We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Leidos Holdings, Inc. | NYSE:LDOS.WI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Leidos Holdings, Inc.
|
|
Leidos, Inc.
|
|
|
|
(Exact names of registrants as specified in their charters)
|
|
Delaware
|
|
20-3562868 and 95-3630868
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Nos.)
|
|
|
|
11951 Freedom Drive, Reston, Virginia
|
|
20190
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
(571) 526-6000
|
||
(Registrants' telephone number, including area code)
|
Leidos Holdings, Inc.
|
Yes
x
No
o
|
Leidos, Inc.
|
Yes
x
No
o
|
Leidos Holdings, Inc.
|
Yes
x
No
o
|
Leidos, Inc.
|
Yes
x
No
o
|
Leidos Holdings, Inc.
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
o
|
Leidos, Inc.
|
Large accelerated filer
|
¨
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
ý
|
Smaller reporting company
|
¨
|
Leidos Holdings, Inc.
|
Yes
o
No
x
|
Leidos, Inc.
|
Yes
o
No
x
|
Leidos Holdings, Inc.
|
72,800,585 shares of common stock ($.0001 par value per share)
|
Leidos, Inc.
|
5,000 shares of common stock ($.01 par value per share) held by Leidos Holdings, Inc.
|
|
|
Page
|
Part I
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Part II
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
July 1,
2016 |
|
January 1,
2016 |
||||
|
(in millions)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
670
|
|
|
$
|
656
|
|
Receivables, net
|
924
|
|
|
921
|
|
||
Inventory, prepaid expenses and other current assets
|
223
|
|
|
216
|
|
||
Total current assets
|
1,817
|
|
|
1,793
|
|
||
Property, plant and equipment (less accumulated depreciation and amortization of $266 million and $272 million at July 1, 2016, and January 1, 2016, respectively)
|
131
|
|
|
142
|
|
||
Goodwill and intangible assets, net
|
1,228
|
|
|
1,232
|
|
||
Deferred income taxes
|
7
|
|
|
8
|
|
||
Other assets
|
218
|
|
|
195
|
|
||
|
$
|
3,401
|
|
|
$
|
3,370
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
720
|
|
|
$
|
769
|
|
Accrued payroll and employee benefits
|
269
|
|
|
268
|
|
||
Notes payable and long-term debt, current portion
|
1
|
|
|
2
|
|
||
Liabilities of discontinued operations
|
—
|
|
|
1
|
|
||
Total current liabilities
|
990
|
|
|
1,040
|
|
||
Notes payable and long-term debt, net of current portion
|
1,092
|
|
|
1,079
|
|
||
Other long-term liabilities
|
195
|
|
|
183
|
|
||
Commitments and contingencies (Notes 11 and 12)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $.0001 par value, 10 million shares authorized and no shares issued and outstanding at July 1, 2016 and January 1, 2016
|
—
|
|
|
—
|
|
||
Common stock, $.0001 par value, 500 million shares authorized, 73 million and 72 million shares issued and outstanding at July 1, 2016 and January 1, 2016, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,358
|
|
|
1,353
|
|
||
Accumulated deficit
|
(230
|
)
|
|
(277
|
)
|
||
Accumulated other comprehensive loss
|
(4
|
)
|
|
(8
|
)
|
||
Total stockholders’ equity
|
1,124
|
|
|
1,068
|
|
||
|
$
|
3,401
|
|
|
$
|
3,370
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Revenues
|
$
|
1,288
|
|
|
$
|
1,257
|
|
|
$
|
2,600
|
|
|
$
|
2,503
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
1,141
|
|
|
1,113
|
|
|
2,295
|
|
|
2,206
|
|
||||
Selling, general and administrative expenses
|
57
|
|
|
51
|
|
|
117
|
|
|
126
|
|
||||
Acquisition and integration costs
|
15
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||
Asset impairment charges
|
—
|
|
|
29
|
|
|
—
|
|
|
69
|
|
||||
Operating income
|
75
|
|
|
64
|
|
|
164
|
|
|
102
|
|
||||
Non-operating expense:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(13
|
)
|
|
(14
|
)
|
|
(24
|
)
|
|
(28
|
)
|
||||
Other (expense) income, net
|
(2
|
)
|
|
2
|
|
|
(2
|
)
|
|
1
|
|
||||
Income from continuing operations before income taxes
|
60
|
|
|
52
|
|
|
138
|
|
|
75
|
|
||||
Income tax expense
|
(19
|
)
|
|
(15
|
)
|
|
(44
|
)
|
|
(15
|
)
|
||||
Income from continuing operations
|
41
|
|
|
37
|
|
|
94
|
|
|
60
|
|
||||
Discontinued operations:
|
|
|
|
|
|
|
|
||||||||
Income tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Net income
|
$
|
41
|
|
|
$
|
37
|
|
|
$
|
94
|
|
|
$
|
78
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
1.31
|
|
|
$
|
0.82
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.25
|
|
||||
|
$
|
0.56
|
|
|
$
|
0.51
|
|
|
$
|
1.31
|
|
|
$
|
1.07
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.55
|
|
|
$
|
0.50
|
|
|
$
|
1.27
|
|
|
$
|
0.80
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.24
|
|
||||
|
$
|
0.55
|
|
|
$
|
0.50
|
|
|
$
|
1.27
|
|
|
$
|
1.04
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
73
|
|
|
73
|
|
|
72
|
|
|
73
|
|
||||
Diluted
|
74
|
|
|
74
|
|
|
74
|
|
|
75
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.64
|
|
|
$
|
0.64
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
41
|
|
|
$
|
37
|
|
|
$
|
94
|
|
|
$
|
78
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
—
|
|
|||||||
Foreign currency translation adjustments
|
4
|
|
|
—
|
|
|
7
|
|
|
(2
|
)
|
||||
Deferred taxes
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
||||
Foreign currency translation adjustments, net of tax
|
2
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
||||
Pension liability adjustments
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||
Deferred taxes
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
||||
Pension liability adjustments, net of tax
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total other comprehensive income (loss), net of tax
|
2
|
|
|
1
|
|
|
4
|
|
|
(1
|
)
|
||||
Comprehensive income
|
$
|
43
|
|
|
$
|
38
|
|
|
$
|
98
|
|
|
$
|
77
|
|
|
Six Months Ended
|
||||||
|
July 1,
2016 |
|
July 3,
2015 |
||||
|
(in millions)
|
||||||
Cash flows from operations:
|
|
|
|
||||
Net income
|
$
|
94
|
|
|
$
|
78
|
|
Income from discontinued operations
|
—
|
|
|
(18
|
)
|
||
Adjustments to reconcile net income to net cash provided by operations:
|
|
|
|
||||
Depreciation and amortization
|
17
|
|
|
24
|
|
||
Stock-based compensation
|
16
|
|
|
14
|
|
||
Asset impairment charges
|
—
|
|
|
69
|
|
||
Other
|
(3
|
)
|
|
(1
|
)
|
||
Change in assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
||||
Receivables
|
(76
|
)
|
|
63
|
|
||
Inventory, prepaid expenses and other current assets
|
(7
|
)
|
|
(10
|
)
|
||
Accounts payable and accrued liabilities
|
7
|
|
|
14
|
|
||
Accrued payroll and employee benefits
|
2
|
|
|
(20
|
)
|
||
Deferred income taxes and income taxes receivable/payable
|
7
|
|
|
(88
|
)
|
||
