UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to  

Commission file number 001-33072

Leidos Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware			20-3562868
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
1750 Presidents Street,	Reston,	Virginia	20190
(Address of principal executive offices)			(Zip Code)

(571) 526-6000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, par value $.0001 per share	LDOS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐   No  ☒  

The number of shares issued and outstanding of each of the issuer’s classes of common stock as of October 25, 2022, was 136,689,557 shares of common stock ($.0001 par value per share).

LEIDOS HOLDINGS, INC.

FORM 10-Q

TABLE OF CONTENTS

Part I		Page
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
	Note 1–Basis of Presentation and Summary of Significant Accounting Policies	7
	Note 2–Revenues from Contracts with Customers	9
	Note 3–Acquisitions, Divestitures, Goodwill and Intangible Assets	12
	Note 4–Fair Value Measurements	14
	Note 5–Derivative Instruments	15
	Note 6–Debt	16
	Note 7–Accumulated Other Comprehensive Income (Loss)	18
	Note 8–Earnings Per Share	18
	Note 9–Income Taxes	19
	Note 10–Business Segments	19
	Note 11–Commitments and Contingencies	21
	Note 12–Subsequent Events	22
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
	Overview	23
	Business Environment and Trends	24
	Results of Operations	24
	Bookings and Backlog	27
	Liquidity and Capital Resources	27
	Off-Balance Sheet Arrangements	29
	Guarantor and Issuer of Guaranteed Securities	30
	Contractual Obligations and Commitments	30
	Critical Accounting Policies	30
	Recently Adopted and Issued Accounting Standards	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
Part II
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
Signatures		34

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Cash and cash equivalents	$	807	$	727
Receivables, net	2,284		2,189
Inventory, net	286		274
Other current assets	464		429
Total current assets	3,841		3,619
Property, plant and equipment, net	671		670
Intangible assets, net	977		1,177
Goodwill	6,618		6,744
Operating lease right-of-use assets, net	593		612
Other long-term assets	399		439
Total assets	$	13,099	$	13,261
Liabilities:
Accounts payable and accrued liabilities	$	2,301	$	2,141
Accrued payroll and employee benefits	813		605
Short-term debt and current portion of long-term debt	1,027		483
Total current liabilities	4,141		3,229
Long-term debt, net of current portion	3,975		4,593
Operating lease liabilities	591		589
Deferred tax liabilities	24		239
Other long-term liabilities	229		267
Total liabilities	8,960		8,917
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.0001 par value, 500 million shares authorized, 137 million and 140 million shares issued and outstanding at September 30, 2022, and December 31, 2021, respectively	—		—
Additional paid-in capital	1,982		2,423
Retained earnings	2,239		1,880
Accumulated other comprehensive loss	(135)		(12)
Total Leidos stockholders’ equity	4,086		4,291
Non-controlling interest	53		53
Total stockholders' equity	4,139		4,344
Total liabilities and stockholders' equity	$	13,099	$	13,261

See accompanying notes to condensed consolidated financial statements.

1

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended				Nine Months Ended
	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
	(in millions, except per share amounts)
Revenues	$	3,608	$	3,483	$	10,699	$	10,246
Cost of revenues	3,095		2,942		9,136		8,740
Selling, general and administrative expenses	233		233		727		625
Bad debt expense (recoveries)	(1)		(1)		3		(11)
Acquisition, integration and restructuring costs	4		6		12		21
Asset impairment charges	—		3		3		3
Equity earnings of non-consolidated subsidiaries	(4)		(5)		(5)		(14)
Operating income	281		305		823		882
Non-operating expense:
Interest expense, net	(50)		(47)		(148)		(138)
Other (expense) income, net	(10)		2		(7)		1
Income before income taxes	221		260		668		745
Income tax expense	(57)		(52)		(155)		(162)
Net income	$	164	$	208	$	513	$	583
Less: net income attributable to non-controlling interest	2		3		5		4
Net income attributable to Leidos common stockholders	$	162	$	205	$	508	$	579
Earnings per share:
Basic	$	1.18	$	1.45	$	3.71	$	4.11
Diluted	1.17		1.43		3.68		4.05

See accompanying notes to condensed consolidated financial statements.

2

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended				Nine Months Ended
	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
	(in millions)
Net income	$	164	$	208	$	513	$	583
Foreign currency translation adjustments	(75)		(29)		(158)		(12)
Unrecognized gain on derivative instruments	18		4		54		18
Pension adjustments	1		—		(19)		—
Total other comprehensive (loss) income, net of taxes	(56)		(25)		(123)		6
Comprehensive income	108		183		390		589
Less: net income attributable to non-controlling interest	2		3		5		4
Comprehensive income attributable to Leidos common stockholders	$	106	$	180	$	385	$	585

See accompanying notes to condensed consolidated financial statements.

