Calendar Year Ended January 1, 2016

As reported

Asset
impairment
charges

Amortization
of
intangibles¹

Restructuring
expenses

Gain on a
real estate
sale

Non-GAAP
results

Income from continuing operations, 
     before income taxes

$

328

$

(73)

$

(9)

$

(6)

$

82

$

334

Depreciation expense

35

—

—

—

—

35

Amortization expense

9

—

9

—

—

—

Interest expense, net

54

—

—

—

—

54

EBITDA

$

426

$

(73)

$

—

$

(6)

$

82

$

423

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

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share amounts)

The following tables present the reconciliation of the non-GAAP operating income by reportable segment:

Quarter Ended December 30, 2016

Operating
income
(loss)

Asset
impairment
charges

Acquisition
and
integration
costs

Amortization
of intangibles

Restructuring
expenses

Non-GAAP
Operating
income
(loss)

Non-GAAP
Operating
Margin

National Security 
     Solutions

$

68

$

—

$

—

$

—

$

—

$

68

7.8

%

Information Systems 
     & Global Solutions

88

—

—

53

—

141

10.4

%

Health and 
     Infrastructure

46

—

—

1

—

47

13.5

%

Corporate and Other

(50)

4

22

—

8

(16)

NM

Total

$

152

$

4

$

22

$

54

$

8

$

240

9.3

%