Commission File Number | Exact Name of Registrant as Specified in its Charter, Address of Principal Executive Offices and Telephone Number | State of Incorporation | I.R.S. Employer Identification No | |||
001-33072 | Leidos Holdings, Inc. | Delaware | 20-3562868 | |||
11951 Freedom Drive, Reston, Virginia 20190 | ||||||
(571) 526-6000 |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company o |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
LEIDOS HOLDINGS, INC. | |||||
Date: October 25, 2018 | By: | /s/ James C. Reagan | |||
James C. Reagan | |||||
Its: | Executive Vice President and Chief Financial Officer |
• | Revenues: $2.58 billion |
• | Diluted Earnings per Share: $0.96 |
• | Non-GAAP Diluted Earnings per Share: $1.14 |
• | Net Bookings: $4.6 billion (book-to-bill ratio of 1.8) |
• | Air Force: The Company was awarded a prime contract by the U.S. Airforce Sustainment Center to provide single-point integration services for F-16 fighter jet avionics shops. Under the contract, Leidos will be an independent non-manufacturing product support integrator for the Air Force’s F-16 avionics shops that perform maintenance on the electronics of the fighter aircraft. Additional services provided include the sustainment and procurement of test program set system hardware and software and management of automated test equipment components and support equipment for the F-16. The single award, indefinite delivery/indefinite quantity contract has a three-year base period, two one-year option periods and a total award ceiling of $620 million, if all option years are exercised. |
• | Social Security Administration: The Company was awarded a task order by the Social Security Administration ("SSA") to support its Office of Software Engineering program, which has a mission to improve the ability to deliver better software faster and more economically. Under the task order, which was issued under its recently awarded Information Technology Support Services Contract ("ITSSC") IDIQ with the SSA, Leidos will support full lifecycle software development activities that also includes the Agency’s IT Modernization efforts that will ultimately improve service to the American public. The task order has a potential value of $468 million, with a period of performance through 2022, if all option years are exercised. |
• | Intelligence Community: The Company was awarded contracts valued at approximately $2.0 billion, if all options are exercised, by U.S. national security and intelligence clients. Though the specific nature of these contracts is classified, they all encompass mission-critical services that help to counter global threats and strengthen national security. |
• | Revenues of $10.1 billion to $10.3 billion versus the prior range of $10.25 billion to $10.65 billion; |
• | Adjusted EBITDA margins of 10.2% to 10.4% versus the prior range of 10.1% to 10.4%; |
• | Non-GAAP diluted earnings per share of $4.20 to $4.40 versus the prior range of $4.15 to $4.50; and |
• | Cash flows provided by operating activities at or above $775 million, up from previous guidance of at or above $675 million. |
CONTACTS: | |
Investor Relations: | Media Relations: |
Kelly P. Hernandez | Melissa L. Koskovich |
571.526.6404 | 571.526.6850 |
ir@leidos.com | koskovichm@leidos.com |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, 2018 | September 29, 2017 | September 28, 2018 | September 29, 2017 | |||||||||||||
Revenues | $ | 2,575 | $ | 2,503 | $ | 7,547 | $ | 7,654 | ||||||||
Cost of revenues | 2,174 | 2,136 | 6,412 | 6,559 | ||||||||||||
Selling, general and administrative expenses | 195 | 194 | 547 | 561 | ||||||||||||
Integration and restructuring costs | 7 | 27 | 32 | 81 | ||||||||||||
Asset impairment charges | — | — | 7 | — | ||||||||||||
Equity earnings of non-consolidated subsidiaries | (4 | ) | (5 | ) | (12 | ) | (5 | ) | ||||||||
Operating income | 203 | 151 | 561 | 458 | ||||||||||||
Non-operating expense: | ||||||||||||||||
Interest expense, net | (35 | ) | (35 | ) | (104 | ) | (105 | ) | ||||||||
Other income, net | 2 | — | 3 | 6 | ||||||||||||
Income before income taxes | 170 | 116 | 460 | 359 | ||||||||||||
Income tax expense | (23 | ) | (37 | ) | (66 | ) | (108 | ) | ||||||||
Net income | 147 | 79 | 394 | 251 | ||||||||||||
Less: net (loss) income attributable to non-controlling interest | — | (3 | ) | 1 | (1 | ) | ||||||||||
Net income attributable to Leidos common stockholders | $ | 147 | $ | 82 | $ | 393 | $ | 252 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.97 | $ | 0.54 | $ | 2.59 | $ | 1.67 | ||||||||
Diluted | 0.96 | 0.53 | 2.55 | 1.65 | ||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 151 | 152 | 152 | 151 | ||||||||||||
Diluted | 153 | 154 | 154 | 153 | ||||||||||||
Cash dividends declared per share | $ | 0.32 | $ | 0.32 | $ | 0.96 | $ | 0.96 |
September 28, 2018 | December 29, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 515 | $ | 390 | ||||
Receivables, net | 1,812 | 1,831 | ||||||
Inventory, prepaid expenses and other current assets | 456 | 453 | ||||||
Assets held for sale | 98 | — | ||||||
Total current assets | 2,881 | 2,674 | ||||||
Property, plant and equipment, net | 230 | 232 | ||||||
Intangible assets, net | 702 | 856 | ||||||
Goodwill | 4,881 | 4,974 | ||||||
Other assets | 214 | 254 | ||||||
$ | 8,908 | $ | 8,990 | |||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 1,590 | $ | 1,639 | ||||
Accrued payroll and employee benefits | 410 | 487 | ||||||
Dividends payable | 11 | 17 | ||||||
Income taxes payable | 2 | 4 | ||||||
Long-term debt, current portion | 56 | 55 | ||||||
Liabilities held for sale | 24 | — | ||||||
Total current liabilities | 2,093 | 2,202 | ||||||
Long-term debt, net of current portion | 2,985 | 3,056 | ||||||
Deferred tax liabilities | 232 | 220 | ||||||
Other long-term liabilities | 141 | 129 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $.0001 par value, 500 million shares authorized, 150 million and 151 million shares issued and outstanding at September 28, 2018 and December 29, 2017, respectively | — | — | ||||||
Additional paid-in capital | 3,210 | 3,344 | ||||||
Accumulated earnings (deficit) | 231 | (7 | ) | |||||
Accumulated other comprehensive income | 13 | 33 | ||||||
Total Leidos stockholders’ equity | 3,454 | 3,370 | ||||||
Non-controlling interest | 3 | 13 | ||||||
Total equity | 3,457 | 3,383 | ||||||
$ | 8,908 | $ | 8,990 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, 2018 | September 29, 2017 | September 28, 2018 | September 29, 2017 | |||||||||||||
Cash flows from operations: | ||||||||||||||||
Net income | $ | 147 | $ | 79 | $ | 394 | $ | 251 | ||||||||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||||||||||
Depreciation and amortization | 64 | 92 | 193 | 254 | ||||||||||||
Stock-based compensation | 10 | 12 | 33 | 32 | ||||||||||||
Asset impairment charges | — | — | 7 | — | ||||||||||||