3

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

	Shares of common stock	Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Leidos stockholders' equity		Non-controlling interest		Total stockholders' equity
	(in millions, except for per share amounts)
Balance at December 31, 2021	140	$	2,423	$	1,880	$	(12)	$	4,291	$	53	$	4,344
Net income	—	—		175		—		175		2		177
Other comprehensive income, net of taxes	—	—		—		32		32		—		32
Issuances of stock	1	15		—		—		15		—		15
Repurchases of stock and other	(4)	(526)		—		—		(526)		—		(526)
Dividends of $0.36 per share	—	—		(48)		—		(48)		—		(48)
Stock-based compensation	—	16		—		—		16		—		16
Capital distributions to non-controlling interest	—	—		—		—		—		(2)		(2)
Balance at April 1, 2022	137	$	1,928	$	2,007	$	20	$	3,955	$	53	$	4,008
Net income	—	—		171		—		171		1		172
Other comprehensive loss, net of taxes	—	—		—		(99)		(99)		—		(99)
Issuances of stock	—	10		—		—		10		—		10
Repurchases of stock and other	—	(2)		—		—		(2)		—		(2)
Dividends of $0.36 per share	—	—		(50)		—		(50)		—		(50)
Stock-based compensation	—	19		—		—		19		—		19
Capital distributions to non-controlling interest	—	—		—		—		—		(1)		(1)
Balance at July 1, 2022	137	$	1,955	$	2,128	$	(79)	$	4,004	$	53	$	4,057
Net income	—	—		162		—		162		2		164
Other comprehensive loss, net of taxes	—	—		—		(56)		(56)		—		(56)
Issuances of stock	—	13		—		—		13		—		13
Repurchases of stock and other	—	(4)		—		—		(4)		—		(4)
Dividends of $0.36 per share	—	—		(51)		—		(51)		—		(51)
Stock-based compensation	—	18		—		—		18		—		18
Capital distributions to non-controlling interest	—	—		—		—		—		(2)		(2)
Balance at September 30, 2022	137	$	1,982	$	2,239	$	(135)	$	4,086	$	53	$	4,139

See accompanying notes to condensed consolidated financial statements.

4

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

	Shares of common stock	Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Leidos stockholders' equity		Non-controlling interest		Total stockholders' equity
	(in millions, except for per share amounts)
Balance at January 1, 2021	142	$	2,580	$	1,328	$	(46)	$	3,862	$	9	$	3,871
Net income	—	—		205		—		205		—		205
Other comprehensive income, net of taxes	—	—		—		9		9		—		9
Issuances of stock	—	14		—		—		14		—		14
Repurchases of stock and other	(1)	(123)		—		—		(123)		—		(123)
Dividends of $0.34 per share	—	—		(49)		—		(49)		—		(49)
Stock-based compensation	—	15		—		—		15		—		15
Capital contributions from non-controlling interest	—	—		—		—		—		38		38
Balance at April 2, 2021	141	$	2,486	$	1,484	$	(37)	$	3,933	$	47	$	3,980
Net income	—	—		169		—		169		1		170
Other comprehensive income, net of taxes	—	—		—		22		22		—		22
Issuances of stock	1	9		—		—		9		—		9
Repurchases of stock and other	—	(3)		—		—		(3)		—		(3)
Dividends of $0.34 per share	—	—		(48)		—		(48)		—		(48)
Stock-based compensation	—	17		—		—		17		—		17
Capital contributions from non-controlling interest	—	—		—		—		—		1		1
Balance at July 2, 2021	142	$	2,509	$	1,605	$	(15)	$	4,099	$	49	$	4,148
Net income	—	—		205		—		205		3		208
Other comprehensive loss, net of taxes	—	—		—		(25)		(25)		—		(25)
Issuances of stock	—	11		—		—		11		—		11
Repurchases of stock and other	(2)	(140)		—		—		(140)		—		(140)
Dividends of $0.36 per share	—	—		(52)		—		(52)		—		(52)
Stock-based compensation	—	17		—		—		17		—		17
Net capital distributions to non-controlling interest	—	—		—		—		—		(1)		(1)
Balance at October 1, 2021	140	$	2,397	$	1,758	$	(40)	$	4,115	$	51	$	4,166

See accompanying notes to condensed consolidated financial statements.

