued interest and penalties, were:
Year Ended
January 29,
2021		January 31,
2020		February 1,
2019
(in millions)
Unrecognized tax benefits at beginning of the year$51 $13 $7 
Additions for acquired unrecognized tax benefits— — 3 
Additions for tax positions related to prior years8 32 1 
Additions for tax positions related to the current year9 8 2 
Reductions for prior year tax positions related to statute expiration(2)(2)— 
Unrecognized tax benefits at end of the year$66 $51 $13 
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate$66 $48 $9 
v3.21.1
Debt Obligations (Tables)
 12 Months Ended
Jan. 29, 2021
Debt Disclosure [Abstract]  
Long Term Debt
The Company’s long-term debt as of the periods presented was as follows:
January 29, 2021January 31, 2020
Stated interest rateEffective interest ratePrincipalUnamortized Debt Issuance CostsNetPrincipalUnamortized Debt Issuance CostsNet
(in millions)
Term Loan A Facility due October 2023
1.87 %2.20 %$844 $(6)$838 $904 $(9)$895 
Term Loan B Facility due October 2025
2.00 %2.19 %1,026 (9)1,017 1,037 (11)1,026 
Term Loan B2 Facility due March 20272.37 %2.79 %272 (6)266 — — — 
Senior Notes due April 20284.88 %5.04 %400 (6)394 — — — 
Total long-term debt
$2,542 $(27)$2,515 $1,941 $(20)$1,921 
Less current portion
68 — 68 70 — 70 
Total long-term debt, net of current portion
$2,474 $(27)$2,447 $1,871 $(20)$1,851 
Maturities of Long-term Debt
Maturities of long-term debt as of January 29, 2021 are:
Fiscal Year EndingTotal
(in millions)
2022$68 
2023147 
2024661 
202510 
2026984 
Thereafter672 
Total principal payments$2,542 
v3.21.1
Derivative Instruments Designated as Cash Flow Hedges (Tables)
 12 Months Ended
Jan. 29, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Designated as Cash Flow Hedges
The Company’s derivative instruments designated as cash flow hedges consist of:
Liability Fair Value(1) at
Notional Amount at January 29, 2021Pay Fixed RateReceive Variable RateSettlement and TerminationJanuary 29,
2021		January 31,
2020
(in millions)(in millions)
Interest rate swaps #1$229 2.78 %1-month LIBORMonthly through July 30, 2021$(3)$(6)
Interest rate swaps #2500 3.07 %1-month LIBORMonthly through October 31, 2025(81)(62)
Interest rate swaps #3563 2.49 %1-month LIBORMonthly through October 31, 2023(33)(24)
Total$1,292 $(117)$(92)
 
(1)The fair value of the fixed interest rate swaps liability is included in other accrued liabilities on the consolidated balance sheets.
v3.21.1
Changes in Accumulated Other Comprehensive Loss by Component (Tables)
 12 Months Ended
Jan. 29, 2021
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income Attributable to the Company's Fixed Interest Rate Swap Cash Flow Hedges
The following table presents the changes in accumulated other comprehensive loss attributable to the Company’s defined benefit plans and fixed interest rate swap cash flow hedges that are discussed in Note 9 and Note 12, respectively.
 
Unrealized Gains (Losses) on Fixed Interest Rate Swap Cash Flow Hedges(1)
Defined Benefit Obligation Adjustment(2)
Total
(in millions)
Balance at February 2, 2018$4 $— $4 
Other comprehensive loss before reclassifications(23)— (23)
Amounts reclassified from accumulated other comprehensive loss(1)— (1)
Income tax impact6 — 6 
Net other comprehensive loss(18)— (18)
Balance at February 1, 2019$(14)$— $(14)
Other comprehensive loss before reclassifications(76)(6)(82)
Amounts reclassified from accumulated other comprehensive loss4 — 4 
Income tax impact19 1 20 
Net other comprehensive loss(53)(5)(58)
Balance at January 31, 2020$(67)$(5)$(72)
Other comprehensive (loss) income before reclassifications(55)1 (54)
Amounts reclassified from accumulated other comprehensive loss29 1 30 
Income tax impact7 — 7 
Net other comprehensive (loss) income(19)2 (17)
Balance at January 29, 2021$(86)$(3)$(89)
(1)The amount reclassified from accumulated other comprehensive loss is included in interest expense.
(2)The amount reclassified from accumulated other comprehensive loss is included in other (income) expense, net.
v3.21.1
Sale of Receivables (Tables)
 12 Months Ended
Jan. 29, 2021
Receivables [Abstract]  
Transfers Of Financial Assets Accounted For As Sales, Marpa [Table Text Block]
MARPA Facility activity consisted of the following:
Year Ended
January 29, 2021
(in millions)
Beginning balance$— 
Sale of receivables3,226 
Cash collections(3,041)
Increase to cash flows from operating activities185 
Cash collected, not remitted to Purchaser(1)
(25)
Remaining sold receivables$160 
(1)    Includes the cash collected on behalf of but not yet remitted to the Purchaser as of January 29, 2021. This balance is included in accounts payable on the consolidated balance sheets as of January 29, 2021.
v3.21.1
Leases (Tables)
 12 Months Ended
Jan. 29, 2021
Leases [Abstract]  
Supplemental Balance Sheet Disclosures [Text Block]
The Company's ROU assets and lease liabilities consisted of the following:
Balance Sheet line itemJanuary 29, 2021January 31, 2020
(in millions)
Operating lease ROU assetOperating lease right of use assets$236 $190 
Operating lease current liabilityOther accrued liabilities49 34 
Operating lease non-current liabilityOperating lease liabilities205 172 
Total operating lease liabilities$254 $206 
Lease, Cost [Table Text Block]
Total operating lease cost is comprised of the following:
Year Ended
January 29, 2021January 31, 2020
(in millions)
Operating lease cost$74 $64 
Variable lease cost21 15 
Short-term lease cost35 4 
Sublease income(2)(3)
Total lease cost$128 $80 
OtherSupplementalLeaseInformation [Table Text Block]
Other supplemental operating lease information consists of the following:
Year Ended
January 29, 2021January 31, 2020
(in millions)
Cash paid for amounts included in the measurement of operating lease liabilities$77 $64 
ROU assets obtained in exchange for new operating lease obligations$110 $79 
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
Maturities of operating lease liabilities as of January 29, 2021 were as follows:
Fiscal Year EndingTotal
(in millions)
2022$57 
202358 
202447 
202537 
202629 
Thereafter54 
Total minimum lease payments282 
Less: imputed interest(28)
Present value of operating lease liabilities$254 
v3.21.1
Business Overview and Summary of Significant Accounting Policies - Narrative (Details)
 7 Months Ended 12 Months Ended
Jul. 03, 2020
USD ($)
Jan. 29, 2021
USD ($)
Jan. 29, 2021
USD ($)
segment
Jan. 31, 2020
USD ($)
Feb. 01, 2019
USD ($)
Feb. 02, 2019
USD ($)
Feb. 03, 2018
USD ($)
Significant Accounting Policies [Line Items]              
Revenues     $ 7,056,000,000 $ 6,379,000,000 $ 4,659,000,000    
Receivables, net   $ 962,000,000 $ 962,000,000 1,099,000,000      
Number of operating segments | segment     3        
Number of reportable segments | segment     1        
Outstanding payments   25,000,000 $ 25,000,000 54,000,000      
Unbilled receivables, maximum expected period for billing and collection     1 year        
Amount of progress payments received are offset against unbilled receivables   28,000,000 $ 28,000,000 33,000,000      
Provisions for inventory and deferred contract costs       26,000,000      
Impairment of goodwill and intangible assets     0 0      
Internal research and development costs included in selling, general and administrative expenses     6,000,000 7,000,000 5,000,000    
Retained earnings   627,000,000 627,000,000 506,000,000      
Other current assets   22,000,000 22,000,000 19,000,000      
Excess tax benefits from share-based award payments     3,000,000 4,000,000 9,000,000    
Operating Lease, Liability, Noncurrent   205,000,000 205,000,000 172,000,000   $ 140,000,000  
Operating lease right of use assets   236,000,000 236,000,000 190,000,000   169,000,000  
Operating Lease, Liability   254,000,000 254,000,000 206,000,000   $ 184,000,000  
Marketable Securities, Noncurrent   27,000,000 27,000,000 27,000,000      
Proceeds from Divestiture of Businesses     17,000,000 0 0    
Loss on Disposition of Business     $ 10,000,000 $ 0 $ 0    
Non-Strategic International Operations              
Significant Accounting Policies [Line Items]              
Proceeds from Divestiture of Businesses $ 22,000,000            
Loss on Disposition of Business 11,000,000            
Divestiture of Business, Transaction Costs $ 1,000,000            
Cash Proceeds From Divestiture Of Businesses   $ 17,000,000          
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09, Revenue Recognition, Adjusted Cost-To-Cost Basis              
Significant Accounting Policies [Line Items]              
Retained earnings             $ 3,000,000
Forfeiture Support Associates J.V.              
Significant Accounting Policies [Line Items]              
Ownership percentage   50.10% 50.10%        
v3.21.1
Business Overview and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Feb. 02, 2018
Accounting Policies [Abstract]        
Cash and cash equivalents $ 171 $ 188    
Restricted cash included in other current assets 5 4    
Restricted cash included in other assets 14 10    
Cash, cash equivalents and restricted cash $ 190 $ 202 $ 246 $ 152
v3.21.1
Business Overview and Summary of Significant Accounting Policies - Schedule of Acquisition and Integration Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jul. 03, 2020
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Business Acquisition [Line Items]        
Acquisition related costs   $ 20 $ 2 $ 31
Integration related costs   34 46 55
Acquisition and integration costs   54 48 86
Loss on Disposition of Business   10 0 0
Restructuring Costs   10 16 29
Operating Lease, Right-of-Use Asset, Impairment        
Business Acquisition [Line Items]        
Integration related costs   1 5  
Restructuring Charges        
Business Acquisition [Line Items]        
Integration related costs   $ 6 $ 16 $ 29
Non-Strategic International Operations        
Business Acquisition [Line Items]        
Loss on Disposition of Business $ 11      
v3.21.1
Earnings Per Share, Share Repurchases and Dividends - Schedule of Weighted Average Shares Outstanding (Details) - shares
shares in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Computation Of Earnings Per Share [Line Items]      
Basic weighted-average number of shares outstanding (in shares) 58.1 58.4 43.4
Dilutive common share equivalents - stock options and other stock-based awards (in shares) 0.6 0.6 0.7
Diluted weighted-average number of shares outstanding (in shares) 58.7 59.0 44.1
Stock options      
Computation Of Earnings Per Share [Line Items]      
Antidilutive stock options excluded (in shares) 0.3 0.3 0.2
v3.21.1
Earnings Per Share, Share Repurchases and Dividends - Narrative (Details) - $ / shares
shares in Millions
 12 Months Ended
Mar. 23, 2021
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Dec. 15, 2016
Computation Of Earnings Per Share [Line Items]          
Cash dividends paid per share (in dollars per share)   $ 1.48 $ 1.48 $ 1.24  
Cash dividends declared per share (in dollars per share)   $ 0.37 $ 0.37 $ 0.31  
Subsequent Event          
Computation Of Earnings Per Share [Line Items]          
Cash dividends declared per share (in dollars per share) $ 0.37        
Share Repurchase Plan          
Computation Of Earnings Per Share [Line Items]          
Increase in number of shares authorized to be repurchased under the repurchase plan (in shares)         4.6
Shares repurchased under the repurchase plan (in shares)   12.0      
Share Repurchase Plan | Maximum          
Computation Of Earnings Per Share [Line Items]          
Shares authorized to be repurchased under the repurchase plan (in shares)   16.4      
v3.21.1
Revenues - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Disaggregation of Revenue [Line Items]      
Contract with customer, performance obligation satisfied in previous period $ 21 $ 23 $ 8
Contract with customer, liability, revenue recognized 30 23  
Revenue, remaining performance obligation, amount 4,900    
Pre-contract costs      
Disaggregation of Revenue [Line Items]      
Capitalized contract cost, amortization 8 3  
Fulfillment costs - current      
Disaggregation of Revenue [Line Items]      
Capitalized contract cost, amortization $ 4 $ 3  
v3.21.1
Revenues - Change in Estimates on Contracts (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Revenue from Contract with Customer [Abstract]      
Favorable adjustments $ 41 $ 39 $ 30
Unfavorable adjustments (32) (17) (13)
Net favorable adjustments 9 22 17
Income tax effect (2) (4) (4)
Net favorable adjustments, after tax $ 7 $ 18 $ 13
Basic EPS impact (in dollars per share) $ 0.12 $ 0.31 $ 0.29
Diluted EPS impact (in dollars per share) $ 0.12 $ 0.31 $ 0.29
v3.21.1
Revenues - Disaggregation of Revenues (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Disaggregation of Revenue [Line Items]      
Revenues $ 7,056 $ 6,379 $ 4,659
Prime contractor to federal government      
Disaggregation of Revenue [Line Items]      
Revenues 6,337 5,662 4,178
Subcontractor to federal government      
Disaggregation of Revenue [Line Items]      
Revenues 566 588 334
Other      
Disaggregation of Revenue [Line Items]      
Revenues 153 129 147
Cost reimbursement      
Disaggregation of Revenue [Line Items]      
Revenues 3,773 3,644 2,306
Time and materials (T&M)      
Disaggregation of Revenue [Line Items]      
Revenues 1,557 1,280 1,086
Firm-fixed price (FFP)      
Disaggregation of Revenue [Line Items]      
Revenues 1,726 1,455 1,267
Department of Defense      
Disaggregation of Revenue [Line Items]      
Revenues 3,292 3,330 2,805
Other federal government agencies      
Disaggregation of Revenue [Line Items]      
Revenues 3,611 2,920 1,707
Commercial, state and local      
Disaggregation of Revenue [Line Items]      
Revenues $ 153 $ 129 $ 147
v3.21.1
Revenues - Contract Balances (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Disaggregation of Revenue [Line Items]    
Allowance for doubtful accounts receivable $ 3 $ 4
Receivables, net    
Disaggregation of Revenue [Line Items]    
Billed and billable receivables, net 600 720
Contract assets 362 379
Other assets    
Disaggregation of Revenue [Line Items]    
Contract assets 18 17
Other accrued liabilities    
Disaggregation of Revenue [Line Items]    
Contract liabilities 82 41
Other long-term liabilities    
Disaggregation of Revenue [Line Items]    
Contract liabilities $ 17 $ 10
v3.21.1
Revenues - Deferred Costs (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Other current assets | Pre-contract costs    
Capitalized Contract Cost [Line Items]    
Capitalized contract cost, net $ 2 $ 3
Other assets | Fulfillment costs - non-current    
Capitalized Contract Cost [Line Items]    
Capitalized contract cost, net $ 15 $ 12
v3.21.1
Revenues - Performance Obligation (Details)
Jan. 29, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-30  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 85.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-29  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 90.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
v3.21.1
Acquisitions (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 13, 2020
Jan. 14, 2019
Jan. 29, 2021
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Business Acquisition [Line Items]            
Revenues           $ 98
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual           19
Deferred financing fees       $ 27 $ 0 26
Goodwill, Period Increase (Decrease)       648    
Acquisition related costs       20 2 31
Amortization expense related to intangible assets       147 95 24
2022     $ 110 110    
2023     106 106    
2024     103 103    
2025     103 103    
Payments of stock issuance costs       0 $ 0 2
Business Combination, Pro Forma Information, Integration Related Costs           32
Unisys Federal            
Business Acquisition [Line Items]            
Payments to Acquire Businesses, Gross $ 1,200          
Revenues       669    
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual       62    
Deferred financing fees 27          
Goodwill, Period Increase (Decrease)       654    
Business Combination, Provisional Information, Initial Accounting Incomplete, Net Working Capital Adjustment       6    
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Prepaid Expenses       1    
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities     67 67    
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles       26    
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Tax Assets       6    
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Accrued Liabilities       1    
Acquisition related costs $ 49   2      
Amortization expense related to intangible assets       15    
2022     18 18    
2023     18 18    
2024     14 14    
2025     $ 2 2    
Goodwill, Purchase Accounting Adjustments       $ 39    
Engility Holdings, Inc            
Business Acquisition [Line Items]            
Payments to Acquire Businesses, Gross   $ 1,052        
Deferred financing fees           31
Acquisition related costs           63
Payments of stock issuance costs           $ 2
v3.21.1
Acquisitions Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
Mar. 13, 2020
Jan. 14, 2019
Jan. 29, 2021
Jan. 31, 2020
Business Acquisition [Line Items]        
Goodwill     $ 2,787 $ 2,139
Unisys Federal        
Business Acquisition [Line Items]        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables $ 114      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory, Current Assets, Prepaid Expense and Other Assets 15      
Goodwill 654      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 574      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 4      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed Operating Lease Right of Use Asset 43      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets 7      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets Including Goodwill 1,411      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable and Accrued Liabilities 42      
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accrued Payroll And Employee Benefits 7      
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Other Accrued Liabilities 62      
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Operating Lease Liabilities 30      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other 68      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total 209      
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net 1,202      
Business Acquisition, Goodwill, Expected Tax Deductible Amount 593      
Payments to Acquire Businesses, Gross $ 1,200      
Engility Holdings, Inc        
Business Acquisition [Line Items]        
Payments to Acquire Businesses, Gross   $ 1,052    
Business Combination, Consideration Transferred   $ 2,160    
Share price (in dollars per share)   $ 65.03    
Engility Holdings, Inc | Shares of common stock        
Business Acquisition [Line Items]        
New shares (in shares)   16.8    
Engility Holdings, Inc | Shares of common stock        
Business Acquisition [Line Items]        
Business combination, consideration transferred, equity interests issued and issuable   $ 1,086    
Engility Holdings, Inc | Restricted Stock        
Business Acquisition [Line Items]        
Business combination, consideration transferred, equity interests issued and issuable   $ 22    
v3.21.1
Acquisitions Fair Value of Intangible Assets and Related Weighted Average Useful Lives (Details) - Unisys Federal
$ in Millions
Mar. 13, 2020
USD ($)
Business Acquisition [Line Items]  
Finite-lived Intangible Assets Acquired $ 574
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 12 years
Order or Production Backlog [Member]  
Business Acquisition [Line Items]  
Finite-lived Intangible Assets Acquired $ 47
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 1 year
Technology-Based Intangible Assets [Member]  
Business Acquisition [Line Items]  
Finite-lived Intangible Assets Acquired $ 7
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 1 year
Customer Relationships [Member]  
Business Acquisition [Line Items]  
Finite-lived Intangible Assets Acquired $ 520
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 13 years
v3.21.1
Acquisitions Pro Forma Earnings (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Unisys Federal      
Business Acquisition [Line Items]      
Business Acquisition, Pro Forma Revenue $ 7,146 $ 7,105  
Business Acquisition, Pro Forma Net Income (Loss) $ 258 $ 193  
Engility Holdings, Inc      
Business Acquisition [Line Items]      
Business Acquisition, Pro Forma Revenue     $ 6,426
Business Acquisition, Pro Forma Net Income (Loss)     $ 260
v3.21.1
Restructuring and Impairment - Schedule of Restructuring Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Restructuring Cost and Reserve [Line Items]      
Severance Costs $ 4 $ 0 $ 0
Restructuring Costs 10 16 29
Impairment of right of use assets 2 5 0
Restructuring Costs and Asset Impairment Charges 12 21 29
Selling, General and Administrative Expenses      
Restructuring Cost and Reserve [Line Items]      
Impairment of right of use assets 1 0 0
Acquisition and Integration Costs      
Restructuring Cost and Reserve [Line Items]      
Severance Costs 2 9 29
Other Restructuring Costs 4 7 0
Impairment of right of use assets $ 1 $ 5 $ 0
v3.21.1
Restructuring and Impairment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Expected Cost Remaining $ 4    
Severance Costs 4 $ 0 $ 0
Integration of Engility      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost   52  
Severance Costs   40  
Restructuring and Related Cost, Expected Cost   1  
Other Restructuring Costs   12  
Employee Severance | Integration of Engility      
Restructuring Cost and Reserve [Line Items]      
Payments for Restructuring 3 12 $ 25
Other Restructuring | Integration of Engility      
Restructuring Cost and Reserve [Line Items]      
Payments for Restructuring $ 4 $ 7  
v3.21.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Mar. 13, 2020
Finite-Lived Intangible Assets [Line Items]        
Goodwill $ 2,787,000,000 $ 2,139,000,000    
Impairment of goodwill 0 0    
Amortization expense related to intangible assets 147,000,000 95,000,000 $ 24,000,000  
Impairment of Intangible Assets, Finite-lived 0 $ 0    
Goodwill, Period (Increase) Decrease (648,000,000)      
Unisys Federal        
Finite-Lived Intangible Assets [Line Items]        
Goodwill       $ 654,000,000
Amortization expense related to intangible assets 15,000,000      
Goodwill, Period (Increase) Decrease (654,000,000)      
Non-Strategic International Operations        
Finite-Lived Intangible Assets [Line Items]        
Goodwill, Period (Increase) Decrease $ 6,000,000      
v3.21.1
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value $ 1,427 $ 853
Accumulated amortization (289) (142)
Net carrying value 1,138 711
Customer Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 1,371 851
Accumulated amortization (241) (142)
Net carrying value 1,130 709
Order or Production Backlog [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 47 0
Accumulated amortization (41) 0
Net carrying value 6 0
Technology-Based Intangible Assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 9 2
Accumulated amortization (7) 0
Net carrying value $ 2 $ 2
v3.21.1
Goodwill and Intangible Assets - Estimated Annual Amortization Expense (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
2022 $ 110  
2023 106  
2024 103  
2025 103  
2026 103  
Thereafter 613  
Net carrying value $ 1,138 $ 711
v3.21.1
Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment $ 266 $ 272
Accumulated depreciation and amortization (158) (181)
Property, plant, and equipment, net $ 108 91
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Depreciation or amortization method Straight-line  
Estimated useful lives (in years) 10 years  
Property, plant, and equipment $ 92 80
Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Depreciation or amortization method Straight-line  
Estimated useful lives (in years) 40 years  
Property, plant, and equipment $ 7 7
Construction in process    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 14 7
Land    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment $ 1 1
Computer equipment    
Property, Plant and Equipment [Line Items]    
Depreciation or amortization method Straight-line ordeclining balance  
Property, plant, and equipment $ 90 90
Computer equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 3 years  
Computer equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 10 years  
Capitalized software and software licenses    
Property, Plant and Equipment [Line Items]    
Depreciation or amortization method Straight-line ordeclining balance  
Property, plant, and equipment $ 45 68
Capitalized software and software licenses | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 3 years  
Capitalized software and software licenses | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 10 years  
Office furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Depreciation or amortization method Straight-line ordeclining balance  
Property, plant, and equipment $ 17 $ 19
Office furniture and fixtures | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 3 years  
Office furniture and fixtures | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated useful lives (in years) 10 years  
v3.21.1
Property, Plant, and Equipment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 32 $ 36 $ 23
v3.21.1
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 29, 2021
USD ($)
compensationPlan
$ / shares
shares
Jan. 31, 2020
USD ($)
$ / shares
shares
Feb. 01, 2019
USD ($)
$ / shares
Jan. 14, 2019
Jan. 30, 2015
shares
Jun. 30, 2014
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Accelerated compensation cost $ 2.0 $ 3.0 $ 14.0      
Number of stock based compensation plans | compensationPlan 4          
Document Period End Date Jan. 29, 2021          
Employee Stock Option            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation cost, net of estimated forfeitures $ 2.0          
Expected weighted-average period of recognition, years 1 year 1 month 6 days          
Performance share awards            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Percentage of target shares 200.00% 150.00%        
Unrecognized compensation cost, net of estimated forfeitures $ 5.6          
Expected weighted-average period of recognition, years 1 year 8 months 12 days          
Awards granted (in dollars per share) | $ / shares $ 74.40 $ 79.04 $ 85.31      
Fair value of vesting awards that vested $ 5.0          
Below threshold level of performance (in shares) | shares 0 0        
Percentage of awards presented for target number of shares 100.00%          
Share awards granted upon future achievement (in shares) | shares 200,000          
Vesting stock awards            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Awards assumed (in shares) | shares   642,000        
Awards assumed (in dollars per share) | $ / shares   $ 65.03        
Unrecognized compensation cost, net of estimated forfeitures $ 39.0          
Expected weighted-average period of recognition, years 1 year 3 months 18 days          
Awards granted (in dollars per share) | $ / shares $ 76.41 $ 76.01 $ 84.28      
Fair value of vesting awards that vested $ 32.0 $ 35.0 $ 60.0      
Share-based Payment Arrangement            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock granted, value, share-based compensation   42.0        
Share-based Payment Arrangement, Pre-combination            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock granted, value, share-based compensation   22.0        
Share-based Payment Arrangement, Post-combination            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock granted, value, share-based compensation   $ 20.0        
2013 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares authorized under plan (in shares) | shares         5,700,000 8,500,000
2013 Equity Incentive Plan | Employee Stock Option Granted Thereafter            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Percentage of stock awards vest or exercisable after one year 33.00%          
Percentage of stock awards vest or exercisable after two years 33.00%          
Percentage of stock awards vest or exercisable after three years 33.00%          
2013 Equity Incentive Plan | Vesting Stock Awards Granted Thereafter            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Percentage of stock awards vest or exercisable after one year 25.00%          
Percentage of stock awards vest or exercisable after two years 25.00%          
Percentage of stock awards vest or exercisable after three years 25.00%          
Percentage of stock awards vest or exercisable after four years 25.00%          
