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How DRS rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

73%

of sentences unchanged

Added

new sentences

Dropped

106

sentences removed

Length

−296

words, now 24,469

New in FY2025

RISK FACTORS You should carefully consider the risks and uncertainties described below, as well as other information contained in this Annual Report, including the notes to our consolidated financial statements and the section titled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ,” when evaluating our business.
Disruptions, including from government shutdowns, or deteriorations in our relationships with the relevant agencies of the U.S. government could have a material adverse impact on our business, financial condition and results of operations. • Significant delays, including from government shutdowns, or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly may negatively impact our business and could have a material adverse impact on our business, financial condition and results of operations. • Our results of operations and cash flows are substantially affected by our mix of fixed-price, cost-plus and T&M type contracts.
In particular, fixed-price contracts subject us to the risk of loss in the event of cost overruns or higher than anticipated inflation. • We are subject to the U.S. government’s requirements, including the DoW’s National Industrial Security Program Operating Manual, for our facility security clearances, which are prerequisites to our ability to perform on classified contracts for the U.S. government. • We are subject to a number of procurement, international trade, and other rules, regulations and requirements related to our industry, our products, and the businesses we operate.
If we fail to comply with such rules, regulations or other requirements we may be subject to civil and/or criminal penalties and/or administrative sanctions. • We may not realize the full value of our total estimated remaining contract value or bookings, including as a result of reduction of funding or cancellation of our U.S. government contracts, which could have a material adverse impact on our business, financial condition and results of operations. • Our working capital requirements and cash flows are extremely variable and subject to fluctuation, which could have a material adverse effect on our business, financial condition and results of operations. • We are subject to global and regional economic downturns, rising interest rates and related risks. • To service indebtedness and fund other cash needs, we will require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control. • We face intense competition and may suffer losses if we fail to compete efficiently. • We depend in part upon our relationships and alliances with industry participants in order to generate revenue, which involves risks and uncertainties. • Contractual disputes with industry participants or the inability of our key suppliers to timely deliver our components, parts or services, could cause our products, systems or services to be produced or delivered in an untimely or unsatisfactory manner. • We may be susceptible to a security breach, through cyber-attack, cyber-intrusion, insider threats or otherwise, and to other significant disruptions of our IT networks and related systems, or those of our customers, suppliers, vendors, subcontractors, partners, or other third parties. • We may be at greater risk from terrorism and other threats to our physical security and personnel, than other companies. • Our future success will depend on our ability to respond to the rapid technological changes in the markets in which we compete, and our ability to introduce new or enhanced products and to enter into new markets. • Many of our contracts contain performance obligations that require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise or are dependent upon factors not wholly within our control.
Failure to meet our contractual obligations could adversely affect our business, financial condition, results of operations, reputation and future prospects. • We may not be able to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology. • Third parties have claimed in the past and may claim in the future that we are infringing directly or indirectly upon their intellectual property rights, and third parties may infringe upon our intellectual property rights. • Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate. • The outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved from time to time is unpredictable, and an adverse decision in any such matter could have a material adverse impact on our business, financial condition and results of operations. • Our international business exposes us to additional risks, including risks related to geopolitical conflicts, including the war in Israel, and economic factors, laws and regulations. • Our efforts to localize our business operations in new territories present significant challenges and could adversely affect our growth strategy and our financial performance. • A failure to attract and retain technical and other key personnel could reduce our revenues and our operational effectiveness. • Our business could be harmed in the event of difficulties with our unionized workforce, including the effects of a prolonged work stoppage. • Our insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover all of our significant risks or our insurers may deny coverage of or be unable to pay for material losses we incur, which could adversely affect our business, financial condition and results of operations. • We have unfunded obligations under our pension plans, and we use estimates in accounting for our pension plans and changes in our estimates could adversely affect our financial condition and results of operations. • Acquisitions could result in operating difficulties, dilution and other harmful consequences. • We have significant operations in locations that could be materially and adversely impacted in the event of a natural disaster, severe weather or other significant disruption. • We cannot predict the consequences of future geopolitical events, but they may adversely affect the markets in which we operate, our ability to insure against risks, our operations or our results of operations. • We operate under an amended and restated proxy agreement with the DoW that regulates significant areas of our governance.
If we fail to comply with the amended and restated proxy agreement our classified U.S. government contracts could be terminated, which could have a material adverse impact on our business, financial condition and results of operations. • CFIUS may modify, delay or prevent our future acquisition or investment activities. • Our indirect majority stockholder, Leonardo S.p.A., may have interests that are different from, or conflict with, those of our other stockholders, and their significant ownership in us may discourage mergers and acquisitions or change of control transactions. • There can be no assurance that we will continue to pay or increase our dividend or to repurchase shares of our common stock.
Additionally, there can be no assurance that we will not accelerate our dividend or repurchases of our common stock.
We depend on revenues from contracts and subcontracts with the U.S. government, including defense-related programs with the DoW and a broad range of programs with all branches of the U.S. military.
Revenues derived directly or indirectly from contracts with the U.S. government represented approximately 80%, 79% and 80% of our total revenues for the years ended December 31, 2025, 2024, and 2023, respectively, with revenues principally derived directly or indirectly from contracts with the U.S.
Army, which represented 36% and 36%, respectively, of our total revenues for the year ended December 31, 2025.
Significant delays, including from government shutdowns, or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly may negatively impact our business and could have a material adverse impact on our business, financial condition and results of operations.
The availability of U.S. government funding for significant programs in which we participate may be impacted by a number of factors beyond our control including full or partial government shutdowns, the overall federal budget, changes in spending priorities and defense spending levels, sequestration, the appropriations process, use of continuing resolutions (with restrictions, e.g., on starting new programs) and the permissible level of federal debt.
We cannot predict the impact on existing, follow-on, replacement or future programs from potential changes in priorities whether due to changes in defense spending levels, the threat environment, procurement strategy, the evolution of warfare, military strategy and planning and/or changes in social, economic or political priorities.
As the DoW budget represents the largest part of the federal discretionary budget, it is possible that the various legislative actions might exert downward pressure on defense spending, as well as other non-defense discretionary outlays.
Considerable uncertainty exists regarding future budget and program decisions, including U.S. defense spending priorities, what challenges budget reductions will present for the defense industry, whether annual appropriations bills for all agencies will be enacted for U.S. government FY2027 and thereafter, and how the current administration will approach those decisions through the budgeting process.
While the FY2026 DoW budget was approved, there remains uncertainty with regard to the U.S. government’s spending priorities, including whether and to what extent the DoW’s budget may change, and, if it does, to what extent our business, financial condition and results of operations may be affected.
Additionally, the U.S. government’s budget deficit and the national debt could also significantly affect government budgeting priorities and could have an adverse impact on our business, financial condition and results of operations in a number of ways, including the following: • the U.S. government could reduce or delay its spending on, or reprioritize its spending away from, defense programs in which we participate; • U.S. defense spending could be impacted by alternate arrangements to sequestration, which increases the uncertainty as to, and the difficulty in predicting, U.S. government spending priorities and levels; • we may experience reduced or delayed orders or payments or other responses to economic difficulties experienced by our customers and prospective customers, including U.S. federal, state and local governments; and • the U.S. government could reduce the outsourcing of functions that we are currently contracted to provide, including as a result of increased insourcing by various U.S. government agencies due to changes in the definition of “inherently governmental” work, such as proposals to limit contractor access to sensitive or classified information and work assignments.
Our results of operations and cash flows are substantially affected by our mix of fixed-price, cost-plus and T&M type contracts.
We generate revenue through various fixed-price, cost-plus and T&M type contracts.
For the years ended December 31, 2025, 2024, and 2023, approximately 88%, 84% and 84%, respectively, of our revenue was derived from fixed-price contracts.
We are subject to the U.S. government’s requirements, including the DoW’s National Industrial Security Program Operating Manual, for our facility security clearances, which are prerequisites to our ability to perform on classified contracts for the U.S. government.
We require a facility security clearance to perform on classified contracts for the DoW and certain other agencies of the U.S. government.
Leonardo S.p.A., an Italian company listed on the Milan Stock Exchange, owns the entire share capital of US Holding which, in turn, owns approximately 71% of the voting power of our outstanding common stock.
In order to be permitted to maintain our security clearances and our access to classified data and to perform or bid on classified programs, we are required to mitigate FOCI through a proxy agreement, which we have done by entering into an amended and restated proxy agreement, with the DoW.
For additional information on the terms and requirements of the amended and restated proxy agreement, see “— Risks Relating to Our Ownership and Status under the Amended and Restated Proxy Agreement — We operate under an amended and restated proxy agreement with the DoW that regulates significant areas of our governance.
If we fail to comply with the amended and restated proxy agreement, our classified U.S. government contracts could be terminated, which could have a material adverse impact on our business, financial condition and results of operations .” While we currently mitigate FOCI under the amended and restated proxy agreement, the DoW reserves the right to terminate such proxy agreement or impose such additional security safeguards as it believes necessary in order to prevent unauthorized access to classified and controlled unclassified information and any U.S. government agency may deny or revoke our access to classified and controlled unclassified information under its jurisdiction if it considers it necessary to protect national security.
Failure to maintain an agreement with the DoW regarding the appropriate FOCI mitigation arrangement could result in invalidation or termination of our facility security clearances, which in turn would mean that we would not be able to perform under current or enter into future contracts with the U.S. government requiring facility security clearances.
We depend on revenues from contracts and subcontracts with the U.S. government, including defense-related programs with the DoW and a broad range of programs with each of the service branches.
Revenues derived directly or indirectly from contracts with the U.S. government were approximately 80%, 79% and 80% for the years ended December 31, 2025, 2024, and 2023, respectively.
If we fail to maintain an agreement with the DoW regarding the appropriate FOCI mitigation arrangement or otherwise fail to comply with the NISPOM, this could have a material adverse impact on our business, financial condition and results of operations.
Furthermore, the President issued an Executive Order in January 2025, which requires, in relevant part, that every Federal contract or grant award include a clause that requires the contractor or grant recipient to (1) agree that its compliance with all applicable federal anti-discrimination laws is material to the government’s payment decisions on such contract or grant for purposes of the False Claims Act, and (2) certify that it does not operate any programs promoting diversity, equity and inclusion that violate any applicable federal anti-discrimination laws.
We depend on U.S. government contracts, which are heavily regulated and subject to audit by the U.S. government and its agencies, such as the Defense Contract Audit Agency (“DCAA”), Defense Contract Management Agency, the DoW Inspector General, and others.
Department of the Treasury, DoW, Office of Foreign Assets Control, as well as rules and regulations administered by the U.S.
Considerable uncertainty exists regarding future legislation and regulations as the current administration has issued changing guidance on a wide array of topics.
Any initiatives and changes to procurement practices may change the way U.S. government contracts are solicited, negotiated and managed, which may affect whether and how we pursue opportunities to provide our products and services to the U.S. government, including the terms and conditions under which we do so.
Funded backlog represents the revenue value of orders for products and services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts.
We evaluate bookings which we define as the total value of contract awards received from the U.S. government for which it has appropriated funds and legally obligated such funds to the Company through a contract or purchase order, plus the funded value of contract awards and orders received from customers other than the U.S. government.
As of December 31, 2025, our total remaining contract value was approximately $8,448 million with bookings for the year of $4,245 million.
We cannot predict future capital needs, the sufficiency of our current financing or our ability to obtain additional financing if needed, on terms acceptable to us, if at all.
Although we believe that our available cash resources, together with our access to credit facilities, as described in Note 12: Debt to the Consolidated Financial Statements, and future cash that we expect to generate from our operations, are sufficient to meet our presently anticipated liquidity needs and capital expenditure requirements, we might in the future need to raise additional funds to, among other things: • fund our operations; • support expansion of capacity; • address fluctuations in cash flow (including negative cash flow periods); • support more rapid growth of our business; • develop new or enhanced products and solutions; • respond to competitive pressures; and • acquire companies or technologies.

and 53 more.

Gone since FY2024

RISK FACTORS You should carefully consider the risks and uncertainties described below, as well as other information contained in this Annual Report, including our financial statements and the section titled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ,” when evaluating our business.
Disruptions or deteriorations in our relationships with the relevant agencies of the U.S. government could have a material adverse impact on our business, financial condition and results of operations. • Significant delays or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly may negatively impact our business and could have a material adverse impact on our business, financial condition and results of operations. • Our results of operations and cash flows are substantially affected by our mix of fixed-price, cost-plus and time-and-materials type contracts.
In particular, fixed-price contracts subject us to the risk of loss in the event of cost overruns or higher than anticipated inflation. • We are subject to the U.S. government’s requirements, including the DoD’s National Industrial Security Program Operating Manual, for our facility security clearances, which are prerequisites to our ability to perform on classified contracts for the U.S. government. • We are subject to a number of procurement, international trade, and other rules, regulations and requirements related to our industry, our products, and the businesses we operate.
If we fail to comply with such rules, regulations or other requirements we may be subject to civil and/or criminal penalties and/or administrative sanctions. • We may not realize the full value of our total estimated remaining contract value or bookings, including as a result of reduction of funding or cancellation of our U.S. government contracts, which could have a material adverse impact on our business, financial condition and results of operations. • Our working capital requirements and cash flows are extremely variable and subject to fluctuation, which could have a material adverse effect on our business, financial condition and results of operations. • We are subject to global and regional economic downturns, rising interest rates and related risks. • To service indebtedness and fund other cash needs, we will require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control. • We face intense competition and may suffer losses if we fail to compete efficiently. • We depend in part upon our relationships and alliances with industry participants in order to generate revenue, which involves risks and uncertainties. • Contractual disputes with industry participants or the inability of our key suppliers to timely deliver our components, parts or services, could cause our products, systems or services to be produced or delivered in an untimely or unsatisfactory manner. • We are susceptible to a security breach, through cyber-attack, cyber-intrusion, insider threats or otherwise, and to other significant disruptions of our IT networks and related systems, or those of our customers, suppliers, vendors, subcontractors, partners, or other third parties. • We may be at greater risk from terrorism and other threats to our physical security and personnel, than other companies. • Our future success will depend on our ability to respond to the rapid technological changes in the markets in which we compete, and our ability to introduce new or enhanced products and to enter into new markets. • Many of our contracts contain performance obligations that require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise or are dependent upon factors not wholly within our control.
Failure to meet our contractual obligations could adversely affect our business, financial condition, results of operations, reputation and future prospects. • We may not be able to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology. • Third parties have claimed in the past and may claim in the future that we are infringing directly or indirectly upon their intellectual property rights, and third parties may infringe upon our intellectual property rights. • Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate. • The outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved from time to time is unpredictable, and an adverse decision in any such matter could have a material adverse impact on our business, financial condition and results of operations. • Our international business exposes us to additional risks, including risks related to geopolitical conflicts, including the war in Israel, and economic factors, laws and regulations. • Our efforts to localize our business operations in new territories present significant challenges and could adversely affect our growth strategy and our financial performance. • A failure to attract and retain technical and other key personnel could reduce our revenues and our operational effectiveness. • Our business could be harmed in the event of difficulties with our unionized workforce, including the effects of a prolonged work stoppage. • Our insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover all of our significant risks or our insurers may deny coverage of or be unable to pay for material losses we incur, which could adversely affect our business, financial condition and results of operations. • We have unfunded obligations under our pension plans, and we use estimates in accounting for our pension plans and changes in our estimates could adversely affect our financial condition and results of operations. • Changes to financial accounting standards may affect our results of operations and cause us to change our business practices. • Acquisitions could result in operating difficulties, dilution and other harmful consequences. • We have significant operations in locations that could be materially and adversely impacted in the event of a natural disaster or other significant disruption. • We cannot predict the consequences of future geopolitical events, but they may adversely affect the markets in which we operate, our ability to insure against risks, our operations or our results of operations. • We operate under a proxy agreement with the DoD that regulates significant areas of our governance.
If we fail to comply with the proxy agreement our classified U.S. government contracts could be terminated, which could have a material adverse impact on our business, financial condition and results of operations. • CFIUS may modify, delay or prevent our future acquisition or investment activities. • Our indirect majority stockholder, Leonardo S.p.A., may have interests that are different from, or conflict with, those of our other stockholders, and their significant ownership in us may discourage mergers and acquisitions or change of control transactions. • Risks related to ownership of our common stock.
We depend on revenues from contracts and subcontracts with the U.S. government, including defense-related programs with the DoD and a broad range of programs with all branches of the U.S. military.
Revenues derived directly or indirectly from contracts with the U.S. government represented approximately 79%, 80% and 84% of our total revenues for the years ended December 31, 2024, 2023, and 2022, respectively, with revenues principally derived directly or indirectly from contracts with the U.S.
Army, which represented 37% and 32%, respectively, of our total revenues for the year ended December 31, 2024.
Significant delays or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly may negatively impact our business and could have a material adverse impact on our business, financial condition and results of operations.
The availability of U.S. government funding for significant programs in which we participate may be impacted by a number of factors beyond our control including the overall federal budget, changes in spending priorities and defense spending levels, sequestration, the appropriations process, use of continuing resolutions (with restrictions, e.g., on starting new programs) and the permissible level of federal debt.
We cannot predict the impact on existing, follow-on, replacement or future programs from potential changes in priorities whether due to changes in defense spending levels, the threat environment, procurement strategy, military strategy and planning and/or changes in social, economic or political priorities.
As the DoD budget represents the largest part of the federal discretionary budget, it is possible that the various legislative actions might exert downward pressure on defense spending, as well as other non-defense discretionary outlays.
Considerable uncertainty exists regarding future budget and program decisions, including U.S. defense spending priorities, what challenges budget reductions will present for the defense industry, whether annual appropriations bills for all agencies will be enacted for U.S. government fiscal year 2025 and thereafter, and how the current administration will approach those decisions through the budgeting process.
Additionally, the current U.S. administration has discussed various changes to defense spending levels ranging from across-the-board percentage cuts, to a change in spending allocations in favor of new priorities, and potential increases in the top-line spending profile.
It remains unclear whether and to what extent the DoD’s budget may change and, if it does, to what extent our business, financial condition and results of operations may be affected.
Additionally, the U.S. government’s budget deficit and the national debt could also significantly affect government budgeting priorities and could have an adverse impact on our business, financial condition and results of operations in a number of ways, including the following: • the U.S. government could reduce or delay its spending on, or reprioritize its spending away from, defense programs in which we participate; • U.S. defense spending could be impacted by alternate arrangements to sequestration, which increases the uncertainty as to, and the difficulty in predicting, U.S. government spending priorities and levels; • we may experience reduced or delayed orders or payments or other responses to economic difficulties experienced by our customers and prospective customers, including U.S.
Federal, state and local governments; and • the U.S. government could reduce the outsourcing of functions that we are currently contracted to provide, including as a result of increased insourcing by various U.S. government agencies due to changes in the definition of “inherently governmental” work, such as proposals to limit contractor access to sensitive or classified information and work assignments.
Our results of operations and cash flows are substantially affected by our mix of fixed-price, cost-plus and time-and-materials type contracts.
We generate revenue through various fixed-price, cost-plus and time-and-materials contracts.
For the years ended December 31, 2024, 2023, and 2022, approximately 84%, 84% and 87%, respectively, of our revenue was derived from fixed-price contracts.
