(in millions, except per share data and margin percentages)
The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended September 29, 2023:
|
| Three Months Ended September 29, 2023 | ||||||||||
|
| As reported |
| Acquisition,
|
| Amortization of
|
| Asset
|
| Goodwill
|
| Non-GAAP
|
Operating (loss) income |
| $ (336) |
| $ 17 |
| $ 50 |
| $ 88 |
| $ 599 |
| $ 418 |
Non-operating expense, net |
| (52) |
| — |
| — |
| — |
| — |
| (52) |
(Loss) income before income taxes |
| (388) |
| 17 |
| 50 |
| 88 |
| 599 |
| 366 |
Income tax expense(1)(4) |
| (8) |
| (4) |
| (12) |
| (31) |
| (28) |
| (83) |
Net (loss) income |
| (396) |
| 13 |
| 38 |
| 57 |
| 571 |
| 283 |
Less: net income attributable to non-controlling interest |
| 3 |
| — |
| — |
| — |
| — |
| 3 |
Net (loss) income attributable to Leidos common stockholders |
| $ (399) |
| $ 13 |
| $ 38 |
| $ 57 |
| $ 571 |
| $ 280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to Leidos common stockholders(2) |
| $ (2.91) |
| $ 0.09 |
| $ 0.28 |
| $ 0.41 |
| $ 4.14 |
| $ 2.03 |
Diluted shares |
| 137 |
| 138 |
| 138 |
| 138 |
| 138 |
| 138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 29, 2023 | ||||||||||
|
| As reported |
| Acquisition,
|
| Amortization of
|
| Asset
|
| Goodwill
|
| Non-GAAP
|
Net (loss) income |
| $ (396) |
| $ 13 |
| $ 38 |
| $ 57 |
| $ 571 |
| $ 283 |
Income tax expense (1)(4) |
| 8 |
| 4 |
| 12 |
| 31 |
| 28 |
| 83 |
(Loss) income before income taxes |
| (388) |
| 17 |
| 50 |
| 88 |
| 599 |
| 366 |
Depreciation expense |
| 32 |
| — |
| — |
| — |
| — |
| 32 |
Amortization of intangibles |
| 50 |
| — |
| (50) |
| — |
| — |
| — |
Interest expense, net |
| 53 |
| — |
| — |
| — |
| — |
| 53 |
Adjusted EBITDA |
| $ (253) |
| $ 17 |
| $ — |
| $ 88 |
| $ 599 |
| $ 451 |
Adjusted EBITDA margin |
| (6.5) % |
|
|
|
|
|
|
|
|
| 11.5 % |
|
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. |
(2) 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. |
(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. |
(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment. |
LEIDOS HOLDINGS, INC.