Leidos (LDOS) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2017	Oct. 24, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,017
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	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		151,282,460

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 29, 2017	Dec. 30, 2016
Current assets:
Cash and cash equivalents	$ 287	$ 376
Receivables, net	1,797	1,657
Inventory, prepaid expenses and other current assets	487	348
Total current assets	2,571	2,381
Property, plant and equipment, net	212	259
Intangible assets, net	925	1,589
Goodwill	4,976	4,622
Deferred tax assets	0	16
Other assets	239	265
Total assets	8,923	9,132
Current liabilities:
Accounts payable and accrued liabilities	1,500	1,427
Accrued payroll and employee benefits	435	483
Dividends payable	18	23
Income taxes payable	4	21
Long-term debt, current portion	64	62
Total current liabilities	2,021	2,016
Long-term debt, net of current portion	3,043	3,225
Deferred tax liabilities	337	540
Other long-term liabilities	215	204
Commitments and contingencies (Notes 16 and 17)
Stockholders’ equity:
Common stock, $.0001 par value, 500 million shares authorized, 151 million and 150 million shares issued and outstanding at September 29, 2017 and December 30, 2016, respectively	0	0
Additional paid-in capital	3,335	3,316
Accumulated deficit	(72)	(177)
Accumulated other comprehensive income (loss)	31	(4)
Total Leidos stockholders’ equity	3,294	3,135
Non-controlling interest	13	12
Total equity	3,307	3,147
Total liabilities and stockholders' equity	$ 8,923	$ 9,132

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 29, 2017	Dec. 30, 2016
Statement of Financial Position [Abstract]
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	151,000,000	150,000,000
Common stock, shares outstanding	151,000,000	150,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 2,503	$ 1,868	$ 7,654	$ 4,468
Cost of revenues	2,189	1,630	6,692	3,925
Selling, general and administrative expenses	141	88	428	204
Acquisition and integration costs	21	44	56	68
Restructuring expenses	6	5	25	6
Equity earnings of non-consolidated subsidiaries	(5)	0	(5)	0
Operating income	151	101	458	265
Interest income	1	3	5	8
Interest expense	(36)	(28)	(110)	(57)
Other (expense) income, net	0	(1)	6	(3)
Income from continuing operations before income taxes	116	75	359	213
Income tax (expense) benefit	(37)	17	(108)	(27)
Net income	79	92	251	186
Less: net (loss) income attributable to non-controlling interest	(3)	1	(1)	1
Net income attributable to Leidos common stockholders	$ 82	$ 91	$ 252	$ 185
Earnings per share:
Basic (dollar per share)	$ 0.54	$ 0.81	$ 1.67	$ 2.18
Diluted (dollar per share)	0.53	0.80	1.65	2.13
Cash dividends declared per share (dollars per share)	$ 0.32	$ 13.96	$ 0.96	$ 14.60

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 79	$ 92	$ 251	$ 186
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments	21	2	34	6
Unrecognized gain (loss) on derivative instruments	3	(4)	2	(4)
Pension liability adjustments	(1)	0	(1)	0
Total other comprehensive income (loss), net of taxes	23	(2)	35	2
Comprehensive income	102	90	286	188
Less: comprehensive (loss) income attributable to non-controlling interest	(3)	1	(1)	1
Comprehensive income attributable to Leidos common stockholders	$ 105	$ 89	$ 287	$ 187

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Cash flows from operations:
Net income	$ 251	$ 186
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	254	54
Stock-based compensation	32	25
Bad debt expense	11	1
Other	23	(3)
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	(155)	140
Inventory, prepaid expenses and other current assets	(46)	(80)
Accounts payable and accrued liabilities	5	36
Accrued payroll and employee benefits	(44)	(2)
Deferred income taxes and income taxes receivable/payable	(50)	(19)
Other long-term assets/liabilities	81	(10)
Net cash provided by operating activities of continuing operations	362	328
Cash flows from investing activities:
Payments for property, plant and equipment	(42)	(20)
Acquisition of business	0	25
Collections on promissory note	2	4
Net proceeds from sale of assets	7	3
Proceeds from disposition of business	0	23
Other	0	(1)
Net cash (used in) provided by investing activities of continuing operations	(33)	34
Cash flows from financing activities:
Payments of long-term debt	(194)	(102)
Proceeds from debt issuance	0	690
Payments for debt issuance and modification costs	(4)	(30)
Proceeds from issuances of stock	10	25
Repurchases of stock and other	(26)	(20)
Special cash dividend payment	0	(993)
Dividend payments	(150)	(94)
Net cash used in financing activities of continuing operations	(364)	(524)
Net decrease in cash, cash equivalents and restricted cash from continuing operations	(35)	(162)
Cash flows from discontinued operations:
Net cash used in investing activities of discontinued operations	0	(1)
Net decrease in cash, cash equivalents and restricted cash from discontinued operations	0	(1)
Net decrease in cash, cash equivalents and restricted cash	(35)	(163)
Cash, cash equivalents and restricted cash at beginning of period	396	673
Cash, cash equivalents and restricted cash at end of period	$ 361	$ 510

