Leidos Holdings, Inc. Reports Second Quarter Fiscal Year 2017 Results

Total backlog at June 30, 2017, included $120 million of benefit due to the impact of foreign currency movement between the U.S. dollar and the British pound.


LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)

The Company uses and refers to non-GAAP operating income, adjusted EBITDA and non-GAAP EPS from continuing operations, which are not measures of financial performance under generally accepted accounting principles in the U.S. ("GAAP") and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Management believes that these non-GAAP measures provide another measure of the Company's 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 Company's computation of its non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Non-GAAP operating income is computed by excluding the following items from income from continuing operations: (i) other income (expense), net; (ii) interest expense; (iii) interest income; (iv) income tax expense adjusted to reflect non-GAAP adjustments; and (v) the following discrete items:

  • Acquisition and integration costs – Represents costs related to the acquisition and integration of the IS&GS Business.
  • Amortization of acquired intangible assets – Represents the amortization expense associated with acquired intangible assets.
  • Restructuring expenses – Represents costs associated with lease termination and severance costs (including those related to the Company's acquisition of the IS&GS Business and the September 2013 spin-off of its former technical services).
  • Amortization of equity method investments - Represents the amortization on the difference between the book value and fair value of equity method investments that were recorded in connection with the acquisition of the IS&GS Business.
  • Gains and losses on disposal of assets and businesses – Represents the gains or losses on certain sales of real estate and businesses.
  • Asset impairment charges – Represents impairments of long-lived intangible and tangible assets.

Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenue.

Adjusted EBITDA is computed by excluding the following items from income from continuing operations, before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; and (iv) depreciation expense.

Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenue.

 

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 measures identified above to the most directly comparable GAAP measures:




Quarter Ended June 30, 2017



As reported


Acquisition and integration costs


Amortization of intangibles


Restructuring expenses


Amortization of equity method investments


Loss (gain) on sale of assets and businesses


Non-GAAP results

Operating income


$

166



$

16



$

67



$

6



$

9



$



$

264


Non-operating expense, net


(31)











1



(30)


Income from continuing operations, before income taxes


135



16



67



6



9



1



234


Income tax expense 1


(37)



(6)



(26)



(2)



(4)





(75)


Net income


98



10



41



4



5



1



159


Less: net income attributable to non-controlling interest















Net income attributable to Leidos common stockholders


$

98



$

10



$

41



$

4



$

5



$

1



$

159

















Diluted EPS attributable to Leidos common stockholders


$

0.64



$

0.07



$

0.27



$

0.02



$

0.03



$

0.01



$

1.04


Diluted shares


153



153



153



153



153



153



153
























(1) Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments.












« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17  Next Page »
Featured Video
Editorial
Jobs
Senior Principal Mechanical Engineer for General Dynamics Mission Systems at Canonsburg, Pennsylvania
Mechanical Test Engineer, Platforms Infrastructure for Google at Mountain View, California
Mechanical Engineer 2 for Lam Research at Fremont, California
Manufacturing Test Engineer for Google at Prague, Czechia, Czech Republic
Equipment Engineer, Raxium for Google at Fremont, California
Mechanical Engineer 3 for Lam Research at Fremont, California
Upcoming Events
Celebrate Manufacturing Excellence at Anaheim Convention Center Anaheim CA - Feb 4 - 6, 2025
3DEXPERIENCE World 2025 at George R. Brown Convention Center Houston TX - Feb 23 - 26, 2025
TIMTOS 2025 at Nangang Exhibition Center Hall 1 & 2 (TaiNEX 1 & 2) TWTC Hall Taipei Taiwan - Mar 3 - 8, 2025
Additive Manufacturing Forum 2025 at Estrel Convention Cente Berlin Germany - Mar 17 - 18, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise