Leidos Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2016 Results

 

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
(in millions, except per share amounts)

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

Management believes that these non-GAAP measures provide another measure of the Company's results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The Company's computation of its non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

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

  • Acquisition and integration costs - Represents costs related to the acquisition and integration of the IS&GS business.
  • Amortization of acquired intangible assets - Represents the amortization expense associated with acquired intangible assets.
  • Restructuring expenses - Represents costs associated with lease termination, severance, and costs related to the Company's acquisition of IS&GS and the September 2013 spin-off of its former technical services.
  • Gains and losses on disposal of assets and businesses - Represents the gains or losses on certain sales of real estate and businesses.
  • Asset impairment charges - Represents impairments of long-lived intangible and tangible assets.

Non-GAAP income from continuing operations is computed by excluding the discrete items as identified above from income from continuing operations and adjusting income tax expense for the effect of such exclusions.

Non-GAAP operating margin from continuing operations is computed by adding back the discrete items as identified above from GAAP operating income from continuing operations and dividing by GAAP revenue.

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

 

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


The following tables present the reconciliation of the non-GAAP measures identified above to the most directly comparable GAAP measures:




Quarter Ended December 30, 2016



As reported


Asset
impairment
charges


Acquisition
and
integration
costs


Amortization
of intangibles


Restructuring
expenses


Non-GAAP
results

Revenue


$

2,575



$



$



$



$



$

2,575


Cost of revenues


2,266











2,266


Selling, general and administrative 
     expenses1


133







54





79


Asset impairment charges


4



4










Acquisition and integration costs


22





22








Restructuring expenses


8









8




Equity earnings of non-consolidated 
     subsidiaries


(10)











(10)


Operating income


152



(4)



(22)



(54)



(8)



240


Non-operating expense, net


(47)











(47)


Income from continuing operations, 
     before income taxes


105



(4)



(22)



(54)



(8)



193


Income tax expense 2


(45)



2



6



21



3



(77)


Income from continuing operations


60



(2)



(16)



(33)



(5)



116


Less: net income attributable to 
     non-controlling interest, net of 
     taxes


1











1


Net income attributable to Leidos 
     common stockholders


$

59



$

(2)



$

(16)



$

(33)



$

(5)



$

115















Diluted EPS from continuing 
     operations attributable to Leidos 
     common stockholders


$

0.39



$

(0.01)



$

(0.10)



$

(0.22)



$

(0.03)



$

0.75


Diluted shares


153



153



153



153



153



153





















(1) Selling, general and administrative expenses includes bad debt expense of $2 million.

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


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15  Next Page »



Review Article Be the first to review this article
Featured Video
Jobs
Assistant Professor in Applied GIS for University of San Diego at San Diego, California
GIS Specialist for Schneider Geospatial at Indianapolis, Indiana
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
Senior Highway Engineer for RS&H at Jacksonville, Florida
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Upcoming Events
HxGN LIVE GeoSummit 2021 at Virtual Event - Sep 21 - 23, 2021
INTERGEO 2021 at Hannover Germany - Sep 21 - 23, 2021
Automotive LIDAR 2021 at Online Only - Sep 21 - 23, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise