Nine Months Ended September 29, 2023

As reported

Acquisition,
integration and
restructuring
costs⁽³⁾

Amortization of
acquired
intangibles

Asset
impairment
charges

Goodwill
impairment
charges

Non-GAAP
results

Operating income

$          260

$            26

$           153

$            88

$        599

$        1,126

Non-operating expense, net

(167)

—

—

—

—

(167)

Income before income taxes

93

26

153

88

599

959

Income tax expense⁽¹⁾⁽⁴⁾

(115)

(6)

(39)

(31)

(28)

(219)

Net (loss) income

(22)

20

114

57

571

740

 Less: net income attributable to non-controlling interest

8

—

—

—

—

8

Net (loss) income attributable to Leidos common stockholders

$           (30)

$            20

$           114

$            57

$        571

$           732

Diluted EPS attributable to Leidos common stockholders⁽²⁾

$        (0.22)

$          0.14

$          0.83

$          0.41

$       4.14

$          5.30

Diluted shares

137

138

138

138

138

138

Nine Months Ended September 29, 2023

As reported

Acquisition,
integration and
restructuring
costs ⁽³⁾

Amortization of
acquired
intangibles

Asset
impairment
charges

Goodwill
impairment
charges

Non-GAAP
results

Net (loss) income

$         (22)

$            20

$           114

$            57

$        571

$          740

Income tax expense ⁽¹⁾⁽⁴⁾

115

6

39

31

28

219

Income before income taxes

93

26

153

88

599

959

Depreciation expense

95

—

—

—

—

95

Amortization of intangibles

153

—

(153)

—

—

—

Interest expense, net

163

—

—

—

—

163

Adjusted EBITDA

$         504

$            26

$            —

$            88

$       599

$       1,217

Adjusted EBITDA margin

4.4 %

10.6 %

(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.