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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 30, 2015	Mar. 16, 2015	Aug. 01, 2014
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jan. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	LDOS
Entity Registrant Name	Leidos Holdings, Inc.
Entity Central Index Key	0001336920
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		74,124,812
Entity Public Float			$ 2,701,960,753
Leidos, Inc.
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jan. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Entity Registrant Name	LEIDOS, INC.
Entity Central Index Key	0000353394
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		5,000

Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Current assets:
Cash and cash equivalents	$ 443	$ 430
Receivables, net	896	1,082
Inventory, prepaid expenses and other current assets	273	256
Assets of discontinued operations	6	39
Total current assets	1,618	1,807
Property, plant and equipment, net	308	482
Intangible assets, net	37	93
Goodwill	1,207	1,693
Deferred income taxes	14	15
Other assets	97	72
Total assets	3,281	4,162
Current liabilities:
Accounts payable and accrued liabilities	675	716
Accrued payroll and employee benefits	264	285
Notes payable and long-term debt, current portion	2	2
Liabilities of discontinued operations	10	6
Total current liabilities	951	1,009
Notes payable and long-term debt, net of current portion	1,164	1,331
Other long-term liabilities	168	227
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.0001 par value,10 million shares authorized and no shares issued and outstanding at January 30, 2015 and January 31, 2014	0	0
Common stock	0	0
Additional paid-in capital	1,433	1,576
Accumulated earnings	(424)	25
Accumulated other comprehensive loss	(11)	(6)
Total stockholder's equity	998	1,595
Total liabilities and stockholders' equity	3,281	4,162
Leidos, Inc.
Current assets:
Cash and cash equivalents	443	430
Receivables, net	896	1,082
Inventory, prepaid expenses and other current assets	273	256
Assets of discontinued operations	6	39
Total current assets	1,618	1,807
Property, plant and equipment, net	308	482
Intangible assets, net	37	93
Goodwill	1,207	1,693
Deferred income taxes	14	15
Other assets	97	72
Note receivable from Leidos Holdings, Inc. (Note 10)	1,412	1,137
Total assets	4,693	5,299
Current liabilities:
Accounts payable and accrued liabilities	675	716
Accrued payroll and employee benefits	264	285
Notes payable and long-term debt, current portion	2	2
Liabilities of discontinued operations	10	6
Total current liabilities	951	1,009
Notes payable and long-term debt, net of current portion	1,164	1,331
Other long-term liabilities	168	227
Commitments and contingencies
Stockholders' equity:
Common stock	0	0
Additional paid-in capital	207	207
Accumulated earnings	2,214	2,531
Accumulated other comprehensive loss	(11)	(6)
Total stockholder's equity	2,410	2,732
Total liabilities and stockholders' equity	$ 4,693	$ 5,299

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 30, 2015	Jan. 31, 2014
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	74,000,000	80,000,000
Common stock, shares outstanding	74,000,000	80,000,000
Leidos, Inc.
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000	10,000
Common stock, shares issued	5,000	5,000
Common stock, shares outstanding	5,000	5,000

Consolidated Statements Of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements Of Income - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Revenues	$ 5,063	$ 5,755	$ 6,449
Costs and expenses:
Cost of revenues	4,392	4,992	5,548
Selling, general and administrative expenses	310	440	467
Bad debt expense	5	44	2
Goodwill impairment charges	486	0	0
Asset impairment charges	81	51	0
Separation transaction and restructuring expenses	3	65	11
Operating (loss) income	(214)	163	421
Non-operating income (expense):
Interest income	1	15	9
Interest expense	(75)	(82)	(93)
Other income (expense), net	5	(8)	8
(Loss) income from continuing operations before income taxes	(283)	88	345
Income tax expense	(47)	(4)	(22)
(Loss) income from continuing operations	(330)	84	323
Discontinued operations (Note 2):
(Loss) income from discontinued operations before income taxes	(13)	140	330
Income tax benefit (expense)	20	(60)	(128)
Income from discontinued operations	7	80	202
Net (loss) income	$ (323)	$ 164	$ 525
Basic:
(Loss) income from continuing operations	$ (4.46)	$ 0.98	$ 3.81
Income from discontinued operations	0.10	0.96	2.38
Basic earnings (loss) per share (usd per share)	(4.36)	1.94	6.19
Diluted:
(Loss) income from continuing operations	(4.46)	0.98	3.81
Income from discontinued operations	0.10	0.96	2.38
Diluted earnings (loss) per share (usd per share)	$ (4.36)	$ 1.94	$ 6.19
Leidos, Inc.
Revenues	$ 5,063	$ 5,755	$ 6,449
Costs and expenses:
Cost of revenues	4,392	4,992	5,548
Selling, general and administrative expenses	310	440	467
Bad debt expense	5	44	2
Goodwill impairment charges	486	0	0
Asset impairment charges	81	51	0
Separation transaction and restructuring expenses	3	65	11
Operating (loss) income	(214)	163	421
Non-operating income (expense):
Interest income	11	19	10
Interest expense	(75)	(82)	(93)
Other income (expense), net	5	(8)	8
(Loss) income from continuing operations before income taxes	(273)	92	346
Income tax expense	(51)	(6)	(22)
(Loss) income from continuing operations	(324)	86	324
Discontinued operations (Note 2):
(Loss) income from discontinued operations before income taxes	(13)	140	330
Income tax benefit (expense)	20	(60)	(128)
Income from discontinued operations	7	80	202
Net (loss) income	$ (317)	$ 166	$ 526

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Net (loss) income	$ (323)	$ 164	$ 525
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(2)	0	(1)
Deferred taxes	1	0	1
Foreign currency translation adjustments, net of tax	(1)	0	0
Reclassification of realized loss on settled derivative instruments to net income	0	0	0
Deferred taxes	0	0	0
Reclassification of realized loss on settled derivative instruments to net income, net of tax	0	0	0
Pension liability adjustments	(7)	(6)	14
Deferred taxes	3	2	(5)
Pension liability adjustments, net of tax	(4)	(4)	9
Total other comprehensive (loss) income, net of tax	(5)	(4)	9
Comprehensive (loss) income	(328)	160	534
Leidos, Inc.
Net (loss) income	(317)	166	526
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(2)	0	(1)
Deferred taxes	1	0	1
Foreign currency translation adjustments, net of tax	(1)	0	0
Reclassification of realized loss on settled derivative instruments to net income	0	0	0
Deferred taxes	0	0	0
Reclassification of realized loss on settled derivative instruments to net income, net of tax	0	0	0
Pension liability adjustments	(7)	(6)	14
Deferred taxes	3	2	(5)
Pension liability adjustments, net of tax	(4)	(4)	9
Total other comprehensive (loss) income, net of tax	(5)	(4)	9
Comprehensive (loss) income	$ (322)	$ 162	$ 535

Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions	Total	Shares of Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Leidos, Inc.	Leidos, Inc. Shares of Common stock	Leidos, Inc. Additional paid-in capital	Leidos, Inc. Retained earnings	Leidos, Inc. Accumulated other comprehensive loss
Balance, value at Jan. 31, 2012	$ 2,181		$ 2,028	$ 164	$ (11)	$ 2,061		$ 233	$ 1,839	$ (11)
Balance, shares at Jan. 31, 2012		85,000,000					5,000
Net (loss) income	525					526			526
Other comprehensive income (loss), net of tax	9				9	9				9
Issuances of stock, shares		1,000,000
Stock Issued During Period, Value, New Issues Net of Cancellations	24		24
Repurchases of stock, value	(22)		(10)	(12)
Dividends, Common Stock	167			167
Adjustments for income tax benefits from stock-based compensation	(16)		(16)
Stock-based compensation (including discontinued operations of $21 million in 2014 and $31 million in 2013)	84		84
Balance, value at Jan. 31, 2013	2,618		2,110	510	(2)	2,596		233	2,365	(2)
Balance, shares at Jan. 31, 2013		86,000,000					5,000
Net (loss) income	164					166			166
Other comprehensive income (loss), net of tax	(4)				(4)	(4)				(4)
Stock Issued During Period, Value, New Issues Net of Cancellations	33		33
Repurchases of stock, value	(319)		(165)	(154)
Dividends, Common Stock	$ 139			139
Repurchases of stock, shares	(5,600,000)	(6,000,000)
Special cash dividend of $4.00 per share	$ (356)			(356)
Adjustments for income tax benefits from stock-based compensation	(11)		(11)
Stock-based compensation (including discontinued operations of $21 million in 2014 and $31 million in 2013)	76		76
Dividend received, net of contribution paid, from the spin-off of New SAIC	269		269
Spin-off of New SAIC	(736)		(736)			(26)		(26)
Balance, value at Jan. 31, 2014	1,595		1,576	25	(6)	2,732		207	2,531	(6)
Balance, shares at Jan. 31, 2014		80,000,000					5,000
Net (loss) income	(323)			(323)		(317)			(317)
Other comprehensive income (loss), net of tax	(5)				(5)	(5)				(5)
Issuances of stock, shares		1,000,000
Stock Issued During Period, Value, New Issues Net of Cancellations	1		1
Repurchases of stock, value	(215)		(178)	(37)
Dividends, Common Stock	$ 89			89
Repurchases of stock, shares	(6,300,000)	(7,000,000)
Adjustments for income tax benefits from stock-based compensation	$ (6)		(6)
Stock-based compensation (including discontinued operations of $21 million in 2014 and $31 million in 2013)	42		42
Other	(2)		(2)
Balance, value at Jan. 30, 2015	$ 998		$ 1,433	$ (424)	$ (11)	$ 2,410		$ 207	$ 2,214	$ (11)
Balance, shares at Jan. 30, 2015		74,000,000					5,000

Consolidated Statements Of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Cash dividend per share	$ 1.28	$ 1.60	$ 1.92
Special cash dividend	$ 4
SAIC
Stock based compensation from discontinued operations		$ 21
Disposals of FY 2013
Stock based compensation from discontinued operations			$ 31

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities of continuing operations:
Net (loss) income	$ (323)	$ 164	$ 525
Income from discontinued operations	(7)	(80)	(202)
Adjustments to reconcile net (loss) income to net cash provided by continuing operations:
Depreciation and amortization	62	80	90
Stock-based compensation	42	55	53
Goodwill impairment charges	486	0	0
Asset impairment charges	81	51	0
Bad debt expense	5	44	2
Restructuring charges, net	3	17	2
Other	0	2	(2)
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	162	(69)	218
Inventory, prepaid expenses and other current assets	(12)	44	5
Deferred income taxes	56	(38)	67
Other assets	2	18	(9)
Accounts payable and accrued liabilities	(43)	(87)	(694)
Accrued payroll and employee benefits	(21)	(66)	27
Income taxes receivable/payable	(87)	54	(58)
Other long-term liabilities	(10)	2	0
Total cash flows provided by operating activities of continuing operations	396	191	24
Cash flows from investing activities of continuing operations:
Proceeds on obligations of Leidos Holdings, Inc.			0
Payments on obligations of Leidos Holdings, Inc.			0
Expenditures for property, plant and equipment	(29)	(53)	(39)
Acquisitions of businesses, net of cash acquired of $9 million in fiscal 2013	0	(3)	(483)
Net proceeds for purchase price adjustments related to prior year acquisitions	0	0	1
Proceeds from sale of assets	0	65	2
Proceeds from U.S. Treasury cash grant	80	0	0
Net proceeds of cost method investments	0	12	0
Dividend received from the separation of New SAIC	0	295	0
Contribution paid related to the separation of New SAIC	0	(26)	0
Other	0	7	0
Total cash flows provided by (used in) investing activities of continuing operations	51	297	(519)
Cash flows from financing activities of continuing operations:
Payments on notes payable and long-term debt	(177)	(152)	(550)
Payments for deferred financing costs	0	(5)	0
Payment from New SAIC for deferred financing costs	0	5	0
Proceeds from real estate financing transaction	0	38	0
Proceeds from debt issuance	0	500	0
Distribution of debt to New SAIC	0	(500)	0
Sales of stock and exercises of stock options	7	13	19
Repurchases of stock	(215)	(319)	(22)
Dividend payments	(95)	(477)	(165)
Other	2	3	0
Total cash flows used in financing activities of continuing operations	(478)	(894)	(718)
Decrease in cash and cash equivalents from continuing operations	(31)	(406)	(1,213)
Cash flows from discontinued operations:
Increase in cash and cash equivalents from discontinued operations	15	118	320
Cash provided by operating activities of discontinued operations	29	(17)	42
Cash used in financing activities of discontinued operations	0	0	(4)
Cash used in financing activities of discontinued operations	44	101	358
Total increase (decrease) in cash and cash equivalents	13	(305)	(855)
Cash and cash equivalents at beginning of year	430	735	1,590
Cash and cash equivalents at end of year	443	430	735
Leidos, Inc.
Cash flows from operating activities of continuing operations:
Net (loss) income	(317)	166	526
Income from discontinued operations	(7)	(80)	(202)
Adjustments to reconcile net (loss) income to net cash provided by continuing operations:
Depreciation and amortization	62	80	90
Stock-based compensation	42	55	53
Goodwill impairment charges	486	0	0
Asset impairment charges	81	51	0
Bad debt expense	5	44	2
Restructuring charges, net	3	17	2
Other	(6)	0	(3)
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	162	(69)	218
Inventory, prepaid expenses and other current assets	(12)	44	5
Deferred income taxes	56	(38)	67
Other assets	2	18	(9)
Accounts payable and accrued liabilities	(43)	(87)	(694)
Accrued payroll and employee benefits	(21)	(66)	27
Income taxes receivable/payable	(87)	54	(58)
Other long-term liabilities	(10)	2	0
Total cash flows provided by operating activities of continuing operations	396	191	24
Cash flows from investing activities of continuing operations:
Proceeds on obligations of Leidos Holdings, Inc.	156	13
Payments on obligations of Leidos Holdings, Inc.	(457)	(501)
Expenditures for property, plant and equipment	(29)	(53)	(39)
Acquisitions of businesses, net of cash acquired of $9 million in fiscal 2013	0	(3)	(483)
Net proceeds for purchase price adjustments related to prior year acquisitions	0	0	1
Proceeds from sale of assets	0	65	2
Proceeds from U.S. Treasury cash grant	80	0	0
Net proceeds of cost method investments	0	12	0
Contribution paid related to the separation of New SAIC	0	(26)	0
Other	0	7	0
Total cash flows provided by (used in) investing activities of continuing operations	(250)	(486)	(519)
Cash flows from financing activities of continuing operations:
Proceeds from note with SAIC, Inc.	0	0	244
Payments on note with SAIC, Inc.	0	0	(411)
Payments on notes payable and long-term debt	(177)	(152)	(550)
Payments for deferred financing costs	0	(5)	0
Payment from New SAIC for deferred financing costs	0	5	0
Proceeds from real estate financing transaction	0	38	0
Dividend payments	0	0	(1)
Other	0	3	0
Total cash flows used in financing activities of continuing operations	(177)	(111)	(718)
Decrease in cash and cash equivalents from continuing operations	(31)	(406)	(1,213)
Cash flows from discontinued operations:
Increase in cash and cash equivalents from discontinued operations	15	118	320
Cash provided by operating activities of discontinued operations	29	(17)	42
Cash used in financing activities of discontinued operations	0	0	(4)
Cash used in financing activities of discontinued operations	44	101	358
Total increase (decrease) in cash and cash equivalents	13	(305)	(855)
Cash and cash equivalents at beginning of year	430	735	1,590
Cash and cash equivalents at end of year	$ 443	$ 430	$ 735

Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Cash acquired in acquisitions	$ 0	$ 0	$ 9
Leidos, Inc.
Cash acquired in acquisitions	$ 0	$ 0	$ 9

Summary of Significant Accounting Policies

12 Months Ended

Jan. 30, 2015

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies:

Nature of Operations and Basis of Presentation

Leidos Holdings, Inc. (“Leidos”) is a holding company whose direct 100%-owned subsidiary is Leidos, Inc., an applied technology company focused on delivering solutions and services that leverage expertise in the national security, health and engineering markets. Leidos, Inc. provides these solutions and services to government and commercial customers, both domestically and internationally. These customers include agencies of the U.S. Department of Defense ("DoD"), the intelligence community, the U.S. Department of Homeland Security ("DHS"), and other U.S. Government civil agencies, state and local government agencies and foreign governments. Unless indicated otherwise, references to the "Company," "we," "us" and "our" refer collectively to Leidos Holdings, Inc., Leidos, Inc., and its consolidated subsidiaries.

On September 27, 2013 (the "Distribution Date"), Leidos completed the spin-off of its technical services and enterprise information technology services business into an independent, publicly traded company named Science Applications International Corporation (“New SAIC”). The separation was effected through a tax-free distribution to Leidos' stockholders of 100% of the shares of New SAIC's common stock. On the Distribution Date, New SAIC's common stock was distributed, on a pro rata basis, to Leidos' stockholders of record as of the close of business on September 19, 2013, the record date. Each holder of Leidos common stock received one share of New SAIC common stock for every seven shares of Leidos common stock held on the record date. Prior to the Distribution Date, Leidos Holdings, Inc. was named SAIC, Inc. and Leidos, Inc. was named Science Applications International Corporation.

As a result of the spin-off, the assets, liabilities, results of operations and cash flows of New SAIC have been classified as discontinued operations for all periods presented. References to financial data are to the Company’s continuing operations, unless otherwise noted. See Note 2-Dispositions for further information.

Immediately following the spin-off, Leidos effectuated a one-for-four reverse stock split of its shares of common stock, so that every four shares of Leidos common stock issued and outstanding were combined and converted into one share of Leidos common stock. Each reference to the number of shares outstanding or per share amounts has been adjusted to reflect the reverse stock split for all periods presented.

The consolidated financial statements of Leidos include the accounts of its majority-owned and 100%-owned subsidiaries, including Leidos, Inc. The consolidated financial statements of Leidos, Inc. include the accounts of its majority-owned and 100%-owned subsidiaries. Leidos does not have separate operations, assets or liabilities independent of Leidos, Inc., except for a note with Leidos, Inc. (the “related party note”), on which interest is recognized. From time to time, Leidos issues stock to employees of Leidos, Inc. and its subsidiaries, which is reflected in Leidos' Consolidated Statements of Stockholders’ Equity and results in an increase to the related party note (see Note 10). All intercompany transactions and accounts have been eliminated in consolidation.

These Combined Notes to Consolidated Financial Statements apply to both Leidos and Leidos, Inc. As Leidos consolidates Leidos, Inc. for financial statement purposes, disclosures that relate to activities of Leidos, Inc. also apply to Leidos.

Reporting Periods

Unless otherwise noted, references to fiscal years are to fiscal years ended the Friday closest to January 31, for fiscal 2014 or later periods or fiscal year ended January 31, for fiscal 2013. Effective in fiscal 2014, the Company changed its fiscal year to a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks. Fiscal 2015 began on February 1, 2014 and ended on January 30, 2015. The Company does not believe that the change in its fiscal year has a material effect on the comparability of the periods presented.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (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 allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, estimated profitability of long-term contracts, pension benefits, stock-based compensation expense, contingencies and litigation. Estimates and assumptions have been prepared by management on the basis of the most current and best available information at the time of estimation and actual results could differ from those estimates. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation.

Separation Transaction and Restructuring Expenses

In anticipation of the spin-off of New SAIC from the Company, the Company initiated an overall spin-off program to align the Company’s cost structure for post-spin-off. In fiscal 2014 the Company reduced headcount, which resulted in severance costs, and reduced its real estate footprint by vacating facilities that are not necessary for its future requirements, which resulted in lease termination and facility consolidation expenses.

Separation transaction and restructuring expenses related to New SAIC, exclusive of any tax impacts, of $55 million for the year ended January 31, 2014, and $28 million for the year ended January 31, 2013, respectively, were reclassified as discontinued operations.

The separation transaction and restructuring expenses for continuing operations for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Strategic advisory services	$	—		$	7		$	1
Legal and accounting services	—			2			—
Lease termination and facility consolidation expenses	3			46			2
Severance costs	—			10			8
Separation transaction and restructuring expenses in operating (loss) income	3			65			11
Less: income tax benefit	(1		)	(25		)	(4		)
Separation transaction and restructuring expenses, net of tax	$	2		$	40		$	7

For the years ended January 30, 2015, January 31, 2014, and January 31, 2013, all separation transaction and restructuring expenses for continuing operations were in the Corporate and Other segment. The Company does not expect to incur significant additional other separation transaction and restructuring expenses in future fiscal years related to the spin-off transaction.

The following table represents the restructuring liability balance as of January 30, 2015 and summarizes the changes during the period attributable to costs incurred and charged to expense, costs paid or otherwise settled, and any adjustments to the liability:



	Severance Costs			Lease Termination and Facility Consolidation Expenses			Total
	(in millions)
Balance as of January 31, 2013	$	8		$	2		$	10
Charges	10			41			51
Cash payments	(17		)	(23		)	(40		)
Balance as of January 31, 2014	$	1		$	20		$	21
Charges	—			3			3
Cash payments	(1		)	(12		)	(13		)
Balance as of January 30, 2015	$	—		$	11		$	11

Operating Cycle

The Company’s operating cycle for long-term contracts may be greater than one year and is measured by the average time intervening between the inception and the completion of those contracts. Contract-related assets and liabilities are classified as current assets and current liabilities.

Variable Interest Entities

The Company occasionally forms joint ventures and/or enters into arrangements with special purpose limited liability companies for the purpose of bidding and executing on specific projects. The Company analyzes each such arrangement to determine whether it represents a variable interest entity (VIE). If the arrangement is determined to be a VIE, the Company assesses whether it is the primary beneficiary of the VIE and is consequently required to consolidate the VIE.

In fiscal 2012, the Company entered into a fixed price agreement to provide engineering, procurement, and construction services to a special purpose limited liability company (Plainfield Renewable Energy LLC or "Plainfield") for a specific renewable energy project. The Company analyzed this arrangement and determined that Plainfield was a VIE. Prior to the third quarter of fiscal 2014, the VIE was not consolidated by the Company because the Company was not the primary beneficiary.

On October 11, 2013, the Company and Plainfield Renewable Energy Owner, LLC (“project owner”) entered into a consensual foreclosure agreement pursuant to which, the project owners agreed to transfer 100% of the equity interest of Plainfield Renewable Energy Holdings, LLC (“PRE Holdings”) to an indirect wholly owned subsidiary of Leidos in full satisfaction of certain secured obligations owed by the project owner to the Company. Plainfield is a wholly-owned subsidiary of PRE Holdings. As a result of the entry into the foreclosure agreement, the Company determined that it has the power to direct the activities of the VIE and has the right to receive benefits from or the obligation to absorb the losses of the VIE. Accordingly, the Company was deemed the primary beneficiary of the VIE, resulting in the consolidation of Plainfield as of October 11, 2013. See Note 3 - Acquisitions, for further information.

Revenue Recognition

The Company’s revenues are generated primarily from contracts with the U.S. Government, commercial customers, and various international, state and local governments or from subcontracts with other contractors engaged in work with such customers. The Company performs under various types of contracts, which include firm-fixed-price, time-and-materials, fixed-price-level-of-effort, cost-plus-fixed-fee, cost-plus-award-fee and cost-plus-incentive-fee contracts.

Firm-fixed-price contracts—Revenues and fees on these contracts that are system integration or engineering in nature are primarily recognized using the percentage-of-completion method of accounting utilizing the cost-to-cost method. The completed contract method is utilized when reasonable and reliable cost estimates for a project can not be made.

Time-and-materials contracts—Revenue is recognized on time-and-materials contracts based on the hours provided in performance under the contract multiplied by the negotiated contract billing rates, plus the negotiated contract billing rate of any allowable material and subcontract costs and out-of-pocket expenses.

Fixed-price-level-of-effort contracts (FP-LOE)—These contracts are substantially similar to time-and-materials contracts except they require a specified level of effort over a stated period of time. Accordingly, the Company recognizes revenue on FP-LOE contracts with the U.S. Government in a manner similar to time-and-materials contracts in which the Company measures progress toward completion based on the hours provided in performance under the contract multiplied by the negotiated contract billing rates, plus the negotiated contract billing rate of any allowable material costs and out-of-pocket expenses.

Cost-plus-fixed-fee contracts—Revenue is recognized on cost-plus-fixed-fee contracts with the U.S. Government on the basis of partial performance equal to costs incurred, plus an estimate of applicable fees earned as the Company becomes contractually entitled to reimbursement of costs and the applicable fees.

Cost-plus-award-fee/cost-plus-incentive fee contracts—Revenues and fees on these contracts with the U.S. Government are primarily recognized using the percentage-of-completion method of accounting, most often based on the cost-to-cost method. The Company includes an estimate of the ultimate incentive or award fee to be received on the contract in the estimate of contract revenues for purposes of applying the percentage-of-completion method of accounting.

Revenues from services and maintenance contracts, notwithstanding contract type, are recognized over the term of the respective contracts as the services are performed and revenue is earned. Revenues from unit-priced contracts are recognized as transactions are processed based on objective measures of output. Revenues from the sale of manufactured products are recorded upon passage of title and risk of loss to the customer, which is generally upon delivery, provided that all other requirements for revenue recognition have been met.

The Company also uses the efforts-expended method of percentage-of-completion using measures such as labor dollars for measuring progress toward completion in situations in which this approach is more representative of the progress on the contract. For example, the efforts-expended method is utilized when there are significant amounts of materials or hardware procured for the contract that is not representative of progress on the contract. Additionally, the Company utilizes the units-of-delivery method under percentage-of-completion on contracts where separate units of output are produced. Under the units-of-delivery method, revenue is generally recognized when the units are delivered to the customer, provided that all other requirements for revenue recognition have been met.

The Company evaluates its contracts for multiple elements, and when appropriate, separates the contracts into separate units of accounting for revenue recognition.

The Company provides for anticipated losses on contracts by recording an expense during the period in which the losses are determined. Amounts billed and collected but not yet recognized as revenues under certain types of contracts are deferred. Contract costs incurred for U.S. Government contracts, including indirect costs, are subject to audit and adjustment through negotiations between the Company and government representatives. The Company has agreed upon and settled indirect contract costs through fiscal 2008. Revenues on U.S. Government contracts have been recorded in amounts that are expected to be realized upon final settlement.

Contract claims are unanticipated additional costs incurred but not provided for in the executed contract price that the Company seeks to recover from the customer. Such costs are expensed as incurred. Additional revenue related to contract claims is recognized when the amounts are awarded by the customer. Un-priced change orders are included in revenue when they are probable of recovery in an amount at least equal to the cost.

In certain situations, primarily where the Company is not the primary obligor on certain elements of a contract such as the provision of administrative oversight and/or management of government-owned facilities or logistical support services related to other vendors’ products, the Company recognizes as revenue the net management fee associated with the services and excludes from its income statement the gross sales and costs associated with the facility or other vendors’ products.

Changes in Estimates on Contracts

Changes in estimates related to certain types of contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can routinely occur over the contract performance period for a variety of reasons, including changes in contract scope, changes in contract cost estimates due to unanticipated cost growth or retirements of risk for amounts different than estimated, and changes in estimated incentive or award fees. Aggregate changes in contract estimates decreased operating loss by $24 million ($0.20 per diluted share) for fiscal 2015 and decreased operating income by $21 million ($0.15 per diluted share) for fiscal 2014. Aggregate changes in contract estimates increased operating income by $19 million ($0.14 per diluted share) for fiscal 2013.

Discontinued Operations

From time-to-time, the Company may dispose (or management may commit to plans to dispose) of non-strategic components of the business, which are reclassified as discontinued operations for all periods presented.

Pre-contract Costs

Costs incurred on projects as pre-contract costs are deferred as assets (inventory, prepaid expenses and other current assets) when the Company has been requested by the customer to begin work under a new arrangement prior to contract execution and it is probable that the Company will recover the costs through the issuance of a contract. When the formal contract has been executed, the costs are recorded to the contract and revenue is recognized.

Fair Value Measurements

The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than the quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).

The fair value of financial instruments is determined based on quoted market prices, if available, or management’s best estimate. It is management’s belief that the carrying amounts of the Company’s financial instruments other than derivatives (see Financial Instruments below), which include cash equivalents and long-term investments, are reasonable estimates of their related fair values. The carrying value of accounts receivable, accounts payable, and accrued expenses approximate their fair values. The fair value of long-term debt (see Note 9) 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).

Management evaluates its investments for other-than-temporary impairment at each balance sheet date. When testing long-term investments for recovery of carrying value, the fair value of long-term investments is determined using various valuation techniques and factors, such as market prices of comparable companies (Level 2 input), discounted cash flow models (Level 3 input) and recent capital transactions of the portfolio companies being valued (Level 3 input). If management determines that an other-than-temporary decline in the fair value of an investment has occurred, an impairment loss is recognized to reduce the investment to its estimated fair value (Level 2 input). At January 30, 2015, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis using Level 2 or Level 3 inputs.

The Company’s non financial instruments measured at fair value on a nonrecurring basis included goodwill, indefinite-lived intangible assets and long-lived tangible assets. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions, as such the Company generally classifies non financial instruments as either Level 2 or Level 3 fair value measurements. At January 30, 2015, goodwill, certain indefinite-lived intangible assets, and tangible assets are measured at fair value. See Note 4 - Goodwill and Intangible Assets and Note 3 - Acquisitions, respectively, for further information.

Financial Instruments

The Company is exposed to certain market risks which are inherent in certain transactions entered into during the normal course of business. These transactions include sales or purchase contracts denominated in foreign currencies, investments in equity securities and exposure to changing interest rates. The Company uses a risk management policy to assess and manage cash flow and fair value exposure. The policy permits the use of derivative instruments with certain restrictions.

The Company uses interest rate swaps to hedge its fixed rate debt against changes in fair value due to variability in interest rates. The Company is party to interest rate swap agreements that have been designated as fair value hedges and are recorded at fair value on the consolidated balance sheet. The fair value of the interest rate swaps are determined based on observed values for underlying interest rates on the LIBOR yield curve (Level 2).

The Company does not hold derivative instruments for trading or speculative purposes.

Cash and Cash Equivalents

The Company’s cash equivalents were primarily comprised of investments in several large institutional money market funds and bank deposits. There are no restrictions on the withdrawal of the Company’s cash and cash equivalents. The Company's cash equivalents are recorded at historical cost, which equals fair value based on quoted market prices (Level 1 input as defined by the accounting standard for fair value measurements).

Restricted Cash

The Company has restricted cash balances, primarily representing advances from a customer, that are restricted as to use for certain expenditures related to that customer’s contract. Restricted cash balances are included as "Other assets" in the Company's consolidated balance sheets.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash equivalents and accounts receivable. At January 30, 2015, the Company’s cash and cash equivalents bear both fixed and variable interest rates. Although credit risk is limited, the Company’s receivables are concentrated with its principal customers, which are the various agencies of the U.S. Government and customers engaged in work for the U.S. Government, and to a lesser degree, commercial companies.

Investments

Investments in entities and corporate joint ventures where the Company has a noncontrolling ownership interest representing less than 50% and over which the Company has the ability to exercise significant influence, are accounted for under the equity method of accounting whereby the Company recognizes its proportionate share of the entities’ net income or loss and does not consolidate the entities’ assets and liabilities. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost or cost net of other-than-temporary impairments.

Inventories

Inventories are valued at the lower of cost or estimated net realizable value. Raw material inventory is valued using the average cost method. Work-in-process inventory includes raw material costs plus labor costs, including fringe benefits, and allocable overhead costs. The majority of finished goods inventory consists of border, port and mobile security products and baggage scanning equipment. The Company evaluates inventory against historical and planned usage to determine appropriate provisions for obsolete inventory. For the years ended January 30, 2015 and January 31, 2014, the Company's inventory balance consisted primarily of inventoried costs relating to long-term contracts.

Property, Plant and Equipment

Purchases of property, plant and equipment as well as costs associated with major renewals and betterments are capitalized. Maintenance, repairs and minor renewals and betterments are expensed as incurred.

Construction in Progress (CIP) is used to accumulate all costs for projects that are not yet complete. CIP balances are transferred to the appropriate asset account when the asset is capitalized and ready for its intended use.

When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized. Depreciation is recognized using the methods and estimated useful lives as follows:



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	2-10
Buildings	Straight-line	30-40
Building improvements and leasehold improvements	Straight-line	Shorter of lease term or 25
Office furniture	Straight-line or declining-balance	6-9
Electric generation facility	Straight-line	25

The Company evaluates its long-lived assets for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount of the asset exceeds its estimated fair value.

Goodwill and Intangible Assets

Goodwill

Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of acquired businesses. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level annually, at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill is evaluated for impairment either under a qualitative assessment option or a two-step quantitative approach depending on facts and circumstances of a reporting unit, including the excess of fair value over carrying amount in previous assessments and changes in business environment.

When performing a qualitative assessment, the Company considers factors including, but not limited to, current macroeconomic conditions, industry and market conditions, cost factors, financial performance and other events relevant to the entity or reporting unit under evaluation to determine whether it is more likely or not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a quantitative two-step goodwill impairment test is performed.

In evaluating the first step of the two-step quantitative goodwill impairment test, the estimated fair value of each reporting unit is compared to its carrying value, which includes the allocated goodwill. If the estimated fair value of a reporting unit is more than its carrying value, including allocated goodwill, no further analysis is required. If the estimated fair value of a reporting unit is less than its carrying value, including allocated goodwill, a second step is performed to compute the amount of the impairment by determining an implied fair value of goodwill. The implied fair value of goodwill is the residual fair value derived by deducting the fair value of a reporting unit’s identifiable assets and liabilities from its estimated fair value calculated in the first step. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company records an impairment charge equal to the difference.

The Company estimates the fair value of each reporting unit using both market and income approaches (Level 3) when a quantitative analysis is required.

The market approach consists of the guideline public company method which is a valuation technique where the fair value is calculated based on market prices obtained from a detailed market analysis of publicly traded companies that provide a reasonable basis of comparison for each reporting unit. Valuation ratios are selected that relate market prices to selected financial metrics from comparable companies. These ratios are applied after consideration of adjustments and weightings related to financial position, growth, volatility, working capital movement, and other factors. Due to the fact that stock prices of comparable companies represent minority interests the Company also considers an acquisition control premium to reflect the impact of additional value associated with a controlling interest.

The income approach is a valuation technique where the fair value is calculated based on forecasted future cash flows within the projection period discounted back to the present value with appropriate risk adjusted discount rates, which represent the weighted-average cost of capital ("WACC") for each reporting unit. This includes assessing the cost of equity and debt capital as of the valuation date. In addition, a terminal value is developed for forecasted future cash flows beyond the projection period discounted back to the present value. The forecasts used in the Company’s estimation of fair value are developed by management based on business and market considerations.

The goodwill impairment test process and valuation model is based upon certain key assumptions that require the exercise of significant judgment including judgments for the use of appropriate financial projections, economic expectations, discount rates and WACC as well as using available market data.

An interim goodwill impairment evaluation was performed during the second quarter of fiscal 2015 and resulted in goodwill impairment charges of $486 million. See Note 4–Goodwill and Intangible Assets for further information.

Intangible Assets

Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives.

Intangible assets with finite lives are being amortized over the following periods:



	Estimated useful lives (in years)
Customer relationships	5-10
Software and technology	9-15
Other	5

Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. See Note 4 – Goodwill and Intangible Assets for impairment charges taken during the period. Intangible assets with indefinite lives are not amortized but are assessed for impairment at the beginning of the fourth quarter and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Selling, General and Administrative Expenses

The Company classifies indirect costs incurred within or allocated to its U.S. Government customers as overhead (included in cost of revenues) or general and administrative expenses in the same manner as such costs are defined in the Company’s disclosure statements under U.S. Government Cost Accounting Standards.

Selling, general and administrative expenses include general and administrative, bid and proposal and internal research and development ("IR&D") expenses.

The Company conducts research and development activities under customer-funded contracts and with company-funded IR&D funds. In fiscal 2015, 2014, and 2013, company-funded IR&D expense was $37 million, $45 million, and $47 million, respectively. Expenses for research and development activities performed under customer contracts are charged directly to cost of revenues for those contracts.

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with the accounting standard for income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted.

The Company records net deferred tax assets to the extent that it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. If the Company were to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize its deferred income tax assets in the future as currently recorded, the Company would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes.

The provision for federal, state, foreign and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes.

The Company recognizes liabilities for uncertain tax positions when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions in its income tax expense.

Stock-Based Compensation

The Company recognizes the fair value of all stock-based awards, including stock options, granted to employees and directors in exchange for services as compensation expense over the requisite service period, which is typically the vesting period, net of an estimated forfeiture rate.

Special Cash Dividend

In fiscal 2014, Leidos' board of directors declared a special cash dividend of $4.00 per share of Leidos common stock and paid an aggregate of $342 million to stockholders as of the record date of June 14, 2013. See Note 13 – Stock-Based Compensation, for further information regarding the modifications made to the Company’s outstanding stock options resulting from the special cash dividend. There were no modifications made to the Company’s vesting stock awards and performance-based stock awards as a result of the special dividend.

Foreign Currency

The financial statements of consolidated international subsidiaries, for which the functional currency is not the U.S. dollar, are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate over the reporting period for revenues, expenses, gains and losses. Translation adjustments are recorded as accumulated other comprehensive income (loss) in stockholders’ equity. Transaction gains and losses are recognized in the statement of income.

Accounting Standards Updates Adopted

In February 2013, the FASB issued ASU 2013-04: Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This standard requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of the provisions of ASU 2013-04 did not have a material effect on the Company's consolidated financial position, results of operations or cash flows.

In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This standard applies to the release of the cumulative translation adjustment into net income when a parent either sells a part of or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the amendments resolve the diversity in practice for the treatment of business combinations achieved in stages (i.e. step acquisitions) involving a foreign entity. The amendments in this are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of the provisions of ASU 2013-04 did not have a material effect on the Company's consolidated financial position, results of operations or cash flows.

In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic location, a major line of business or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. The Company elected to early adopt the provisions of ASU No. 2014-08 and the standard did not have a material effect on the Company's consolidated financial position, results of operations, or cash flows.

In June 2014, the FASB issued ASU No. 2014-12, Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This standard was issued to provide guidance on share based payment awards in which a performance target may be achieved after an employee completes the requisite service period to achieve the award. In some instances, this has led to a performance award being granted subsequent to the employee no longer rendering services to the issuing company. Previously, no guidance had been included in the codification on how to account for these transactions. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for all entities for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The amendments may be adopted prospectively or retrospectively. The Company elected to early adopt the provisions of ASU No. 2014-12 and the standard did not have a material effect on the Company's consolidated financial position, results of operations, or cash flows.

During the fiscal years presented, the Company adopted various accounting standards issued by the FASB, none of which had a material effect on the Company's consolidated financial position, results of operations or cash flows.

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 will supersede all revenue recognition requirements in Topic 605, Revenue Recognition and industry-specific guidance throughout the Industry Topics of the codification. The guidance's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue principles, an entity will identify the contract(s) with a customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when the performance obligation is satisfied (either over time or 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 amendments in this ASU are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016, for public companies. Early adoption is not permitted. The Company is still evaluating the provisions of ASU 2014-09 and its impact on the Company's consolidated financial position, results of operations, or cash flows.

In January 2015, the FASB issued ASU 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). This Update eliminates from GAAP the concept of extraordinary items and it is intended to simplify income statement classification. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net-of-tax presentation (and corresponding earnings per share impact) will no longer be allowed. The existing presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, but only as of the beginning of the fiscal year of adoption. The Company does not expect the provisions of ASU 2015-01 to have a material effect on the Company's consolidated financial position, results of operations or cash flows.

Leidos, Inc.

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies:

Nature of Operations and Basis of Presentation

Reporting Periods

Use of Estimates

Separation Transaction and Restructuring Expenses

The separation transaction and restructuring expenses for continuing operations for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Strategic advisory services	$	—		$	7		$	1
Legal and accounting services	—			2			—
Lease termination and facility consolidation expenses	3			46			2
Severance costs	—			10			8
Separation transaction and restructuring expenses in operating (loss) income	3			65			11
Less: income tax benefit	(1		)	(25		)	(4		)
Separation transaction and restructuring expenses, net of tax	$	2		$	40		$	7



	Severance Costs			Lease Termination and Facility Consolidation Expenses			Total
	(in millions)
Balance as of January 31, 2013	$	8		$	2		$	10
Charges	10			41			51
Cash payments	(17		)	(23		)	(40		)
Balance as of January 31, 2014	$	1		$	20		$	21
Charges	—			3			3
Cash payments	(1		)	(12		)	(13		)
Balance as of January 30, 2015	$	—		$	11		$	11

Operating Cycle

Variable Interest Entities

Revenue Recognition

The Company evaluates its contracts for multiple elements, and when appropriate, separates the contracts into separate units of accounting for revenue recognition.

Changes in Estimates on Contracts

Discontinued Operations

Pre-contract Costs

Fair Value Measurements

Financial Instruments

The Company does not hold derivative instruments for trading or speculative purposes.

Cash and Cash Equivalents

Restricted Cash

Concentration of Credit Risk

Investments

Inventories

Property, Plant and Equipment



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	2-10
Buildings	Straight-line	30-40
Building improvements and leasehold improvements	Straight-line	Shorter of lease term or 25
Office furniture	Straight-line or declining-balance	6-9
Electric generation facility	Straight-line	25

Goodwill and Intangible Assets

Goodwill

The Company estimates the fair value of each reporting unit using both market and income approaches (Level 3) when a quantitative analysis is required.

Intangible Assets

Intangible assets with finite lives are being amortized over the following periods:



	Estimated useful lives (in years)
Customer relationships	5-10
Software and technology	9-15
Other	5

Selling, General and Administrative Expenses

Selling, general and administrative expenses include general and administrative, bid and proposal and internal research and development ("IR&D") expenses.

Income Taxes

Stock-Based Compensation

Special Cash Dividend

Foreign Currency

Accounting Standards Updates Adopted

Accounting Standards Updates Issued But Not Yet Adopted

Dispositions

12 Months Ended

Jan. 30, 2015

Dispositions

Dispositions:

Fiscal 2015 Discontinued Operations:

In July 2014, the Company committed to plans to dispose of a business primarily focused on full service emergency management consulting for disaster preparedness, response, recovery, and mitigation historically included in the Company's Health and Engineering segment. The sale transaction was completed in the third quarter of fiscal 2015 with cash proceeds received of $19 million, resulting in an immaterial gain on sale.

Fiscal 2014 Discontinued Operations:

Separation of New SAIC

As discussed in Note 1, the Company completed the spin-off of New SAIC on September 27, 2013. In anticipation of this spin-off, the Company entered into a credit agreement in June 2013 as a guarantor that consisted of a unsecured term credit facility of $500 million with New SAIC as the borrower. New SAIC was a subsidiary of Leidos prior to the separation date. On September 26, 2013, New SAIC borrowed $500 million under this term credit facility which was unconditionally guaranteed by the Company. The Company was released from its guaranty on September 27, 2013, the completion date of the separation transaction. At separation, New SAIC made a $295 million dividend payment to Leidos and reimbursed Leidos, Inc. $5 million for financing costs previously advanced to New SAIC to secure the revolving and term credit facility, and Leidos, Inc. made a $26 million capital contribution to New SAIC.

The spin-off was made pursuant to the terms of a Distribution Agreement and several other agreements entered into between the Company and New SAIC on September 25, 2013. These agreements set forth, among other things, the principal actions needed to be taken in connection with the separation and govern certain aspects of the relationship between the Company and New SAIC following the separation. These agreements generally provide with certain exceptions, that each party is responsible for its respective assets, liabilities and obligations, including employee benefits, insurance and tax related assets and liabilities, whether accrued or contingent, except that unknown liabilities will be shared between the parties in certain circumstances. The agreements also describe the party’s commitments to provide each other with certain services for a limited time to help ensure an orderly transition. The agreements also include the treatment of existing contracts, proposals, and teaming arrangements where New SAIC will jointly perform work after separation on Leidos contracts. While the Company is a party to the Distribution Agreement and the ancillary agreements, the Company has determined that it does not have significant continuing involvement in the operations of New SAIC, nor does the Company expect significant continuing cash flows from New SAIC.

The operating results of New SAIC through the Distribution Date, which have been classified as discontinued operations, for the periods presented were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Revenues	$	39	$	2,712	$	4,683
Costs and expenses:
Cost of revenues	39		2,447		4,230
Selling, general and administrative expenses	—		42		65
Bad debt expense	—		—		2
Separation transaction and restructuring expenses	—		55		28
Operating income	$	—	$	168	$	358

The major classes of assets and liabilities included in discontinued operations through the Distribution Date related to the spin-off of New SAIC are presented in the table below:



	January 31, 2013
	(in millions)
Cash and cash equivalents	$	1
Receivables, net	717
Inventory, prepaid expenses and other current assets	101
Total current assets	819
Property, plant and equipment, net	29
Intangible assets, net	6
Goodwill	491
Deferred income taxes	2
Other assets	1
Total assets	1,348
Accounts payable and accrued liabilities	461
Accrued payroll and employee benefits	185
Notes payable and long-term debt	1
Total current liabilities	647
Non-current liabilities	—
Total liabilities	$	647

Other Fiscal 2014 Discontinued Operations

The fiscal 2014 other non-strategic dispositions were historically included in the Company's National Security Solutions segment.

In August 2013, the Company committed to plans to dispose of a business primarily focused on technology used to detect if an individual is concealing explosive devices or other hidden weapons. In the first quarter of fiscal 2015, the Company adjusted the carrying values of the business's assets to their fair value based on the estimated selling price of the business. The carrying value exceeded the fair value which resulted in approximately $12 million of impairment charges recorded in discontinued operations, of which $9 million related to fixed assets and inventory and the remainder related to intangible assets. The sale transaction was completed in the second quarter of fiscal 2015 with insignificant cash proceeds received, resulting in an immaterial loss on sale.

In November 2013, the Company sold a certain component of the Company's business, focused on machine language translation with insignificant cash proceeds received, resulting in an immaterial gain on sale.

In January 2014, the Company committed to plans to dispose of Cloudshield Technologies, Inc. ("Cloudshield"), previously acquired in fiscal 2011, which is focused on producing a suite of cybersecurity hardware and associated software and services. The sale transaction was completed in February 2015 with cash proceeds received of $5 million.

Fiscal Year 2013 Dispositions:

The Company sold certain components of its business, which were historically included in the Company’s Health and Engineering segment, primarily focused on providing operational test and evaluation services to U.S. Government customers. The Company received net proceeds of $51 million resulting in a gain on sale before income taxes of $17 million related to this sale.

The pre-sale operating results through the date of disposal of the Company's discontinued operations discussed above, excluding the spin-off of New SAIC, for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues	$	29		$	33		$	97
Costs and expenses:
Cost of revenues	21			33			81
Selling, general and administrative expenses (including impairment charges of $9 million for the fiscal year ended January 30, 2015)	29			25			52
Intangible asset impairment charges	3			2			6
Operating loss	$	(24	)	$	(27	)	$	(42	)
Non-operating income (expense)	$	11		$	(1	)	$	14
Loss from discontinued operations before income taxes	$	(13	)	$	(28	)	$	(28	)

The major classes of assets and liabilities included in discontinued operations through the date of disposal, not including the spin-off of New SAIC, are immaterial for disclosure purposes.

Leidos, Inc.

Dispositions

Dispositions:

Fiscal 2015 Discontinued Operations:

Fiscal 2014 Discontinued Operations:

Separation of New SAIC

The operating results of New SAIC through the Distribution Date, which have been classified as discontinued operations, for the periods presented were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Revenues	$	39	$	2,712	$	4,683
Costs and expenses:
Cost of revenues	39		2,447		4,230
Selling, general and administrative expenses	—		42		65
Bad debt expense	—		—		2
Separation transaction and restructuring expenses	—		55		28
Operating income	$	—	$	168	$	358

The major classes of assets and liabilities included in discontinued operations through the Distribution Date related to the spin-off of New SAIC are presented in the table below:



	January 31, 2013
	(in millions)
Cash and cash equivalents	$	1
Receivables, net	717
Inventory, prepaid expenses and other current assets	101
Total current assets	819
Property, plant and equipment, net	29
Intangible assets, net	6
Goodwill	491
Deferred income taxes	2
Other assets	1
Total assets	1,348
Accounts payable and accrued liabilities	461
Accrued payroll and employee benefits	185
Notes payable and long-term debt	1
Total current liabilities	647
Non-current liabilities	—
Total liabilities	$	647

Other Fiscal 2014 Discontinued Operations

The fiscal 2014 other non-strategic dispositions were historically included in the Company's National Security Solutions segment.

Fiscal Year 2013 Dispositions:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues	$	29		$	33		$	97
Costs and expenses:
Cost of revenues	21			33			81
Selling, general and administrative expenses (including impairment charges of $9 million for the fiscal year ended January 30, 2015)	29			25			52
Intangible asset impairment charges	3			2			6
Operating loss	$	(24	)	$	(27	)	$	(42	)
Non-operating income (expense)	$	11		$	(1	)	$	14
Loss from discontinued operations before income taxes	$	(13	)	$	(28	)	$	(28	)

The major classes of assets and liabilities included in discontinued operations through the date of disposal, not including the spin-off of New SAIC, are immaterial for disclosure purposes.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Acquisitions

12 Months Ended

Jan. 30, 2015

Business Acquisition [Line Items]

Acquisitions

Acquisitions:

The Company acquires businesses as part of its growth strategy to provide new or enhance existing capabilities and offerings to customers. The Company completed acquisitions during each of the years presented, which individually and in the aggregate were not considered significant business combinations in the year acquired. No businesses were acquired during the year ended January 30, 2015.

Acquisition information for the years presented was as follows:



	Year Ended
	January 31, 2014		January 31, 2013
	($ in millions)
Number of acquisitions	1		1
Purchase consideration (paid and accrued)	$	111	$	505

The following table summarizes the fair value (preliminary or final) of goodwill and intangible assets acquired at the date of acquisition as well as the components and weighted average useful lives of the intangible asset:



	2014		2013
	($ in millions)
Goodwill:
Tax deductible goodwill	$	—	$	—
Non-tax deductible goodwill	—		395
Identifiable intangible assets:
Customer relationships (finite-lived)	$	—	$	62
Other (finite-lived)	3		10
Weighted average lives of finite-lived intangibles:
Customer relationships	—		5 years
Other	12 years		1 year
All finite-lived intangible assets	12 years		4 years

Plainfield Renewable Energy Holdings LLC

As described in Note 1, the Company became the primary beneficiary of Plainfield on October 11, 2013 (the "transaction"), which required the consolidation of the VIE. The Company also determined that Plainfield met the definition of a business and as such is gaining control of 100% of PRE Holdings equity through the consensual foreclosure agreement which constituted a change in control accounted for as a business combination.

The Plainfield Renewable Energy Project involves the design, construction, and financing of a 37.5 megawatt biomass-fueled power plant in Plainfield, Connecticut (the "plant"). Connecticut Light & Power will purchase approximately 80% of the power produced by the plant based on a 15-year off-take agreement, utilizing the plant's status as a renewable power source. In addition, there are fuel supply agreements with initial terms of 5 to 15 years and minimum purchase requirements either at prevailing market prices or a set price plus a CPI index. Subsequent to the business combination, three of the acquired fuel supply agreements were impaired in fiscal 2015. See Note 4 - Goodwill and Intangible Assets for further information.

The project was partially financed by the Company’s provision of extended payment terms for certain of its services performed on the project and, at the time of this transaction, the Company had a receivable of $137 million due from Plainfield. The remainder of the project was financed by the Carlyle Group with two secured notes aggregating $148 million, which these notes were assumed by the Company as part of consensual foreclosure. On December 6, 2013, the Company entered into an Early Payoff Agreement with the Carlyle Group to settle the two secured notes totaling $152 million in principal and paid on December 16, 2013 an aggregate of $165 million to fully satisfy its obligation to Carlyle which included the principal amount, interest due on the notes of $7 million, including an additional interest payment per the Early Payoff agreement and $6 million in an early termination fee. In addition, the unamortized deferred debt issuance costs and debt discount at the time of the pay off was expensed and included in "Other Income, net" in the Company's consolidated statements of income.

At the time the Company became the primary beneficiary of Plainfield, the Company measured the assets acquired and liabilities assumed at their fair values. The difference between the estimated fair value of the plant in comparison to the carrying value of the Company's deferred payment term receivables forgiven as of the date of the transaction resulted in a $32 million loss as "Bad debt expense" in the Company's consolidated statements of income during the third quarter of fiscal 2014. In addition as part of the transaction, contingent consideration of approximately $3 million remains to be paid as of January 30, 2015, of which $2 million will be paid on the earlier of November 2015 or the successful sale of the plant, and the remainder of which will be paid solely upon the successful sale of the plant.

In July 2014, the Company received a cash grant of $80 million from the U.S. Treasury Department, which was recorded as a reduction to the fixed asset basis of the plant on the consolidated balance sheet. For tax purposes, the tax basis of the plant was reduced by half of the amount of the cash grant. This difference between the excess tax basis of the plant over the book basis resulted in a $27 million deferred tax asset which was recorded as a reduction to the fixed asset basis of the plant. The U.S. Treasury grant also contains a recapture provision that could require the Company to repay funds to the Treasury in certain circumstances which the Company deems not probable.

The aggregate purchase consideration that the Company exchanged for PRE Holdings is as follows (in millions):



Forgiveness of accounts receivable (net of $32 million bad debt expense)	$	105
Contingent consideration	6
Total purchase consideration	$	111

The fair values of the assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Property, plant and equipment	$	248
Other assets	8
Notes payable assumed (net of debt discount)	(148		)
Total identifiable net assets acquired	108
Intangible assets	3
Total purchase consideration	$	111

In March 2015, the Company entered into a definitive agreement to sell 100% of the equity membership interest in Plainfield. The Company adjusted the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business pursuant to the terms of the agreement (Level 1 fair value measurement). The carrying value exceeded the fair value which resulted in approximately $40 million of impairment charges. The sale transaction is expected to be completed in the first half of the next fiscal year.

maxIT Healthcare Holdings, Inc.

In August 2012, the Company acquired 100% of the stock of maxIT Healthcare Holdings, Inc. ("maxIT"), a provider of clinical, business and information technology services primarily to commercial hospital groups and other medical delivery organizations. This acquisition expanded the Company’s commercial consulting practice in electronic health record ("EHR") implementation and optimization and strengthened the Company’s capabilities to provide these services to its federal healthcare customers as those customers migrate to commercial off-the-shelf EHR applications. This acquisition was in the Health and Engineering segment. The results of maxIT have been included in the financial statements since the date of acquisition.

The fair values of the maxIT assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Cash	$	9
Receivables	50
Other assets	24
Accounts payable, accrued liabilities and accrued payroll and employee benefits	(21		)
Deferred tax liabilities, net	(24		)
Total identifiable net assets acquired	38
Goodwill	395
Intangible assets	72
Total purchase price	$	505

Leidos, Inc.

Business Acquisition [Line Items]

Acquisitions

Acquisitions:

Acquisition information for the years presented was as follows:



	Year Ended
	January 31, 2014		January 31, 2013
	($ in millions)
Number of acquisitions	1		1
Purchase consideration (paid and accrued)	$	111	$	505



	2014		2013
	($ in millions)
Goodwill:
Tax deductible goodwill	$	—	$	—
Non-tax deductible goodwill	—		395
Identifiable intangible assets:
Customer relationships (finite-lived)	$	—	$	62
Other (finite-lived)	3		10
Weighted average lives of finite-lived intangibles:
Customer relationships	—		5 years
Other	12 years		1 year
All finite-lived intangible assets	12 years		4 years

Plainfield Renewable Energy Holdings LLC

The aggregate purchase consideration that the Company exchanged for PRE Holdings is as follows (in millions):



Forgiveness of accounts receivable (net of $32 million bad debt expense)	$	105
Contingent consideration	6
Total purchase consideration	$	111

The fair values of the assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Property, plant and equipment	$	248
Other assets	8
Notes payable assumed (net of debt discount)	(148		)
Total identifiable net assets acquired	108
Intangible assets	3
Total purchase consideration	$	111

maxIT Healthcare Holdings, Inc.

The fair values of the maxIT assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Cash	$	9
Receivables	50
Other assets	24
Accounts payable, accrued liabilities and accrued payroll and employee benefits	(21		)
Deferred tax liabilities, net	(24		)
Total identifiable net assets acquired	38
Goodwill	395
Intangible assets	72
Total purchase price	$	505

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Goodwill and Intangible Assets

12 Months Ended

Jan. 30, 2015

Goodwill and Intangible Assets

Goodwill and Intangible Assets:

The Company has the following reportable segments that contain goodwill: National Security Solutions (NSS) and Health and Engineering (HES).

Goodwill is tested for impairment at the reporting unit level annually, at the beginning of the fourth quarter, and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. In the second quarter of fiscal 2015, as part of its normal quarterly procedures, the Company considered both qualitative and quantitative factors associated with each of the Company's reporting units and determined that there were indicators that the carrying values of the Health Solutions and Engineering reporting units may not be fully recoverable due to operating performance shortfalls and forecasted declines of revenues and operating income. The Company performed an interim evaluation for these reporting units that resulted in impairments of the goodwill carrying value.

The balance and changes in the carrying amount of goodwill by segment were as follows:



	NSS		HES			Total
	(in millions)
Balance at January 31, 2013	$	719	$	974		$	1,693
Corporate reorganizations	69		(69		)	—
Balance at January 31, 2014	$	788	$	905		$	1,693
Goodwill impairment	—		(486		)	(486		)
Balance at January 30, 2015	$	788	$	419		$	1,207

Goodwill corporate reorganizations in fiscal 2014 resulted from the transfer of certain operations between reportable segments. The carrying value of goodwill by segment at January 31, 2013 has been recast to give effect to the change in reportable segments and for discontinued operations ($11 million for discontinued operations occurring in fiscal 2015).

During the second quarter of fiscal 2015, the Health Solutions reporting unit experienced a significant decline in both actual and forecasted revenue volumes primarily in the Company's commercial health consulting business resulting from a reduction in project opportunities, delayed award decisions, and completion of several larger electronic health records ("EHR") implementation engagements that were not extended or replaced with other projects. The declines were also impacted by delays in legislative compliance deadlines (i.e. ICD-10 and Meaningful Use Stage 2). These events attributed to a significant reduction in the Company's sales pipeline, forecasted revenue, and operating income. The nature of the Company's commercial health consulting engagements are short term in nature and the aforementioned events transpired and became known during the second quarter of fiscal 2015 and triggered a revised and lower financial forecast.

During the second quarter of fiscal 2015, the Engineering reporting unit experienced delayed or lost award decisions and reductions in scope on several large engineering construction projects as clients shifted priorities and adjusted their capital expenditure plans that were anticipated to be awarded to the Company during the second quarter of fiscal 2015. The Engineering reporting unit was also impacted by significant reduction in scope of services with an existing client. These events culminated in a significant reduction in the Company's sales pipeline, revenue, and operating income. The aforementioned events transpired and became known during the second quarter of fiscal 2015 and triggered a revised and lower financial forecast.

Based on the unexpected impacts and other unanticipated factors discussed above, the Company conducted an interim goodwill impairment test using the two-step quantitative approach.

As described in Note 1, the Company utilized both the market and income approach as part of the first step of the two-step quantitative goodwill impairment test to determine the estimated fair value of both the Health Solutions and Engineering reporting units.

The Company performed the market approach, guideline public company method, by applying pricing multiples derived from publicly traded guideline companies that are comparable to the reporting units to determine their fair values. The Company utilized enterprise/earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples and enterprise/revenue multiples which averaged 6.0 and 0.5, respectively, for the Health Solutions reporting unit, and 6.8 and 0.4, respectively, for the Engineering reporting unit. In addition, the fair value under the guideline public company method included a control premium of 20%, which was determined based on a review of comparable market transactions.

The income approach was performed by calculating the fair value based on forecasted future cash flows discounted back to the present value, including significant judgments related to the risk adjusted discount rates, terminal growth rates, and weighted-average cost of capital ("WACC"). The projected cash flows were developed by management for planning purposes based on current known business and market conditions as well as future anticipated industry trends. The method included certain cost adjustments that a market participant buyer would not incur to operate the respective reporting units. A terminal value growth rate of 3% and 2% and WACC of 12% and 14% (which includes a specific company risk premium of 2%) were used for the Health Solutions and Engineering reporting units, respectively.

Based on the first step of the two-step quantitative goodwill impairment test, the Company determined that the fair values of the Health Solutions and Engineering reporting units were 62% and 91% of their carrying values, respectively. Due to the fact that indicators of impairment existed, the second step of the two-step quantitative goodwill impairment test was performed to determine the implied fair value of goodwill and the impairment amount of the respective reporting units.

As a result of the second step evaluation, the Company recorded goodwill impairment charges in the Health Solutions and Engineering reporting units of $369 million and $117 million, respectively, for the three months ended August 1, 2014, which represents the difference between the carrying value and the implied fair value.

Based on a qualitative analysis performed during the Company's fiscal 2015 and 2014 annual impairment evaluation for certain of its reporting units, it was determined that it is more likely than not that the fair values of the reporting units were in excess of the individual reporting unit carrying values, and as a result, a quantitative step one analysis was not necessary. Additionally, based on the results of the quantitative step one analysis for certain other of its reporting units, it was determined that their fair values were in excess of the individual reporting units carrying values. As a result, no goodwill impairments were identified as part of the annual goodwill impairment evaluation. In fiscal 2013, the Company performed a quantitative step one analysis of its reporting units as part of the annual goodwill impairment evaluation and determined there was no goodwill impairment as all of the reporting unit fair values exceeded their carrying values.

Intangible assets, including those arising from preliminary estimates of assets acquired relating to acquisitions, consisted of the following:



	January 30, 2015							January 31, 2014
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Customer relationships	$	70	$	(57	)	$	13	$	94	$	(47	)	$	47
Software and technology	52		(41		)	11		65		(36		)	29
Other	—		—			—		4		(1		)	3
Total finite-lived intangible assets	122		(98		)	24		163		(84		)	79
Indefinite-lived intangible assets:
In-process research and development	9		—			9		10		—			10
Trade names	4		—			4		4		—			4
Total indefinite-lived intangible assets	13		—			13		14		—			14
Total intangible assets	$	135	$	(98	)	$	37	$	177	$	(84	)	$	93

Amortization expense related to amortizable intangible assets was $15 million, $35 million, and $35 million for the fiscal years ended January 30, 2015, January 31, 2014, and January 31, 2013, respectively.

The Company recognized intangible asset impairment charges of $41 million for the fiscal year ended January 30, 2015. The Company recognized intangible asset impairment charges of $51 million, including an additional $2 million of other intangible asset impairment charges not described below, for the fiscal year ended January 31, 2014. There were no intangible asset impairment charges for fiscal year 2013.

During fiscal 2015, the Company determined that certain intangible assets associated with fuel supply contracts obtained through the Plainfield Renewable Energy Project foreclosure were not recoverable due to changes in the Company's fuel supply strategy and newly identified requirements to operate the plant which impacted expected benefits from the related fuel supply arrangements. As a result, the Health and Engineering reportable segment recognized an impairment charge of $3 million to write-off the carrying value associated with the intangible assets of three fuel supply agreements.

