Dispositions

3 Months Ended

Apr. 01, 2016

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Dispositions

Divestitures:

Dispositions

In February 2015, the Company committed to a plan to dispose of a business, historically included within the Company’s Health and Infrastructure Sector segment, that is primarily focused on providing design, build and heavy construction engineering services. The Company has presented the associated assets and liabilities of the business as "Held for Sale" in the Company's condensed consolidated balance sheets as of April 1, 2016 as it is probable the sale will close within one year. "Receivables, net" and "Accounts payable and accrued liabilities" of $94 million and $80 million, respectively, represent the major classes of assets and liabilities classified as held for sale. The planned disposition does not represent a strategic shift in operations that will have a material effect on the Company's operations and financial results, and accordingly was not presented as discontinued operations. The sale was completed on April 15, 2016, see "Note 12–Subsequent Events".

Plainfield Renewable Energy Holdings LLC

In March 2015, the Company entered into a definitive Membership Interest Purchase Agreement (the "Agreement") to sell 100% of the equity membership interest in Plainfield Renewable Energy Holdings, LLC ("Plainfield") resulting in an approximate $40 million impairment charge in the Company's Health and Infrastructure Sector segment in January 2015 to adjust the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business (Level 1). The Company recorded the tangible asset impairment charges in "Asset impairment charges" in the Company’s condensed consolidated statements of income.

On July 24, 2015, the Company completed the sale of its equity interests in Plainfield for an aggregate consideration of $102 million, subject to certain adjustments, and contingent earn-out payments. The consideration received by the Company at closing consisted of a cash payment of approximately $29 million and a secured promissory note for approximately $73 million, net of discount (the “Note”). The Note allows for a six-month deferral of certain payments due on January 2016 and July 2016. In January 2016, the Company was notified by the buyer that the interest payment due on January 24, 2016, will be deferred to the next payment due date in July 2016. As of April 1, 2016, the Company expects the Note to be collectible in full.

Discontinued Operations

Separation of New SAIC

The Company completed the spin-off of New SAIC on September 27, 2013. New SAIC was a subsidiary of Leidos prior to the separation date. The spin-off was consummated pursuant to the terms of a Distribution Agreement and several other agreements entered into between the Company and New SAIC on September 25, 2013. These agreements govern the treatment of existing contracts, proposals, and teaming arrangements where New SAIC will jointly perform work after separation on Leidos contracts.

The operating results of the Company's discontinued operations discussed above for the periods presented were as follows:

	Three Months Ended
	April 1, 2016		April 3, 2015
	(in millions)
Revenues	$	3	$	8
Costs and expenses:
Cost of revenues	3		7
Selling, general and administrative expenses	—		3
Operating loss	$	—	$	(2	)
Non-operating income	$	—	$	2

Leidos, Inc.

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Dispositions

Divestitures:

Dispositions

In February 2015, the Company committed to a plan to dispose of a business, historically included within the Company’s Health and Infrastructure Sector segment, that is primarily focused on providing design, build and heavy construction engineering services. The Company has presented the associated assets and liabilities of the business as "Held for Sale" in the Company's condensed consolidated balance sheets as of April 1, 2016 as it is probable the sale will close within one year. "Receivables, net" and "Accounts payable and accrued liabilities" of $94 million and $80 million, respectively, represent the major classes of assets and liabilities classified as held for sale. The planned disposition does not represent a strategic shift in operations that will have a material effect on the Company's operations and financial results, and accordingly was not presented as discontinued operations. The sale was completed on April 15, 2016, see "Note 12–Subsequent Events".

Plainfield Renewable Energy Holdings LLC

In March 2015, the Company entered into a definitive Membership Interest Purchase Agreement (the "Agreement") to sell 100% of the equity membership interest in Plainfield Renewable Energy Holdings, LLC ("Plainfield") resulting in an approximate $40 million impairment charge in the Company's Health and Infrastructure Sector segment in January 2015 to adjust the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business (Level 1). The Company recorded the tangible asset impairment charges in "Asset impairment charges" in the Company’s condensed consolidated statements of income.

On July 24, 2015, the Company completed the sale of its equity interests in Plainfield for an aggregate consideration of $102 million, subject to certain adjustments, and contingent earn-out payments. The consideration received by the Company at closing consisted of a cash payment of approximately $29 million and a secured promissory note for approximately $73 million, net of discount (the “Note”). The Note allows for a six-month deferral of certain payments due on January 2016 and July 2016. In January 2016, the Company was notified by the buyer that the interest payment due on January 24, 2016, will be deferred to the next payment due date in July 2016. As of April 1, 2016, the Company expects the Note to be collectible in full.

Discontinued Operations

Separation of New SAIC

The Company completed the spin-off of New SAIC on September 27, 2013. New SAIC was a subsidiary of Leidos prior to the separation date. The spin-off was consummated pursuant to the terms of a Distribution Agreement and several other agreements entered into between the Company and New SAIC on September 25, 2013. These agreements govern the treatment of existing contracts, proposals, and teaming arrangements where New SAIC will jointly perform work after separation on Leidos contracts.

The operating results of the Company's discontinued operations discussed above for the periods presented were as follows:

	Three Months Ended
	April 1, 2016		April 3, 2015
	(in millions)
Revenues	$	3	$	8
Costs and expenses:
Cost of revenues	3		7
Selling, general and administrative expenses	—		3
Operating loss	$	—	$	(2	)
Non-operating income	$	—	$	2