Other long-term assets/liabilities
|
1
|
|
|
(16
|
)
|
||
Total cash flows provided by operating activities of continuing operations
|
58
|
|
|
109
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Expenditures for property, plant and equipment
|
(7
|
)
|
|
(8
|
)
|
||
Payments on accrued purchase price related to prior acquisition
|
—
|
|
|
(13
|
)
|
||
Net proceeds from sale of assets
|
3
|
|
|
5
|
|
||
Proceeds from disposition of business
|
23
|
|
|
—
|
|
||
Other
|
(1
|
)
|
|
—
|
|
||
Total cash flows provided by (used in) investing activities of continuing operations
|
18
|
|
|
(16
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Payments of notes payable and long-term debt
|
(2
|
)
|
|
(47
|
)
|
||
Sales of stock and exercises of stock options
|
6
|
|
|
3
|
|
||
Repurchases of stock and stock received for tax withholdings
|
(19
|
)
|
|
(115
|
)
|
||
Dividend payments
|
(46
|
)
|
|
(48
|
)
|
||
Other
|
—
|
|
|
1
|
|
||
Total cash flows used in financing activities of continuing operations
|
(61
|
)
|
|
(206
|
)
|
||
Increase (decrease) in cash and cash equivalents from continuing operations
|
15
|
|
|
(113
|
)
|
||
Cash flows from discontinued operations:
|
|
|
|
||||
Cash provided by operating activities of discontinued operations
|
—
|
|
|
13
|
|
||
Cash (used in) provided by investing activities of discontinued operations
|
(1
|
)
|
|
6
|
|
||
(Decrease) increase in cash and cash equivalents from discontinued operations
|
(1
|
)
|
|
19
|
|
||
Total increase (decrease) in cash and cash equivalents
|
14
|
|
|
(94
|
)
|
||
Cash and cash equivalents at beginning of period
|
656
|
|
|
459
|
|
||
Cash and cash equivalents at end of period
|
$
|
670
|
|
|
$
|
365
|
|
|
July 1,
2016 |
|
January 1,
2016 |
||||
|
(in millions)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
670
|
|
|
$
|
656
|
|
Receivables, net
|
924
|
|
|
921
|
|
||
Inventory, prepaid expenses and other current assets
|
223
|
|
|
216
|
|
||
Total current assets
|
1,817
|
|
|
1,793
|
|
||
Property, plant and equipment (less accumulated depreciation and amortization of $266 million and $272 million at July 1, 2016, and January 1, 2016, respectively)
|
131
|
|
|
142
|
|
||
Goodwill and intangible assets, net
|
1,228
|
|
|
1,232
|
|
||
Deferred income taxes
|
7
|
|
|
8
|
|
||
Other assets
|
218
|
|
|
195
|
|
||
Note receivable from Leidos Holdings, Inc.
|
1,638
|
|
|
1,593
|
|
||
|
$
|
5,039
|
|
|
$
|
4,963
|
|
LIABILITIES AND STOCKHOLDER'S EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
720
|
|
|
$
|
769
|
|
Accrued payroll and employee benefits
|
269
|
|
|
268
|
|
||
Notes payable and long-term debt, current portion
|
1
|
|
|
2
|
|
||
Liabilities of discontinued operations
|
—
|
|
|
1
|
|
||
Total current liabilities
|
990
|
|
|
1,040
|
|
||
Notes payable and long-term debt, net of current portion
|
1,092
|
|
|
1,079
|
|
||
Other long-term liabilities
|
195
|
|
|
183
|
|
||
Commitments and contingencies (Notes 11 and 12)
|
|
|
|
||||
Stockholder's equity:
|
|
|
|
||||
Common stock, $.01 par value, 10,000 shares authorized, 5,000 shares issued and outstanding at July 1, 2016 and January 1, 2016
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
207
|
|
|
207
|
|
||
Accumulated earnings
|
2,559
|
|
|
2,462
|
|
||
Accumulated other comprehensive loss