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos") is a holding company whose direct 100% -owned subsidiaries and principal operating companies are Leidos, Inc. and Leidos Innovations Corporation ("Leidos Innovations"). Leidos is a FORTUNE 500 ® science and technology company that provides technology and engineering services and solutions in the defense, intelligence, civil and health markets . Leidos' domestic customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Health and Human Services ("HHS"), 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 include the balances of all voting interest entities in which Leidos has a controlling voting interest (“subsidiaries”) and variable interest entity in which Leidos is the primary beneficiary in accordance with the consolidation accounting guidance. The consolidated balances of the Company’s variable interest entity is not material to the Company’s condensed consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies 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 estimated profitability of long-term contracts, indirect billing rates, allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, stock-based compensation expense and contingencies. These 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. 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 Annual Report on Form 10-K filed on February 24, 2017. During the quarter ended March 31, 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil, Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017. As a result of this change, prior year segment results and disclosures have been recast to reflect the new reportable segments (see "Note 15–Business Segments"). Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. "Bad debt expense" has been aggregated within "Selling, general and administrative expenses" on the condensed consolidated statements of income. Changes in Estimates on Contracts Changes in estimates related to long-term 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, with the exception of contracts acquired through the acquisition of Lockheed Martin Corporation's Information Systems & Global Solutions business (the "IS&GS Business") (see "Note 2–Acquisitions"), where the adjustment is made for the period commencing from the date of acquisition. Changes in these estimates can 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 29, September 30, September 29, September 30, (in millions, except per share amounts) Net favorable impact to income from continuing operations before taxes $ 9 $ 4 $ 71 $ 17 Impact on diluted EPS from continuing operations attributable to Leidos common stockholders $ 0.04 $ 0.02 $ 0.32 $ 0.12 Accounting Standards Updates Adopted In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates Step two of the goodwill impairment test and simplifies how the amount of an impairment loss is determined. The update is effective for public companies in the beginning of fiscal year 2020 and shall be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted the provisions of ASU 2017-04 prospectively in the first quarter of fiscal 2017 and the standard did not have a material effect on the Company's consolidated financial position, results of operations or cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU provides clarification on when to apply modification accounting for a stock-based award to reduce diversity in practice. The update is effective for public companies in the beginning of fiscal year 2018 and shall be applied on a prospective basis. Early adoption is permitted for public business entities. The Company adopted the provisions of ASU 2017-09 prospectively in the second quarter of fiscal 2017 and the standard did not have a material effect on the Company's consolidated financial position, results of operations or 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 in how certain cash receipts and cash payments are presented and classified on the statement of cash flows to reduce diversity in practice. The update is effective for public companies in the beginning of fiscal 2018. 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. Early adoption is permitted. The Company early adopted the provisions of ASU 2016-15 in the third quarter of fiscal 2017, and the adoption did not have a material impact on the Company's consolidated statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a revised guidance that requires restricted cash and restricted cash equivalents to be included within beginning and ending total cash amounts reported in the consolidated statements of cash flows. The ASU requires disclosure of the nature of the restrictions on cash balances along with a reconciliation of the amount of cash and cash equivalents, as presented on the balance sheet, to the amount of cash, cash equivalents and restricted cash, as presented on the statement of the cash flows. The update is effective for public companies in the beginning of fiscal year 2018, and should be applied on a retrospective basis. Early adoption is permitted. The Company early adopted the provisions of ASU 2016-18 in the third quarter of fiscal 2017. As a result of adoption of this ASU, changes in restricted cash, which had previously been presented as operating activities, are now included within beginning and ending cash, cash equivalents and restricted cash balances on the statement of cash flows. Consequently, operating cash flows for the nine months ended September 29, 2017 and September 30, 2016 increased by $54 million and $44 million , respectively, with a corresponding increase in the total change in cash, cash equivalents and restricted cash for the respective periods (see "Note 13–Supplementary Cash Flow Information and Restricted Cash" for the disclosures required by this ASU). Accounting Standards Updates Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 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 (for example, insurance contracts or lease contracts). This ASU supersedes 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 control for 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 (i.e., either over time or 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. The Company will adopt the new revenue standard in the beginning of fiscal 2018, under the modified retrospective method, where the cumulative effect is recognized at the date of initial adoption. As of September 29, 2017, the Company has substantially completed its evaluation of the ASU, including the anticipated impact on business processes, systems and controls, potential differences in the timing and/or method of revenue recognition for contracts and required disclosures. Adoption controls over the ASU have been designed, including documenting the process flow for such activities. Existing controls have also been evaluated and additional controls are being considered for new reporting requirements such as dual reporting. The ASU requires expanded disclosures regarding the nature, timing, and uncertainty of revenue, cash flow and contract balances, including how and when performance obligations are satisfied and the relationship between revenue recognized and changes in contract balances during a reporting period. The Company is in the process of generating the data requirements and adding additional procedures to the quarterly process. The Company is also in the process of creating system generated reports to support certain required disclosures. Based on the ongoing assessments, the Company believes the timing of and amount of revenue recognition will largely remain consistent between the current revenue standard and the revised revenue standard for the majority of the Company's contracts. Specifically, for time-and-materials, fixed-price-level-of-effort, cost-plus-fixed-fee, cost-plus-award-fee, cost-plus-incentive fee and fixed-price-incentive fee contracts, the Company will continue to recognize revenue over time as work progresses because of the continuous transfer of control to the customer, using an input measure (e.g., cost incurred) to reflect progress. The Company expects that differences, if any, in revenue recognition between the current and revised revenue standards will primarily occur within the firm-fixed-price contracts as a result of the identification of new performance obligations. Based on current evaluations, the Company does not expect the ASU to have a material impact on its consolidated financial statements. 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 update is effective for public companies in the beginning of fiscal 2019 and should be adopted under the modified retrospective approach. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-02 and its impact on the Company's consolidated financial position, results of operations and cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities . This ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. The update is effective for public companies in the beginning of fiscal 2019 and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is evaluating the provisions of ASU 2017-12 and its impact on the Company's consolidated cash flows.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 29, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with the IS&GS Business in a Reverse Morris Trust transaction (the "Transactions"). The acquired IS&GS Business was renamed Leidos Innovations Corporation. The final 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 Working capital adjustments 81 Purchase price $ 3,019 (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) Represents a portion of the $23 million total fair value of replacement equity-based awards attributable to the pre-Merger service period. The remaining $12 million , net of estimated forfeitures, will be recognized as stock-based compensation expense over the remaining requisite service period. The final fair values of the assets acquired and liabilities assumed at the date of the Transactions were as follows (in millions): Cash $ 25 Receivables 938 Inventory, prepaid expenses and other current assets 73 Property, plant and equipment 87 Intangible assets 1,194 Other assets 58 Accounts payable and accrued liabilities (733 ) Accrued payroll and employee benefits (186 ) Long-term debt, current portion (23 ) Deferred tax liabilities (328 ) Long-term debt, net of current portion (1,780 ) Other long-term liabilities (45 ) Total identifiable net liabilities assumed (720 ) Non-controlling interest (13 ) Goodwill 3,752 Purchase price $ 3,019 During the quarter and nine months ended September 29, 2017, the Company recorded adjustments to finalize the fair value of acquired assets and liabilities assumed which resulted in a $37 million and $337 million increase in goodwill, respectively. Significant changes included intangible assets, receivables, property, plant and equipment, deferred tax assets, other assets, accounts payable and accrued liabilities and deferred tax liabilities. During the quarter ended September 29, 2017, the Company recognized cumulative catch-up adjustments related to valuation adjustments for intangible assets and property, plant and equipment, which resulted in an increase of $6 million of amortization expense and $7 million of depreciation expense, respectively. For the nine months ended September 29, 2017, the Company recognized a cumulative catch-up adjustment related to valuation adjustments for intangible assets and equity method investments, which resulted in a decrease of $2 million and an increase of $7 million in amortization expense, respectively. The Company recorded the cumulative catch-up adjustments to amortization expense within "Selling, general and administrative expenses", adjustments to depreciation within "Costs of revenues" and "Selling, general and administrative expenses", and for earnings from equity method investments within " Equity earnings of non-consolidated subsidiaries ", in the Company's condensed consolidated statements of income. During the quarter ended June 30, 2017, the Company recorded a valuation adjustment to reflect the fair value of the non-controlling interest acquired. The fair value of $13 million was determined by calculating the present value of future cash flows for the non-controlling interest. Significant assumptions inherent in the valuation of the non-controlling interest include the estimated after-tax cash flows expected to be received and an assessment of the appropriate discount rate. The goodwill represents intellectual capital and the acquired assembled work force, none of which qualify for recognition as a separate intangible asset. The value of goodwill has been allocated to the reporting units on a relative fair value approach (see "Note 6–Goodwill"). Of the total goodwill, $414 million is tax deductible. The Company identified $1.2 billion of intangible assets, representing program and contract intangibles, backlog and software and technology. The fair value measurements were primarily based on significant inputs that are not observable in the market and represent a Level 3 measurement (see "Note 5–Fair Value Measurements"). The income approach was primarily used to value the intangible assets, consisting primarily of acquired program intangibles and funded backlog. The income approach indicates value for an asset based on the present value of cash flow projected to be generated by the asset. Projected cash flow is discounted at a rate of return that reflects the relative risk of achieving the cash flow and the time value of money. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Program and contract intangibles (1) 9.7 $ 1,011 Backlog 1.8 157 Software and technology 4.6 26 Total 8.6 $ 1,194 (1) The weighted average amortization period is estimated based on the projected economic benefits associated with these assets. Refer to "Note 7–Intangible Assets" for additional information. The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Acquisition costs $ — $ 27 $ 1 $ 40 Integration costs 21 17 55 28 Total acquisition and integration costs $ 21 $ 44 $ 56 $ 68 Pro Forma Financial Information (unaudited) The following pro forma financial information presents condensed 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 (unaudited) September 30, September 30, (in millions, except per share amounts) Revenues $ 2,607 $ 7,868 Income from continuing operations 132 291 Income from continuing operations attributable to Leidos common stockholders 131 286 Earnings per share: Basic $ 0.87 $ 1.91 Diluted 0.86 1.88 The unaudited pro forma financial information above excludes acquisition-related costs of $27 million and $40 million for the quarter and nine months ended September 30, 2016, respectively, as a nonrecurring significant adjustment. This adjustment was made to account for certain costs incurred as if the Transactions had been completed on January 3, 2015.

Divestitures

Divestitures	9 Months Ended
	Sep. 29, 2017
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Divestitures In April 2016, the Company disposed of a business, historically included within the Civil segment, 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 . 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 receivable transferred. The Company paid $1 million of selling costs related to the transaction. The Company recorded the preliminary pre-tax gain on sale in " Other (expense) income, net " in the Company's condensed consolidated statements of income during the quarter ended July 1, 2016. On July 24, 2015, the Company completed the sale of its equity interests in Plainfield Renewable Energy Holdings LLC ("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 due in July 2018 . The Company collected $6 million of principal and interest during the quarter ended March 31, 2017. During the quarter ended June 30, 2017, Plainfield exercised the first of three one -year term extension options available under the original credit agreement, thereby extending the maturity date of the Note to July 24, 2018. Concurrent with this extension, the interest rate on the Note increased from 6% to 8% . Also, during the quarter ended June 30, 2017, Leidos and Plainfield entered into an amendment to the Note allowing Plainfield to defer up to $4 million of the interest and principal payments due in July 2017 and January 2018, until July 2018. In consideration of this deferment, Leidos received certain concessions and releases from obligations under the original transaction documents. As of September 29, 2017, the Company continues to expect the Note to be collectible in full.

Restructuring Expenses

Restructuring Expenses	9 Months Ended
	Sep. 29, 2017
Restructuring and Related Activities [Abstract]
Restructuring Expenses	Restructuring Expenses After the acquisition of the IS&GS Business, the Company began an initiative 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 restructuring expenses related to this program were as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Severance costs $ 2 $ 4 $ 14 $ 4 Lease termination expenses 4 1 11 1 Restructuring expenses related to the IS&GS Business $ 6 $ 5 $ 25 $ 5 These restructuring expenses have been recorded within Corporate and presented separately on the condensed consolidated statements of income. The restructuring liability related to this program at September 29, 2017, was as follows: Severance costs Lease termination expenses Total (in millions) Balance as of December 30, 2016 $ 7 $ 1 $ 8 Charges 14 11 25 Cash payments (20 ) (10 ) (30 ) Balance as of September 29, 2017 $ 1 $ 2 $ 3 The Company expects the remainder of the restructuring liability to be substantially settled within one year .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The accounting standard for fair value measurements establishes a three-level fair 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 for identical assets or liabilities that are observable either directly or indirectly or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data (e.g., discounted cash flow and other similar pricing models), which requires the Company to develop its own assumptions (Level 3). The accounting guidance for fair value measurements requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. We have not made fair value option elections on any of our financial assets and liabilities. The Company's financial assets measured on a recurring basis at fair value consisted of the following: September 29, 2017 December 30, 2016 Carrying value Fair value Carrying value Fair value (in millions) Derivatives $ 31 $ 31 $ 29 $ 29 The Company's derivatives consisted of the fair value interest rate swaps on its $450 million fixed rate 4.45% senior secured notes maturing in December 2020, and cash flow interest rate swaps on $1.5 billion of the Company's variable rate senior secured term loans (see "Note 9–Derivative Instruments"). The fair value of the fair value interest rate swaps and cash flow interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve and the underlying interest rate, respectively (Level 2 inputs). 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 29, 2017, of $91 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). As of September 29, 2017 and December 30, 2016, the fair value of debt was $3.2 billion and $3.3 billion , respectively, and the carrying amount was $3.1 billion and $3.3 billion , respectively (see "Note 10–Debt"). The fair value of long-term 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). The Company’s cash equivalents were primarily comprised of investments in several large institutional money market funds and bank deposits, with original maturities of three months or less. As of September 29, 2017, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis.

