Leidos (LDOS) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 25, 2016
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	LDOS
Entity Registrant Name	Leidos Holdings, Inc.
Entity Central Index Key	1,336,920
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		150,363,756

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2016	Jan. 01, 2016
Current assets:
Cash and cash equivalents	$ 449	$ 656
Receivables, net	1,677	921
Inventory, prepaid expenses and other current assets	430	216
Total current assets	2,556	1,793
Property, plant and equipment, net	231	142
Intangible assets, net	1,643	25
Goodwill	4,874	1,207
Deferred income taxes	15	8
Other assets	260	195
Total assets	9,579	3,370
Current liabilities:
Accounts payable and accrued liabilities	1,458	761
Accrued payroll and employee benefits	454	268
Dividends payable	23	2
Income taxes payable	3	6
Notes payable and long-term debt, current portion	42	2
Liabilities of discontinued operations	0	1
Total current liabilities	1,980	1,040
Notes payable and long-term debt, net of current portion	3,428	1,079
Deferred tax liabilities	867	34
Other long-term liabilities	174	149
Commitments and contingencies (Notes 15 and 16)
Stockholders’ equity:
Preferred stock, $.0001 par value, 10 million shares authorized and no shares issued and outstanding at September 30, 2016 and January 1, 2016	0	0
Common stock, $.0001 par value, 500 million shares authorized, 150 million and 72 million shares issued and outstanding at September 30, 2016 and January 1, 2016, respectively	0	0
Additional paid-in capital	3,310	1,353
Accumulated deficit	(188)	(277)
Accumulated other comprehensive loss	(6)	(8)
Total Leidos Holdings, Inc. stockholders’ equity	3,116	1,068
Non-controlling interest	14	0
Total equity	3,130	1,068
Total liabilities and stockholders' equity	$ 9,579	$ 3,370

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Jan. 01, 2016
Preferred Stock, par value per share (dollar per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value per share (dollar per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	150,000,000	72,000,000
Common stock, shares outstanding	150,000,000	72,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Income Statement [Abstract]
Revenues	$ 1,868	$ 1,302	$ 4,468	$ 3,805
Cost of revenues	1,630	1,138	3,925	3,344
Selling, general and administrative expenses	87	53	203	180
Bad debt expense	1	13	1	10
Acquisition and integration costs	44	0	68	0
Asset impairment charges	0	4	0	73
Restructuring expenses	5	0	6	2
Operating income	101	94	265	196
Interest income	3	1	8	2
Interest expense	(28)	(15)	(57)	(44)
Other (expense) income, net	(1)	0	(3)	1
Income from continuing operations before income taxes	75	80	213	155
Income tax benefit (expense)	17	(31)	(27)	(46)
Income from continuing operations	92	49	186	109
Discontinued operations:
Income tax benefit	0	0	0	18
Income from discontinued operations, net of taxes	0	0	0	18
Net income	92	49	186	127
Less: net income attributable to non-controlling interest, net of taxes	1	0	1	0
Net income attributable to Leidos Holdings, Inc.	$ 91	$ 49	$ 185	$ 127
Basic:
Income from continuing operations attributable to Leidos Holdings, Inc. common stockholders (dollar per share)	$ 0.81	$ 0.68	$ 2.18	$ 1.49
Discontinued operations, net of taxes (dollar per share)	0	0	0	0.25
Net income attributable to Leidos Holdings, Inc. common stockholders (dollar per share)	0.81	0.68	2.18	1.74
Diluted:
Income from continuing operations attributable to Leidos Holdings, Inc. common stockholders (dollars per share)	0.80	0.67	2.13	1.47
Discontinued operations - net of tax (dollars per share)	0	0	0	0.25
Net income attributable to Leidos Holdings, Inc. common stockholders (dollars per share)	$ 0.80	$ 0.67	$ 2.13	$ 1.72
Weighted average number of common shares outstanding:
Basic (shares)	112	72	85	73
Diluted (shares)	114	73	87	74
Cash dividends declared per share (dollars per share)	$ 13.96	$ 0.32	$ 14.6	$ 0.96

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 92	$ 49	$ 186	$ 127
Other comprehensive (loss) income, net of taxes:
Foreign currency translation adjustments	2	0	9	(2)
Taxes	0	0	(3)	1
Foreign currency translation adjustments, net of taxes	2	0	6	(1)
Unrecognized loss on derivative instruments	(6)	0	(6)	0
Taxes	2	0	2	0
Unrecognized loss on derivative instruments, net of taxes	(4)	0	(4)	0
Pension liability adjustments	0	0	1	(1)
Taxes	0	0	(1)	1
Pension liability adjustments, net of taxes	0	0	0	0
Total other comprehensive (loss) income, net of taxes	(2)	0	2	(1)
Comprehensive income	90	49	188	126
Less: comprehensive income attributable to non-controlling interest, net of taxes	1	0	1	0
Comprehensive income attributable to Leidos Holdings, Inc.	$ 89	$ 49	$ 187	$ 126

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) Statement - USD ($) shares in Millions, $ in Millions	Total	Leidos Holdings, Inc. stockholders' equity	Shares of common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Non-controlling interest
Opening balance at Jan. 30, 2015	$ 998	$ 998		$ 1,433	$ (424)	$ (11)	$ 0
Opening balance, shares at Jan. 30, 2015			74
Net income	116	116			116
Issuances of stock (less forfeitures)	4	4		4
Repurchases of stock and other, shares			(2)
Repurchases of stock and other	(114)	(114)		(114)
Dividends of $0.96 per share	(72)	(72)			(72)
Stock-based compensation	22	22		22
Closing balance, shares at Oct. 02, 2015			72
Closing balance at Oct. 02, 2015	954	954		1,345	(380)	(11)	0
Opening balance at Jan. 01, 2016	1,068	1,068		1,353	(277)	(8)	0
Opening balance, shares at Jan. 01, 2016			72
Net income	186	185			185		1
Other comprehensive income, net of taxes	2	2				2
Issuances of stock (less forfeitures), shares			1
Issuances of stock (less forfeitures)	36	36		36
Repurchases of stock and other	(20)	(20)		(20)
Dividends of $0.96 per share	(96)	(96)			(96)
Special cash dividend of $13.64 per share	(1,022)	(1,022)		(1,022)
Stock-based compensation	25	25		25
Stock issued for the IS&GS Business acquisition, shares			77
Stock issued for the IS&GS Business acquisition	2,938	2,938		2,938
Equity interest acquired	13						13
Closing balance, shares at Sep. 30, 2016			150
Closing balance at Sep. 30, 2016	$ 3,130	$ 3,116		$ 3,310	$ (188)	$ (6)	$ 14

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Statement of Stockholders' Equity [Abstract]
Dividends paid (usd per share)	$ 0.96	$ 0.96
Special dividend paid (usd per share)	$ 13.64

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Cash flows from operations:
Net income	$ 186	$ 127
Income from discontinued operations	0	(18)
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	54	35
Stock-based compensation	25	23
Asset impairment charges	0	73
Bad debt expense and other, net	(2)	8
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	140	145
Inventory, prepaid expenses and other current assets	(124)	(22)
Accounts payable and accrued liabilities	36	71
Accrued payroll and employee benefits	(2)	(26)
Deferred income taxes and income taxes receivable/payable	(19)	(20)
Other long-term assets/liabilities	(10)	(18)
Total cash flows provided by operating activities of continuing operations	284	378
Cash flows from investing activities:
Payments for property, plant and equipment	(20)	(15)
Acquisition of business	25	0
Payments on accrued purchase price related to prior acquisition	0	(13)
Net proceeds from sale of assets	3	9
Proceeds from disposition of business	23	27
Proceeds from collections on promissory note	4	0
Other	(1)	0
Total cash flows provided by investing activities of continuing operations	34	8
Cash flows from financing activities:
Payments of long-term debt	(102)	(49)
Proceeds from debt issuance	690	0
Payments for debt issuance costs	(30)	0
Proceeds from issuances of stock	25	4
Repurchases of stock and other	(20)	(116)
Special cash dividend payment	(993)	0
Dividend payments	(94)	(71)
Other	0	3
Total cash flows used in financing activities of continuing operations	(524)	(229)
(Decrease) increase in cash and cash equivalents from continuing operations	(206)	157
Cash flows from discontinued operations:
Cash provided by operating activities of discontinued operations	0	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 (decrease) increase in cash and cash equivalents	(207)	176
Cash and cash equivalents at beginning of period	656	459
Cash and cash equivalents at end of period	$ 449	$ 635

