LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

September 29,
 2017

December 30,
 2016

ASSETS

Current assets:

Cash and cash equivalents

$

287

$

376

Receivables, net

1,797

1,657

Inventory, prepaid expenses and other current assets

487

348

Total current assets

2,571

2,381

Property, plant and equipment, net

212

259

Intangible assets, net

925

1,589

Goodwill

4,976

4,622

Deferred tax assets

—

16

Other assets

239

265

$

8,923

$

9,132

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

1,500

$

1,427

Accrued payroll and employee benefits

435

483

Dividends payable

18

23

Income taxes payable

4

21

Long-term debt, current portion

64

62

Total current liabilities

2,021

2,016

Long-term debt, net of current portion

3,043

3,225

Deferred tax liabilities

337

540

Other long-term liabilities

215

204

Stockholders' equity:

Common stock, $.0001 par value, 500 million shares authorized, 151 million
  and 150 million shares issued and outstanding at September 29, 2017 and
  December 30, 2016, respectively

—

—

Additional paid-in capital

3,335

3,316

Accumulated deficit

(72)

(177)

Accumulated other comprehensive income (loss)

31

Total Leidos stockholders' equity

3,294

3,135

Non-controlling interest

13

12

Total equity

3,307

3,147

$

8,923

$

9,132