Earnings Per Share (EPS)

3 Months Ended

Apr. 01, 2016

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Earnings Per Share (EPS)

Earnings Per Share (EPS):

Basic EPS is computed by dividing income less earnings allocable to participating securities by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards. The Company is required to allocate a portion of its earnings to its unvested stock awards containing nonforfeitable rights to dividends or dividend equivalents (participating securities) in calculating EPS using the two-class method.

The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented:

	Three Months Ended
	April 1, 2016	April 3, 2015
	(in millions)
Basic weighted average number of shares outstanding	72	73
Dilutive common share equivalents—stock options and other stock awards	2	2
Diluted weighted average number of shares outstanding	74	75

Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS. For the quarter ended April 1, 2016, there were a total of 1 million outstanding stock options and vesting stock awards that were antidilutive for the period. For the quarter ended April 3, 2015, there were 1 million of outstanding stock option awards that were antidilutive.

Leidos, Inc.

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Earnings Per Share (EPS)

Earnings Per Share (EPS):

Basic EPS is computed by dividing income less earnings allocable to participating securities by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards. The Company is required to allocate a portion of its earnings to its unvested stock awards containing nonforfeitable rights to dividends or dividend equivalents (participating securities) in calculating EPS using the two-class method.

The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented:

	Three Months Ended
	April 1, 2016	April 3, 2015
	(in millions)
Basic weighted average number of shares outstanding	72	73
Dilutive common share equivalents—stock options and other stock awards	2	2
Diluted weighted average number of shares outstanding	74	75

Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS. For the quarter ended April 1, 2016, there were a total of 1 million outstanding stock options and vesting stock awards that were antidilutive for the period. For the quarter ended April 3, 2015, there were 1 million of outstanding stock option awards that were antidilutive.