LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Three Months Ended

Nine Months Ended

September 27,
2024

September 29,
2023

September 27,
2024

September 29,
2023

Cash flows from operations:

Net income (loss)

$           362

$         (396)

$           969

$           (22)

Adjustments to reconcile net income (loss) to net cash provided by operations:

Depreciation and amortization

71

82

211

248

Stock-based compensation

19

20

59

57

Deferred income taxes

(29)

(104)

(96)

(192)

Goodwill impairment charges

—

599

—

599

Asset impairment charges

6

88

6

88

Other

3

19

5

25

Change in assets and liabilities, net of effects of acquisitions:

Receivables

(75)

14

(260)

(109)

Other current assets and other long-term assets

95

92

102

141

Accounts payable and accrued liabilities and other long-term liabilities

25

220

(149)

22

Accrued payroll and employee benefits

198

137

208

105

Income taxes receivable/payable

(19)

24

38

(101)

Net cash provided by operating activities

656

795

1,093

861

Cash flows from investing activities:

Acquisition of a business, net of cash acquired

—

(2)

—

(6)

Payments for property, equipment and software

(23)

(50)

(63)

(129)

Net proceeds from sale of assets

—

—

2

—

Other

—

—

5

—

Net cash used in investing activities

(23)

(52)

(56)

(135)

Cash flows from financing activities:

Proceeds from debt issuance

—

—

—

1,743

Net proceeds from commercial paper

—

(200)

—

—

Repayments of borrowings

(5)

(5)

(14)

(2,041)

Payments for debt issuance costs

—

—

—

(7)

Dividend payments

(51)

(50)

(155)

(150)

Repurchases of stock and other

(203)

(1)

(500)

(44)

Proceeds from issuances of stock

2

12

28

37

Net capital distributions to non-controlling interests

—

(5)

(3)

(8)

Net cash used in financing activities

(257)

(249)

(644)

(470)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

9

(3)

5

—

Net increase in cash, cash equivalents and restricted cash

385

491

398

256

Cash, cash equivalents and restricted cash at beginning of period

941

448

928

683

Cash, cash equivalents and restricted cash at end of period

1,326

939

1,326

939

Less: restricted cash at end of period

141

189

141

189

Cash and cash equivalents at end of period

$        1,185

$           750

$        1,185

$           750