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos"), a holding company whose direct 100% -owned subsidiaries are Leidos, Inc. and Leidos Innovations Corporation ("Leidos Innovations"), is a global science and technology solutions company that provides technology and engineering solutions in the defense, intelligence, homeland security, civil and health markets. Leidos' domestic customers include agencies of the U.S. Department of Defense ("DoD"), the intelligence community, the U.S. Department of Homeland Security ("DHS"), the Department of Health and Human Services, other U.S. Government civil agencies and state and local government agencies. Leidos' international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia. Unless indicated otherwise, references to the "Company," "we," "us" and "our" refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements of Leidos include the balances of its majority-owned and 100% -owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed financial information has been prepared in accordance with the rules of the U.S. Securities and Exchange Commission ("SEC") and accounting principles generally accepted in the United States of America ("GAAP"). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to indirect cost billings, allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, estimated profitability of long-term contracts, pension benefits, stock-based compensation expense and contingencies. Estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates. On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with the Information Systems & Global Solutions business (the "IS&GS Business") of Lockheed Martin Corporation in a Reverse Morris Trust transaction. The acquired IS&GS Business was renamed Leidos Innovations Corporation. See "Note 2–Acquisitions" for further information. As a result of the Lockheed Martin transaction, the Company received an interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Jacobs Engineering Group, Inc. and Centerra Group, LLC. The Company has consolidated the financial results for MSA into its condensed consolidated financial statements. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The Company disaggregated "Goodwill and intangible assets, net" into "Goodwill" and "Intangible assets, net"; separately disclosed "Dividends payable" and "Income taxes payable," which were previously aggregated within "Accounts payable and accrued liabilities"; and separately disclosed "Deferred tax liabilities," which was previously aggregated within "Other long-term liabilities," on the condensed consolidated balance sheets. Additionally, the Company separately disclosed "Restructuring expenses," which was previously aggregated within "Selling, general and administrative expenses" on the condensed consolidated statements of income. During the Company's first quarter ended April 1, 2016, the company adopted ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , resulting in a reclassification of deferred financing costs related to the Company's notes of $7 million from "Other assets" to "Notes payable and long-term debt, net of current portion" in the Company's condensed consolidated balance sheets as of January 1, 2016 (see "Accounting Standards Updates Adopted" below). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which consist of normal recurring adjustments, necessary for a fair presentation thereof. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Transition Report on Form 10-K filed on February 26, 2016. Fair Value Measurements The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3). The Company’s cash equivalents were primarily comprised of investments in several large institutional money market funds and bank deposits, with original maturity of three months or less. There are immaterial restrictions on the withdrawal of the Company’s cash and cash equivalents of foreign currency due to exchange control regulations. The Company's cash equivalents are recorded at historical cost, which equals fair value based on quoted market prices (Level 1 input). The Company's financial instruments measured at fair value on a recurring basis using Level 2 inputs consisted of the Company's interest rate swaps on its $450 million fixed rate 4.45% notes maturing in December 2020 and its interest rate swaps on $1.2 billion of the aggregate principal outstanding on the Company's variable rate senior secured notes (see "Note 8–Derivative Instruments"). At September 30, 2016, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis using Level 3 inputs. The Company’s non-financial instruments measured at fair value on a non-recurring basis include goodwill, indefinite-lived intangible assets and long-lived tangible assets. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions. As such, the Company generally classifies non-financial instruments as either Level 2 or Level 3 fair value measurements. On August 16, 2016, the Company had non-financial instruments measured at fair value on a non-recurring basis in connection with the acquisition of Lockheed Martin's IS&GS Business. Refer to "Note 2–Acquisitions" for the preliminary fair values of the assets acquired and liabilities assumed. At September 30, 2016, the Company did not have any non-financial instruments measured at fair value on a non-recurring basis. The carrying amounts of the Company’s financial instruments, other than derivatives, which include cash equivalents, accounts receivable, accounts payable and accrued expenses, are reasonable estimates of their related fair values. The carrying value of the Company's notes receivable as of September 30, 2016, of $92 million approximates fair value as the stated interest rates within the agreements are consistent with the current market rates used in notes with similar terms in the market (Level 2 inputs). The fair value of long-term debt (see "Note 9–Debt") is determined based on current interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements (Level 2 inputs). Changes in Estimates on Contracts Changes in estimates related to certain types of contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can routinely occur over the contract performance period for a variety of reasons, including changes in contract scope, contract cost estimates and estimated incentive or award fees. Changes in estimates on contracts for the periods presented were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions, except per share amounts) Net increase in income from continuing operations before taxes $ 4 $ 10 $ 17 $ 20 Impact on diluted EPS from continuing operations $ 0.02 $ 0.08 $ 0.12 $ 0.16 Supplementary Cash Flow Information Supplementary cash flow information, including non-cash investing and financing activities, for the periods presented was as follows: Nine Months Ended September 30, October 2, (in millions) Dividends declared and other $ 20 $ 25 Stock issued in lieu of cash dividends $ 10 $ 2 Capital lease obligation $ — $ 6 Promissory note received for disposition of business $ — $ 73 Stock issued for acquisition of the IS&GS Business $ 2,938 $ — Cash paid for interest $ 53 $ 33 Cash paid for income taxes, net of refunds (including discontinued operations) $ 45 $ 50 Accounting Standards Updates Adopted In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . This update eliminates separate presentation for debt issuance costs as an asset and requires issuance costs to be reported in the balance sheet as a direct reduction to the face amount of the associated debt. The Company adopted this ASU on a retrospective basis during the Company's first quarter ended April 1, 2016. This resulted in a reclassification of deferred financing costs related to the Company's notes of $7 million from "Other assets" to "Notes payable and long-term debt, net of current portion" in the Company's condensed consolidated balance sheets as of January 1, 2016. In March 2016, the FASB issued ASU 2016-09 Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. Among other requirements in the new standard, the ASU requires that an entity, (i) recognize excess tax benefits and deficiencies related to employee share-based payment transactions as an income tax expense or benefit in the income statement rather than in equity; (ii) present the excess tax benefits as an operating activity on the statement of cash flows versus current guidance to present them as financing activities; and, (iii) elect to either recognize stock forfeitures as they occur or estimate them. During the quarter ended July 1, 2016, the Company elected to early adopt the provisions of the ASU prospectively from January 2, 2016, including continuation of estimating forfeitures instead of recording them as they occur. Consequently, the Company recognized a $3 million and $7 million discrete tax benefit for the quarter and six months ended July 1, 2016, respectively, and operating cash flows for the six months ended July 1, 2016, increased $7 million with a corresponding decrease to financing cash flows. Accounting Standards Updates Issued But Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts). This ASU will supersede all revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance throughout the industry topics of the codification. The guidance's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue principles, an entity will identify the contract(s) with a customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when the performance obligation is satisfied (either over time or at a point in time). The ASU further states that an entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which approved a one-year deferral of the effective date of the ASU from the original effective date of annual reporting periods beginning after December 15, 2016, to annual reporting periods (including interim reporting periods) beginning after December 15, 2017, with an option for early adoption of the standard on the original effective date. Additionally, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , that amended the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 805): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting , which rescinded from the FASB Accounting Standards Codification ("ASC") certain SEC paragraphs as a result of two SEC Staff Announcements. The FASB also issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which clarified guidance on assessment of collectibility, presentation of sale taxes, measurement of noncash consideration and certain transition matters. The Company is evaluating the impact that the provisions of ASU 2014-09 and related subsequent updates will have on the Company's condensed consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This ASU will supersede the current lease guidance under ASC 840 and makes several changes, such as requiring an entity to recognize a right-of-use asset and corresponding lease obligation in the balance sheet, classified as financing or operating, as appropriate. The standard requires adoption under the modified retrospective approach and is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-02 and its impact on the Company's condensed consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU eliminates the requirement that a credit loss on a financial instrument be “probable” prior to recognition. Instead, a valuation allowance will be recorded to reflect an entity’s current estimate of all expected credit losses, based on both historical and forecasted information related to an instrument. The amendments in the update will be effective for public Companies for fiscal years beginning after December 15, 2019, including interim periods within those years and should be adopted using a modified-retrospective approach, which applies a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date and loans and debt securities acquired with deteriorated credit quality. The guidance may be early-adopted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the provisions of ASU 2016-13 and its impact on the Company's condensed consolidated financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. This ASU clarifies guidance for cash flow classification to reduce current and potential future diversity in practice. The amendments should be applied using a retrospective transition method to each period presented. For items that are impractical to apply the amendments retrospectively, they shall be applied prospectively as of the earliest date practicable. The amendments in this Update are effective for public entities beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-15 and its impact on the Company's condensed consolidated cash flows.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisitions	Acquisitions On January 26, 2016, Leidos announced that it had entered into a definitive agreement (as amended, the "Merger Agreement") with Lockheed Martin Corporation ("Lockheed Martin"); Abacus Innovations Corporation, a Delaware corporation and a wholly owned subsidiary of Lockheed Martin ("Splitco"); and Lion Merger Co., a Delaware corporation and, at the time of announcement, a wholly owned subsidiary of Leidos ("Merger Sub"), pursuant to which Leidos would combine with Lockheed Martin’s realigned Information Systems & Global Solutions business in a Reverse Morris Trust transaction. In connection with the Merger Agreement, Lockheed Martin and Splitco entered into a Separation Agreement dated January 26, 2016 (as amended, the "Separation Agreement"), pursuant to which Lockheed Martin would separate the IS&GS Business from Lockheed Martin and transfer the IS&GS Business to Splitco. The transactions contemplated by the Merger Agreement and the Separation Agreement are referred to herein as the “Transactions.” On August 16, 2016, the acquisition date, the Company completed the Transactions. In the Transactions, among other steps, (i) Lockheed Martin transferred the IS&GS Business to Splitco; (ii) Lockheed Martin offered to Lockheed Martin stockholders the right to exchange all or a portion of their shares of Lockheed Martin common stock for shares of Splitco common stock by way of an exchange offer (the "Distribution"); and (iii) Merger Sub merged with and into Splitco, with Splitco as the surviving corporation (the "Merger") and a wholly owned subsidiary of Leidos. Additionally, on the closing date of the Transactions, Splitco's name was changed to Leidos Innovations Corporation. Upon consummation of the Transactions, those Lockheed Martin stockholders who elected to participate in the exchange offer received approximately 77 million shares of Leidos common stock, which represent approximately 50.5% of the outstanding shares of Leidos common stock after consummation of the Transactions. Holders of Leidos shares prior to the transaction held the remaining 49.5% of the outstanding shares of Leidos common stock immediately after the closing. Prior to the Distribution, Splitco incurred third-party debt financing in an aggregate principal amount of $1.8 billion and immediately thereafter, Lockheed Martin transferred the IS&GS Business to Splitco and Splitco made a special cash payment to Lockheed Martin of $1.8 billion . In connection with the Transactions, Leidos incurred new indebtedness and assumed Splitco's indebtedness in the form of term loans in an aggregate principal amount of $690 million and $1.8 billion , respectively, and entered into a new $750 million senior secured revolving credit facility, which replaced its existing revolving credit facility. See "Note 9–Debt" for further information regarding the new debt incurred and the new senior revolving credit facility. In conjunction with the Transactions, Leidos' Board of Directors declared a special dividend of $13.64 per share of Leidos common stock. On August 22, 2016, the Company paid $993 million to stockholders of record as of August 15, 2016. As a result of the special dividend declaration, the Company accrued $29 million of dividend equivalents with respect to outstanding equity awards. See "Note 12–Stock Based Compensation" for further information regarding the modifications made to the Company's outstanding stock awards as a result of the special dividend. In connection with the Transactions, membership on the Leidos Board of Directors was increased to 12 directors, in which three directors designated by Lockheed Martin were appointed to the board. A majority of the senior management of Leidos immediately prior the consummation of the Transactions remained Leidos executive officers immediately after the Transactions. Leidos management determined that Leidos is the accounting acquirer in the Transactions based on the facts and circumstances noted within this section and other relevant factors. The acquisition adds large, complex IT system implementation and operation experience and additional federal and international IT solutions and services work to the Leidos portfolio, providing more venues to sell value added services such as cybersecurity and analytics. As a result, the Company is more diversified in markets it serves and provides the Company the scale and access to markets intended to further growth. In connection with the Transactions, certain additional agreements were entered into, including, among others an employee matters agreement, a tax matters agreement, transition services agreements, an intellectual property matters agreement, agreements relating to certain government contracts matters, supply agreements and certain real estate related agreements. The preliminary purchase consideration for the acquisition of the IS&GS Business was as follows (in millions): Value of common stock issued to Lockheed Martin stockholders (1) $ 2,929 Equity consideration for replacement awards (2) 9 Preliminary working capital adjustments 22 Preliminary purchase price $ 2,960 (1) Represents approximately 77 million new shares of Leidos common stock issued to those Lockheed Martin stockholders who elected to participate in the exchange offer, based on the Company's August 16, 2016, closing share price of $51.69 , less the Leidos special cash dividend amount of $13.64 , which the Lockheed Martin stockholders were not entitled to receive. (2) The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger (see "Note 12–Stock Based Compensation"). The preliminary fair values of the assets acquired and liabilities assumed at the date of the Transactions were as follows (in millions): Cash $ 25 Receivables, net 974 Inventory, prepaid expenses and other current assets 58 Property, plant and equipment 96 Deferred income taxes 35 Intangible assets 1,650 Other assets 24 Accounts payable and accrued liabilities (699 ) Accrued payroll and employee benefits (189 ) Deferred tax liabilities (847 ) Long-term debt (1,803 ) Other long-term liabilities (18 ) Total identifiable net liabilities assumed (694 ) Non-controlling interest (13 ) Goodwill 3,667 Preliminary purchase price $ 2,960 Due to the recent completion and complexity of the Transactions, the Company recorded the assets acquired and liabilities assumed at their preliminary estimated fair values. As of September 30, 2016, the Company had not finalized the determination of fair values allocated to various assets and liabilities, including, but not limited to, receivables, net; property, plant and equipment; deferred income taxes; deferred revenue; intangible assets; accounts payable and accrued liabilities; loss contracts; non-controlling interest; and the residual amount allocated to goodwill. The preli minary p urchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of the Transactions. The goodwill is attributable to the new reportable IS&GS segment. The goodwill represents intellectual capital and the acquired assembled work force, none of which qualify for recognition as a separate intangible asset. The preliminary goodwill presented above includes $348 million of tax deductible goodwill. The Company identified $1.7 billion of intangible assets, representing programs and contract intangibles and backlog. The following table summarizes the preliminary fair value of intangible assets acquired at the date of acquisition and the related weighted average useful lives: Weighted average amortization period Fair value (in years) (in millions) Programs and contract intangibles 10.0 $ 1,450 Backlog 1.4 $ 200 The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business: Three Months Ended Nine Months Ended September 30, September 30, (in millions) Acquisition costs $ 27 $ 40 Integration costs 17 28 Total acquisition and integration costs $ 44 $ 68 Pro Forma Financial Information The following unaudited pro forma financial information presents consolidated results of operations as if the acquisition had occurred on January 3, 2015. The pro forma financial information was prepared based on historical financial information and has been adjusted to give effect to the events that are directly attributable to the Transactions and factually supportable. The unaudited pro forma results below do not reflect future events that have occurred or may occur after the Transactions, including anticipated synergies or other expected benefits that may be realized from the Transactions. The pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had been completed on January 3, 2015, nor is it intended to be an indication of future operating results. Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions, except per share data) Revenues $ 2,607 $ 2,703 $ 7,868 $ 7,994 Income from continuing operations 132 64 291 177 Income from continuing operations attributable to Leidos Holdings, Inc. 131 63 286 173 Earnings per share: Basic $ 0.87 $ 0.42 $ 1.91 $ 1.15 Diluted 0.86 0.42 1.89 1.15 The unaudited pro forma financial information above includes the following nonrecurring significant adjustment made to account for certain costs incurred as if the Transactions had been completed on January 3, 2015: • Acquisition-related costs of $27 million and $40 million for the quarter and nine months ended September 30, 2016, respectively, were excluded within the pro forma financial information for fiscal 2016 and were included within the supplemental pro forma earnings for the nine months ended October 2, 2015.

Restructuring Expenses

Restructuring Expenses	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Expenses	Restructuring Expenses IS&GS Business Acquisition After the acquisition of the IS&GS Business, the Company initiated a program to align its cost structure, which includes optimization of its real estate portfolio by vacating certain facilities and consolidating others, and by reducing headcount. The Company anticipates this restructuring program to last through fiscal 2018 and expects to incur approximately $143 million in connection with these restructuring activities. The restructuring expenses related to this program were as follows: Three and Nine Months Ended September 30, (in millions) Severance costs $ 4 Lease termination expenses 1 Restructuring expenses related to the IS&GS Business in operating income $ 5 These restructuring expenses have been recorded within the Corporate and Other segment and presented separately within "Restructuring expenses" on the condensed consolidated statements of income. The restructuring liability related to the Transactions at September 30, 2016, was: Severance costs Lease termination expenses Total (in millions) Balance at January 1, 2016 $ — $ — $ — Charges 4 1 5 Cash payments (3 ) — (3 ) Balance at September 30, 2016 $ 1 $ 1 $ 2 The Company does not expect the restructuring liability to be fully settled within one year . Separation of New SAIC and Real Estate Optimization Initiatives In fiscal 2014, in anticipation of the spin-off of New SAIC from the Company, the Company initiated an overall spin-off program to align the Company’s cost structure for post spin-off. The Company has continued its real estate optimization initiatives post separation to improve its cost profile and has exited real estate leases and incurred restructuring charges consisting of various expenses such as lease termination fees, asset impairment charges and lease vacancy reserves. The restructuring expenses related to the separation of New SAIC and the Company's real estate optimization initiatives were as follows: Nine Months Ended September 30, October 2, (in millions) Lease termination expenses $ 1 $ 2 During the nine months ended September 30, 2016, and October 2, 2015, the lease termination expenses related to lease losses and an adjustment to reserves for lease losses from the spin-off due to revised sublease income assumptions. The termination expenses were recorded within the Corporate and Other segment and presented separately within "Restructuring expenses" on the condensed consolidated statements of income. The Company did not incur lease termination expenses for the quarter ended September 30, 2016 and October 2, 2015. The restructuring liability, related to the SAIC separation, at September 30, 2016 was: Lease termination expenses (in millions) Balance at January 1, 2016 $ 7 Charges 1 Cash payments (4 ) Balance at September 30, 2016 $ 4 The Company does not expect the restructuring liability to be fully settled within one year .

