Nine Months Ended September 30, 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

$

213

$

68

$

30

$

6

$

(5)

$

312

Depreciation expense

24

—

—

—

—

24

Amortization expense

30

—

(30)

—

—

—

Interest expense, net

49

—

—

—

—

49

EBITDA

$

316

$

68

$

—

$

6

$

(5)

$

385

EBITDA margin

7.1

%

8.6

%

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:

Quarter Ended September 29, 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

$

80

$

—

$

21

$

—

$

—

$

101

8.4

%

Civil

50

—

42

—

2

94

11.2

%

Health

63

—

13

—

—

76

16.4

%

Corporate

(42)

21

—

6

—

(15)

NM

Total

$

151

$

21

$

76

$

6

$

2

$

256

10.2

%