5

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended
	September 30, 2022		October 1, 2021
	(in millions)
Cash flows from operations:
Net income	$	513	$	583
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	249		244
Stock-based compensation	53		49
Asset impairment charges	3		3
Deferred income taxes	(221)		4
Other	21		(11)
Change in assets and liabilities, net of effects of acquisitions:
Receivables	(138)		(103)
Other current assets and other long-term assets	132		161
Accounts payable and accrued liabilities and other long-term liabilities	(57)		(172)
Accrued payroll and employee benefits	217		83
Income taxes receivable/payable	109		(20)
Net cash provided by operating activities	881		821
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(2)		(622)
Divestiture of a business	15		—
Payments for property, equipment and software	(76)		(71)
Net proceeds from sale of assets	6		—
Other	2		—
Net cash used in investing activities	(55)		(693)
Cash flows from financing activities:
Proceeds from debt issuance	380		380
Repayments of borrowings	(459)		(80)
Dividend payments	(149)		(149)
Repurchases of stock and other	(532)		(266)
Net capital (distributions to) contributions from non-controlling interests	(5)		38
Proceeds from issuances of stock	35		33
Net cash used in financing activities	(730)		(44)
Net increase in cash, cash equivalents and restricted cash	96		84
Cash, cash equivalents and restricted cash at beginning of period	875		687
Cash, cash equivalents and restricted cash at end of period	971		771
Less: restricted cash at end of period	164		184
Cash and cash equivalents at end of period	$	807	$	587
Supplementary cash flow information:
Cash paid for income taxes, net of refunds	$	166	$	179
Cash paid for interest	136		128
Non-cash investing activity:
Property, plant and equipment additions	$	7	$	1
Non-cash financing activity:
Finance lease obligations	$	1	$	50

See accompanying notes to condensed consolidated financial statements.

6

LEIDOS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1–Basis of Presentation and Summary of Significant Accounting Policies

Nature of Operations and Basis of Presentation

Leidos Holdings, Inc. ("Leidos"), a Delaware corporation, is a holding company whose direct 100%-owned subsidiary and principal operating company is Leidos, Inc. Leidos is a FORTUNE 500® technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil and health markets, both domestically and internationally. Leidos' customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security, the Federal Aviation Administration, the Department of Veterans Affairs and many other U.S. civilian, state and local government agencies, foreign government agencies and commercial businesses. Unless indicated otherwise, references to "we," "us" and "our" refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. We operate in three reportable segments: Defense Solutions, Civil and Health. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate.

We have a controlling interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Centerra Group, LLC. We also have a controlling interest in Hanford Mission Integration Solutions, LLC ("HMIS"), the legal entity for the follow-on contract to MSA's contract and a joint venture with Centerra Group, LLC and Parsons Government Services, Inc. The financial results for MSA and HMIS are consolidated into our unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include the balances of all voting interest entities in which Leidos has a controlling voting interest ("subsidiaries") and a variable interest entity ("VIE") in which Leidos is the primary beneficiary. The consolidated balances of the VIE are not material to the unaudited condensed consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.

The accompanying unaudited condensed financial information has been prepared in accordance with the rules of the U.S. Securities and Exchange Commission and accounting principles generally accepted in the United States of America ("GAAP"). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to estimated profitability of long-term contracts, indirect billing rates, allowances for doubtful accounts, inventories, right-of-use assets and lease liabilities, fair value and impairment of intangible assets and goodwill, income taxes, stock-based compensation expense and contingencies. These estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates.

Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. We combined "Capital distributions to non-controlling interests" and "Capital contributions from non-controlling interests" into "Net capital (distributions to) contributions from non-controlling interests" on the condensed consolidated statements of cash flows.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which consist of normal recurring adjustments, necessary for a fair presentation thereof. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K filed on February 15, 2022.

7

LEIDOS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Accounting Standards Updates ("ASU") Adopted

ASU 2021-08, Business Combinations (Topic 805)

In October 2021, the FASB issued ASU 2021-08, which amends how contract assets and liabilities acquired in a business combination are measured. Current guidance requires contract assets and liabilities to be measured at fair value in accordance with ASC 805, Business Combinations. The amendments in this update remove the requirement to measure contract assets and liabilities at fair value and instead require that they be recognized in accordance with ASC 606, Revenue from Contracts with Customers. The amendments in this update are effective for public business entities for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and must be applied prospectively. Early adoption is permitted.

We adopted the requirements of ASU 2021-08 using the prospective method effective the first day of fiscal 2022. For business combinations occurring after adoption, we will measure contract assets and liabilities acquired in accordance with ASC 606.

