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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 30, 2016	Feb. 14, 2017	Jul. 01, 2016
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	LDOS
Entity Registrant Name	Leidos Holdings, Inc.
Entity Central Index Key	0001336920
Current Fiscal Year End Date	--12-30
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		150,352,251
Entity Public Float			$ 3,457,775,161

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Current assets:
Cash and cash equivalents	$ 376	$ 656
Receivables, net	1,657	921
Inventory, prepaid expenses and other current assets	348	216
Total current assets	2,381	1,793
Property, plant and equipment, net	259	142
Intangible assets, net	1,589	25
Goodwill	4,622	1,207
Deferred income taxes	16	8
Other assets	265	195
Total assets	9,132	3,370
Current liabilities:
Accounts payable and accrued liabilities	1,427	761
Accrued payroll and employee benefits	483	268
Dividends payable	23	2
Income taxes payable	21	6
Notes payable and long-term debt, current portion	62	2
Liabilities of discontinued operations	0	1
Total current liabilities	2,016	1,040
Notes payable and long-term debt, net of current portion	3,225	1,079
Deferred tax liabilities	540	34
Other long-term liabilities	204	149
Commitments and contingencies (Notes 17, 20 and 21)
Total liabilities and stockholders' equity	9,132	3,370
Stockholder's equity:
Preferred stock, $.0001 par value,10 million shares authorized and no shares issued and outstanding at December 30, 2016 and January 1, 2016	0	0
Common stock, $.0001 par value, 500 million shares authorized, 150 million and 72 million shares issued and outstanding at December 30, 2016, and January 1, 2016, respectively	0	0
Additional paid-in capital	3,316	1,353
Accumulated deficit	(177)	(277)
Accumulated other comprehensive loss	(4)	(8)
Non-controlling interest	12	0
Total equity	3,147	1,068
Total stockholder's equity	$ 3,135	$ 1,068

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 30, 2016	Jan. 01, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (shares)	10,000,000	10,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (shares)	500,000,000	500,000,000
Common stock, shares issued (shares)	150,000,000	72,000,000
Common stock, shares outstanding (shares)	150,000,000	72,000,000

Consolidated Statements Of Income - USD ($) $ in Millions	11 Months Ended		12 Months Ended
Consolidated Statements Of Income - USD ($) $ in Millions	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Income Statement [Abstract]
Revenues	$ 4,712	$ 4,690	$ 7,043	$ 5,063
Cost of revenues	4,146	4,069	6,191	4,392
Selling, general and administrative expenses	201	280	334	310
Bad debt expense	8	4	3	5
Acquisition and integration costs	0	0	90	0
Goodwill impairment charges	0	486	0	486
Asset impairment charges	33	41	4	81
Restructuring expenses	4	1	14	3
Equity earnings of non-consolidated subsidiaries	0	0	(10)	0
Operating income (loss)	320	(191)	417	(214)
Interest income	4	1	10	1
Interest expense	(53)	(71)	(96)	(75)
Other (expense) income, net	84	5	(13)	5
Income (loss) from continuing operations before income taxes	355	(256)	318	(283)
Income tax expense	(112)	(67)	(72)	(47)
Income (loss) from continuing operations	243	(323)	246	(330)
Discontinued operations:
Loss from discontinued operations before income taxes	(1)	(14)	0	(13)
Income tax benefit	0	3	0	20
(Loss) income from discontinued operations	(1)	(11)	0	7
Net income (loss)	242	(334)	246	(323)
Less: net income attributable to non-controlling interest, net of taxes	0	0	2	0
Net income (loss) attributable to Leidos common stockholders	$ 242	$ (334)	$ 244	$ (323)
Basic:
Income (loss) from continuing operations attributable to Leidos common stockholders (usd per share)	$ 3.33	$ (4.36)	$ 2.39	$ (4.46)
Discontinued operations, net of taxes (usd per share)	(0.01)	(0.15)	0.00	0.10
Net income (loss) attributable to Leidos common stockholders (usd per share)	3.32	(4.51)	2.39	(4.36)
Diluted:
Income (loss) from continuing operations attributable to Leidos common stockholders (usd per share)	3.28	(4.36)	2.35	(4.46)
Discontinued operations, net of taxes (usd per share)	(0.01)	(0.15)	0.00	0.10
Net income (loss) attributable to Leidos common stockholders (usd per share)	$ 3.27	$ (4.51)	$ 2.35	$ (4.36)

Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 242	$ (334)	$ 246	$ (323)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of taxes of $1 million for fiscal 2016 and fiscal 2015	(1)	(1)	(7)	(1)
Unrecognized gain on derivative instruments, net of taxes of ($10) million for fiscal 2016	1	1	14	0
Pension liability adjustments, net of taxes of $2 million, ($2) million, $2 million and $3 million for fiscal 2016, the 11-month periods ended January 1, 2016 and January 2, 2015, and fiscal 2015, respectively	3	(4)	(3)	(4)
Total other comprehensive income (loss), net of taxes	3	(4)	4	(5)
Comprehensive income (loss)	245	(338)	250	(328)
Less: comprehensive income attributable to non-controlling interest, net of taxes	0	0	2	0
Comprehensive income (loss) attributable to Leidos	$ 245	$ (338)	$ 248	$ (328)

Consolidated Statements of Comprehensive Income (loss) (Parenthetical) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax			$ 1	$ 1
Unrecognized gain on derivative instruments, tax			(10)
Pension liability adjustments, tax	$ (2)	$ 2	$ 2	$ 3

Consolidated Statements Of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Leidos Holdings, Inc. stockholders' equity	Shares of common stock	Additional paid-in capital	Accumulated earnings (deficit)	Accumulated other comprehensive loss	Non-controlling interest
Balance, shares at Jan. 31, 2014			80.0
Balance, value at Jan. 31, 2014	$ 1,595	$ 1,595		$ 1,576	$ 25	$ (6)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(323)	(323)			(323)
Other comprehensive income (loss), net of tax	(5)	(5)				(5)
Issuances of stock (less forfeitures), shares			1.0
Issuances of stock (less forfeitures)	$ 1	1		1
Repurchases of stock, shares	(6.3)		(7.0)
Repurchases of stock and other	$ (215)	(215)		(178)	(37)
Dividends	(89)	(89)			(89)
Adjustments for income tax benefits from stock-based compensation	(6)	(6)		(6)
Stock-based compensation	42	42		42
Stock issued for the IS&GS Business acquisition	0
Other	(2)	(2)		(2)
Balance, shares at Jan. 30, 2015			74.0
Balance, value at Jan. 30, 2015	998	998		1,433	(424)	(11)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	242	242			242
Other comprehensive income (loss), net of tax	3	3				3
Issuances of stock (less forfeitures), shares			1.0
Issuances of stock (less forfeitures)	7	7		7
Repurchases of stock, shares			(3.0)
Repurchases of stock and other	(118)	(118)		(118)
Dividends	(95)	(95)			(95)
Adjustments for income tax benefits from stock-based compensation	1	1		1
Stock-based compensation	30	30		30
Stock issued for the IS&GS Business acquisition	0
Balance, shares at Jan. 01, 2016			72.0
Balance, value at Jan. 01, 2016	1,068	1,068		1,353	(277)	(8)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	246	244			244		2
Other comprehensive income (loss), net of tax	4	4				4
Issuances of stock (less forfeitures), shares			1.0
Issuances of stock (less forfeitures)	36	36		36
Repurchases of stock and other	(24)	(24)		(24)
Dividends	(144)	(144)			(144)
Special cash dividend of $13.64 per share	(1,022)	(1,022)		(1,022)
Stock-based compensation	35	35		35
Stock issued for the IS&GS Business acquisition, shares			77.0
Stock issued for the IS&GS Business acquisition	2,938	2,938		2,938
Equity interest acquired	10						10
Balance, shares at Dec. 30, 2016			150.0
Balance, value at Dec. 30, 2016	$ 3,147	$ 3,135		$ 3,316	$ (177)	$ (4)	$ 12