The Company determined that certain intangible assets consisting of software and technology, associated with the acquisition of Reveal Imaging Technologies, Inc. in fiscal 2011, were not recoverable due to lower projected revenue levels from the associated products and customers. As a result, the Health and Engineering reportable segment recognized impairment charges of $14 million and $30 million during fiscal 2015 and fiscal 2014, respectively, to reduce the carrying value of these intangible assets to their estimated fair values. Fair value was estimated using the income approach based on management's forecast of future cash flows to be derived from the assets' use (Level 3).

The Company determined that certain customer relationship intangible assets associated with the acquisitions of Vitalize and maxIT in fiscal 2012 and 2013, respectively, were not recoverable due to lower projected revenue and operating income levels from the associated customers. As a result, the Health and Engineering reportable segment recognized impairment charges of $24 million and $19 million during fiscal 2015 and fiscal 2014, respectively, to reduce the carrying value of these intangible assets to their estimated fair values. Fair value was estimated using the income approach based on management’s forecast of future cash flows to be derived from the assets’ use (Level 3).

The estimated annual amortization expense related to finite-lived intangible assets as of January 30, 2015 was as follows:



Year Ending January 30
	(in millions)
2016	$	8
2017	7
2018	5
2019	3
2020	1
2021 and thereafter	—
	$	24

Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments, the outcome and timing of completion of in-process research and development projects (the assets of which will become amortizable upon completion and placement into service, or will be impaired if abandoned), adjustments to preliminary valuations of intangible assets and other factors.

Leidos, Inc.

Goodwill and Intangible Assets

Goodwill and Intangible Assets:

The Company has the following reportable segments that contain goodwill: National Security Solutions (NSS) and Health and Engineering (HES).

The balance and changes in the carrying amount of goodwill by segment were as follows:



	NSS		HES			Total
	(in millions)
Balance at January 31, 2013	$	719	$	974		$	1,693
Corporate reorganizations	69		(69		)	—
Balance at January 31, 2014	$	788	$	905		$	1,693
Goodwill impairment	—		(486		)	(486		)
Balance at January 30, 2015	$	788	$	419		$	1,207

Based on the unexpected impacts and other unanticipated factors discussed above, the Company conducted an interim goodwill impairment test using the two-step quantitative approach.

Intangible assets, including those arising from preliminary estimates of assets acquired relating to acquisitions, consisted of the following:



	January 30, 2015							January 31, 2014
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Customer relationships	$	70	$	(57	)	$	13	$	94	$	(47	)	$	47
Software and technology	52		(41		)	11		65		(36		)	29
Other	—		—			—		4		(1		)	3
Total finite-lived intangible assets	122		(98		)	24		163		(84		)	79
Indefinite-lived intangible assets:
In-process research and development	9		—			9		10		—			10
Trade names	4		—			4		4		—			4
Total indefinite-lived intangible assets	13		—			13		14		—			14
Total intangible assets	$	135	$	(98	)	$	37	$	177	$	(84	)	$	93

The estimated annual amortization expense related to finite-lived intangible assets as of January 30, 2015 was as follows:



Year Ending January 30
	(in millions)
2016	$	8
2017	7
2018	5
2019	3
2020	1
2021 and thereafter	—
	$	24

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Receivables

12 Months Ended

Jan. 30, 2015

Receivables [Abstract]

Receivables

Receivables:

The components of receivables, net consisted of the following:



	January 30, 2015			January 31, 2014
	(in millions)
Billed and billable receivables	$	655		$	794
Unbilled receivables:
Amounts billable	230			288
Contract retentions	21			15
Allowance for doubtful accounts	(10		)	(15		)
	$	896		$	1,082

The Company’s accounts receivable includes amounts billed and currently due from customers as well as billable receivables that generally consist of amounts to be billed within the next month. Since the Company’s receivables are primarily with the U.S. Government, the Company does not have exposure to a material credit risk. Amounts billable are stated at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected within one year. Amounts billable also include rate variances that are billable upon negotiation of final indirect rates with the U.S. Government and, once billed, are subject to audit and approval by government representatives. Contract retentions are billed upon contract completion, or the occurrence of a specified event, and when negotiation of final indirect rates with the U.S. Government is complete. Consequently, the timing of collection of retention balances is outside the Company’s control. Based on the Company’s historical experience, the majority of retention balances are expected to be collected beyond one year and write-offs of retention balances have not been significant. When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded.

The Company has extended deferred payment terms with original contractual maturities that may exceed one year to commercial customers related to certain construction projects. As of January 30, 2015, the Company had outstanding receivables of $18 million, net of allowance of $7 million, related to one construction project with deferred payment terms, which have not been paid in accordance with the initial payment terms established with the customer. The Company has filed a legal claim to enforce the payment terms as established in the contract. Based on these events, the Company has determined that the receivables are not expected to be collected within the next 12 months. Accordingly, the receivables are classified as non-current in "Other Assets" on the consolidated balance sheet as of January 30, 2015. During fiscal 2015, the Company received partial payment of $21 million from the customer.

During fiscal 2014, the Company recorded "Bad debt expense" in the Company's consolidated statements of income of $41 million related to two different construction projects. In addition, approximately $105 million of the outstanding deferred payment term receivables were used to acquire PRE Holdings under the consensual foreclosure.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property Plant and Equipment

12 Months Ended

Jan. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment:

Property, plant, and equipment, net consisted of the following:



	January 30, 2015			January 31, 2014
	(in millions)
Electric generation facility	$	127		$	269
Computers and other equipment	166			204
Leasehold improvements	156			167
Buildings and improvements	107			113
Office furniture and fixtures	37			43
Land	26			27
Construction in progress	2			—
	621			823
Less accumulated depreciation and amortization	(313		)	(341		)
	$	308		$	482

Depreciation expense was $47 million, $45 million, and $55 million for fiscal 2015, 2014, and 2013, respectively.

Composition of Certain Financial Statement Captions

12 Months Ended

Jan. 30, 2015

Composition of Certain Financial Statement Captions

Composition of Certain Financial Statement Captions:



	January 30, 2015		January 31, 2014
	(in millions)
Inventory, prepaid expenses and other current assets:
Prepaid income taxes and tax refunds receivable	$	102	$	24
Inventories	70		59
Restricted cash	30		18
Prepaid expenses	28		34
Deferred income taxes	12		89
Other	31		32
	$	273	$	256
Accounts payable and accrued liabilities:
Accrued liabilities	$	327	$	395
Accounts payable	244		218
Collections in excess of revenues on uncompleted contracts and deferred revenue	104		103
	$	675	$	716
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	138	$	152
Accrued vacation	123		128
Accrued contributions to employee benefit plans	3		5
	$	264	$	285
Other long-term liabilities:
Deferred compensation	$	39	$	38
Lease related obligations	31		33
Deferred tax liabilities	21		66
Accrued pension liabilities	8		9
Liabilities for uncertain tax positions	6		12
Other	63		69
	$	168	$	227

Leidos, Inc.

Composition of Certain Financial Statement Captions

Composition of Certain Financial Statement Captions:



	January 30, 2015		January 31, 2014
	(in millions)
Inventory, prepaid expenses and other current assets:
Prepaid income taxes and tax refunds receivable	$	102	$	24
Inventories	70		59
Restricted cash	30		18
Prepaid expenses	28		34
Deferred income taxes	12		89
Other	31		32
	$	273	$	256
Accounts payable and accrued liabilities:
Accrued liabilities	$	327	$	395
Accounts payable	244		218
Collections in excess of revenues on uncompleted contracts and deferred revenue	104		103
	$	675	$	716
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	138	$	152
Accrued vacation	123		128
Accrued contributions to employee benefit plans	3		5
	$	264	$	285
Other long-term liabilities:
Deferred compensation	$	39	$	38
Lease related obligations	31		33
Deferred tax liabilities	21		66
Accrued pension liabilities	8		9
Liabilities for uncertain tax positions	6		12
Other	63		69
	$	168	$	227

Derivative Instruments and Hedging Activities

12 Months Ended

Jan. 30, 2015

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities:

During fiscal 2015, the Company entered into interest rate swap agreements to hedge the fair value with respect to all of the $450 million aggregate principal outstanding on the Company's fixed rate 4.45% 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), which effectively converted the debt into floating interest rate debt. 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 counterparties to these agreements are financial institutions.

The interest rate swaps were accounted for as a fair value hedge of the Notes and qualified for the shortcut method of hedge accounting which allows for the assumption of no ineffectiveness reported in earnings. The resulting changes in the fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying debt (the hedged item).

The fair value of the Notes is stated at an amount that reflects changes in the benchmark interest rate subsequent to the inception of the interest rate swaps through the reporting date. The cash flows associated with the interest rate swaps are classified as operating activities in the consolidated statement of cash flows.

The fair value of the interest rate swaps and their impact on the related fair value of the debt in the consolidated balance sheet is as follows:



Interest rate swaps					Hedged items
Balance sheet line item	January 30, 2015		January 31, 2014		Balance sheet line item	January 30, 2015		January 31, 2014
(in millions)
Other assets	$	17	$	—	Notes payable and long-term debt, net of current portion	$	17	$	—

Leidos, Inc.

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities:

The fair value of the interest rate swaps and their impact on the related fair value of the debt in the consolidated balance sheet is as follows:



Interest rate swaps					Hedged items
Balance sheet line item	January 30, 2015		January 31, 2014		Balance sheet line item	January 30, 2015		January 31, 2014
(in millions)
Other assets	$	17	$	—	Notes payable and long-term debt, net of current portion	$	17	$	—

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Debt

12 Months Ended

Jan. 30, 2015

Debt

Debt:

Revolving Credit Facility

Leidos has a revolving credit facility, which is fully and unconditionally guaranteed by Leidos, Inc. which had provided for $750 million in unsecured borrowing capacity at interest rates determined, at Leidos’ option, based on either LIBOR plus a margin or a defined base rate. During fiscal 2015, the Company amended the credit facility to, among other things, change the ratio of consolidated funded debt to EBITDA that the Company is required to maintain. A pro-rata portion of the unamortized deferred costs related to the prior arrangement was written off at the time of the amendment. The remaining unamortized deferred costs relating to the prior arrangement and the immaterial fee paid to amend the credit facility, which were deferred, will be amortized over the term of the amended credit facility. In connection with the amendment to the credit facility, the Company exercised its right under the credit agreement to voluntarily reduce the combined commitments of the lenders from $750 million to $500 million. The maturity date of the credit facility is March 2017. As of January 30, 2015 and January 31, 2014, there were no borrowings outstanding under the credit facility.

The credit facility contains certain customary representations and warranties, as well as certain affirmative and negative covenants. The financial covenants contained in the amended credit facility require that, for a period of four trailing fiscal quarters, the Company maintains a ratio of consolidated funded debt, including borrowings under this credit facility, to EBITDA (adjusted for certain items as defined in the credit facility) of not more than 4.0 to 1.0 until no later than January 29, 2016 and 3.75 to 1.0 thereafter, and a ratio of EBITDA (adjusted for certain items as defined in the credit facility) to interest expense of greater than 3.5 to 1.0. The Company was in compliance with these financial covenants as of January 30, 2015. A failure by the Company to meet these financial covenants in the future could eliminate the Company’s borrowing capacity under the credit facility.

The available borrowing capacity on the credit facility may vary each quarter based on the trailing four quarters of EBITDA. If the Company's trailing four quarters of EBITDA declines below a certain threshold in relation to outstanding debt, the borrowing capacity available under the credit facility is reduced. The available borrowing capacity based on the results of the Company's trailing four quarters of EBITDA as of January 30, 2015 was approximately $500 million.

Other covenants in the credit facility restrict certain of the Company’s activities, including, among other things, its ability to create liens, dispose of certain assets and merge or consolidate with other entities. The credit facility also contains certain customary events of default, including, among others, defaults based on certain bankruptcy and insolvency events, nonpayment, cross-defaults to other debt, breach of specified covenants, Employee Retirement Income Security Act (ERISA) events, material monetary judgments, change of control events, and the material inaccuracy of the Company’s representations and warranties. In addition, the Company's ability to declare and pay future dividends on Leidos stock may be restricted by the provisions of Delaware law and covenants in the revolving credit facility.

Notes Payable and Long-Term Debt

The Company’s notes payable and long-term debt consisted of the following for the years presented:



	Stated interest rate		Effective interest rate		January 30, 2015		January 31, 2014
	(dollars in millions)
Leidos Holdings, Inc. senior unsecured notes:
$450 million notes issued in fiscal 2011, which mature in December 2020 ⁽¹⁾	4.45	%	4.53	%	$	466	$	449
$300 million notes issued in fiscal 2011, which mature in December 2040	5.95	%	6.03	%	232		300
Leidos, Inc. senior unsecured notes:
$250 million notes issued in fiscal 2003, which mature in July 2032	7.13	%	7.43	%	248		248
$300 million notes issued in fiscal 2004, which mature in July 2033	5.50	%	5.85	%	182		296
Capital leases and other notes payable due on various dates through fiscal 2021	0%-3.7%		Various		38		40
Total notes payable and long-term debt					1,166		1,333
Less current portion					2		2
Total notes payable and long-term debt, net of current portion					$	1,164	$	1,331
Fair value of notes payable and long-term debt					$	1,152	$	1,350


(1)	As a result of executing the interest rate swap agreements, the carrying value of $466 million includes a fair value adjustment of $17 million attributable to changes in the benchmark interest rate, the six-month LIBOR rate, from the inception of the interest rate swap agreements to January 30, 2015.

The fair value of long-term debt is determined based on current interest rates available for debt with terms and maturities, and credit risk similar to the Company’s existing debt arrangements.

Interest is payable on the Company’s senior unsecured notes on a semi-annual basis with principal payments due on maturity. The note discounts, deferred debt issuance costs, and the loss on the settlement of related treasury lock contracts are amortized to interest expense (approximately $1 million was amortized in fiscal 2015), which results in an effective interest rate that is higher than the stated interest rate of the notes. The senior unsecured notes contain 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 January 30, 2015.

During fiscal 2015, the Company repurchased in the open market and retired principal amounts of $67 million on its $300 million 5.95% notes issued by Leidos Holdings, Inc. maturing in December 2040 and $116 million on its $300 million 5.50% notes issued by Leidos, Inc. maturing in July 2033. The Company recorded a $3 million gain on extinguishment of debt for the Leidos Holdings, Inc. notes and a $2 million gain for the Leidos, Inc. notes as part of the partial repayment of the respective notes. The total combined gain of $5 million represents the difference between the repurchase price of $175 million and the net carrying amount of the notes repurchased less the write-off of a portion of the unamortized debt discount and deferred financing costs on a pro-rata basis to the reduction of debt. The Company recorded the gain (loss) on extinguishment of debt in "Other Income, net" in the Company’s consolidated statements of income.

Maturities of notes payable and long-term debt are as follows:




Year Ending January 30
	(in millions)
2016	$	3
2017	3
2018	2
2019	2
2020	2
2021 and thereafter	1,159
Total principal payments	1,171
Less unamortized discount	5
	$	1,166

Leidos, Inc.

Debt

Debt:

Revolving Credit Facility

Notes Payable and Long-Term Debt

The Company’s notes payable and long-term debt consisted of the following for the years presented:



	Stated interest rate		Effective interest rate		January 30, 2015		January 31, 2014
	(dollars in millions)
Leidos Holdings, Inc. senior unsecured notes:
$450 million notes issued in fiscal 2011, which mature in December 2020 ⁽¹⁾	4.45	%	4.53	%	$	466	$	449
$300 million notes issued in fiscal 2011, which mature in December 2040	5.95	%	6.03	%	232		300
Leidos, Inc. senior unsecured notes:
$250 million notes issued in fiscal 2003, which mature in July 2032	7.13	%	7.43	%	248		248
$300 million notes issued in fiscal 2004, which mature in July 2033	5.50	%	5.85	%	182		296
Capital leases and other notes payable due on various dates through fiscal 2021	0%-3.7%		Various		38		40
Total notes payable and long-term debt					1,166		1,333
Less current portion					2		2
Total notes payable and long-term debt, net of current portion					$	1,164	$	1,331
Fair value of notes payable and long-term debt					$	1,152	$	1,350


(1)	As a result of executing the interest rate swap agreements, the carrying value of $466 million includes a fair value adjustment of $17 million attributable to changes in the benchmark interest rate, the six-month LIBOR rate, from the inception of the interest rate swap agreements to January 30, 2015.

The fair value of long-term debt is determined based on current interest rates available for debt with terms and maturities, and credit risk similar to the Company’s existing debt arrangements.

Maturities of notes payable and long-term debt are as follows:




Year Ending January 30
	(in millions)
2016	$	3
2017	3
2018	2
2019	2
2020	2
2021 and thereafter	1,159
Total principal payments	1,171
Less unamortized discount	5
	$	1,166

Related Party Transactions	12 Months Ended
Related Party Transactions	Jan. 30, 2015
Related Party Transactions	Related Party Transactions: Leidos, Inc. has fully and unconditionally guaranteed the obligations of Leidos under its $450 million 4.45% notes and $300 million 5.95% notes. These notes have been reflected as debt of Leidos, Inc. in these consolidated financial statements. Leidos, Inc. has fully and unconditionally guaranteed any borrowings under Leidos’ amended and restated revolving credit facility maturing in fiscal 2018. Leidos has fully and unconditionally guaranteed the obligations of Leidos, Inc. under its $300 million 5.5% notes and $250 million 7.13% notes. Leidos and Leidos, Inc. have a related party note in connection with a loan of cash between the entities, which is adjusted to reflect issuances of stock by Leidos to employees of Leidos, Inc. and its subsidiaries and Leidos, Inc.’s payment of certain obligations on behalf of Leidos. The related party note bears interest based on LIBOR plus a market-based premium. Portions of the related party note may be repaid at any time. The note automatically extends for successive one-year periods unless either Leidos or Leidos, Inc. provides prior notice to the other party. As of January 30, 2015 and January 31, 2014, the note receivable from Leidos Holdings, Inc. to Leidos, Inc. was $1.4 billion and 1.1 billion, respectively. The note receivable also includes the distribution of the assets and liabilities of New SAIC of $736 million that occurred at the time of the separation in September 2013.
Leidos, Inc.
Related Party Transactions	Related Party Transactions: Leidos, Inc. has fully and unconditionally guaranteed the obligations of Leidos under its $450 million 4.45% notes and $300 million 5.95% notes. These notes have been reflected as debt of Leidos, Inc. in these consolidated financial statements. Leidos, Inc. has fully and unconditionally guaranteed any borrowings under Leidos’ amended and restated revolving credit facility maturing in fiscal 2018. Leidos has fully and unconditionally guaranteed the obligations of Leidos, Inc. under its $300 million 5.5% notes and $250 million 7.13% notes. Leidos and Leidos, Inc. have a related party note in connection with a loan of cash between the entities, which is adjusted to reflect issuances of stock by Leidos to employees of Leidos, Inc. and its subsidiaries and Leidos, Inc.’s payment of certain obligations on behalf of Leidos. The related party note bears interest based on LIBOR plus a market-based premium. Portions of the related party note may be repaid at any time. The note automatically extends for successive one-year periods unless either Leidos or Leidos, Inc. provides prior notice to the other party. As of January 30, 2015 and January 31, 2014, the note receivable from Leidos Holdings, Inc. to Leidos, Inc. was $1.4 billion and 1.1 billion, respectively. The note receivable also includes the distribution of the assets and liabilities of New SAIC of $736 million that occurred at the time of the separation in September 2013.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Accumulated Other Comprehensive Loss

12 Months Ended

Jan. 30, 2015

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss:

The components of accumulated other comprehensive loss were as follows:



	January 30, 2015			January 31, 2014
	(in millions)
Foreign currency translation adjustments, net of taxes of $0 million and $(1) million as of January 30, 2015 and January 31, 2014, respectively	$	1		$	2
Unrecognized net loss on settled derivative instruments associated with outstanding debt, net of taxes of $3 million as of January 30, 2015 and January 31, 2014, respectively	(5		)	(5		)
Unrecognized loss on defined benefit plan, net of taxes of $5 million and $2 million as of January 30, 2015 and January 31, 2014, respectively	(7		)	(3		)
Total accumulated other comprehensive loss, net of taxes of $8 million and $4 million as of January 30, 2015 and January 31, 2014, respectively	$	(11	)	$	(6	)

Reclassifications from other comprehensive income to net income, relating to foreign currency translation adjustments, unrecognized net gain (loss) on settled derivative instruments associated with outstanding debt and the unrecognized net gain (loss) on defined benefit plan for the years ended January 30, 2015 and January 31, 2014, respectively, were not material. Reclassifications for foreign currency translation adjustments and unrecognized gain (loss) on settled derivative instruments associated with outstanding debt are recorded in other income, net, and reclassifications for unrecognized net gain (loss) on defined benefit plan is recorded in selling, general and administrative expenses.

Leidos, Inc.

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss:

The components of accumulated other comprehensive loss were as follows:



	January 30, 2015			January 31, 2014
	(in millions)
Foreign currency translation adjustments, net of taxes of $0 million and $(1) million as of January 30, 2015 and January 31, 2014, respectively	$	1		$	2
Unrecognized net loss on settled derivative instruments associated with outstanding debt, net of taxes of $3 million as of January 30, 2015 and January 31, 2014, respectively	(5		)	(5		)
Unrecognized loss on defined benefit plan, net of taxes of $5 million and $2 million as of January 30, 2015 and January 31, 2014, respectively	(7		)	(3		)
Total accumulated other comprehensive loss, net of taxes of $8 million and $4 million as of January 30, 2015 and January 31, 2014, respectively	$	(11	)	$	(6	)

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher SEC
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Earnings Per Share (EPS)

12 Months Ended

Jan. 30, 2015

Earnings Per Share (EPS)

Earnings Per Share (EPS):

The Company is required to allocate a portion of its earnings to its unvested stock awards containing nonforfeitable rights to dividends or dividend equivalents (participating securities) in calculating EPS using the two-class method.

Unvested stock awards granted prior to fiscal 2013 are participating securities requiring application of the two-class method. In fiscal 2013, the Company began issuing unvested stock awards that have forfeitable rights to dividends or dividend equivalents. These stock awards are not participating securities requiring application of the two-class method but are dilutive common share equivalents subject to the treasury stock method. Basic EPS is computed by dividing income less earnings allocable to participating securities by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.

A reconciliation of the (loss) income used to compute basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Basic EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing basic EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing basic EPS	$	(323	)	$	161		$	514
Diluted EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing diluted EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing diluted EPS	$	(323	)	$	161		$	514

The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented. The presentation gives effect to the one-for-four reverse stock split which occurred after market close on September 27, 2013.



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Basic weighted average number of shares outstanding	74	83	83
Dilutive common share equivalents—stock options and other stock awards	—	—	—
Diluted weighted average number of shares outstanding	74	83	83

Basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014		January 31, 2013
Basic:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19
Diluted:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19

For the year ended January 30, 2015, all outstanding common stock equivalents were excluded in the computation of diluted (loss) per share because their effect would have been anti-dilutive due to the net loss for the period.

For the year ended January 31, 2014, the declared dividends exceeded current year earnings. Therefore, the Company was in a loss position for computing diluted (loss) per share and all outstanding common stock equivalents were excluded in the computation because their effect would have been anti-dilutive.

The following anti-dilutive stock-based awards were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented:



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Stock options excluded	4	5	5
Vesting stock awards excluded	3	3	—

In fiscal 2015, the Company entered into an Accelerated Share Repurchase agreement with a financial institution to repurchase shares of its outstanding common stock for an aggregate purchase price of $200 million. The Company paid $200 million to the financial institution and received an initial delivery of 4.5 million shares of its outstanding shares of common stock for an aggregate value of approximately $168 million. The final delivery consisted of approximately 0.8 million shares for a total value of approximately $32 million under the program and was completed in fiscal 2015. The purchase was allocated between additional paid in capital and retained earnings. All shares delivered were immediately retired. The total amount of shares delivered by the financial institution were adjusted by the volume weighted average price of the Company's stock over the valuation period specified in the ASR.

In fiscal 2014, the Company entered into an Accelerated Share Repurchase ("ASR") agreement with a different financial institution to repurchase shares of its outstanding common stock for an aggregate purchase price of $300 million. During the fourth quarter of fiscal 2014, the Company paid $300 million to the financial institution and received an initial delivery of 5.6 million shares of its outstanding shares of common stock for an aggregate value of $255 million. The remaining $45 million was recorded as a forward contract at January 31, 2014 indexed to the Company's common stock in additional paid in capital. The final delivery of approximately 1.0 million shares for a total value of $45 million under the program was completed during the first quarter of fiscal 2015. The purchase was allocated between additional paid in capital and retained earnings. All shares delivered were immediately retired. The total amount of shares delivered by the financial institution were adjusted by the volume weighted average price of the Company's stock over the valuation period specified in the ASR.

The delivery of 6.3 million and 5.6 million shares of Leidos common stock related to ASR purchases for the year ended January 30, 2015 and January 31, 2014, respectively, reduced the Company's outstanding shares used to determine the weighted average shares outstanding for purposes of calculating basic and diluted EPS for the periods presented.

Leidos, Inc.

Earnings Per Share (EPS)

Earnings Per Share (EPS):

A reconciliation of the (loss) income used to compute basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Basic EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing basic EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing basic EPS	$	(323	)	$	161		$	514
Diluted EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing diluted EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing diluted EPS	$	(323	)	$	161		$	514



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Basic weighted average number of shares outstanding	74	83	83
Dilutive common share equivalents—stock options and other stock awards	—	—	—
Diluted weighted average number of shares outstanding	74	83	83

Basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014		January 31, 2013
Basic:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19
Diluted:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19

The following anti-dilutive stock-based awards were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented:



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Stock options excluded	4	5	5
Vesting stock awards excluded	3	3	—

Stock-Based Compensation

12 Months Ended

Jan. 30, 2015

Stock-Based Compensation

Stock-Based Compensation:

Plan Summaries. At January 30, 2015, the Company had stock-based compensation awards outstanding under the following plans: the 2006 Equity Incentive Plan, the Management Stock Compensation Plan, the Stock Compensation Plan and the 2006 Employee Stock Purchase Plan ("ESPP"). Leidos issues new shares upon the issuance of stock awards, vesting of stock units or exercise of stock options under these plans.

The 2006 Equity Incentive Plan provides the Company’s and its affiliates’ employees, directors and consultants the opportunity to receive various types of stock-based compensation and cash awards. As of January 30, 2015, the Company has issued stock options, vested stock awards, restricted stock awards including restricted stock units ("vesting stock"), performance-based awards and cash awards under this plan. The 2006 Equity Incentive Plan provides that in the event of the Company’s merger with or into another corporation, a sale of substantially all of its assets or the transfer of more than 50% of Leidos' outstanding shares by tender offer or similar transaction, the successor entity may assume or substitute all outstanding awards. If the successor entity does not assume or substitute all outstanding awards, the vesting of all awards will accelerate and any repurchase rights on awards will terminate. If a successor entity assumes or substitutes all awards and a participant is involuntarily terminated by the successor entity for any reason other than death, disability or cause within 18 months following the change of control, all outstanding awards of the terminated participant will immediately vest and be exercisable for a period of six months following termination. In the event of a change of control, the vesting of all awards held by non-employee directors of the Company will accelerate. Stock awards granted under the plan prior to fiscal 2015 generally vest or become exercisable 20% a year for the first three years and 40% in the fourth year. In fiscal 2015, the Company began granting awards that generally vest or become exercisable 25% a year over four years. As of January 30, 2015, 3.8 million shares of Leidos' stock were reserved for future issuance under the 2006 Equity Incentive Plan.

The Company has a Management Stock Compensation Plan and a Stock Compensation Plan, together referred to as the Stock Compensation Plans. The board of directors may at any time amend or terminate the Stock Compensation Plans. The Stock Compensation Plans provide for awards in share units to eligible employees. Benefits from these plans are payable in shares of Leidos' stock that are held in a trust for the purpose of funding benefit payments to the plans’ participants. The fair value of the awards granted under the Stock Compensation Plans, which are vesting share unit awards, is based on the fair value of the award on the date of grant. Compensation expense is measured at grant date and generally recognized over the vesting period of four years. Awards granted vest 100% after four years following the date of the award. Upon a change in control of the Company (as defined by the Stock Compensation Plans), participant accounts will become fully vested and shares of Leidos stock held in the accounts will be immediately distributed. The Stock Compensation Plans do not provide for a maximum number of shares available for future issuance.

The Company has an ESPP which allows eligible employees to purchase shares of Leidos' stock at a discount of up to 15% of the fair market value on the date of purchase. During the three years ended January 30, 2015, the discount was 5% of the fair market value on the date of purchase thereby resulting in the ESPP being non-compensatory. As of January 30, 2015, 12.5 million shares of Leidos' stock were authorized and reserved for future issuance under the ESPP.

Stock-Based Compensation and Related Tax Benefits Recognized. Stock-based compensation and related tax benefits recognized under all plans were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Stock-based compensation expense:
Stock options	$	5	$	10	$	9
Vesting stock awards	35		46		44
Vested stock awards	2		—		—
Total stock-based compensation expense recorded in continuing operations	$	42	$	56	$	53
Total stock-based compensation expense recorded in discontinued operations	$	—	$	21	$	31
Tax benefits recognized from stock-based compensation	$	16	$	22	$	21

New SAIC Spin-off Adjustments. As a result of the separation of New SAIC, effective September 27, 2013, all outstanding equity awards related to New SAIC employees were assumed by New SAIC. Also in connection with the separation, adjustments were made to the share amounts and exercise prices of all remaining outstanding Leidos stock options, and the share amounts for vesting stock awards and performance-based stock awards as of the Distribution Date such that the adjustments were generally made to preserve the aggregate intrinsic value at the distribution date pursuant to the terms of the stock based compensation plans under which they were issued. Taking into account the change in the value of the Company’s common stock as a result of the distribution of the New SAIC shares, the conversion ratio applied to all outstanding equity awards at the distribution date was 1.4523. In addition, all outstanding equity awards reflected the Company’s one-for-four reverse stock split.

As a result of the spin-off adjustments, a modification was made on September 27, 2013 to Leidos and New SAIC stock options outstanding as of the distribution date by which additional stock-based compensation expense was recognized, as the fair value of the outstanding options immediately following the spin-off was greater than the fair value immediately prior to the spin-off. An increase of expense related to the modification of $3 million was recorded for awards that were fully vested on the modification date, and an additional $3 million of incremental fair value will be recorded in future periods for unvested awards that will continue to vest, resulting in a total additional stock compensation cost of $6 million with a weighted average modification fair value of $1.02 related to continuing Leidos stock options outstanding.

The spin-off adjustments are reflected in the tables below as well as the one-for-four stock split discussed in Note 1.

Stock Options. Stock options may be granted with exercise prices no less than the fair value of Leidos' common stock on the date of grant and for terms not greater than ten years. Beginning in fiscal year 2012, stock options granted under the 2006 Equity Incentive Plan have a term of seven years and a vesting period of four years, except for stock options granted to the Company’s outside directors, which have a vesting period of one year. Prior to fiscal year 2012, stock options granted under the 2006 Equity Incentive Plan had a term of five years. Stock options were granted with exercise prices equal to fair value on the date of grant.

In March 2013, Leidos' board of directors declared a special cash dividend of $4.00 per share of Leidos common stock and paid an aggregate $342 million on June 28, 2013 to stockholders of record on June 14, 2013. In connection with the special cash dividend, anti-dilutive adjustments were made to all outstanding stock options on the dividend record date to preserve their value following the special cash dividend, as required by the Company's 2006 Equity Incentive Plan. The modifications were made to reduce the exercise prices of the outstanding stock options and to increase the number of shares issuable upon the exercise of each option such that the aggregate difference between the market price and exercise price times the number of shares issuable upon exercise was substantially the same immediately before and after the payment of the special dividend. These adjustments did not result in additional share-based compensation expense, as the fair value of the outstanding options immediately following the payment of the special cash dividend was equal to the fair value immediately prior to such distribution. These adjustments are reflected in the “Special Dividend Adjustment” line in the stock option activity table below.

The fair value of the Company’s stock option awards is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The fair value of the Company’s stock option awards is generally expensed on a straight-line basis over the vesting period of four years, except for stock options granted to the Company’s outside directors, which is recognized over the vesting period of one year or less.

Prior to the Company's separation transaction, the expected term of all awards granted was derived from the Company's historical experience with the exception of awards granted to our outside directors prior to fiscal 2013 which were derived utilizing the “simplified” method presented in SEC Staff Accounting Bulletin Nos. 107 and 110, “Share-Based Payment”. Expected volatility was based on an average of the historical volatility of Leidos' stock and the implied volatility from traded options on Leidos stock. The risk-free interest rate was based on the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the stock option on the date of grant. The Company used historical data to estimate forfeitures.

After the separation transaction, the expected term for all awards granted is derived utilizing the “simplified” method due to the lack of historical experience post separation. Expected volatility is estimated based on a weighted average historical volatility of a group of publicly-traded peer companies for a period consistent with the expected option term. The Company will continue to use peer group volatility information, until historical volatility of the Company is relevant, to measure expected volatility for future option grants. The risk-free rate is derived in same manner as prior to the separation transaction. The Company uses historical data to estimate forfeitures.

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014 (Grants After Spin)			January 31, 2014 (Grants Before Spin)			January 31, 2013
Weighted average grant-date fair value	$	6.15		$	9.04		$	9.48		$	6.76		**
Expected term (in years)	4.7			4.8			5.0			5.0
Expected volatility	25.1		%	29.5		%	30.0		%	24.5		%
Risk-free interest rate	1.6		%	1.4		%	1.4		%	1.0		%
Dividend yield	2.9		%	2.4		%	2.8		%	3.7		%

** Adjusted for additional awards granted for the $4.00 Special Dividend

Stock option activity for each of the periods presented was as follows:



	Shares of stock under stock options		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
	(in millions)				(in years)	(in millions)
Outstanding at January 31, 2012	5.2		$	71.60	2.5	$	—
Options granted	1.3		52.79
Options forfeited or expired	(1.6	)	70.17
Options exercised	—		—			—
Outstanding at January 31, 2013	4.9		67.24		3.0	—
Options granted	1.4		54.86
Special dividend adjustments	0.4
Options forfeited or expired	(1.3	)	71.80
Spin-off Adjustment	(1.9	)	57.85
Outstanding at September 27, 2013 (before spin)	3.5		$	59.25	3.9	$	24



Outstanding at September 28, 2013 (after spin)	4.9		**	$	40.20	**	3.9	$	24
Options granted	0.2			45.16
Options forfeited or expired	(0.4	)		39.43
Options exercised	(0.2	)		43.10				1
Outstanding at January 31, 2014	4.5			$	40.32		3.8	$	25
Options granted	0.7			37.25
Options forfeited or expired	(1.5	)		43.90
Options exercised	(0.1	)		34.89				1
Outstanding at January 30, 2015	3.6			$	38.50		4.0	$	14
Exercisable at January 30, 2015	1.5			$	40.90		2.4	$	4
Vested and expected to vest in the future as of January 30, 2015	3.5			$	38.57		3.9	$	13

**Adjusted for Conversion Ratio of 1.4523

As of January 30, 2015, there was $5 million of unrecognized compensation cost, net of estimated forfeitures, related to stock options, which is expected to be recognized over a weighted-average period of 1.5 years. The tax benefits realized from exercises of stock options for the three years ending January 30, 2015 were immaterial. The fair value of stock exchanged upon exercises of stock options was $1 million for the year ended January 31, 2014.

Vesting Stock Awards. Compensation expense is measured at the grant date fair value and generally recognized over the vesting period of four years, or seven years for certain stock awards granted under the Stock Compensation Plans based upon required service conditions and in some cases performance conditions.

Vesting stock award activity for each of the periods presented was as follows:



	Shares of stock under stock awards		Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2012	3.0		$	70.00
Awards granted	1.7		52.48
Awards forfeited	(0.4	)	62.84
Awards vested	(1.2	)	71.28
Unvested at January 31, 2013	3.1		60.78
Awards granted	2.1		53.51
Awards forfeited	(0.4	)	58.28
Awards vested	(0.9	)	64.76
Spin-off Adjustment	(1.5	)	57.04
Unvested at September 27, 2013 (before spin)	2.4		$	59.98



Unvested stock awards at September 28, 2013 (after spin)	3.5		**	$	41.54	**
Awards granted	0.4		*	45.41		*
Awards forfeited	(0.2	)		39.75
Unvested stock awards at January 31, 2014	3.7			$	39.58
Awards granted	0.8			37.06
Awards forfeited	(0.5	)		39.05
Awards vested	(1.0	)		41.08
Unvested stock awards at January 30, 2015	3.0			$	38.51

* Includes Modified Performance-Based Awards

** Adjusted for Conversion Ratio of 1.4523

As of January 30, 2015, there was $45 million of unrecognized compensation cost, net of estimated forfeitures, related to vesting stock awards, which is expected to be recognized over a weighted average period of 1.6 years. The fair value of vesting stock awards that vested in fiscal 2015, 2014, and 2013 was $34 million, $49 million, and $66 million, respectively.

Performance-Based Stock Awards. The Company grants performance-based stock awards to certain officers and key employees of the Company under the 2006 Equity Incentive Plan. The Company’s performance-based stock awards vest and the stock is issued at the end of a three-year period based upon the achievement of specific performance criteria, with the number of shares ultimately awarded, if any, ranging up to 150% of the specified target awards. If performance is below the threshold level of performance, no shares will be issued. The performance period for certain performance-based stock awards was deemed completed as of the last fiscal quarter prior to the spin-off with the target shares prorated for the completed period earned. For all of the remaining target shares in the original award, the performance condition was removed and the awards are subject to vesting based on continued employment through the original performance period and reflected in the vesting stock awards table above.

There were no performance-based stock awards granted in fiscal 2014 and the outstanding awards represent the awards whose performance conditions were completed in the last fiscal quarter prior to the spin-off and continue to vest over the original service period of the award. For the fiscal 2015 awards granted, one-third of the target number of shares of stock granted under the awards will be allocated to each fiscal year over the three-year performance period and the actual number of shares to be issued with respect to each fiscal year will be based upon the achievement of that fiscal year’s performance criteria.

Performance-based stock award activity for each of the periods presented was as follows:



	Expected number of shares of stock to be issued under performance-based stock awards			Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2013	0.3			$	52.96
Awards canceled	(0.2	)	*	53.11		*
Unvested at January 31, 2014	0.1		**	$	36.65	**
Awards granted	0.1			37.64
Awards vested	(0.1	)		36.69
Unvested at January 30, 2015	0.1			$	37.70

* Includes Modified Performance-Based Stock Awards

**Adjusted for Conversion Ratio of 1.4523

The weighted average grant date fair value for performance-based stock during fiscal 2015 was $36.88 and $52.52 during fiscal 2013. There were no grants for performance-based stock awards during fiscal 2014.

As of January 30, 2015, there was $1.0 million of unrecognized compensation cost, net of estimated forfeitures, related to performance-based stock awards granted under the 2006 Equity Incentive Plan, which is expected to be recognized over a weighted average period of 2.0 years. The fair value of performance-based stock awards that vested in fiscal 2015 and fiscal 2014 was $2.3 million and $1.5 million, respectively. There were no vesting events for performance-based stock awards during fiscal 2013.

Leidos, Inc.

Stock-Based Compensation

Stock-Based Compensation:

Stock-Based Compensation and Related Tax Benefits Recognized. Stock-based compensation and related tax benefits recognized under all plans were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Stock-based compensation expense:
Stock options	$	5	$	10	$	9
Vesting stock awards	35		46		44
Vested stock awards	2		—		—
Total stock-based compensation expense recorded in continuing operations	$	42	$	56	$	53
Total stock-based compensation expense recorded in discontinued operations	$	—	$	21	$	31
Tax benefits recognized from stock-based compensation	$	16	$	22	$	21

The spin-off adjustments are reflected in the tables below as well as the one-for-four stock split discussed in Note 1.

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014 (Grants After Spin)			January 31, 2014 (Grants Before Spin)			January 31, 2013
Weighted average grant-date fair value	$	6.15		$	9.04		$	9.48		$	6.76		**
Expected term (in years)	4.7			4.8			5.0			5.0
Expected volatility	25.1		%	29.5		%	30.0		%	24.5		%
Risk-free interest rate	1.6		%	1.4		%	1.4		%	1.0		%
Dividend yield	2.9		%	2.4		%	2.8		%	3.7		%

** Adjusted for additional awards granted for the $4.00 Special Dividend

Stock option activity for each of the periods presented was as follows:



	Shares of stock under stock options		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
	(in millions)				(in years)	(in millions)
Outstanding at January 31, 2012	5.2		$	71.60	2.5	$	—
Options granted	1.3		52.79
Options forfeited or expired	(1.6	)	70.17
Options exercised	—		—			—
Outstanding at January 31, 2013	4.9		67.24		3.0	—
Options granted	1.4		54.86
Special dividend adjustments	0.4
Options forfeited or expired	(1.3	)	71.80
Spin-off Adjustment	(1.9	)	57.85
Outstanding at September 27, 2013 (before spin)	3.5		$	59.25	3.9	$	24



Outstanding at September 28, 2013 (after spin)	4.9		**	$	40.20	**	3.9	$	24
Options granted	0.2			45.16
Options forfeited or expired	(0.4	)		39.43
Options exercised	(0.2	)		43.10				1
Outstanding at January 31, 2014	4.5			$	40.32		3.8	$	25
Options granted	0.7			37.25
Options forfeited or expired	(1.5	)		43.90
Options exercised	(0.1	)		34.89				1
Outstanding at January 30, 2015	3.6			$	38.50		4.0	$	14
Exercisable at January 30, 2015	1.5			$	40.90		2.4	$	4
Vested and expected to vest in the future as of January 30, 2015	3.5			$	38.57		3.9	$	13

**Adjusted for Conversion Ratio of 1.4523

Vesting stock award activity for each of the periods presented was as follows:



	Shares of stock under stock awards		Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2012	3.0		$	70.00
Awards granted	1.7		52.48
Awards forfeited	(0.4	)	62.84
Awards vested	(1.2	)	71.28
Unvested at January 31, 2013	3.1		60.78
Awards granted	2.1		53.51
Awards forfeited	(0.4	)	58.28
Awards vested	(0.9	)	64.76
Spin-off Adjustment	(1.5	)	57.04
Unvested at September 27, 2013 (before spin)	2.4		$	59.98



Unvested stock awards at September 28, 2013 (after spin)	3.5		**	$	41.54	**
Awards granted	0.4		*	45.41		*
Awards forfeited	(0.2	)		39.75
Unvested stock awards at January 31, 2014	3.7			$	39.58
Awards granted	0.8			37.06
Awards forfeited	(0.5	)		39.05
Awards vested	(1.0	)		41.08
Unvested stock awards at January 30, 2015	3.0			$	38.51

* Includes Modified Performance-Based Awards

** Adjusted for Conversion Ratio of 1.4523

Performance-based stock award activity for each of the periods presented was as follows:



	Expected number of shares of stock to be issued under performance-based stock awards			Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2013	0.3			$	52.96
Awards canceled	(0.2	)	*	53.11		*
Unvested at January 31, 2014	0.1		**	$	36.65	**
Awards granted	0.1			37.64
Awards vested	(0.1	)		36.69
Unvested at January 30, 2015	0.1			$	37.70

* Includes Modified Performance-Based Stock Awards

**Adjusted for Conversion Ratio of 1.4523

Income Taxes

12 Months Ended

Jan. 30, 2015

Income Taxes

Income Taxes:

Substantially all of the Company’s income from continuing operations before income taxes for the three years ended January 30, 2015 was earned in the United States. The provision for income taxes related to continuing operations for each of the three years ended January 30, 2015 included the following:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Current:
Federal and foreign	$	16		$	32		$	(52	)
State	(6		)	13			9
Deferred:
Federal and foreign	26			(28		)	55
State	11			(13		)	10
Total	$	47		$	4		$	22

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for each of the three years ended January 30, 2015 follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(dollars in millions)
Amount computed at the statutory federal income tax rate (35%)	$	(99	)	$	31		$	121
State income taxes, net of federal tax benefit	3			—			10
Taxable conversion of subsidiary	(116		)	—			—
Change in valuation allowance for deferred tax assets	105			—			—
Change in accruals for uncertain tax positions	2			(5		)	(1		)
CityTime uncertain tax liability	—			—			(96		)
Research and development credits	(4		)	(3		)	(5		)
Dividends paid to employee stock ownership plan	(4		)	(22		)	(9		)
U.S. manufacturing activity benefit	—			(3		)	(1		)
Non-deductible penalties	—			4			—
Non-deductible goodwill	156			—			—
Other	4			2			3
Total	$	47		$	4		$	22
Effective income tax rate	(16.6		)%	4.5		%	6.4		%

The Company's effective tax rate in fiscal 2015 was negatively impacted by the goodwill impairment charge of $486 million, recorded in the three months ended August 1, 2014, which was mostly not deductible. The effective tax rate was also impacted favorably by Leidos’ conversion of a subsidiary treated as a corporation to a LLC regarded as a partnership for U.S. federal and state income tax purposes. The Company had not previously recorded a benefit for the excess tax basis over the investment in the stock of the domestic subsidiary. As a result of the conversion, the Company recognized a capital loss on its investment in stock and an ordinary gain on the subsidiary's assets. The capital loss of $160 million (tax effected) will be used to offset $58 million of capital gains recognized during fiscal 2015 and prior years with the remaining $102 million of capital losses recorded as a long term deferred tax asset. The Company may not generate capital gains to realize the benefit from the capital loss carryforward. In recognition of this uncertainty, the Company has recorded a $102 million valuation allowance on the deferred tax asset related to the capital loss carryforward. The conversion also created a $34 million (tax effected) ordinary gain recognized in fiscal 2015.

The Company’s lower effective income tax rate for fiscal 2014 when compared to fiscal 2013 was primarily due to lower earnings in fiscal 2014, the tax deductibility of the special dividend on shares held by the Leidos Retirement Plan (an employee stock ownership plan) and the resolution of certain tax contingencies with the tax authorities resulting in the recognition of an income tax benefit of approximately $7 million. The effective tax rate for fiscal 2013 benefited from a $96 million reduction in the provision for income tax as the result of an issue resolution agreement with the IRS with respect to the tax deductible portion of the CityTime payment which is described in Note 19.

In fiscal 2014, the Company benefited from the dividends paid to New SAIC’s employees participating in the plan up to the date of the spin-off and the special dividend of $7 million and $11 million, respectively.

In fiscal 2015, discontinued operations reflect a tax benefit of $18 million due to the conversion of one of the Company's domestic subsidiaries held in discontinued operations. This conversion resulted in a deemed liquidation for U.S. tax purposes and triggered tax deductions and an income tax benefit.

On September 13, 2013, the Treasury Department and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of amounts paid to acquire, produce, improve, or dispose of tangible personal property. These regulations are generally effective for tax years beginning on or after January 1, 2014. The application of these regulations did not have a material impact on our consolidated financial statements.

Deferred income taxes are recorded for differences in the basis of assets and liabilities for financial reporting purposes and tax reporting purposes. Deferred tax assets (liabilities) were comprised of the following:



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Accrued vacation and bonuses	$	44		$	62
Investments	3			3
Deferred compensation	39			38
Vesting stock awards	28			34
Credits and net operating losses carryovers	9			27
Employee benefit contributions	4			3
Capital loss carryover	113			—
Reserves	41			51
Deferred rent and tenant allowances	15			14
Other	15			9
Total deferred tax assets	311			241
Valuation allowance	(120		)	(7		)
Deferred tax assets, net of valuation allowance	191			234

Deferred revenue	(47		)	(31		)
Fixed asset basis differences	—			(27		)
Purchased intangible assets	(121		)	(138		)
Partnership interest	(10		)	—
Other	(8		)	—
Total deferred tax liabilities	(186		)	(196		)
Net deferred tax assets	$	5		$	38

Net deferred tax assets (liabilities) were as follows:



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Net current deferred tax assets	$	12		$	89
Net non-current deferred tax assets	14			15
Net non-current deferred tax liabilities	(21		)	(66		)
Total net deferred tax assets	$	5		$	38

At January 30, 2015, the Company had no federal net operating loss (NOL) carryforwards and has $12 million of state tax credits at January 30, 2015, which expire in fiscal 2018 to fiscal 2029. The Company expects to utilize $8 million of these state tax credits.

As of January 30, 2015, the Company has a capital loss carryforward of $292 million which will expire in 2020. The Company does not believe it will be able to generate capital gains to realize the benefit from the capital loss carryforward. As a result, a full valuation allowance has been provided in fiscal 2015.

The Company’s unrecognized tax benefits are primarily related to certain recurring deductions customary for the Company’s industry. The changes in the unrecognized tax benefits, excluding accrued interest and penalties, were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Unrecognized tax benefits at beginning of year	$	14		$	21		$	129
Additions for tax positions related to current year	2			—			—
Additions for tax positions related to prior years	11			2			2
Reductions for tax positions related to prior years	(5		)	—			(107		)
Settlements with taxing authorities	(1		)	—			(1		)
Lapse of statute of limitations	(4		)	(9		)	(2		)
Unrecognized tax benefits at end of year	$	17		$	14		$	21
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	5		$	6		$	10

In fiscal 2015, the Company's unrecognized tax benefits increased primarily due to the uncertain portion of the deferral of certain revenues, certain affirmative state claims and the research and development tax credit offset by a decrease due to the expiration of federal and several states statutes of limitations and the termination of certain state credits. In fiscal 2014, the Company’s unrecognized tax benefits decreased primarily due to the expiration of the fiscal 2009 statute of limitations. In fiscal 2013, the Company’s unrecognized tax benefits decreased primarily due to the issue resolution agreement with the IRS with respect to the CityTime loss provision recorded in the prior year.

At each of January 30, 2015 and January 31, 2014, accrued interest and penalties totaled $2 million and $2 million, respectively. A negligible amount of interest and penalties were recognized in the consolidated statements of income in fiscal 2015, 2014, and 2013.

At January 30, 2015, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $19 million, $6 million of which were classified as other long-term liabilities on the consolidated balance sheet. The balance of unrecognized tax benefits at January 31, 2014 included liabilities for uncertain tax positions of $16 million, $12 million of which were classified as other long-term liabilities on the consolidated balance sheet.

The Company files income tax returns in the United States and various state and foreign jurisdictions and is subject to routine compliance reviews by the IRS and other taxing authorities. The Company has effectively settled with the IRS for all fiscal years prior to 2014. With a few exceptions, as of January 30, 2015, the Company is no longer subject to state, local, or foreign examinations by the tax authorities for years before fiscal 2012.

During the next 12 months, it is reasonably possible that resolution of reviews by taxing authorities, both domestic and international, could be reached with respect to $14 million of the Company’s unrecognized tax benefits, depending on the timing of ongoing examinations, any litigation and expiration of statute of limitations, either because the Company’s tax positions are sustained or because the Company agrees to their disallowance and pays the related income tax. While the Company believes it has adequate accruals for uncertain tax positions, the tax authorities may determine that the Company owes taxes in excess of recorded accruals or the recorded accruals may be in excess of the final settlement amounts agreed to by tax authorities.

Leidos, Inc.

Income Taxes

Income Taxes:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Current:
Federal and foreign	$	16		$	32		$	(52	)
State	(6		)	13			9
Deferred:
Federal and foreign	26			(28		)	55
State	11			(13		)	10
Total	$	47		$	4		$	22



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(dollars in millions)
Amount computed at the statutory federal income tax rate (35%)	$	(99	)	$	31		$	121
State income taxes, net of federal tax benefit	3			—			10
Taxable conversion of subsidiary	(116		)	—			—
Change in valuation allowance for deferred tax assets	105			—			—
Change in accruals for uncertain tax positions	2			(5		)	(1		)
CityTime uncertain tax liability	—			—			(96		)
Research and development credits	(4		)	(3		)	(5		)
Dividends paid to employee stock ownership plan	(4		)	(22		)	(9		)
U.S. manufacturing activity benefit	—			(3		)	(1		)
Non-deductible penalties	—			4			—
Non-deductible goodwill	156			—			—
Other	4			2			3
Total	$	47		$	4		$	22
Effective income tax rate	(16.6		)%	4.5		%	6.4		%



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Accrued vacation and bonuses	$	44		$	62
Investments	3			3
Deferred compensation	39			38
Vesting stock awards	28			34
Credits and net operating losses carryovers	9			27
Employee benefit contributions	4			3
Capital loss carryover	113			—
Reserves	41			51
Deferred rent and tenant allowances	15			14
Other	15			9
Total deferred tax assets	311			241
Valuation allowance	(120		)	(7		)
Deferred tax assets, net of valuation allowance	191			234

Deferred revenue	(47		)	(31		)
Fixed asset basis differences	—			(27		)
Purchased intangible assets	(121		)	(138		)
Partnership interest	(10		)	—
Other	(8		)	—
Total deferred tax liabilities	(186		)	(196		)
Net deferred tax assets	$	5		$	38

Net deferred tax assets (liabilities) were as follows:



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Net current deferred tax assets	$	12		$	89
Net non-current deferred tax assets	14			15
Net non-current deferred tax liabilities	(21		)	(66		)
Total net deferred tax assets	$	5		$	38



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Unrecognized tax benefits at beginning of year	$	14		$	21		$	129
Additions for tax positions related to current year	2			—			—
Additions for tax positions related to prior years	11			2			2
Reductions for tax positions related to prior years	(5		)	—			(107		)
Settlements with taxing authorities	(1		)	—			(1		)
Lapse of statute of limitations	(4		)	(9		)	(2		)
Unrecognized tax benefits at end of year	$	17		$	14		$	21
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	5		$	6		$	10

Retirement Plans	12 Months Ended
Retirement Plans	Jan. 30, 2015
Retirement Plans	Retirement Plans: Defined Contribution Plans The Company sponsors several defined contribution plans, including the Leidos, Inc. Retirement Plan ("the Retirement Plan") which is both a 401(k) plan and an employee stock ownership plan, in which most employees are eligible to participate. These plans allow eligible participants to contribute a portion of their income through payroll deductions and the Company may also make discretionary contributions. Company contributions expensed for the Retirement Plan were $62 million, $81 million and $92 million in fiscal 2015, 2014, and 2013, respectively. At the end of fiscal 2014, the Company elected to decrease its discretionary employer match contribution percentage and also provided for an additional Company contribution to be given to all eligible employees, regardless of whether the employee participates in the 401(k) plan, payable at the end of the calendar year to all employees employed on the last day of the calendar year, with certain exceptions. Deferred Compensation Plans The Company maintains two deferred compensation plans, the Keystaff Deferral Plan (KDP) and the Key Executive Stock Deferral Plan (KESDP), for the benefit of certain management or highly compensated employees or Board of Directors and allows eligible participants to elect to defer all or a portion of their annual bonus, sign-on bonus or certain other bonuses. Directors may also elect to defer their director fees and retainers. The Company makes no contributions to the KDP but maintains participant accounts for deferred amounts and interest earned. Interest is accrued based on the Moody’s Seasoned Corporate Bond Rate. Deferred balances are generally paid upon retirement or termination. Under the KESDP, eligible participants may elect to defer in share units all or a portion of their bonus awards granted under the 2006 Equity Incentive Plan (see Note 13) and prior plans. The Company makes no contributions to the accounts of KESDP participants. Benefits from the KESDP are payable in shares of Leidos' stock that may be held in a trust for the purpose of funding benefit payments to KESDP participants. Deferred balances will generally be paid upon retirement or termination. Beginning in fiscal 2012, the Company sponsored a 401(k) Excess Deferral Plan (Excess Plan) for the benefit of certain management or highly compensated employees that allows participants to elect to defer up to 20% of their eligible salary once the participant has met the contribution limit imposed on the Leidos, Inc. Retirement Plan. The Company makes matching contributions to participants who have received a reduced Company contribution in the Leidos, Inc. Retirement Plan due to the participant’s deferral of salary into the Excess Plan which are included in the contributions expensed amount for defined contributions plans in the above paragraph. Defined Benefit Plans The Company sponsors a defined benefit pension plan in the United Kingdom for plan participants that primarily performed services on an expired customer contract. While benefits are no longer accruing under the plan, the Company has continuing defined benefit pension obligations with respect to certain plan participants. In fiscal 2012, the Company sold certain components of its business, including the component of its business that contained this pension and employed the pension plan participants. The Company has classified the operating results of this business component, including pension expense through the date of sale, as discontinued operations for all periods presented. Pursuant to the definitive sale agreement, the Company retained the assets and obligations of this defined benefit pension plan. As a result of retaining the pension obligation, the remaining immaterial components of ongoing pension expense, primarily interest costs and assumed return on plan assets subsequent to the sale, are recorded in continuing operations. In fiscal 2013, certain plan participants in the Company’s defined benefit pension plan, who previously transferred their employment to a successor contractor upon the expiration of the customer contract, elected to transfer, and the Company transferred, $46 million of pension plan assets to that successor contractor’s plan and settled $63 million of related pension plan obligations. As a result of the transfer, the Company recorded an immaterial settlement gain in selling, general and administrative expenses in fiscal 2013. The projected benefit obligation as of January 30, 2015 and January 31, 2014 was $121 million and $106 million, respectively. The fair value of plan assets as of January 30, 2015 and January 31, 2014 was $113 million and $98 million, respectively. The plan funding status was underfunded by $8 million and $9 million as of January 30, 2015 and January 31, 2014, respectively. The plan’s assets consist of investments in pooled funds that contain investments with values based on quoted market prices, but for which the pools are not valued on a daily quoted market basis (Level 2 inputs). Other The Company also sponsors a defined benefit pension plan for employees working on one U.S. Government contract. As part of the contractual agreement, the customer reimburses the Company for contributions made to the plan that are allowable under government contract cost accounting requirements. If the Company were to cease being the contractor as a result of a recompetition process, this defined benefit pension plan and related plan assets and liabilities would transfer to the new contractor. If the contract expires or is terminated with no transfer of the plan to a successor contractor, any amount by which plan liabilities exceed plan assets, as of that date, will be reimbursed by the U.S. Government customer. Since the Company is not responsible for the current or future funded status of this plan, no assets or liabilities arising from its funded status are recorded in the Company’s consolidated financial statements and no amounts associated with this plan are included in the defined benefit plan disclosures above. As of June 2014, the majority of the participants were transferred from the defined benefit pension plan into a new defined contribution plan for which there is a matching Company contribution. These participants can no longer make contributions into the defined benefit pension plan or earn future pension benefits. The remaining participants will continue in the defined benefit pension plan and will continue to earn future pension benefits however, any Company matching contributions previously made into the plan have been discontinued.
Leidos, Inc.
Retirement Plans	Retirement Plans: Defined Contribution Plans The Company sponsors several defined contribution plans, including the Leidos, Inc. Retirement Plan ("the Retirement Plan") which is both a 401(k) plan and an employee stock ownership plan, in which most employees are eligible to participate. These plans allow eligible participants to contribute a portion of their income through payroll deductions and the Company may also make discretionary contributions. Company contributions expensed for the Retirement Plan were $62 million, $81 million and $92 million in fiscal 2015, 2014, and 2013, respectively. At the end of fiscal 2014, the Company elected to decrease its discretionary employer match contribution percentage and also provided for an additional Company contribution to be given to all eligible employees, regardless of whether the employee participates in the 401(k) plan, payable at the end of the calendar year to all employees employed on the last day of the calendar year, with certain exceptions. Deferred Compensation Plans The Company maintains two deferred compensation plans, the Keystaff Deferral Plan (KDP) and the Key Executive Stock Deferral Plan (KESDP), for the benefit of certain management or highly compensated employees or Board of Directors and allows eligible participants to elect to defer all or a portion of their annual bonus, sign-on bonus or certain other bonuses. Directors may also elect to defer their director fees and retainers. The Company makes no contributions to the KDP but maintains participant accounts for deferred amounts and interest earned. Interest is accrued based on the Moody’s Seasoned Corporate Bond Rate. Deferred balances are generally paid upon retirement or termination. Under the KESDP, eligible participants may elect to defer in share units all or a portion of their bonus awards granted under the 2006 Equity Incentive Plan (see Note 13) and prior plans. The Company makes no contributions to the accounts of KESDP participants. Benefits from the KESDP are payable in shares of Leidos' stock that may be held in a trust for the purpose of funding benefit payments to KESDP participants. Deferred balances will generally be paid upon retirement or termination. Beginning in fiscal 2012, the Company sponsored a 401(k) Excess Deferral Plan (Excess Plan) for the benefit of certain management or highly compensated employees that allows participants to elect to defer up to 20% of their eligible salary once the participant has met the contribution limit imposed on the Leidos, Inc. Retirement Plan. The Company makes matching contributions to participants who have received a reduced Company contribution in the Leidos, Inc. Retirement Plan due to the participant’s deferral of salary into the Excess Plan which are included in the contributions expensed amount for defined contributions plans in the above paragraph. Defined Benefit Plans The Company sponsors a defined benefit pension plan in the United Kingdom for plan participants that primarily performed services on an expired customer contract. While benefits are no longer accruing under the plan, the Company has continuing defined benefit pension obligations with respect to certain plan participants. In fiscal 2012, the Company sold certain components of its business, including the component of its business that contained this pension and employed the pension plan participants. The Company has classified the operating results of this business component, including pension expense through the date of sale, as discontinued operations for all periods presented. Pursuant to the definitive sale agreement, the Company retained the assets and obligations of this defined benefit pension plan. As a result of retaining the pension obligation, the remaining immaterial components of ongoing pension expense, primarily interest costs and assumed return on plan assets subsequent to the sale, are recorded in continuing operations. In fiscal 2013, certain plan participants in the Company’s defined benefit pension plan, who previously transferred their employment to a successor contractor upon the expiration of the customer contract, elected to transfer, and the Company transferred, $46 million of pension plan assets to that successor contractor’s plan and settled $63 million of related pension plan obligations. As a result of the transfer, the Company recorded an immaterial settlement gain in selling, general and administrative expenses in fiscal 2013. The projected benefit obligation as of January 30, 2015 and January 31, 2014 was $121 million and $106 million, respectively. The fair value of plan assets as of January 30, 2015 and January 31, 2014 was $113 million and $98 million, respectively. The plan funding status was underfunded by $8 million and $9 million as of January 30, 2015 and January 31, 2014, respectively. The plan’s assets consist of investments in pooled funds that contain investments with values based on quoted market prices, but for which the pools are not valued on a daily quoted market basis (Level 2 inputs). Other The Company also sponsors a defined benefit pension plan for employees working on one U.S. Government contract. As part of the contractual agreement, the customer reimburses the Company for contributions made to the plan that are allowable under government contract cost accounting requirements. If the Company were to cease being the contractor as a result of a recompetition process, this defined benefit pension plan and related plan assets and liabilities would transfer to the new contractor. If the contract expires or is terminated with no transfer of the plan to a successor contractor, any amount by which plan liabilities exceed plan assets, as of that date, will be reimbursed by the U.S. Government customer. Since the Company is not responsible for the current or future funded status of this plan, no assets or liabilities arising from its funded status are recorded in the Company’s consolidated financial statements and no amounts associated with this plan are included in the defined benefit plan disclosures above. As of June 2014, the majority of the participants were transferred from the defined benefit pension plan into a new defined contribution plan for which there is a matching Company contribution. These participants can no longer make contributions into the defined benefit pension plan or earn future pension benefits. The remaining participants will continue in the defined benefit pension plan and will continue to earn future pension benefits however, any Company matching contributions previously made into the plan have been discontinued.

