LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

Three Months Ended

Nine Months Ended

September 29,
 2017

September 30,
 2016

September 29,
 2017

September 30,
 2016

Revenues

$

2,503

$

1,868

$

7,654

$

4,468

     Cost of revenues

2,189

1,630

6,692

3,925

     Selling, general and administrative expenses

141

88

428

204

     Acquisition and integration costs

21

44

56

68

     Restructuring expenses

6

5

25

6

     Equity earnings of non-consolidated subsidiaries

(5)

—

(5)

—

Operating income

151

101

458

265

     Interest income

1

3

5

8

     Interest expense

(36)

(28)

(110)

(57)

     Other (expense) income, net

—

(1)

6

(3)

Income from continuing operations before income taxes

116

75

359

213

Income tax (expense) benefit

(37)

17

(108)

(27)

Net income

79

92

251

186

Less: net (loss) income attributable to non-controlling
  interest

(3)

1

(1)

1

Net income attributable to Leidos common stockholders

$

82

$

91

$

252

$

185

Earnings per share:

     Basic

$

0.54

$

0.81

$

1.67

$

2.18

     Diluted

0.53

0.80

1.65

2.13

Weighted average number of common shares 
   outstanding:

     Basic

152

112

151

85

     Diluted

154

114

153

87

Cash dividends declared per share

$

0.32

$

13.96

$

0.96

$

14.60