Divestitures

Divestitures	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Divestitures Dispositions In April 2016, the Company’s Health and Infrastructure Sector ("HIS") segment disposed of a business that was primarily focused on providing design, build and heavy construction engineering services. The Company received cash proceeds of $23 million , resulting in a preliminary pre-tax gain on sale of $3 million , subject to certain customary working capital adjustments. The major classes of assets and liabilities sold included $73 million of accounts receivable, net; $3 million of non-current assets and $63 million of accounts payable and accrued liabilities. In addition, the Company recorded a $6 million liability in connection with issuance of a performance guarantee on a contract sold and guarantee of collection of the accounts receivables transferred. The Company paid $1 million of selling costs related to the transaction. The Company is eligible to receive contingent consideration up to $2 million upon achievement of certain income targets. The Company will record any contingent consideration when payments are received. The Company recorded the preliminary pre-tax gain on sale in "Other (expense) income, net" in the Company's condensed consolidated statements of income. Plainfield Renewable Energy Holdings LLC In March 2015, the Company entered into a definitive Membership Interest Purchase Agreement (the "Agreement") to sell 100% of the equity membership interest in Plainfield Renewable Energy Holdings, LLC ("Plainfield"). This resulted in a $40 million impairment charge in the Company's HIS segment in January 2015 to adjust the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business (Level 1). During the quarter ended July 3, 2015, further negotiations occurred related to the sale of Plainfield resulting in an additional $29 million impairment charge. The Company adjusted the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business pursuant to the terms of the Agreement that was amended on July 17, 2015 (Level 1). These impairment charges are presented separately in the Company’s condensed consolidated statements of income. On July 24, 2015, the Company completed the sale of its equity interests in Plainfield for an aggregate consideration of $102 million , subject to certain adjustments and contingent earn-out payments. The consideration received by the Company at closing consisted of a cash payment of $29 million and a secured promissory note for $73 million , net of discount (the “Note”). The Note is payable semi-annually with a final lump sum in July 2018 . The Company collected $6 million of principal and interest during 2016 and expects the remainder of the Note to be collectible in full. Discontinued Operations Separation of New SAIC The Company completed the spin-off of New SAIC on September 27, 2013. New SAIC was a subsidiary of Leidos prior to the separation date. The spin-off was consummated pursuant to the terms of a Distribution Agreement and several other agreements entered into between the Company and New SAIC on September 25, 2013. These agreements govern the treatment of existing contracts, proposals and teaming arrangements where New SAIC will jointly perform work after separation on Leidos contracts. The operating results of the Company's discontinued operations for the periods presented were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Revenues $ 3 $ 4 $ 10 $ 18 Costs and expenses: Cost of revenues 3 4 10 16 Selling, general and administrative expenses — — — 4 Operating loss $ — $ — $ — $ (2 ) Non-operating income $ — $ — $ — $ 2

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets As mentioned in "Note 2–Acquisitions," the acquired IS&GS Business was identified as a new operating and reportable segment. The balance and changes in the carrying amount of goodwill by segment were as follows: NSS HIS IS&GS Total (in millions) Goodwill at January 1, 2016 $ 788 $ 419 $ — $ 1,207 Acquisition of the IS&GS Business — — 3,667 3,667 Goodwill at September 30, 2016 $ 788 $ 419 $ 3,667 $ 4,874 Goodwill is tested for impairment at the reporting unit level annually, at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. There were no goodwill impairments during the nine months ended September 30, 2016, and October 2, 2015. Intangible assets, including the preliminary fair values of those acquired through the purchase of the IS&GS Business, consisted of the following: September 30, 2016 January 1, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Customer relationships $ 6 $ (5 ) $ 1 $ 20 $ (16 ) $ 4 Software and technology 61 (47 ) 14 61 (44 ) 17 Programs and contract intangibles 1,450 (8 ) 1,442 — — — Backlog 200 (18 ) 182 — — — Total finite-lived intangible assets 1,717 (78 ) 1,639 81 (60 ) 21 Indefinite-lived intangible assets: Trade names 4 — 4 4 — 4 Total indefinite-lived intangible assets 4 — 4 4 — 4 Total intangible assets $ 1,721 $ (78 ) $ 1,643 $ 85 $ (60 ) $ 25 During the quarter ended October 2, 2015, the Company determined that certain customer relationship intangible assets associated with Vitalize and maxIT were not recoverable due to lower projected revenue and operating income levels from the associated customers. As a result, the Health and Infrastructure Sector reportable segment recognized an impairment charge of $4 million to write-off the remaining carrying value (with a gross carrying value of $38 million ). The fair value of the impairment charge was estimated using the income approach based on management's forecast of future cash flows to be derived from the assets' use (Level 3). The Company recorded the intangible asset impairment charge in "Asset impairment charges" in the Company's condensed consolidated statements of income. Amortization expense related to amortizable intangible assets was $27 million and $30 million for the quarter and nine months ended September 30, 2016, respectively, and $2 million and $7 million for the quarter and nine months ended October 2, 2015, respectively. The acquired programs and contract intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future cash flows on a discounted basis. The acquired backlog intangible assets, as well as the Company's existing customer relationships and software and technology intangible assets, are amortized on a straight-line basis over their estimated useful lives. The estimated annual amortization expense related to finite-lived intangible assets as of September 30, 2016, was as follows: Fiscal Year Ending (in millions) 2016 (remainder of year) $ 54 2017 277 2018 212 2019 187 2020 164 2021 and thereafter 745 $ 1,639 The estimated future amortization may change based on the finalization of the fair value of the acquired intangible assets.

Receivables

Receivables	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Receivables	Receivables The components of receivables, net, consisted of the following: September 30, January 1, (in millions) Billed and billable receivables $ 756 $ 715 Unbilled receivables: Amounts billable 913 187 Contract retentions 18 29 Allowance for doubtful accounts (10 ) (10 ) $ 1,677 $ 921 The Company's accounts receivables include amounts billed and currently due from customers as well as billable receivables that generally consist of amounts to be billed within the next month. Since the Company's receivables are primarily with the U.S. Government, the Company does not have exposure to a material credit risk. Amounts billable are stated at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Amounts billable also include rate variances that are billable upon negotiation of final indirect rates with the U.S. Government and once billed, are subject to audit and approval by government representatives. Contract retentions are billed upon contract completion, or the occurrence of a specified event, and when negotiations of final indirect rates with the U.S. Government are complete. Consequently, the timing of collection of retention balances is outside the Company's control. Based on the Company's historical experience, the majority of retention balances are expected to be collected beyond one year and write-offs of retention balances have not been significant. When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded. The Company recorded "Bad debt expense" of $1 million for the quarter and nine months ended September 30, 2016, and $13 million and $10 million for the quarter and nine months ended October 2, 2015, respectively.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment, net consisted of the following: September 30, January 1, (in millions) Computers and other equipment $ 266 $ 161 Leasehold improvements 161 149 Buildings and improvements 101 57 Office furniture and fixtures 35 30 Land 17 15 Construction in progress 14 2 594 414 Less: accumulated depreciation and amortization (363 ) (272 ) $ 231 $ 142 Depreciation expense was $10 million and $24 million for the quarter and nine months ended September 30, 2016, respectively, and $9 million and $28 million for the quarter and nine months ended October 2, 2015, respectively. The asset balances and related depreciation may change upon finalization of the valuation of the acquired assets (see "Note 2–Acquisitions").

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments The Company manages its risk to changes in interest rates through the use of derivative instruments. The Company does not hold derivative instruments for trading or speculative purposes. For fixed rate borrowings, the Company uses variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings. These swaps are designated as fair value hedges. For variable rate borrowings, the Company uses fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings. These swaps are designated as cash flow hedges. Fair Value Hedges In September 2014, the Company entered into interest rate swap agreements to hedge the fair value of the $450 million fixed rate 4.45% senior secured notes maturing in December 2020 (the “Notes”). The objective of these instruments is to hedge the Notes against changes in fair value due to the variability in the six-month LIBOR rate (the benchmark interest rate). Under the terms of the interest rate swap agreements, the Company will receive semi-annual interest payments at the coupon rate of 4.45% and will pay variable interest based on the six-month LIBOR rate. The interest rate swaps were accounted for as a fair value hedge of the Notes and qualified for the shortcut method of hedge accounting, which allows for the assumption of no ineffectiveness reported in earnings. The resulting changes in the fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying debt (the hedged item). The fair value of the interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve (Level 2). The fair value of the Notes is stated at an amount that reflects changes in the benchmark interest rate, the six-month LIBOR rate, subsequent to the inception of the interest rate swaps through the reporting date. Cash Flow Hedges In August 2016, the Company entered into interest rate swap agreements to hedge the cash flows with respect to $1.2 billion of the Company's variable rate senior secured term loans (the "Variable Rate Loans"). The objective of these instruments is to reduce variability in the forecasted interest payments of the Company's Variable Rate Loans, which is based on the one-month LIBOR rate. Under the terms of the interest rate swap agreements, which mature in December 2021, the Company will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate of 1.08% . The counterparties to these agreements are financial institutions. The interest rate swaps were accounted for as a cash flow hedge of the Variable Rate Loans and qualified for hedge accounting treatment through the application of the long-haul method, which involves the comparison of cumulative changes in the fair value of the swap to the cumulative change in fair value of scheduled interest payments on the notional value (the perfectly effective hypothetical or "PEH"). The effective portion of the gain/loss on the swap will be reported as a component of other comprehensive income/loss and will be reclassified into earnings on the dates the interest payments impact earnings. The amount of ineffectiveness, if any, recorded in earnings will be equal to the excess of the cumulative change in fair value of the swap over the cumulative change in the fair value of the PEH. The fair value of the interest rate swaps is determined based on observed values for the underlying interest rate (Level 2). The fair value of the interest rate swaps was as follows: Asset Derivatives Balance sheet line item September 30, January 1, (in millions) Fair value interest rate swaps Other assets $ 17 $ 8 Liability Derivatives Balance sheet line item September 30, January 1, (in millions) Cash flow interest rate swaps Other long-term liabilities $ 6 $ — The fair value adjustment to the fair value interest rate swap and the underlying debt was a decrease of $5 million and an increase of $9 million for the quarter and nine months ended September 30, 2016, respectively. The effect of the Company's cash flow hedge on other comprehensive loss and earnings for the periods presented was as follows: Three and Nine Months Ended September 30, (in millions) Effective portion recognized in other comprehensive loss $ (7 ) Effective portion reclassified from accumulated other comprehensive loss to earnings 1 The Company expects to reclassify losses of $5 million from accumulated other comprehensive loss into earnings during the next 12 months. There was no ineffectiveness recognized in earnings for the quarter and nine months ended September 30, 2016. The cash flows associated with both interest rate swaps are classified as operating activities in the condensed consolidated statements of cash flows.

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt Notes Payable and Long-Term Debt The Company's notes payable and long-term debt consisted of the following: Stated interest rate Effective interest rate September 30, January 1, (dollars in millions) Senior secured notes: $450 million notes, due December 2020 4.45% 4.53% $ 465 $ 455 $300 million notes, due December 2040 5.95% 6.03% 216 216 Senior secured term loans: $400 million Term Loan A, due August 2019 2.77% 3.58% 294 — $690 million Term Loan A, due August 2021 2.77% 3.33% 675 — $310 million Term Loan A, due August 2021 2.77% 3.31% 304 — $1,131 million Term Loan B, due August 2023 3.27% 3.62% 1,109 — Senior unsecured notes: $250 million notes, due July 2032 7.13% 7.43% 246 246 $300 million notes, due July 2033 5.50% 5.88% 158 158 Capital leases due on various dates through fiscal 2020 0%-5.94% Various 3 6 Total notes payable and long-term debt 3,470 1,081 Less: current portion 42 2 Total notes payable and long-term debt, net of current portion $ 3,428 $ 1,079 Fair value of notes payable and long-term debt $ 3,536 $ 1,060 Senior Secured Notes As a result of executing the fair value interest swap agreements, the carrying values of the 4.45% senior secured notes at September 30, 2016, and January 1, 2016, included $17 million and $8 million , respectively, of the fair value of interest rate swaps (see "Note 8–Derivative Instruments"). Senior Secured Term Loans On August 16, 2016, in connection with the acquisition of the IS&GS Business, Leidos, Inc. secured a new term loan of $690 million from certain financial institutions. In addition, as a result of the acquisition, Leidos assumed the IS&GS Business' term loans of $1.8 billion , which were obtained by the IS&GS Business immediately prior to the Transactions (see "Note 2–Acquisitions"). The outstanding obligations under the term loans are secured by a first priority lien on substantially all of the assets of the Company, subject to certain exceptions set forth in the credit agreements and related documentation. The interest rate on these new borrowings is determined based on the LIBOR rate plus a margin. The margin for these notes ranges from 1.75% to 2.25% , depending on the Company's senior secured leverage ratio, and is re-determined on a quarterly basis. At September 30, 2016, the current margin on Term Loan A was 2.25% . The stated margin on Term Loan B is 2.75% . As part of the credit agreements, the Company is required to perform a calculation each quarter that determines the incremental available amount of funds the Company is permitted to use towards investments relating to mergers and acquisitions, investments in joint ventures, repayment of outstanding debt and restricted payments relating to dividends and share repurchases. The incremental available amount is calculated as $35 million plus a portion of certain cash proceeds, multiplied by a percentage tied to the Company's senior secured leverage, which is added to an annual fixed amount of $250 million , as defined in the credit agreements. The constraints associated with use of cash are reduced and/or eliminated based on the Company's senior secured leverage ratio. The Company is also required to perform an excess cash flow calculation annually that determines the additional amount of debt prepayments the Company is required to make during the first quarter of the following fiscal year, with the first payment occurring in 2018. The excess cash flow is calculated based on the Company's consolidated net income as of the end of the fiscal year plus or minus adjustments for certain non-cash items and incurred and expected cash payments, as defined in the credit agreements. The amount of the excess cash flow that the Company is required to use to prepay the loans is based upon the Company's senior secured leverage ratio. The required debt prepayment amount is equal to 50% of the excess cash flow calculated if the senior secured leverage ratio is greater than 2.75 and is equal to 25% of the excess cash flow calculated if the ratio is between 2.75 and 2.00 . No additional debt prepayment is required if the senior secured leverage ratio is less than 2.00 . On September 30, 2016, the Company repaid $100 million of its senior secured $400 million Term Loan A, due August 2019 . Associated with this early repayment, $2 million of unamortized debt discount and deferred financing costs were written off and recorded to "Other (expense) income, net" in the Company's condensed consolidated statements of income. Principal is payable on the Company's variable rate senior secured term loans on a quarterly basis, with the majority of the principal due at maturity. Interest is payable on the Company's variable rate senior secured term loans on a periodic basis, which must be at least quarterly. Interest is payable on the Company's senior fixed rate secured notes and unsecured notes on a semi-annual basis with principal payments due at maturity. In connection with the new senior secured term loans, the Company recognized $53 million of debt discount and debt issuance costs, which were recorded as an offset against the carrying value of debt and will be amortized to interest expense over the term of the term loans. Amortization for the senior secured term loans and notes and unsecured notes for the quarter and nine months ended September 30, 2016 was $3 million in each period, and for the quarter and nine months ended October 2, 2015 was immaterial and $1 million , respectively. The senior secured term loans and notes, unsecured notes and revolving credit facility (see "Revolving Credit Facility" below) are fully and unconditionally guaranteed by intercompany guarantees. The senior secured term loans and notes and unsecured notes contain certain customary restrictive covenants, including among other things, restrictions on the Company's ability to create liens and enter into sale and leaseback transactions under certain circumstances. The Company was in compliance with all covenants as of September 30, 2016. Revolving Credit Facility On August 16, 2016, Leidos, Inc. entered into a revolving credit facility providing up to $750 million in secured borrowing capacity at interest rates determined based upon the LIBOR rate plus a margin that is subject to step-down provisions based on the Company's senior secured leverage ratio. The maturity date of this credit facility is August 2021 . Leidos, Inc. recognized $15 million of origination costs related to the new credit facility, which were capitalized within "Other assets" in the condensed consolidated balance sheets. As of September 30, 2016, there were no borrowings outstanding under the new credit facility. The new credit facility replaced the previous $500 million credit facility that was set to expire in March 2018 . The remaining deferred costs associated with the former credit facility that were written-off during the quarter ended September 30, 2016, were immaterial. As of January 1, 2016, there were no borrowings outstanding under the former credit facility. The credit agreements contain certain customary representations and warranties, as well as certain affirmative and negative covenants. The financial covenants define the debt-to-EBITDA ratio that the Company needs to maintain at the end of each quarter. The Company maintains a ratio of total senior secured debt, including borrowings under this credit facility, to the trailing four quarters of EBITDA (adjusted for certain items as defined in the credit facility) of not more than 4.75 prior to February 16, 2018, 4.25 from February 16, 2018, to February 16, 2019, and 3.75 thereafter. The Company was in compliance with these financial covenants as of September 30, 2016. Other covenants in the credit agreements restrict certain of the Company's activities, including, among other things, its ability to create liens, dispose of certain assets and merge or consolidate with other entities. The credit facility also contains certain customary events of default, including, among others, defaults based on certain bankruptcy and insolvency events, nonpayment, cross-defaults to other debt, breach of specified covenants, Employee Retirement Income Security Act events, material monetary judgments, change of control events and the material inaccuracy of the Company's representations and warranties.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss were as follows: September 30, January 1, (in millions) Foreign currency translation adjustments, net of taxes of ($3) million as of September 30, 2016 $ 6 $ — Unrecognized net loss on derivative instruments associated with outstanding debt, net of taxes of $5 million and $3 million as of September 30, 2016, and January 1, 2016, respectively (8 ) (4 ) Unrecognized net loss on defined benefit plan, net of taxes of $2 million and $3 million as of September 30, 2016, and January 1, 2016, respectively (4 ) (4 ) Total accumulated other comprehensive loss, net of taxes of $4 million and $6 million as of September 30, 2016, and January 1, 2016, respectively $ (6 ) $ (8 ) Reclassifications from other comprehensive loss to net income relating to unrecognized net gain (loss) on derivative instruments associated with outstanding debt for the quarter and nine months ended September 30, 2016, and October 2, 2015, were not material. There were no reclassifications from other comprehensive loss to net income relating to foreign currency translation adjustments or unrecognized net gain (loss) on defined benefit plan during the quarter and nine months ended September 30, 2016, and October 2, 2015. Reclassifications for unrecognized net gain (loss) on derivative instruments associated with outstanding debt are recorded in "Interest expense, net" in the Company's condensed consolidated statements of income.

Earnings Per Share (EPS)

Earnings Per Share (EPS)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share (EPS)	Earnings Per Share (EPS) Basic EPS is computed by dividing net income attributable to Leidos stockholders by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards. The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Basic weighted average number of shares outstanding 112 72 85 73 Dilutive common share equivalents—stock options and other stock awards 2 1 2 1 Diluted weighted average number of shares outstanding 114 73 87 74 Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS. For the quarter and nine months ended September 30, 2016, there was an immaterial amount of outstanding stock options and vesting stock awards that were antidilutive. For the quarter and nine months ended October 2, 2015, there were a total of 2 million of outstanding stock options and vesting stock awards that were antidilutive in each period. As a result of the adoption of ASU 2016-09 during the quarter ended July 1, 2016, the excess tax benefit was removed from the assumed proceeds under the treasury stock method used to calculate the dilutive effect of outstanding stock options and other stock-based awards (see "Note 1–Summary of Significant Accounting Policies"). This resulted in an immaterial increase in diluted weighted average shares outstanding.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation and related tax benefits were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Total stock-based compensation expense $ 9 $ 9 $ 25 $ 23 Tax benefits recognized from stock-based compensation 3 4 10 9 Stock Options The fair value of the Company's stock option awards is estimated on the date of grant using the Black-Scholes- Merton option-pricing model. During the nine months ended September 30, 2016, expected volatility was based on using a blended approach, which included weighted average historical volatility of a group of publicly-traded peer companies, weighted average historical volatility of the Company and the weighted average implied volatility. The Company will continue to use peer group volatility information, until sufficient historical volatility of the Company's common stock is relevant, to measure expected volatility for future option grants. The expected volatility increased from pre-acquisition to post-acquisition due to a higher allocation of peer group volatility used post-acquisition compared to a higher allocation of historical volatility used pre-acquisition. The post-acquisition volatility reflected an updated peer group mix. The risk-free rate is derived using the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the stock option on the grant date. The dividend yield increased from pre-acquisition to post-acquisition due to historical stock price fluctuations. The Company uses historical data to estimate forfeitures. The assumptions used to determine fair value of stock options granted for the nine months ended September 30, 2016, and October 2, 2015 were as follows: Nine Months Ended September 30, 2016 September 30, 2016 October 2, Expected term (in years) 4.7 4.8 4.7 Expected volatility 37.9 % 29.9 % 24.5 % Risk-free interest rate 1.2 % 1.3 % 1.4 % Dividend yield 2.7 % 2.5 % 2.9 % Restricted Stock Units In connection with the IS&GS Business acquisition (see "Note 2–Acquisitions"), the Company issued 0.6 million replacement RSUs valued at $23 million , of which $9 million was allocated as purchase consideration attributed to pre-acquisition service and the remaining $12 million represents the total remaining stock-based compensation expense, net of estimated forfeitures. This remaining expense will be recognized over three years . Special Dividend Adjustment As a result of the payment of the special cash dividend to Leidos stockholders in August 2016, Leidos modified all outstanding stock options to preserve their original grant date fair value. The modifications resulted in a reduction in the strike prices of the outstanding stock options by a factor of 0.74 and an increase in the number of shares issuable upon the exercise of each option by a factor of 1.35 between the pre-modification stock price and post-modification stock price. These adjustments did not result in additional stock-based compensation expense, as the fair value of the outstanding options immediately following the payment of the special cash dividend was equal to the fair value immediately prior to such distribution. The modifications resulted in an increase in options outstanding by 0.9 million . The special dividend declared was $993 million . As a result of the special dividend declaration, the Company accrued $29 million of dividend equivalents with respect to outstanding equity awards. The transactions associated with the special cash dividend were recorded to "Additional paid-in capital" in the condensed consolidated balance sheets.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the quarter ended September 30, 2016, the Company's effective tax rate was (22.7)% compared to 38.8% for the quarter ended October 2, 2015. The lower effective tax rate for the quarter ended September 30, 2016, was primarily due to the tax deductibility of the special cash dividend, related to the Transactions described in "Note 2–Acquisitions", on shares held by the Leidos retirement plan, an income tax benefit from the resolution of certain tax contingencies with the tax authorities, and a tax benefit from the release of a valuation allowance. For the nine months ended September 30, 2016, the Company's effective tax rate was 12.7% compared to 29.7% for the nine months ended October 2, 2015. The lower effective tax rate for the nine months ended September 30, 2016 was primarily due to the tax deductibility of the special cash dividend on shares held by the Leidos retirement plan and a tax benefit realized for excess tax benefits related to employee stock-based payment transactions (see discussion of ASU 2016-09 in "Note 1–Summary of Significant Accounting Policies"). The adoption of this new accounting standard could result in fluctuations in the effective tax rate period over period depending on the amount of excess tax benefits or deficiencies recognized. The Company files income tax returns in the United States and various state and foreign jurisdictions. The Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Process, a real-time audit of the Company's consolidated federal corporate income tax return. The IRS has examined the Company's consolidated federal income tax returns through fiscal 2015. With a few exceptions, as of September 30, 2016, the Company is no longer subject to state, local or foreign examinations by the tax authorities for years before fiscal 2013. As of September 30, 2016, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $6 million , of which $5 million were classified as other long-term liabilities in the condensed consolidated balance sheets. While the Company believes it has adequate accruals for uncertain tax positions, the tax authorities may determine that the Company owes taxes in excess of recorded accruals or the recorded accruals may be in excess of the final settlement amounts agreed to by the tax authorities.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Business Segments	Business Segments During the quarter ended September 30, 2016, the Company completed its acquisition of Lockheed Martin's IS&GS Business (see "Note 2–Acquisitions"). The acquired IS&GS Business was identified as a new operating and reportable segment. In April 2016, the Company sold its design, build and heavy construction engineering business (see "Note 4–Divestitures"). Consequently, the reportable segment of Health and Engineering was renamed as Health and Infrastructure Sector. At September 30, 3016, Leidos' reportable segments were: National Security Solutions ("NSS"), Health and Infrastructure Sector ("HIS"), Information Systems & Global Solutions ("IS&GS") and Corporate and Other. The segment information for the periods presented was as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Revenues: National Security Solutions $ 921 $ 878 $ 2,734 $ 2,619 Health and Infrastructure Sector 328 418 1,115 1,182 Information Systems & Global Solutions 620 — 620 — Corporate and Other (1 ) 6 (1 ) 4 Total revenues $ 1,868 $ 1,302 $ 4,468 $ 3,805 Operating income (loss): National Security Solutions $ 91 $ 78 $ 224 $ 214 Operating income margin 9.9 % 8.9 % 8.2 % 8.2 % Health and Infrastructure Sector 41 13 116 (1 ) Operating income (loss) margin 12.5 % 3.1 % 10.4 % (0.1 )% Information Systems & Global Solutions 26 — 26 — Operating income margin 4.2 % — 4.2 % — Corporate and Other (57 ) 3 (101 ) (17 ) Total operating income $ 101 $ 94 $ 265 $ 196 Operating income margin 5.4 % 7.2 % 5.9 % 5.2 % Asset information by segment is not a key measure of performance used by the chief operating decision maker, currently the chief executive officer. Other income (expense), interest income, interest expense and provision for income taxes, as reported in the condensed consolidated financial statements, are not part of operating income and are primarily recorded at the corporate level. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in numerous indirect cost pools, which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base.

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings MSA Venture On November 10, 2015, MSA received a final decision of the Department of Energy ("DoE") contracting officer for the Mission Support Contract concluding that certain payments to MSA by DoE for the performance of IT services by Lockheed Martin Services, Inc. (“LMSI”) under a subcontract to MSA constituted alleged affiliate fees in violation of the Federal Acquisition Regulation (the "FAR"). Lockheed Martin Integrated Technology LLC (now known as Leidos Integrated Technology LLC) is a member entity of MSA. At the same time, the contracting officer advised MSA that he would not approve certain provisional fee payments to MSA pending resolution of the matters set forth in his decision. Subsequent to the contracting officer's final decision, MSA, LMSI, and Lockheed Martin Corporation received notice from the U.S. Attorney's Office for the Eastern District of Washington that the U.S. Government had initiated a False Claims Act investigation into the facts surrounding this dispute, and each of MSA, LMSI and Lockheed Martin Corporation have produced information in response to Civil Investigative Demands from the U.S. Attorney's Office. Since this issue first was raised by the DoE, MSA has asserted that the IT services performed by LMSI under a fixed price/fixed unit rate subcontract approved by the DoE meet the definition of a "commercial item" under the FAR and any profits earned on that subcontract are permissible. MSA filed an appeal of the contracting officer's decision with the Civilian Board of Contract Appeals and that appeal is pending, but has been stayed pending resolution of the False Claims Act investigation. Subsequent to the filing of MSA's appeal, the contracting officer demanded that MSA reimburse the DoE in the amount of $64 million , which was his estimate of the profits earned during the period from 2010 to 2014 by LMSI. The DoE has deferred that demand, pending resolution of the appeal, but to date the demand has not been rescinded. MSA and the other members of MSA have indicated they believe if MSA incurs a liability in this matter, then Leidos Integrated Technology, LLC is responsible to MSA for the loss. Under the terms of the Separation Agreement, Lockheed Martin has agreed to indemnify the Company for 100% of any damages in excess of $38 million up to $64 million , and 50% of any damages in excess of $64 million , with respect to claims asserted against MSA related to this matter. At September 30, 2016, the Company recorded a liability of $40 million and an indemnification asset of $2 million in the condensed consolidated balance sheets. Data Privacy Litigation The Company was previously a defendant in a putative class action, In Re: Science Applications International Corporation ("SAIC") Backup Tape Data Theft Litigation , which was a Multidistrict Litigation ("MDL") action in the U.S. District Court for the District of Columbia relating to the theft of computer backup tapes from a vehicle of a company employee. In May 2014, the District Court dismissed all but two plaintiffs from the MDL action. In June 2014, Leidos and its co-defendant, TRICARE, entered into settlement agreements with the remaining two plaintiffs who subsequently dismissed their claims with prejudice. On September 20, 2014, the Company was named as a defendant in a putative class action, Martin Fernandez, on Behalf Of Himself And All Other Similarly Situated v. Leidos, Inc. in the Eastern District Court of California, related to the same theft of computer backup tapes. The recent complaint includes allegations of violations of the California Confidentiality of Medical Information Act, the California Unfair Competition Law and other claims. On August 28, 2015, the Court dismissed all claims brought by the Plaintiff against the Company. Plaintiff filed a notice of appeal of this dismissal on November 17, 2015, to the United States Court of Appeals for the Ninth Circuit where the appeal remains pending. Plaintiff filed his appellate brief on May 6, 2016. Leidos filed its response on July 6, 2016 and Plaintiff filed his reply on August 19, 2016. Securities Litigation Between February and April 2012, alleged stockholders filed three putative securities class actions. One case was withdrawn and two cases were consolidated in the U.S. District Court for the Southern District of New York in In Re: SAIC, Inc. Securities Litigation . The consolidated securities complaint named as defendants the Company, a former chief financial officer, two former chief executive officers, a former group president and the former program manager on the Company's contract to develop and implement an automated time and attendance and workforce management system for certain agencies of the City of New York ("CityTime") and was filed purportedly on behalf of all purchasers of the Company's common stock from April 11, 2007, through September 1, 2011. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company’s revenues, operating income and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying Leidos' stock at an inflated price. On October 1, 2013, the District Court dismissed many claims in the complaint with prejudice and on January 30, 2014, the District Court entered an order dismissing all remaining claims with prejudice and without leave to replead. The plaintiffs moved to vacate the District Court's judgment or obtain relief from the judgment and for leave to file an amended complaint. On September 30, 2014, the District Court denied plaintiffs' motions. The plaintiffs then appealed to the United States Court of Appeals for the Second Circuit. On March 29, 2016, the Second Circuit issued an opinion affirming in part, and vacating in part, the District Court's ruling. In particular, the Second Circuit held that the plaintiffs should be permitted to pursue omissions claims against the Company with respect to the annual report the Company filed on Form 10-K on March 25, 2011; the Second Circuit affirmed dismissal of all other claims, including all the claims against the individual defendants. The Company petitioned the Second Circuit on April 12, 2016 to rehear the appeal, which was denied on August 2, 2016. The case is now remanded to the District Court for further proceedings on plaintiffs' claim. Greek Government Contract Background and Arbitration. In May 2003, the Company entered into a firm-fixed-price contract with the Hellenic Republic of Greece (the "Customer") to provide a Command, Control, Communications, Coordination and Integration System (the "System") to support the 2004 Athens Summer Olympic Games (the "Olympics") and to serve as the security system for the Customer’s public order departments following completion of the Olympics. In November 2008, the Customer accepted the System in writing pursuant to the requirements of the contract. At the time, the Customer determined that the System substantially complied with the terms of the contract and accepted the System with certain alleged minor omissions and deviations. Upon System acceptance, the Company invoiced the Customer for $15 million , representing the undisputed portion of the contract balance owed to the Company. The Customer has not paid this final invoice. In June 2009, the Company initiated arbitration before the International Chamber of Commerce against the Customer seeking damages for breaches of contract by the Customer. In July 2013, the Company received an arbitral award for $44 million . The Customer has yet to satisfy the arbitral award. The Company is pursuing an enforcement action in U.S. District Court for the District of Columbia. In September 2013, the Customer filed a petition in a Greek court seeking to nullify the arbitral award and to stay enforcement of the award in Greece. A hearing on the Customer's nullification request was held in Greece in April 2014. The parties agreed to a stay of the Company's enforcement action in U.S. District Court until the Greek court issued a ruling on the Customer's nullification request. In June 2014, the Athens Court of Appeals annulled the arbitral award. The Company appealed the annulment decision to the Supreme Court of Greece in January 2015 to have the arbitral award reinstated. On September 22, 2016, the Supreme Court of Greece issued a written decision upholding the Company’s appeal and remanding the case back to the appeals court for further proceedings consistent with the Supreme Court’s decision. The Company is continuing to pursue enforcement of the award in the U.S. District Court as is still its right under U.S. and international law. The outcomes of the appeal in Greece and the Company's pending enforcement action are uncertain. Financial Status and Contingencies. As a result of the significant uncertainties on this contract, the Company converted to the completed-contract method of accounting and ceased recognizing revenues for the System development portion of this contract in fiscal 2006. No profits or losses were recorded on the Greek contract for the quarter and nine months ended September 30, 2016, and October 2, 2015. As of September 30, 2016, the Company has recorded $123 million of losses under the Greek contract, reflecting the Company’s estimated total cost to complete the System, assuming the Greek contract value was limited to the cash received to date. Based on the complex nature of this contractual situation and the difficulties encountered to date, significant uncertainties exist and the Company is unable to reliably estimate the ultimate outcome. The Company may reverse a portion of the losses from the Greek contract if it receives payments as provided in the arbitral award. As of September 30, 2016, the Company's net balance sheet exposure for the Greek contract was $2 million . The Company has $28 million for value added tax ("VAT") included in the arbitration claim of which this amount was substantially awarded in the arbitral award. The Company has paid a certain amount of VAT and believes it is entitled to recover either as a payment from the arbitral award or as a refund from the taxing authorities. This amount paid is recorded as a receivable as of September 30, 2016, and is part of the net balance sheet exposure. If the Customer fails to pay the outstanding VAT amounts through the arbitral award or the Company is unable to recover these amounts as a refund from the taxing authorities, the Company’s total losses on the Greek contract could increase. The Company has met certain advance payment and performance bonding requirements through the issuance of euro-denominated standby letters of credit. As of September 30, 2016, there were $4 million in standby letters of credit outstanding relating to the support and maintenance of the System. In the arbitration, the Company was awarded but has not received $21 million representing the amounts drawn by the Customer in fiscal 2011 on certain standby letters of credit as well as damages. The principal subcontractor has provided to the Company euro-denominated standby letters of credit in the amount of $18 million as of September 30, 2016, of which $16 million relates to the delivery of the System. The Company may draw on the subcontractor’s standby letters of credit under certain circumstances by providing a statement to the responsible bank that the subcontractor has not fulfilled its obligations under the subcontract. Other The Company is also involved in various claims and lawsuits arising in the normal conduct of its business, none of which, in the opinion of the Company’s management, based upon current information, will likely have a material adverse effect on the Company’s condensed consolidated financial position, results of operations, or cash flows.

Other Commitments and Contingen

Other Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Other Commitments and Contingencies	Other Commitments and Contingencies VirnetX, Inc. In fiscal 2007, the Company transferred several patents to VirnetX Inc., a subsidiary of VirnetX Holding Corp. In consideration of this transfer, the Company received certain license rights and the right to receive a percentage of the consideration received in patent infringement or enforcement claims against third parties. In November 2012, a jury found that Apple Corporation infringed two of the patents that the Company previously transferred to VirnetX and awarded $368 million to VirnetX, but the United States Court of Appeals for the Federal Circuit vacated this award. Although VirnetX petitioned the appeals court for an en banc review, this request was denied and the case was remanded to the Federal District Court for further proceedings, including a new jury trial which began on January 25, 2016. On December 17, 2014, VirnetX settled a separate patent infringement dispute with Microsoft Corporation, with those parties executing an Amended Settlement and License Agreement. This agreement amended and restated certain terms of the original Settlement and License Agreement, dated May 14, 2010, between VirnetX and Microsoft. Under the terms of the amended agreement, Microsoft agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license. Under its agreements with VirnetX, the Company received proceeds in the second and third quarter of the prior year in the amount of $10 million , $8 million of which was received during the third quarter ended October 2, 2015, fr om VirnetX's settlement with Microsoft and VirnetX's settlement of a previous litigation matter against various defendants, including Mitel, Siemens and Avaya. Pursuant to the agreements with VirnetX, the amount received by the Company includes reimbursement for attorney's fees and costs incurred by the Company in connection with these litigation matters. In addition, the Company is required to pay a royalty on the proceeds received to the customer who paid for the development of the technology. On February 3, 2016, the jury in the United States Court for the Eastern District of Texas, Tyler Division, awarded VirnetX $626 million in a verdict against Apple for willful infringement of four VirnetX patents. However, on July 29, 2016, the court issued a new order in the pending litigation against Apple, Case No. 6:10-cs-417 ("Apple I") and Case No. 6:12-cv-855 ("Apple II"), vacating its previous order consolidating the two cases and ordering the parties to retry them as separate cases. On September 30, 2016, a jury in the United States Court for the Eastern District of Texas, Tyler Division, in the Apple I case, awarded VirnetX $302 million in a verdict against Apple for infringing four VirnetX patents. A jury trial in the Apple II case is expected to be scheduled by the court shortly after the conclusion of the Apple I case. Under its agreements with VirnetX, Leidos would receive 25% of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, it is expected that Apple will appeal the verdict and no assurances can be given when or if the Company will receive any proceeds in connection with this jury award. In addition, if the Company receives any proceeds, the Company is required to pay a royalty to the customer who paid for the development of the technology. The Company does not ha ve any assets or liabilities recorded in connection with this matter as of September 30, 2016. Government Investigations and Reviews The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to its role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States. Adverse findings could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows due to its reliance on government contracts. As of September 30, 2016, the Company believes it has adequately reserved for potential adjustments from audits or reviews of contract costs. Leidos, Inc.'s indirect cost audits by the DCAA remain open for fiscal 2011 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to and including fiscal 2011 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Leidos Innovations Corporation's indirect cost audits by the DCAA remain open for fiscal 2009 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to and including fiscal 2009 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Letters of Credit, Surety Bonds and Third-Party Guarantees The Company has outstanding letters of credit of $71 million as of September 30, 2016, principally related to guarantees on contracts. The Company also has outstanding surety bonds in the amount of $132 million , principally related to performance and subcontractor payment bonds on the Company’s contracts. The outstanding letters of credit and surety bonds have various terms with the majority of the letters of credit and bonds expiring over the next five fiscal years. Additionally, the Company has outstanding performance guarantees and cross-indemnity agreements in connection with certain aspects of its business. As of September 30, 2016, the Company is not aware of any existing event of default that would require it to satisfy any of these guarantees.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Accounting Policies [Abstract]
Receivables, Policy [Policy Text Block]		The Company's accounts receivables include amounts billed and currently due from customers as well as billable receivables that generally consist of amounts to be billed within the next month. Since the Company's receivables are primarily with the U.S. Government, the Company does not have exposure to a material credit risk. Amounts billable are stated at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Amounts billable also include rate variances that are billable upon negotiation of final indirect rates with the U.S. Government and once billed, are subject to audit and approval by government representatives.
Nature of Operations and Basis of Presentation	Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos"), a holding company whose direct 100% -owned subsidiaries are Leidos, Inc. and Leidos Innovations Corporation ("Leidos Innovations"), is a global science and technology solutions company that provides technology and engineering solutions in the defense, intelligence, homeland security, civil and health markets. Leidos' domestic customers include agencies of the U.S. Department of Defense ("DoD"), the intelligence community, the U.S. Department of Homeland Security ("DHS"), the Department of Health and Human Services, other U.S. Government civil agencies and state and local government agencies. Leidos' international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia. Unless indicated otherwise, references to the "Company," "we," "us" and "our" refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements of Leidos include the balances of its majority-owned and 100% -owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed financial information has been prepared in accordance with the rules of the U.S. Securities and Exchange Commission ("SEC") and accounting principles generally accepted in the United States of America ("GAAP"). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to indirect cost billings, allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, estimated profitability of long-term contracts, pension benefits, stock-based compensation expense and contingencies. Estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates. On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with the Information Systems & Global Solutions business (the "IS&GS Business") of Lockheed Martin Corporation in a Reverse Morris Trust transaction. The acquired IS&GS Business was renamed Leidos Innovations Corporation. See "Note 2–Acquisitions" for further information. As a result of the Lockheed Martin transaction, the Company received an interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Jacobs Engineering Group, Inc. and Centerra Group, LLC. The Company has consolidated the financial results for MSA into its condensed consolidated financial statements. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The Company disaggregated "Goodwill and intangible assets, net" into "Goodwill" and "Intangible assets, net"; separately disclosed "Dividends payable" and "Income taxes payable," which were previously aggregated within "Accounts payable and accrued liabilities"; and separately disclosed "Deferred tax liabilities," which was previously aggregated within "Other long-term liabilities," on the condensed consolidated balance sheets. Additionally, the Company separately disclosed "Restructuring expenses," which was previously aggregated within "Selling, general and administrative expenses" on the condensed consolidated statements of income. During the Company's first quarter ended April 1, 2016, the company adopted ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , resulting in a reclassification of deferred financing costs related to the Company's notes of $7 million from "Other assets" to "Notes payable and long-term debt, net of current portion" in the Company's condensed consolidated balance sheets as of January 1, 2016 (see "Accounting Standards Updates Adopted" below). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which consist of normal recurring adjustments, necessary for a fair presentation thereof. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Transition Report on Form 10-K filed on February 26, 2016.
Fair Value Measurements	Fair Value Measurements The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3). The Company’s cash equivalents were primarily comprised of investments in several large institutional money market funds and bank deposits, with original maturity of three months or less. There are immaterial restrictions on the withdrawal of the Company’s cash and cash equivalents of foreign currency due to exchange control regulations. The Company's cash equivalents are recorded at historical cost, which equals fair value based on quoted market prices (Level 1 input). The Company's financial instruments measured at fair value on a recurring basis using Level 2 inputs consisted of the Company's interest rate swaps on its $450 million fixed rate 4.45% notes maturing in December 2020 and its interest rate swaps on $1.2 billion of the aggregate principal outstanding on the Company's variable rate senior secured notes (see "Note 8–Derivative Instruments"). At September 30, 2016, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis using Level 3 inputs. The Company’s non-financial instruments measured at fair value on a non-recurring basis include goodwill, indefinite-lived intangible assets and long-lived tangible assets. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions. As such, the Company generally classifies non-financial instruments as either Level 2 or Level 3 fair value measurements. On August 16, 2016, the Company had non-financial instruments measured at fair value on a non-recurring basis in connection with the acquisition of Lockheed Martin's IS&GS Business. Refer to "Note 2–Acquisitions" for the preliminary fair values of the assets acquired and liabilities assumed. At September 30, 2016, the Company did not have any non-financial instruments measured at fair value on a non-recurring basis. The carrying amounts of the Company’s financial instruments, other than derivatives, which include cash equivalents, accounts receivable, accounts payable and accrued expenses, are reasonable estimates of their related fair values. The carrying value of the Company's notes receivable as of September 30, 2016, of $92 million approximates fair value as the stated interest rates within the agreements are consistent with the current market rates used in notes with similar terms in the market (Level 2 inputs). The fair value of long-term debt (see "Note 9–Debt") is determined based on current interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements (Level 2 inputs).
Changes in Estimates on Contracts	Changes in Estimates on Contracts Changes in estimates related to certain types of contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can routinely occur over the contract performance period for a variety of reasons, including changes in contract scope, contract cost estimates and estimated incentive or award fees.
Accounting Standards Updates Adopted	Accounting Standards Updates Adopted In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . This update eliminates separate presentation for debt issuance costs as an asset and requires issuance costs to be reported in the balance sheet as a direct reduction to the face amount of the associated debt. The Company adopted this ASU on a retrospective basis during the Company's first quarter ended April 1, 2016. This resulted in a reclassification of deferred financing costs related to the Company's notes of $7 million from "Other assets" to "Notes payable and long-term debt, net of current portion" in the Company's condensed consolidated balance sheets as of January 1, 2016. In March 2016, the FASB issued ASU 2016-09 Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. Among other requirements in the new standard, the ASU requires that an entity, (i) recognize excess tax benefits and deficiencies related to employee share-based payment transactions as an income tax expense or benefit in the income statement rather than in equity; (ii) present the excess tax benefits as an operating activity on the statement of cash flows versus current guidance to present them as financing activities; and, (iii) elect to either recognize stock forfeitures as they occur or estimate them. During the quarter ended July 1, 2016, the Company elected to early adopt the provisions of the ASU prospectively from January 2, 2016, including continuation of estimating forfeitures instead of recording them as they occur. Consequently, the Company recognized a $3 million and $7 million discrete tax benefit for the quarter and six months ended July 1, 2016, respectively, and operating cash flows for the six months ended July 1, 2016, increased $7 million with a corresponding decrease to financing cash flows.
Accounting Standards Updates Issued But Not Yet Adopted	Accounting Standards Updates Issued But Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards (e.g., insurance contracts). This ASU will supersede all revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance throughout the industry topics of the codification. The guidance's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue principles, an entity will identify the contract(s) with a customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when the performance obligation is satisfied (either over time or at a point in time). The ASU further states that an entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which approved a one-year deferral of the effective date of the ASU from the original effective date of annual reporting periods beginning after December 15, 2016, to annual reporting periods (including interim reporting periods) beginning after December 15, 2017, with an option for early adoption of the standard on the original effective date. Additionally, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , that amended the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 805): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting , which rescinded from the FASB Accounting Standards Codification ("ASC") certain SEC paragraphs as a result of two SEC Staff Announcements. The FASB also issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which clarified guidance on assessment of collectibility, presentation of sale taxes, measurement of noncash consideration and certain transition matters. The Company is evaluating the impact that the provisions of ASU 2014-09 and related subsequent updates will have on the Company's condensed consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This ASU will supersede the current lease guidance under ASC 840 and makes several changes, such as requiring an entity to recognize a right-of-use asset and corresponding lease obligation in the balance sheet, classified as financing or operating, as appropriate. The standard requires adoption under the modified retrospective approach and is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-02 and its impact on the Company's condensed consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU eliminates the requirement that a credit loss on a financial instrument be “probable” prior to recognition. Instead, a valuation allowance will be recorded to reflect an entity’s current estimate of all expected credit losses, based on both historical and forecasted information related to an instrument. The amendments in the update will be effective for public Companies for fiscal years beginning after December 15, 2019, including interim periods within those years and should be adopted using a modified-retrospective approach, which applies a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date and loans and debt securities acquired with deteriorated credit quality. The guidance may be early-adopted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the provisions of ASU 2016-13 and its impact on the Company's condensed consolidated financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. This ASU clarifies guidance for cash flow classification to reduce current and potential future diversity in practice. The amendments should be applied using a retrospective transition method to each period presented. For items that are impractical to apply the amendments retrospectively, they shall be applied prospectively as of the earliest date practicable. The amendments in this Update are effective for public entities beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-15 and its impact on the Company's condensed consolidated cash flows.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Changes In Estimates On Contracts	Changes in estimates on contracts for the periods presented were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions, except per share amounts) Net increase in income from continuing operations before taxes $ 4 $ 10 $ 17 $ 20 Impact on diluted EPS from continuing operations $ 0.02 $ 0.08 $ 0.12 $ 0.16
Schedule of Supplementary Cash Flow Information	Supplementary cash flow information, including non-cash investing and financing activities, for the periods presented was as follows: Nine Months Ended September 30, October 2, (in millions) Dividends declared and other $ 20 $ 25 Stock issued in lieu of cash dividends $ 10 $ 2 Capital lease obligation $ — $ 6 Promissory note received for disposition of business $ — $ 73 Stock issued for acquisition of the IS&GS Business $ 2,938 $ — Cash paid for interest $ 53 $ 33 Cash paid for income taxes, net of refunds (including discontinued operations) $ 45 $ 50