Leases

12 Months Ended

Jan. 30, 2015

Leases

Leases:

The Company occupies most of its facilities under operating leases. Most of the leases require the Company to pay maintenance and operating expenses such as taxes, insurance and utilities and also contain renewal options to extend the lease and provisions for periodic rate escalations to reflect inflationary increases. Certain equipment is leased under short-term or cancelable operating leases. Rental expense for facilities and equipment related to continuing operations for the three fiscal years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Gross rental expense	$	107		$	181		$	154
Less sublease income	(9		)	(6		)	(4		)
Net rental expense	$	98		$	175		$	150

In fiscal 2015 the Company continued its real estate optimization initiatives to reduce future rental expense and exited additional facilities from those exited in connection with the spin-off activities in the prior year and incurred lease termination costs. Rental expense in the table above for fiscal 2014 includes lease termination costs that were attributed to the spin-off transaction, whereby the Company took significant actions in order to align its cost structure post-separation to reduce its real estate footprint by vacating facilities that are not necessary for its future requirements.

Future minimum lease commitments and lease or sublease receipts under non-cancelable operating leases in effect at January 30, 2015 are as follows:



Year Ending January 30	Operating lease commitment		Sublease receipts
	(in millions)
2016	$	88	$	7
2017	76		7
2018	66		5
2019	55		4
2020	41		3
2021 and thereafter	70		9
Total	$	396	$	35

As of January 30, 2015, the Company had capital lease obligations of $2 million that are payable over the next three years.

Sale and Leaseback Agreement

On May 3, 2013, the Company entered into a purchase and sale agreement relating to the sale of approximately 18 acres of land in Fairfax County, Virginia, including four office buildings, a multi-level parking garage, surface parking lots, and other related improvements and structures, as well as tangible personal property and third-party leases. This sale is expected to be completed in a series of transactions over approximately six years.

On July 26, 2013, the Company closed the first phase of the purchase and sale agreement and received proceeds of $83 million, net of selling costs. The Company leased back from the buyer three of the office buildings over varying lease terms. The sale of two of the office buildings was accounted for as a sale-leaseback transaction with proceeds from the sale of $40 million, a corresponding book value of $42 million resulting in a $2 million loss recorded in selling, general and administrative expenses. These leases were accounted for as operating leases over a six months term which ended on January 31, 2014. The sale of the third office building is being accounted for as a financing transaction. The allocated consideration received of $38 million was recorded as a note payable to be paid over seven years with interest at the lessee’s incremental borrowing rate, estimated at 3.7%. The right of use for the multi-level parking garage and surface parking lots were allocated proceeds of $1 million and $4 million, respectively, and were accounted for as other long term liabilities.

Leidos, Inc.

Leases

Leases:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Gross rental expense	$	107		$	181		$	154
Less sublease income	(9		)	(6		)	(4		)
Net rental expense	$	98		$	175		$	150

Future minimum lease commitments and lease or sublease receipts under non-cancelable operating leases in effect at January 30, 2015 are as follows:



Year Ending January 30	Operating lease commitment		Sublease receipts
	(in millions)
2016	$	88	$	7
2017	76		7
2018	66		5
2019	55		4
2020	41		3
2021 and thereafter	70		9
Total	$	396	$	35

As of January 30, 2015, the Company had capital lease obligations of $2 million that are payable over the next three years.

Sale and Leaseback Agreement

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References + Details

Supplementary Income Statement and Cash Flow Information

12 Months Ended

Jan. 30, 2015

Supplementary Cash Flow Information

Supplementary Cash Flow Information:

Supplementary cash flow information, including non-cash investing and financing activities, for the three fiscal years ended January 30, 2015 was as follows:



	Year Ended
	January 30, 2015		January 31, 2014			January 31, 2013
	(in millions)
Vested stock issued as settlement of annual bonus accruals	$	1	$	2		$	2
Stock issued in lieu of cash dividends	$	3	$	18		$	3
Capital lease obligations	$	—	$	1		$	—
Fair value of assets acquired in acquisitions	$	—	$	259		$	541
Cash paid in acquisitions, net of cash acquired of $9 million in fiscal 2013	$	—	$	(3	)	$	(483	)
Forgiveness of accounts receivable to acquire equity interest in business combination	$	—	$	(105	)	$	—
Accrued liability for acquisition of business	$	—	$	(3	)	$	(13	)
Liabilities assumed in acquisitions	$	—	$	148		$	45
Cash paid for interest (including discontinued operations)	$	74	$	82		$	92
Cash paid for income taxes (including discontinued operations)	$	55	$	63		$	128

Leidos, Inc.

Supplementary Cash Flow Information

Supplementary Cash Flow Information:

Supplementary cash flow information, including non-cash investing and financing activities, for the three fiscal years ended January 30, 2015 was as follows:



	Year Ended
	January 30, 2015		January 31, 2014			January 31, 2013
	(in millions)
Vested stock issued as settlement of annual bonus accruals	$	1	$	2		$	2
Stock issued in lieu of cash dividends	$	3	$	18		$	3
Capital lease obligations	$	—	$	1		$	—
Fair value of assets acquired in acquisitions	$	—	$	259		$	541
Cash paid in acquisitions, net of cash acquired of $9 million in fiscal 2013	$	—	$	(3	)	$	(483	)
Forgiveness of accounts receivable to acquire equity interest in business combination	$	—	$	(105	)	$	—
Accrued liability for acquisition of business	$	—	$	(3	)	$	(13	)
Liabilities assumed in acquisitions	$	—	$	148		$	45
Cash paid for interest (including discontinued operations)	$	74	$	82		$	92
Cash paid for income taxes (including discontinued operations)	$	55	$	63		$	128

Business Segment Information

12 Months Ended

Jan. 30, 2015

Business Segment Information

Business Segment Information:

The Company defines its reportable segments based on the way the chief operating decision maker (CODM), currently its chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. The Company has the following reportable segments: National Security Solutions, Health and Engineering, and Corporate and Other.

National Security Solutions provides solutions and systems for air, land, sea, space and cyberspace for the U.S. intelligence community, the DoD, the military services, the DHS and government agencies of U.S. allies abroad. The Company's solutions deliver technology, large scale intelligence systems, command and control, data analytics, cybersecurity, logistics, and intelligence analysis and operations support to critical missions around the world. Major customers of National Security Solutions include national and military intelligence agencies, and other federal, civilian and commercial customers in the national security complex.

Health and Engineering businesses capitalize on our knowledge and experience in technology and innovation. Major customers of Health and Engineering primarily include the U.S. federal government, state and local governmental agencies, foreign governments, hospitals and commercial enterprises in various industries. The Health business provides services and solutions to commercial hospitals and the Department of Defense as well as conducting research and development for U.S. Government and Commercial enterprises in the life sciences field. The Health business provides health systems integration services to implement and optimize the use of electronic health records, apply data analytics and behavioral health research to help enable customers to improve healthcare quality and patient outcomes, detect and prevent diseases, enhance scientific discovery, and reduce costs to the healthcare system. The Engineering business leverages technology and skills in process engineering, engineering design and systems integration to create innovative and cost effective solutions for its customers. These include products and solutions in energy generation, efficiency and management, environmental services, securing critical infrastructure, and designing and building construction projects.

Corporate and Other includes the operations of the Company’s internal real estate management subsidiary, various corporate activities, certain corporate expense items that are not reimbursed by the Company’s U.S. Government customers and certain other revenue and expense items excluded from the CODM’s evaluation of a reportable segment’s performance.

The following tables summarize business segment information for each of the three years ended January 30, 2015:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues:
National Security Solutions	$	3,594		$	4,049		$	4,650
Health and Engineering	1,485			1,718			1,805
Corporate and Other	(16		)	(9		)	(1		)
Intersegment elimination	—			(3		)	(5		)
Total revenues	$	5,063		$	5,755		$	6,449
Operating income (loss):
National Security Solutions	$	286		$	292		$	360
Health and Engineering	(472		)	20			138
Corporate and Other	(28		)	(149		)	(77		)
Total operating (loss) income	$	(214	)	$	163		$	421
Amortization of intangible assets:
National Security Solutions	$	—		$	3		$	5
Health and Engineering	15			32			30
Total amortization of intangible assets	$	15		$	35		$	35

Asset information by segment is not a key measure of performance used by the CODM. Interest income, interest expense and provision for income taxes, as reported in the consolidated financial statements, are not part of operating income and are primarily recorded at the corporate level. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in numerous indirect cost pools which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. While depreciation expense is a component of the allocated costs, the allocation process precludes depreciation expense from being specifically identified by the Company’s individual reportable segments. For this reason, depreciation expense by reportable segment has not been reported above.

Substantially all of the Company’s revenues and tangible long-lived assets are generated by or located in the United States. As such, the financial information by geographic location is not presented.

The Company’s total revenues are largely attributable to prime contracts with the U.S. Government or to subcontracts with other contractors engaged in work for the U.S. Government. The percentages of total revenues for the U.S. Government, its agencies and other customers comprising more than 10% of total revenues in any of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
U.S. Government	79	%	78	%	81	%
U.S. DoD	67	%	68	%	70	%
U.S. Army	16	%	19	%	23	%
Maryland Procurement Office	10	%	8	%	8	%

Leidos, Inc.

Business Segment Information

Business Segment Information:

The following tables summarize business segment information for each of the three years ended January 30, 2015:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues:
National Security Solutions	$	3,594		$	4,049		$	4,650
Health and Engineering	1,485			1,718			1,805
Corporate and Other	(16		)	(9		)	(1		)
Intersegment elimination	—			(3		)	(5		)
Total revenues	$	5,063		$	5,755		$	6,449
Operating income (loss):
National Security Solutions	$	286		$	292		$	360
Health and Engineering	(472		)	20			138
Corporate and Other	(28		)	(149		)	(77		)
Total operating (loss) income	$	(214	)	$	163		$	421
Amortization of intangible assets:
National Security Solutions	$	—		$	3		$	5
Health and Engineering	15			32			30
Total amortization of intangible assets	$	15		$	35		$	35



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
U.S. Government	79	%	78	%	81	%
U.S. DoD	67	%	68	%	70	%
U.S. Army	16	%	19	%	23	%
Maryland Procurement Office	10	%	8	%	8	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Legal Proceedings	12 Months Ended
Legal Proceedings	Jan. 30, 2015
Legal Proceedings	Legal Proceedings: Timekeeping Contract with City of New York In March 2012, the Company reached a settlement with the U.S. Attorney’s Office for the Southern District of New York and the City of New York ("City") relating to investigations being conducted by the U.S. Attorney’s Office and the City with respect to the Company’s contract to develop and implement an automated time and attendance and workforce management system ("CityTime") for certain agencies of the City. As part of this settlement, the Company entered into a deferred prosecution agreement ("DPA") with the U.S. Attorney’s Office, under which the Company paid approximately $500 million and the U.S. Attorney’s Office deferred prosecution of a single criminal count against the Company, which alleged that the Company, through the conduct of certain managerial employees and others, caused the City to significantly overpay for the CityTime system. Leidos fully satisfied the requirements of the DPA during its three year term and the DPA expired on March 14, 2015. As a result, the U.S. Attorney's Office filed an application with the Court to dispose of the charge that was filed against Leidos as part of the DPA. On March 16, 2015, the Court entered an order disposing of the pending charge. In August 2012, the Company entered into an administrative agreement with the U.S. Army, on behalf of all agencies of the U.S. Government that confirms the Company’s continuing eligibility to enter into and perform contracts with all agencies of the U.S. Government following the CityTime settlement. The Army has determined that the U.S. Government will have adequate assurances under the terms of the administrative agreement that initiation of suspension or debarment is not necessary to protect the U.S. Government’s interests following the CityTime settlement. Under the terms of the administrative agreement, the Company has agreed, among other things, to maintain a contractor responsibility program having the specific elements described in the administrative agreement, including retaining a monitor and providing certain reports to the U.S. Army. The administrative agreement will continue in effect for five years, provided that the Company may request earlier termination after three years. Data Privacy Litigation The Company was previously a defendant in a putative class action, In Re: Science Applications International Corporation ("SAIC") Backup Tape Data Theft Litigation, which was an Multidistrict Litigation ("MDL") action in U.S. District Court for the District of Columbia relating to the theft of computer back-up tapes from a vehicle of a company employee. In May 2014, the District Court dismissed all but two plaintiffs from the MDL action. In June 2014, Leidos and its co-defendant, TRICARE, entered into settlement agreements with the remaining two plaintiffs who subsequently dismissed their claims with prejudice. On September 20, 2014, the Company was named as a defendant in a putative class action, Martin Fernandez, on Behalf Of Himself And All Other Similarly Situated v. Leidos, Inc. in the Eastern District Court of California, related to the same theft of computer backup tapes. The recent complaint includes allegations of violations of the California Confidentiality of Medical Information Act, the California Unfair Competition Law, and other claims. The Company intends to vigorously defend against these claims, and filed a motion to dismiss in January 2015. Derivative and Securities Litigation Between February and April 2012, alleged stockholders filed three putative securities class actions. One case was withdrawn and two cases were consolidated in the U.S. District Court for the Southern District of New York in In re SAIC, Inc. Securities Litigation. The consolidated securities complaint named as defendants the Company, its chief financial officer, two former chief executive officers, a former group president, and the former program manager on the CityTime program, and was filed purportedly on behalf of all purchasers of the Company's common stock from April 11, 2007 through September 1, 2011. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company’s revenues, operating income, and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying Leidos’ stock at an inflated price. On October 1, 2013, the District Court dismissed many claims in the complaint with prejudice and on January 30, 2014, the District Court entered an order dismissing all remaining claims with prejudice and without leave to replead. The plaintiffs have moved to vacate the District Court's judgment or obtain relief from the judgment and for leave to file an amended complaint. On September 2014, the District Court denied plaintiff's motions. The plaintiffs filed a notice of appeal on October 30, 2014 to the United States Court of Appeals for the Second Circuit where the appeal remains pending. Greek Government Contract Background and Arbitration. In May 2003, the Company entered into a firm-fixed-price contract with the Hellenic Republic of Greece (the Customer) to provide a Command, Control, Communications, Coordination and Integration System (the System) to support the 2004 Athens Summer Olympic Games (the Olympics) and to serve as the security system for the Customer’s public order departments following completion of the Olympics. In November 2008, the Customer accepted the System in writing pursuant to the requirements of the contract. At the time, the Customer determined that the System substantially complied with the terms of the contract and accepted the System with certain alleged minor omissions and deviations. Upon System acceptance, the Company invoiced the Customer for approximately $16 million, representing the undisputed portion of the contract balance owed to the Company. The Customer has not paid this final invoice. In June 2009, the Company initiated arbitration before the International Chamber of Commerce against the Customer seeking damages for breaches of contract by the Customer. In July 2013, the Company received an arbitral award for approximately $44 million. The Customer has yet to satisfy the arbitral award. The Company is pursuing an enforcement action in U.S. District Court for the District of Columbia. In September 2013, the Customer filed a petition in a Greek court seeking to nullify the arbitral award and to stay enforcement of the award in Greece. A hearing on the Customer's nullification request was held in Greece in April 2014. The parties agreed to a stay of the Company's enforcement action in U.S. District Court until the Greek court issued a ruling on the Customer's nullification request. In June 2014, the Athens Court of Appeals annulled the arbitral award. The Company appealed the annulment decision to the Supreme Court of Greece in January 2015 to have the arbitral award reinstated. The Company is continuing to pursue enforcement of the award in the U.S. District Court as is still its right under U.S. and international law. The outcomes of the appeal in Greece and the Company's pending enforcement action are uncertain. Financial Status and Contingencies. As a result of the significant uncertainties on this contract, the Company converted to the completed-contract method of accounting and ceased recognizing revenues for the System development portion of this contract in fiscal 2006. No profits or losses were recorded on the Greek contract during fiscal 2015, 2014 and 2013. As of January 30, 2015, the Company has recorded $123 million of losses under the Greek contract, reflecting the Company’s estimated total cost to complete the System, assuming the Greek contract value was limited to the cash received to date. Based on the complex nature of this contractual situation and the difficulties encountered to date, significant uncertainties exist and the Company is unable to reliably estimate the ultimate outcome. The Company may reverse a portion of the losses from the Greek contract if it receives future payments as provided in the arbitral award. As of January 30, 2015, the Company has $12 million of receivables relating to value added tax ("VAT") that the Company has paid and believes it is entitled to recover either as a refund from the taxing authorities or as a payment under the Greek contract. The Company has invoiced the Customer for $28 million for VAT and the Customer has failed to make payment. If the Customer fails to pay the outstanding VAT amounts or the Company is unable to recover the amount as a refund from the taxing authorities, the Company’s total losses on the Greek contract could increase. The Company has met certain advance payment and performance bonding requirements through the issuance of euro-denominated standby letters of credit. As of January 30, 2015, there were $4 million in standby letters of credit outstanding relating to the support and maintenance of the System. In the arbitration, the Company was awarded but has not received $22 million representing the amounts drawn by the Customer in fiscal 2011 on certain standby letters of credit as well as damages. The principal subcontractor has provided to the Company euro-denominated standby letters of credit in the amount of $18 million as of January 30, 2015, of which $17 million relates to the delivery of the System. The Company may draw on the subcontractor’s standby letters of credit under certain circumstances by providing a statement to the responsible bank that the subcontractor has not fulfilled its obligations under the subcontract. Other The Company is also involved in various claims and lawsuits arising in the normal conduct of its business, none of which, in the opinion of the Company’s management, based upon current information, will likely have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
Leidos, Inc.
Legal Proceedings	Legal Proceedings: Timekeeping Contract with City of New York In March 2012, the Company reached a settlement with the U.S. Attorney’s Office for the Southern District of New York and the City of New York ("City") relating to investigations being conducted by the U.S. Attorney’s Office and the City with respect to the Company’s contract to develop and implement an automated time and attendance and workforce management system ("CityTime") for certain agencies of the City. As part of this settlement, the Company entered into a deferred prosecution agreement ("DPA") with the U.S. Attorney’s Office, under which the Company paid approximately $500 million and the U.S. Attorney’s Office deferred prosecution of a single criminal count against the Company, which alleged that the Company, through the conduct of certain managerial employees and others, caused the City to significantly overpay for the CityTime system. Leidos fully satisfied the requirements of the DPA during its three year term and the DPA expired on March 14, 2015. As a result, the U.S. Attorney's Office filed an application with the Court to dispose of the charge that was filed against Leidos as part of the DPA. On March 16, 2015, the Court entered an order disposing of the pending charge. In August 2012, the Company entered into an administrative agreement with the U.S. Army, on behalf of all agencies of the U.S. Government that confirms the Company’s continuing eligibility to enter into and perform contracts with all agencies of the U.S. Government following the CityTime settlement. The Army has determined that the U.S. Government will have adequate assurances under the terms of the administrative agreement that initiation of suspension or debarment is not necessary to protect the U.S. Government’s interests following the CityTime settlement. Under the terms of the administrative agreement, the Company has agreed, among other things, to maintain a contractor responsibility program having the specific elements described in the administrative agreement, including retaining a monitor and providing certain reports to the U.S. Army. The administrative agreement will continue in effect for five years, provided that the Company may request earlier termination after three years. Data Privacy Litigation The Company was previously a defendant in a putative class action, In Re: Science Applications International Corporation ("SAIC") Backup Tape Data Theft Litigation, which was an Multidistrict Litigation ("MDL") action in U.S. District Court for the District of Columbia relating to the theft of computer back-up tapes from a vehicle of a company employee. In May 2014, the District Court dismissed all but two plaintiffs from the MDL action. In June 2014, Leidos and its co-defendant, TRICARE, entered into settlement agreements with the remaining two plaintiffs who subsequently dismissed their claims with prejudice. On September 20, 2014, the Company was named as a defendant in a putative class action, Martin Fernandez, on Behalf Of Himself And All Other Similarly Situated v. Leidos, Inc. in the Eastern District Court of California, related to the same theft of computer backup tapes. The recent complaint includes allegations of violations of the California Confidentiality of Medical Information Act, the California Unfair Competition Law, and other claims. The Company intends to vigorously defend against these claims, and filed a motion to dismiss in January 2015. Derivative and Securities Litigation Between February and April 2012, alleged stockholders filed three putative securities class actions. One case was withdrawn and two cases were consolidated in the U.S. District Court for the Southern District of New York in In re SAIC, Inc. Securities Litigation. The consolidated securities complaint named as defendants the Company, its chief financial officer, two former chief executive officers, a former group president, and the former program manager on the CityTime program, and was filed purportedly on behalf of all purchasers of the Company's common stock from April 11, 2007 through September 1, 2011. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company’s revenues, operating income, and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying Leidos’ stock at an inflated price. On October 1, 2013, the District Court dismissed many claims in the complaint with prejudice and on January 30, 2014, the District Court entered an order dismissing all remaining claims with prejudice and without leave to replead. The plaintiffs have moved to vacate the District Court's judgment or obtain relief from the judgment and for leave to file an amended complaint. On September 2014, the District Court denied plaintiff's motions. The plaintiffs filed a notice of appeal on October 30, 2014 to the United States Court of Appeals for the Second Circuit where the appeal remains pending. Greek Government Contract Background and Arbitration. In May 2003, the Company entered into a firm-fixed-price contract with the Hellenic Republic of Greece (the Customer) to provide a Command, Control, Communications, Coordination and Integration System (the System) to support the 2004 Athens Summer Olympic Games (the Olympics) and to serve as the security system for the Customer’s public order departments following completion of the Olympics. In November 2008, the Customer accepted the System in writing pursuant to the requirements of the contract. At the time, the Customer determined that the System substantially complied with the terms of the contract and accepted the System with certain alleged minor omissions and deviations. Upon System acceptance, the Company invoiced the Customer for approximately $16 million, representing the undisputed portion of the contract balance owed to the Company. The Customer has not paid this final invoice. In June 2009, the Company initiated arbitration before the International Chamber of Commerce against the Customer seeking damages for breaches of contract by the Customer. In July 2013, the Company received an arbitral award for approximately $44 million. The Customer has yet to satisfy the arbitral award. The Company is pursuing an enforcement action in U.S. District Court for the District of Columbia. In September 2013, the Customer filed a petition in a Greek court seeking to nullify the arbitral award and to stay enforcement of the award in Greece. A hearing on the Customer's nullification request was held in Greece in April 2014. The parties agreed to a stay of the Company's enforcement action in U.S. District Court until the Greek court issued a ruling on the Customer's nullification request. In June 2014, the Athens Court of Appeals annulled the arbitral award. The Company appealed the annulment decision to the Supreme Court of Greece in January 2015 to have the arbitral award reinstated. The Company is continuing to pursue enforcement of the award in the U.S. District Court as is still its right under U.S. and international law. The outcomes of the appeal in Greece and the Company's pending enforcement action are uncertain. Financial Status and Contingencies. As a result of the significant uncertainties on this contract, the Company converted to the completed-contract method of accounting and ceased recognizing revenues for the System development portion of this contract in fiscal 2006. No profits or losses were recorded on the Greek contract during fiscal 2015, 2014 and 2013. As of January 30, 2015, the Company has recorded $123 million of losses under the Greek contract, reflecting the Company’s estimated total cost to complete the System, assuming the Greek contract value was limited to the cash received to date. Based on the complex nature of this contractual situation and the difficulties encountered to date, significant uncertainties exist and the Company is unable to reliably estimate the ultimate outcome. The Company may reverse a portion of the losses from the Greek contract if it receives future payments as provided in the arbitral award. As of January 30, 2015, the Company has $12 million of receivables relating to value added tax ("VAT") that the Company has paid and believes it is entitled to recover either as a refund from the taxing authorities or as a payment under the Greek contract. The Company has invoiced the Customer for $28 million for VAT and the Customer has failed to make payment. If the Customer fails to pay the outstanding VAT amounts or the Company is unable to recover the amount as a refund from the taxing authorities, the Company’s total losses on the Greek contract could increase. The Company has met certain advance payment and performance bonding requirements through the issuance of euro-denominated standby letters of credit. As of January 30, 2015, there were $4 million in standby letters of credit outstanding relating to the support and maintenance of the System. In the arbitration, the Company was awarded but has not received $22 million representing the amounts drawn by the Customer in fiscal 2011 on certain standby letters of credit as well as damages. The principal subcontractor has provided to the Company euro-denominated standby letters of credit in the amount of $18 million as of January 30, 2015, of which $17 million relates to the delivery of the System. The Company may draw on the subcontractor’s standby letters of credit under certain circumstances by providing a statement to the responsible bank that the subcontractor has not fulfilled its obligations under the subcontract. Other The Company is also involved in various claims and lawsuits arising in the normal conduct of its business, none of which, in the opinion of the Company’s management, based upon current information, will likely have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Other Commitments and Contingencies	12 Months Ended
Other Commitments and Contingencies	Jan. 30, 2015
Other Commitments and Contingencies	Other Commitments and Contingencies: VirnetX, Inc. In fiscal 2007, the Company transferred several patents to VirnetX Inc., a subsidiary of VirnetX Holding Corp. In consideration of this transfer, the Company received certain license rights and the right to receive a percentage of the consideration received in patent infringement or enforcement claims against third parties. In November 2012, a jury found that Apple Corporation infringed two of the patents that the Company previously transferred to VirnetX and awarded approximately $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 has been remanded to the Federal District Court for further proceedings. On December 17, 2014, VirnetX settled a separate patent infringement dispute with Microsoft Corporation, with those parties executing an Amended Settlement and License Agreement. This agreement amended and restated certain terms of the original Settlement and License Agreement, dated May 14, 2010, between VirnetX and Microsoft. Under the terms of the amended agreement, Microsoft agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license. Under its agreements with VirnetX, the Company would receive 35% of the proceeds obtained by VirnetX under this settlement with Microsoft after reduction for attorneys' fees and costs incurred in litigating those claims. The Company and VirnetX are currently in discussions regarding the allocation of these proceeds. No assurances can be given as to when or if the Company will receive any proceeds in connection with these matters. In addition, if the Company receives any proceeds under its agreements with VirnetX, the Company is required to pay a royalty on the proceeds received 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 January 30, 2015. 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 in these investigations or reviews can lead to criminal, civil or administrative proceedings, and the Company could face penalties, fines, compensatory damages, and suspension or debarment from doing business with governmental agencies. In addition, the Company could suffer serious reputational harm if allegations of impropriety were made against Leidos. Adverse findings could also have a material adverse effect on the Company’s business, consolidated financial position, results of operations, and cash flows due to its reliance on government contracts. U.S. Government agencies, including the Defense Contract Audit Agency ("DCAA"), Defense Contract Management Agency ("DCMA"), and others, routinely audit and review a contractor’s performance on government contracts, indirect rates and pricing practices, and compliance with applicable contracting and procurement laws, regulations, and standards. They also review the adequacy of the contractor’s compliance with government standards for its business systems, including: a contractor’s accounting system, earned value management system, estimating system, materials management and accounting system, property management system, and purchasing system. Both contractors and the U.S. Government agencies conducting these audits and reviews have come under increased scrutiny including such subjects as billing practices, labor charging, and accounting for unallowable costs. As a result, audits and reviews have become more rigorous and the standards to which the Company is held are being more strictly interpreted, increasing the likelihood of an audit or review resulting in an adverse outcome. During the course of its current audits, the DCAA is closely examining and questioning costs and several of the Company’s long established and disclosed practices increasing the uncertainty as to the ultimate conclusion that will be reached. In addition, the Company also monitors compliance with these practices and has an obligation under its contracts to make disclosures of specific improprieties based on credible evidence. The Company changed its indirect rate structure used in its indirect cost system in fiscal 2011 and future years. The DCAA is performing reviews of these changes and the Company’s compliance with certain other U.S. Government Cost Accounting Standards. A finding of significant control deficiencies in the Company’s system audits or other reviews can result in cash payments, penalties and potentially decremented billing rates. The Company’s indirect cost audits by the DCAA remain open for fiscal 2009 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to and including fiscal 2009 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Pursuant to the Distribution Agreement with New SAIC and upon the separation date, the Company's liability of $45 million for net amounts to be refunded to customers for potential adjustments from such audit or review of contract costs was allocated to New SAIC in the amount of $18 million and the Company in the amount of $27 million. For open periods prior to the spin-off, matters may be settled by the Company with reimbursements due from New SAIC. Subsequent to the separation date, any amounts owed in addition to the $45 million liability for periods prior to the separation date will be proportioned between Leidos and New SAIC in accordance with the Distribution Agreement. As of January 30, 2015, the Company has recorded a liability of $41 million for its current best estimate of net amounts to be refunded to customers for potential adjustments from such audits or reviews of contract costs. This amount includes potential adjustments related to both pre-separation and post-separation audits or reviews. Joint Ventures The Company has a guarantee that relates only to claims brought by the sole customer of its joint venture, Bechtel SAIC Company, LLC, for specific contractual nonperformance of the joint venture. The Company also has a cross-indemnity agreement with the joint venture partner, pursuant to which the Company will only be ultimately responsible for the portion of any losses incurred under the guarantee equal to its ownership interest of 30%. As of January 31, 2014, the joint venture had completed performance requirements on the customer contract and was in the process of completing contract close-out activities. Based on current conditions, the Company believes the likelihood of having to make any future payment related to the guarantee is remote. Letters of Credit and Surety Bonds The Company has outstanding letters of credit of $60 million as of January 30, 2015, principally related to guarantees on contracts. The Company also has outstanding surety bonds in the amount of $224 million as of January 30, 2015, principally related to performance and subcontractor payment bonds on the Company’s contracts. The outstanding letters of credit expire over the next four fiscal years and the surety bonds have various terms with the majority of the bonds expiring over the next five fiscal years. Other The Company maintains self-insured medical and workers compensation insurance plans. The Company provided estimated accruals for claims incurred but not yet reported of $16 million and $19 million as of January 30, 2015 and January 31, 2014, respectively.
Leidos, Inc.
Other Commitments and Contingencies	Other Commitments and Contingencies: VirnetX, Inc. In fiscal 2007, the Company transferred several patents to VirnetX Inc., a subsidiary of VirnetX Holding Corp. In consideration of this transfer, the Company received certain license rights and the right to receive a percentage of the consideration received in patent infringement or enforcement claims against third parties. In November 2012, a jury found that Apple Corporation infringed two of the patents that the Company previously transferred to VirnetX and awarded approximately $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 has been remanded to the Federal District Court for further proceedings. On December 17, 2014, VirnetX settled a separate patent infringement dispute with Microsoft Corporation, with those parties executing an Amended Settlement and License Agreement. This agreement amended and restated certain terms of the original Settlement and License Agreement, dated May 14, 2010, between VirnetX and Microsoft. Under the terms of the amended agreement, Microsoft agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license. Under its agreements with VirnetX, the Company would receive 35% of the proceeds obtained by VirnetX under this settlement with Microsoft after reduction for attorneys' fees and costs incurred in litigating those claims. The Company and VirnetX are currently in discussions regarding the allocation of these proceeds. No assurances can be given as to when or if the Company will receive any proceeds in connection with these matters. In addition, if the Company receives any proceeds under its agreements with VirnetX, the Company is required to pay a royalty on the proceeds received 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 January 30, 2015. 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 in these investigations or reviews can lead to criminal, civil or administrative proceedings, and the Company could face penalties, fines, compensatory damages, and suspension or debarment from doing business with governmental agencies. In addition, the Company could suffer serious reputational harm if allegations of impropriety were made against Leidos. Adverse findings could also have a material adverse effect on the Company’s business, consolidated financial position, results of operations, and cash flows due to its reliance on government contracts. U.S. Government agencies, including the Defense Contract Audit Agency ("DCAA"), Defense Contract Management Agency ("DCMA"), and others, routinely audit and review a contractor’s performance on government contracts, indirect rates and pricing practices, and compliance with applicable contracting and procurement laws, regulations, and standards. They also review the adequacy of the contractor’s compliance with government standards for its business systems, including: a contractor’s accounting system, earned value management system, estimating system, materials management and accounting system, property management system, and purchasing system. Both contractors and the U.S. Government agencies conducting these audits and reviews have come under increased scrutiny including such subjects as billing practices, labor charging, and accounting for unallowable costs. As a result, audits and reviews have become more rigorous and the standards to which the Company is held are being more strictly interpreted, increasing the likelihood of an audit or review resulting in an adverse outcome. During the course of its current audits, the DCAA is closely examining and questioning costs and several of the Company’s long established and disclosed practices increasing the uncertainty as to the ultimate conclusion that will be reached. In addition, the Company also monitors compliance with these practices and has an obligation under its contracts to make disclosures of specific improprieties based on credible evidence. The Company changed its indirect rate structure used in its indirect cost system in fiscal 2011 and future years. The DCAA is performing reviews of these changes and the Company’s compliance with certain other U.S. Government Cost Accounting Standards. A finding of significant control deficiencies in the Company’s system audits or other reviews can result in cash payments, penalties and potentially decremented billing rates. The Company’s indirect cost audits by the DCAA remain open for fiscal 2009 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to and including fiscal 2009 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Pursuant to the Distribution Agreement with New SAIC and upon the separation date, the Company's liability of $45 million for net amounts to be refunded to customers for potential adjustments from such audit or review of contract costs was allocated to New SAIC in the amount of $18 million and the Company in the amount of $27 million. For open periods prior to the spin-off, matters may be settled by the Company with reimbursements due from New SAIC. Subsequent to the separation date, any amounts owed in addition to the $45 million liability for periods prior to the separation date will be proportioned between Leidos and New SAIC in accordance with the Distribution Agreement. As of January 30, 2015, the Company has recorded a liability of $41 million for its current best estimate of net amounts to be refunded to customers for potential adjustments from such audits or reviews of contract costs. This amount includes potential adjustments related to both pre-separation and post-separation audits or reviews. Joint Ventures The Company has a guarantee that relates only to claims brought by the sole customer of its joint venture, Bechtel SAIC Company, LLC, for specific contractual nonperformance of the joint venture. The Company also has a cross-indemnity agreement with the joint venture partner, pursuant to which the Company will only be ultimately responsible for the portion of any losses incurred under the guarantee equal to its ownership interest of 30%. As of January 31, 2014, the joint venture had completed performance requirements on the customer contract and was in the process of completing contract close-out activities. Based on current conditions, the Company believes the likelihood of having to make any future payment related to the guarantee is remote. Letters of Credit and Surety Bonds The Company has outstanding letters of credit of $60 million as of January 30, 2015, principally related to guarantees on contracts. The Company also has outstanding surety bonds in the amount of $224 million as of January 30, 2015, principally related to performance and subcontractor payment bonds on the Company’s contracts. The outstanding letters of credit expire over the next four fiscal years and the surety bonds have various terms with the majority of the bonds expiring over the next five fiscal years. Other The Company maintains self-insured medical and workers compensation insurance plans. The Company provided estimated accruals for claims incurred but not yet reported of $16 million and $19 million as of January 30, 2015 and January 31, 2014, respectively.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Jan. 30, 2015

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):

Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect discontinued operations for all periods presented.



