Restructuring Expenses

3 Months Ended

Apr. 01, 2016

Restructuring Cost and Reserve [Line Items]

Restructuring Expenses

Restructuring Expenses:

In fiscal 2014, in anticipation of the spin-off of New SAIC from the Company, the Company initiated an overall spin-off program to align the Company’s cost structure for post spin-off. The Company reduced headcount and reduced its real estate footprint by vacating facilities that are not necessary for its future requirements. The Company has continued its real estate optimization initiatives post separation to improve its cost profile and has exited real estate leases and incurred restructuring charges consisting of various expenses such as lease termination fees, asset impairment charges and lease vacancy reserves.

For the quarter ended April 3, 2015, the Company incurred $2 million of lease termination expenses in its Corporate and Other segment related to an adjustment to reserves established in prior years for loss on leases in connection with vacating facilities and revised sublease income assumptions from the spin-off of New SAIC. The restructuring liability for lease termination expenses as of April 1, 2016, decreased by $1 million to $6 million from January 1, 2016, due to the relief of the liability from the related rent cash payments. The Company expects the restructuring liability to be fully settled beyond one year and expects to incur additional facility restructuring costs in connection with the Transactions (see "Note 2–Lockheed Martin Transaction").

Leidos, Inc.

Restructuring Cost and Reserve [Line Items]

Restructuring Expenses

Restructuring Expenses:

In fiscal 2014, in anticipation of the spin-off of New SAIC from the Company, the Company initiated an overall spin-off program to align the Company’s cost structure for post spin-off. The Company reduced headcount and reduced its real estate footprint by vacating facilities that are not necessary for its future requirements. The Company has continued its real estate optimization initiatives post separation to improve its cost profile and has exited real estate leases and incurred restructuring charges consisting of various expenses such as lease termination fees, asset impairment charges and lease vacancy reserves.

For the quarter ended April 3, 2015, the Company incurred $2 million of lease termination expenses in its Corporate and Other segment related to an adjustment to reserves established in prior years for loss on leases in connection with vacating facilities and revised sublease income assumptions from the spin-off of New SAIC. The restructuring liability for lease termination expenses as of April 1, 2016, decreased by $1 million to $6 million from January 1, 2016, due to the relief of the liability from the related rent cash payments. The Company expects the restructuring liability to be fully settled beyond one year and expects to incur additional facility restructuring costs in connection with the Transactions (see "Note 2–Lockheed Martin Transaction").