Goodwill

Goodwill	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill During the quarter ended March 31, 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil, Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017 (see "Note 15–Business Segments"). Goodwill, including the amounts from the acquisition of the IS&GS Business, was allocated to the reporting units on a relative fair value approach. The following table presents changes in the carrying amount of goodwill by reportable segment: Defense Solutions Civil Health Total (in millions) Goodwill at January 1, 2016 $ 792 $ 244 $ 171 $ 1,207 Acquisition of the IS&GS Business 1,162 1,487 766 3,415 Goodwill at December 30, 2016 1,954 1,731 937 4,622 Adjustment to original purchase price allocation 94 259 (16 ) 337 Foreign currency translation adjustments 9 8 — 17 Goodwill at September 29, 2017 $ 2,057 $ 1,998 $ 921 $ 4,976 See "Note 2–Acquisitions" for the description of adjustments to the original purchase price allocation. In conjunction with the change in reportable segments, the Company evaluated goodwill for impairment, both before and after the segment change and determined that goodwill was not impaired. Goodwill is tested for impairment 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 29, 2017 and September 30, 2016.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets consisted of the following: September 29, 2017 December 30, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Program and contract intangibles $ 1,013 $ (145 ) $ 868 $ 1,450 $ (25 ) $ 1,425 Backlog 158 (134 ) 24 200 (54 ) 146 Software and technology 89 (61 ) 28 61 (48 ) 13 Customer relationships 6 (5 ) 1 6 (5 ) 1 Total finite-lived intangible assets 1,266 (345 ) 921 1,717 (132 ) 1,585 Indefinite-lived intangible assets: Trade names 4 — 4 4 — 4 Total intangible assets $ 1,270 $ (345 ) $ 925 $ 1,721 $ (132 ) $ 1,589 Amortization expense related to intangible assets, including those acquired through the Transactions, was $76 million and $212 million for the quarter and nine months ended September 29, 2017, respectively, and $27 million and $30 million for the quarter and nine months ended September 30, 2016, respectively. The acquired program and contract intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows. The acquired backlog and software and technology 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 as of September 29, 2017, was as follows: Fiscal Year Ending (in millions) 2017 (remainder of year) $ 70 2018 202 2019 172 2020 128 2021 106 2022 and thereafter 243 $ 921

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment, net consisted of the following: September 29, December 30, (in millions) Computers and other equipment $ 195 $ 172 Leasehold improvements 166 161 Buildings and improvements 54 104 Office furniture and fixtures 35 35 Land 49 57 Construction in progress 21 12 520 541 Less: accumulated depreciation and amortization (308 ) (282 ) $ 212 $ 259 Depreciation expense was $16 million and $42 million for the quarter and nine months ended September 29, 2017, respectively, and $10 million and $24 million for the quarter and nine months ended September 30, 2016, respectively.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 29, 2017
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 a portion of the variable interest rate payments to fixed interest rate payments. These swaps are designated as cash flow hedges. Fair Value Hedges The Company has 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) (See "Note 10–Debt"). 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 its variable rate senior secured term loans (the "Variable Rate Loans"). In September 2017, the Company entered into interest rate swap agreements to hedge the cash flows of an additional $300 million of its 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 are based on the LIBOR rate. Under the terms of the interest rate swap agreements, the Company will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate. The interest rate swap agreements on $1.2 billion and $300 million of the Company's Variable Rate Loans have a maturity date of December 2021 and August 2022, respectively, and a fixed interest rate of 1.08% and 1.66% , respectively. The counterparties to these agreements are financial institutions. The interest rate swap transactions were accounted for as cash flow hedges 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 is 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 recorded in the earnings is 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 was as follows: Balance sheet line item September 29, December 30, (in millions) Fair value interest rate swaps Other assets $ 4 $ 3 Cash flow interest rate swaps Other assets 27 26 $ 31 $ 29 The effect of the Company's cash flow hedges on other comprehensive income and earnings for the periods presented was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Effective portion recognized in other comprehensive income $ 3 $ (7 ) $ — $ (7 ) Effective portion reclassified from accumulated other comprehensive income (loss) to earnings — 1 1 1 Ineffective portion recognized in earnings (1 ) — — — The Company expects to reclassify gains of $4 million from accumulated other comprehensive income (loss) into earnings during the next 12 months. The cash flows associated with the interest rate swaps are classified as operating activities in the condensed consolidated statements of cash flows.

Debt

Debt	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Debt	Debt The Company's debt consisted of the following: Stated interest rate Effective interest rate September 29, 2017 (1) December 30, 2016 (1) (in millions) Senior secured notes: $450 million notes, due December 2020 4.45% 4.53% $ 452 $ 451 $300 million notes, due December 2040 5.95% 6.03% 216 216 Senior secured term loans: $400 million Term Loan A, due August 2019 3.00% —% — 123 $690 million Term Loan A, due August 2022 3.00% 3.49% 652 676 $310 million Term Loan A, due August 2022 3.00% 3.48% 274 304 $1,131 million Term Loan B, due August 2023 3.25% 3.61% 1,103 1,110 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%-5.55% Various 6 3 Total long-term debt 3,107 3,287 Less: current portion 64 62 Total long-term debt, net of current portion $ 3,043 $ 3,225 (1) The carrying amounts of the senior secured term loans and notes and unsecured notes as of September 29, 2017, and December 30, 2016, include the remaining principal outstanding of $3,145 million and $3,336 million , respectively, plus $4 million and $3 million , respectively, related to the fair value of the interest rate swaps (see "Note 9–Derivative Instruments"), less unamortized debt discounts of $37 million and $46 million , respectively, less deferred debt issuance costs of $11 million and $9 million , respectively. In February 2017, Leidos amended the terms of its senior secured $1.1 billion Term Loan B, due August 2023. As a result, the margin on Term Loan B was reduced by 50 basis points to 2.25% and the six month call provision was extended an additional six months. The repricing of the term loan became effective on February 16, 2017. In August 2017, Leidos amended its senior secured term loans and revolving credit facility credit agreements. These amendments reduced the applicable margins for the revolving credit facility and Term Loans A and B each by 25 basis points. Additionally, the maturity date for the revolving credit facility, $690 million Term Loan A and $310 million Term Loan A were each extended by one year to August 2022, and the scheduled increase in quarterly principal payments for both of these term loans was delayed one year to March 2020. The amendments also include a collateral suspension provision that will permit the secured credit agreements to become unsecured under certain circumstances. The interest rate on the Company's senior secured term loans is determined based on the LIBOR rate plus a margin. The margin for the Term Loan A loans ranges from 1.50% to 2.00% , depending on the Company's senior secured leverage ratio, and is computed on a quarterly basis. At September 29, 2017, the current margin on Term Loan A was 1.75% and the margin on Term Loan B was 2.00% . In addition to the required quarterly payments on the Company's term loans, the Company prepaid $105 million and $130 million during the quarter and nine months ended September 29, 2017, respectively. Principal of the Company's variable rate senior secured term loans is payable on a quarterly basis, with the majority of the principal due at maturity. Interest on the variable rate senior secured term loans is payable on a periodic basis, which must be at least quarterly. Interest on the senior fixed rate secured notes and unsecured notes is payable on a semi-annual basis with principal payments due at maturity. Amortization of debt discount and deferred financing costs was $3 million and $10 million for the quarter and nine months ended September 29, 2017, respectively, and $3 million for the quarter and nine months ended September 30, 2016. The Company has 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 2022 . As of September 29, 2017 and December 30, 2016, there were no borrowings outstanding under the credit facility. The senior secured term loans and notes, unsecured notes and revolving credit facility are fully and unconditionally guaranteed and 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 29, 2017.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 29, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign currency translation adjustments Unrecognized (loss) gain on derivative instruments Pension liability adjustments Total accumulated other comprehensive income (loss) (in millions) Balance at January 1, 2016 $ — $ (4 ) $ (4 ) $ (8 ) Other comprehensive (loss) income (8 ) 26 1 19 Taxes 1 (10 ) 2 (7 ) Reclassification from accumulated other comprehensive income (loss) — (2 ) (6 ) (8 ) Balance at December 30, 2016 (7 ) 10 (7 ) (4 ) Other comprehensive income (loss) 36 2 (1 ) 37 Taxes (2 ) 1 — (1 ) Reclassification from accumulated other comprehensive income (loss) — (1 ) — (1 ) Balance at September 29, 2017 $ 27 $ 12 $ (8 ) $ 31 Reclassifications for unrecognized (loss) gain on derivative instruments associated with outstanding debt are recorded in "Interest expense" in the Company's condensed consolidated statements of income. Reclassifications for pension liability adjustments are recorded in "Selling, general and administrative expenses" in the Company's condensed consolidated statements of income.

Earnings Per Share (EPS)

Earnings Per Share (EPS)	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Earnings Per Share (EPS)	Earnings Per Share ("EPS") 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 29, September 30, September 29, September 30, (in millions) Basic weighted average number of shares outstanding 152 112 151 85 Dilutive common share equivalents—stock options and other stock awards 2 2 2 2 Diluted weighted average number of shares outstanding 154 114 153 87 Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute diluted EPS. For the quarter and nine months ended September 29, 2017 and September 30, 2016, there was an immaterial amount of outstanding stock options and vesting stock awards that were antidilutive.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the quarter ended September 29, 2017, the effective tax rate was 31.9% compared to (22.7)% for the quarter ended September 30, 2016. The increase in the effective tax rate was primarily due to items that occurred during the quarter ended September 30, 2016 that did not recur during 2017. The tax deduction of the special cash dividend, related to the Transactions described in "Note 2–Acquisitions", on shares held by the Leidos retirement plan, and a benefit from the resolution of an uncertain tax position caused a substantial decrease in the rate for the quarter ended September 30, 2016. For the nine months ended September 29, 2017, our effective tax rate was 30.1% compared to 12.7% for the nine months ended September 30, 2016. The increase was primarily due to the tax deduction of the special cash dividend, related to the Transactions described in "Note 2–Acquisitions", on shares held by the Leidos retirement plan that occurred during the nine months ended September 30, 2016.

Supplementary Cash Flow Informa

Supplementary Cash Flow Information and Restricted Cash	9 Months Ended
	Sep. 29, 2017
Supplemental Cash Flow Information [Abstract]
Supplementary Cash Flow Information and Restricted Cash	Supplementary Cash Flow Information and Restricted Cash Supplementary cash flow information, including non-cash activities, for the periods presented was as follows: Nine Months Ended September 29, September 30, (in millions) Supplementary cash flow information: Cash paid for interest $ 78 $ 53 Cash paid for income taxes, net of refunds 158 45 Non-cash investing activity: Stock issued for acquisition of the IS&GS Business $ — $ 2,938 Non-cash financing activity: Dividends declared and other $ 2 $ 20 Stock issued in lieu of cash dividends — 10 Capital lease obligation 6 — The following is a reconciliation of cash and cash equivalents, as reported within the condensed consolidated balance sheets, to the total cash, cash equivalents and restricted cash, as reported within the condensed consolidated statements of cash flows, as required by the adoption of ASU 2016-18 (see "Note 1–Basis of Presentation and Summary of Significant Accounting Polices"): September 29, December 30, (in millions) Cash and cash equivalents $ 287 $ 376 Restricted cash 74 20 Total cash, cash equivalents and restricted cash $ 361 $ 396 The restricted cash is recorded within "Inventory, prepaid expenses and other current assets" in the Company's condensed consolidated balance sheets. The restricted cash primarily comprises advance payments by customers on certain contracts, to pay for costs on those specified contracts.

Business Segments

Business Segments	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Business Segments	Business Segments During the quarter ended March 31, 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments . Additionally, the Company separately presents the costs associated with corporate functions as Corporate.The Company's operations and the new reportable segments are aligned around the nature of work and customers it serves. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017. At September 29, 2017, the Company's reportable segments and Corporate were: • Defense Solutions – delivers cutting edge technology and services to the DoD, military services, the U.S. Intelligence Community, DHS, agencies of U.S. allies abroad and other federal and civilian customers. The Company's Defense Solutions business is focused on cybersecurity, data analytics, IT modernization and software development, as well as technology to support intelligence, surveillance and reconnaissance services. • Civil – provides services and solutions to civil agencies of the U.S. Government and commercial customers. The Company's Civil business is focused on software development, operations and sustainment, enterprise IT modernization, systems engineering and cyber services. • Health – provides services and solutions to the Defense Health Agency, Veterans Administration, HHS, other civil health agencies of the U.S. Government and commercial healthcare providers. The Company's Health business is focused on enterprise IT modernization, software development, data analytics, electronic health record implementation, mission critical operations and sustainment, life sciences and public health. • Corporate – includes the operations of various corporate activities and certain expense items that are not reimbursed by the Company's U.S. Government customers. The segment information for the periods presented, of which the prior period has been recast to reflect the Company's current reportable segment structure, was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Revenues: Defense Solutions $ 1,201 $ 1,009 $ 3,738 $ 2,574 Civil 838 559 2,555 1,220 Health 464 300 1,361 674 Total revenues $ 2,503 $ 1,868 $ 7,654 $ 4,468 Operating income (loss): Defense Solutions $ 80 $ 93 $ 222 $ 224 Civil 50 38 170 80 Health 63 28 184 62 Corporate (42 ) (58 ) (118 ) (101 ) Total operating income $ 151 $ 101 $ 458 $ 265 The financial performance measures used to evaluate segment performance are revenues and operating income. As a result, " Other (expense) income, net ," "Interest income," "Interest expense" and " Income tax (expense) benefit ," as reported in the condensed consolidated financial statements are not allocated to the Company's segments. 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. Asset information by segment is not a key measure of performance used by the Company's chief operating decision maker, currently the Chairman and Chief Executive Officer.

Contingencies

Contingencies	9 Months Ended
	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal Proceedings MSA Venture On November 10, 2015, Mission Support Alliance, LLC ("MSA"), a joint venture with Jacobs Engineering Group, Inc. and Centerra Group, LLC, 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. In addition, the U.S. Attorney's office has advised that a parallel criminal investigation is open, although no subjects or targets of the investigation have been identified. 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 29, 2017, the Company has a liability of $39 million and an indemnification asset of $1 million recorded in the condensed consolidated balance sheets. Securities Litigation Between February and April 2012, alleged stockholders filed three putative securities class actions against the Company and several former executives relating to 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"). 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 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. The District Court dismissed the plaintiffs' claims with prejudice and without leave to replead. The plaintiffs then appealed to the United States Court of Appeals for the Second Circuit, which issued an opinion affirming in part, and vacating in part, the District Court's ruling. The Company filed a petition for a writ of certiorari in the U.S. Supreme Court, which was granted on March 27, 2017. The District Court granted the Company’s request to stay all proceedings, including discovery, pending the outcome at the Supreme Court. In September 2017, the parties engaged in mediation resulting in an agreement to settle all remaining claims for an immaterial amount to be paid by the Company’s insurer. The terms of the proposed settlement remain subject to court approval, which is expected to occur in the first half of 2018. Greek Government Contract In 2003, the Company entered into a firm-fixed-price contract with the Hellenic Republic of Greece to provide a Command, Control, Communications, Coordination and Integration System. The Greek government disputed the contract balance owed to the Company and has not paid the Company’s final invoice. In 2013, the Company received an arbitral award by the International Chamber of Commerce for $46 million , which has not been satisfied. In January 2017, the U.S. District Court granted an order to enforce the arbitration award and entered judgment in the Company's favor, for which the award was subsequently increased to $63 million . The Greek government sought to annul the award through separate litigation in the Greek courts, however, on July 27, 2017, the Athens Court of Appeals issued a final decision rejecting the government's position. 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. 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 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 Inc. 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 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 the VirnetX patents at issue in the Apple I case. On September 29, 2017, the court entered a final judgment in the case, and in an opinion and order, unsealed by the court on October 13, 2017, the court found that Apple willfully infringed the VirnetX patents at issue in the Apple I case and awarded enhanced damages, bringing the total award against Apple to over $343 million in pre-interest damages. The court also awarded costs, certain attorneys’ fees, and certain interest, and directed VirnetX and Apple to meet and confer regarding those amounts, resulting in a filing by VirnetX asking the court to grant VirnetX an additional sum of over $96 million . This additional amount would bring the total award to VirnetX in the Apple I case to over $439 million . 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, Apple may 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 have any assets or liabilities recorded in connection with this matter as of September 29, 2017. 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 effect on the Company’s business, financial position, results of operations and cash flows due to its reliance on government contracts. During the quarter ended September 29, 2017, pursuant to the resolution of certain government accounting matters, including audits by the Defense Contract Audit Agency, the Company recorded a net $11 million reduction to its accrued liabilities. Indirect cost audits by the Defense Contract Audit Agency remain open for fiscal 2012 and subsequent years for Leidos, Inc., and fiscal 2011 and subsequent years for Leidos Innovations. Although the Company has recorded contract revenues based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company cannot predict the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability may be adversely affected. As of September 29, 2017, the Company believes it has adequately reserved for potential adjustments from audits or reviews of contract costs.

Commitments

Commitments	9 Months Ended
	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments	Commitments The Company has outstanding letters of credit of $92 million as of September 29, 2017, principally related to guarantees on contracts. The Company also has outstanding surety bonds in the amount of $155 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 four fiscal years. Additionally, the Company has outstanding performance guarantees and cross-indemnity agreements in connection with certain aspects of its business. As of September 29, 2017, the Company is not aware of any existing event of default that would require it to satisfy any of these guarantees.

Basis of Presentation and Sum24

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos") is a holding company whose direct 100% -owned subsidiaries and principal operating companies are Leidos, Inc. and Leidos Innovations Corporation ("Leidos Innovations"). Leidos is a FORTUNE 500 ® science and technology company that provides technology and engineering services and solutions in the defense, intelligence, civil and health markets . Leidos' domestic customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Health and Human Services ("HHS"), 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 include the balances of all voting interest entities in which Leidos has a controlling voting interest (“subsidiaries”) and variable interest entity in which Leidos is the primary beneficiary in accordance with the consolidation accounting guidance. The consolidated balances of the Company’s variable interest entity is not material to the Company’s condensed consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies 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 estimated profitability of long-term contracts, indirect billing rates, allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, stock-based compensation expense and contingencies. These 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. 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 Annual Report on Form 10-K filed on February 24, 2017. During the quarter ended March 31, 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil, Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017. As a result of this change, prior year segment results and disclosures have been recast to reflect the new reportable segments (see "Note 15–Business Segments"). Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. "Bad debt expense" has been aggregated within "Selling, general and administrative expenses" on the condensed consolidated statements of income.
Changes in Estimates on Contracts	Changes in Estimates on Contracts Changes in estimates related to long-term 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, with the exception of contracts acquired through the acquisition of Lockheed Martin Corporation's Information Systems & Global Solutions business (the "IS&GS Business") (see "Note 2–Acquisitions"), where the adjustment is made for the period commencing from the date of acquisition. Changes in these estimates can 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 January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates Step two of the goodwill impairment test and simplifies how the amount of an impairment loss is determined. The update is effective for public companies in the beginning of fiscal year 2020 and shall be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted the provisions of ASU 2017-04 prospectively in the first quarter of fiscal 2017 and the standard did not have a material effect on the Company's consolidated financial position, results of operations or cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU provides clarification on when to apply modification accounting for a stock-based award to reduce diversity in practice. The update is effective for public companies in the beginning of fiscal year 2018 and shall be applied on a prospective basis. Early adoption is permitted for public business entities. The Company adopted the provisions of ASU 2017-09 prospectively in the second quarter of fiscal 2017 and the standard did not have a material effect on the Company's consolidated financial position, results of operations or 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 in how certain cash receipts and cash payments are presented and classified on the statement of cash flows to reduce diversity in practice. The update is effective for public companies in the beginning of fiscal 2018. 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. Early adoption is permitted. The Company early adopted the provisions of ASU 2016-15 in the third quarter of fiscal 2017, and the adoption did not have a material impact on the Company's consolidated statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a revised guidance that requires restricted cash and restricted cash equivalents to be included within beginning and ending total cash amounts reported in the consolidated statements of cash flows. The ASU requires disclosure of the nature of the restrictions on cash balances along with a reconciliation of the amount of cash and cash equivalents, as presented on the balance sheet, to the amount of cash, cash equivalents and restricted cash, as presented on the statement of the cash flows. The update is effective for public companies in the beginning of fiscal year 2018, and should be applied on a retrospective basis. Early adoption is permitted. The Company early adopted the provisions of ASU 2016-18 in the third quarter of fiscal 2017. As a result of adoption of this ASU, changes in restricted cash, which had previously been presented as operating activities, are now included within beginning and ending cash, cash equivalents and restricted cash balances on the statement of cash flows. Consequently, operating cash flows for the nine months ended September 29, 2017 and September 30, 2016 increased by $54 million and $44 million , respectively, with a corresponding increase in the total change in cash, cash equivalents and restricted cash for the respective periods (see "Note 13–Supplementary Cash Flow Information and Restricted Cash" for the disclosures required by this ASU).
Accounting Standards Updates Issued But Not Yet Adopted	Accounting Standards Updates Issued But Not Yet Adopted In May 2014, the FASB issued ASU No. 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 (for example, insurance contracts or lease contracts). This ASU supersedes 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 control for 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 (i.e., either over time or 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. The Company will adopt the new revenue standard in the beginning of fiscal 2018, under the modified retrospective method, where the cumulative effect is recognized at the date of initial adoption. As of September 29, 2017, the Company has substantially completed its evaluation of the ASU, including the anticipated impact on business processes, systems and controls, potential differences in the timing and/or method of revenue recognition for contracts and required disclosures. Adoption controls over the ASU have been designed, including documenting the process flow for such activities. Existing controls have also been evaluated and additional controls are being considered for new reporting requirements such as dual reporting. The ASU requires expanded disclosures regarding the nature, timing, and uncertainty of revenue, cash flow and contract balances, including how and when performance obligations are satisfied and the relationship between revenue recognized and changes in contract balances during a reporting period. The Company is in the process of generating the data requirements and adding additional procedures to the quarterly process. The Company is also in the process of creating system generated reports to support certain required disclosures. Based on the ongoing assessments, the Company believes the timing of and amount of revenue recognition will largely remain consistent between the current revenue standard and the revised revenue standard for the majority of the Company's contracts. Specifically, for time-and-materials, fixed-price-level-of-effort, cost-plus-fixed-fee, cost-plus-award-fee, cost-plus-incentive fee and fixed-price-incentive fee contracts, the Company will continue to recognize revenue over time as work progresses because of the continuous transfer of control to the customer, using an input measure (e.g., cost incurred) to reflect progress. The Company expects that differences, if any, in revenue recognition between the current and revised revenue standards will primarily occur within the firm-fixed-price contracts as a result of the identification of new performance obligations. Based on current evaluations, the Company does not expect the ASU to have a material impact on its consolidated financial statements. 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 update is effective for public companies in the beginning of fiscal 2019 and should be adopted under the modified retrospective approach. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-02 and its impact on the Company's consolidated financial position, results of operations and cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities . This ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. The update is effective for public companies in the beginning of fiscal 2019 and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is evaluating the provisions of ASU 2017-12 and its impact on the Company's consolidated cash flows.

Basis of Presentation and Sum25

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 29, 2017
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 29, September 30, September 29, September 30, (in millions, except per share amounts) Net favorable impact to income from continuing operations before taxes $ 9 $ 4 $ 71 $ 17 Impact on diluted EPS from continuing operations attributable to Leidos common stockholders $ 0.04 $ 0.02 $ 0.32 $ 0.12

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 29, 2017
Business Combinations [Abstract]
Schedule of Integration Costs	On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with the IS&GS Business in a Reverse Morris Trust transaction (the "Transactions"). The acquired IS&GS Business was renamed Leidos Innovations Corporation. The final 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 Working capital adjustments 81 Purchase price $ 3,019 (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) Represents a portion of the $23 million total fair value of replacement equity-based awards attributable to the pre-Merger service period. The remaining $12 million , net of estimated forfeitures, will be recognized as stock-based compensation expense over the remaining requisite service period. The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Acquisition costs $ — $ 27 $ 1 $ 40 Integration costs 21 17 55 28 Total acquisition and integration costs $ 21 $ 44 $ 56 $ 68
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The final fair values of the assets acquired and liabilities assumed at the date of the Transactions were as follows (in millions): Cash $ 25 Receivables 938 Inventory, prepaid expenses and other current assets 73 Property, plant and equipment 87 Intangible assets 1,194 Other assets 58 Accounts payable and accrued liabilities (733 ) Accrued payroll and employee benefits (186 ) Long-term debt, current portion (23 ) Deferred tax liabilities (328 ) Long-term debt, net of current portion (1,780 ) Other long-term liabilities (45 ) Total identifiable net liabilities assumed (720 ) Non-controlling interest (13 ) Goodwill 3,752 Purchase price $ 3,019
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Program and contract intangibles (1) 9.7 $ 1,011 Backlog 1.8 157 Software and technology 4.6 26 Total 8.6 $ 1,194 (1) The weighted average amortization period is estimated based on the projected economic benefits associated with these assets. Refer to "Note 7–Intangible Assets" for additional information.
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 (unaudited) September 30, September 30, (in millions, except per share amounts) Revenues $ 2,607 $ 7,868 Income from continuing operations 132 291 Income from continuing operations attributable to Leidos common stockholders 131 286 Earnings per share: Basic $ 0.87 $ 1.91 Diluted 0.86 1.88

Restructuring Expenses (Tables)

Restructuring Expenses (Tables)	9 Months Ended
	Sep. 29, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The restructuring expenses related to this program were as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Severance costs $ 2 $ 4 $ 14 $ 4 Lease termination expenses 4 1 11 1 Restructuring expenses related to the IS&GS Business $ 6 $ 5 $ 25 $ 5
Schedule of Restructuring Reserve by Type of Cost	The restructuring liability related to this program at September 29, 2017, was as follows: Severance costs Lease termination expenses Total (in millions) Balance as of December 30, 2016 $ 7 $ 1 $ 8 Charges 14 11 25 Cash payments (20 ) (10 ) (30 ) Balance as of September 29, 2017 $ 1 $ 2 $ 3

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company's financial assets measured on a recurring basis at fair value consisted of the following: September 29, 2017 December 30, 2016 Carrying value Fair value Carrying value Fair value (in millions) Derivatives $ 31 $ 31 $ 29 $ 29

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill by Segment	The following table presents changes in the carrying amount of goodwill by reportable segment: Defense Solutions Civil Health Total (in millions) Goodwill at January 1, 2016 $ 792 $ 244 $ 171 $ 1,207 Acquisition of the IS&GS Business 1,162 1,487 766 3,415 Goodwill at December 30, 2016 1,954 1,731 937 4,622 Adjustment to original purchase price allocation 94 259 (16 ) 337 Foreign currency translation adjustments 9 8 — 17 Goodwill at September 29, 2017 $ 2,057 $ 1,998 $ 921 $ 4,976