Accounting Standards Updates Issued But Not Yet Adopted

ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848)

In March 2020, the FASB issued ASU 2020-04 which provides companies with optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This update provides optional expedients for applying accounting guidance to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of the reference rate reform. The amendments in this update are effective for all entities as of March 2020 and can be adopted using a prospective approach no later than December 31, 2022.

In January 2021, the FASB issued ASU 2021-01 which amends the scope of ASU 2020-04. The amendments in this update are elective and provide optional relief for entities with hedge accounting and contract modifications affected by the discounting transition through December 31, 2022. In October 2022, the FASB affirmed a decision to defer the expiration date of this optional relief until December 31, 2024. We anticipate an ASU formalizing this decision to be approved and issued during the last quarter of fiscal 2022. Under this relief, entities may continue to account for contract modifications as a continuation of the existing contract and the continuation of the hedge accounting arrangement. We are currently evaluating the impacts of the reference rate reform. Except for our new $380 million term loan entered into on May 6, 2022 (see "Note 6–Debt"), we currently use the one-month LIBOR for which the rate publication will cease in June 2023.

Changes in Estimates on Contracts

Changes in estimates related to contracts accounted for using the cost-to-cost method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes, with the exception of contracts acquired through a business combination, where the adjustment is made for the period commencing from the date of acquisition.

Changes in estimates on contracts were as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
	(in millions, except per share amounts)
Favorable impact	$	36	$	47	$	116	$	115
Unfavorable impact	(29)		(24)		(75)		(72)
Net impact to income before income taxes	$	7	$	23	$	41	$	43
Impact on diluted EPS attributable to Leidos common stockholders	$	0.03	$	0.12	$	0.22	$	0.22

The impact on diluted earnings per share ("EPS") attributable to Leidos common stockholders is calculated using the statutory tax rate.

8

LEIDOS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Revenue Recognized from Prior Obligations

Revenue recognized from performance obligations satisfied in previous periods was $6 million and $38 million for the three and nine months ended September 30, 2022, respectively, and $17 million and $35 million for the three and nine months ended October 1, 2021, respectively. The changes primarily related to revisions of variable consideration including award and incentive fees, and revisions to estimates at completion resulting from changes in contract scope, mitigation of contract risks or true-ups of contract estimates at the end of contract performance.

Cash and Cash Equivalents

Our cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. At September 30, 2022, and December 31, 2021, $178 million and $138 million, respectively, of outstanding payments were included within "Cash and cash equivalents" and "Accounts payable and accrued liabilities" correspondingly on the condensed consolidated balance sheets.

Restricted Cash

We have restricted cash balances, primarily representing advances from customers that are restricted for use on certain expenditures related to that customer's contract. Restricted cash balances are included as "Other current assets" in the condensed consolidated balance sheets. Our restricted cash balances were $164 million and $148 million at September 30, 2022, and December 31, 2021, respectively.

Note 2–Revenues from Contracts with Customers

Remaining Performance Obligations

Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

As of September 30, 2022, we had $14.3 billion of RPO and expect to recognize approximately 60% and 77% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.

Disaggregation of Revenues

We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.

Disaggregated revenues by customer-type were as follows:

	Three Months Ended September 30, 2022								Nine Months Ended September 30, 2022
	Defense Solutions		Civil		Health		Total		Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	1,559	$	22	$	255	$	1,836	$	4,620	$	62	$	732	$	5,414
Other U.S. government agencies(1)	236		676		372		1,284		686		1,949		1,177		3,812
Commercial and non-U.S. customers	280		151		28		459		869		446		83		1,398
Total	$	2,075	$	849	$	655	$	3,579	$	6,175	$	2,457	$	1,992	$	10,624

9

LEIDOS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	Three Months Ended October 1, 2021								Nine Months Ended October 1, 2021
	Defense Solutions		Civil		Health		Total		Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	1,513	$	19	$	203	$	1,735	$	4,386	$	45	$	545	$	4,976
Other U.S. government agencies(1)	215		619		450		1,284		724		1,849		1,292		3,865
Commercial and non-U.S. customers	281		121		28		430		859		377		80		1,316
Total	$	2,009	$	759	$	681	$	3,449	$	5,969	$	2,271	$	1,917	$	10,157

(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.

Disaggregated revenues by contract-type were as follows:

	Three Months Ended September 30, 2022								Nine Months Ended September 30, 2022
	Defense Solutions		Civil		Health		Total		Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	1,166	$	442	$	200	$	1,808	$	3,493	$	1,293	$	534	$	5,320
Firm-fixed-price	668		279		389		1,336		1,950		792		1,260		4,002
Time-and-materials and fixed-price-level-of-effort	241		128		66		435		732		372		198