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Integration Costs	The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business: Three Months Ended Nine Months Ended September 30, September 30, (in millions) Acquisition costs $ 27 $ 40 Integration costs 17 28 Total acquisition and integration costs $ 44 $ 68 The preliminary purchase consideration for the acquisition of the IS&GS Business was as follows (in millions): Value of common stock issued to Lockheed Martin stockholders (1) $ 2,929 Equity consideration for replacement awards (2) 9 Preliminary working capital adjustments 22 Preliminary purchase price $ 2,960 (1) Represents approximately 77 million new shares of Leidos common stock issued to those Lockheed Martin stockholders who elected to participate in the exchange offer, based on the Company's August 16, 2016, closing share price of $51.69 , less the Leidos special cash dividend amount of $13.64 , which the Lockheed Martin stockholders were not entitled to receive. (2) The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger (see "Note 12–Stock Based Compensation").
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The preliminary fair values of the assets acquired and liabilities assumed at the date of the Transactions were as follows (in millions): Cash $ 25 Receivables, net 974 Inventory, prepaid expenses and other current assets 58 Property, plant and equipment 96 Deferred income taxes 35 Intangible assets 1,650 Other assets 24 Accounts payable and accrued liabilities (699 ) Accrued payroll and employee benefits (189 ) Deferred tax liabilities (847 ) Long-term debt (1,803 ) Other long-term liabilities (18 ) Total identifiable net liabilities assumed (694 ) Non-controlling interest (13 ) Goodwill 3,667 Preliminary purchase price $ 2,960
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	he following table summarizes the preliminary fair value of intangible assets acquired at the date of acquisition and the related weighted average useful lives: Weighted average amortization period Fair value (in years) (in millions) Programs and contract intangibles 10.0 $ 1,450 Backlog 1.4 $ 200
Business Acquisition, Pro Forma Information	The pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had been completed on January 3, 2015, nor is it intended to be an indication of future operating results. Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions, except per share data) Revenues $ 2,607 $ 2,703 $ 7,868 $ 7,994 Income from continuing operations 132 64 291 177 Income from continuing operations attributable to Leidos Holdings, Inc. 131 63 286 173 Earnings per share: Basic $ 0.87 $ 0.42 $ 1.91 $ 1.15 Diluted 0.86 0.42 1.89 1.15

Restructuring Expenses (Tables)

Restructuring Expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The restructuring expenses related to the separation of New SAIC and the Company's real estate optimization initiatives were as follows: Nine Months Ended September 30, October 2, (in millions) Lease termination expenses $ 1 $ 2 The restructuring expenses related to this program were as follows: Three and Nine Months Ended September 30, (in millions) Severance costs $ 4 Lease termination expenses 1 Restructuring expenses related to the IS&GS Business in operating income $ 5
Schedule of Restructuring Reserve by Type of Cost	The restructuring liability related to the Transactions at September 30, 2016, was: Severance costs Lease termination expenses Total (in millions) Balance at January 1, 2016 $ — $ — $ — Charges 4 1 5 Cash payments (3 ) — (3 ) Balance at September 30, 2016 $ 1 $ 1 $ 2 The restructuring liability, related to the SAIC separation, at September 30, 2016 was: Lease termination expenses (in millions) Balance at January 1, 2016 $ 7 Charges 1 Cash payments (4 ) Balance at September 30, 2016 $ 4

Divestitures (Tables)

Divestitures (Tables)	9 Months Ended
	Sep. 30, 2016
SAIC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Schedule of Income Statement, Balance Sheet for Discontinued Operation	The operating results of the Company's discontinued operations for the periods presented were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Revenues $ 3 $ 4 $ 10 $ 18 Costs and expenses: Cost of revenues 3 4 10 16 Selling, general and administrative expenses — — — 4 Operating loss $ — $ — $ — $ (2 ) Non-operating income $ — $ — $ — $ 2

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill by Segment	The balance and changes in the carrying amount of goodwill by segment were as follows: NSS HIS IS&GS Total (in millions) Goodwill at January 1, 2016 $ 788 $ 419 $ — $ 1,207 Acquisition of the IS&GS Business — — 3,667 3,667 Goodwill at September 30, 2016 $ 788 $ 419 $ 3,667 $ 4,874
Schedule of Intangible Assets Including Estimates of Assets Acquired	Intangible assets, including the preliminary fair values of those acquired through the purchase of the IS&GS Business, consisted of the following: September 30, 2016 January 1, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Customer relationships $ 6 $ (5 ) $ 1 $ 20 $ (16 ) $ 4 Software and technology 61 (47 ) 14 61 (44 ) 17 Programs and contract intangibles 1,450 (8 ) 1,442 — — — Backlog 200 (18 ) 182 — — — Total finite-lived intangible assets 1,717 (78 ) 1,639 81 (60 ) 21 Indefinite-lived intangible assets: Trade names 4 — 4 4 — 4 Total indefinite-lived intangible assets 4 — 4 4 — 4 Total intangible assets $ 1,721 $ (78 ) $ 1,643 $ 85 $ (60 ) $ 25
Schedule of Amortization Expense for Finite-Lived Intangible Assets	The estimated annual amortization expense related to finite-lived intangible assets as of September 30, 2016, was as follows: Fiscal Year Ending (in millions) 2016 (remainder of year) $ 54 2017 277 2018 212 2019 187 2020 164 2021 and thereafter 745 $ 1,639

Receivables (Tables)

Receivables (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Schedule of Accounts Receivable	The components of receivables, net, consisted of the following: September 30, January 1, (in millions) Billed and billable receivables $ 756 $ 715 Unbilled receivables: Amounts billable 913 187 Contract retentions 18 29 Allowance for doubtful accounts (10 ) (10 ) $ 1,677 $ 921

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment, net consisted of the following: September 30, January 1, (in millions) Computers and other equipment $ 266 $ 161 Leasehold improvements 161 149 Buildings and improvements 101 57 Office furniture and fixtures 35 30 Land 17 15 Construction in progress 14 2 594 414 Less: accumulated depreciation and amortization (363 ) (272 ) $ 231 $ 142

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The effect of the Company's cash flow hedge on other comprehensive loss and earnings for the periods presented was as follows: Three and Nine Months Ended September 30, (in millions) Effective portion recognized in other comprehensive loss $ (7 ) Effective portion reclassified from accumulated other comprehensive loss to earnings 1
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]	The fair value of the interest rate swaps was as follows: Asset Derivatives Balance sheet line item September 30, January 1, (in millions) Fair value interest rate swaps Other assets $ 17 $ 8 Liability Derivatives Balance sheet line item September 30, January 1, (in millions) Cash flow interest rate swaps Other long-term liabilities $ 6 $ —

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Notes Payable and Long-Term Debt	The Company's notes payable and long-term debt consisted of the following: Stated interest rate Effective interest rate September 30, January 1, (dollars in millions) Senior secured notes: $450 million notes, due December 2020 4.45% 4.53% $ 465 $ 455 $300 million notes, due December 2040 5.95% 6.03% 216 216 Senior secured term loans: $400 million Term Loan A, due August 2019 2.77% 3.58% 294 — $690 million Term Loan A, due August 2021 2.77% 3.33% 675 — $310 million Term Loan A, due August 2021 2.77% 3.31% 304 — $1,131 million Term Loan B, due August 2023 3.27% 3.62% 1,109 — Senior unsecured notes: $250 million notes, due July 2032 7.13% 7.43% 246 246 $300 million notes, due July 2033 5.50% 5.88% 158 158 Capital leases due on various dates through fiscal 2020 0%-5.94% Various 3 6 Total notes payable and long-term debt 3,470 1,081 Less: current portion 42 2 Total notes payable and long-term debt, net of current portion $ 3,428 $ 1,079 Fair value of notes payable and long-term debt $ 3,536 $ 1,060

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss were as follows: September 30, January 1, (in millions) Foreign currency translation adjustments, net of taxes of ($3) million as of September 30, 2016 $ 6 $ — Unrecognized net loss on derivative instruments associated with outstanding debt, net of taxes of $5 million and $3 million as of September 30, 2016, and January 1, 2016, respectively (8 ) (4 ) Unrecognized net loss on defined benefit plan, net of taxes of $2 million and $3 million as of September 30, 2016, and January 1, 2016, respectively (4 ) (4 ) Total accumulated other comprehensive loss, net of taxes of $4 million and $6 million as of September 30, 2016, and January 1, 2016, respectively $ (6 ) $ (8 )

Earnings Per Share (EPS) (Table

Earnings Per Share (EPS) (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Reconciliation of Weighted Average Number of Shares Outstanding	The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Basic weighted average number of shares outstanding 112 72 85 73 Dilutive common share equivalents—stock options and other stock awards 2 1 2 1 Diluted weighted average number of shares outstanding 114 73 87 74

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation and Related Tax Benefits Recognized	Stock-based compensation and related tax benefits were as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Total stock-based compensation expense $ 9 $ 9 $ 25 $ 23 Tax benefits recognized from stock-based compensation 3 4 10 9
Schedule of Weighted Average Grant-Date Fair Value And Assumptions Used	The assumptions used to determine fair value of stock options granted for the nine months ended September 30, 2016, and October 2, 2015 were as follows: Nine Months Ended September 30, 2016 September 30, 2016 October 2, Expected term (in years) 4.7 4.8 4.7 Expected volatility 37.9 % 29.9 % 24.5 % Risk-free interest rate 1.2 % 1.3 % 1.4 % Dividend yield 2.7 % 2.5 % 2.9 %

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information by Segment	The segment information for the periods presented was as follows: Three Months Ended Nine Months Ended September 30, October 2, September 30, October 2, (in millions) Revenues: National Security Solutions $ 921 $ 878 $ 2,734 $ 2,619 Health and Infrastructure Sector 328 418 1,115 1,182 Information Systems & Global Solutions 620 — 620 — Corporate and Other (1 ) 6 (1 ) 4 Total revenues $ 1,868 $ 1,302 $ 4,468 $ 3,805 Operating income (loss): National Security Solutions $ 91 $ 78 $ 224 $ 214 Operating income margin 9.9 % 8.9 % 8.2 % 8.2 % Health and Infrastructure Sector 41 13 116 (1 ) Operating income (loss) margin 12.5 % 3.1 % 10.4 % (0.1 )% Information Systems & Global Solutions 26 — 26 — Operating income margin 4.2 % — 4.2 % — Corporate and Other (57 ) 3 (101 ) (17 ) Total operating income $ 101 $ 94 $ 265 $ 196 Operating income margin 5.4 % 7.2 % 5.9 % 5.2 %

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Additional Information) (Detail) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2016	Jul. 01, 2016	Oct. 02, 2015	Jul. 01, 2016	Sep. 30, 2016	Oct. 02, 2015	Aug. 31, 2016	Jan. 01, 2016	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount	$ 3,000,000		$ 4,000,000		$ 10,000,000	$ 9,000,000
Cash flows provided by operating activities of continuing operations					284,000,000	378,000,000
Cash flows used in financing activities of continuing operations					$ 524,000,000	$ 229,000,000
Leidos, Inc.
Significant Accounting Policies [Line Items]
Ownership interest (in percentage)	100.00%				100.00%
Designated as Hedging Instrument | Asset Derivatives
Significant Accounting Policies [Line Items]
Hedged instrument, face amount	$ 1,200,000,000				$ 1,200,000,000		$ 1,200,000,000
Stated interest rate (in percentage)							1.08%
Notes Which Mature In December 2020 | Designated as Hedging Instrument | Asset Derivatives
Significant Accounting Policies [Line Items]
Stated interest rate (in percentage)	4.45%				4.45%				4.45%
Other long-term liabilities | Notes Which Mature In December 2020 | Designated as Hedging Instrument | Asset Derivatives
Significant Accounting Policies [Line Items]
Hedged instrument, face amount									$ 450,000,000
Stated interest rate (in percentage)									4.45%
Carrying value
Significant Accounting Policies [Line Items]
Fair value of note receivable	$ 92,000,000				$ 92,000,000
Accounting Standards Update 2015-03 | Other long-term liabilities
Significant Accounting Policies [Line Items]
Debt issuance costs								$ 7,000,000
Accounting Standards Update 2016-09, Excess Tax Benefit Component | New Accounting Pronouncement, Early Adoption, Effect
Significant Accounting Policies [Line Items]
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount		$ 3,000,000		$ 7,000,000
Cash flows provided by operating activities of continuing operations				$ 7,000,000
Cash flows used in financing activities of continuing operations					7,000,000
Senior Notes | Notes Which Mature In December 2020
Significant Accounting Policies [Line Items]
Long-term debt	$ 450,000,000				$ 450,000,000

Summary of Significant Accoun40

Summary of Significant Accounting Policies (Changes in estimates on contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Accounting Policies [Abstract]
Net increase in income from continuing operations before taxes	$ 4	$ 10	$ 17	$ 20
Increase in income from continuing operations per diluted share (usd per share)	$ 0.02	$ 0.08	$ 0.12	$ 0.16

Summary of Significant Accoun41

Summary of Significant Accounting Policies (Schedule of Supplementary Cash Flow Information) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015
Accounting Policies [Abstract]
Dividends declared and other	$ 20	$ 25
Stock issued in lieu of cash dividends	10	2
Capital lease obligation	0	6
Promissory note received for disposition of business	0	73
Stock issued for acquisition of the IS&GS Business	2,938	0
Cash paid for interest	53	33
Cash paid for income taxes, net of refunds (including discontinued operations)	$ 45	$ 50

Acquisitions (Details)

Acquisitions (Details) $ / shares in Units, shares in Millions	Aug. 16, 2016USD ($)director$ / sharesshares	Aug. 15, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)
Business Acquisition [Line Items]
Proceeds from debt issuance				$ 690,000,000	$ 0
Special dividend declared (usd per share) | $ / shares		$ 13.64
Special dividend declared				(1,022,000,000)
Stock issued in lieu of cash dividends				10,000,000	2,000,000
Payments of Dividends				993,000,000	$ 0
Number of directors | director	12
Share price (in usd per share) | $ / shares	$ 51.69
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Number of shares Lockheed Martin shareholders will receive from Leidos (in shares) | shares	77
Number of shares Lockheed Martin shareholders will receive from Leidos, as a percentage of Leidos common stock (in percentage)	50.50%
Percentage of common stock retained by the Leidos ( in percentage)	49.50%
Indebtedness assumed by Leidos	$ 1,800,000,000
Special dividend declared (usd per share) | $ / shares		$ 0.1364
Special dividend declared		$ (993,000,000)
Number of directors | director	3
Goodwill acquired, expected tax deductible amount	$ 348,000,000
Intangible acquired, fair value	1,700,000,000
Acquisition related costs			$ 27,000,000	$ 40,000,000
Information Systems & Global Solutions Business of Lockheed Martin | Splitco
Business Acquisition [Line Items]
Proceeds from debt issuance	1,800,000,000
Payments to parent, special payment	1,800,000,000
Line of Credit | Revolving Credit Facility
Business Acquisition [Line Items]
Maximum borrowing capacity	750,000,000
Line of Credit | Revolving Credit Facility | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Maximum borrowing capacity	$ 750,000,000
Programs and contract intangibles | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Acquired intangible assets, weighted average useful life (in years)	10 years
Intangible acquired, fair value	$ 1,450,000,000
Backlog | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Acquired intangible assets, weighted average useful life (in years)	1 year 4 months 24 days
Intangible acquired, fair value	$ 200,000,000
Term Loan A $690 million due August 2021 | Secured Debt | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Indebtedness assumed by Leidos	$ 690,000,000

Acquisitions (Purchase price) (

Acquisitions (Purchase price) (Details) - USD ($) $ in Millions	Aug. 16, 2016	Sep. 30, 2016	Jan. 01, 2016
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill		$ 4,874	$ 1,207
Information Systems & Global Solutions Business of Lockheed Martin
Business Combination, Consideration Transferred [Abstract]
Value of common stock issued to Lockheed Martin stockholders(1)	$ 2,929
Equity consideration for replacement awards	9	$ 9
Preliminary working capital adjustments	22
Preliminary purchase price	2,960
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash	25
Receivables, net	974
Inventory, prepaid expenses and other current assets	58
Property, plant and equipment	96
Deferred income taxes	35
Intangible assets	1,650
Other assets	24
Accounts payable and accrued liabilities	(699)
Accrued payroll and employee benefits	(189)
Deferred tax liabilities	(847)
Long-term debt	(1,803)
Other long-term liabilities	(18)
Total identifiable net liabilities assumed	(694)
Non-controlling interest	(13)
Goodwill	3,667
Preliminary purchase price	$ 2,960

Acquisitions (Integration Costs

Acquisitions (Integration Costs) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Business Acquisition [Line Items]
Total acquisition and integration costs	$ 44	$ 0	$ 68	$ 0
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Acquisition costs	27		40
Integration costs	17		28
Total acquisition and integration costs	$ 44		$ 68

Acquisitions (Pro Forma Informa

Acquisitions (Pro Forma Information) (Details) - Information Systems & Global Solutions Business of Lockheed Martin - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Business Acquisition [Line Items]
Revenues	$ 2,607	$ 2,703	$ 7,868	$ 7,994
Income from continuing operations	$ 132	$ 64	$ 291	$ 177
Basic (usd per share)	$ 0.87	$ 0.42	$ 1.91	$ 1.15
Diluted (usd per share)	$ 0.86	$ 0.42	$ 1.89	$ 1.15
Leidos Holdings, Inc.
Business Acquisition [Line Items]
Income from continuing operations	$ 131	$ 63	$ 286	$ 173

Restructuring Expenses (Details

Restructuring Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Restructuring Reserve [Roll Forward]
Restructuring expenses	$ 5	$ 0	$ 6	$ 2
Expected cost in the next fiscal year	143		$ 143
Period to settle restructuring liability, minimum (in years)			1 year
Separation of New SAIC and Real Estate Optimization Initiatives | Lease termination expenses
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			$ 7
Restructuring expenses			1	$ 2
Cash payments			(4)
Restructuring reserve, closing balance	4		4
Restructuring Due To IS&GS Acquisition
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			0
Restructuring expenses	5		5
Cash payments			(3)
Restructuring reserve, closing balance	2		2
Restructuring Due To IS&GS Acquisition | Severance costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			0
Restructuring expenses	4		4
Cash payments			(3)
Restructuring reserve, closing balance	1		1
Restructuring Due To IS&GS Acquisition | Lease termination expenses
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			0
Restructuring expenses	1		1
Cash payments			0
Restructuring reserve, closing balance	$ 1		$ 1

Divestitures (Spin-off) (Detail

Divestitures (Spin-off) (Details) - Discontinued Operations, Disposed of by Means Other than Sale, Spinof - SAIC - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Revenues	$ 3	$ 4	$ 10	$ 18
Cost of revenues	3	4	10	16
Selling, general and administrative expenses	0	0	0	4
Operating loss	0	0	0	(2)
Non-operating income	$ 0	$ 0	$ 0	$ 2

Goodwill and Intangible Asset48

Goodwill and Intangible Assets (Schedule of Changes in Goodwill by Segment) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Beginning balance, Goodwill	$ 1,207
Acquisition of the IS&GS Business	3,667
Ending balance, Goodwill	4,874
IS&GS
Goodwill [Roll Forward]
Beginning balance, Goodwill	0
Acquisition of the IS&GS Business	3,667
Ending balance, Goodwill	3,667
NSS
Goodwill [Roll Forward]
Beginning balance, Goodwill	788
Acquisition of the IS&GS Business	0
Ending balance, Goodwill	788
HIS
Goodwill [Roll Forward]
Beginning balance, Goodwill	419
Acquisition of the IS&GS Business	0
Ending balance, Goodwill	$ 419

Divestitures (Narrative) (Detai

Divestitures (Narrative) (Details) - USD ($)	Apr. 15, 2016	Jul. 24, 2015	Jan. 30, 2015	Jul. 01, 2016	Sep. 30, 2016	Oct. 02, 2015	Jan. 01, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Liability in connection with issuance of a performance guarantee on a contract sold					$ 1,458,000,000		$ 761,000,000
Note receivable					0	$ 73,000,000
Proceeds from collections on promissory note					4,000,000	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Plainfield
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate consideration		$ 102,000,000
Cash consideration received		29,000,000
Note receivable		$ 73,000,000
Proceeds from collections on promissory note					$ 6,000,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Plainfield
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of ownership (in percentage)								100.00%
Health and Infrastructure Sector | Disposal Group, Disposed of by Sale, Not Discontinued Operations | One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestitures of the business	$ 23,000,000
Receivable, net	73,000,000
Other assets	3,000,000
Accounts payable and accrued liabilities	63,000,000
Liability in connection with issuance of a performance guarantee on a contract sold	6,000,000
Maximum earn-out payment	2,000,000
Health and Infrastructure Sector | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Plainfield
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of assets			$ 40,000,000	$ 29,000,000
Other Operating Income (Expense) | Health and Infrastructure Sector | Disposal Group, Disposed of by Sale, Not Discontinued Operations | One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business	3,000,000
Selling expense	$ 1,000,000

Goodwill and Intangible Asset50

Goodwill and Intangible Assets (Aditional Information)(Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015	Jan. 01, 2016
Goodwill and Intangible Assets [Line Items]
Gross carrying value	$ 1,717		$ 1,717		$ 81
Amortization expense related to amortizable intangible assets	$ 27	$ 2	$ 30	$ 7
Vitalize and maxIT | HES
Goodwill and Intangible Assets [Line Items]
Intangible asset impairment		4
Gross carrying value		$ 38		$ 38

Goodwill and Intangible Asset51

Goodwill and Intangible Assets (Schedule of Intangible Assets Including Estimates of Assets Acquired) (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Jan. 01, 2016
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 1,717	$ 81
Accumulated amortization	(78)	(60)
Net carrying value	1,639	21
Indefinite-lived intangible assets	4	4
Total intangible assets, Gross carrying value	1,721	85
Total intangible assets, Net carrying value	1,643	25
Trade Names
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4	4
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	6	20
Accumulated amortization	(5)	(16)
Net carrying value	1	4
Software and Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	61	61
Accumulated amortization	(47)	(44)
Net carrying value	14	17
Programs and contract intangibles
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	1,450	0
Accumulated amortization	(8)	0
Net carrying value	1,442	0
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	200	0
Accumulated amortization	(18)	0
Net carrying value	$ 182	$ 0

Goodwill and Intangible Asset52

Goodwill and Intangible Assets (Schedule of Amortization Expense for Finite-Lived Intangible Assets) (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Jan. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remainder of year)	$ 54
2,017	277
2,018	212
2,019	187
2,020	164
2021 and thereafter	745
Net carrying value	$ 1,639	$ 21

Receivables (Details)

Receivables (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015	Jan. 01, 2016
Receivables [Abstract]
Billed and billable receivables	$ 756		$ 756		$ 715
Amounts billable	913		913		187
Contract retentions	18		18		29
Allowance for doubtful accounts	(10)		(10)		(10)
Accounts receivable, net	1,677		1,677		$ 921
Bad debt expense	$ 1	$ 13	$ 1	$ 10

Property, Plant and Equipment54

Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015	Jan. 01, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 594		$ 594		$ 414
Less: accumulated depreciation and amortization	(363)		(363)		(272)
Property, plant and equipment, net	231		231		142
Depreciation	10	$ 9	24	$ 28
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	266		266		161
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	161		161		149
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	101		101		57
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35		35		30
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	17		17		15
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 14		$ 14		$ 2

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2017	Aug. 31, 2016	Jan. 01, 2016	Sep. 30, 2014
Derivative [Line Items]
Effective portion recognized in other comprehensive loss	$ (7)	$ (7)
Effective portion reclassified from accumulated other comprehensive loss to earnings	1	1
Asset Derivatives | Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount	1,200	1,200		$ 1,200
Stated interest rate (in percentage)				1.08%
Asset Derivatives | Designated as Hedging Instrument | Notes Which Mature In December 2020
Derivative [Line Items]
Fair value adjustment	$ (5)	$ 9
Stated interest rate (in percentage)	4.45%	4.45%				4.45%
Forecast
Derivative [Line Items]
Effective portion recognized in other comprehensive loss			$ (5)
Fair Value Hedging | Asset Derivatives | Other assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative asset	$ 17	$ 17			$ 8
Cash Flow Hedging | Asset Derivatives | Other long-term liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Derivative liability	$ 6	$ 6			$ 0

Debt (Detail)

Debt (Detail) - USD ($)	Sep. 30, 2016	Jan. 01, 2016
Debt Instrument [Line Items]
Capital leases due on various dates through fiscal 2020	$ 3,000,000	$ 6,000,000
Total notes payable and long-term debt	3,470,000,000	1,081,000,000
Less: current portion	42,000,000	2,000,000
Total notes payable and long-term debt, net of current portion	3,428,000,000	1,079,000,000
Fair value of notes payable and long-term debt	3,536,000,000	1,060,000,000
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior secured notes:	$ 465,000,000	455,000,000
Stated interest rate (in percentage)	4.45%
Effective interest rate	4.53%
Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior secured notes:	$ 216,000,000	216,000,000
Stated interest rate (in percentage)	5.95%
Effective interest rate	6.03%
Term Loan A $400 million due August 2019
Debt Instrument [Line Items]
Senior secured term loans:	$ 294,000,000	0
Stated interest rate (in percentage)	2.77%
Effective interest rate	3.58%
Term Loan A $690 million due August 2021
Debt Instrument [Line Items]
Senior secured term loans:	$ 675,000,000	0
Stated interest rate (in percentage)	2.77%
Effective interest rate	3.33%
Term Loan A $310 million due August 2021
Debt Instrument [Line Items]
Senior secured term loans:	$ 304,000,000	0
Stated interest rate (in percentage)	2.77%
Effective interest rate	3.31%
Term Loan B $1,131 million due August 2023
Debt Instrument [Line Items]
Senior secured term loans:	$ 1,109,000,000	0
Stated interest rate (in percentage)	3.27%
Effective interest rate	3.62%
Notes Which Mature In July 2032
Debt Instrument [Line Items]
Senior unsecured notes:	$ 246,000,000	246,000,000
Stated interest rate (in percentage)	7.13%
Effective interest rate	7.43%
Notes Which Mature In July 2033
Debt Instrument [Line Items]
Senior unsecured notes:	$ 158,000,000	$ 158,000,000
Stated interest rate (in percentage)	5.50%
Effective interest rate	5.88%
Minimum | Capital leases and other notes payable due on various dates through fiscal 2020
Debt Instrument [Line Items]
Stated interest rate (in percentage)	0.00%
Maximum | Capital leases and other notes payable due on various dates through fiscal 2020
Debt Instrument [Line Items]
Stated interest rate (in percentage)	5.94%
Senior Notes | Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior unsecured notes, face amount	$ 450,000,000
Senior Notes | Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior unsecured notes, face amount	300,000,000
Secured Debt | Term Loan A $400 million due August 2019
Debt Instrument [Line Items]
Senior unsecured notes, face amount	400,000,000
Secured Debt | Term Loan A $690 million due August 2021
Debt Instrument [Line Items]
Senior unsecured notes, face amount	690,000,000
Secured Debt | Term Loan A $310 million due August 2021
Debt Instrument [Line Items]
Senior unsecured notes, face amount	310,000,000
Secured Debt | Term Loan B $1,131 million due August 2023
Debt Instrument [Line Items]
Senior unsecured notes, face amount	1,131,000,000
Unsecured Debt | Notes Which Mature In July 2032
Debt Instrument [Line Items]
Senior unsecured notes, face amount	250,000,000
Unsecured Debt | Notes Which Mature In July 2033
Debt Instrument [Line Items]
Senior unsecured notes, face amount	$ 300,000,000

Debt (Senior Secured Notes and

Debt (Senior Secured Notes and Senoir Secured Term Loans) (Detail)	Sep. 30, 2016USD ($)	Aug. 16, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Oct. 02, 2015USD ($)	Jan. 01, 2016USD ($)
Debt Instrument [Line Items]
Amortization of debt issuance costs			$ 3,000,000	$ 3,000,000	$ 1,000,000
Incremental available amount of funds every quarter, per credit agreement		$ 35,000,000
Annual fixed amount required per credit agreement		$ 250,000,000
Required prepayment amount equal to percentage of excess cash flow calculated based on secured leverage ratio greater than 2.75		50.00%
Secured Leverage Ratio, for debt prepayment to be 50% of excess cash flow		2.75
Secured Leverage Ratio, for debt prepayment to be between 0-25% of excess cash flow		2
Debt Instrument, Required Prepayment Amount Secured Leverage Ratio Less Than Two Point Zero		$ 0
Required prepayment amount equal to percentage of excess cash flow calculated based on secured leverage ratio between 2.00 and 2.75 (percentage)		0.25
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior secured notes:	$ 465,000,000		465,000,000	465,000,000		$ 455,000,000
Secured Debt
Debt Instrument [Line Items]
Debt issuance costs	53,000,000		53,000,000	53,000,000
Secured Debt | Term Loan A $400 million due August 2019
Debt Instrument [Line Items]
Note payable, face amount	400,000,000		400,000,000	400,000,000
Retirement of debt	100,000,000
Write off of debt issuance cost			2,000,000
Secured Debt | Term Loan A $690 million due August 2021
Debt Instrument [Line Items]
Note payable, face amount	690,000,000		690,000,000	690,000,000
Senior Notes | Notes Which Mature In December 2020
Debt Instrument [Line Items]
Note payable, face amount	450,000,000		450,000,000	450,000,000
Long-term debt	450,000,000		$ 450,000,000	450,000,000
London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan B
Debt Instrument [Line Items]
Variable rate (in percentage)			2.75%
London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)			2.25%
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)		1.75%
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)		2.25%
Information Systems & Global Solutions Business of Lockheed Martin
Debt Instrument [Line Items]
Long-term debt		$ 1,800,000,000
Information Systems & Global Solutions Business of Lockheed Martin | Secured Debt | Term Loan A $690 million due August 2021
Debt Instrument [Line Items]
Note payable, face amount		$ 690,000,000
Designated as Hedging Instrument | Asset Derivatives
Debt Instrument [Line Items]
Derivative Asset, Fair Value, Gross Asset						$ 8,000,000
Fair Value Hedging | Designated as Hedging Instrument | Asset Derivatives
Debt Instrument [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 17,000,000		$ 17,000,000	$ 17,000,000

Debt (Revolving Credit Facility

Debt (Revolving Credit Facility) (Detail)	Sep. 30, 2016USD ($)	Aug. 16, 2016USD ($)	Jan. 01, 2016USD ($)
Debt Instrument [Line Items]
Amount outstanding	$ 0
Ratio of Consolidated Funded Debt to Earnings Before Interest Taxes Depreciation And Amortization Numerator Maximum, Until February Sixteen Twenty Eighteen	4.75
Ratio of Consolidated Funded Debt to Earnings Before Interest Taxes Depreciation And Amortization Numerator Maximum, From February Sixteen Twenty Eighteen to February Sixteen Twenty Nineteen	4.25
Ratio of consolidated funded debt to EBITDA, numerator, maximum	3.75
Old Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity	$ 500,000,000
Amount outstanding			$ 0
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity		$ 750,000,000
Debt issuance costs		$ 15,000,000

Accumulated Other Comprehensi59

Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Jan. 01, 2016
Accumulated Other Comprehensive Loss [Abstract]
Foreign currency translation adjustments, net of taxes of ($3) million as of September 30, 2016	$ 6	$ 0
Unrecognized net loss on derivative instruments associated with outstanding debt, net of taxes of $5 million and $3 million as of September 30, 2016, and January 1, 2016, respectively	(8)	(4)
Unrecognized net loss on defined benefit plan, net of taxes of $2 million and $3 million as of September 30, 2016, and January 1, 2016, respectively	(4)	(4)
Total accumulated other comprehensive loss, net of taxes of $4 million and $6 million as of September 30, 2016, and January 1, 2016, respectively	$ (6)	$ (8)

Accumulated Other Comprehensi60

Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Intext) (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Jan. 01, 2016
Equity [Abstract]
Foreign currency translation adjustments, net of taxes of $(3) million as of July 1, 2016, tax	$ (3)	$ 0
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, tax	5	3
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, tax	2	3
Total accumulated other comprehensive loss, net of taxes of $2 million and $6 million as of July 1, 2016, and January 1, 2016, respectively, tax	$ 4	$ 6

Earnings Per Share (EPS) (Recon

Earnings Per Share (EPS) (Reconciliation of Weighted Average Number of Shares Outstanding) (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding (shares)	112	72	85	73
Dilutive common share equivalents-stock options and other stock awards (in shares)	2	1	2	1
Diluted weighted average number of shares outstanding (shares)	114	73	87	74

Earnings Per Share (EPS) (Sched

Earnings Per Share (EPS) (Schedule of Stock-Based Awards Excluded from Weighted Average Shares Outstanding) (Detail) - shares shares in Millions	3 Months Ended	9 Months Ended
	Oct. 02, 2015	Oct. 02, 2015
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock based awards	2	2

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Millions	Aug. 16, 2016USD ($)shares	Aug. 15, 2016USD ($)	Aug. 31, 2016shares	Sep. 30, 2016USD ($)shares	Oct. 02, 2015USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in strike price			0.74
Increase in number of shares issuable upon exercise of each option (shares) | shares			1.35
Special dividend declared				$ 1,022
Stock issued in lieu of cash dividends				10	$ 2
Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity consideration for replacement awards	$ 9			$ 9
Increase in options outstanding (shares) | shares	900,000
Special dividend declared		$ 993
Information Systems & Global Solutions Business of Lockheed Martin | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in exchange for the RSU (in shares) | shares				600,000
Shares issued in exchange for the RSU				$ 23
Unrecognized stock based compensation				$ 12
Period for expense recognition				3 years
Additional paid-in capital | Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued in lieu of cash dividends				$ 29

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock-Based Compensation and Related Tax Benefits Recognized) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total stock-based compensation expense	$ 9	$ 9	$ 25	$ 23
Tax benefits recognized from stock-based compensation	$ 3	$ 4	$ 10	$ 9

Stock-Based Compensation (Sch65

Stock-Based Compensation (Schedule of Weighted Average Grant-Date Fair Value and Assumptions Used) (Detail)	2 Months Ended	7 Months Ended	9 Months Ended
	Sep. 30, 2016	Aug. 15, 2016	Oct. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	4 years 8 months 12 days	4 years 9 months	4 years 8 months 12 days
Expected volatility ( in percentage)	37.90%	29.90%	24.50%
Risk-free interest rate (in percentage)	1.20%	1.30%	1.40%
Dividend yield (in percentage)	2.70%	2.50%	2.90%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Operating Loss Carryforwards [Line Items]
Effective tax rate (percentage)	(22.70%)	38.80%	12.70%	29.70%
Tax Audits And Reviews
Operating Loss Carryforwards [Line Items]
Liabilities for uncertain tax positions	$ 6		$ 6
Other long-term liabilities	$ 5		$ 5

Business Segments (Schedule of

Business Segments (Schedule of Segment Reporting Information by Segment) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Oct. 02, 2015	Sep. 30, 2016	Oct. 02, 2015
Segment Reporting Information [Line Items]
Revenues	$ 1,868	$ 1,302	$ 4,468	$ 3,805
Operating income (loss)	$ 101	$ 94	$ 265	$ 196
Operating income (loss) margin (in percentage)	5.40%	7.20%	5.90%	5.20%
Information Systems & Global Solutions
Segment Reporting Information [Line Items]
Revenues	$ 620	$ 0	$ 620	$ 0
Operating income (loss)	$ 26	$ 0	$ 26	$ 0
Operating income (loss) margin (in percentage)	4.20%	0.00%	4.20%	0.00%
National Security Solutions
Segment Reporting Information [Line Items]
Revenues	$ 921	$ 878	$ 2,734	$ 2,619
Operating income (loss)	$ 91	$ 78	$ 224	$ 214
Operating income (loss) margin (in percentage)	9.90%	8.90%	8.20%	8.20%
Health and Infrastructure Sector
Segment Reporting Information [Line Items]
Revenues	$ 328	$ 418	$ 1,115	$ 1,182
Operating income (loss)	$ 41	$ 13	$ 116	$ (1)
Operating income (loss) margin (in percentage)	12.50%	3.10%	10.40%	(0.10%)
Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ (1)	$ 6	$ (1)	$ 4
Operating income (loss)	$ (57)	$ 3	$ (101)	$ (17)

Legal Proceedings (Additional I

Legal Proceedings (Additional Information) (Detail)	1 Months Ended		3 Months Ended	9 Months Ended
	Jun. 30, 2014plaintiff	May 31, 2014plaintiff	Apr. 30, 2012executiveLegalMatter	Sep. 30, 2016USD ($)	Aug. 16, 2016USD ($)	Nov. 10, 2015USD ($)	Jul. 31, 2013USD ($)	Nov. 30, 2008USD ($)
Legal Proceedings [Line Items]
Amount outstanding				$ 0
Securities Class Actions
Legal Proceedings [Line Items]
Number of lawsuits | LegalMatter			3
Number of lawsuits, withdrawn | LegalMatter			1
Number of lawsuits, consolidated | LegalMatter			2
Number of former Chief Executive Officers | executive			2
Greek Government Contract
Legal Proceedings [Line Items]
Recorded losses				123,000,000
Receivable				2,000,000
Arbitral award				21,000,000			$ 44,000,000
Greek Government Contract | Invoice for Undisputed Portion of Contract
Legal Proceedings [Line Items]
Contracts receivable								$ 15,000,000
Greek Government Contract | Value Added Taxes
Legal Proceedings [Line Items]
Contracts receivable				28,000,000
Greek Government Contract | Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Letter of credit available to the company				16,000,000
Greek Government Contract | Standby Letters of Credit
Legal Proceedings [Line Items]
Letter of credit available to the company				18,000,000
Greek Government Contract | Letters Of Credit Related System Support And Maintenance | Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Amount outstanding				4,000,000
MSA Venture
Legal Proceedings [Line Items]
Estimate of possible loss					$ 64,000,000	$ 64,000,000
Contingency accrual				40,000,000
Data Privacy Litigation
Legal Proceedings [Line Items]
Number of plaintiffs | plaintiff	2	2
Lockheed Martin | MSA Venture
Legal Proceedings [Line Items]
Percentage of damages covered, between $38 million and $64 million (percentage)					100.00%
Percentage of damages covered, excess of $64 million settlement amount (percentage)					50.00%
Leidos | MSA Venture
Legal Proceedings [Line Items]
Estimate of possible loss					$ 38,000,000
Information Systems & Global Solutions Business of Lockheed Martin | MSA Venture
Legal Proceedings [Line Items]
Indemnification asset				$ 2,000,000

Other Commitments and Conting69

Other Commitments and Contingencies (Additional Information) (Detail) $ in Millions	Sep. 30, 2016USD ($)	Feb. 03, 2016USD ($)	Dec. 17, 2014USD ($)	Nov. 30, 2012USD ($)patent	Oct. 02, 2015USD ($)	Oct. 02, 2015USD ($)	Sep. 30, 2016USD ($)patent
Other Commitments And Contingencies [Line Items]
Proceeds from settlements					$ 8	$ 10
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Amount outstanding	$ 71						$ 71
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds	132						$ 132
Virnet X Inc
Other Commitments And Contingencies [Line Items]
Number of patents found infringed upon | patent				2			4
Patents transferred and awarded	$ 302	$ 626	$ 23	$ 368
Leidos
Other Commitments And Contingencies [Line Items]
Litigation settlement, percentage of total litigation (in percentage)		25.00%