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

EBITDA margin

7.3

%

10.0

%

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share amounts)

Nine Months Ended September 29, 2017

As reported

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Amortization of equity method investments

Loss (gain) on sale of assets and businesses

Non-GAAP results

Operating income

$

458

$

56

$

212

$

25

$

11

$

—

$

762

Non-operating expense, net

(99)

—

—

—

—

1

(98)

Income from continuing operations, before
  income taxes

359

56

212

25

11

1

664

Income tax expense ¹

(108)

(22)

(82)

(10)

(4)

—

(226)

Net income

251

34

130

15

7

1

438

Less: net loss attributable to non-controlling
  interest

(1)

—

—

—

—

—

(1)

Net income attributable to Leidos common
  stockholders

$

252

$

34

$

130

$

15

$

7

$

1

$

439

Diluted EPS attributable to Leidos common
  stockholders

$

1.65

$

0.22

$

0.85

$

0.10

$

0.04

$

0.01

$

2.87

Diluted shares

153

153

153

153

153

153

153

⁽¹⁾ Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments.