Booz Allen Hamilton talks Snowden in its filings

May 23, 2014

Two weeks from now will mark the first anniversary of the world learning about Edward Snowden, the former Booz Allen Hamilton contractor who leaked reams of documents to journalists (The Guardian, which published the first stories on June 5, 2013, has a good timeline here). We thought about that as we flipped through the 10-K that Booz Allen filed yesterday. When they filed their 2012 10-K on May 23, 2013, they weren’t exactly a household name.

One thing we noticed in looking at the filing: Snowden’s name may not be physically mentioned (we would have been more surprised if it had been), but there’s certainly additional disclosures that show just how different things were in 2013 for the company.

For example, this disclosure on pg. 26 caught our attention:

Although our employees are subject to confidentiality obligations, this protection may be inadequate to deter or prevent misappropriation of our confidential information and/or the infringement of our patents and copyrights. Further, we may be unable to detect unauthorized use of our intellectual property or otherwise take appropriate steps to enforce our rights. Failure to adequately protect, maintain, or enforce our intellectual property rights may adversely limit our competitive position.

There was also an addition to the forward-looking statements — something we’ve been paying a lot more attention to lately for our Pro subscribers — about “misconduct or other improper activities from our employees, subcontractors including the improper use or release of our clients’ sensitive or classified information.” Prior version of that disclosure ended with the word employees, without mentioning subcontractors or going into details about what those improper activities entailed.”

There was one other interesting tidbit in Booz Allen’s 10-K that was totally unrelated to Snowden. The company estimated that the government spent $101 billion last year on management and technology consulting. Around 60% of that was tied to the Department of Defense. The rest was spent by civil agencies. Just think about that number for a minute.

Posted in: Disclosures

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Companies Mentioned: Booz Allen Hamilton Holding Corporation,
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