LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

September 30,
 2016

January 1,
 2016

ASSETS

Current assets:

Cash and cash equivalents

$

449

$

656

Receivables, net

1,677

921

Inventory, prepaid expenses and other current assets

430

216

Total current assets

2,556

1,793

Property, plant and equipment, net

231

142

Intangible assets, net

1,643

25

Goodwill

4,874

1,207

Deferred income taxes

15

8

Other assets

260

195

$

9,579

$

3,370

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

1,458

$

761

Accrued payroll and employee benefits

454

268

Dividends payable

23

2

Income taxes payable

3

6

  Notes payable and long-term debt, current portion

42

2

  Liabilities of discontinued operations

—

1

    Total current liabilities

1,980

1,040

Notes payable and long-term debt, net of current portion

3,428

1,079

Deferred tax liabilities

867

34

Other long-term liabilities

174

149

Commitments and contingencies

Stockholders' equity:

 Preferred stock, $.0001 par value, 10 million shares authorized and no shares
  issued and outstanding at September 30, 2016 and January 1, 2016

—

—

Common stock, $.0001 par value, 500 million shares authorized, 150 million and
 72 million shares issued and outstanding at September 30, 2016 and January 1,
 2016, respectively

—

—

Additional paid-in capital

3,310

1,353

Accumulated deficit

(188)

(277)

Accumulated other comprehensive loss

(6)

(8)

Total Leidos Holdings, Inc. stockholders' equity

3,116

1,068

Non-controlling interest

14

—

Total equity

3,130

1,068

$

9,579

$

3,370