LEIDOS HOLDINGS, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in millions)

December 29,
 2017

December 30,
 2016

ASSETS

Current assets:

Cash and cash equivalents

$

390

$

376

Receivables, net

1,831

1,657

Inventory, prepaid expenses and other current assets

453

348

Total current assets

2,674

2,381

Property, plant and equipment, net

232

259

Intangible assets, net

856

1,589

Goodwill

4,974

4,622

Deferred tax assets

—

16

Other assets

254

265

$

8,990

$

9,132

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

1,639

$

1,427

Accrued payroll and employee benefits

487

483

Dividends payable

17

23

Income taxes payable

4

21

Long-term debt, current portion

55

62

Total current liabilities

2,202

2,016

Long-term debt, net of current portion

3,056

3,225

Deferred tax liabilities

220

540

Other long-term liabilities

129

204

Commitments and contingencies

Stockholders' equity:

Preferred stock, $.0001 par value,10 million shares authorized and no shares issued
  and outstanding at December 29, 2017, and December 30, 2016

—

—

Common stock, $.0001 par value, 500 million shares authorized, 151 million and
  150 million shares issued and outstanding at December 29, 2017, and December
  30, 2016, respectively

—

—

Additional paid-in capital

3,344

3,316

Accumulated deficit

(7)

(177)

Accumulated other comprehensive income (loss)

33

(4)

Total Leidos stockholders' equity

3,370

3,135

Non-controlling interest

13

12

Total equity

3,383

3,147

$

8,990

$

9,132