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Published: 2024-02-13 00:00:00 ET
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EX-99.2 3 exhibit992supplementalpres.htm EX-99.2 Document

Exhibit 99.2
LEIDOS HOLDINGS, INC.
UNAUDITED HISTORICAL FINANCIAL MEASURES

Background
Beginning in fiscal 2024, Leidos will operate in four reportable segments that are focused on specific, defined capability sets delivered to customers:
National Security and Digital—provides technology enabled services and mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics, as well as IT operations and digital transformation programs across all U.S. federal government customers.
Health & Civil—will deliver customer solutions with unique capabilities in the areas of public health, care coordination, life and environmental sciences and transportation.
Commercial & International—encompasses our security enterprise solution and commercial energy offerings, as well as our United Kingdom and Australian businesses.
Defense Systems—includes programs to develop and produce advanced space, aerial, surface and sub-surface manned and un-manned Defense Systems.
We have prepared unaudited historical consolidated financial information based on the new reporting structure set forth below, which includes certain non-GAAP measures. Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.
Unaudited Historical Financial Measures
The following table presents revenues for fiscal 2023 and 2022 under the new segment structure (in millions):
Three Months EndedYear Ended
March 31,
2023		June 30,
2023		September 29,
2023		December 29,
2023		December 29,
2023		December 30,
2022
National Security and Digital
$1,757 $1,791 $1,852 $1,796 $7,196 $6,745 
Health & Civil
1,008 1,034 1,055 1,141 4,238 3,945 
Commercial & International
489 547 552 538 2,126 1,900 
Defense Systems
445 466 462 505 1,878 1,806 
Total
$3,699 $3,838 $3,921 $3,980 $15,438 $14,396 


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LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP HISTORICAL FINANCIAL MEASURES
The following tables present the reconciliation of operating income by reportable segment to non-GAAP operating income for fiscal 2023 and 2022 under the new segment structure (in millions):
Three Months Ended March 31, 2023
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesNon-GAAP operating income (loss)
National Security and Digital
$145 $— $12 $157 
Health & Civil
113 — 10 123 
Commercial & International
13 — 10 23 
Defense Systems
23 — 20 43 
Corporate
(29)3 — (26)
Total$265 $3 $52 $320 
Three Months Ended June 30, 2023
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesNon-GAAP operating income (loss)
National Security and Digital
$172 $— $11 $183 
Health & Civil
134 — 11 145 
Commercial & International
34 1 10 45 
Defense Systems
21 — 19 40 
Corporate
(30)5 — (25)
Total$331 $6 $51 $388 
Three Months Ended September 29, 2023
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesAsset impairment chargesGoodwill impairment chargesNon-GAAP operating income (loss)
National Security and Digital
$170 $— $12 $— $— $182 
Health & Civil
165 — 9 — — 174 
Commercial & International
(646)9 9 80 599 51 
Defense Systems
3 3 20 8 — 34 
Corporate
(28)5 — — — (23)
Total$(336)$17 $50 $88 $599 $418 
Three Months Ended December 29, 2023
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesAsset impairment chargesGoodwill impairment chargesNon-GAAP operating income (loss)
National Security and Digital
$185 $— $12 $— 

$— $197 
Health & Civil
162 — 10 — — 172 
Commercial & International
39 — 8 3 (3)47 
Defense Systems
18 2 19 — — 39 
Corporate
(43)8 — — — (35)
Total$361 $10 $49 $3 $(3)$420 



LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP HISTORICAL FINANCIAL MEASURES [CONTINUED]
Year Ended December 29, 2023
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesAsset impairment chargesGoodwill impairment chargesNon-GAAP operating income (loss)
National Security and Digital
$672 $— $47 $— $— $719 
Health & Civil
574 — 40 — — 614 
Commercial & International
(560)10 37 83 596 166 
Defense Systems
65 5 78 8 — 156 
Corporate
(130)21 — — — (109)
Total$621 $36 $202 $91 $596 $1,546 
Year Ended December 30, 2022
Operating income (loss)Acquisition, integration and restructuring costsAmortization of acquired intangiblesAsset impairment chargesNon-GAAP operating income (loss)
National Security and Digital
$606 $— $57 $14 $677 
Health & Civil
448 — 48 13 509 
Commercial & International
131 — 35 4 170 
Defense Systems
11 — 89 4 104 
Corporate
(108)17 — 5 (86)
Total$1,088 $17 $229 $40 $1,374 





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