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(in millions, except per share amounts)
Fiscal 2015⁽³⁾
Revenues	$	1,312		$	1,306		$	1,276		$	1,169
Operating income (loss)	$	87		$	(410	)	$	72		$	37
Income (loss) from continuing operations⁽¹⁾	$	45		$	(439	)	$	38		$	26
(Loss) income from discontinued operations	$	(8	)	$	1		$	(4	)	$	18
Net income (loss)⁽¹⁾	$	37		$	(438	)	$	34		$	44
Basic earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.52		$	0.36
Diluted earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.51		$	0.35
Fiscal 2014⁽⁴⁾
Revenues	$	1,593		$	1,457		$	1,414		$	1,291
Operating income (loss)	$	77		$	10		$	(5	)	$	81
Income (loss) from continuing operations ⁽¹⁾	$	41		$	4		$	(8	)	$	47
Income (loss) from discontinued operations	$	40		$	38		$	5		$	(3	)
Net income (loss) ⁽¹⁾	$	81		$	42		$	(3	)	$	44
Basic earnings (loss) per share ⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.57
Diluted earnings (loss) per share⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.56

All per share amounts presented give effect to the one-for-four reverse stock split completed on September 27, 2013.


(1)	Income (loss) from continuing operations and net income relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below


(2)	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.


(3)	Fiscal 2015 quarterly results include goodwill impairment charges of $486 million in the second quarter, intangible asset impairment charges of $24 million and $17 million in the second and third quarter, respectively, and a tangible asset impairment charge of $40 million in the fourth quarter. For further information see, Note 3 - Acquisitions and Note 4 - Goodwill and Intangible Assets.

(4)

Fiscal 2014 quarterly results include the following charges: 1) intangible asset impairment charges of $30 million and $19 million in the second and third quarter, respectively; 2) bad debt expense for certain receivables related to two energy design-build construction projects of $42 million in the third quarter; and 3) separation transaction and restructuring expenses in each of the quarters of approximately $14 million, $19 million, $25 million, and $7 million, respectively. For further information see, Note 1 - Summary of Significant Accounting Policies and Note 4 - Goodwill and Intangible Assets.

Leidos, Inc.:

Income (loss) from continuing operations and net income (loss) of Leidos, Inc. includes interest expense on the related party note and associated income taxes, which relate solely to Leidos, Inc. and are not reflected in the consolidated amounts above. Income (loss) from continuing operations and net income (loss) of Leidos, Inc. for each quarter of the last two fiscal years was as follows:



	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(in millions)
Fiscal 2015
Income (loss) from continuing operations	$	46	$	(437	)	$	40		$	27
Net income (loss)	$	38	$	(436	)	$	36		$	45
Fiscal 2014
Income (loss) from continuing operations	$	41	$	4		$	(8	)	$	49
Net income (loss)	$	81	$	42		$	(3	)	$	46

Leidos, Inc.

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited):

Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect discontinued operations for all periods presented.



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(in millions, except per share amounts)
Fiscal 2015⁽³⁾
Revenues	$	1,312		$	1,306		$	1,276		$	1,169
Operating income (loss)	$	87		$	(410	)	$	72		$	37
Income (loss) from continuing operations⁽¹⁾	$	45		$	(439	)	$	38		$	26
(Loss) income from discontinued operations	$	(8	)	$	1		$	(4	)	$	18
Net income (loss)⁽¹⁾	$	37		$	(438	)	$	34		$	44
Basic earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.52		$	0.36
Diluted earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.51		$	0.35
Fiscal 2014⁽⁴⁾
Revenues	$	1,593		$	1,457		$	1,414		$	1,291
Operating income (loss)	$	77		$	10		$	(5	)	$	81
Income (loss) from continuing operations ⁽¹⁾	$	41		$	4		$	(8	)	$	47
Income (loss) from discontinued operations	$	40		$	38		$	5		$	(3	)
Net income (loss) ⁽¹⁾	$	81		$	42		$	(3	)	$	44
Basic earnings (loss) per share ⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.57
Diluted earnings (loss) per share⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.56

All per share amounts presented give effect to the one-for-four reverse stock split completed on September 27, 2013.


(1)	Income (loss) from continuing operations and net income relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below


(2)	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.


(3)	Fiscal 2015 quarterly results include goodwill impairment charges of $486 million in the second quarter, intangible asset impairment charges of $24 million and $17 million in the second and third quarter, respectively, and a tangible asset impairment charge of $40 million in the fourth quarter. For further information see, Note 3 - Acquisitions and Note 4 - Goodwill and Intangible Assets.

(4)

Leidos, Inc.:



	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(in millions)
Fiscal 2015
Income (loss) from continuing operations	$	46	$	(437	)	$	40		$	27
Net income (loss)	$	38	$	(436	)	$	36		$	45
Fiscal 2014
Income (loss) from continuing operations	$	41	$	4		$	(8	)	$	49
Net income (loss)	$	81	$	42		$	(3	)	$	46

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 30, 2015

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

Reporting Periods

Use of Estimates

Separation Transaction and Restructuring Expenses

The separation transaction and restructuring expenses for continuing operations for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Strategic advisory services	$	—		$	7		$	1
Legal and accounting services	—			2			—
Lease termination and facility consolidation expenses	3			46			2
Severance costs	—			10			8
Separation transaction and restructuring expenses in operating (loss) income	3			65			11
Less: income tax benefit	(1		)	(25		)	(4		)
Separation transaction and restructuring expenses, net of tax	$	2		$	40		$	7



	Severance Costs			Lease Termination and Facility Consolidation Expenses			Total
	(in millions)
Balance as of January 31, 2013	$	8		$	2		$	10
Charges	10			41			51
Cash payments	(17		)	(23		)	(40		)
Balance as of January 31, 2014	$	1		$	20		$	21
Charges	—			3			3
Cash payments	(1		)	(12		)	(13		)
Balance as of January 30, 2015	$	—		$	11		$	11

Operating Cycle

Variable Interest Entities

Revenue Recognition

The Company evaluates its contracts for multiple elements, and when appropriate, separates the contracts into separate units of accounting for revenue recognition.

Changes in Estimates on Contracts

Receivables

Discontinued Operations

Pre-contract Costs

Financial Instruments

Fair Value of Financial Instruments

Fair Value Measurements

Cash and Cash Equivalents

Restricted Cash

The Company has restricted cash balances, primarily representing advances from a customer, that are restricted as to use for certain expenditures related to that customer’s contract.

Concentration of Credit Risk

Investments

Inventories

Property, Plant and Equipment



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	2-10
Buildings	Straight-line	30-40
Building improvements and leasehold improvements	Straight-line	Shorter of lease term or 25
Office furniture	Straight-line or declining-balance	6-9
Electric generation facility	Straight-line	25

Goodwill and Intangible Assets

Goodwill

The Company estimates the fair value of each reporting unit using both market and income approaches (Level 3) when a quantitative analysis is required.

Intangible Assets

Intangible assets with finite lives are being amortized over the following periods:



	Estimated useful lives (in years)
Customer relationships	5-10
Software and technology	9-15
Other	5

Selling, General and Administrative Expenses

Selling, general and administrative expenses include general and administrative, bid and proposal and internal research and development ("IR&D") expenses

Income Taxes

Stock-Based Compensation

Special Cash Dividend

Foreign Currency

Accounting Standards Updates Adopted

Description of New Accounting Pronouncements Not Yet Adopted

Accounting Standards Updates Issued But Not Yet Adopted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 30, 2015

Accounting Policies [Abstract]

Separation Transaction Expenses



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Strategic advisory services	$	—		$	7		$	1
Legal and accounting services	—			2			—
Lease termination and facility consolidation expenses	3			46			2
Severance costs	—			10			8
Separation transaction and restructuring expenses in operating (loss) income	3			65			11
Less: income tax benefit	(1		)	(25		)	(4		)
Separation transaction and restructuring expenses, net of tax	$	2		$	40		$	7

Schedule of Restructuring Reserve



	Severance Costs			Lease Termination and Facility Consolidation Expenses			Total
	(in millions)
Balance as of January 31, 2013	$	8		$	2		$	10
Charges	10			41			51
Cash payments	(17		)	(23		)	(40		)
Balance as of January 31, 2014	$	1		$	20		$	21
Charges	—			3			3
Cash payments	(1		)	(12		)	(13		)
Balance as of January 30, 2015	$	—		$	11		$	11

Schedule of Depreciation using Estimated Useful Lives

Depreciation is recognized using the methods and estimated useful lives as follows:



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	2-10
Buildings	Straight-line	30-40
Building improvements and leasehold improvements	Straight-line	Shorter of lease term or 25
Office furniture	Straight-line or declining-balance	6-9
Electric generation facility	Straight-line	25

Property, plant, and equipment, net consisted of the following:



	January 30, 2015			January 31, 2014
	(in millions)
Electric generation facility	$	127		$	269
Computers and other equipment	166			204
Leasehold improvements	156			167
Buildings and improvements	107			113
Office furniture and fixtures	37			43
Land	26			27
Construction in progress	2			—
	621			823
Less accumulated depreciation and amortization	(313		)	(341		)
	$	308		$	482

Schedule of Finite-Lived Intangible Assets

Intangible assets with finite lives are being amortized over the following periods:



	Estimated useful lives (in years)
Customer relationships	5-10
Software and technology	9-15
Other	5

Dispositions (Tables)

12 Months Ended

Jan. 30, 2015

SAIC

Schedule of Discontinued Operations

The operating results of New SAIC through the Distribution Date, which have been classified as discontinued operations, for the periods presented were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Revenues	$	39	$	2,712	$	4,683
Costs and expenses:
Cost of revenues	39		2,447		4,230
Selling, general and administrative expenses	—		42		65
Bad debt expense	—		—		2
Separation transaction and restructuring expenses	—		55		28
Operating income	$	—	$	168	$	358

The major classes of assets and liabilities included in discontinued operations through the Distribution Date related to the spin-off of New SAIC are presented in the table below:



	January 31, 2013
	(in millions)
Cash and cash equivalents	$	1
Receivables, net	717
Inventory, prepaid expenses and other current assets	101
Total current assets	819
Property, plant and equipment, net	29
Intangible assets, net	6
Goodwill	491
Deferred income taxes	2
Other assets	1
Total assets	1,348
Accounts payable and accrued liabilities	461
Accrued payroll and employee benefits	185
Notes payable and long-term debt	1
Total current liabilities	647
Non-current liabilities	—
Total liabilities	$	647

Other Disposals

Schedule of Discontinued Operations



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues	$	29		$	33		$	97
Costs and expenses:
Cost of revenues	21			33			81
Selling, general and administrative expenses (including impairment charges of $9 million for the fiscal year ended January 30, 2015)	29			25			52
Intangible asset impairment charges	3			2			6
Operating loss	$	(24	)	$	(27	)	$	(42	)
Non-operating income (expense)	$	11		$	(1	)	$	14
Loss from discontinued operations before income taxes	$	(13	)	$	(28	)	$	(28	)

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Acquisitions (Tables)

12 Months Ended

Jan. 30, 2015

Business Acquisition [Line Items]

Schedule of Acquisition Information

Acquisition information for the years presented was as follows:



	Year Ended
	January 31, 2014		January 31, 2013
	($ in millions)
Number of acquisitions	1		1
Purchase consideration (paid and accrued)	$	111	$	505

Schedule of Finite-lived, Indefinite-lived and Goodwill



	2014		2013
	($ in millions)
Goodwill:
Tax deductible goodwill	$	—	$	—
Non-tax deductible goodwill	—		395
Identifiable intangible assets:
Customer relationships (finite-lived)	$	—	$	62
Other (finite-lived)	3		10
Weighted average lives of finite-lived intangibles:
Customer relationships	—		5 years
Other	12 years		1 year
All finite-lived intangible assets	12 years		4 years

Plainfield Renewal Energy Holdings LLC

Business Acquisition [Line Items]

Schedule of Details of Purchase Price

The aggregate purchase consideration that the Company exchanged for PRE Holdings is as follows (in millions):



Forgiveness of accounts receivable (net of $32 million bad debt expense)	$	105
Contingent consideration	6
Total purchase consideration	$	111

Estimated Fair Values of Assets Acquired And Liabilities Assumed

The fair values of the assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Property, plant and equipment	$	248
Other assets	8
Notes payable assumed (net of debt discount)	(148		)
Total identifiable net assets acquired	108
Intangible assets	3
Total purchase consideration	$	111

maxIT Healthcare Holdings Inc.

Business Acquisition [Line Items]

Estimated Fair Values of Assets Acquired And Liabilities Assumed

The fair values of the maxIT assets acquired and liabilities assumed at the date of acquisition were as follows (in millions):



Cash	$	9
Receivables	50
Other assets	24
Accounts payable, accrued liabilities and accrued payroll and employee benefits	(21		)
Deferred tax liabilities, net	(24		)
Total identifiable net assets acquired	38
Goodwill	395
Intangible assets	72
Total purchase price	$	505

Goodwill and Intangible Assets (Tables)

12 Months Ended

Jan. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill by Segment

The balance and changes in the carrying amount of goodwill by segment were as follows:



	NSS		HES			Total
	(in millions)
Balance at January 31, 2013	$	719	$	974		$	1,693
Corporate reorganizations	69		(69		)	—
Balance at January 31, 2014	$	788	$	905		$	1,693
Goodwill impairment	—		(486		)	(486		)
Balance at January 30, 2015	$	788	$	419		$	1,207

Schedule of Intangible Assets Including Estimates of Assets Acquired

Intangible assets, including those arising from preliminary estimates of assets acquired relating to acquisitions, consisted of the following:



	January 30, 2015							January 31, 2014
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Customer relationships	$	70	$	(57	)	$	13	$	94	$	(47	)	$	47
Software and technology	52		(41		)	11		65		(36		)	29
Other	—		—			—		4		(1		)	3
Total finite-lived intangible assets	122		(98		)	24		163		(84		)	79
Indefinite-lived intangible assets:
In-process research and development	9		—			9		10		—			10
Trade names	4		—			4		4		—			4
Total indefinite-lived intangible assets	13		—			13		14		—			14
Total intangible assets	$	135	$	(98	)	$	37	$	177	$	(84	)	$	93

Schedule of Amortization Expense for Finite-Lived Intangible Assets

The estimated annual amortization expense related to finite-lived intangible assets as of January 30, 2015 was as follows:



Year Ending January 30
	(in millions)
2016	$	8
2017	7
2018	5
2019	3
2020	1
2021 and thereafter	—
	$	24

Receivables (Tables)

12 Months Ended

Jan. 30, 2015

Receivables [Abstract]

Schedule of Accounts Receivable

The components of receivables, net consisted of the following:



	January 30, 2015			January 31, 2014
	(in millions)
Billed and billable receivables	$	655		$	794
Unbilled receivables:
Amounts billable	230			288
Contract retentions	21			15
Allowance for doubtful accounts	(10		)	(15		)
	$	896		$	1,082

Property Plant and Equipment (Tables)

12 Months Ended

Jan. 30, 2015

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Depreciation is recognized using the methods and estimated useful lives as follows:



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	2-10
Buildings	Straight-line	30-40
Building improvements and leasehold improvements	Straight-line	Shorter of lease term or 25
Office furniture	Straight-line or declining-balance	6-9
Electric generation facility	Straight-line	25

Property, plant, and equipment, net consisted of the following:



	January 30, 2015			January 31, 2014
	(in millions)
Electric generation facility	$	127		$	269
Computers and other equipment	166			204
Leasehold improvements	156			167
Buildings and improvements	107			113
Office furniture and fixtures	37			43
Land	26			27
Construction in progress	2			—
	621			823
Less accumulated depreciation and amortization	(313		)	(341		)
	$	308		$	482

Composition of Certain Financial Statement Captions (Tables)

12 Months Ended

Jan. 30, 2015

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Schedule of Certain Financial Statement Captions



	January 30, 2015		January 31, 2014
	(in millions)
Inventory, prepaid expenses and other current assets:
Prepaid income taxes and tax refunds receivable	$	102	$	24
Inventories	70		59
Restricted cash	30		18
Prepaid expenses	28		34
Deferred income taxes	12		89
Other	31		32
	$	273	$	256
Accounts payable and accrued liabilities:
Accrued liabilities	$	327	$	395
Accounts payable	244		218
Collections in excess of revenues on uncompleted contracts and deferred revenue	104		103
	$	675	$	716
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	138	$	152
Accrued vacation	123		128
Accrued contributions to employee benefit plans	3		5
	$	264	$	285
Other long-term liabilities:
Deferred compensation	$	39	$	38
Lease related obligations	31		33
Deferred tax liabilities	21		66
Accrued pension liabilities	8		9
Liabilities for uncertain tax positions	6		12
Other	63		69
	$	168	$	227

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Jan. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivative

The fair value of the interest rate swaps and their impact on the related fair value of the debt in the consolidated balance sheet is as follows:



Interest rate swaps					Hedged items
Balance sheet line item	January 30, 2015		January 31, 2014		Balance sheet line item	January 30, 2015		January 31, 2014
(in millions)
Other assets	$	17	$	—	Notes payable and long-term debt, net of current portion	$	17	$	—

Debt (Tables)

12 Months Ended

Jan. 30, 2015

Debt Disclosure [Abstract]

Schedule of Notes Payable and Long-Term Debt

The Company’s notes payable and long-term debt consisted of the following for the years presented:



	Stated interest rate		Effective interest rate		January 30, 2015		January 31, 2014
	(dollars in millions)
Leidos Holdings, Inc. senior unsecured notes:
$450 million notes issued in fiscal 2011, which mature in December 2020 ⁽¹⁾	4.45	%	4.53	%	$	466	$	449
$300 million notes issued in fiscal 2011, which mature in December 2040	5.95	%	6.03	%	232		300
Leidos, Inc. senior unsecured notes:
$250 million notes issued in fiscal 2003, which mature in July 2032	7.13	%	7.43	%	248		248
$300 million notes issued in fiscal 2004, which mature in July 2033	5.50	%	5.85	%	182		296
Capital leases and other notes payable due on various dates through fiscal 2021	0%-3.7%		Various		38		40
Total notes payable and long-term debt					1,166		1,333
Less current portion					2		2
Total notes payable and long-term debt, net of current portion					$	1,164	$	1,331
Fair value of notes payable and long-term debt					$	1,152	$	1,350


(1)	As a result of executing the interest rate swap agreements, the carrying value of $466 million includes a fair value adjustment of $17 million attributable to changes in the benchmark interest rate, the six-month LIBOR rate, from the inception of the interest rate swap agreements to January 30, 2015.

Schedule of Maturities of Notes Payable and Long-Term Debt

Maturities of notes payable and long-term debt are as follows:




Year Ending January 30
	(in millions)
2016	$	3
2017	3
2018	2
2019	2
2020	2
2021 and thereafter	1,159
Total principal payments	1,171
Less unamortized discount	5
	$	1,166

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jan. 30, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows:



	January 30, 2015			January 31, 2014
	(in millions)
Foreign currency translation adjustments, net of taxes of $0 million and $(1) million as of January 30, 2015 and January 31, 2014, respectively	$	1		$	2
Unrecognized net loss on settled derivative instruments associated with outstanding debt, net of taxes of $3 million as of January 30, 2015 and January 31, 2014, respectively	(5		)	(5		)
Unrecognized loss on defined benefit plan, net of taxes of $5 million and $2 million as of January 30, 2015 and January 31, 2014, respectively	(7		)	(3		)
Total accumulated other comprehensive loss, net of taxes of $8 million and $4 million as of January 30, 2015 and January 31, 2014, respectively	$	(11	)	$	(6	)

Earnings Per Share (EPS) (Tables)

12 Months Ended

Jan. 30, 2015

Earnings Per Share [Abstract]

Reconciliation of Income used in Calculating Earnings Per Share

A reconciliation of the (loss) income used to compute basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Basic EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing basic EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing basic EPS	$	(323	)	$	161		$	514
Diluted EPS:
(Loss) income from continuing operations, as reported	$	(330	)	$	84		$	323
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(7		)
(Loss) income from continuing operations, for computing diluted EPS	$	(330	)	$	81		$	316
Net (loss) income, as reported	$	(323	)	$	164		$	525
Less: allocation of distributed and undistributed earnings to participating securities	—			(3		)	(11		)
Net (loss) income, for computing diluted EPS	$	(323	)	$	161		$	514

Reconciliation of Weighted Average Number of Shares Outstanding



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Basic weighted average number of shares outstanding	74	83	83
Dilutive common share equivalents—stock options and other stock awards	—	—	—
Diluted weighted average number of shares outstanding	74	83	83

Schedule Of Basic and Diluted EPS

Basic and diluted EPS for the years presented was as follows:



	Year Ended
	January 30, 2015			January 31, 2014		January 31, 2013
Basic:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19
Diluted:
(Loss) income from continuing operations	$	(4.46	)	$	0.98	$	3.81
Income from discontinued operations	0.10			0.96		2.38
	$	(4.36	)	$	1.94	$	6.19

Schedule Of Stock-Based Awards Excluded from Weighted Average Shares Outstanding

The following anti-dilutive stock-based awards were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented:



	Year Ended
	January 30, 2015	January 31, 2014	January 31, 2013
	(in millions)
Stock options excluded	4	5	5
Vesting stock awards excluded	3	3	—

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-Based Compensation and Related Tax Benefits Recognized

Stock-based compensation and related tax benefits recognized under all plans were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
	(in millions)
Stock-based compensation expense:
Stock options	$	5	$	10	$	9
Vesting stock awards	35		46		44
Vested stock awards	2		—		—
Total stock-based compensation expense recorded in continuing operations	$	42	$	56	$	53
Total stock-based compensation expense recorded in discontinued operations	$	—	$	21	$	31
Tax benefits recognized from stock-based compensation	$	16	$	22	$	21

Schedule of Weighted Average Grant-Date Fair Value And Assumptions Used

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for each of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014 (Grants After Spin)			January 31, 2014 (Grants Before Spin)			January 31, 2013
Weighted average grant-date fair value	$	6.15		$	9.04		$	9.48		$	6.76		**
Expected term (in years)	4.7			4.8			5.0			5.0
Expected volatility	25.1		%	29.5		%	30.0		%	24.5		%
Risk-free interest rate	1.6		%	1.4		%	1.4		%	1.0		%
Dividend yield	2.9		%	2.4		%	2.8		%	3.7		%

** Adjusted for additional awards granted for the $4.00 Special Dividend

Schedule of Options Outstanding

Stock option activity for each of the periods presented was as follows:



	Shares of stock under stock options		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
	(in millions)				(in years)	(in millions)
Outstanding at January 31, 2012	5.2		$	71.60	2.5	$	—
Options granted	1.3		52.79
Options forfeited or expired	(1.6	)	70.17
Options exercised	—		—			—
Outstanding at January 31, 2013	4.9		67.24		3.0	—
Options granted	1.4		54.86
Special dividend adjustments	0.4
Options forfeited or expired	(1.3	)	71.80
Spin-off Adjustment	(1.9	)	57.85
Outstanding at September 27, 2013 (before spin)	3.5		$	59.25	3.9	$	24



Outstanding at September 28, 2013 (after spin)	4.9		**	$	40.20	**	3.9	$	24
Options granted	0.2			45.16
Options forfeited or expired	(0.4	)		39.43
Options exercised	(0.2	)		43.10				1
Outstanding at January 31, 2014	4.5			$	40.32		3.8	$	25
Options granted	0.7			37.25
Options forfeited or expired	(1.5	)		43.90
Options exercised	(0.1	)		34.89				1
Outstanding at January 30, 2015	3.6			$	38.50		4.0	$	14
Exercisable at January 30, 2015	1.5			$	40.90		2.4	$	4
Vested and expected to vest in the future as of January 30, 2015	3.5			$	38.57		3.9	$	13

**Adjusted for Conversion Ratio of 1.4523

Schedule of Vesting Stock Award Activity

Vesting stock award activity for each of the periods presented was as follows:



	Shares of stock under stock awards		Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2012	3.0		$	70.00
Awards granted	1.7		52.48
Awards forfeited	(0.4	)	62.84
Awards vested	(1.2	)	71.28
Unvested at January 31, 2013	3.1		60.78
Awards granted	2.1		53.51
Awards forfeited	(0.4	)	58.28
Awards vested	(0.9	)	64.76
Spin-off Adjustment	(1.5	)	57.04
Unvested at September 27, 2013 (before spin)	2.4		$	59.98



Unvested stock awards at September 28, 2013 (after spin)	3.5		**	$	41.54	**
Awards granted	0.4		*	45.41		*
Awards forfeited	(0.2	)		39.75
Unvested stock awards at January 31, 2014	3.7			$	39.58
Awards granted	0.8			37.06
Awards forfeited	(0.5	)		39.05
Awards vested	(1.0	)		41.08
Unvested stock awards at January 30, 2015	3.0			$	38.51

* Includes Modified Performance-Based Awards

** Adjusted for Conversion Ratio of 1.4523

Schedule of Performance-Based Stock Award Activity

Performance-based stock award activity for each of the periods presented was as follows:



	Expected number of shares of stock to be issued under performance-based stock awards			Weighted average grant- date fair value
	(in millions)
Unvested at January 31, 2013	0.3			$	52.96
Awards canceled	(0.2	)	*	53.11		*
Unvested at January 31, 2014	0.1		**	$	36.65	**
Awards granted	0.1			37.64
Awards vested	(0.1	)		36.69
Unvested at January 30, 2015	0.1			$	37.70

Income Taxes (Tables)

12 Months Ended

Jan. 30, 2015

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes related to continuing operations for each of the three years ended January 30, 2015 included the following:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Current:
Federal and foreign	$	16		$	32		$	(52	)
State	(6		)	13			9
Deferred:
Federal and foreign	26			(28		)	55
State	11			(13		)	10
Total	$	47		$	4		$	22

Schedule of Reconciliation of Provision for Income Taxes



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(dollars in millions)
Amount computed at the statutory federal income tax rate (35%)	$	(99	)	$	31		$	121
State income taxes, net of federal tax benefit	3			—			10
Taxable conversion of subsidiary	(116		)	—			—
Change in valuation allowance for deferred tax assets	105			—			—
Change in accruals for uncertain tax positions	2			(5		)	(1		)
CityTime uncertain tax liability	—			—			(96		)
Research and development credits	(4		)	(3		)	(5		)
Dividends paid to employee stock ownership plan	(4		)	(22		)	(9		)
U.S. manufacturing activity benefit	—			(3		)	(1		)
Non-deductible penalties	—			4			—
Non-deductible goodwill	156			—			—
Other	4			2			3
Total	$	47		$	4		$	22
Effective income tax rate	(16.6		)%	4.5		%	6.4		%

Schedule of Deferred Tax Assets (Liabilities)



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Accrued vacation and bonuses	$	44		$	62
Investments	3			3
Deferred compensation	39			38
Vesting stock awards	28			34
Credits and net operating losses carryovers	9			27
Employee benefit contributions	4			3
Capital loss carryover	113			—
Reserves	41			51
Deferred rent and tenant allowances	15			14
Other	15			9
Total deferred tax assets	311			241
Valuation allowance	(120		)	(7		)
Deferred tax assets, net of valuation allowance	191			234

Deferred revenue	(47		)	(31		)
Fixed asset basis differences	—			(27		)
Purchased intangible assets	(121		)	(138		)
Partnership interest	(10		)	—
Other	(8		)	—
Total deferred tax liabilities	(186		)	(196		)
Net deferred tax assets	$	5		$	38

Schedule of Net Deferred Tax Assets

Net deferred tax assets (liabilities) were as follows:



	Year Ended
	January 30, 2015			January 31, 2014
	(in millions)
Net current deferred tax assets	$	12		$	89
Net non-current deferred tax assets	14			15
Net non-current deferred tax liabilities	(21		)	(66		)
Total net deferred tax assets	$	5		$	38

Schedule of Changes in Unrecognized Tax Benefits

The changes in the unrecognized tax benefits, excluding accrued interest and penalties, were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Unrecognized tax benefits at beginning of year	$	14		$	21		$	129
Additions for tax positions related to current year	2			—			—
Additions for tax positions related to prior years	11			2			2
Reductions for tax positions related to prior years	(5		)	—			(107		)
Settlements with taxing authorities	(1		)	—			(1		)
Lapse of statute of limitations	(4		)	(9		)	(2		)
Unrecognized tax benefits at end of year	$	17		$	14		$	21
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	5		$	6		$	10

Leases (Tables)

12 Months Ended

Jan. 30, 2015

Leases [Abstract]

Schedule of Rental Expense for Facilities and Equipment

Rental expense for facilities and equipment related to continuing operations for the three fiscal years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Gross rental expense	$	107		$	181		$	154
Less sublease income	(9		)	(6		)	(4		)
Net rental expense	$	98		$	175		$	150

Schedule of Future Minimum Lease Commitments and Sublease Receipts under Non-Cancelable Operating Leases

Future minimum lease commitments and lease or sublease receipts under non-cancelable operating leases in effect at January 30, 2015 are as follows:



Year Ending January 30	Operating lease commitment		Sublease receipts
	(in millions)
2016	$	88	$	7
2017	76		7
2018	66		5
2019	55		4
2020	41		3
2021 and thereafter	70		9
Total	$	396	$	35

Supplementary Cash Flow Information (Tables)

12 Months Ended

Jan. 30, 2015

Supplemental Cash Flow Information [Abstract]

Schedule of Supplementary Cash Flow Information

Supplementary cash flow information, including non-cash investing and financing activities, for the three fiscal years ended January 30, 2015 was as follows:



	Year Ended
	January 30, 2015		January 31, 2014			January 31, 2013
	(in millions)
Vested stock issued as settlement of annual bonus accruals	$	1	$	2		$	2
Stock issued in lieu of cash dividends	$	3	$	18		$	3
Capital lease obligations	$	—	$	1		$	—
Fair value of assets acquired in acquisitions	$	—	$	259		$	541
Cash paid in acquisitions, net of cash acquired of $9 million in fiscal 2013	$	—	$	(3	)	$	(483	)
Forgiveness of accounts receivable to acquire equity interest in business combination	$	—	$	(105	)	$	—
Accrued liability for acquisition of business	$	—	$	(3	)	$	(13	)
Liabilities assumed in acquisitions	$	—	$	148		$	45
Cash paid for interest (including discontinued operations)	$	74	$	82		$	92
Cash paid for income taxes (including discontinued operations)	$	55	$	63		$	128

Business Segment Information (Tables)

12 Months Ended

Jan. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following tables summarize business segment information for each of the three years ended January 30, 2015:



	Year Ended
	January 30, 2015			January 31, 2014			January 31, 2013
	(in millions)
Revenues:
National Security Solutions	$	3,594		$	4,049		$	4,650
Health and Engineering	1,485			1,718			1,805
Corporate and Other	(16		)	(9		)	(1		)
Intersegment elimination	—			(3		)	(5		)
Total revenues	$	5,063		$	5,755		$	6,449
Operating income (loss):
National Security Solutions	$	286		$	292		$	360
Health and Engineering	(472		)	20			138
Corporate and Other	(28		)	(149		)	(77		)
Total operating (loss) income	$	(214	)	$	163		$	421
Amortization of intangible assets:
National Security Solutions	$	—		$	3		$	5
Health and Engineering	15			32			30
Total amortization of intangible assets	$	15		$	35		$	35

Schedule of Total Revenue Percentages Contributable to Specific Government Agencies

Government, its agencies and other customers comprising more than 10% of total revenues in any of the three years ended January 30, 2015 were as follows:



	Year Ended
	January 30, 2015		January 31, 2014		January 31, 2013
U.S. Government	79	%	78	%	81	%
U.S. DoD	67	%	68	%	70	%
U.S. Army	16	%	19	%	23	%
Maryland Procurement Office	10	%	8	%	8	%

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Jan. 30, 2015

Schedule of Selected Quarterly Financial Data

Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect discontinued operations for all periods presented.



