Acquisitions Acquisitions (Tables)

6 Months Ended

Jul. 03, 2020

Business Combinations [Abstract]

Preliminary Purchase Consideration

The preliminary purchase consideration for the acquisition of the SD&A Businesses was as follows (in millions):

Cash paid at closing	$	1,015
Preliminary working capital adjustments	21
Preliminary purchase price	$	1,036

Schedule of preliminary fair values of the assets acquired and liabilities assumed

The preliminary fair values of total net assets acquired at the Transaction Date was $1,036 million, which included the following (in millions):

Receivables	$	134
Inventory	101
Intangible assets	280
Goodwill	599

The preliminary fair values of the assets acquired and liabilities assumed at the Acquisition Date were as follows (in millions):

Cash	$	18
Receivables	159
Inventory	47
Other current assets	22
Operating lease right-of-use assets	25
Property, plant and equipment	173
Intangible assets	544
Other assets	9
Accounts payable and accrued liabilities	(48)
Accrued payroll and employee benefits	(29)
Operating lease liabilities	(20)
Other long-term liabilities	(4)
Total identifiable net assets acquired	896
Goodwill	764
Purchase price	$	1,660

Schedule of preliminary fair values of intangible assets acquired and related weighted average amortization periods

The following table summarizes the preliminary fair value of intangible assets acquired at the Transaction Date and the related weighted average amortization period:

	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	7	$	117
Software and technology	10	140
Trade name	5	23
Total	8	$	280

The following table summarizes the preliminary fair value of intangible assets acquired at the Acquisition Date and the related weighted average amortization period:

	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	15	$	500
Backlog	1	33
Technology	11	11
Total	14	$	544

Acquisition expenses incurred

The following expenses were incurred related to the acquisitions of Dynetics and the SD&A Businesses:

	Three Months Ended		Six Months Ended
	July 3, 2020		July 3, 2020
	(in millions)
Acquisition costs	$	12	$	23
Integration costs	3		3
Total acquisition and integration costs	$	15	$	26

Acquisition pro forma information

The pro forma information is not intended to reflect the actual results of operations that would have occurred if the acquisitions had been completed on December 29, 2018, nor is it intended to be an indication of future operating results.

	Three Months Ended				Six Months Ended
	July 3, 2020		June 28, 2019		July 3, 2020		June 28, 2019
	(in millions, except per share amounts)
Revenues	$	2,984	$	3,027	$	6,060	$	5,854
Net income	147		107		271		254
Net income attributable to Leidos common stockholders	146		105		270		252
Earnings per share:
Basic	$	1.03	$	0.73	$	1.90	$	1.75
Diluted	1.01		0.72		1.88		1.73