Selected Quarterly Financial Data (Unaudited)

11 Months Ended

Jan. 01, 2016

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):

Selected unaudited financial data for each quarter of calendar 2015 (January 3, 2015, through January 1, 2016) and fiscal 2015 (February 1, 2014, through January 30, 2015), respectively, is presented in the table below.



	Three Months Ended
	April 3, 2015			July 3, 2015			October 2, 2015			January 1, 2016
	(in millions, except per share amounts)
Calendar 2015⁽¹⁾⁽⁴⁾
Revenues	$	1,246		$	1,257		$	1,302		$	1,281
Operating income	$	38		$	64		$	94		$	102
Income from continuing operations ⁽²⁾	$	23		$	37		$	49		$	127
Income from discontinued operations	$	18		$	—		$	—		$	—
Net income⁽²⁾	$	41		$	37		$	49		$	127
Basic earnings per share⁽³⁾	$	0.32		$	0.51		$	0.68		$	1.76
Diluted earnings per share ⁽³⁾	$	0.31		$	0.50		$	0.67		$	1.72
	Three Months Ended
	May 2, 2014			August 1, 2014			October 31, 2014			January 30, 2015
	(in millions, except per share amounts)
Fiscal 2015⁽⁵⁾
Revenues	$	1,312		$	1,306		$	1,276		$	1,169
Operating income (loss)	$	87		$	(410	)	$	72		$	37
Income (loss) from continuing operations⁽²⁾	$	45		$	(439	)	$	38		$	26
(Loss) income from discontinued operations	$	(8	)	$	1		$	(4	)	$	18
Net income (loss)⁽²⁾	$	37		$	(438	)	$	34		$	44
Basic earnings (loss) per share⁽³⁾	$	0.58		$	(5.93	)	$	0.52		$	0.36
Diluted earnings (loss) per share⁽³⁾	$	0.58		$	(5.93	)	$	0.51		$	0.35

⁽¹⁾

On March 20, 2015, the Board of Directors approved the amendment and restatement of the bylaws of Leidos and Leidos, Inc. to change both Leidos' and Leidos, Inc.'s year end from the Friday nearest the end of January to the Friday nearest the end of December. In the first quarter of calendar 2015, the Company began reporting financial results on the basis of the new fiscal year end. The results for the month of January 2015, which are included in the audited results for fiscal 2015, were also included in the reported first quarter of calendar 2015. However, the results for the month of January 2015 are not included in the results for the 11-month period ended January 1, 2016. As a result, the four quarters of calendar 2015 are not additive to the 11-month period ended January 1, 2016.


⁽²⁾	Income (loss) from continuing operations and net income (loss) relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below.


⁽³⁾	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for calendar 2015 and fiscal 2015.

⁽⁴⁾

Calendar 2015 quarterly results include tangible asset impairment charges of $40 million and $29 million in the first and second quarter, respectively, intangible asset impairment charges of $4 million in the third quarter and an $82 million gain on a real estate sale in the fourth quarter. The first quarter impairment charge occurred during January 2015 and is included in both the first quarter of calendar 2015 and the fourth quarter of fiscal 2015 results. For further information, see Note 3 - Acquisitions, Note 4 - Goodwill and Intangible Assets and Note 16 - Leases.


⁽⁵⁾	Fiscal 2015 quarterly results include goodwill impairment charges of $486 million in the second quarter, intangible asset impairment charges of $24 million and $17 million in the second and third quarter, respectively, and a tangible asset impairment charge of $40 million in the fourth quarter. For further information, see Note 3 - Acquisitions and Note 4 - Goodwill and Intangible Assets.

Leidos, Inc.:

Income (loss) from continuing operations and net income (loss) of Leidos, Inc. includes interest expense on the related party note and associated income taxes, which relate solely to Leidos, Inc. and are not reflected in the consolidated amounts above. Income (loss) from continuing operations and net income (loss) of Leidos, Inc. for each quarter of calendar 2015 (January 3, 2015, through January 1, 2016) and fiscal 2015 (February 1, 2014, through January 30, 2015), respectively, was as follows:



	First Quarter		Second Quarter			Third Quarter		Fourth Quarter
	(in millions)
Calendar 2015⁽¹⁾
Income from continuing operations	$	25	$	39		$	51	$	128
Net income	$	43	$	39		$	51	$	127
Fiscal 2015
Income (loss) from continuing operations	$	46	$	(437	)	$	40	$	27
Net income (loss)	$	38	$	(436	)	$	36	$	45


⁽¹⁾	Refer to footnote 1 of the previous table for further detail regarding the periods being presented for calendar 2015.

Leidos, Inc.

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):



	Three Months Ended
	April 3, 2015			July 3, 2015			October 2, 2015			January 1, 2016
	(in millions, except per share amounts)
Calendar 2015⁽¹⁾⁽⁴⁾
Revenues	$	1,246		$	1,257		$	1,302		$	1,281
Operating income	$	38		$	64		$	94		$	102
Income from continuing operations ⁽²⁾	$	23		$	37		$	49		$	127
Income from discontinued operations	$	18		$	—		$	—		$	—
Net income⁽²⁾	$	41		$	37		$	49		$	127
Basic earnings per share⁽³⁾	$	0.32		$	0.51		$	0.68		$	1.76
Diluted earnings per share ⁽³⁾	$	0.31		$	0.50		$	0.67		$	1.72
	Three Months Ended
	May 2, 2014			August 1, 2014			October 31, 2014			January 30, 2015
	(in millions, except per share amounts)
Fiscal 2015⁽⁵⁾
Revenues	$	1,312		$	1,306		$	1,276		$	1,169
Operating income (loss)	$	87		$	(410	)	$	72		$	37
Income (loss) from continuing operations⁽²⁾	$	45		$	(439	)	$	38		$	26
(Loss) income from discontinued operations	$	(8	)	$	1		$	(4	)	$	18
Net income (loss)⁽²⁾	$	37		$	(438	)	$	34		$	44
Basic earnings (loss) per share⁽³⁾	$	0.58		$	(5.93	)	$	0.52		$	0.36
Diluted earnings (loss) per share⁽³⁾	$	0.58		$	(5.93	)	$	0.51		$	0.35

⁽¹⁾


⁽²⁾	Income (loss) from continuing operations and net income (loss) relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below.


⁽³⁾	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for calendar 2015 and fiscal 2015.

⁽⁴⁾


⁽⁵⁾	Fiscal 2015 quarterly results include goodwill impairment charges of $486 million in the second quarter, intangible asset impairment charges of $24 million and $17 million in the second and third quarter, respectively, and a tangible asset impairment charge of $40 million in the fourth quarter. For further information, see Note 3 - Acquisitions and Note 4 - Goodwill and Intangible Assets.

Leidos, Inc.:



	First Quarter		Second Quarter			Third Quarter		Fourth Quarter
	(in millions)
Calendar 2015⁽¹⁾
Income from continuing operations	$	25	$	39		$	51	$	128
Net income	$	43	$	39		$	51	$	127
Fiscal 2015
Income (loss) from continuing operations	$	46	$	(437	)	$	40	$	27
Net income (loss)	$	38	$	(436	)	$	36	$	45


⁽¹⁾	Refer to footnote 1 of the previous table for further detail regarding the periods being presented for calendar 2015.