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(in millions, except per share amounts)
Fiscal 2015⁽³⁾
Revenues	$	1,312		$	1,306		$	1,276		$	1,169
Operating income (loss)	$	87		$	(410	)	$	72		$	37
Income (loss) from continuing operations⁽¹⁾	$	45		$	(439	)	$	38		$	26
(Loss) income from discontinued operations	$	(8	)	$	1		$	(4	)	$	18
Net income (loss)⁽¹⁾	$	37		$	(438	)	$	34		$	44
Basic earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.52		$	0.36
Diluted earnings (loss) per share⁽²⁾	$	0.58		$	(5.93	)	$	0.51		$	0.35
Fiscal 2014⁽⁴⁾
Revenues	$	1,593		$	1,457		$	1,414		$	1,291
Operating income (loss)	$	77		$	10		$	(5	)	$	81
Income (loss) from continuing operations ⁽¹⁾	$	41		$	4		$	(8	)	$	47
Income (loss) from discontinued operations	$	40		$	38		$	5		$	(3	)
Net income (loss) ⁽¹⁾	$	81		$	42		$	(3	)	$	44
Basic earnings (loss) per share ⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.57
Diluted earnings (loss) per share⁽²⁾	$	0.44		$	0.05		$	(0.10	)	$	0.56

All per share amounts presented give effect to the one-for-four reverse stock split completed on September 27, 2013.


(1)	Income (loss) from continuing operations and net income relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below


(2)	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.


(3)	Fiscal 2015 quarterly results include goodwill impairment charges of $486 million in the second quarter, intangible asset impairment charges of $24 million and $17 million in the second and third quarter, respectively, and a tangible asset impairment charge of $40 million in the fourth quarter. For further information see, Note 3 - Acquisitions and Note 4 - Goodwill and Intangible Assets.

(4)

Leidos, Inc.

Schedule of Selected Quarterly Financial Data

Leidos, Inc.:



	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(in millions)
Fiscal 2015
Income (loss) from continuing operations	$	46	$	(437	)	$	40		$	27
Net income (loss)	$	38	$	(436	)	$	36		$	45
Fiscal 2014
Income (loss) from continuing operations	$	41	$	4		$	(8	)	$	49
Net income (loss)	$	81	$	42		$	(3	)	$	46

Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions			3 Months Ended	4 Months Ended	12 Months Ended
	Oct. 11, 2013	Jun. 14, 2013 USD ($) $ / shares	Aug. 01, 2014 USD ($)	Jan. 31, 2014	Jan. 30, 2015 USD ($) $ / shares	Jan. 31, 2014 USD ($) $ / shares	Jan. 31, 2013 USD ($) $ / shares	Sep. 27, 2013	Sep. 19, 2013
Significant Accounting Policies [Line Items]
Ownership in VIE	100.00%
Percentage of shares of newly formed company after spin-off transaction								100.00%
Reverse stock split				0.25
Separation transaction expenses					$ 3	$ 51
Increase (decrease) in income due to contract estimates					$ 24	$ 21	$ 19
Increase (decrease) in income due to contract estimates per diluted share \| $ / shares					$ 0.20	$ 0.15	$ 0.14
Noncontrolling ownership interest, less than					50.00%
Goodwill impairment charges			$ 486		$ 486	$ 0	$ 0
Internal research and development costs included in selling, general and administrative expenses					$ 37	45	47
Minimum likelihood of tax benefits being recognized upon ultimate settlement					50.00%
Dividend declared \| $ / shares		$ 4
Payment towards dividends		$ 342
Minimum
Significant Accounting Policies [Line Items]
Operating cycle (in years)					P1Y
Period of extension for deferred payment terms (in years)					1 year
Leidos, Inc.
Significant Accounting Policies [Line Items]
Ownership interest					100.00%
Goodwill impairment charges					$ 486	0	0
Other Intangible Assets
Significant Accounting Policies [Line Items]
Useful life of intangible assets					5 years
Software and Technology \| Minimum
Significant Accounting Policies [Line Items]
Useful life of intangible assets					9 years
Software and Technology \| Maximum
Significant Accounting Policies [Line Items]
Useful life of intangible assets					15 years
Customer Relationships \| Minimum
Significant Accounting Policies [Line Items]
Useful life of intangible assets					5 years
Customer Relationships \| Maximum
Significant Accounting Policies [Line Items]
Useful life of intangible assets					10 years
SAIC
Significant Accounting Policies [Line Items]
Stock issued to Leidos shareholder upon divestiture of SAIC, ratio									1.4286
Separation transaction expenses						$ 55	$ 28

Separation Transaction Expenses (Detail) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Jan. 31, 2014	Nov. 01, 2013	Aug. 02, 2013	May 03, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Accounting Policies [Abstract]
Strategic advisory services					$ 0	$ 7	$ 1
Legal and accounting services					0	2	0
Lease termination and facility consolidation expenses					3	46	2
Severance costs					0	10	8
Separation transaction expenses in operating income					3	65	11
Less: income tax benefit					(1)	(25)	(4)
Separation transaction expenses, net of tax	$ 7	$ 25	$ 19	$ 14	$ 2	$ 40	$ 7

Summary of Significant Accounting Policies Restructuring Reserve (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014
Restructuring Reserve [Roll Forward]
Opening balance	$ 21	$ 10
Charges	3	51
Cash payments	(13)	(40)
Closing balance	11	21
Severance Costs
Restructuring Reserve [Roll Forward]
Opening balance	1	8
Charges	0	10
Cash payments	(1)	(17)
Closing balance	0	1
Lease Termination and Facility Consolidation Expenses
Restructuring Reserve [Roll Forward]
Opening balance	20	2
Charges	3	41
Cash payments	(12)	(23)
Closing balance	$ 11	$ 20

Schedule of Depreciation using Estimated Useful Lives (Detail)	12 Months Ended
	Jan. 30, 2015
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	2 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	10 years
Building \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	30 years
Building \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	40 years
Building improvements and leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	Shorter of lease term or 25
Building improvements and leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	25 years
Office furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	6 years
Office furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	9 years
Generation facility
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	25 years

(Additional Information) (Detail) - USD ($)		1 Months Ended	3 Months Ended		8 Months Ended	12 Months Ended
(Additional Information) (Detail) - USD ($)	Sep. 26, 2013	Feb. 28, 2015	Oct. 31, 2014	May 02, 2014	Sep. 27, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013	Jun. 30, 2013
Discontinued Operations [Line Items]
Proceeds from divestiture of businesses					$ 295,000,000	$ 0	$ 295,000,000	$ 0
Unsecured borrowing capacity									$ 500,000,000
Borrowings outstanding under the revolving credit facility					$ 500,000,000	0	0
Asset impairment charges						81,000,000	51,000,000	0
Leidos, Inc.
Discontinued Operations [Line Items]
Asset impairment charges						$ 81,000,000	$ 51,000,000	0
HES
Discontinued Operations [Line Items]
Proceeds from divestiture of businesses			$ 19,000,000
SAIC \| Leidos, Inc.
Discontinued Operations [Line Items]
Reimbursement to Leidos, Inc.	$ 5,000,000
Capital contribution to new SAIC	$ 26,000,000
Other Disposals
Discontinued Operations [Line Items]
Impairment of assets				$ 12,000,000
Asset impairment charges				$ 9,000,000
Proceeds from discontinued operations								51,000,000
Gain on sale before income tax								$ 17,000,000
Subsequent Event \| Cloudshield Technologies
Discontinued Operations [Line Items]
Proceeds from divestiture of businesses		$ 5,000,000

(Operating Results Classified as Discontinued Operations) (Detail) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Oct. 31, 2014	Aug. 01, 2014	Nov. 01, 2013	Aug. 02, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Discontinued Operation
Bad debt expense			$ 42		$ 5	$ 44	$ 2
Intangible asset impairment	$ 17	$ 24	$ 19	$ 30	41
Separation transaction and restructuring expenses					3	65	11
(Loss) income from discontinued operations before income taxes					(13)	140	330
SAIC
Discontinued Operation
Revenues					39	2,712	4,683
Cost of revenues					39	2,447	4,230
Selling, general and administrative expenses					0	42	65
Bad debt expense					0	0	2
Separation transaction and restructuring expenses					0	55	28
Operating income					0	168	358
Other Disposals
Discontinued Operation
Revenues					29	33	97
Cost of revenues					21	33	81
Selling, general and administrative expenses					29	25	52
Intangible asset impairment					3	2	6
Operating income					(24)	(27)	(42)
Nonoperating Income (Expense)					11	(1)	14
(Loss) income from discontinued operations before income taxes					$ (13)	$ (28)	$ (28)

Dispositions (Schedule of Major Class of Asset and Liabilities Included in Discontinued Operations) (Details) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total current assets	$ 6	$ 39
Total current liabilities	$ 10	$ 6
SAIC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents			$ 1
Receivables, net			717
Inventory, prepaid expenses and other current assets			101
Total current assets			819
Property, plant and equipment, net			29
Intangible assets, net			6
Goodwill			491
Deferred income taxes			2
Other assets			1
Total assets			1,348
Accounts payable and accrued liabilities			461
Accrued payroll and employee benefits			185
Notes payable and long-term debt			1
Total current liabilities			647
Non-current liabilities			0
Total liabilities			$ 647

Schedule of Acquisition Information (Detail) $ in Millions	12 Months Ended
Schedule of Acquisition Information (Detail) $ in Millions	Jan. 31, 2014 USD ($) acquisition	Jan. 31, 2013 USD ($) acquisition
Business Combinations [Abstract]
Number of acquisitions \| acquisition	1	1
Cash consideration (paid and accrued) \| $	$ 111	$ 505

Schedule of Purchase Price Allocations Related to Acquisitions (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Business Acquisition [Line Items]
Tax deductible goodwill	$ 0	$ 0
Non-tax deductible goodwill	$ 0	$ 395
Weighted average lives of finite-lived intangibles (years)	12 years	4 years
Customer Relationships
Business Acquisition [Line Items]
Identifiable intangible assets (finite-lived)	$ 0	$ 62
Weighted average lives of finite-lived intangibles (years)	0 years	5 years
Other
Business Acquisition [Line Items]
Identifiable intangible assets (finite-lived)	$ 3	$ 10
Weighted average lives of finite-lived intangibles (years)	12 years	1 year

Acquisitions - Additional Information (Detail)		1 Months Ended		3 Months Ended		12 Months Ended
Acquisitions - Additional Information (Detail)	Oct. 11, 2013 USD ($) MW	Jul. 31, 2014 USD ($)	Dec. 16, 2013 USD ($)	Jan. 30, 2015 USD ($)	Nov. 01, 2013 USD ($)	Jan. 30, 2015 USD ($)	Jan. 31, 2014 USD ($)	Jan. 31, 2013 USD ($)
Business Acquisition [Line Items]
Receivable due from Plainfield				$ 896,000,000		$ 896,000,000	$ 1,082,000,000
Interest expense						75,000,000	82,000,000	$ 93,000,000
Loss recorded as bad debt					$ 42,000,000	5,000,000	44,000,000	2,000,000
Proceeds from U.S. Treasury cash grant		$ 80,000,000				80,000,000	0	$ 0
Deferred tax assets		$ 27,000,000		$ 311,000,000		$ 311,000,000	$ 241,000,000
Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Percentage of ownership	100.00%
Capacity of power plant \| MW	37.5
Contingent consideration	$ 6,000,000
maxIT Healthcare Holdings, Inc.
Business Acquisition [Line Items]
Percent of acquired stock				100.00%		100.00%
Connecticut Light and Power \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Percentage of power to be purchased	80.00%
Term of agreement	15 years
Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Receivable due from Plainfield	$ 137,000,000
Carlyle Group \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Repayment of principal			$ 152,000,000
Repayment of debt			165,000,000
Interest expense			7,000,000
Early termination fees			$ 6,000,000
Secured Debt \| Carlyle Group \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Number of debt instruments financed by Carlyle Grp	2
Senior notes, face amount	$ 148,000,000
Receivable from PRE Holdings \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Loss recorded as bad debt					$ 32,000,000
Minimum \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Fuel supply agreement, term	5 years
Maximum \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Fuel supply agreement, term	15 years
November 2015 or the successful sale of the plant \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Contingent consideration				$ 2,000,000		$ 2,000,000
Achievement of Milestones \| Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Contingent consideration				3,000,000		$ 3,000,000
Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Asset impairment charges				$ 40,000,000

Acquisitions (Break-up of Purchase Price Allocation) (Details) - USD ($) $ in Millions		12 Months Ended
	Oct. 11, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Business Acquisition [Line Items]
Forgiveness of accounts receivable (net of $32 million bad debt expense)		$ 0	$ 105	$ 0
Plainfield Renewal Energy Holdings LLC
Business Acquisition [Line Items]
Forgiveness of accounts receivable (net of $32 million bad debt expense)	$ 105
Contingent consideration	6
Total purchase consideration	$ 111

Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions		1 Months Ended
	Oct. 11, 2013	Aug. 31, 2012	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Business Combination Allocation of Purchase Price [Line Items]
Goodwill			$ 1,207	$ 1,693	$ 1,693
Plainfield Renewal Energy Holdings LLC
Business Combination Allocation of Purchase Price [Line Items]
Property, plant and equipment	$ 248
Other assets	8
Notes payable assumed (net of debt discount)	(148)
Total identifiable net assets acquired	108
Intangible assets	3
Total purchase consideration	$ 111
maxIT Healthcare Holdings Inc.
Business Combination Allocation of Purchase Price [Line Items]
Cash		$ 9
Receivables		50
Other assets		24
Accounts payable, accrued liabilities and accrued payroll and employee benefits		(21)
Deferred tax liabilities, net		(24)
Total identifiable net assets acquired		38
Goodwill		395
Intangible assets		72
Total purchase consideration		$ 505

Schedule of Changes in Goodwill by Segment (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Aug. 01, 2014	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Goodwill [Roll Forward]
Beginning balance, Goodwill		$ 1,693	$ 1,693
Corporate reorganization			0
Goodwill impairment	$ (486)	(486)	0	$ 0
Ending balance, Goodwill		1,207	1,693	1,693
NSS
Goodwill [Roll Forward]
Beginning balance, Goodwill		788	719
Corporate reorganization			69
Goodwill impairment		0
Ending balance, Goodwill		788	788	719
HES
Goodwill [Roll Forward]
Beginning balance, Goodwill		905	974
Corporate reorganization			(69)
Goodwill impairment		(486)
Ending balance, Goodwill		$ 419	$ 905	$ 974

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Oct. 31, 2014	Aug. 01, 2014	Nov. 01, 2013	Aug. 02, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Goodwill and Intangible Assets [Line Items]
Amortization expense related to amortizable intangible assets					$ 15	$ 35	$ 35
Intangible asset impairment	$ 17	$ 24	$ 19	$ 30	41
Asset impairment charges					81	51	0
Goodwill impairment charges		$ 486			486	0	$ 0
HES
Goodwill and Intangible Assets [Line Items]
Goodwill impairment charges					486
NSS
Goodwill and Intangible Assets [Line Items]
Goodwill impairment charges					0
Plainfield Renewal Energy Holdings LLC
Goodwill and Intangible Assets [Line Items]
Intangible asset impairment					3
Reveal Imaging Technologies, Inc. \| HES
Goodwill and Intangible Assets [Line Items]
Intangible asset impairment					14	30
Vitalize and maxIT \| HES
Goodwill and Intangible Assets [Line Items]
Intangible asset impairment					24	19
Other Intangible Assets
Goodwill and Intangible Assets [Line Items]
Intangible asset impairment						$ 2
Income Approach Valuation Technique
Goodwill and Intangible Assets [Line Items]
Fair Value Input, Specific company risk premium		2.00%
Market Approach Valuation Technique \| HES
Goodwill and Intangible Assets [Line Items]
Fair Value Inputs, control premium		20.00%
Engineering
Goodwill and Intangible Assets [Line Items]
Fair Value as percentage of carrying value		91.00%
Engineering \| HES
Goodwill and Intangible Assets [Line Items]
Goodwill impairment charges		$ 117
Engineering \| Income Approach Valuation Technique
Goodwill and Intangible Assets [Line Items]
Fair Value Inputs, LT revenue growth rate		2.00%
Fair Value Inputs, Cap rate		14.00%
Engineering \| Market Approach Valuation Technique
Goodwill and Intangible Assets [Line Items]
Fair Value Inputs, EBITDA multiple		6.8
Fair Value Inputs, revenue multiple		0.4
Health Solutions
Goodwill and Intangible Assets [Line Items]
Fair Value as percentage of carrying value		62.00%
Health Solutions \| HES
Goodwill and Intangible Assets [Line Items]
Goodwill impairment charges		$ 369
Health Solutions \| Income Approach Valuation Technique
Goodwill and Intangible Assets [Line Items]
Fair Value Inputs, LT revenue growth rate		3.00%
Fair Value Inputs, Cap rate		12.00%
Health Solutions \| Market Approach Valuation Technique
Goodwill and Intangible Assets [Line Items]
Fair Value Inputs, EBITDA multiple		6.0
Fair Value Inputs, revenue multiple		0.5
HES
Goodwill and Intangible Assets [Line Items]
Goodwill					$ 11

Schedule of Intangible Assets Including Estimates of Assets Acquired (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 122	$ 163
Accumulated amortization	(98)	(84)
Net carrying value	24	79
Indefinite-lived intangible assets	13	14
Total intangible assets, Gross carrying value	135	177
Total intangible assets, Net carrying value	37	93
In-Process Research And Development
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	9	10
Trade Names
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4	4
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	70	94
Accumulated amortization	(57)	(47)
Net carrying value	13	47
Software and Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	52	65
Accumulated amortization	(41)	(36)
Net carrying value	11	29
Other
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	0	4
Accumulated amortization	0	(1)
Net carrying value	$ 0	$ 3

Schedule of Amortization Expense for Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 8
2017	7
2018	5
2019	3
2020	1
2021 and thereafter	0
Net carrying value	$ 24	$ 79

Receivables (Details) $ in Millions	3 Months Ended	12 Months Ended
Receivables (Details) $ in Millions	Nov. 01, 2013 USD ($)	Jan. 30, 2015 USD ($) project	Jan. 31, 2014 USD ($) project	Jan. 31, 2013 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed Contracts Receivable		$ 655	$ 794
Unbilled Contracts Receivable		230	288
Accounts receivable, gross		21	15
Allowance for Doubtful Accounts Receivable, Current		10	15
Accounts receivable, net		896	1,082
Bad debt expense	$ 42	5	44	$ 2
Proceeds from sale of receivables			$ 105
One Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts		(7)
Accounts receivable, net, noncurrent		$ 18
Number of projects \| project		1
Proceeds from sale of receivables		$ 21
Two Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of projects \| project			2
Bad debt expense			$ 41

Property Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 621	$ 823
Less accumulated depreciation and amortization	(313)	(341)
Property, plant and equipment, net	308	482
Depreciation	47	45	$ 55
Electric generation facility
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	127	269
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	166	204
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	156	167
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	107	113
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	37	43
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	26	27
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2	$ 0

Schedule of Certain Financial Statement Captions (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Inventory, prepaid expenses and other current assets:
Prepaid income taxes and tax refunds receivable	$ 102	$ 24
Inventories	70	59
Restricted cash	30	18
Prepaid expenses	28	34
Deferred income taxes	12	89
Other	31	32
Total inventory, prepaid expenses and other current assets	273	256
Accounts payable and accrued liabilities:
Accrued liabilities	327	395
Accounts payable	244	218
Collections in excess of revenues on uncompleted contracts and deferred revenue	104	103
Total accounts payable and accrued liabilities	675	716
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees' compensation	138	152
Accrued vacation	123	128
Accrued contributions to employee benefit plans	3	5
Total Accrued payroll and employee benefits	264	285
Other long-term liabilities:
Deferred compensation	39	38
Lease related obligations	31	33
Deferred tax liabilities	21	66
Accrued pension liabilities	8	9
Liabilities for uncertain tax positions	6	12
Other	63	69
Total other long-term liabilities	$ 168	$ 227

Derivative Instruments and Hedging Activities (Details) - Interest rate swaps - Designated as Hedging Instrument - USD ($)	Jan. 30, 2015	Jan. 31, 2014
Notes payable and long-term debt, net of current portion
Derivative [Line Items]
Notes payable and long-term debt, net of current portion	$ 17,000,000	$ 0
Notes payable and long-term debt, net of current portion \| Notes Which Mature In December 2020
Derivative [Line Items]
Hedged instrument, face amount	$ 450,000,000
Stated interest rate	4.45%
Other assets
Derivative [Line Items]
Other assets	$ 17,000,000	$ 0

Debt (Revolving Credit Facility) (Detail)	12 Months Ended
Debt (Revolving Credit Facility) (Detail)	Jan. 30, 2015 USD ($)	Jan. 31, 2014 USD ($)	Jun. 30, 2013 USD ($)
Debt Instrument [Line Items]
Unsecured borrowing capacity			$ 500,000,000
Revolving credit facility financial covenants description	For a period of four trailing fiscal quarters, the Company maintains a ratio of consolidated funded debt, including borrowings under this credit facility, to earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for other items as defined in the credit facility of not more than 3.0 to 1.0 and a ratio of EBITDA adjusted for other items as defined in the credit facility to interest expense of greater than 3.5 to 1.0.
Ratio of consolidated funded debt to EBITDA,Until Jan 29, 2016 numerator, maximum	4
Ratio of consolidated funded debt to EBITDA, numerator, maximum	3.75
Ratio of consolidated funded debt to EBITDA, denominator, maximum	1
Minimum ratio of EBITDA to interest expense, numerator	3.5
Minimum ratio of EBITDA to interest expense, denominator	1
Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity	$ 500,000,000	$ 750,000,000

Debt - Additional Information (Detail) - USD ($)	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jan. 30, 2015	Jan. 31, 2014
Debt Instrument [Line Items]
Fair value adjustment	$ 17,000,000
Gain (loss) on extinguishment of debt	5,000,000
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior unsecured notes	466,000,000	$ 449,000,000
Note payable, face amount	$ 450,000,000
Stated interest rate	4.45%
Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior unsecured notes	$ 232,000,000	300,000,000
Note payable, face amount	$ 300,000,000
Stated interest rate	5.95%
Notes Which Mature In July 2033
Debt Instrument [Line Items]
Senior unsecured notes	$ 182,000,000	$ 296,000,000
Note payable, face amount	$ 300,000,000
Stated interest rate	5.50%
Other Income, Net \| Notes Payable
Debt Instrument [Line Items]
Amortization of financing costs	$ 1,000,000
Senior Notes [Member]
Debt Instrument [Line Items]
Repayments of debt	175,000,000
Senior Notes [Member] \| Notes Which Mature In December 2040
Debt Instrument [Line Items]
Debt repurchased amount	67,000,000
Gain (loss) on extinguishment of debt	3,000,000
Senior Notes [Member] \| Notes Which Mature In July 2033
Debt Instrument [Line Items]
Debt repurchased amount	116,000,000
Gain (loss) on extinguishment of debt	$ 2,000,000

Debt (Detail) - USD ($)	12 Months Ended
Debt (Detail) - USD ($)	Jan. 30, 2015	Jan. 31, 2014
Debt Instrument [Line Items]
Total notes payable and long-term debt	$ 1,166,000,000	$ 1,333,000,000
Total notes payable and long-term debt, net of current portion	1,164,000,000	1,331,000,000
Less current portion	2,000,000	2,000,000
Fair value of notes payable and long-term debt	1,152,000,000	1,350,000,000
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior unsecured notes	$ 466,000,000	449,000,000
Stated interest rate	4.45%
Effective interest rate	4.53%
Senior unsecured notes, face amount	$ 450,000,000
Debt maturity date	Dec. 01, 2020
Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior unsecured notes	$ 232,000,000	300,000,000
Stated interest rate	5.95%
Effective interest rate	6.03%
Senior unsecured notes, face amount	$ 300,000,000
Debt maturity date	Dec. 01, 2040
Notes Which Mature In July 2032
Debt Instrument [Line Items]
Senior unsecured notes	$ 248,000,000	248,000,000
Stated interest rate	7.13%
Effective interest rate	7.43%
Senior unsecured notes, face amount	$ 250,000,000
Debt maturity date	Jul. 01, 2032
Notes Which Mature In July 2033
Debt Instrument [Line Items]
Senior unsecured notes	$ 182,000,000	296,000,000
Stated interest rate	5.50%
Effective interest rate	5.85%
Senior unsecured notes, face amount	$ 300,000,000
Debt maturity date	Jul. 01, 2033
Capital leases and other notes payable due on various dates through fiscal 2021
Debt Instrument [Line Items]
Other notes payable due on various dates through fiscal 2021	$ 38,000,000	$ 40,000,000
Minimum stated interest rate	0.00%
Maximum stated interest rate	3.70%

Schedule of Maturities of Notes Payable and Long-Term Debt (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Note Payable and Long-Term Debt
2016	$ 3
2017	3
2018	2
2019	2
2020	2
2021 and thereafter	1,159
Total principal payments	1,171
Less unamortized discount	5
Total notes payable and long-term debt	$ 1,166	$ 1,333

Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 30, 2013	Jan. 30, 2015	Jan. 31, 2014
Related Party Transaction [Line Items]
Period extension for portions of intercompany loans (years)		1 year
Notes Which Mature In December 2020
Related Party Transaction [Line Items]
Stated interest rate		4.45%
Notes Which Mature In December 2040
Related Party Transaction [Line Items]
Stated interest rate		5.95%
Notes Which Mature In July 2033
Related Party Transaction [Line Items]
Stated interest rate		5.50%
Notes Which Mature In July 2032
Related Party Transaction [Line Items]
Stated interest rate		7.13%
Leidos Holding Inc.
Related Party Transaction [Line Items]
Note receivable from Leidos Holdings, Inc.		$ 1,400,000,000	$ 1,100,000,000
Leidos, Inc.
Related Party Transaction [Line Items]
Credit facility, maturity date		2018
Leidos, Inc. \| Notes Which Mature In December 2020
Related Party Transaction [Line Items]
Notes payable, related parties		$ 450,000,000
Stated interest rate		4.45%
Leidos, Inc. \| Notes Which Mature In December 2040
Related Party Transaction [Line Items]
Notes payable, related parties		$ 300,000,000
Stated interest rate		5.95%
Leidos, Inc. \| Notes Which Mature In July 2033
Related Party Transaction [Line Items]
Notes payable, related parties		$ 300,000,000
Stated interest rate		5.50%
Leidos, Inc. \| Notes Which Mature In July 2032
Related Party Transaction [Line Items]
Notes payable, related parties		$ 250,000,000
Stated interest rate		7.13%
SAIC \| Leidos, Inc.
Related Party Transaction [Line Items]
Distribution upon separation	$ 736,000,000

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Accumulated Other Comprehensive Loss [Abstract]
Foreign currency translation adjustments, net of taxes of $0 million and $(1) million as of January 30, 2015 and January 31, 2014, respectively	$ 1	$ 2
Unrecognized net loss on settled derivative instruments associated with outstanding debt, net of taxes of $3 million as of January 30, 2015 and January 31, 2014, respectively	(5)	(5)
Unrecognized loss on defined benefit plan, net of taxes of $5 million and $2 million as of January 30, 2015 and January 31, 2014, respectively	(7)	(3)
Total accumulated other comprehensive loss, net of taxes of $8 million and $4 million as of January 30, 2015 and January 31, 2014, respectively	$ (11)	$ (6)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Schedule of Accumulated Other Comprehensive Loss (Narrative) (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Equity [Abstract]
Foreign currency translation adjustments, tax effect	$ 0	$ (1)
Unrecognized net loss on settled derivative instruments associated with outstanding debt, tax effect	3	3
Unrecognized loss (gain) on defined benefit plan, tax effect	5	2
Total accumulated other comprehensive loss, tax effect	$ 8	$ 4

Reconciliation of Income used in Calculating Earnings per Share (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jan. 30, 2015

^[1],[2]

Oct. 31, 2014

^[1],[2]

Aug. 01, 2014

^[1],[2]

May 02, 2014

^[1],[2]

Jan. 31, 2014

^[2]

Nov. 01, 2013

^[2]

Aug. 02, 2013

^[2]

May 03, 2013

^[2]

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Basic EPS:

Income (loss) from continuing operations, as reported

$ 26

$ 38

$ (439)

$ 45

$ 47

$ (8)

$ 4

$ 41

$ (330)

$ 84

$ 323

Less: allocation of distributed and undistributed earnings to participating securities

Income (loss) from continuing operations, for computing basic EPS

(330)

316

Net income, as reported

(438)

(3)

(323)

164

525

Less: allocation of distributed and undistributed earnings to participating securities

(3)

(11)

Net income, for computing basic EPS

(323)

161

514

Diluted EPS:

Income (loss) from continuing operations, as reported

(439)

(8)

(330)

323

Less: allocation of distributed and undistributed earnings to participating securities

(3)

(7)

Income (loss) from continuing operations, for computing diluted EPS

(330)

316

Net income, as reported

$ 44

$ 34

$ (438)

$ 37

$ 44

$ (3)

$ 42

$ 81

(323)

164

525

Less: allocation of distributed and undistributed earnings to participating securities

(3)

(11)

Net income, for computing diluted EPS

$ (323)

$ 161

$ 514

[1]

[2]

Income (loss) from continuing operations and net income relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below

Earnings Per Share (Reconciliation of Weighted Average Number of Shares Outstanding) (Details) shares in Millions	4 Months Ended	12 Months Ended
	Jan. 31, 2014	Jan. 30, 2015 shares	Jan. 31, 2014 shares	Jan. 31, 2013 shares
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding		74	83	83
Dilutive common share equivalents—stock options and other stock awards		0	0	0
Diluted weighted average number of shares outstanding		74	83	83
Reverse stock split	0.25

Schedule of Basic and Diluted EPS (Detail) - $ / shares

3 Months Ended

12 Months Ended

Jan. 30, 2015

^[1],[2]

Oct. 31, 2014

^[1],[2]

Aug. 01, 2014

^[1],[2]

May 02, 2014

^[1],[2]

Jan. 31, 2014

^[1]

Nov. 01, 2013

^[1]

Aug. 02, 2013

^[1]

May 03, 2013

^[1]

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Basic:

(Loss) income from continuing operations

$ (4.46)

$ 0.98

$ 3.81

Income from discontinued operations

0.10

0.96

2.38

Basic earnings (loss) per share (usd per share)

$ 0.36

$ 0.52

$ (5.93)

$ 0.58

$ 0.57

$ (0.10)

$ 0.05

$ 0.44

(4.36)

1.94

6.19

Diluted:

(Loss) income from continuing operations

(4.46)

0.98

3.81

Income from discontinued operations

0.10

0.96

2.38

Diluted earnings (loss) per share (usd per share)

$ 0.35

$ 0.51

$ (5.93)

$ 0.58

$ 0.56

$ (0.10)

$ 0.05

$ 0.44

$ (4.36)

$ 1.94

$ 6.19

[1]

Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.

