Six Months Ended July 1, 2016

As reported

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Loss (gain) on sale of assets and businesses

Non-GAAP results

Income from continuing operations, before income taxes

$

138

$

24

$

3

$

1

$

(5)

$

161

Depreciation expense

14

—

—

—

—

14

Amortization expense

3

—

(3)

—

—

—

Interest expense, net

24

—

—

—

—

24

EBITDA

$

179

$

24

$

—

$

1

$

(5)

$

199

EBITDA margin

6.9

%

7.7

%

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share amounts)

The following tables present the reconciliation of the non-GAAP operating income by reportable segment and corporate expenses:

Quarter Ended June 30, 2017

Operating income (loss)

Acquisition and integration costs

Amortization of intangibles

Restructuring expenses

Amortization of equity method investments

Non-GAAP operating income (loss)

Non-GAAP operating margin

Defense Solutions

$

63

$

—

$

44

$

—

$

2

$

109

8.8

%

Civil

66

—

23

—

7

96

11.0

%

Health

74

—

—

—

—

74

16.3

%

Corporate expenses

(37)

16

—

6

—

(15)

NM

Total

$

166

$

16

$

67

$

6

$

9

$

264

10.3

%