Nine Months Ended September 27, 2024

As reported

Acquisition,
integration
and
restructuring
costs⁽³⁾

Amortization
of acquired
intangibles

Asset
impairment
charges

Gain on sale
of intangible
assets

Non-GAAP
results

Operating income

$      1,406

$           20

$         110

$           6

$           —

$      1,542

Non-operating expense, net

(142)

—

—

—

(2)

(144)

Income before income taxes

1,264

20

110

6

(2)

1,398

Income tax expense⁽¹⁾

(295)

(4)

(28)

(2)

—

(329)

Net income

969

16

82

4

(2)

1,069

Less: net loss attributable to non-controlling interest

(1)

—

—

—

—

(1)

Net income attributable to Leidos common stockholders

$         970

$           16

$           82

$           4

$           (2)

$      1,070

Diluted EPS attributable to Leidos common stockholders ⁽²⁾

$        7.13

$        0.12

$        0.60

$       0.03

$      (0.01)

$        7.87

Diluted shares

136

136

136

136

136

136

Nine Months Ended September 27, 2024

As reported

Acquisition,
integration
and
restructuring
costs ⁽³⁾

Amortization
of acquired
intangibles

Asset
impairment
charges

Gain on sale
of intangible
assets

Non-GAAP
results

Net income

$        969

$           16

$           82

$          4

$           (2)

$     1,069

Income tax expense ⁽¹⁾

295

4

28

2

—

329

Income before income taxes

1,264

20

110

6

(2)

1,398

Depreciation expense

101

—

—

—

—

101

Amortization of intangibles

110

—

(110)

—

—

—

Interest expense, net

146

—

—

—

—

146

Adjusted EBITDA

$     1,621

$           20

$           —

$          6

$           (2)

$     1,645

Adjusted EBITDA margin

13.2 %

13.4 %

(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.