2013 Equity Incentive Plan | Employee Stock Option            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Contractual term 7 years          
2013 Equity Incentive Plan | Employee Stock Option | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Contractual term 10 years          
2013 Equity Incentive Plan | Directors            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period 1 year          
Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares authorized under plan (in shares) | shares 3,400,000          
Percentage of market price for employee purchase program for stock purchases during non-compensatory period 5.00%          
Employee Stock Purchase Plan | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Percentage of market price for employee purchase program for stock purchases during non-compensatory period 15.00%          
Engility Holdings, Inc            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Business combination, equity right conversion, common shares conversion ratio       0.45    
Vesting after one year | 2013 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 33.00%          
Vesting after two years | 2013 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 33.00%          
Vesting after three years | 2013 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 33.00%          
v3.21.1
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense and Related Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Document Period End Date Jan. 29, 2021    
Total stock-based compensation expense $ 42 $ 37 $ 45
Tax benefits recognized from stock-based compensation 14 13 20
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 3 4 3
Vesting stock awards      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 32 29 37
Performance share awards      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 7 $ 4 $ 5
v3.21.1
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Shares of stocks under stock options    
Outstanding, beginning balance (in shares) 0.7  
Options granted (in shares) 0.2  
Options forfeited or expired (in shares) 0.0  
Options exercised (in shares) (0.2)  
Outstanding, ending balance (in shares) 0.7 0.7
Options exercisable, ending balance (in shares) 0.5  
Options vested and expected to vest, ending balance (in shares) 0.7  
Weighted-average exercise price    
Outstanding beginning balance (in dollars per share) $ 60.47  
Options granted (in dollars per share) 74.57  
Options forfeited or expired (in dollars per share) 0  
Options exercised (in dollars per share) 40.82  
Outstanding ending balance (in dollars per share) 68.57 $ 60.47
Options exercisable (in dollars per share) 64.91  
Vested and expected to vest in the future (in dollars per share) $ 68.48  
Weighted-average remaining contractual term    
Outstanding 3 years 10 months 24 days 3 years 6 months
Options exercisable 2 years 9 months 18 days  
Vested and expected to vest 3 years 9 months 18 days  
Aggregate intrinsic value    
Options outstanding $ 20 $ 20
Options exercisable 14  
Vested and expected to vest $ 19  
v3.21.1
Stock-Based Compensation - Schedule of Shared-Based Compensation Cost Related to Stock Options (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Share-based Payment Arrangement [Abstract]      
Cash received from exercises of stock options $ 0 $ 0 $ 0
Stock exchanged at fair value upon exercises of stock options 1 2 1
Tax benefits from exercises of stock options 2 3 7
Total intrinsic value of options exercised $ 8 $ 16 $ 24
v3.21.1
Stock-Based Compensation - Fair Value and Valuation Assumptions of Stock Options (Details) - Employee Stock Option - $ / shares
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value $ 17.54 $ 16.88 $ 19.48
Expected term (in years) 3 years 9 months 18 days 4 years 2 months 12 days 4 years
Expected volatility 35.50% 30.00% 29.00%
Risk-free interest rate 0.30% 2.20% 2.50%
Dividend yield 1.80% 2.00% 1.60%
v3.21.1
Stock-Based Compensation - Schedule of Vesting Stock Award Activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Weighted-average grant date fair value      
Document Period End Date Jan. 29, 2021    
Vesting stock awards      
Shares of stock under stock awards      
Unvested awards, beginning balance (in shares) 900    
Awards granted (in shares) 600    
Awards assumed (in shares)   642  
Awards forfeited (in shares) (100)    
Awards vested (in shares) (400)    
Unvested awards, ending balance (in shares) 1,000 900  
Weighted-average grant date fair value      
Unvested awards beginning balance (in dollars per share) $ 74.94    
Awards granted (in dollars per share) 76.41 $ 76.01 $ 84.28
Awards assumed (in dollars per share)   65.03  
Awards forfeited (in dollars per share) 75.34    
Awards vested (in dollars per share) 72.64    
Unvested awards ending balance (in dollars per share) $ 76.73 $ 74.94  
v3.21.1
Stock-Based Compensation - Schedule of Performance Share Award Activity (Details) - $ / shares
shares in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Weighted-average grant date fair value      
Document Period End Date Jan. 29, 2021    
Performance share awards      
Shares of stock under performance shares      
Unvested awards, beginning balance (in shares) 0.1    
Performance shares granted (in shares) 0.1    
Performance shares forfeited (in shares) 0.0    
Performance shares vested (in shares) 0.0    
Performance shares adjustment (in shares) 0.0    
Unvested awards, ending balance (in shares) 0.2 0.1  
Weighted-average grant date fair value      
Unvested awards beginning balance (in dollars per share) $ 81.60    
Performance shares granted (in dollars per share) 74.40 $ 79.04 $ 85.31
Performance shares forfeited (in dollars per share) 0    
Performance shares vested (in dollars per share) 0    
Performance shares adjustment (in dollars per share) 0    
Unvested awards ending balance (in dollars per share) $ 76.54 $ 81.60  
v3.21.1
Retirement Plans - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 29, 2021
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Defined Benefit Plan Disclosure [Line Items]        
Company contributions to defined contribution plans expense   $ 73 $ 65 $ 46
Plan assets, amount $ 55 55 53  
Net losses from change in net benefit obligation   2 6  
Increase in projected benefit obligation from decrease in discount rate 4   9  
Actual investment return in excess of expected return 2 2 3  
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement 1 1    
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan 6      
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)   3    
Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Defined benefit plan liability 15 15 23  
Benefit obligation 70 70 76 71
Plan assets, amount $ 55 $ 55 53 52
Net losses from change in net benefit obligation     5  
Long-term rate of return 5.50% 5.50%    
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement   $ 1 0  
Retiree Health Reimbursement Account Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Expected contribution amount $ 1 1    
Defined benefit plan liability 14 14 17  
Benefit obligation 14 14 17 15
Plan assets, amount $ 0 0 0 $ 0
Net losses from change in net benefit obligation     1  
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement   $ 0 $ 0  
Defined Benefit Plan, Equity Securities, US | Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation, percentage 44.00% 44.00%    
Defined Benefit Plan, Equity Securities, Non-US | Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation, percentage 20.00% 20.00%    
Fixed Income Securities | Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation, percentage 31.00% 31.00%    
Defined Benefit Plan, Cash and Cash Equivalents | Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation, percentage 5.00% 5.00%    
v3.21.1
Retirement Plans - Net Periodic Benefit Income (Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 29, 2021
Jan. 29, 2021
Jan. 31, 2020
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement $ 1 $ 1  
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Interest cost   2 $ 3
Defined Benefit Plan, Expected Return (Loss) on Plan Assets   (3) (3)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement   1 0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)   0 0
Retiree Health Reimbursement Account Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Interest cost   0 1
Defined Benefit Plan, Expected Return (Loss) on Plan Assets   0 0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement   0 0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)   $ 0 $ 1
v3.21.1
Retirement Plans - Obligations and Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Change in plan assets:    
Fair value of plan assets at beginning of year $ 53  
Fair value of plan assets at end of year 55 $ 53
Pension Plan [Member]    
Change in benefit obligation:    
Benefit obligation at beginning of year 76 71
Interest cost 2 3
Benefits paid (5) (5)
Actuarial loss (gain) 3 7
Settlements (6) 0
Benefit obligation at end of year 70 76
Change in plan assets:    
Fair value of plan assets at beginning of year 53 52
Actual return on plan assets 5 6
Employer contributions 8 0
Benefits paid (5) (5)
Settlements (6) 0
Fair value of plan assets at end of year 55 53
Unfunded status 15 23
Retiree Health Reimbursement Account Plan [Member]    
Change in benefit obligation:    
Benefit obligation at beginning of year 17 15
Interest cost 0 1
Benefits paid (1) (1)
Actuarial loss (gain) (2) 2
Settlements 0 0
Benefit obligation at end of year 14 17
Change in plan assets:    
Fair value of plan assets at beginning of year 0 0
Actual return on plan assets 0 0
Employer contributions 1 1
Benefits paid (1) (1)
Settlements 0 0
Fair value of plan assets at end of year 0 0
Unfunded status $ 14 $ 17
v3.21.1
Retirement Plans - Amounts Recognized In The Balance Sheet (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Other accrued liabilities $ 0 $ 0
Other long-term liabilities 15 23
Net amount recognized 15 23
Retiree Health Reimbursement Account Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Other accrued liabilities 1 1
Other long-term liabilities 13 16
Net amount recognized $ 14 $ 17
v3.21.1
Retirement Plans - Assumptions Used (Details)
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligation, discount rate 2.47% 2.87% 4.06%
Interest cost effective rate 2.47% 3.70%  
Expected rate of return on assets 5.50% 5.50%  
Retiree Health Reimbursement Account Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligation, discount rate 1.86% 2.56% 3.82%
Interest cost effective rate 2.27% 3.58%  
v3.21.1
Retirement Plans - Fair Value Measurement Plan Assets (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount $ 55 $ 53
Equity | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount 37 34
Fixed income | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount 8 9
Guaranteed deposit account | Significant Unobservable Inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount 3 2
Subtotal | Fair Value, Inputs, Level 1, 2 and 3    
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount 48 45
Collective trust - fixed income | Measured at NAV    
Defined Benefit Plan Disclosure [Line Items]    
Plan assets, amount $ 7 $ 8
v3.21.1
Retirement Plans - Schedule of Guaranteed Deposit Accounts (Details) - Level 3 - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Change in plan assets:    
Beginning balance $ 2 $ 3
Purchases 12 13
Sales (11) (14)
Ending balance $ 3 $ 2
v3.21.1
Retirement Plans - Estimated Future Benefit Payment (Details)
$ in Millions
Jan. 29, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
2022 $ 6
2023 6
2024 6
2025 6
2026 6
Five subsequent fiscal years 28
Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2022 5
2023 5
2024 5
2025 5
2026 5
Five subsequent fiscal years 22
Retiree Health Reimbursement Account Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2022 1
2023 1
2024 1
2025 1
2026 1
Five subsequent fiscal years $ 6
v3.21.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Income Tax Disclosure [Abstract]      
Document Period End Date Jan. 29, 2021    
Current:      
Federal $ 34 $ 10 $ 4
State 14 3 10
Deferred:      
Federal 10 32 17
State 2 12 2
Total $ 60 $ 57 $ 33
v3.21.1
Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Income Tax Disclosure [Abstract]      
Amount computed at the statutory federal income tax rate $ 57 $ 60 $ 36
State income taxes, net of federal tax benefit 13 14 9
Research and development and other federal credits (8) (11) (8)
Non-deductible compensation 3 2 3
Non-deductible acquisition costs 0 0 3
Excess tax benefits for stock-based compensation (3) (4) (9)
Other (2) (4) (1)
Total $ 60 $ 57 $ 33
Effective Income Tax Rate Reconciliation, Percent 22.10% 20.00% 19.40%
v3.21.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Income Taxes [Line Items]      
Research and development and other federal credits $ 8 $ 11 $ 8
Non-deductible acquisition costs 0 0 3
Additions for tax positions related to prior years 8 32 1
Additions for tax positions related to the current year 9 8 $ 2
Unrecognized Tax Benefits, Increase Resulting from Available Tax Credits 17    
Federal      
Income Taxes [Line Items]      
Operating loss carryforwards 383    
State      
Income Taxes [Line Items]      
Operating loss carryforwards 14    
Carryforward amount 8    
Valuation allowance $ 7    
Tax Year 2016 - 2019      
Income Taxes [Line Items]      
Research and development and other federal credits   6  
Tax Year 2020 [Member]      
Income Taxes [Line Items]      
Research and development and other federal credits   $ 5  
v3.21.1
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Components of Deferred Tax Assets and Liabilities [Abstract]    
Accrued vacation and bonuses $ 33 $ 21
Accrued liabilities 16 20
Deferred compensation 20 23
Stock awards 11 11
Net operating loss and other carryforwards 105 117
Fixed asset basis differences 0 2
Deferred revenue 14 0
Lease liability 65 54
Payroll tax deferral 11 0
Accumulated other comprehensive loss 30 23
Valuation allowance (7) (5)
Total deferred tax assets 298 266
Deferred revenue 0 (1)
Purchased intangible assets (198) (177)
Fixed asset basis difference (4) 0
Right of use assets (61) (48)
Total deferred tax liabilities (263) (226)
Net deferred tax assets $ 35 $ 40
v3.21.1
Income Taxes - Schedule of Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits at beginning of the year $ 51 $ 13 $ 7
Additions for acquired unrecognized tax benefits 0 0 3
Additions for tax positions related to prior years 8 32 1
Additions for tax positions related to the current year 9 8 2
Reductions for prior year tax positions related to statute expiration (2) (2) 0
Unrecognized tax benefits at end of the year 66 51 13
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate $ 66 $ 48 $ 9
v3.21.1
Debt Obligations - Schedule of Long-term Debt (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Mar. 13, 2020
Jan. 31, 2020
Debt Instrument [Line Items]      
Total principal payments $ 2,542   $ 1,941
Principal amount of long-term debt, current 68   70
Principal amount of long-term debt, non current 2,474   1,871
Unamortized Debt Issuance Costs (27)   (20)
Unamortized debt issuance costs, current 0   0
Unamortized debt issuance costs, non current (27)   (20)
Total long-term debt 2,515   1,921
Less current portion 68   70
Total long-term debt, net of current portion $ 2,447   1,851
Term Loan A Facility due October 2023      
Debt Instrument [Line Items]      
Stated interest rate 1.87%    
Effective interest rate 2.20%    
Total principal payments $ 844   904
Unamortized Debt Issuance Costs (6)   (9)
Total long-term debt $ 838   895
Term Loan B Facility due October 2025      
Debt Instrument [Line Items]      
Stated interest rate 2.00%    
Effective interest rate 2.19%    
Total principal payments $ 1,026   1,037
Unamortized Debt Issuance Costs (9)   (11)
Total long-term debt $ 1,017   $ 1,026
Term Loan B2 Facility Due March Two Thousand Twenty Seven      
Debt Instrument [Line Items]      
Stated interest rate 2.37%    
Effective interest rate 2.79%   0.00%
Total principal payments $ 272 $ 600 $ 0
Unamortized Debt Issuance Costs (6)    
Total long-term debt $ 266   $ 0
Senior Notes Due April Two Thousand Twenty Eight      
Debt Instrument [Line Items]      
Stated interest rate 4.88% 4.875%  
Effective interest rate 5.04%   0.00%
Total principal payments $ 400 $ 400 $ 0
Unamortized Debt Issuance Costs (6)    
Total long-term debt $ 394   $ 0
v3.21.1
Debt Obligations - Narrative (Details)
 12 Months Ended
Mar. 01, 2021
Mar. 13, 2020
USD ($)
Oct. 31, 2018
USD ($)
Jan. 29, 2021
USD ($)
Jan. 31, 2020
USD ($)
Feb. 01, 2019
USD ($)
Debt Instrument [Line Items]            
Deferred financing fees       $ 27,000,000 $ 0 $ 26,000,000
Principal amount of long-term debt       2,542,000,000 1,941,000,000  
Interest expense       122,000,000 90,000,000 53,000,000
Loss on extinguishment of debt       0 0 4,000,000
Debt Issuance Costs, Net       27,000,000 20,000,000  
Line of Credit Facility, Fair Value of Amount Outstanding       0    
Second Amendmente to the Third Amended Credit Agreement            
Debt Instrument [Line Items]            
Debt Issuance Costs, Gross       27,000,000    
Debt Issuance Costs, Net       22,000,000    
Debt Issuance Costs, Interest Expense       5,000,000    
February 2019 Credit Facility | Line of Credit            
Debt Instrument [Line Items]            
Credit facility, maximum borrowing capacity       2,500,000,000    
Term Loan A Facility due October 2023            
Debt Instrument [Line Items]            
Principal amount of long-term debt       $ 844,000,000 904,000,000  
Stated interest rate       1.87%    
Debt Issuance Costs, Net       $ 6,000,000 9,000,000  
Term Loan B Facility due October 2025            
Debt Instrument [Line Items]            
Principal amount of long-term debt       $ 1,026,000,000 1,037,000,000  
Amortization rate       0.25%    
Stated interest rate       2.00%    
Debt Issuance Costs, Net       $ 9,000,000 11,000,000  
Revolving Credit Facility            
Debt Instrument [Line Items]            
Debt instrument, face amount           400,000,000
Revolving Credit Facility | Minimum            
Debt Instrument [Line Items]            
Commitment fee percentage     0.20%      
Revolving Credit Facility | Maximum            
Debt Instrument [Line Items]            
Commitment fee percentage     0.35%      
Term Loan B Facility Due October Two Thousand Twenty Five            
Debt Instrument [Line Items]            
Debt instrument, face amount           1,100,000,000
Term Loan B Facility Due October Two Thousand Twenty Five | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     0.75%      
Term Loan B Facility Due October Two Thousand Twenty Five | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     1.75%      
Term Loan B Facility Due October Two Thousand Twenty Five | Second Amendmente to the Third Amended Credit Agreement | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement   0.875%        
Term Loan B Facility Due October Two Thousand Twenty Five | Second Amendmente to the Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement   1.875%        
Term Loan B Facility Due October Two Thousand Twenty Five | First Amendment to the Third Amended Credit Agreement | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     0.75%      
Term Loan B Facility Due October Two Thousand Twenty Five | First Amendment to the Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     1.75%      
Term Loan A Facility Commitment Due October Two Thousand Twenty Three            
Debt Instrument [Line Items]            
Debt instrument, face amount           $ 1,100,000,000
Term Loan A Facility Commitment Due October Two Thousand Twenty Three | Minimum | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     0.25%      
Term Loan A Facility Commitment Due October Two Thousand Twenty Three | Minimum | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     1.25%      
Term Loan A Facility Commitment Due October Two Thousand Twenty Three | Maximum | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     1.00%      
Term Loan A Facility Commitment Due October Two Thousand Twenty Three | Maximum | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement     2.00%      
Term Loan B2 Facility Due March Two Thousand Twenty Seven            
Debt Instrument [Line Items]            
Principal amount of long-term debt   $ 600,000,000   $ 272,000,000 0  
Amortization rate       0.25%    
Repayments of Secured Debt       $ 325,000,000    
Write off of Deferred Debt Issuance Cost       $ 8,000,000    
Stated interest rate       2.37%    
Debt Issuance Costs, Net       $ 6,000,000    
Term Loan B2 Facility Due March Two Thousand Twenty Seven | Second Amendmente to the Third Amended Credit Agreement | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement   1.25%        
Term Loan B2 Facility Due March Two Thousand Twenty Seven | Second Amendmente to the Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement   2.25%        
Senior Notes Due April Two Thousand Twenty Eight            
Debt Instrument [Line Items]            
Principal amount of long-term debt   $ 400,000,000   $ 400,000,000 0  
Stated interest rate   4.875%   4.88%    
Debt Issuance Costs, Net       $ 6,000,000    
Secured Debt | Term Loan A Facility due October 2023 | Line of Credit            
Debt Instrument [Line Items]            
Debt instrument, face amount       844,000,000    
Principal payments on borrowings       150,000,000    
Secured Debt | Term Loan B Facility due October 2025 | Line of Credit            
Debt Instrument [Line Items]            
Debt instrument, face amount       1,026,000,000    
Secured Debt | Term Loan B2 Facility Due March Two Thousand Twenty Seven | Line of Credit            
Debt Instrument [Line Items]            
Principal amount of long-term debt       272,000,000    
Third Amended Credit Agreement            
Debt Instrument [Line Items]            
Deferred financing fees     $ 31,000,000      
Interest expense     5,000,000      
Loss on extinguishment of debt     4,000,000      
Payments of financing fees     $ 26,000,000      
Revolving Credit Facility            
Debt Instrument [Line Items]            
Proceeds from lines of credit         100,000,000  
Line of Credit Facility, Annual Principal Payment         $ 100,000,000  
Revolving Credit Facility | February 2019 Credit Facility | Line of Credit            
Debt Instrument [Line Items]            
Credit facility, maximum borrowing capacity       $ 400,000,000    
Until July 31, 2016 | Third Amended Credit Agreement | Maximum            
Debt Instrument [Line Items]            
Credit agreement financial covenant, leverage ratio     3.75      
After July 31, 2016 | Third Amended Credit Agreement | Maximum            
Debt Instrument [Line Items]            
Credit agreement financial covenant, leverage ratio     4.50      
Third Term | Third Amended Credit Agreement | Maximum            
Debt Instrument [Line Items]            
Credit agreement financial covenant, leverage ratio     4.00      
Fourth Term | Third Amended Credit Agreement | Maximum            
Debt Instrument [Line Items]            
Credit agreement financial covenant, leverage ratio     4.25      
Subsequent Event | Term Loan B Facility Due October Two Thousand Twenty Five | Second Amendmente to the Third Amended Credit Agreement | Base Rate            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement 0.875%          
Subsequent Event | Term Loan B Facility Due October Two Thousand Twenty Five | Second Amendmente to the Third Amended Credit Agreement | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Interest rate margin under credit agreement 1.875%          
Debt Instrument, Redemption, Period One | Term Loan A Facility due October 2023            
Debt Instrument [Line Items]            
Amortization rate       1.25%    
Debt Instrument, Redemption, Period Two | Term Loan A Facility due October 2023            