Bad debt expense and other | 7 | 6 | 17 | 34 | ||||||||||||
Change in assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Receivables | (34 | ) | 24 | 2 | (155 | ) | ||||||||||
Inventory, prepaid expenses and other current assets | 9 | (86 | ) | (24 | ) | (46 | ) | |||||||||
Accounts payable and accrued liabilities | 128 | 128 | 61 | 5 | ||||||||||||
Accrued payroll and employee benefits | (36 | ) | (37 | ) | (71 | ) | (44 | ) | ||||||||
Deferred income taxes and income taxes receivable/payable | 13 | (6 | ) | 3 | (50 | ) | ||||||||||
Other long-term assets/liabilities | 63 | 55 | 49 | 81 | ||||||||||||
Net cash provided by operating activities | 371 | 267 | 664 | 362 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Payments for property, plant and equipment | (25 | ) | (19 | ) | (53 | ) | (42 | ) | ||||||||
Acquisitions of businesses | — | — | (81 | ) | — | |||||||||||
Collections on promissory note | 40 | — | 40 | 2 | ||||||||||||
Proceeds from sale of assets | — | — | — | 7 | ||||||||||||
Net cash provided by (used in) investing activities | 15 | (19 | ) | (94 | ) | (33 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Payments of long-term debt | (15 | ) | (125 | ) | (59 | ) | (194 | ) | ||||||||
Proceeds from issuances of stock | 5 | 3 | 13 | 10 | ||||||||||||
Repurchases of stock and other | (66 | ) | (1 | ) | (182 | ) | (26 | ) | ||||||||
Dividend payments | (48 | ) | (48 | ) | (151 | ) | (150 | ) | ||||||||
Payment of tax indemnification liability | — | — | (23 | ) | — | |||||||||||
Payments for non-controlling interest acquired | (5 | ) | — | (8 | ) | — | ||||||||||
Payments for debt issuance and modification costs | (5 | ) | (3 | ) | (6 | ) | (4 | ) | ||||||||
Other | — | — | (1 | ) | — | |||||||||||
Net cash used in financing activities | (134 | ) | (174 | ) | (417 | ) | (364 | ) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 252 | 74 | 153 | (35 | ) | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 323 | 287 | 422 | 396 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 575 | $ | 361 | $ | 575 | $ | 361 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 28, 2018 | September 29, 2017 | Dollar change | Percent change | September 28, 2018 | September 29, 2017 | Dollar change | Percent change | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Defense Solutions | $ | 1,249 | $ | 1,201 | $ | 48 | 4.0 | % | $ | 3,683 | $ | 3,738 | $ | (55 | ) | (1.5 | )% | |||||||||||||
Civil | 882 | 838 | 44 | 5.3 | % | 2,544 | 2,555 | (11 | ) | (0.4 | )% | |||||||||||||||||||
Health | 444 | 464 | (20 | ) | (4.3 | )% | 1,320 | 1,361 | (41 | ) | (3.0 | )% | ||||||||||||||||||
Total | $ | 2,575 | $ | 2,503 | $ | 72 | 2.9 | % | $ | 7,547 | $ | 7,654 | $ | (107 | ) | (1.4 | )% | |||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||
Defense Solutions | $ | 88 | $ | 80 | $ | 8 | 10.0 | % | $ | 266 | $ | 222 | $ | 44 | 19.8 | % | ||||||||||||||
Civil | 93 | 50 | 43 | 86.0 | % | 228 | 170 | 58 | 34.1 | % | ||||||||||||||||||||
Health | 52 | 63 | (11 | ) | (17.5 | )% | 162 | 184 | (22 | ) | (12.0 | )% | ||||||||||||||||||
Corporate | (30 | ) | (42 | ) | 12 | NM | (95 | ) | (118 | ) | 23 | NM | ||||||||||||||||||
Total | $ | 203 | $ | 151 | $ | 52 | 34.4 | % | $ | 561 | $ | 458 | $ | 103 | 22.5 | % | ||||||||||||||
Operating income margin: | ||||||||||||||||||||||||||||||
Defense Solutions | 7.0 | % | 6.7 | % | 7.2 | % | 5.9 | % | ||||||||||||||||||||||
Civil | 10.5 | % | 6.0 | % | 9.0 | % | 6.7 | % | ||||||||||||||||||||||
Health | 11.7 | % | 13.6 | % | 12.3 | % | 13.5 | % | ||||||||||||||||||||||
Total | 7.9 | % | 6.0 | % | 7.4 | % | 6.0 | % |
September 28, 2018 | December 29, 2017 | |||||||
Defense Solutions: | ||||||||
Funded backlog | $ | 2,808 | $ | 2,384 | ||||
Negotiated unfunded backlog | 6,974 | 5,285 | ||||||
Total Defense Solutions backlog | $ | 9,782 | $ | 7,669 | ||||
Civil: | ||||||||
Funded backlog | $ | 2,243 | $ | 2,064 | ||||
Negotiated unfunded backlog | 5,144 | 5,321 | ||||||
Total Civil backlog | $ | 7,387 | $ | 7,385 | ||||
Health: | ||||||||
Funded backlog | $ | 1,104 | $ | 595 | ||||
Negotiated unfunded backlog | 2,047 | 1,827 | ||||||
Total Health backlog | $ | 3,151 | $ | 2,422 | ||||
Total: | ||||||||
Funded backlog | $ | 6,155 | $ | 5,043 | ||||
Negotiated unfunded backlog | 14,165 | 12,433 | ||||||
Total backlog | $ | 20,320 | $ | 17,476 |
• | Integration and restructuring costs – Represents integration, lease termination and severance costs related to the Company's acquisitions. |
• | Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets. |
• | Amortization of equity method investments – Represents the amortization of the fair value of the acquired equity method investments. |
• | Loss on sale of assets – Represents the loss on certain sales of real estate. |
• | Asset impairment charges – Represents impairments of long-lived tangible assets. |
• | Tax adjustments on assets held for sale – Represents tax benefits related to the Company's commercial cybersecurity business held for sale. |
• | Other tax adjustments – Primarily represents the tax impact of the prior year promissory note impairment and revised cumulative impact of the federal government enacted Tax Cuts and Jobs Act. |
Three Months Ended September 28, 2018 | ||||||||||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Tax adjustments on assets held for sale | Other tax adjustments | Non-GAAP results | ||||||||||||||||||||||
Operating income | $ | 203 | $ | 7 | $ | 50 | $ | 2 | $ | — | $ | — | $ | 262 | ||||||||||||||
Non-operating expense, net | (33 | ) | — | — | — | — | — | (33 | ) | |||||||||||||||||||
Income before income taxes | 170 | 7 | 50 | 2 | — | — | 229 | |||||||||||||||||||||
Income tax expense(1) | (23 | ) | (2 | ) | (13 | ) | (1 | ) | 1 | (17 | ) | (55 | ) | |||||||||||||||
Net income | 147 | 5 | 37 | 1 | 1 | (17 | ) | 174 | ||||||||||||||||||||
Less: net income attributable to non-controlling interest | — | — | — | — | — | — | — | |||||||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 147 | $ | 5 | $ | 37 | $ | 1 | $ | 1 | $ | (17 | ) | $ | 174 | |||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 0.96 | $ | 0.03 | $ | 0.24 | $ | 0.01 | $ | 0.01 | $ | (0.11 | ) | $ | 1.14 | |||||||||||||
Diluted shares | 153 | 153 | 153 | 153 | 153 | 153 | 153 |
Three Months Ended September 28, 2018 | ||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Non-GAAP results | ||||||||||||||||
Income before income taxes | $ | 170 | $ | 7 | $ | 50 | $ | 2 | $ | 229 | ||||||||||
Depreciation expense | 14 | — | — | — | 14 | |||||||||||||||
Amortization expense | 52 | — | (50 | ) | (2 | ) | — | |||||||||||||
Interest expense, net | 35 | — | — | — | 35 | |||||||||||||||
EBITDA | $ | 271 | $ | 7 | $ | — | $ | — | $ | 278 | ||||||||||
EBITDA margin | 10.5 | % | 10.8 | % |
Three Months Ended September 29, 2017 | ||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Non-GAAP results | ||||||||||||||||
Operating income | $ | 151 | $ | 27 | $ | 76 | $ | 2 | $ | 256 | ||||||||||
Non-operating expense, net | (35 | ) | — | — | — | (35 | ) | |||||||||||||
Income before income taxes | 116 | 27 | 76 | 2 | 221 | |||||||||||||||
Income tax expense(1) | (37 | ) | (10 | ) | (30 | ) | (1 | ) | (78 | ) | ||||||||||
Net income | 79 | 17 | 46 | 1 | 143 | |||||||||||||||
Less: net loss attributable to non-controlling interest | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Net income attributable to Leidos common stockholders | $ | 82 | $ | 17 | $ | 46 | $ | 1 | $ | 146 | ||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 0.53 | $ | 0.11 | $ | 0.30 | $ | 0.01 | $ | 0.95 | ||||||||||
Diluted shares | 154 | 154 | 154 | 154 | 154 |
Three Months Ended September 29, 2017 | ||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Non-GAAP results | ||||||||||||||||
Income before income taxes | $ | 116 | $ | 27 | $ | 76 | $ | 2 | $ | 221 | ||||||||||
Depreciation expense | 16 | — | — | — | 16 | |||||||||||||||
Amortization expense | 78 | — | (76 | ) | (2 | ) | — | |||||||||||||
Interest expense, net | 35 | — | — | — | 35 | |||||||||||||||
EBITDA | $ | 245 | $ | 27 | $ | — | $ | — | $ | 272 | ||||||||||
EBITDA margin | 9.8 | % | 10.9 | % |
Nine Months Ended September 28, 2018 | ||||||||||||||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Asset impairment charges | Tax adjustments on assets held for sale | Other tax adjustments | Non-GAAP results | |||||||||||||||||||||||||
Operating income | $ | 561 | $ | 32 | $ | 151 | $ | 7 | $ | 7 | $ | — | $ | — | $ | 758 | ||||||||||||||||
Non-operating expense, net | (101 | ) | — | — | — | — | — | — | (101 | ) | ||||||||||||||||||||||
Income before income taxes | 460 | 32 | 151 | 7 | 7 | — | — | 657 | ||||||||||||||||||||||||
Income tax expense(1) | (66 | ) | (8 | ) | (39 | ) | (2 | ) | (2 | ) | (17 | ) | (17 | ) | (151 | ) | ||||||||||||||||
Net income | 394 | 24 | 112 | 5 | 5 | (17 | ) | (17 | ) | 506 | ||||||||||||||||||||||
Less: net income attributable to non-controlling interest | 1 | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 393 | $ | 24 | $ | 112 | $ | 5 | $ | 5 | $ | (17 | ) | $ | (17 | ) | $ | 505 | ||||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 2.55 | $ | 0.16 | $ | 0.73 | $ | 0.03 | $ | 0.03 | $ | (0.11 | ) | $ | (0.11 | ) | $ | 3.28 | ||||||||||||||
Diluted shares | 154 | 154 | 154 | 154 | 154 | 154 | 154 | 154 |
Nine Months Ended September 28, 2018 | ||||||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Asset impairment charges | Non-GAAP results | |||||||||||||||||||
Income before income taxes | $ | 460 | $ | 32 | $ | 151 | $ | 7 | $ | 7 | $ | 657 | ||||||||||||
Depreciation expense | 42 | — | — | — | — | 42 | ||||||||||||||||||
Amortization expense | 158 | — | (151 | ) | (7 | ) | — | — | ||||||||||||||||
Interest expense, net | 104 | — | — | — | — | 104 | ||||||||||||||||||
EBITDA | $ | 764 | $ | 32 | $ | — | $ | — | $ | 7 | $ | 803 | ||||||||||||
EBITDA margin | 10.1 | % | 10.6 | % |
Nine Months Ended September 29, 2017 | ||||||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Loss on sale of assets | Non-GAAP results | |||||||||||||||||||
Operating income | $ | 458 | $ | 81 | $ | 212 | $ | 11 | $ | — | $ | 762 | ||||||||||||
Non-operating expense, net | (99 | ) | — | — | — | 1 | (98 | ) | ||||||||||||||||
Income before income taxes | 359 | 81 | 212 | 11 | 1 | 664 | ||||||||||||||||||
Income tax expense(1) | (108 | ) | (32 | ) | (82 | ) | (4 | ) | — | (226 | ) | |||||||||||||
Net income | 251 | 49 | 130 | 7 | 1 | 438 | ||||||||||||||||||
Less: net loss attributable to non-controlling interest | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 252 | $ | 49 | $ | 130 | $ | 7 | $ | 1 | $ | 439 | ||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 1.65 | $ | 0.32 | $ | 0.85 | $ | 0.04 | $ | 0.01 | $ | 2.87 | ||||||||||||
Diluted shares | 153 | 153 | 153 | 153 | 153 | 153 |
Nine Months Ended September 29, 2017 | ||||||||||||||||||||||||
As reported | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Loss on sale of assets | Non-GAAP results | |||||||||||||||||||
Income before income taxes | $ | 359 | $ | 81 | $ | 212 | $ | 11 | $ | 1 | $ | 664 | ||||||||||||
Depreciation expense | 42 | — | — | — | — | 42 | ||||||||||||||||||
Amortization expense | 223 | — | (212 | ) | (11 | ) | — | — | ||||||||||||||||
Interest expense, net | 105 | — | — | — | — | 105 | ||||||||||||||||||
EBITDA | $ | 729 | $ | 81 | $ | — | $ | — | $ | 1 | $ | 811 | ||||||||||||
EBITDA margin | 9.5 | % | 10.6 | % |
Three Months Ended September 28, 2018 | |||||||||||||||||||||||
Operating income (loss) | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Non-GAAP operating income (loss) | Non-GAAP operating margin | ||||||||||||||||||
Defense Solutions | $ | 88 | $ | — | $ | 17 | $ | — | $ | 105 | 8.4 | % | |||||||||||
Civil | 93 | — | 22 | 2 | 117 | 13.3 | % | ||||||||||||||||
Health | 52 | — | 11 | — | 63 | 14.2 | % | ||||||||||||||||
Corporate | (30 | ) | 7 | — | — | (23 | ) | NM | |||||||||||||||
Total | $ | 203 | $ | 7 | $ | 50 | $ | 2 | $ | 262 | 10.2 | % |
Three Months Ended September 29, 2017 | |||||||||||||||||||||||
Operating income (loss) | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Non-GAAP operating income (loss) | Non-GAAP operating margin | ||||||||||||||||||
Defense Solutions | $ | 80 | $ | — | $ | 21 | $ | — | $ | 101 | 8.4 | % | |||||||||||
Civil | 50 | — | 42 | 2 | 94 | 11.2 | % | ||||||||||||||||
Health | 63 | — | 13 | — | 76 | 16.4 | % | ||||||||||||||||
Corporate | (42 | ) | 27 | — | — | (15 | ) | NM | |||||||||||||||
Total | $ | 151 | $ | 27 | $ | 76 | $ | 2 | $ | 256 | 10.2 | % |
Nine Months Ended September 28, 2018 | |||||||||||||||||||||||||||
Operating income (loss) | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investment | Asset impairment charges | Non-GAAP operating income (loss) | Non-GAAP operating margin | |||||||||||||||||||||
Defense Solutions | $ | 266 | $ | — | $ | 51 | $ | — | $ | — | $ | 317 | 8.6 | % | |||||||||||||
Civil | 228 | — | 66 | 7 | — | 301 | 11.8 | % | |||||||||||||||||||
Health | 162 | — | 34 | — | — | 196 | 14.8 | % | |||||||||||||||||||
Corporate | (95 | ) | 32 | — | — | 7 | (56 | ) | NM | ||||||||||||||||||
Total | $ | 561 | $ | 32 | $ | 151 | $ | 7 | $ | 7 | $ | 758 | 10.0 | % |
Nine Months Ended September 29, 2017 | |||||||||||||||||||||||
Operating income (loss) | Integration and restructuring costs | Amortization of intangibles | Amortization of equity method investments | Non-GAAP operating income (loss) | Non-GAAP operating margin | ||||||||||||||||||
Defense Solutions | $ | 222 | $ | — | $ | 82 | $ | 2 | $ | 306 | 8.2 | % | |||||||||||
Civil | 170 | — | 98 | 9 | 277 | 10.8 | % | ||||||||||||||||
Health | 184 | — | 32 | — | 216 | 15.9 | % | ||||||||||||||||
Corporate | (118 | ) | 81 | — | — | (37 | ) | NM | |||||||||||||||
Total | $ | 458 | $ | 81 | $ | 212 | $ | 11 | $ | 762 | 10.0 | % |