|
(4
|
)
|
|
(8
|
)
|
||
Total stockholder's equity
|
2,762
|
|
|
2,661
|
|
||
|
$
|
5,039
|
|
|
$
|
4,963
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions)
|
||||||||||||||
Revenues
|
$
|
1,288
|
|
|
$
|
1,257
|
|
|
$
|
2,600
|
|
|
$
|
2,503
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
1,141
|
|
|
1,113
|
|
|
2,295
|
|
|
2,206
|
|
||||
Selling, general and administrative expenses
|
57
|
|
|
51
|
|
|
117
|
|
|
126
|
|
||||
Acquisition and integration costs
|
15
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||
Asset impairment charges
|
—
|
|
|
29
|
|
|
—
|
|
|
69
|
|
||||
Operating income
|
75
|
|
|
64
|
|
|
164
|
|
|
102
|
|
||||
Non-operating expense:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(10
|
)
|
|
(10
|
)
|
|
(19
|
)
|
|
(21
|
)
|
||||
Other (expense) income, net
|
(2
|
)
|
|
2
|
|
|
(2
|
)
|
|
1
|
|
||||
Income from continuing operations before income taxes
|
63
|
|
|
56
|
|
|
143
|
|
|
82
|
|
||||
Income tax expense
|
(20
|
)
|
|
(17
|
)
|
|
(46
|
)
|
|
(18
|
)
|
||||
Income from continuing operations
|
43
|
|
|
39
|
|
|
97
|
|
|
64
|
|
||||
Discontinued operations:
|
|
|
|
|
|
|
|
||||||||
Income tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Net income
|
$
|
43
|
|
|
$
|
39
|
|
|
$
|
97
|
|
|
$
|
82
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
43
|
|
|
$
|
39
|
|
|
$
|
97
|
|
|
$
|
82
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
4
|
|
|
—
|
|
|
7
|
|
|
(2
|
)
|
||||
Deferred taxes
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
||||
Foreign currency translation adjustments, net of tax
|
2
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
||||
Pension liability adjustments
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||
Deferred taxes
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
||||
Pension liability adjustments, net of tax
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total other comprehensive income (loss), net of tax
|
2
|
|
|
1
|
|
|
4
|
|
|
(1
|
)
|
||||
Comprehensive income
|
$
|
45
|
|
|
$
|
40
|
|
|
$
|
101
|
|
|
$
|
81
|
|
|
Six Months Ended
|
||||||
|
July 1,
2016 |
|
July 3,
2015 |
||||
|
(in millions)
|
||||||
Cash flows from operations:
|
|
|
|
||||
Net income
|
$
|
97
|
|
|
$
|
82
|
|
Income from discontinued operations
|
—
|
|
|
(18
|
)
|
||
Adjustments to reconcile net income to net cash provided by operations:
|
|
|
|
||||
Depreciation and amortization
|
17
|
|
|
24
|
|
||
Stock-based compensation
|
16
|
|
|
14
|
|
||
Asset impairment charges
|
—
|
|
|
69
|
|
||
Other
|
(6
|
)
|
|
(5
|
)
|
||
Change in assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
||||
Receivables
|
(76
|
)
|
|
63
|
|
||
Inventory, prepaid expenses and other current assets
|
(7
|
)
|
|
(10
|
)
|
||
Accounts payable and accrued liabilities
|
7
|
|
|
14
|
|
||
Accrued payroll and employee benefits
|
2
|
|
|
(20
|
)
|
||
Deferred income taxes and income taxes receivable/payable
|
7
|
|
|
(88
|
)
|
||
Other long-term assets/liabilities
|
1
|
|
|
(16
|
)
|
||
Total cash flows provided by operating activities of continuing operations
|
58
|
|
|
109
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds on obligations of Leidos Holdings, Inc.
|
6
|
|
|
17
|
|
||
Payments on obligations of Leidos Holdings, Inc.
