Quarter Ended December 30, 2016

As reported

Asset
impairment
charges

Acquisition
and
integration
costs

Amortization
of intangibles

Restructuring
expenses

Non-GAAP
results

Income from continuing operations, 
     before income taxes

$

105

$

(4)

$

(22)

$

(54)

$

(8)

$

193

Depreciation expense

14

—

—

—

—

14

Amortization expense

54

—

—

54

—

—

Interest expense, net

37

—

—

—

—

37

EBITDA

$

210

$

(4)

$

(22)

$

—

$

(8)

$

244

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share amounts)

Quarter Ended January 1, 2016

As reported

Amortization
of
intangibles ¹

Restructuring
expenses

Gain on a
real estate
sale

Non-GAAP
results

Revenue

$

1,281

$

—

$

—

$

—

$

1,281

Cost of revenues

1,124

—

—

—

1,124

Selling, general and administrative expenses ²

52

2

—

—

50

Restructuring expenses

3

—

3

—

—

Operating income

102

(2)

(3)

—

107

Non-operating income (expense), net

71

—

—

82

(11)

Income from continuing operations, before 
     income taxes

173

(2)

(3)

82

96

Income tax expense ³

(46)

1

1

(11)

(37)

Income from continuing operations

$

127

$

(1)

$

(2)

$

71

$

59

Net income

$

127

$

(1)

$

(2)

$

71

$

59

Diluted EPS from continuing operations

$

1.72

$

(0.01)

$

(0.03)

$

0.96

$

0.80

Diluted shares

74

74

74

74

74

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

⁽²⁾ Selling, general and administrative expenses includes bad debt expense of ($1) million.

⁽³⁾ Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments.