Quarter Ended September 29, 2017

As reported

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Amortization of equity method investments

Non-GAAP results

Income from continuing
  operations, before income taxes

$

116

$

21

$

76

$

6

$

2

$

221

Depreciation expense

16

—

—

—

—

16

Amortization expense

78

—

(76)

—

(2)

—

Interest expense, net

35

—

—

—

—

35

EBITDA

$

245

$

21

$

—

$

6

$

—

$

272

EBITDA margin

9.8

%

10.9

%

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share amounts)

Quarter Ended September 30, 2016

As reported

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Non-GAAP results

Operating income

$

101

$

44

$

27

$

5

$

177

Non-operating expense, net

(26)

—

—

—

(26)

Income from continuing operations, before
  income taxes

75

44

27

5

151

Income tax expense ¹

17

(11)

(11)

(2)

(7)

Net income

92

33

16

3

144

Less: net income attributable to non-controlling
  interest

1

—

—

—

1

Net income attributable to Leidos common
  stockholders

$

91

$

33

$

16

$

3

$

143

Diluted EPS attributable to Leidos common
  stockholders

$

0.80

$

0.29

$

0.14

$

0.03

$

1.25

Diluted shares

114

114

114

114

114

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