Debt Instrument [Line Items]            
Amortization rate       1.875%    
Debt Instrument, Redemption, Period Three | Term Loan A Facility due October 2023            
Debt Instrument [Line Items]            
Amortization rate       2.50%    
v3.21.1
Debt Obligations - Maturities of Long-term Debt (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Debt Disclosure [Abstract]    
2022 $ 68  
2023 147  
2024 661  
2025 10  
2026 984  
Thereafter 672  
Total principal payments $ 2,542 $ 1,941
v3.21.1
Derivative Instruments Designated as Cash Flow Hedges - Schedule of Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Derivative [Line Items]    
Derivative, Notional Amount $ 1,292  
Asset (Liability) Fair Value (117) $ (92)
Interest rate swap 1 | Interest Rate Swaps    
Derivative [Line Items]    
Derivative, Notional Amount $ 229  
Pay Fixed Rate 2.78%  
Receive Variable Rate 1-month LIBOR  
Settlement and Termination Monthly through July 30, 2021  
Asset (Liability) Fair Value $ (3) (6)
Interest rate swap 2 | Interest Rate Swaps    
Derivative [Line Items]    
Derivative, Notional Amount $ 500  
Pay Fixed Rate 3.07%  
Receive Variable Rate 1-month LIBOR  
Settlement and Termination Monthly through October 31, 2025  
Asset (Liability) Fair Value $ (81) (62)
Interest rate swap 3 | Interest Rate Swaps    
Derivative [Line Items]    
Derivative, Notional Amount $ 563  
Pay Fixed Rate 2.49%  
Receive Variable Rate 1-month LIBOR  
Settlement and Termination Monthly through October 31, 2023  
Asset (Liability) Fair Value $ (33) $ (24)
v3.21.1
Derivative Instruments Designated as Cash Flow Hedges - Narrative (Details) - Interest Rate Swaps - USD ($)
$ in Millions
 12 Months Ended
Oct. 31, 2018
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Derivative [Line Items]        
Unrealized loss from accumulated other comprehensive loss   $ 35    
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net   $ 1 $ 4 $ 1
Interest rate swap 4        
Derivative [Line Items]        
Derivative, Cash Received on Hedge $ 6      
v3.21.1
Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period $ 1,427 $ 1,499 $ 327
Other comprehensive loss before reclassifications (54) (82) (23)
Amounts reclassified from accumulated other comprehensive loss 30 4 (1)
Income tax impact 7 20 6
Total other comprehensive (loss) income, net of tax (17) (58) (18)
Balance, end of period 1,552 1,427 1,499
Unrealized Gains (losses) on Fixed Interest Rate Swap Cash Flow Hedges      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period (67) (14)  
Other comprehensive loss before reclassifications (55) (76) (23)
Amounts reclassified from accumulated other comprehensive loss 29 4 (1)
Income tax impact 7 19 6
Total other comprehensive (loss) income, net of tax (19) (53) (18)
Balance, end of period (86) (67) (14)
Defined Benefit Obligation Adjustment(2)      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period (5) 0  
Other comprehensive loss before reclassifications 1 (6) 0
Amounts reclassified from accumulated other comprehensive loss 1 0 0
Income tax impact 0 1 0
Total other comprehensive (loss) income, net of tax 2 (5) 0
Balance, end of period (3) (5) 0
AOCI Attributable to Parent      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period (72) (14) 4
Total other comprehensive (loss) income, net of tax (17) (58) (18)
Balance, end of period $ (89) $ (72) (14)
Accounting Standards Update 2018-02 | Unrealized Gains (losses) on Fixed Interest Rate Swap Cash Flow Hedges      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period     4
Accounting Standards Update 2018-02 | Defined Benefit Obligation Adjustment(2)      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period     0
Accounting Standards Update 2018-02 | AOCI Attributable to Parent      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Balance, beginning of period     $ 4
v3.21.1
Sale of Receivables (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Jan. 21, 2020
Receivables [Abstract]      
TransfersOfFinancialAssetsAccountedForAsSalesMarpaMaximumCommitment $ 300   $ 200
TransfersOfFinancialAssetsAccountedForAsSalesDiscountFee 2    
TransfersOfFinancialAssetsAccountedForAsSalesCashCollected (3,041)    
TransferOfFinancialAssetsAccountedForAsSalesAmountOutstanding 185 $ 0  
TransferOfFinancialAssetsAccountedForAsSalesReceivablesSoldDuringPeriod 3,226    
TransfersOfFinancialAssetsAccountedForAsSalesCashCollectedNotRemittedToPurchaser (25)    
TransferOfFinancialAssetsAccountedForAsSalesRemainingSoldReceivables $ 160    
v3.21.1
Leases Lease Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Leases [Abstract]    
Operating Lease, Cost $ 74 $ 64
Variable Lease, Cost 21 15
Short-term Lease, Cost 35 4
Sublease Income 2 3
Lease, Cost 128 80
Operating Lease, Impairment Loss $ 1 $ 5
v3.21.1
Leases Assets and Liabilities, Leases (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Feb. 02, 2019
Leases [Abstract]      
Operating lease right of use assets $ 236 $ 190 $ 169
Operating Lease, Liability, Current 49 34  
Operating Lease, Liability, Noncurrent 205 172 140
Operating Lease, Liability $ 254 $ 206 $ 184
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other accrued liabilities Other accrued liabilities  
v3.21.1
Leases Other Supplemental Lease Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Leases [Abstract]    
Operating Lease, Payments $ 77 $ 64
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability $ 110 $ 79
Operating Lease, Weighted Average Remaining Lease Term 5 years 6 years
Operating Lease, Weighted Average Discount Rate, Percent 3.50% 4.50%
v3.21.1
Leases Operating Lease Liabilities, Payments Due (Details) - USD ($)
$ in Millions
Jan. 29, 2021
Jan. 31, 2020
Feb. 02, 2019
Leases [Abstract]      
2022 $ 57    
2023 58    
2024 47    
2025 37    
2026 29    
Thereafter 54    
Lessee, Operating Lease, Liability, Payments, Due 282    
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (28)    
Operating Lease, Liability $ 254 $ 206 $ 184
v3.21.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2021
Feb. 01, 2019
Leases [Abstract]    
Operating Leases, Rent Expense, Net   $ 46
Operating Lease, Lease Income $ 40  
Operating Lease, Liability, to be Paid, Sublease Arrangements $ 12  
v3.21.1
Business Segment Information (Details) - segment
 12 Months Ended
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Segment Reporting Information [Line Items]      
Number of operating segments 3    
Number of reportable segments 1    
Sales Revenue, Net | Customer Concentration Risk      
Segment Reporting Information [Line Items]      
Percentage of sales 95.00% 95.00% 95.00%
v3.21.1
Legal Proceedings and Commitments and Contingencies (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
May 04, 2015
Sep. 30, 2016
Aug. 31, 2015
May 03, 2019
Jan. 29, 2021
Jan. 31, 2020
Feb. 01, 2019
Commitments And Contingencies [Line Items]              
Payments to acquire businesses, net of cash acquired         $ 1,202,000,000 $ 0 $ 1,001,000,000
Government Investigations and Reviews              
Commitments And Contingencies [Line Items]              
Estimated net amounts to be refunded for potential adjustments         46,000,000    
Letters of Credit              
Commitments And Contingencies [Line Items]              
Outstanding obligations         10,000,000    
Surety Bonds              
Commitments And Contingencies [Line Items]              
Outstanding obligations         $ 18,000,000    
Scitor Holdings, Inc.              
Commitments And Contingencies [Line Items]              
Payments to acquire businesses, net of cash acquired $ 764,000,000            
Business combination amount deposited to adjustment and indemnification escrow accounts included in cash consideration paid $ 43,000,000            
Business combination amount deposited to adjustment and indemnification escrow accounts amounts released   $ 13,000,000 $ 3,000,000        
Business combination, escrow deposit disbursements received       $ 6,000,000      
Escrow deposit       $ 0