Consolidated Statements Of Equity (Parenthetical) - $ / shares	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividend per share	$ 1.28	$ 1.28	$ 1.28
Special cash dividend		$ 13.64

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Cash flows from operations:
Net income (loss)	$ 242	$ (334)	$ 246	$ (323)
Income (loss) from discontinued operations	1	11	0	(7)
Adjustments to reconcile net income (loss) to net cash provided by continuing operations:
Depreciation and amortization	41	58	122	62
Stock-based compensation	30	40	35	42
Goodwill impairment charges	0	486	0	486
Asset impairment charges	33	41	4	81
Gain on a real estate sale	(82)	0	0	0
Other	6	4	0	8
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	(19)	68	123	162
Inventory, prepaid expenses and other current assets	3	6	(101)	(12)
Accounts payable and accrued liabilities	102	(41)	(25)	(43)
Accrued payroll and employee benefits	5	10	26	(21)
Increase (Decrease) in Income Taxes	81	37	36	(31)
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net	(44)	(1)	(20)	(8)
Total cash flows provided by operating activities of continuing operations	399	385	446	396
Cash flows from investing activities:
Payments for property, plant and equipment	(27)	(29)	(29)	(29)
Acquisitions of businesses	(2)	0	25	0
Payments on accrued purchase price related to prior acquisition	(13)	0	0	0
Net proceeds from sale of assets	79	0	3	0
Proceeds from disposition of business	27	0	23	0
Proceeds from collections on promissory note	0	0	4	0
Proceeds from U.S. Treasury cash grant	0	80	0	80
Total cash flows provided by investing activities of continuing operations	64	51	26	51
Cash flows from financing activities:
Payments of long-term debt	(39)	(154)	(277)	(177)
Payments on real estate financing transaction	(8)	0	0	0
Proceeds from debt issuance	0	0	690	0
Payments for debt issuance costs	0	0	(30)	0
Proceeds from issuances of stock	6	7	25	7
Repurchases of stock and other	(118)	(213)	(24)	(215)
Special cash dividend payment	0	0	(993)	0
Dividend payments	(93)	(72)	(142)	(95)
Other	3	1	0	2
Total cash flows used in financing activities of continuing operations	(249)	(431)	(751)	(478)
(Decrease) increase in cash and cash equivalents from continuing operations	214	5	(279)	(31)
Cash flows from discontinued operations:
(Decrease) increase in cash and cash equivalents from discontinued operations	(7)	(5)	0	15
Cash (used in) provided by operating activities of discontinued operations	6	29	(1)	29
(Decrease) increase in cash and cash equivalents from discontinued operations	(1)	24	(1)	44
Total (decrease) increase in cash and cash equivalents	213	29	(280)	13
Cash and cash equivalents at beginning of year	443	430	656	430
Cash and cash equivalents at end of year	$ 656	$ 459	$ 376	$ 443

Summary of Significant Accounting Policies

12 Months Ended

Dec. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Nature of Operations and Basis of Presentation

Leidos Holdings, Inc. ("Leidos") is a holding company whose direct 100%-owned subsidiaries and principal operating companies are Leidos, Inc. and Leidos Innovations Corporation ("Leidos Innovations"). Leidos is a global science and technology solutions company that provides technology and engineering solutions in the defense, intelligence, homeland security, civil and health markets. Leidos brings domain-specific capability and cross-market innovations to customers in each of these markets by leveraging seven core capabilities: command, control, computing, communications and intelligence surveillance and reconnaissance ("C4ISR"); cybersecurity; systems engineering; large-scale agile software development; data analytics; enterprise IT modernization; and operations and sustainment. Leidos' domestic customers include agencies of the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Health and Human Services, other U.S. Government civil agencies and state and local government agencies. Leidos' international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia. Unless indicated otherwise, references to the "Company," "we," "us" and "our" refer collectively to Leidos Holdings, Inc., and its consolidated subsidiaries.

On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with the Information Systems & Global Solutions business (the "IS&GS Business") of Lockheed Martin Corporation in a Reverse Morris Trust transaction. The acquired IS&GS Business was renamed Leidos Innovations Corporation. See "Note 2–Acquisitions" for further information. As a result of the Lockheed Martin transaction, the Company received an interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Jacobs Engineering Group, Inc. and Centerra Group, LLC. The Company has consolidated the financial results for MSA into its consolidated financial statements.

The consolidated financial statements of Leidos include the balances of its majority-owned and 100%-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The Company disaggregated "Goodwill and intangible assets, net" into "Goodwill" and "Intangible assets, net"; separately disclosed "Dividends payable" and "Income taxes payable," which were previously aggregated within "Accounts payable and accrued liabilities"; and separately disclosed "Deferred tax liabilities," which was previously aggregated within "Other long-term liabilities" on the consolidated balance sheets.

Reporting Periods

As a result of this change, the Company filed a Transition Report on Form 10-K for the 11-month period which began on January 31, 2015, and ended on January 1, 2016.

This change did not impact the Company's prior reported fiscal years, which covered a 12-month period and ended on the Friday closest to January 31. Fiscal 2015 began on February 1, 2014, and ended on January 30, 2015.

This Annual Report on Form 10-K for fiscal 2016 covers a 12-month period that began on January 2, 2016, and ended on December 30, 2016.

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 indirect cost billings, allowances for doubtful accounts, inventories, fair value and impairment of intangible assets and goodwill, income taxes, estimated profitability of long-term contracts, pension benefits, stock-based compensation expense and contingencies. Estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates.

Restructuring Expenses

Restructuring expenses are incurred in connection with programs aimed at reducing the Company's costs and primarily include lease termination, vacancy costs and termination costs associated with headcount reduction. A liability for costs associated with vacant or idle facilities is recognized and measured initially at its fair value in the period in which the liability is incurred and the use of the facility has ceased. Sublease loss liabilities are estimated and recorded, as of the estimated sublease commencement date, and adjusted when necessary. Liabilities associated with reduced headcount occur when the obligations are probable and estimable based on management's approval date for these termination benefit obligations regardless of whether the Company has communicated its decision to terminate the employees.

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 therefore generally classified as current assets and current liabilities.

Business Combinations, Investments and Variable Interest Entities

Business Combinations

The accounting for business combinations requires the Company to make judgments and estimates related to the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities and contingencies assumed. Such judgments and estimates directly impact the amount of goodwill recognized in connection with an acquisition.

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.

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.

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, cost-plus-incentive-fee and fixed-price-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 cannot 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.

Fixed-price-incentive fee (“FP-IF”)—Contracts are substantially similar to cost plus incentive fee contracts recognized using the percentage-of-completion method of accounting except they require specified targets for cost and profit, price ceiling (but not a profit ceiling or floor), and profit adjustment formula. Under an FP-IF contract, the allowable costs incurred are eligible for reimbursement but are subject to a cost-share arrangement, which affects profitability. Generally, if costs exceed the contract target cost or are not allowable under the applicable regulations, the Company may not be able to obtain reimbursement for all costs and may have fees reduced or eliminated.

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. Revenues generated from product sales do not represent a material amount of the Company's total revenues.

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 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's indirect cost audits by the DCAA remain open for fiscal 2012 and subsequent fiscal years for Leidos, Inc. and for fiscal 2009 and subsequent fiscal years for Leidos Innovations Corporation. 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 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 contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes, with the exception of IS&GS contracts where the adjustment is for the period commencing from the date of acquisition. Changes in these estimates can routinely occur over the contract performance period for a variety of reasons, including changes in contract scope, contract cost estimates and estimated incentive or award fees.

Changes in estimates on contracts for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions, except for per share amounts)
Net favorable impact to income (loss) from continuing operations before taxes	$	37	$	18	$	24
Impact on diluted EPS from continuing operations attributable to Leidos common stockholders	$	0.22	$	0.14	$	0.20

Divestitures

From time-to-time, the Company may dispose (or management may commit to plans to dispose) of strategic or non-strategic components of the business. Divestitures representing a strategic shift in operations are reclassified as discontinued operations for all periods presented. Non-strategic divestitures are not reclassified as discontinued operations and remain in continuing operations.