[2]

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

Schedule of Stock-Based Awards Excluded from Weighted Average Shares Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock based awards	4	5	5
Outstanding Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock based awards	3	3	0

Earnings Per Share (Shares Repurchased) (Details) - USD ($) shares in Millions	3 Months Ended		12 Months Ended
	May 02, 2014	Jan. 31, 2014	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased and retired			6.3	5.6
Amount paid to repurchase outstanding shares			$ 215,000,000	$ 319,000,000	$ 22,000,000
Value of initial shares repurchased			215,000,000	319,000,000	$ 22,000,000
Second Accelerated Share Repurchase [Member]
Equity, Class of Treasury Stock [Line Items]
Agreement to repurchase shares, amount			$ 200,000,000
Second Accelerated Share Repurchase, Initial Delivery [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased and retired			4.5
Amount paid to repurchase outstanding shares			$ 200,000,000
Value of initial shares repurchased			$ 168,000,000
Second Accelerated Share Repurchase, Final Delivery [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased and retired			0.8
Value of initial shares repurchased			$ 32,000,000
Accelerated Share Repurchase (ASR)
Equity, Class of Treasury Stock [Line Items]
Agreement to repurchase shares, amount		$ 300,000,000		$ 300,000,000
Number of shares repurchased and retired	1.0	5.6
Amount paid to repurchase outstanding shares		$ 300,000,000
Value of initial shares repurchased		$ 255,000,000
Forward contract indexed to our common stock	$ 45,000,000

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions			4 Months Ended	8 Months Ended	12 Months Ended
	Sep. 27, 2013	Jun. 14, 2013	Jan. 31, 2014	Sep. 27, 2013	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2011	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)			4 years 9 months 18 days	5 years	4 years 8 months 12 days		5 years
Special dividend (per share)					$ 4				$ 4.00
Payment towards dividends		$ 342,000,000
Stock exchanged at fair value upon exercises of stock options						$ 1,000,000
Fair value of vesting awards that vested					$ 34,000,000	$ 49,000,000	$ 66,000,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures					$ 5,000,000
Expected weighted-average period of recognition, years					1 year 6 months
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					10 years
Performance-Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)					3 years
Maximum percentage that will ultimately be awarded					150.00%
Weighted average grant date fair value of the awards granted, excluding dividend equivalents (per share)					$ 36.88		$ 52.52
Vesting Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures					$ 45,000,000
Expected weighted-average period of recognition, years					1 year 7 months 6 days
2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Stock Awards Vest Or Exercisable After Two Years					0.00%
Period of exercise of vested options after participants death or disability (in months)					18 months
Stock awards exercisable period (in months)					P6M
Percentage of stock awards vest or exercisable after three years			20.00%		0.00%	20.00%
Percentage of stock awards vest or exercisable after four years			40.00%		0.00%	40.00%
Stock reserved for future issuance					3.8
Percentage of stock compensation plans awards that vest after January 1, 2006					100.00%
Vesting period (in years)					4 years
2006 Equity Incentive Plan \| Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)					1 year
2006 Equity Incentive Plan \| Group One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)					4 years
2006 Equity Incentive Plan \| Group Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)					7 years
2006 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					7 years			5 years
Vesting period (in years)					4 years
2006 Equity Incentive Plan \| Performance-Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures					$ 1,000,000
Expected weighted-average period of recognition, years					2 years
Fair value of vesting awards that vested					$ 2,300,000	$ 1,500,000	$ 0
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of market price per share for stock purchase program					15.00%
Percentage of market price for employee purchase program for stock purchases during non-compensatory period					5.00%
Shares authorized and reserved for future issuance under the ESPP					12.5
SAIC Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued to Leidos shareholder upon divestiture of SAIC, ratio					1.4523
Increase of expense related to the modification	$ 3,000,000
Additional incremental fair value	3,000,000
Stock based compensation from discontinued operations	$ 6,000,000
Weighted average modification fair value (per share)	$ 1.02

Schedule of Stock-Based Compensation and Related Tax Benefits Recognized (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefits recognized from stock-based compensation	$ 16	$ 22	$ 21
Continuing Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recorded in continuing operations	42	56	53
Continuing Operations \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recorded in continuing operations	5	10	9
Continuing Operations \| Vesting Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recorded in continuing operations	35	46	44
Continuing Operations \| Vested Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recorded in continuing operations	2	0	0
Discontinued Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense recorded in continuing operations	$ 0	$ 21	$ 31

Schedule of Weighted Average Grant-Date Fair Value and Assumptions Used (Detail) - $ / shares

4 Months Ended

8 Months Ended

12 Months Ended

Jan. 31, 2014

Sep. 27, 2013

Jan. 30, 2015

Jan. 31, 2013

Stock-Based Compensation [Abstract]

Weighted average grant-date fair value (per share)

$ 9.04

$ 9.48

$ 6.15

$ 6.76

^[1]

Expected term (in years)

4 years 9 months 18 days

5 years

4 years 8 months 12 days

5 years

Expected volatility, percentage

29.50%

30.00%

25.10%

24.50%

Risk-free interest rate, percentage

1.40%

1.60%

1.00%

Dividend yield, percentage

2.40%

2.80%

2.90%

3.70%

[1]	Adjusted for additional awards granted for the $4.00 Special Dividend

Schedule of Stock Option Activity (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

4 Months Ended

8 Months Ended

12 Months Ended

Jan. 31, 2014

Sep. 27, 2013

Jan. 30, 2015

Jan. 31, 2013

Jan. 31, 2012

Shares of stock under stock options

Outstanding, beginning balance

3.5

4.9

4.5

5.2

Options granted

0.2

1.4

0.7

1.3

Options forfeited or expired

(0.4)

(1.3)

(1.5)

(1.6)

Options exercised

(0.2)

(0.1)

Special dividend adjustments

0.4

Spin-off Adjustment

(1.9)

Outstanding, ending balance

4.5

3.5

3.6

4.9

5.2

Exercisable at year end

1.5

Vested and expected to vest in the future as of year end

3.5

Weighted average exercise price

Outstanding, beginning balance

$ 59.25

$ 67.24

$ 40.32

$ 71.60

Exercisable at year end

40.90

Options granted

45.16

54.86

37.25

52.79

Options forfeited or expired

39.43

71.80

43.90

70.17

Options exercised

43.10

34.89

Outstanding, ending balance

$ 40.32

59.25

38.50

$ 67.24

$ 71.60

Spin-off Adjustment

$ 57.85

Vested and expected to vest in the future as of year end

$ 38.57

Weighted average remaining contractual term and Aggregate intrinsic value

Weighted average remaining contractual term, Outstanding

3 years 9 months 18 days

3 years 10 months 24 days

4 years

3 years

2 years 6 months

Weighted average remaining contractual term, Exercisable at year end

2 years 4 months 24 days

Weighted average remaining contractual term, Vested and expected to vest, years

3 years 10 months 24 days

Aggregate intrinsic value, Outstanding, beginning balance

$ 24

$ 25

Aggregate intrinsic value, Outstanding, Option Exercised

Aggregate intrinsic value, Outstanding, ending balance

$ 25

$ 24

Aggregate intrinsic value, Outstanding, Vested and expected to vest

Aggregate intrinsic value, Exercisable

$ 4

Stock Split

Shares of stock under stock options

Outstanding, beginning balance

^[1]

4.9

Outstanding, ending balance

^[1]

4.9

Weighted average exercise price

Outstanding, beginning balance

^[1]

$ 40.20

Outstanding, ending balance

^[1]

$ 40.20

[1]	Adjusted for Conversion Ratio of 1.4523

Schedule of Vesting Stock Award Activity (Detail) - $ / shares
shares in Millions

4 Months Ended

8 Months Ended

12 Months Ended

Jan. 31, 2014

Sep. 27, 2013

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Shares of stock under stock awards

Shares, beginning balance

2.4

3.1

3.7

3.1

3.0

Shares of stock under stock awards, Awards granted

0.4

^[1]

2.1

0.8

1.7

Shares of stock under stock awards, Awards forfeited

(0.2)

(0.4)

(0.5)

(0.4)

Awards vested

(0.9)

(1.0)

(1.2)

Shares of stock under stock awards, Spin-off Adjustment

(1.5)

Shares, ending balance

3.7

2.4

3.0

3.7

3.1

Weighted average grant- date fair value

Weighted average grant-date fair value, Shares, beginning balance

$ 59.98

$ 60.78

$ 39.58

$ 60.78

$ 70.00

Weighted average grant-date fair value, Awards granted

45.41

^[1]

53.51

37.06

52.48

Weighted average grant-date fair value, Awards forfeited

39.75

58.28

39.05

62.84

Weighted average grant-date fair value, Awards vested

64.76

41.08

71.28

Weighted average grant-date fair value, Shares, Spin-off Adjustment

57.04

Weighted average grant-date fair value, Shares, ending balance

$ 39.58

$ 59.98

$ 38.51

$ 39.58

$ 60.78

Stock Split

Shares of stock under stock awards

Shares, beginning balance

^[2]

3.5

Shares, ending balance

^[2]

3.5

Weighted average grant- date fair value

Weighted average grant-date fair value, Shares, beginning balance

^[2]

$ 41.54

Weighted average grant-date fair value, Shares, ending balance

^[2]

$ 41.54

[1]	Adjusted for Conversion Ratio of 1.4523
[2]	Includes Modified Performance-Based Awards

Schedule of Performance-Based Stock Award Activity (Detail) - USD ($)
$ / shares in Units, $ in Millions

4 Months Ended

8 Months Ended

12 Months Ended

Jan. 31, 2014

Sep. 27, 2013

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Expected number of shares of stock to be issued under performance-based stock awards

Shares, beginning balance

2,400,000

3,100,000

3,700,000

3,100,000

3,000,000

Awards granted

400,000

^[1]

2,100,000

800,000

1,700,000

Awards canceled

(200,000)

(400,000)

(500,000)

(400,000)

Awards vested

(900,000)

(1,000,000)

(1,200,000)

Shares, ending balance

3,700,000

2,400,000

3,000,000

3,700,000

3,100,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

Weighted average grant-date fair value, Shares, beginning balance

$ 59.98

$ 60.78

$ 39.58

$ 60.78

$ 70.00

Weighted average grant-date fair value, Awards granted

45.41

^[1]

53.51

37.06

52.48

Weighted average grant-date fair value, Awards forfeited

39.75

58.28

39.05

62.84

Weighted average grant-date fair value, Awards vested

64.76

41.08

71.28

Weighted average grant-date fair value, Shares, ending balance

$ 39.58

$ 59.98

$ 38.51

$ 39.58

$ 60.78

Fair value of vesting awards that vested

$ 34

$ 49

$ 66

Performance-Based Stock Awards

Expected number of shares of stock to be issued under performance-based stock awards

Shares, beginning balance

300,000

100,000

300,000

Awards granted

100,000

Awards canceled

^[2]

(200,000)

Awards vested

(100,000)

Shares, ending balance

100,000

^[3]

100,000

300,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

Weighted average grant-date fair value, Shares, beginning balance

$ 52.96

$ 36.65

$ 52.96

Weighted average grant-date fair value, Awards granted

37.64

Weighted average grant-date fair value, Awards forfeited

^[2]

53.11

Weighted average grant-date fair value, Awards vested

36.69

Weighted average grant-date fair value, Shares, ending balance

$ 36.65

$ 37.70

^[3]

$ 36.65

$ 52.96

Performance period (in years)

3 years

[1]	Adjusted for Conversion Ratio of 1.4523
[2]	Includes Modified Performance-Based Stock Awards
[3]	Adjusted for Conversion Ratio of 1.4523

Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Income Tax Disclosure [Abstract]
Current, Federal and foreign	$ 16	$ 32	$ (52)
Current, State	(6)	13	9
Deferred, Federal and foreign	26	(28)	55
Deferred, State	11	(13)	10
Total	$ 47	$ 4	$ 22

Schedule of Reconciliation of Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Income Tax Disclosure [Abstract]
Amount computed at the statutory federal income tax rate (35%)	$ (99)	$ 31	$ 121
State income taxes, net of federal tax benefit	3	0	10
Taxable conversion of subsidiary	(116)	0	0
Change in valuation allowance for deferred tax assets	105	0	0
Change in accruals for uncertain tax positions	2	(5)	(1)
CityTime uncertain tax liability	0	0	(96)
Research and development credits	(4)	(3)	(5)
Dividends paid to employee stock ownership plan	(4)	(22)	(9)
U.S. manufacturing activity benefit	0	(3)	(1)
Non-deductible penalties	0	4	0
Non-deductible goodwill	156	0	0
Other	4	2	3
Total	$ 47	$ 4	$ 22
Effective income tax rate	(16.60%)	4.50%	6.40%
Statutory federal income tax rate	35.00%	35.00%	35.00%

Schedule Of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jul. 31, 2014	Jan. 31, 2014
Income Tax Disclosure [Abstract]
Accrued vacation and bonuses	$ 44		$ 62
Investments	3		3
Deferred compensation	39		38
Vesting stock awards	28		34
Credits and net operating losses carryovers	9		27
Employee benefit contributions	4		3
Capital loss carryover	113		0
Reserves	41		51
Deferred rent and tenant allowances	15		14
Other	15		9
Total deferred tax assets	311	$ 27	241
Valuation allowance	(120)		(7)
Deferred tax assets, net of valuation allowance	191		234
Deferred revenue	(47)		(31)
Fixed asset basis differences	0		(27)
Purchased intangible assets	(121)		(138)
Deferred Tax Liabilities, Partnership Interest	(10)		0
Other	(8)		0
Total deferred tax liabilities	(186)		(196)
Net deferred tax assets	$ 5		$ 38

Schedule of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions	Jan. 30, 2015	Jan. 31, 2014
Income Tax Disclosure [Abstract]
Net current deferred tax assets	$ 12	$ 89
Deferred income taxes	14	15
Net non-current deferred tax liabilities	(21)	(66)
Net deferred tax assets	$ 5	$ 38

Schedule of Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Additions for tax positions related to current year	$ 2	$ 0	$ 0
Additions for tax positions related to prior years	11	2	2
Reductions for tax positions related to prior years	(5)	0	(107)
Settlements with taxing authorities	1	0	1
Lapse of statute of limitations	(4)	(9)	(2)
Unrecognized tax benefits at end of year	17	14	21
Unrecognized tax benefits at beginning of year	14	21	129
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$ 5	$ 6	$ 10

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Aug. 01, 2014	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Income Taxes [Line Items]
Goodwill impairment charges	$ 486	$ 486	$ 0	$ 0
Capital loss on investment in stock		160
Capital gain on assets		58
Capital loss carryover		102
Valuation allowance on the deferred tax asset related to the capital loss carryforward		102
Ordinary gain recognized		34
Decrease in unrecognized tax benefits due to resolutions with tax authorities		(7)
CityTime uncertain tax liability		0	0	96
Tax benefit from dividend paid to New SAIC's employees		7
Tax benefit from special dividend paid by the company		11
Tax benefit due to conversion of subsidiary to LLC from Partnership		18
Reversal of accruals for unrecognized tax benefits		11	2	$ 2
Unrecognized tax benefits accrued interest and penalties		2	2
Liabilities for uncertain tax positions		19	16
Liabilities for uncertain tax positions, long-term		6	$ 12
Amount of reasonably possible resolution of reviews		14
Capital Loss Carryforward [Member]
Income Taxes [Line Items]
State tax credit carryforwards		292
State
Income Taxes [Line Items]
State tax credit carryforwards		12
State tax credits		$ 8

Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Pension and Other Postretirement Benefits Disclosure [Line Items]
Maximum percentage certain employees can defer from salary for certain plans	20.00%
Pension plan asset			$ 46
Pension plan obligation			63
Projected benefit obligation	$ 121	$ 106
Fair value of plan assets	113	98
Funded status of plan	8	9
Deferred Compensation Plans
Pension and Other Postretirement Benefits Disclosure [Line Items]
Compensation expense	$ 62	$ 81	$ 92

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Jan. 30, 2015 USD ($)
Disclosure Leases Additional Information [Abstract]
Capital lease obligations	$ 2
Remaining term of capital lease	3 years

Leases (Schedule of Rental Expense for Facilities and Equipment) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Leases [Abstract]
Gross rental expense	$ 107	$ 181	$ 154
Less lease and sublease income	(9)	(6)	(4)
Net rental expense	$ 98	$ 175	$ 150

Leases (Schedule of Future Minimum Lease Commitments and Sublease Receipts under Non-Cancelable Operating Leases) (Detail) $ in Millions	Jan. 30, 2015 USD ($)
Operating lease Commitment
2016	$ 88
2017	76
2018	66
2019	55
2020	41
2021 and thereafter	70
Total	396
Sublease receipts
2016	7
2017	7
2018	5
2019	4
2020	3
2021 and thereafter	9
Total	$ 35

Leases (Sale and Leaseback Agreement) (Details) $ in Millions		1 Months Ended
	May 03, 2013 a Building	Jul. 26, 2013 USD ($) Building
May 2013 Sales Lease Back Agreement
Sale Leaseback Transaction [Line Items]
Area of land \| a	18
Number of real estate properties \| Building	4
Period to complete transaction	6 years
Number of buildings leased back \| Building		3
Number of buildings sold \| Building		2
Proceeds from sale		$ 83
Fairfax County, Virginia, Two Office Buildings
Sale Leaseback Transaction [Line Items]
Proceeds from sale		40
Book value of the building sold		42
Net loss on sales and disposals of assets		$ 2
Term of lease		P6M
Notes Payable, Other Payables
Sale Leaseback Transaction [Line Items]
Term of debt instrument		7 years
Rate of interest		3.70%
Other Long-term Liabilities \| Multi-level Parking Garage
Sale Leaseback Transaction [Line Items]
Allocated consideration to Note parable and Other long-term liabilities		$ 1
Other Long-term Liabilities \| Surface Parking Lots
Sale Leaseback Transaction [Line Items]
Allocated consideration to Note parable and Other long-term liabilities		4
Notes payable and long-term debt, net of current portion \| Notes Payable, Other Payables
Sale Leaseback Transaction [Line Items]
Allocated consideration to Note parable and Other long-term liabilities		$ 38

Schedule of Supplementary Cash Flow Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
Supplemental Cash Flow Information [Abstract]
Vested stock issued as settlement of annual bonus accruals	$ 1	$ 2	$ 2
Stock issued in lieu of cash dividends	3	18	3
Capital lease obligations	0	1	0
Fair value of assets acquired in acquisitions	0	259	541
Cash paid in acquisitions, net of cash acquired of $9 million in fiscal 2013	0	(3)	(483)
Forgiveness of accounts receivable to acquire equity interest in business combination	0	(105)	0
Accrued liability for acquisition of business	0	(3)	(13)
Liabilities assumed in acquisitions	0	148	45
Cash paid for interest (including discontinued operations)	74	82	92
Cash paid for income taxes (including discontinued operations)	55	63	128
Cash acquired in acquisitions	$ 0	$ 0	$ 9

Schedule of Segment Reporting Information by Segment (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jan. 30, 2015

^[1]

Oct. 31, 2014

^[1]

Aug. 01, 2014

^[1]

May 02, 2014

^[1]

Jan. 31, 2014

Nov. 01, 2013

Aug. 02, 2013

May 03, 2013

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Segment Reporting Information [Line Items]

Revenues

$ 1,169

$ 1,276

$ 1,306

$ 1,312

$ 1,291

$ 1,414

$ 1,457

$ 1,593

$ 5,063

$ 5,755

$ 6,449

Operating income (loss)

$ 37

$ 72

$ (410)

$ 87

$ 81

$ (5)

$ 10

$ 77

(214)

163

421

Amortization of intangible assets

Operating Segments | NSS

Segment Reporting Information [Line Items]

Revenues

3,594

4,049

4,650

Operating income (loss)

286

292

360

Amortization of intangible assets

Operating Segments | HES

Segment Reporting Information [Line Items]

Revenues

1,485

1,718

1,805

Operating income (loss)

(472)

138

Amortization of intangible assets

Operating Segments | Corporate and Other

Segment Reporting Information [Line Items]

Revenues

(16)

(9)

(1)

Operating income (loss)

(28)

(149)

(77)

Intersegment Eliminations

Segment Reporting Information [Line Items]

Revenues

$ 0

$ (3)

$ (5)

[1]

Business Segment Information - Additional Information (Detail)	12 Months Ended
	Jan. 30, 2015
Segment Reporting [Abstract]
Percentage of revenues contributed by external customers to total revenues	10.00%

Schedule of Total Revenue Percentages Contributable to Specific Government Agencies (Detail) - Government Contracts Concentration Risk	12 Months Ended
	Jan. 30, 2015	Jan. 31, 2014	Jan. 31, 2013
US DoD
Segment Reporting Information [Line Items]
Percentage of sales	67.00%	68.00%	70.00%
U.S. Government
Segment Reporting Information [Line Items]
Percentage of sales	79.00%	78.00%	81.00%
U.S. Army
Segment Reporting Information [Line Items]
Percentage of sales	16.00%	19.00%	23.00%
Maryland Procurement Office
Segment Reporting Information [Line Items]
Percentage of sales	10.00%	8.00%	8.00%

Legal Proceedings - Additional Information (Detail) $ in Millions	1 Months Ended					3 Months Ended	12 Months Ended
	Jun. 30, 2014 plaintiff	May 30, 2014 plaintiff	Jul. 31, 2013 USD ($)	Aug. 31, 2012	Mar. 31, 2012 USD ($)	Apr. 30, 2012 LegalMatter executive	Jan. 30, 2015 USD ($)	Jan. 31, 2014 USD ($)	Sep. 27, 2013 USD ($)	Nov. 30, 2008 USD ($)
Legal Proceedings [Line Items]
Administrative agreement, term (in years)				5 years
DPA provides that the monitor will serve for a period (in years)				3 years
Amount outstanding							$ 0	$ 0	$ 500
Timekeeping Contract with City of New York
Legal Proceedings [Line Items]
Cash settlement payment					$ 500
Securities Class Actions
Legal Proceedings [Line Items]
Number of lawsuits \| LegalMatter						3
Number of lawsuits, withdrawn \| LegalMatter						1
Number of lawsuits, consolidated \| LegalMatter						2
Number of former CEO's \| executive						2
Greek Government Contract
Legal Proceedings [Line Items]
Company received an arbitral award			$ 44				22
Recorded losses							123
Greek Government Contract \| Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Letter of credit available to the company							17
Greek Government Contract \| Standby Letters of Credit
Legal Proceedings [Line Items]
Letter of credit available to the company							18
Greek Government Contract \| Invoice For Undisputed Portion Of Contract
Legal Proceedings [Line Items]
Contracts receivable										$ 16
Greek Government Contract \| Value Added Taxes
Legal Proceedings [Line Items]
Contracts receivable							28
Receivables relating to value added taxes							12
Greek Government Contract \| Letters of Credit Related System Support and Maintenance \| Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Amount outstanding							$ 4
Data Privacy Litigation
Legal Proceedings [Line Items]
Number of plaintiffs \| plaintiff	2	2

Other Commitments and Contingencies - Additional Information (Detail) $ in Millions		8 Months Ended	12 Months Ended
	Dec. 17, 2014 USD ($)	Sep. 27, 2013 USD ($)	Jan. 30, 2015 USD ($)	Jan. 31, 2014 USD ($)	Nov. 30, 2012 patents
Other Commitments And Contingencies [Line Items]
Estimated accruals for claims incurred but not yet reported			$ 16	$ 19
Government Investigations And Reviews
Other Commitments And Contingencies [Line Items]
Liability for estimate of loss		$ 27
Loss contingency accrual			41
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Amount outstanding			60
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds			$ 224
Bechtel SAIC Company, LLC
Other Commitments And Contingencies [Line Items]
Ownership interest			30.00%
SAIC \| Government Investigations And Reviews
Other Commitments And Contingencies [Line Items]
Liability for estimate of loss		18
Virnet X Inc
Other Commitments And Contingencies [Line Items]
Number of patents infringed \| patents					2
Litigation settlement	$ 23		$ 368
Percentage receivable by the company	35.00%
Pre-Separation \| Government Investigations And Reviews
Other Commitments And Contingencies [Line Items]
Liability for estimate of loss		$ 45

Schedule of Selected Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Jan. 30, 2015

Oct. 31, 2014

Aug. 01, 2014

May 02, 2014

Jan. 31, 2014

Nov. 01, 2013

Aug. 02, 2013

May 03, 2013

Jan. 30, 2015

Jan. 31, 2014

Jan. 31, 2013

Quarterly Financial Information [Line Items]

Revenues

$ 1,169

^[1]

$ 1,276

^[1]

$ 1,306

^[1]

$ 1,312

^[1]

$ 1,291

$ 1,414

$ 1,457

$ 1,593

$ 5,063

$ 5,755

$ 6,449

Operating income

^[1]

(410)

^[1]

(5)

(214)

163

421

Income (loss) from continuing operations

^[1],[2]

(439)

^[1],[2]

^[2]

(8)

^[2]

(330)

323

Income from discontinued operations

^[1]

(4)

^[1]

(8)

^[1]

(3)

202

Net (loss) income

$ 44

^[1],[2]

$ 34

^[1],[2]

$ (438)

^[1],[2]

$ 37

^[1],[2]

$ 44

^[2]

$ (3)

^[2]

$ 42

^[2]

$ 81

^[2]

$ (323)

$ 164

$ 525

Basic earnings (loss) per share ( usd per share)

$ 0.36

^[1],[3]

$ 0.52

^[1],[3]

$ (5.93)

^[1],[3]

$ 0.58

^[1],[3]

$ 0.57

^[3]

$ (0.10)

^[3]

$ 0.05

^[3]

$ 0.44

^[3]

$ (4.36)

$ 1.94

$ 6.19

Diluted earnings (loss) per share ( usd per share)

$ 0.35

^[1],[3]

$ 0.51

^[1],[3]

$ (5.93)

^[1],[3]

$ 0.58

^[1],[3]

$ 0.56

^[3]

$ (0.10)

^[3]

$ 0.05

^[3]

$ 0.44

^[3]

$ (4.36)

$ 1.94

$ 6.19

Leidos, Inc.

Quarterly Financial Information [Line Items]

Revenues

$ 5,063

$ 5,755

$ 6,449

Operating income

(214)

163

421

Income (loss) from continuing operations

$ 27

$ 40

$ (437)

$ 46

$ 49

$ (8)

$ 4

$ 41

(324)

324

Income from discontinued operations

202

Net (loss) income

$ 45

$ 36

$ (436)

$ 38

$ 46

$ (3)

$ 42

$ 81

$ (317)

$ 166

$ 526

[1]	Fiscal 2014 quarterly results include the following charges: 1) intangible asset impairment charges of $30 million and $19 million in the second and third quarter, respectively; 2) bad debt expense for certain receivables related to two energy design-build construction projects of $42 million in the third quarter; and 3) separation transaction and restructuring expenses in each of the quarters of approximately $14 million, $19 million, $25 million, and $7 million, respectively. For further information see,
[2]	Income (loss) from continuing operations and net income relate to Leidos Holdings, Inc. only. See Leidos, Inc.'s amounts detailed below
[3]	Earnings (loss) per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for the fiscal year.

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Schedule of Selected Quarterly Financial Data (Footnotes) (Detail) $ in Millions	3 Months Ended						4 Months Ended	12 Months Ended
	Oct. 31, 2014 USD ($)	Aug. 01, 2014 USD ($)	Jan. 31, 2014 USD ($)	Nov. 01, 2013 USD ($)	Aug. 02, 2013 USD ($)	May 03, 2013 USD ($)	Jan. 31, 2014	Jan. 30, 2015 USD ($)	Jan. 31, 2014 USD ($)	Jan. 31, 2013 USD ($)
Quarterly Financial Information Disclosure [Abstract]
Goodwill impairment		$ (486)						$ (486)	$ 0	$ 0
Intangible asset impairment	$ 17	$ 24		$ 19	$ 30			41
Bad debt expense				42				5	44	2
Separation transaction expenses, net of tax			$ 7	$ 25	$ 19	$ 14		$ 2	$ 40	$ 7
Reverse stock split							0.25