|
(65
|
)
|
|
(176
|
)
|
||
Expenditures for property, plant and equipment
|
(7
|
)
|
|
(8
|
)
|
||
Payments on accrued purchase price related to prior acquisition
|
—
|
|
|
(13
|
)
|
||
Net proceeds from sale of assets
|
3
|
|
|
5
|
|
||
Proceeds from disposition of business
|
23
|
|
|
—
|
|
||
Other
|
(1
|
)
|
|
—
|
|
||
Total cash flows used in investing activities of continuing operations
|
(41
|
)
|
|
(175
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Payments of notes payable and long-term debt
|
(2
|
)
|
|
(47
|
)
|
||
Total cash flows used in financing activities of continuing operations
|
(2
|
)
|
|
(47
|
)
|
||
Increase (decrease) in cash and cash equivalents from continuing operations
|
15
|
|
|
(113
|
)
|
||
Cash flows from discontinued operations:
|
|
|
|
||||
Cash provided by operating activities of discontinued operations
|
—
|
|
|
13
|
|
||
Cash (used in) provided by investing activities of discontinued operations
|
(1
|
)
|
|
6
|
|
||
(Decrease) increase in cash and cash equivalents from discontinued operations
|
(1
|
)
|
|
19
|
|
||
Total increase (decrease) in cash and cash equivalents
|
14
|
|
|
(94
|
)
|
||
Cash and cash equivalents at beginning of period
|
656
|
|
|
459
|
|
||
Cash and cash equivalents at end of period
|
$
|
670
|
|
|
$
|
365
|
|
|
Six Months Ended
|
||||||
|
July 1,
2016 |
|
July 3,
2015 |
||||
|
(in millions)
|
||||||
Accrued dividends declared
|
$
|
—
|
|
|
$
|
24
|
|
Cash paid for interest
|
$
|
43
|
|
|
$
|
33
|
|
Cash paid for income taxes, net of refunds (including discontinued operations)
|
$
|
38
|
|
|
$
|
87
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
July 1,
2016 |
|
July 1,
2016 |
||||
|
(in millions)
|
||||||
Strategic acquisition and integration advisory services
|
$
|
7
|
|
|
$
|
10
|
|
Legal and accounting services
|
5
|
|
|
10
|
|
||
Other integration costs
|
3
|
|
|
4
|
|
||
Total acquisition and integration costs
|
$
|
15
|
|
|
$
|
24
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions)
|
||||||||||||||
Revenues
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
14
|
|
Costs and expenses:
|
—
|
|
|
|
|
|
|
|
|
||||||
Cost of revenues
|
4
|
|
|
6
|
|
|
7
|
|
|
12
|
|
||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Operating loss
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Non-operating income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Interest rate swaps
|
|
Hedged items
|
||||||||||||
Balance sheet line item
|
July 1,
2016 |
January 1,
2016 |
|
Balance sheet line item
|
July 1,
2016 |
January 1,
2016 |
||||||||
(in millions)
|
||||||||||||||
Other assets
|
$
|
23
|
|
$
|
8
|
|
|
Notes payable and long-term debt, net of current portion
|
$
|
23
|
|
$
|
8
|
|
|
July 1,
2016 |
|
January 1,
2016 |
||||
|
(in millions)
|
||||||
Foreign currency translation adjustments, net of taxes of $(3) million as of July 1, 2016
|
$
|
4
|
|
|
$
|
—
|
|
Unrecognized net loss on settled derivative instruments associated with outstanding debt, net of taxes of $3 million as of July 1, 2016, and January 1, 2016
|
(4
|
)
|
|
(4
|
)
|
||
Unrecognized net loss on defined benefit plan, net of taxes of $2 million and $3 million as of July 1, 2016, and January 1, 2016, respectively
|
(4
|
)
|
|
(4
|
)
|
||
Total accumulated other comprehensive loss, net of taxes of $2 million and $6 million as of July 1, 2016, and January 1, 2016, respectively
|
$
|
(4
|
)
|
|
$
|
(8
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||
|
(in millions)
|
||||||||||
Basic weighted average number of shares outstanding
|
73
|
|
|
73
|
|
|
72
|
|
|
73
|
|
Dilutive common share equivalents—stock options and other stock awards
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
Diluted weighted average number of shares outstanding
|
74
|
|
|
74
|
|
|
74
|
|
|
75
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||||
|
(in millions)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
National Security Solutions
|
$
|
915
|
|
|
$
|
879
|
|
|
$
|
1,813
|
|
|
$
|
1,741
|
|
Health and Infrastructure Sector
|
373
|
|
|
379
|
|
|
787
|
|
|
764
|
|
||||
Corporate and Other
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Total revenues
|
$
|
1,288
|
|
|
$
|
1,257
|
|
|
$
|
2,600
|
|
|
$
|
2,503
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
National Security Solutions
|
$
|
61
|
|
|
$
|
74
|
|
|
$
|
133
|
|
|
$
|
136
|
|
Operating income margin
|
6.7
|
%
|
|
8.4
|
%
|
|
7.3
|
%
|
|
7.8
|
%
|
||||
Health and Infrastructure Sector
|
39
|
|
|
(7
|
)
|
|
75
|
|
|
(14
|
)
|
||||
Operating income (negative) margin
|
10.5
|
%
|
|
(1.8
|
)%
|
|
9.5
|
%
|
|
(1.8
|
)%
|
||||
Corporate and Other
|
(25
|
)
|
|
(3
|
)
|
|
(44
|
)
|
|
(20
|
)
|
||||
Total operating income
|
$
|
75
|
|
|
$
|
64
|
|
|
$
|
164
|
|
|
$
|
102
|
|
Operating income margin
|
5.8
|
%
|
|
5.1
|
%
|
|
6.3
|
%
|
|
4.1
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||||||
Revenues
|
$
|
1,288
|
|
|
$
|
1,257
|
|
|
$
|
31
|
|
|
2
|
%
|
|
$
|
2,600
|
|
|
$
|
2,503
|
|
|
$
|
97
|
|
|
4
|
%
|
Operating income
|
75
|
|
|
64
|
|
|
11
|
|
|
17
|
%
|
|
164
|
|
|
102
|
|
|
62
|
|
|
61
|
%
|
||||||
Operating margin
|
5.8
|
%
|
|
5.1
|
%
|
|
|
|
|
|
|
|
6.3
|
%
|
|
4.1
|
%
|
|
|
|
|
||||||||
Non-operating expense, net
|
(15
|
)
|
|
(12
|
)
|
|
(3
|
)
|
|
(25
|
)%
|
|
(26
|
)
|
|
(27
|
)
|
|
1
|
|
|
4
|
%
|
||||||
Income from continuing operations before income taxes
|
60
|
|
|
52
|
|
|
8
|
|
|
15
|
%
|
|
138
|
|
|
75
|
|
|
63
|
|
|
84
|
%
|
||||||
Income tax expense
|
(19
|
)
|
|
(15
|
)
|
|
(4
|
)
|
|
(27
|
)%
|
|
(44
|
)
|
|
(15
|
)
|
|
(29
|
)
|
|
(193
|
)%
|
||||||
Income from continuing operations
|
41
|
|
|
37
|
|
|
4
|
|
|
11
|
%
|
|
94
|
|
|
60
|
|
|
34
|
|
|
57
|
%
|
||||||
Income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
18
|
|
|
(18
|
)
|
|
(100
|
)%
|
||||||
Net income
|
$
|
41
|
|
|
$
|
37
|
|
|
$
|
4
|
|
|
11
|
%
|
|
$
|
94
|
|
|
$
|
78
|
|
|
$
|
16
|
|
|
21
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
National Security Solutions
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||||||
Revenues
|
$
|
915
|
|
|
$
|
879
|
|
|
$
|
36
|
|
|
4
|
%
|
|
$
|
1,813
|
|
|
$
|
1,741
|
|
|
$
|
72
|
|
|
4
|
%
|
Operating income
|
61
|
|
|
74
|
|
|
(13
|
)
|
|
(18
|
)%
|
|
133
|
|
|
136
|
|
|
(3
|
)
|
|
(2
|
)%
|
||||||
Operating income margin
|
6.7
|
%
|
|
8.4
|
%
|
|
|
|
|
|
7.3
|
%
|
|
7.8
|
%
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
Health and Infrastructure Sector
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
|
July 1,
2016 |
|
July 3,
2015 |
|
Dollar change
|
|
Percent change
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||||||
Revenues
|
$
|
373
|
|
|
$
|
379
|
|
|
$
|
(6
|
)
|
|
(2
|
)%
|
|
$
|
787
|
|
|
$
|
764
|
|
|
$
|
23
|
|
|
3
|
%
|
Operating income (loss)
|
39
|
|
|
(7
|
)
|
|
46
|
|
|
NM
|
|
|
75
|
|
|
(14
|
)
|
|
89
|
|
|
NM
|
|
||||||
Operating income (loss) margin
|
10.5
|
%
|
|
(1.8
|
)%
|
|
|
|
|
|
9.5
|
%
|
|
(1.8
|
)%
|
|
|
|
|
||||||||||
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1,
2016 |
|
January 1,
2016 |
||||
|
(in millions)
|
||||||
National Security Solutions:
|
|
|
|
||||
Funded backlog
|
$
|
1,523
|
|
|
$
|
1,472
|
|
Negotiated unfunded backlog
|
5,765
|
|
|
6,554
|
|
||
Total National Security Solutions backlog
|
$
|
7,288
|
|
|
$
|
8,026
|
|
Health and Infrastructure Sector:
|
|
|
|
||||
Funded backlog
|
$
|
868
|
|
|
$
|
1,049
|
|
Negotiated unfunded backlog
|
811
|
|
|
820
|
|
||
Total Health and Infrastructure Sector backlog
|
$
|
1,679
|
|
|
$
|
1,869
|
|
Total:
|
|
|
|
||||
Funded backlog
|
$
|
2,391
|
|
|
$
|
2,521
|
|
Negotiated unfunded backlog
|
6,576
|
|
|
7,374
|
|
||
Total backlog
|
$
|
8,967
|
|
|
$
|
9,895
|
|
|
Six Months Ended
|
||||||
|
July 1,
2016 |
|
July 3,
2015 |
||||
|
(in millions)
|
||||||
Cash provided by operating activities of continuing operations
|
$
|
58
|
|
|
$
|
109
|
|
Cash provided by (used in) investing activities of continuing operations
|
18
|
|
|
(16
|
)
|
||
Cash used in financing activities of continuing operations
|
(61
|
)
|
|
(206
|
)
|
||
(Decrease) increase in cash and cash equivalents from discontinued operations
|
(1
|
)
|
|
19
|
|
||
Total increase (decrease) in cash and cash equivalents
|
$
|
14
|
|
|
$
|
(94
|
)
|
•
|
integrating the Splitco Business while carrying on the ongoing operations of our business;
|
•
|
managing a significantly larger company than before the consummation of the Transactions;
|
•
|
the possibility of faulty assumptions underlying our expectations regarding the integration process;
|
•
|
coordinating a greater number of diverse businesses located in a greater number of geographic locations;
|
•
|
operating in geographic markets or industry sectors in which we may have little or no experience;
|
•
|
complying with laws of new jurisdictions in which we have not previously operated;
|
•
|
integrating business systems and models;
|
•
|
attracting and retaining the necessary personnel associated with the Splitco Business following the consummation of the Transactions;
|
•
|
creating and implementing uniform standards, controls, procedures, policies and information systems and controlling the costs associated with such matters; and
|
•
|
integrating information technology, purchasing, accounting, finance, sales, billing, payroll and regulatory compliance systems, and meeting external reporting requirements following the consummation of the Transactions.
|
(a)
|
None
|
(b)
|
None
|
(c)
|
Purchases of Equity Securities by the Company
|
Period
|
(a)
Total Number of Shares (or Units) Purchased (1) |
|
(b)
Average Price Paid per Share (or Unit) |
|
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares (or Units)that May Yet Be Purchased Under the Plans or Programs (2) |
||||||
April 2, 2016 - April 30, 2016
|
18,976
|
|
|
$
|
51.08
|
|
|
—
|
|
|
5,718,172
|
|
May 1, 2016 - May 31, 2016
|
11,631
|
|
|
50.10
|
|
|
—
|
|
|
5,718,172
|
|
|
June 1, 2016 - June 30, 2016
|
6,900
|
|
|
49.34
|
|
|
—
|
|
|
5,718,172
|
|
|
July 1, 2016
|
—
|
|
|
—
|
|
|
—
|
|
|
5,718,172
|
|
|
Total
|
37,507
|
|
|
$
|
50.46
|
|
|
—
|
|
|
|
(1)
|
The total number of shares purchased includes: (i) shares surrendered to satisfy statutory tax withholdings obligations related to vesting of restricted stock awards; and (ii) shares surrendered in payment of the exercise price of non-qualified stock options and/or to satisfy statutory tax withholdings obligations.
|
(2)
|
We may repurchase up to 20 million shares of Leidos common stock under the 2013 Stock Repurchase Program, which was publicly announced in December 2013. No shares were purchased in open market purchases during the second quarter of fiscal 2016.
|
Exhibit
Number |
Description of Exhibit
|
2.1
|
Agreement and Plan of Merger, dated January 26, 2016, among Leidos Holdings, Inc., Lockheed Martin Corporation, Abacus Innovations Corporation, and Lion Merger Co. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed with the SEC on January 28, 2016.
|
|
|
2.2
|
Separation Agreement, dated January 26, 2016, between Lockheed Martin Corporation and Abacus Innovations Corporation. Incorporated by reference to Exhibit 2.2 to our Current Report on Form 8-K filed with the SEC on January 28, 2016.
|
|
|
2.3
|
Amendment to Agreement and Plan of Merger, dated as of June 27, 2016, among Lockheed Martin Corporation, Leidos Holdings, Inc., Abacus Innovations Corporation and Lion Merger Co. Incorporated by reference to Exhibit 2.7 to our Registration Statement on Form S-4 filed with the SEC on June 28, 2016.
|
|
|
2.4
|
Amendment to Separation Agreement, dated as of June 27, 2016, between Lockheed Martin Corporation and Abacus Innovations Corporation. Incorporated by reference to Exhibit 2.8 to our Registration Statement on Form S-4 filed with the SEC on Jun 29, 2016.
|
|
|
3.2
|
Amended and Restated Bylaws of Leidos Holdings, Inc. Incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K filed with the SEC on April 13, 2016.
|
|
|
99.1
|
Employee Matters Agreement, dated as of January 26, 2016, among Lockheed Martin Corporation, Abacus Innovations Corporation and Leidos Holdings, Inc. Incorporated by reference to Exhibit 99.1 to our Registration Statement on Form S-4 filed by the SEC on April 18, 2016.
|
|
|
99.2
|
Tax Matters Agreement, dated as of January 26, 2016, among Lockheed Martin Corporation, Abacus Innovations Corporation and Leidos Holdings, Inc. Incorporated by reference to Exhibit 99.2 to our Registration Statement on Form S-4 filed by the SEC on April 18, 2016.
|
|
|
99.3
|
First Amendment to Employee Matters Agreement, dated June 27, 2016, among Lockheed Martin Corporation, Abacus Innovations Corporation and Leidos Holdings, Inc. Incorporated by reference to Exhibit 99.13 to our Registration Statement on Form S-4 filed with the SEC on June 28, 2016.
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
Interactive Data File.
|
Leidos Holdings, Inc.
|
|
/s/ James C. Reagan
|
James C. Reagan
Executive Vice President and Chief Financial Officer and
as a duly authorized officer
|
Leidos, Inc.
|
|
/s/ James C. Reagan
|
James C. Reagan
Executive Vice President and Chief Financial Officer and
as a duly authorized officer
|
1 Year Leidos Holdings, Inc. Chart |
1 Month Leidos Holdings, Inc. Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions