Three Months Ended September 29, 2023

As reported

Acquisition,
integration and
restructuring
costs⁽³⁾

Amortization of
acquired
intangibles

Asset
impairment
charges

Goodwill
impairment
charges

Non-GAAP
results

Operating (loss) income

$         (336)

$            17

$            50

$           88

$          599

$          418

Non-operating expense, net

(52)

—

—

—

—

(52)

(Loss) income before income taxes

(388)

17

50

88

599

366

Income tax expense⁽¹⁾⁽⁴⁾

(8)

(4)

(12)

(31)

(28)

(83)

Net (loss) income

(396)

13

38

57

571

283

 Less: net income attributable to non-controlling interest

3

—

—

—

—

3

Net (loss) income attributable to Leidos common stockholders

$         (399)

$            13

$            38

$           57

$          571

$          280

Diluted EPS attributable to Leidos common stockholders⁽²⁾

$        (2.91)

$         0.09

$         0.28

$         0.41

$         4.14

$         2.03

Diluted shares

137

138

138

138

138

138

Three Months Ended September 29, 2023

As reported

Acquisition,
integration and
restructuring
costs ⁽³⁾

Amortization of
acquired
intangibles

Asset
impairment
charges

Goodwill
impairment
charges

Non-GAAP
results

Net (loss) income

$       (396)

$            13

$            38

$           57

$         571

$          283

Income tax expense ⁽¹⁾⁽⁴⁾

8

4

12

31

28

83

(Loss) income before income taxes

(388)

17

50

88

599

366

Depreciation expense

32

—

—

—

—

32

Amortization of intangibles

50

—

(50)

—

—

—

Interest expense, net

53

—

—

—

—

53

Adjusted EBITDA

$       (253)

$            17

$             —

$           88

$         599

$          451

Adjusted EBITDA margin

(6.5) %

11.5 %

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.