Nine Months Ended October 2, 2015

As reported

Asset impairment charges

Amortization of intangibles¹

Restructuring expenses

Non-GAAP results

Income from continuing operations,
 before income taxes

$

155

$

(73)

$

(7)

$

(3)

$

238

Depreciation expense

28

—

—

—

28

Amortization expense

7

—

7

—

—

Interest expense, net

42

—

—

—

42

EBITDA

$

232

$

(73)

$

—

$

(3)

$

308

⁽¹⁾ Prior period has been recast to reflect amortization of acquired intangible assets as a non-GAAP adjustment.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts)

The following tables present the reconciliation of the non-GAAP operating income by reportable segment:

Quarter Ended September 30, 2016

Operating income (loss)

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Non-GAAP Operating income (loss)

National Security Solutions

$

91

$

—

$

—

$

—

$

91

9.9

%

Health and Infrastructure

41

—

1

—

42

12.8

%

Information Systems & Global Solutions

26

—

26

—

52

8.4

%

Corporate and Other

(57)

44

—

5

(8)

NM

Total

$

101

$

44

$

27

$

5

$

177

9.5

%