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets Including Estimates of Assets Acquired	Intangible assets consisted of the following: September 29, 2017 December 30, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Program and contract intangibles $ 1,013 $ (145 ) $ 868 $ 1,450 $ (25 ) $ 1,425 Backlog 158 (134 ) 24 200 (54 ) 146 Software and technology 89 (61 ) 28 61 (48 ) 13 Customer relationships 6 (5 ) 1 6 (5 ) 1 Total finite-lived intangible assets 1,266 (345 ) 921 1,717 (132 ) 1,585 Indefinite-lived intangible assets: Trade names 4 — 4 4 — 4 Total intangible assets $ 1,270 $ (345 ) $ 925 $ 1,721 $ (132 ) $ 1,589
Schedule of Amortization Expense for Finite-Lived Intangible Assets	The estimated annual amortization expense as of September 29, 2017, was as follows: Fiscal Year Ending (in millions) 2017 (remainder of year) $ 70 2018 202 2019 172 2020 128 2021 106 2022 and thereafter 243 $ 921

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment, net consisted of the following: September 29, December 30, (in millions) Computers and other equipment $ 195 $ 172 Leasehold improvements 166 161 Buildings and improvements 54 104 Office furniture and fixtures 35 35 Land 49 57 Construction in progress 21 12 520 541 Less: accumulated depreciation and amortization (308 ) (282 ) $ 212 $ 259

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 29, 2017
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 hedges on other comprehensive income and earnings for the periods presented was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Effective portion recognized in other comprehensive income $ 3 $ (7 ) $ — $ (7 ) Effective portion reclassified from accumulated other comprehensive income (loss) to earnings — 1 1 1 Ineffective portion recognized in earnings (1 ) — — —
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location	The fair value of the interest rate swaps was as follows: Balance sheet line item September 29, December 30, (in millions) Fair value interest rate swaps Other assets $ 4 $ 3 Cash flow interest rate swaps Other assets 27 26 $ 31 $ 29

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Schedule of Notes Payable and Long-Term Debt	The Company's debt consisted of the following: Stated interest rate Effective interest rate September 29, 2017 (1) December 30, 2016 (1) (in millions) Senior secured notes: $450 million notes, due December 2020 4.45% 4.53% $ 452 $ 451 $300 million notes, due December 2040 5.95% 6.03% 216 216 Senior secured term loans: $400 million Term Loan A, due August 2019 3.00% —% — 123 $690 million Term Loan A, due August 2022 3.00% 3.49% 652 676 $310 million Term Loan A, due August 2022 3.00% 3.48% 274 304 $1,131 million Term Loan B, due August 2023 3.25% 3.61% 1,103 1,110 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%-5.55% Various 6 3 Total long-term debt 3,107 3,287 Less: current portion 64 62 Total long-term debt, net of current portion $ 3,043 $ 3,225 (1) The carrying amounts of the senior secured term loans and notes and unsecured notes as of September 29, 2017, and December 30, 2016, include the remaining principal outstanding of $3,145 million and $3,336 million , respectively, plus $4 million and $3 million , respectively, related to the fair value of the interest rate swaps (see "Note 9–Derivative Instruments"), less unamortized debt discounts of $37 million and $46 million , respectively, less deferred debt issuance costs of $11 million and $9 million , respectively.

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 29, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive income (loss) were as follows: Foreign currency translation adjustments Unrecognized (loss) gain on derivative instruments Pension liability adjustments Total accumulated other comprehensive income (loss) (in millions) Balance at January 1, 2016 $ — $ (4 ) $ (4 ) $ (8 ) Other comprehensive (loss) income (8 ) 26 1 19 Taxes 1 (10 ) 2 (7 ) Reclassification from accumulated other comprehensive income (loss) — (2 ) (6 ) (8 ) Balance at December 30, 2016 (7 ) 10 (7 ) (4 ) Other comprehensive income (loss) 36 2 (1 ) 37 Taxes (2 ) 1 — (1 ) Reclassification from accumulated other comprehensive income (loss) — (1 ) — (1 ) Balance at September 29, 2017 $ 27 $ 12 $ (8 ) $ 31

Earnings Per Share (EPS) (Table

Earnings Per Share (EPS) (Tables)	9 Months Ended
	Sep. 29, 2017
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 29, September 30, September 29, September 30, (in millions) Basic weighted average number of shares outstanding 152 112 151 85 Dilutive common share equivalents—stock options and other stock awards 2 2 2 2 Diluted weighted average number of shares outstanding 154 114 153 87

Supplementary Cash Flow Infor36

Supplementary Cash Flow Information and Restricted Cash (Tables)	9 Months Ended
	Sep. 29, 2017
Supplemental Cash Flow Information [Abstract]
Schedule of Supplementary Cash Flow Information	Supplementary cash flow information, including non-cash activities, for the periods presented was as follows: Nine Months Ended September 29, September 30, (in millions) Supplementary cash flow information: Cash paid for interest $ 78 $ 53 Cash paid for income taxes, net of refunds 158 45 Non-cash investing activity: Stock issued for acquisition of the IS&GS Business $ — $ 2,938 Non-cash financing activity: Dividends declared and other $ 2 $ 20 Stock issued in lieu of cash dividends — 10 Capital lease obligation 6 — The following is a reconciliation of cash and cash equivalents, as reported within the condensed consolidated balance sheets, to the total cash, cash equivalents and restricted cash, as reported within the condensed consolidated statements of cash flows, as required by the adoption of ASU 2016-18 (see "Note 1–Basis of Presentation and Summary of Significant Accounting Polices"): September 29, December 30, (in millions) Cash and cash equivalents $ 287 $ 376 Restricted cash 74 20 Total cash, cash equivalents and restricted cash $ 361 $ 396

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information by Segment	The segment information for the periods presented, of which the prior period has been recast to reflect the Company's current reportable segment structure, was as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, (in millions) Revenues: Defense Solutions $ 1,201 $ 1,009 $ 3,738 $ 2,574 Civil 838 559 2,555 1,220 Health 464 300 1,361 674 Total revenues $ 2,503 $ 1,868 $ 7,654 $ 4,468 Operating income (loss): Defense Solutions $ 80 $ 93 $ 222 $ 224 Civil 50 38 170 80 Health 63 28 184 62 Corporate (42 ) (58 ) (118 ) (101 ) Total operating income $ 151 $ 101 $ 458 $ 265

Basis of Presentation and Sum38

Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Significant Accounting Policies [Line Items]
Share-based compensation, excess tax benefit, amount	$ (35)	$ (162)
Cash flows provided by operating activities of continuing operations	362	328
Increase in the total change in cash, cash equivalents and restricted cash	$ (35)	(163)
Leidos, Inc.
Significant Accounting Policies [Line Items]
Ownership interest (in percentage)	100.00%
Accounting Standards Update 2016-09, Excess Tax Benefit Component | New Accounting Pronouncement, Early Adoption, Effect
Significant Accounting Policies [Line Items]
Share-based compensation, excess tax benefit, amount	$ 54	44
Increase in the total change in cash, cash equivalents and restricted cash	$ 54	$ 44

Basis of Presentation and Sum39

Basis of Presentation and Summary of Significant Accounting Policies (Changes in estimates on contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Net favorable impact to income from continuing operations before taxes	$ 9	$ 4	$ 71	$ 17
Impact on diluted EPS from continuing operations attributable to Leidos common stockholders (usd per share)	$ 0.04	$ 0.02	$ 0.32	$ 0.12

Acquisitions (Textual) (Details

Acquisitions (Textual) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Aug. 16, 2016	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Adjustment to original purchase price allocation				$ 337
Amortization of Intangible Assets		$ 76	$ 27	212	$ 30
Depreciation		16	10	42	24
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Number of shares Lockheed Martin shareholders will receive from Leidos (in shares)	77
Special dividend declared (usd per share)	$ 13.64
Share price (in usd per share)	$ 51.69
Adjustment to original purchase price allocation		(37)		337
Fair value of non controlling interest	$ 13
Goodwill acquired, expected tax deductible amount	414
Intangible acquired, fair value	$ 1,194
Acquired intangible assets, weighted average useful life (in years)	8 years 7 months
Acquisition related costs			$ 27		$ 40
Programs and contract intangibles | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Intangible acquired, fair value	$ 1,011
Acquired intangible assets, weighted average useful life (in years)	9 years 8 months
Backlog | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Intangible acquired, fair value	$ 157
Acquired intangible assets, weighted average useful life (in years)	1 year 9 months
Software and technology | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Intangible acquired, fair value	$ 26
Acquired intangible assets, weighted average useful life (in years)	4 years 7 months
Selling, General and Administrative Expenses | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Amortization of Intangible Assets		6		(2)
Selling, General and Administrative Expenses and Cost of Revenue [Member] | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Depreciation		$ 7
Equity Losses of Non-consolidated Subsidiaries | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Cumulative adjustment				$ 7
Restricted Stock Units (RSUs) [Member] | Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Share issued as replacement for equity based awards	$ 23
Share-based compensation expense	$ 12

Acquisitions (Purchase price) (

Acquisitions (Purchase price) (Details) - USD ($) $ in Millions	Aug. 16, 2016	Sep. 29, 2017	Dec. 30, 2016	Jan. 01, 2016
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill		$ 4,976	$ 4,622	$ 1,207
Information Systems & Global Solutions Business of Lockheed Martin
Business Combination, Consideration Transferred [Abstract]
Value of common stock issued to Lockheed Martin stockholders	$ 2,929
Equity consideration for replacement awards	9
Working capital adjustments	81
Purchase price	3,019
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash	25
Receivables	938
Inventory, prepaid expenses and other current assets	73
Property, plant and equipment	87
Intangible assets	1,194
Other assets	58
Accounts payable and accrued liabilities	(733)
Accrued payroll and employee benefits	(186)
Long-term debt, current portion	(23)
Deferred tax liabilities	(328)
Long-term debt, net of current portion	(1,780)
Other long-term liabilities	(45)
Total identifiable net liabilities assumed	(720)
Non-controlling interest	(13)
Goodwill	3,752
Purchase price	$ 3,019

Acquisitions (Integration Costs

Acquisitions (Integration Costs) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Total acquisition and integration costs	$ 21	$ 44	$ 56	$ 68
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Acquisition costs	0	27	1	40
Integration costs	21	17	55	28
Total acquisition and integration costs	$ 21	$ 44	$ 56	$ 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	Sep. 30, 2016
Business Acquisition [Line Items]
Revenues	$ 2,607	$ 7,868
Income from continuing operations	$ 132	$ 291
Earnings per share:
Basic (usd per share)	$ 0.87	$ 1.91
Diluted (usd per share)	$ 0.86	$ 1.88
Leidos Holdings, Inc.
Business Acquisition [Line Items]
Income from continuing operations	$ 131	$ 286

Divestitures (Narrative) (Detai

Divestitures (Narrative) (Details) $ in Millions	Jul. 24, 2015USD ($)extension	Apr. 30, 2016USD ($)	Mar. 31, 2017USD ($)	Sep. 29, 2017USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Dec. 30, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from disposition of business				$ 0	$ 23
Liability in connection with issuance of a performance guarantee on a contract sold				$ 1,500			$ 1,427
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]
Disposal, consideration	$ 102
Proceeds from divestiture of interest	29
Amount of consideration received	$ 73
Proceeds from collections on promissory note			$ 6
Option to extend for one year period, number | extension	3
Period of extension (in years)	1 year
Note receivable, interest rate, stated (in percentage)	6.00%
Note receivable, interest rate, stated, if maturity is extended beyond July 24, 2017 (in percentage)	8.00%
Collection deferred						$ 4
Civil | 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 disposition of business		$ 23
Receivable, net		73
Other assets		3
Accounts payable and accrued liabilities		63
Liability in connection with issuance of a performance guarantee on a contract sold		6
Other Operating Income (Expense) | Civil | 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
Selling expense		$ 1

Restructuring Expenses (Details

Restructuring Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Restructuring expenses	$ 6	$ 5	$ 25	$ 6
Restructuring Due To IS&GS Acquisition
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			8
Restructuring expenses	6	5	25	5
Cash payments			(30)
Restructuring reserve, closing balance	3		$ 3
Period to settle restructuring liability, minimum (in years)			1 year
Restructuring Due To IS&GS Acquisition | Severance costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			$ 7
Restructuring expenses	2	4	14	4
Cash payments			(20)
Restructuring reserve, closing balance	1		1
Restructuring Due To IS&GS Acquisition | Lease termination expenses
Restructuring Reserve [Roll Forward]
Restructuring reserve, opening balance			1
Restructuring expenses	4	$ 1	11	$ 1
Cash payments			(10)
Restructuring reserve, closing balance	$ 2		$ 2

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Sep. 29, 2017	Dec. 30, 2016
Asset Derivatives | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Hedged instrument, face amount	$ 1,500,000,000
Asset Derivatives | Designated as Hedging Instrument | $450 million notes, due December 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Hedged instrument, face amount	$ 450,000,000
Stated interest rate (in percentage)	4.45%
Asset Derivatives | Designated as Hedging Instrument | $450 million notes, due December 2020 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (in percentage)	4.45%
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 31,000,000	$ 29,000,000
Fair value of notes receivable	91,000,000
Fair value of debt instrument	3,100,000,000	3,300,000,000
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	31,000,000	29,000,000
Fair value of debt instrument	$ 3,200,000,000	$ 3,300,000,000

Goodwill (Schedule of Changes i

Goodwill (Schedule of Changes in Goodwill by Segment) (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 29, 2017	Dec. 30, 2016
Goodwill [Roll Forward]
Beginning balance, Goodwill	$ 4,622	$ 1,207
Acquisition of the IS&GS Business		3,415
Adjustment to original purchase price allocation	337
Foreign currency translation adjustments	17
Ending balance, Goodwill	4,976	4,622
Defense Solutions
Goodwill [Roll Forward]
Beginning balance, Goodwill	1,954	792
Acquisition of the IS&GS Business		1,162
Adjustment to original purchase price allocation	94
Foreign currency translation adjustments	9
Ending balance, Goodwill	2,057	1,954
Civil
Goodwill [Roll Forward]
Beginning balance, Goodwill	1,731	244
Acquisition of the IS&GS Business		1,487
Adjustment to original purchase price allocation	259
Foreign currency translation adjustments	8
Ending balance, Goodwill	1,998	1,731
Health
Goodwill [Roll Forward]
Beginning balance, Goodwill	937	171
Acquisition of the IS&GS Business		766
Adjustment to original purchase price allocation	(16)
Foreign currency translation adjustments	0
Ending balance, Goodwill	$ 921	$ 937

Intangible Assets (Summary) (De

Intangible Assets (Summary) (Details) - USD ($) $ in Millions	Sep. 29, 2017	Dec. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 1,266	$ 1,717
Accumulated amortization	(345)	(132)
Net carrying value	921	1,585
Total intangible assets, Gross carrying value	1,270	1,721
Total intangible assets, Net carrying value	925	1,589
Programs and contract intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	1,013	1,450
Accumulated amortization	(145)	(25)
Net carrying value	868	1,425
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	158	200
Accumulated amortization	(134)	(54)
Net carrying value	24	146
Software and technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	89	61
Accumulated amortization	(61)	(48)
Net carrying value	28	13
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	6	6
Accumulated amortization	(5)	(5)
Net carrying value	1	1
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 4	$ 4

Intangible Assets (Amortization

Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions	Sep. 29, 2017	Dec. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017 (remainder of year)	$ 70
2,018	202
2,019	172
2,020	128
2,021	106
2022 and thereafter	243
Net carrying value	$ 921	$ 1,585

Intangible Assets (Narrative) (

Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 76	$ 27	$ 212	$ 30

Property, Plant and Equipment51

Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 16	$ 10	$ 42	$ 24
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	520		520		$ 541
Less: accumulated depreciation and amortization	(308)		(308)		(282)
Property, plant and equipment, net	212		212		259
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	195		195		172
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	166		166		161
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	54		54		104
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35		35		35
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	49		49		57
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 21		$ 21		$ 12

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 30, 2016	Aug. 31, 2016
Derivative [Line Items]
Effective portion recognized in other comprehensive income	$ 3,000,000	$ (7,000,000)	$ 0	$ (7,000,000)
Effective portion reclassified from accumulated other comprehensive income (loss) to earnings	0	1,000,000	1,000,000	1,000,000
Ineffective portion recognized in earnings	(1,000,000)	$ 0	0	$ 0
Gains expected to be reclassified in the next 12 months	4,000,000		4,000,000
Asset Derivatives | Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount	1,500,000,000		1,500,000,000
Asset Derivatives | Designated as Hedging Instrument | $450 million notes, due December 2020
Derivative [Line Items]
Hedged instrument, face amount	$ 450,000,000		$ 450,000,000
Stated interest rate (in percentage)	4.45%		4.45%
Asset Derivatives | Other long-term liabilities | Designated as Hedging Instrument | $450 million notes, due December 2020
Derivative [Line Items]
Hedged instrument, face amount	$ 450,000,000		$ 450,000,000
Stated interest rate (in percentage)	4.45%		4.45%
Fair Value Hedging | Asset Derivatives | Other assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative asset	$ 4,000,000		$ 4,000,000		$ 3,000,000
Cash Flow Hedging | Other assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative asset	31,000,000		31,000,000		29,000,000
Cash Flow Hedging | Asset Derivatives | Other assets | Designated as Hedging Instrument
Derivative [Line Items]
Derivative asset	27,000,000		27,000,000		$ 26,000,000
Secured Debt | Interest Rate Swap, Maturity Date December Twenty Twenty One [Member] | Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount						$ 1,200,000,000
Stated interest rate (in percentage)						1.08%
Secured Debt | Interest Rate Swap, Maturity Date August Twenty Twenty Two [Member] | Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount	$ 300,000,000		$ 300,000,000
Stated interest rate (in percentage)	1.66%		1.66%

Debt (Summary of debt) (Detail)

Debt (Summary of debt) (Detail) - USD ($)	Sep. 29, 2017	Aug. 31, 2017	Feb. 28, 2017	Dec. 30, 2016
Debt Instrument [Line Items]
Capital leases due on various dates through fiscal 2020	$ 6,000,000			$ 3,000,000
Total long-term debt	3,107,000,000			3,287,000,000
Less: current portion	64,000,000			62,000,000
Total long-term debt, net of current portion	3,043,000,000			3,225,000,000
$450 million notes, due December 2020
Debt Instrument [Line Items]
Senior secured notes:	$ 452,000,000			451,000,000
Stated interest rate (in percentage)	4.45%
Effective interest rate	4.53%
$300 million notes, due 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%
$400 million Term Loan A, due August 2019
Debt Instrument [Line Items]
Senior secured term loans:	$ 0			123,000,000
Stated interest rate (in percentage)	3.00%
Effective interest rate	0.00%
$690 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Senior secured term loans:	$ 652,000,000			676,000,000
Stated interest rate (in percentage)	3.00%
Effective interest rate	3.49%
Senior unsecured notes, face amount	$ 690,000,000	$ 690,000,000
$310 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Senior secured term loans:	$ 274,000,000			304,000,000
Stated interest rate (in percentage)	3.00%
Effective interest rate	3.48%
Senior unsecured notes, face amount	$ 310,000,000
$1,131 million Term Loan B, due August 2023
Debt Instrument [Line Items]
Senior secured term loans:	$ 1,103,000,000			1,110,000,000
Stated interest rate (in percentage)	3.25%
Effective interest rate	3.61%
Senior unsecured notes:
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%
$300 million notes, due 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)	5.55%
Senior Notes | $450 million notes, due December 2020
Debt Instrument [Line Items]
Senior unsecured notes, face amount	$ 450,000,000
Senior Notes | $300 million notes, due December 2040
Debt Instrument [Line Items]
Senior unsecured notes, face amount	300,000,000
Secured Debt | $400 million Term Loan A, due August 2019
Debt Instrument [Line Items]
Senior unsecured notes, face amount	400,000,000
Secured Debt | $310 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Senior unsecured notes, face amount		$ 310,000,000
Secured Debt | $1,131 million Term Loan B, due August 2023
Debt Instrument [Line Items]
Senior unsecured notes, face amount	1,131,000,000		$ 1,100,000,000
Unsecured Debt | Senior unsecured notes:
Debt Instrument [Line Items]
Senior unsecured notes, face amount	250,000,000
Unsecured Debt | $300 million notes, due July 2033
Debt Instrument [Line Items]
Senior unsecured notes, face amount	$ 300,000,000

Debt (Senior Secured Notes and

Debt (Senior Secured Notes and Senior Secured Term Loans) (Detail) - USD ($)	Aug. 31, 2017	Feb. 28, 2017	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 30, 2016
Debt Instrument [Line Items]
Long-term debt			$ 3,145,000,000		$ 3,145,000,000		$ 3,336,000,000
Unamortized discount			37,000,000		37,000,000		46,000,000
Debt issuance costs			11,000,000		11,000,000		9,000,000
Debt amortization expense			3,000,000	$ 3,000,000	10,000,000	$ 3,000,000
$690 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Note payable, face amount	$ 690,000,000		690,000,000		690,000,000
$310 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Note payable, face amount			310,000,000		310,000,000
Secured Debt
Debt Instrument [Line Items]
Debt instrument, decrease in basis points	25.00%
Repayments of debt			105,000,000		130,000,000
Secured Debt | Term Loan A
Debt Instrument [Line Items]
Debt instrument, term, extension	1 year
Debt Instrument, Increase in Quarterly Payment, Extension	1 year
Secured Debt | $1,131 million Term Loan B, due August 2023
Debt Instrument [Line Items]
Note payable, face amount		$ 1,100,000,000	1,131,000,000		1,131,000,000
Debt instrument, decrease in basis points		50.00%
Variable rate (in percentage)		2.25%
Secured Debt | $310 million Term Loan A, due August 2022
Debt Instrument [Line Items]
Note payable, face amount	$ 310,000,000
Secured Debt | $400 million Term Loan A, due August 2019
Debt Instrument [Line Items]
Note payable, face amount			$ 400,000,000		400,000,000
London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)			1.75%
London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan B
Debt Instrument [Line Items]
Variable rate (in percentage)			2.00%
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)			1.50%
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt | Term Loan A
Debt Instrument [Line Items]
Variable rate (in percentage)			2.00%
Fair Value Hedging | Designated as Hedging Instrument | Asset Derivatives
Debt Instrument [Line Items]
Derivative asset			$ 4,000,000		$ 4,000,000		$ 3,000,000

Debt (Revolving Credit Facility

Debt (Revolving Credit Facility) (Detail) - USD ($)	Sep. 29, 2017	Dec. 30, 2016
Debt Instrument [Line Items]
Amount outstanding	$ 0	$ 0
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity	$ 750,000,000

Accumulated Other Comprehensi56

Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Loss) (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 29, 2017	Dec. 30, 2016
AOCI, Net of Tax [Roll Forward]
Balance, value	$ 3,135
Other comprehensive income (loss)	37	$ 19
Taxes	(1)	(7)
Reclassification from accumulated other comprehensive income (loss)	(1)	(8)
Balance, value	3,294	3,135
Total accumulated other comprehensive income (loss)
AOCI, Net of Tax [Roll Forward]
Balance, value	(4)	(8)
Balance, value	31	(4)
Foreign currency translation adjustments
AOCI, Net of Tax [Roll Forward]
Balance, value	(7)	0
Other comprehensive income (loss)	36	(8)
Taxes	(2)	1
Reclassification from accumulated other comprehensive income (loss)	0	0
Balance, value	27	(7)
Unrecognized (loss) gain on derivative instruments
AOCI, Net of Tax [Roll Forward]
Balance, value	10	(4)
Other comprehensive income (loss)	2	26
Taxes	1	(10)
Reclassification from accumulated other comprehensive income (loss)	(1)	(2)
Balance, value	12	10
Pension liability adjustments
AOCI, Net of Tax [Roll Forward]
Balance, value	(7)	(4)
Other comprehensive income (loss)	(1)	1
Taxes	0	2
Reclassification from accumulated other comprehensive income (loss)	0	(6)
Balance, value	$ (8)	$ (7)

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. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding (shares)	152	112	151	85
Dilutive common share equivalents-stock options and other stock awards (in shares)	2	2	2	2
Diluted weighted average number of shares outstanding (shares)	154	114	153	87

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Effective Income Tax Rate (percentage)	31.90%	(22.70%)	30.10%	12.70%

Supplementary Cash Flow Infor59

Supplementary Cash Flow Information and Restricted Cash (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Dec. 30, 2016	Jan. 01, 2016
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 78	$ 53
Cash paid for income taxes, net of refunds	158	45
Stock issued for acquisition of the IS&GS Business	0	2,938
Non-cash financing activity:
Dividends declared and other	2	20
Stock issued in lieu of cash dividends	0	10
Capital lease obligation	6	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	376
Restricted cash	74		$ 20
Total cash, cash equivalents and restricted cash	$ 361	$ 510	$ 396	$ 673

Business Segments (Schedule of

Business Segments (Schedule of Segment Reporting Information by Segment) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues	$ 2,503	$ 1,868	$ 7,654	$ 4,468
Operating income (loss)	151	101	458	265
Operating Segments | Defense Solutions
Segment Reporting Information [Line Items]
Revenues	1,201	1,009	3,738	2,574
Operating income (loss)	80	93	222	224
Operating Segments | Civil
Segment Reporting Information [Line Items]
Revenues	838	559	2,555	1,220
Operating income (loss)	50	38	170	80
Operating Segments | Health
Segment Reporting Information [Line Items]
Revenues	464	300	1,361	674
Operating income (loss)	63	28	184	62
Corporate
Segment Reporting Information [Line Items]
Operating income (loss)	$ (42)	$ (58)	$ (118)	$ (101)

Contingencies (Additional Infor

Contingencies (Additional Information) (Detail)

Oct. 13, 2017USD ($)

Sep. 30, 2016USD ($)

Feb. 03, 2016USD ($)patent

Nov. 30, 2012USD ($)patent

Sep. 29, 2017USD ($)

Apr. 30, 2012LegalMatter

Sep. 29, 2017USD ($)

Apr. 13, 2017USD ($)

Dec. 30, 2016USD ($)

Aug. 16, 2016USD ($)

Nov. 10, 2015USD ($)

Jul. 31, 2013USD ($)

Legal Proceedings [Line Items]

Amount outstanding

$ 0

$ 0

$ 0

Decrease in reserve

11,000,000

Securities Class Actions

Legal Proceedings [Line Items]

Number of lawsuits | LegalMatter

3

Number of lawsuits, withdrawn | LegalMatter

1

Number of lawsuits, consolidated | LegalMatter

2

Greek Government Contract

Legal Proceedings [Line Items]

Arbitral award

$ 63,000,000

$ 46,000,000

MSA Venture

Legal Proceedings [Line Items]

Estimate of possible loss

$ 64,000,000

$ 64,000,000

Contingency accrual

39,000,000

$ 39,000,000

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%

Virnet X Inc

Legal Proceedings [Line Items]

Gain contingency, patents found infringed upon, number | patent

4

2

Amount awarded to other party

$ 302,000,000

$ 626,000,000

$ 368,000,000

Leidos

Legal Proceedings [Line Items]

Litigation settlement, percentage of total (percentage)

25.00%

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

$ 1,000,000

$ 1,000,000

Subsequent Event | Virnet X Inc

Legal Proceedings [Line Items]

Amount awarded to other party

$ 439,000,000

Amount awarded to other party, pre interest

343,000,000

Awarded to the other party, interest and legal fees

$ 96,000,000

Commitments (Additional Informa

Commitments (Additional Information) (Detail) $ in Millions	9 Months Ended
	Sep. 29, 2017USD ($)
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Amount outstanding	$ 92
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds	$ 155
Standby Letters of Credit and Surety Bonds [Member]
Other Commitments And Contingencies [Line Items]
Debt Instrument, Term	4 years