(in millions, except per share data and margin percentages)
The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the nine months ended September 29, 2023:
|
|
| Nine Months Ended September 29, 2023 | ||||||||||
|
|
| As reported |
| Acquisition,
|
| Amortization of
|
| Asset
|
| Goodwill
|
| Non-GAAP
|
Operating income |
| $ 260 |
| $ 26 |
| $ 153 |
| $ 88 |
| $ 599 |
| $ 1,126 |
Non-operating expense, net |
| (167) |
| — |
| — |
| — |
| — |
| (167) |
Income before income taxes |
| 93 |
| 26 |
| 153 |
| 88 |
| 599 |
| 959 |
Income tax expense(1)(4) |
| (115) |
| (6) |
| (39) |
| (31) |
| (28) |
| (219) |
Net (loss) income |
| (22) |
| 20 |
| 114 |
| 57 |
| 571 |
| 740 |
Less: net income attributable to non-controlling interest |
| 8 |
| — |
| — |
| — |
| — |
| 8 |
Net (loss) income attributable to Leidos common stockholders |
| $ (30) |
| $ 20 |
| $ 114 |
| $ 57 |
| $ 571 |
| $ 732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS attributable to Leidos common stockholders(2) |
| $ (0.22) |
| $ 0.14 |
| $ 0.83 |
| $ 0.41 |
| $ 4.14 |
| $ 5.30 |
| Diluted shares |
| 137 |
| 138 |
| 138 |
| 138 |
| 138 |
| 138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 29, 2023 | ||||||||||
|
|
| As reported |
| Acquisition,
|
| Amortization of
|
| Asset
|
| Goodwill
|
| Non-GAAP
|
| Net (loss) income |
| $ (22) |
| $ 20 |
| $ 114 |
| $ 57 |
| $ 571 |
| $ 740 |
| Income tax expense (1)(4) |
| 115 |
| 6 |
| 39 |
| 31 |
| 28 |
| 219 |
| Income before income taxes |
| 93 |
| 26 |
| 153 |
| 88 |
| 599 |
| 959 |
| Depreciation expense |
| 95 |
| — |
| — |
| — |
| — |
| 95 |
| Amortization of intangibles |
| 153 |
| — |
| (153) |
| — |
| — |
| — |
| Interest expense, net |
| 163 |
| — |
| — |
| — |
| — |
| 163 |
| Adjusted EBITDA |
| $ 504 |
| $ 26 |
| $ — |
| $ 88 |
| $ 599 |
| $ 1,217 |
| Adjusted EBITDA margin |
| 4.4 % |
|
|
|
|
|
|
|
|
| 10.6 % |
|
|
| (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. |
LEIDOS HOLDINGS, INC.