We are subject to the U.S. government’s requirements, including the DoD’s National Industrial Security Program Operating Manual, for our facility security clearances, which are prerequisites to our ability to perform on classified contracts for the U.S. government.
We require a facility security clearance to perform on classified contracts for the DoD and certain other agencies of the U.S. government.
Leonardo S.p.A., an Italian company listed on the Milan Stock Exchange, owns the entire share capital of US Holding which, in turn, owns approximately 72% of the voting power of our outstanding common stock.
In order to be permitted to maintain our security clearances and our access to classified data and to perform or bid on classified programs, we are required to mitigate FOCI through a proxy agreement, which we have done by entering into an interim proxy agreement, with the DoD.
We are currently operating under an interim proxy agreement while we seek to enter into a new proxy agreement with the DoD.
For additional information on the terms and requirements of the proxy agreement, see “— Risks Relating to Our Ownership and Status under the Proxy Agreement — We operate under a proxy agreement with the DoD that regulates significant areas of our governance.
If we fail to comply with the proxy agreement our classified U.S. government contracts could be terminated, which could have a material adverse impact on our business, financial condition and results of operations .” While we currently mitigate FOCI under the interim proxy agreement, the DoD reserves the right to terminate the proxy agreement or impose such additional security safeguards as it believes necessary in order to prevent unauthorized access to classified and controlled unclassified information and any U.S. government agency may deny or revoke our access to classified and controlled unclassified information under its jurisdiction if it considers it necessary to protect national security.
Failure to maintain an agreement with the DoD regarding the appropriate FOCI mitigation arrangement could result in invalidation or termination of our facility security clearances, which in turn would mean that we would not be able to perform under current or enter into future contracts with the U.S. government requiring facility security clearances.
We depend on revenues from contracts and subcontracts with the U.S. government, including defense-related programs with the DoD and a broad range of programs with each of the service branches.
Revenues derived directly or indirectly from contracts with the U.S. government were approximately 79%, 80% and 84% for the years ended December 31, 2024, 2023, and 2022, respectively.
If we fail to maintain an agreement with the DoD regarding the appropriate FOCI mitigation arrangement or otherwise fail to comply with the NISPOM, this could have a material adverse impact on our business, financial condition and results of operations.
Furthermore, President Trump issued an Executive Order in January 2025, which requires, in relevant part, that every Federal contract or grant award include a clause that requires the contractor or grant recipient to (1) agree that its compliance with all applicable federal anti-discrimination laws is material to the government’s payment decisions on such contract or grant for purposes of the False Claims Act, and (2) certify that it does not operate any programs promoting diversity, equity and inclusion that violate any applicable federal anti-discrimination laws.
We depend on U.S. government contracts, which are heavily regulated and subject to audit by the U.S. government and its agencies, such as the Defense Contract Audit Agency (“DCAA”), Defense Contract Management Agency, the DoD Inspector General, and others.
Department of the Treasury, Office of Foreign Assets Control, as well as rules and regulations administered by the U.S.
Considerable uncertainty exists regarding future legislation and regulations as the current administration has issued changing guidance on a wide array of topics including the Executive Order issued in January 2025, which requires, in relevant part, that every Federal contract or grant award include a clause that requires the contractor or grant recipient to (1) agree that its compliance with all applicable federal anti-discrimination laws is material to the government’s payment decisions on such contract or grant for purposes of the False Claims Act, and (2) certify that it does not operate any programs promoting diversity, equity and inclusion that violate any applicable federal anti-discrimination laws.
For example, the current administration implemented an Executive Order in January 2025 creating the Department of Government Efficiency which has the stated purpose of modernizing Federal technology and software to maximize governmental efficiency and productivity.
These initiatives and changes to procurement practices may change the way U.S. government contracts are solicited, negotiated and managed, which may affect whether and how we pursue opportunities to provide our products and services to the U.S. government, including the terms and conditions under which we do so.
Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts.
We evaluate bookings which we define as the total value of contract awards received from the U.S. government for which it has appropriated funds and legally obligated such funds to the Company through a contract or purchase order, plus the value of contract awards and orders received from customers other than the U.S. government.

and 66 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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