Quarter Ended September 30, 2016

As reported

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Non-GAAP results

Income from continuing operations, before income taxes

$

75

$

(44)

$

(27)

$

(5)

$

151

Depreciation expense

10

—

—

—

10

Amortization expense

27

—

27

—

—

Interest expense, net

25

—

—

—

25

EBITDA

$

137

$

(44)

$

—

$

(5)

$

186

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts)

Quarter Ended October 2, 2015

As reported

Asset impairment charges

Amortization of intangibles¹

Restructuring expenses

Non-GAAP results

Revenue

$

1,302

$

—

$

—

$

—

$

1,302

Cost of revenues

1,138

—

—

—

1,138

Selling, general and administrative expenses ²

66

—

2

1

63

Asset impairment charges

4

4

—

—

—

Operating income

94

(4)

(2)

(1)

101

Non-operating expense, net

(14)

—

—

—

(14)

Income from continuing operations, before
  income taxes

80

(4)

(2)

(1)

87

Income tax (expense) benefit ³

(31)

2

1

—

(34)

Income from continuing operations

$

49

$

(2)

$

(1)

$

(1)

$

53

Diluted EPS from continuing operations ⁴

$

0.67

$

(0.03)

$

(0.01)

$

(0.01)

$

0.73

Diluted shares

73

73

73

73

73

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

⁽²⁾ Selling, general and administrative expenses includes bad debt expense of $13 million and restructuring expense of $1 million.

⁽³⁾ Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments.

⁽⁴⁾ Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total
      non-GAAP earnings per share due to rounding.