Business Segment Information

6 Months Ended

Jul. 03, 2015

Segment Reporting Information [Line Items]

Business Segment Information

Business Segment Information:

The Company defines its reportable segments based on the way the chief operating decision maker ("CODM"), currently its chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. The Company has the following reportable segments: National Security Solutions, Health and Engineering, and Corporate and Other.

The segment information for the periods presented was as follows:

	Three Months Ended						Six Months Ended
	July 3, 2015			August 1, 2014			July 3, 2015			August 1, 2014
	(in millions)
Revenues:
National Security Solutions	$	879		$	925		$	1,741		$	1,869
Health and Engineering	379			381			764			753
Corporate and Other	(1		)	—			(2		)	(4		)
Total revenues	$	1,257		$	1,306		$	2,503		$	2,618
Operating income (loss):
National Security Solutions	$	74		$	78		$	136		$	155
Health and Engineering	(7		)	(482		)	(14		)	(459		)
Corporate and Other	(3		)	(6		)	(20		)	(19		)
Total operating income (loss)	$	64		$	(410	)	$	102		$	(323	)

Asset information by segment is not a key measure of performance used by the CODM. Interest income, interest expense, and provision for income taxes, as reported in the condensed consolidated financial statements, are not part of operating income and are primarily recorded at the corporate level. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in numerous indirect cost pools which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base.

Leidos, Inc.

Segment Reporting Information [Line Items]

Business Segment Information

Business Segment Information:

The Company defines its reportable segments based on the way the chief operating decision maker ("CODM"), currently its chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. The Company has the following reportable segments: National Security Solutions, Health and Engineering, and Corporate and Other.

The segment information for the periods presented was as follows:

	Three Months Ended						Six Months Ended
	July 3, 2015			August 1, 2014			July 3, 2015			August 1, 2014
	(in millions)
Revenues:
National Security Solutions	$	879		$	925		$	1,741		$	1,869
Health and Engineering	379			381			764			753
Corporate and Other	(1		)	—			(2		)	(4		)
Total revenues	$	1,257		$	1,306		$	2,503		$	2,618
Operating income (loss):
National Security Solutions	$	74		$	78		$	136		$	155
Health and Engineering	(7		)	(482		)	(14		)	(459		)
Corporate and Other	(3		)	(6		)	(20		)	(19		)
Total operating income (loss)	$	64		$	(410	)	$	102		$	(323	)

Asset information by segment is not a key measure of performance used by the CODM. Interest income, interest expense, and provision for income taxes, as reported in the condensed consolidated financial statements, are not part of operating income and are primarily recorded at the corporate level. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in numerous indirect cost pools which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base.