Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Jan. 31, 2014

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):

Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect the spin-off of New SAIC for all periods presented as discontinued operations.

	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
	(in millions, except per share amounts)
Fiscal 2014 (3)
Revenues	$	1,597	$	1,462	$	1,418		$	1,295
Operating income (loss)	$	76	$	11	$	(5	)	$	82
Income (loss) from continuing operations (1)	$	40	$	5	$	(8	)	$	47
Income (loss) from discontinued operations	$	41	$	37	$	5		$	(3	)
Net income (loss) (1)	$	81	$	42	$	(3	)	$	44
Basic earnings (loss) per share (2)	$	0.43	$	0.06	$	(0.10	)	$	0.57
Diluted earnings (loss) per share (2)	$	0.43	$	0.06	$	(0.10	)	$	0.56
Fiscal 2013
Revenues	$	1,598	$	1,623	$	1,668		$	1,580
Operating income	$	116	$	111	$	105		$	91
Income from continuing operations (1)	$	57	$	61	$	58		$	148
Income from discontinued operations	$	60	$	49	$	54		$	38
Net income (1)	$	117	$	110	$	112		$	186
Basic earnings per share (2)	$	0.67	$	0.72	$	0.70		$	1.73
Diluted earnings per share (2)	$	0.67	$	0.72	$	0.70		$	1.73

All per share amounts presented give effect to the one-for-four reverse stock split completed on September 27, 2013.

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

(2) Earnings per share are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.

(3) Fiscal 2014 quarterly results include increased charges related to intangible asset impairment charges (second quarter charge was $30 million and another charge in the third quarter of $19 million), bad debt expense (third quarter expense was $42 million) and separation transaction and restructuring expenses (approximately $33 million in the first and second quarters combined, $25 million in the third quarter, and $7 million in the fourth quarter). For further information see, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

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 the last two fiscal years was as follows:

	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
	(in millions)
Fiscal 2014
Income (loss) from continuing operations	$	40	$	20	$	(19	)	$	45
Net income (loss)	$	81	$	42	$	(3	)	$	46
Fiscal 2013
Income from continuing operations	$	57	$	61	$	58		$	149
Net income	$	117	$	110	$	112		$	187

Leidos, Inc.

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):

Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect the spin-off of New SAIC for all periods presented as discontinued operations.

	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
	(in millions, except per share amounts)
Fiscal 2014 (3)
Revenues	$	1,597	$	1,462	$	1,418		$	1,295
Operating income (loss)	$	76	$	11	$	(5	)	$	82
Income (loss) from continuing operations (1)	$	40	$	5	$	(8	)	$	47
Income (loss) from discontinued operations	$	41	$	37	$	5		$	(3	)
Net income (loss) (1)	$	81	$	42	$	(3	)	$	44
Basic earnings (loss) per share (2)	$	0.43	$	0.06	$	(0.10	)	$	0.57
Diluted earnings (loss) per share (2)	$	0.43	$	0.06	$	(0.10	)	$	0.56
Fiscal 2013
Revenues	$	1,598	$	1,623	$	1,668		$	1,580
Operating income	$	116	$	111	$	105		$	91
Income from continuing operations (1)	$	57	$	61	$	58		$	148
Income from discontinued operations	$	60	$	49	$	54		$	38
Net income (1)	$	117	$	110	$	112		$	186
Basic earnings per share (2)	$	0.67	$	0.72	$	0.70		$	1.73
Diluted earnings per share (2)	$	0.67	$	0.72	$	0.70		$	1.73

All per share amounts presented give effect to the one-for-four reverse stock split completed on September 27, 2013.

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

(2) Earnings per share are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.

(3) Fiscal 2014 quarterly results include increased charges related to intangible asset impairment charges (second quarter charge was $30 million and another charge in the third quarter of $19 million), bad debt expense (third quarter expense was $42 million) and separation transaction and restructuring expenses (approximately $33 million in the first and second quarters combined, $25 million in the third quarter, and $7 million in the fourth quarter). For further information see, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

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 the last two fiscal years was as follows:

	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
	(in millions)
Fiscal 2014
Income (loss) from continuing operations	$	40	$	20	$	(19	)	$	45
Net income (loss)	$	81	$	42	$	(3	)	$	46
Fiscal 2013
Income from continuing operations	$	57	$	61	$	58		$	149
Net income	$	117	$	110	$	112		$	187