During fiscal 2015, the Company adopted the provisions of Accounting Standards Update ("ASU") 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, which designated new discontinued operations qualification criteria. For the divestitures presented in this Annual Report for periods prior to the 11-month period ended January 1, 2016, the provisions in ASU 2014-08 were not applicable and thus the divestitures reclassified as discontinued operations for those periods represent both non-strategic and strategic shifts in operations.

Pre-contract and Transition Costs

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.

Transition Costs

Under certain services contracts, costs are incurred, usually at the beginning of the contract performance, to transition the services, employees and equipment from the customer or prior contractor. These costs are capitalized as deferred assets and amortized over the shorter of the contractual period of performance or expected period of performance, if recoverability is deemed probable. Payments received from the customer for the performance of the transition services are deferred and amortized to over the same period as costs.

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 (see "Financial Instruments" below). At December 30, 2016, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis using Level 3 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.

The Company’s non-financial instruments measured at fair value on a non-recurring basis include goodwill, indefinite-lived intangible assets and long-lived tangible assets. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions. As such, the Company generally classifies non-financial instruments as either Level 2 or Level 3 fair value measurements. On August 16, 2016, the Company had non-financial instruments measured at fair value on a non-recurring basis in connection with the acquisition of Lockheed Martin's IS&GS Business. Refer to "Note 2–Acquisitions" for the preliminary fair values of the assets acquired and liabilities assumed. At December 30, 2016, the Company did not have any material non-financial instruments measured at fair value on a non-recurring basis.

The carrying amounts of the Company’s financial instruments, other than derivatives, which include cash equivalents, accounts receivable, accounts payable and accrued expenses, are reasonable estimates of their related fair values. The carrying value of the Company's notes receivable (see "Note 3–Divestitures" and "Note 17–Leases") as of December 30, 2016, of $92 million approximates fair value as the stated interest rates within the agreements are consistent with the current market rates used in notes with similar terms in the market (Level 2 inputs). The fair value of long-term debt (see "Note 11–Debt") is determined based on current interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements (Level 2 inputs).

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 manages its risk to changes in interest rates through the use of derivative instruments.

For fixed rate borrowings, the Company uses variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings. These swaps are designated as fair value hedges. The fair value of these interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve (Level 2).

For variable rate borrowings, the Company uses fixed interest rate swaps, effectively converting a portion of the variable rate borrowings to fixed rate borrowings. These swaps are designated as cash flow hedges. The fair value of these interest rate swaps is determined based on observed values for the underlying interest rate (Level 2).

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

The Company's defined benefit plan 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).

Cash and Cash Equivalents

The Company’s cash equivalents were primarily comprised of investments in several large institutional money market funds and bank deposits, with original maturity of three months or less. There are immaterial restrictions on the withdrawal of the Company’s cash and cash equivalents of foreign currency due to exchange control regulations.

Restricted Cash

The Company has restricted cash balances, primarily representing advances from customers that are restricted as to use for certain expenditures related to that customer's contract. Restricted cash balances are included as "Inventory, prepaid expenses and other current 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 consists of accounts receivable. Since the Company’s receivables are primarily with the U.S. Government, the Company does not have exposure to a material credit risk. Additionally, the Company is subject to credit risk related to its derivatives. This risk is limited, as the Company's derivatives are managed through the use of multiple counterparties with high credit standards.

Receivables

The Company’s accounts receivable include amounts billed and currently due from customers. As of the 11-month period ended January 1, 2016, the amounts billable within the next month were classified as billed receivables. Such receivables were classified as unbilled receivables for fiscal 2016.

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.

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 security products and baggage scanning equipment. The Company evaluates inventory against historical and planned usage to determine appropriate provisions for obsolete inventory.

Property, Plant and Equipment

Purchases of property, plant and equipment as well as costs associated with major renewals and improvements are capitalized. Maintenance, repairs and minor renewals and improvements 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	Not to exceed 40
Building improvements and leasehold improvements	Straight-line	Shorter of useful life of asset or remaining lease term
Office furniture	Straight-line or declining-balance	6-9

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.

Project Assets

Purchases of project assets are capitalized for specific contracts where delivery has not yet occurred or ownership is maintained by the Company over the life of the contract. Project assets include enterprise software licenses, computers, and significant material purchases on contracts. These project assets are relieved from the balance sheet based on different methodologies, including transfer of assets, amortization based on useful life and percentage of completion utilizing efforts expended method of revenue recognition.

Goodwill

Goodwill represents purchase consideration paid in a business combination that exceeds the fair values of the net assets of acquired businesses. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level annually, on the first day of the fourth quarter, and during interim periods, if events or circumstances indicate that the carrying value may not be recoverable. The Company's policy is to perform its annual goodwill impairment evaluation as of the first day of the fourth quarter of its fiscal year.

The change in the Company's fiscal year-end from the Friday nearest the end of January to the Friday nearest the end of December resulted in an annual goodwill impairment test date for the 11-month period ended January 1, 2016, that was approximately one month earlier than in previous years. The change in the annual goodwill impairment testing date was deemed to be a change in accounting principle, which the Company believes to be preferable. The change was made to better align with the Company's most significant customer’s fiscal year as well as the Company's year-end reporting cycle and annual planning and budgeting process, which is a significant element in the annual goodwill impairment test. This change in accounting principle did not delay, accelerate or avoid a goodwill impairment charge. The annual goodwill impairment test was performed on November 1, 2014, for fiscal 2015, and on October 3, 2015, for the 11-month period ended January 1, 2016, such that a period greater than 12 months did not elapse between test dates. The change in the annual goodwill impairment testing date was applied prospectively beginning on October 3, 2015, and had no effect on the consolidated financial statements. This change was not applied retrospectively as it is impracticable to objectively determine valuation estimates in prior periods.

Goodwill is evaluated for impairment either under a qualitative assessment option or a two-step quantitative approach depending on the facts and circumstances of a reporting unit, including consideration of 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 than 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, no further analysis is required. If the estimated fair value of a reporting unit is less than its carrying value, 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 performed.

The market approach is a technique where the fair value is calculated based on fair values of publicly-traded companies that provide a reasonable basis of comparison with the 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 technique where the fair value is calculated based on present value of future cash flows using risk-adjusted discount rates, which represent the weighted-average cost of capital ("WACC") for each reporting unit. Determination of WACC includes assessing the cost of equity and debt 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.

Intangible Assets

Acquired 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		8-10
Software and technology		9-15
Programs and contract intangibles		10
Backlog		1

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 6—Intangible Assets" for impairment charges taken during the 11-month period ended January 1, 2016 and fiscal 2015.

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. For fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, company-funded IR&D expense was $44 million, $29 million and $37 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 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.

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. Gains and losses due to movements in foreign currency exchange rates, are recognized in the Company's consolidated statements of income (loss).

Accounting Standards Updates Adopted

During fiscal 2016, the Company adopted the following Accounting Standard Updates (ASUs):

In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update eliminates separate presentation for debt issuance costs as an asset and requires issuance costs to be reported in the balance sheet as a direct reduction to the face amount of the associated debt. The Company adopted this ASU on a retrospective basis during the Company's first quarter ended April 1, 2016. This resulted in a reclassification of deferred financing costs related to the Company's notes of $7 million from "Other assets" to "Notes payable and long-term debt, net of current portion" as of January 1, 2016.

In March 2016, the FASB issued ASU 2016-09 Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. Among other requirements in the new standard, the ASU requires that an entity, (i) recognize excess tax benefits and deficiencies related to employee share-based payment transactions as an income tax expense or benefit in the income statement rather than in equity; (ii) present the excess tax benefits as an operating activity on the statement of cash flows versus current guidance to present them as financing activities; and, (iii) elect to either recognize stock forfeitures as they occur or estimate them. During the quarter ended July 1, 2016, the Company elected to early adopt the provisions of the ASU prospectively from January 2, 2016, including continuation of estimating forfeitures instead of recording them as they occur. Consequently, the Company recognized an $8 million discrete tax benefit for fiscal 2016, and operating cash flows for fiscal 2016 increased $8 million with a corresponding decrease to financing cash flows.

The Company adopted various other accounting standard updates, 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 an entity should recognize revenue to depict the transfer of control for promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue principles, an entity will identify the contract(s) with a customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when the performance obligation is satisfied (i.e., either over time or point in time). The ASU further states that an entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The original effective date for public companies was the beginning of fiscal 2017.

Subsequently, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which approved a one-year deferral of the effective date of the ASU to the beginning of fiscal 2018, with an option for early adoption of the standard on the original effective date.

The Company will adopt the new revenue standard in the beginning of fiscal 2018. We are in the process of evaluating the adoption methodology of the standard along with the potential impacts. The Company has substantially completed an initial assessment of the new standard and began to quantify the financial statement impact. We believe the majority of our long-term contracts will continue to recognize revenue over time as the work progresses because of the continuous transfer of control to the customer, generally using an input measure (e.g., cost incurred) to reflect progress.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU will supersede the current lease guidance under ASC 840 and makes several changes, such as requiring an entity to recognize a right-of-use asset and corresponding lease obligation in the balance sheet, classified as financing or operating, as appropriate. The update is effective for public companies in the beginning of fiscal 2019 and should be adopted under the modified retrospective approach. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-02 and its impact on the Company's consolidated financial position, results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU eliminates the requirement that a credit loss on a financial instrument be “probable” prior to recognition. Instead, a valuation allowance will be recorded to reflect an entity’s current estimate of all expected credit losses, based on both historical and forecasted information related to an instrument. The update is effective for public companies in the beginning of fiscal 2020 and should be adopted using a modified-retrospective approach, which applies a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. A prospective approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date and loans and debt securities acquired with deteriorated credit quality. The guidance may be early-adopted for fiscal 2019. The Company is evaluating the provisions of ASU 2016-13 and its impact on the Company's consolidated financial position, results of operations and cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. This ASU clarifies guidance for cash flow classification to reduce current and potential future diversity in practice. The update is effective for public companies in the beginning of fiscal 2018. The amendments should be applied using a retrospective transition method to each period presented. For items that are impractical to apply the amendments retrospectively, they shall be applied prospectively as of the earliest date practicable. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-15 and its impact on the Company's consolidated cash flows.

In November, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU amends the presentation and disclosure requirements of restricted cash and restricted cash equivalents. The majority of the amendments revise how restricted cash and restricted cash equivalents are presented in the statements of cash flows. The update is effective for public companies in the beginning of fiscal 2018 and should be applied on a retrospective basis. Early adoption is permitted. The Company is evaluating the provisions of ASU 2016-18 and its impact on the Company's consolidated cash flows.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 of the goodwill impairment test and simplifies how the amount of an impairment loss is determined. The update is effective for public companies in the beginning of fiscal year 2020 and shall be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the provisions of ASU 2017-04 and its impact on the Company's consolidated financial position, results of operation and cash flows.

Various other accounting standard updates were issued but are not effective for the Company until periods subsequent to December 30, 2016. The Company is still evaluating the guidance or does not expect these updates to have a material impact on its consolidated financial position, results of operations, or cash flows.

Acquisitions

12 Months Ended

Dec. 30, 2016

Business Combinations [Abstract]

Acquisitions

The Company may acquire businesses as part of its growth strategy to provide new or enhance existing capabilities and offerings to customers. During fiscal 2016, the Company completed the acquisition of Lockheed Martin's IS&GS Business (as described below). No businesses were acquired during the 11-month period ended January 1, 2016, and fiscal 2015.

Lockheed Martin Transaction

On January 26, 2016, Leidos announced that it had entered into a definitive agreement (as amended, the "Merger Agreement") with Lockheed Martin Corporation ("Lockheed Martin"); Abacus Innovations Corporation, a Delaware corporation and a wholly owned subsidiary of Lockheed Martin ("Splitco"); and Lion Merger Co., a Delaware corporation and, at the time of announcement, a wholly owned subsidiary of Leidos ("Merger Sub"), pursuant to which Leidos would combine with Lockheed Martin’s realigned Information Systems & Global Solutions business in a Reverse Morris Trust transaction. In connection with the Merger Agreement, Lockheed Martin and Splitco entered into a Separation Agreement dated January 26, 2016 (as amended, the "Separation Agreement"), pursuant to which Lockheed Martin would separate the IS&GS Business from Lockheed Martin and transfer the IS&GS Business to Splitco. The transactions contemplated by the Merger Agreement and the Separation Agreement are referred to herein as the “Transactions.”

On August 16, 2016, the acquisition date, the Company completed the Transactions. In the Transactions, among other steps, (i) Lockheed Martin transferred the IS&GS Business to Splitco; (ii) Lockheed Martin offered to Lockheed Martin stockholders the right to exchange all or a portion of their shares of Lockheed Martin common stock for shares of Splitco common stock by way of an exchange offer (the "Distribution"); and (iii) Merger Sub merged with and into Splitco, with Splitco as the surviving corporation (the "Merger") and a wholly owned subsidiary of Leidos. Additionally, on the closing date of the Transactions, Splitco's name was changed to Leidos Innovations Corporation. Upon consummation of the Transactions, those Lockheed Martin stockholders who elected to participate in the exchange offer received approximately 77 million shares of Leidos common stock, which represent approximately 50.5% of the outstanding shares of Leidos common stock after consummation of the Transactions. Holders of Leidos shares prior to the transaction held the remaining 49.5% of the outstanding shares of Leidos common stock immediately after the closing.

Prior to the Distribution, Splitco incurred third-party debt financing in an aggregate principal amount of $1.8 billion and immediately thereafter, Lockheed Martin transferred the IS&GS Business to Splitco and Splitco made a special cash payment to Lockheed Martin of $1.8 billion.

In connection with the Transactions, Leidos incurred new indebtedness and assumed Splitco's indebtedness in the form of term loans in an aggregate principal amount of $690 million and $1.8 billion, respectively, and entered into a new $750 million senior secured revolving credit facility, which replaced its existing revolving credit facility. See "Note 11–Debt" for further information regarding the new debt incurred and the new senior revolving credit facility.

In conjunction with the Transactions, Leidos' Board of Directors declared a special dividend of $13.64 per share of Leidos common stock. Consequently, on August 22, 2016, the Company paid $993 million to stockholders of record as of August 15, 2016, and accrued $29 million of dividend equivalents with respect to outstanding equity awards. See "Note 14–Stock-Based Compensation" for further information regarding the modifications made to the Company's outstanding stock awards as a result of the special dividend.

As a result of the Transactions, membership on the Leidos Board of Directors was increased to 12 directors, in which three directors designated by Lockheed Martin were appointed to the board. A majority of the senior management of Leidos immediately prior to the consummation of the Transactions remained Leidos executive officers immediately after the Transactions. Leidos management determined that Leidos is the accounting acquirer in the Transactions based on the facts and circumstances noted within this section and other relevant factors.

The acquisition adds large, complex IT system implementation and operation experience and additional federal and international IT solutions and services work to the Leidos portfolio, providing more venues to sell value added services such as cybersecurity and analytics. As a result, the Company is more diversified in markets it serves and provides the Company the scale and access to markets intended to further growth.

In connection with the Transactions, certain additional agreements were entered into, including, among others an employee matters agreement, a tax matters agreement, transition services agreements, an intellectual property matters agreement, agreements relating to certain government contracts matters, supply agreements and certain real estate related agreements.

The preliminary purchase consideration for the acquisition of the IS&GS Business was as follows (in millions):



Value of common stock issued to Lockheed Martin stockholders⁽¹⁾	$	2,929
Equity consideration for replacement awards⁽²⁾	9
Preliminary working capital adjustments	50
Preliminary purchase price	$	2,988

⁽¹⁾ Represents approximately 77 million new shares of Leidos common stock issued to those Lockheed Martin stockholders who elected to participate in the exchange offer, based on the Company's August 16, 2016, closing share price of $51.69, less the Leidos special cash dividend amount of $13.64, which the Lockheed Martin stockholders were not entitled to receive.

⁽²⁾ The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger (see "Note 14–Stock-Based Compensation").

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



Cash	$	25
Receivables, net	940
Inventory, prepaid expenses and other current assets	71
Property, plant and equipment	137
Deferred tax assets	12
Intangible assets	1,650
Other assets	23
Accounts payable and accrued liabilities	(700		)
Accrued payroll and employee benefits	(190		)
Long-term debt, current portion	(23		)
Deferred tax liabilities	(532		)
Long-term debt, net of current portion	(1,780		)
Other long-term liabilities	(50		)
Total identifiable net liabilities assumed	(417		)
Non-controlling interest	(10		)
Goodwill	3,415
Preliminary purchase price	$	2,988

Due to the timing and complexity of the Transactions, the Company recorded the assets acquired and liabilities assumed at their preliminary estimated fair values. As of December 30, 2016, the Company had not finalized the determination of fair values allocated to various assets and liabilities, including, but not limited to, receivables, net; property, plant and equipment; deferred income taxes; deferred revenue; intangible assets; accounts payable and accrued liabilities; loss contracts; non-controlling interest; residual amount allocated to goodwill; and the allocation of goodwill. The preliminary purchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of the Transactions, which could have a material impact. During the fourth quarter of fiscal 2016, the Company recorded valuation adjustments to certain preliminary estimated fair values which resulted in an increase of $41 million in property, plant and equipment, a $23 million decrease in deferred tax assets, a $34 million reduction in receivables, a $315 million reduction in deferred tax liabilities, a $32 million increase in other long-term liabilities and a $252 million reduction in goodwill.

The goodwill is attributable to the new reportable IS&GS segment. The goodwill represents intellectual capital and the acquired assembled work force, none of which qualify for recognition as a separate intangible asset. The preliminary goodwill presented above includes $418 million of tax deductible goodwill.

The Company identified $1.7 billion of intangible assets, representing programs and contract intangibles and backlog. The following table summarizes the preliminary fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period:



	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs and contract intangibles⁽¹⁾	10.0	$	1,450
Backlog	1.4	200
Total	9.0	$	1,650

⁽¹⁾ An average 10-year amortization period for programs and contract intangibles has been estimated based on the projected economic benefits associated with these assets. Programs and contract intangibles are amortized using the pattern of economic benefit, which approximates discounted future cash flows. Refer to "Note 6 - Intangible Assets" for additional information.

The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business:



	12 Months Ended
	December 30, 2016
	(in millions)
Acquisition costs	$	44
Integration costs	46
Total acquisition and integration costs	$	90

Pro Forma Financial Information (unaudited)

The following pro forma financial information presents consolidated results of operations as if the acquisition had occurred on January 31, 2015. The pro forma financial information was prepared based on historical financial information and has been adjusted to give effect to the events that are directly attributable to the Transactions and factually supportable. The pro forma results below do not reflect future events that have occurred or may occur after the Transactions, including anticipated synergies or other expected benefits that may be realized from the Transactions. The pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had been completed on January 31, 2015, nor is it intended to be an indication of future operating results.



	12 Months Ended		11 Months Ended
(unaudited)	December 30, 2016		January 1, 2016
	(in millions, except for per share amounts)
Revenues	$	10,443	$	9,868
Income from continuing operations	342		343
Income from continuing operations attributable to Leidos common stockholders	336		338
Earnings per share:
Basic	$	2.24	$	2.25
Diluted	$	2.21	$	2.24

The unaudited pro forma financial information above includes the following nonrecurring significant adjustment made to account for certain costs incurred as if the Transactions had been completed on January 31, 2015:


•	Acquisition-related costs of $44 million were excluded within the pro forma financial information for fiscal 2016 and were included within the supplemental pro forma earnings for the 11-month period ended January 1, 2016.

- 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
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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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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 805
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Divestitures

12 Months Ended

Dec. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

In April 2016, the Company’s Health and Infrastructure ("HIS") segment disposed of a business that was primarily focused on providing design, build and heavy construction engineering services. The Company received cash proceeds of $23 million, resulting in a preliminary pre-tax gain on sale of $3 million. The major classes of assets and liabilities sold included $73 million of accounts receivable, net; $3 million of non-current assets and $63 million of accounts payable and accrued liabilities. In addition, the Company recorded a $6 million liability in connection with issuance of a performance guarantee on a contract and guarantee of collection of the accounts receivables transferred. The Company paid $1 million of selling costs related to the transaction. The Company recorded the pre-tax gain on sale in "Other (expense) income, net" in the Company's consolidated statements of income (loss).

Plainfield Renewable Energy Holdings LLC

Plainfield Renewable Energy Holdings LLC ("Plainfield") is a 37.5 megawatt biomass-fueled power plant in Plainfield, Connecticut (the "plant"). On October 11, 2013, the Company became the primary beneficiary of Plainfield, which required the consolidation of the VIE. The Company also determined that Plainfield met the definition of a business and as such gained control of 100% of PRE Holdings equity through the consensual foreclosure agreement which constituted a change in control accounted for as a business combination. Subsequent to the business combination, three of the acquired fuel supply agreements were impaired in fiscal 2015. See "Note 6—Intangible Assets" for further information.

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 Company's consolidated balance sheets. 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 (see further discussion below).

In March 2015, the Company entered into a definitive Membership Interest Purchase Agreement (the "Agreement") to sell 100% of the equity membership interest in Plainfield resulting in an approximate $40 million impairment charge in the Company's Health and Infrastructure segment in January 2015 to adjust the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business (Level 1).

During the quarter ended July 3, 2015, further negotiations occurred related to the sale of Plainfield resulting in an approximate $29 million impairment charge. The Company adjusted the carrying values of Plainfield's assets to their fair values based on the estimated selling price of the business pursuant to the terms of the Agreement that was amended on July 17, 2015 (Level 1). The Company recorded these tangible asset impairment charges in "Asset impairment charges" in the Company’s consolidated statements of income (loss).

On July 24, 2015, the Company completed the sale of its equity interests in Plainfield for an aggregate consideration of $102 million, subject to certain adjustments, and contingent earn-out payments. The consideration received at closing consisted of a cash payment of $29 million (the "Closing Payment") and a secured promissory note for $73 million, net of discount (the "Note"). The sale resulted in an immaterial deferred gain. In addition to the Closing Payment and the Note, the Company is eligible to receive certain contingent earn-out payments not to exceed $30 million. The Company will recognize any consideration for the contingent earn-out payments when received. In conjunction with the sale of the plant, the Company paid $2 million of the purchase price contingent consideration accrued at January 30, 2015, based on the successful sale of the plant. The remaining accrued contingent consideration was released and not paid as the selling price did not meet the qualifications for the payment of the remaining contingent consideration.

The maturity date of the Note is July 24, 2017 (the "Original Maturity Date"), with an option to extend the maturity date for three consecutive one-year periods. The annual interest rate of 6% will increase to 8% if the maturity date is extended beyond July 24, 2017, and will increase to 9% if extended beyond July 24, 2019. The first payment of accrued and unpaid interest was due January 24, 2016, with subsequent payments occurring every six months, including a portion of the principal balance. The note allows for a six-month deferral of certain payments due in January 2016, and July 2016. In January 2016 and July 2016, the Company was notified by the buyer that the interest payment due on January 24, 2016 would be deferred to the next payment date, and a portion of the principal payment due on July 24, 2016, would be deferred to the next payment due date. The Company collected $6 million of principal and interest during fiscal 2016.

The remaining unpaid principal amount and accrued interest is due on the Original Maturity Date (as may be extended as described above) or each six months thereafter, if extended. Payments under the Note are secured by a general security interest in the personal property of Plainfield, a pledge of the membership interests of Plainfield and a first mortgage on the real property that comprises the plant. As of December 30, 2016, the Company expects the Note to be collectible in full.

As outlined in the amended Agreement, the buyer represents to the Company that it meets the definition of a qualified buyer in regards to the terms in the U.S. Treasury cash grant. During the remaining recapture period that follows the closing date of the sale, the buyer and any following acquired companies, including any transferred membership interests to these companies, is contractually obligated to remain a qualified buyer, and the buyer shall cause any transferee of the plant permitted under the Agreement to enter into a written agreement to be jointly liable for any recapture event. In addition, the buyer and any continuing membership interests to acquired companies shall operate the plant as an “open-loop biomass” facility in accordance with Section 1603 of the cash grant, timely file all reports related to Section 1603 and indemnify the Company for any liabilities incurred that may arise if these obligations are breached. Based on the indemnification in the Agreement, and since the onus is on the buyer to comply with the conditions of the grant, the Company has deemed a recapture event not probable; therefore, has not recorded a liability associated with a potential recapture of the grant.

Discontinued Operations

In August 2014, the Company sold a business, historically included in the Company's Health and Infrastructure segment, which primarily focused on full service emergency management consulting for disaster preparedness, response, recovery and mitigation, for cash proceeds of $19 million, resulting in an immaterial gain on sale.

In January 2014, the Company committed to plans to dispose of Cloudshield Technologies, Inc. ("Cloudshield"), historically included in the Company's National Security Solutions segment, which was previously acquired in fiscal 2011 and primarily 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, resulting in an immaterial loss on sale.

In August 2013, the Company committed to plans to dispose of a business, historically included in the Company's National Security Solutions segment, which primarily focused on technology used to detect if an individual is concealing explosive devices or other hidden weapons. In the first quarter ended May 2, 2014, 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 $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 May 2014 with insignificant cash proceeds received, resulting in an immaterial loss on sale.

Separation of New SAIC

The Company completed the spin-off of New SAIC on September 27, 2013. 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:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Revenues	$	14	$	17	$	39
Cost of revenues	14		17		39
Operating income	$	—	$	—	$	—

The operating results through the date of disposal of the Company's discontinued operations discussed above, excluding the spin-off of New SAIC, for the periods presented were as follows:



	11 Months Ended			12 Months Ended
	January 1, 2016			January 30, 2015
	(in millions)
Revenues	$	—		$	29
Cost of revenues	—			21
Selling, general and administrative expenses (including impairment charges of $9 million for the fiscal year ended January 30, 2015)	2			29
Intangible asset impairment charges	—			3
Operating loss	$	(2	)	$	(24	)
Non-operating income	$	1		$	11

The operating results for fiscal 2016 for the Company's discontinued operations above, excluding the spin-off of New SAIC, were immaterial.

The major classes of assets and liabilities included in discontinued operations through the date of disposal for the periods presented are immaterial for disclosure purposes.

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

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 10: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Restructuring Expenses

12 Months Ended

Dec. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring Expenses

IS&GS Business Acquisition

After the acquisition of the IS&GS Business, the Company began an initiative to align its cost structure, which includes optimization of its real estate portfolio by vacating certain facilities and consolidating others, and by reducing headcount.

The related restructuring expenses were as follows:



	12 Months Ended
	December 30, 2016
	(in millions)
Severance costs	$	10
Lease termination expenses	2
Restructuring expenses related to the IS&GS Business in operating income	$	12

These restructuring expenses have been recorded within the Corporate and Other segment and presented separately within "Restructuring expenses" on the consolidated statements of income (loss).

The related restructuring liability at December 30, 2016, was:



	Severance Costs			Lease Termination Expenses			Total
	(in millions)
Balance as of January 1, 2016	$	—		$	—		$	—
Charges	10			2			12
Cash payments	(3		)	(1		)	(4		)
Balance as of December 30, 2016	$	7		$	1		$	8

The Company does not expect the restructuring liability to be fully settled within one year.

Separation of New SAIC and Real Estate Optimization Initiatives

In fiscal 2014, in anticipation of the spin-off of New SAIC from the Company, the Company initiated an overall spin-off program to align the Company’s cost structure for post spin-off.

The restructuring expenses related to the separation of New SAIC and the Company's real estate optimization initiatives were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Lease termination expenses	$	2	$	4	$	3

During fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, the lease termination expenses related to lease losses and an adjustment to reserves for lease losses from the spin-off due to revised sublease income assumptions. The termination expenses were recorded within the Corporate and Other segment and presented separately within "Restructuring expenses" on the consolidated statements of income (loss).

The restructuring liability related to the separation of New SAIC at December 30, 2016, was:



	Lease Termination Expenses
	(in millions)
Balance as of January 30, 2015	$	11
Charges	1
Cash payments	(5		)
Balance as of January 1, 2016	$	7
Charges	2
Cash payments	(5		)
Balance as of December 30, 2016	$	4

The Company does not expect the restructuring liability to be fully settled within one year.

Goodwill

12 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company has the following reportable segments that contain goodwill: National Security Solutions ("NSS"), Health and Infrastructure ("HIS") and Information Systems & Global Solutions ("IS&GS").

The balance and changes in the carrying amount of goodwill by segment, including the preliminary fair value of goodwill related to the acquisition of the IS&GS Business, were as follows:



	NSS		HIS		IS&GS		Total
	(in millions)
Goodwill at January 30, 2015	$	788	$	419	$	—	$	1,207
Adjustments	—		—		—		—
Goodwill at January 1, 2016	$	788	$	419	$	—	$	1,207
Acquisition of the IS&GS Business	—		—		3,415		3,415
Goodwill at December 30, 2016	$	788	$	419	$	3,415	$	4,622

⁽¹⁾Accumulated impairment losses at January 1, 2016, and December 30, 2016, were $486 million within the HIS segment.

Based on a qualitative analysis performed during the Company's annual impairment evaluation for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 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 for periods mentioned above.

During the second quarter of fiscal 2015, the Health Solutions reporting unit within HIS 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 Infrastructure reporting unit within HIS 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 Infrastructure 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 Infrastructure 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 Infrastructure 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 Infrastructure 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 Infrastructure 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 Infrastructure reporting units of $369 million and $117 million, respectively, for the second quarter ended August 1, 2014, which represents the difference between the carrying value and the implied fair value.

Intangible Assets

12 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets, including the preliminary fair values of those acquired through the purchase of the IS&GS Business, consisted of the following:



	December 30, 2016							January 1, 2016
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Customer relationships	$	6	$	(5	)	$	1	$	20	$	(16	)	$	4
Software and technology	61		(48		)	13		61		(44		)	17
Programs and contract intangibles	1,450		(25		)	1,425		—		—			—
Backlog	200		(54		)	146		—		—			—
Total finite-lived intangible assets	1,717		(132		)	1,585		81		(60		)	21
Indefinite-lived intangible assets:
Trade names	4		—			4		4		—			4
Total intangible assets	$	1,721	$	(132	)	$	1,589	$	85	$	(60	)	$	25

The Company recognized intangible asset impairment charges of $4 million and $41 million for the 11-month period ended January 1, 2016 and fiscal 2015, respectively. There were no intangible asset impairment charges during fiscal 2016. Intangible asset impairment charges were recorded in "Asset impairment charges" in the Company's consolidated statements of income (loss).

The Company determined that certain customer relationship intangible assets associated with Vitalize and maxIT were not recoverable due to lower projected revenue and operating income levels from the associated customers. As a result, the Health and Infrastructure reportable segment recognized impairment charges of $24 million during fiscal 2015 to reduce the carrying value of these intangible assets to their estimated fair values. Additionally, in the 11-month period ended January 1, 2016, the Health and Infrastructure reportable segment recognized an impairment charge of $4 million to write-off the remaining carrying value (with a gross carrying value of $38 million).

The Company determined that certain intangible assets consisting of software and technology, associated with the acquisition of Reveal Imaging Technologies, Inc. were not recoverable due to lower projected revenue levels from the associated products and customers. As a result, the Health and Infrastructure reportable segment recognized impairment charges of $14 million during fiscal 2015, to reduce the carrying value of these intangible assets to their estimated fair values.

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 Infrastructure 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 fair value of the impairment charges described above were estimated using the income approach based on management's forecast of future cash flows to be derived from the assets' use (Level 3).

Amortization expense related to amortizable intangible assets, including the preliminary amortization for acquired IS&GS intangibles, was $84 million, $8 million and $15 million for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, respectively. The acquired programs and contract intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future cash flows on a discounted basis. The acquired backlog intangible asset, as well as the Company's existing customer relationships and software and technology intangible assets, are amortized on a straight-line basis over their estimated useful lives.

The estimated annual amortization expense related to finite-lived intangible assets as of December 30, 2016, is as follows:



Fiscal Year Ending
	(in millions)
2017	$	277
2018	213
2019	188
2020	165
2021	139
2022 and thereafter	603
	$	1,585

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 , adjustments to preliminary valuations of intangible assets and other factors.

Receivables

12 Months Ended

Dec. 30, 2016

Receivables [Abstract]

Receivables

The components of receivables, net consisted of the following:



	December 30, 2016			January 1, 2016
	(in millions)
Billed and billable receivables	$	847		$	715
Unbilled receivables	821			216
Allowance for doubtful accounts	(11		)	(10		)
	$	1,657		$	921

During the 11-month period ended January 1, 2016, the Company reached an agreement to settle a legal claim related to receivables from one construction project with deferred payment terms that had not been paid in accordance with the initial payment terms established with the customer. As a result of the settlement terms, the Company recorded "Bad debt expense" of $11 million in the Company's consolidated statements of income (loss). During the 11-month period ended January 1, 2016, the Company received a partial payment of $6 million, from the customer. As of January 1, 2016, the remaining receivables balance related to this construction project was immaterial.

- 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

Dec. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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



	December 30, 2016			January 1, 2016
	(in millions)
Computers and other equipment	$	172		$	161
Leasehold improvements	161			149
Buildings and improvements	104			57
Office furniture and fixtures	35			30
Land	57			15
Construction in progress	12			2
	541			414
Less accumulated depreciation and amortization	(282		)	(272		)
	$	259		$	142

Depreciation expense was $38 million, $33 million and $47 million for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, respectively. The acquired asset balances related to the Transactions may change upon final valuation, see "Note 2–Acquisitions".

During the 11-month period ended January 1, 2016, the Company amended its sale agreement entered into in 2013 and closed the sale of the remaining building, parcels of land that surround the building and the multi-level surface parking garage associated with the Company's former headquarters. The sale resulted in a write-off of $40 million in aggregate net book value of assets disposed, including $29 million for buildings and $10 million attributed to land. See "Note 17—Leases" for further information regarding the sale of the Company's former headquarters.

Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 30, 2016

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Composition of Certain Financial Statement Captions

Balance Sheet



	December 30, 2016		January 1, 2016
	(in millions)
Inventory, prepaid expenses and other current assets:
Inventory	$	67	$	70
Prepaid expenses	90		26
Prepaid income taxes and tax refunds receivable	13		56
Transition costs and project assets	62		26
Pre-contract costs	33		1
Restricted cash	20		17
Short-term notes receivable	3		4
Other	60		16
	$	348	$	216
Other assets:
Long-term notes receivables	$	89	$	91
Investment in rabbi trust	48		44
Deferred costs	31		18
Derivatives	29		8
Equity method investments⁽¹⁾	20		1
Other	48		33
	$	265	$	195
Accounts payable and accrued liabilities:
Accounts payable	$	591	$	306
Accrued liabilities	493		318
Collections in excess of revenues and deferred revenue	246		133
Provision for loss contracts	97		4
	$	1,427	$	761
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	211	$	142
Accrued vacation	244		121
Accrued contributions to employee benefit plans	28		5
	$	483	$	268
Other long-term liabilities:
Deferred compensation	$	48	$	41
Lease related obligations	37		35
Tax indemnity liability	31		—
Deferred revenue	20		18
Accrued pension liabilities	6		—
Liabilities for uncertain tax positions	5		5
Other	57		50
	$	204	$	149

⁽¹⁾Net of $10 million of dividends received during fiscal 2016 from these investments that were recorded in cash flows provided by operating activities of continuing operations on the consolidated statements of cash flows.

Fiscal 2016 balances include IS&GS as of the date of acquisition on August 16, 2016, and may change upon finalization of the valuation of the acquired assets (see "Note 2 Acquisitions").

Income Statement



	12 Months Ended			11 Months Ended		12 Months Ended
	December 30, 2016			January 1, 2016		January 30, 2015
	(in millions)
Other (expense) income, net
Loss on foreign currency	$	(18	)	$	—	$	(4	)
Gain on sale of former headquarters	—			82		—
Other income, net	5			2		9
	$	(13	)	$	84	$	5

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

The Company manages its risk to changes in interest rates through the use of derivative instruments. The Company does not hold derivative instruments for trading or speculative purposes. For fixed rate borrowings, the Company uses variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings. These swaps are designated as fair value hedges. For variable rate borrowings, the Company uses fixed interest rate swaps, effectively converting a portion of the variable rate borrowings to fixed rate borrowings. These swaps are designated as cash flow hedges.

Fair Value Hedges

In September 2014, the Company entered into interest rate swap agreements to hedge the fair value of the $450 million fixed rate 4.45% senior secured notes maturing in December 2020 (the "Notes"). The objective of these instruments is to hedge the Notes against changes in fair value due to the variability in the six-month LIBOR rate (the benchmark interest rate). Under the terms of the interest rate swap agreements, the Company will receive semi-annual interest payments at the coupon rate of 4.45% and will pay variable interest based on the six-month LIBOR rate.

The interest rate swaps were accounted for as a fair value hedge of the Notes and qualified for the shortcut method of hedge accounting, which allows for the assumption of no ineffectiveness reported in earnings. The resulting changes in the fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying debt (the hedged item). The fair value of the interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve (Level 2).

The fair value of the Notes is stated at an amount that reflects changes in the benchmark interest rate, the six-month LIBOR rate, subsequent to the inception of the interest rate swaps through the reporting date.

Cash Flow Hedges

In August 2016, the Company entered into interest rate swap agreements to hedge the cash flows with respect to $1.2 billion of the Company's variable rate senior secured term loans (the "Variable Rate Loans"). The objective of these instruments is to reduce variability in the forecasted interest payments of the Company's Variable Rate Loans, which is based on the LIBOR rate. Under the terms of the interest rate swap agreements, which mature in December 2021, the Company will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate of 1.08%. The counterparties to these agreements are financial institutions.

The interest rate swaps were accounted for as a cash flow hedge of the Variable Rate Loans and qualified for hedge accounting treatment through the application of the long-haul method, which involves the comparison of cumulative changes in the fair value of the swap to the cumulative change in fair value of scheduled interest payments on the notional value (the perfectly effective hypothetical or "PEH"). The effective portion of the gain/loss on the swap will be reported as a component of other comprehensive income/loss and will be reclassified into earnings on the dates the interest payments impact earnings. The amount of ineffectiveness, if any, recorded in earnings will be equal to the excess of the cumulative change in fair value of the swap over the cumulative change in the fair value of the PEH. The fair value of the interest rate swaps is determined based on observed values for the underlying interest rate (Level 2).

The fair value of the interest rate swaps was as follows:



	Balance sheet line item	December 30, 2016		January 1, 2016
		(in millions)
Fair value interest rate swaps	Other assets	$	3	$	8
Cash flow interest rate swaps	Other assets	26		—

The fair value adjustment to the fair value interest rate swap and the underlying debt was a decrease of $5 million and $9 million for the year ended December 30, 2016, and the 11-month period ended January 1, 2016, respectively.

The effect of the Company's cash flow hedge on other comprehensive income and earnings for the periods presented was as follows:



	12 Months Ended
	December 30, 2016
	(in millions)
Effective portion recognized in other comprehensive income	$	22
Effective portion reclassified from accumulated other comprehensive loss to earnings	2
Ineffective portion recognized in earnings	2

The Company expects to reclassify losses of $1 million from accumulated other comprehensive loss into earnings during the next 12 months.

The cash flows associated with both interest rate swaps are classified as operating activities in the consolidated statements of cash flows.

- 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

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+ Details

Debt

12 Months Ended

Dec. 30, 2016

Debt Disclosure [Abstract]

Debt

Notes Payable and Long-Term Debt

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



	Stated interest rate		Effective interest rate		December 30, 2016⁽¹⁾		January 1, 2016⁽¹⁾
	(dollars in millions)
Senior secured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	$	451	$	455
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Senior secured term loans:
$400 million Term Loan A, due August 2019	2.86	%	3.78	%	123		—
$690 million Term Loan A, due August 2021	2.86	%	3.42	%	676		—
$310 million Term Loan A, due August 2021	2.86	%	3.39	%	304		—
$1,131 million Term Loan B, due August 2023	3.36	%	3.70	%	1,110		—
Senior unsecured notes:
$250 million notes, due July 2032	7.13	%	7.43	%	246		246
$300 million notes, due July 2033	5.50	%	5.88	%	158		158
Capital leases due on various dates through fiscal 2020	0%-5.94%		Various		3		6
Total notes payable and long-term debt					3,287		1,081
Less: current portion					62		2
Total notes payable and long-term debt, net of current portion					$	3,225	$	1,079
Fair value of notes payable and long-term debt					$	3,336	$	1,060


⁽¹⁾	The carrying amounts of the notes payable and long-term debt as of December 30, 2016, and January 1, 2016, include the remaining principal outstanding of $3,339 million and $1,087 million, respectively, unamortized debt discounts of $46 million and $5 million, respectively, and deferred debt issuance costs of $9 million and $7 million, respectively.

Senior Secured Notes

As a result of executing the fair value interest swap agreements, the carrying values of the 4.45% senior secured notes at December 30, 2016, and January 1, 2016, included $3 million and $8 million, respectively, of the fair value of interest rate swaps (see "Note 10–Derivative Instruments and Hedging").

During the 11-month period ended January 1, 2016, and fiscal 2015, the Company repurchased in the open market and retired principal amounts of $14 million and $67 million, respectively, on its $300 million 5.95% notes, due December 2040. The Company recorded an immaterial gain and $3 million gain on extinguishment of debt, respectively, as part of the partial repayment of the notes. The gain represents the difference between the repurchase price amounts of $14 million and $64 million, respectively, and the net carrying amount of the notes. The net carrying amount was reduced by 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 gains on extinguishment of debt in "Other (expense) income, net" in the Company's consolidated statements of income (loss).

Senior Secured Term Loans

On August 16, 2016, in connection with the acquisition of the IS&GS Business, Leidos, Inc. secured a new term loan of $690 million from certain financial institutions. In addition, as a result of the acquisition, Leidos assumed the IS&GS Business' term loans of $1.8 billion, which were obtained by the IS&GS Business immediately prior to the Transactions (see "Note 2–Acquisitions"). The outstanding obligations under the term loans are secured by a first priority lien on substantially all of the assets of the Company, subject to certain exceptions set forth in the credit agreements and related documentation.

The interest rate on these new borrowings is determined based on the LIBOR rate plus a margin. The margin for these notes ranges from 1.75% to 2.25%, depending on the Company's senior secured leverage ratio, and is re-determined on a quarterly basis. At December 30, 2016, the current margin on Term Loan A was 2.25%. The stated margin on Term Loan B was 2.75%.

As part of the credit agreements, the Company is required to perform a calculation each quarter that determines the incremental available amount of funds the Company is permitted to use towards investments relating to mergers and acquisitions, investments in joint ventures, repayment of outstanding debt and restricted payments relating to dividends and share repurchases. The incremental available amount is calculated as $35 million plus a portion of certain cash proceeds, multiplied by a percentage tied to the Company's senior secured leverage, which is added to an annual fixed amount of $250 million, as defined in the credit agreements. The constraints associated with use of cash are reduced and/or eliminated based on the Company's total leverage ratio.

The Company is also required to perform an excess cash flow calculation annually that determines the additional amount of debt prepayments the Company is required to make during the first quarter of the following fiscal year, with the first payment occurring in 2018. The excess cash flow is calculated based on the Company's consolidated net income as of the end of the fiscal year plus or minus adjustments for certain non-cash items and incurred and expected cash payments, as defined in the credit agreements. The amount of the excess cash flow that the Company is required to use to prepay the loans is based upon the Company's senior secured leverage ratio. The required debt prepayment amount is equal to 50% of the excess cash flow calculated if the senior secured leverage ratio is greater than 2.75 and is equal to 25% of the excess cash flow calculated if the ratio is between 2.75 and 2.00. No additional debt prepayment is required if the senior secured leverage ratio is less than 2.00.

During fiscal 2016, the Company repaid $275 million of its senior secured $400 million Term Loan A, due August 2019. Associated with this early repayment, $5 million of unamortized debt discount and deferred financing costs were written off and recorded to "Other (expense) income, net" in the Company's consolidated statements of income (loss).

Senior Unsecured Notes

During the 11-month period ended January 1, 2016 and fiscal 2015, the Company repurchased in the open market and retired principal amounts of $23 million and $116 million, respectively, on its $300 million 5.50% notes, due July 2033. The Company recorded a $1 million and $2 million gain on extinguishment of debt, respectively, as part of the partial repayment of the notes. The gains represent the difference between the repurchase price amounts of $22 million and $111 million, respectively, and the net carrying amount of the notes. The net carrying amount was reduced by 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 gains on extinguishment of debt in "Other (expense) income, net" in the Company's consolidated statements of income (loss).

Principal is payable on the Company's variable rate senior secured term loans on a quarterly basis, with the majority of the principal due at maturity. Interest is payable on the Company's variable rate senior secured term loans on a periodic basis, which must be at least quarterly. Interest is payable on the Company's senior fixed rate secured notes and unsecured notes on a semi-annual basis with principal payments due at maturity.

In connection with the new senior secured term loans, the Company recognized $53 million of debt discount and debt issuance costs, which were recorded as an offset against the carrying value of debt and will be amortized to interest expense over the term of the term loans. Amortization for the senior secured term loans and notes and unsecured notes was $6 million and $1 million for fiscal 2016 and for the 11-month period ended January 1, 2016, respectively.

The senior secured term loans and notes, unsecured notes and revolving credit facility (see "Revolving Credit Facility" below) are fully and unconditionally guaranteed by intercompany guarantees. The senior secured term loans and notes and unsecured notes contain certain customary restrictive covenants, including among other things, restrictions on the Company's ability to create liens and enter into sale and leaseback transactions under certain circumstances. The Company was in compliance with all covenants as of December 30, 2016.

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



Fiscal Year Ending
	(in millions)
2017	$	62
2018	82
2019	190
2020	593
2021	711
2022 and thereafter	1,704
Total principal payments	3,342
Less: unamortized debt discount and issuance costs	55
	$	3,287

Revolving Credit Facility

On August 16, 2016, Leidos, Inc. entered into a revolving credit facility providing up to $750 million in secured borrowing capacity at interest rates determined based upon the LIBOR rate plus a margin that is subject to step-down provisions based on the Company's senior secured leverage ratio. The maturity date of this credit facility is August 2021. Leidos, Inc. recognized $15 million of origination costs related to the new credit facility, which were capitalized within "Other assets" in the consolidated balance sheets. During fiscal 2016, there were no borrowings under the new credit facility.

The new credit facility replaced the previous $500 million credit facility that was set to expire in March 2018. The remaining deferred costs associated with the former credit facility that were written-off during fiscal 2016 were immaterial. During the 11-month period ended January 1, 2016, there were no borrowings under the former credit facility.

The credit agreements contain certain customary representations and warranties, as well as certain affirmative and negative covenants. The financial covenants define the debt-to-EBITDA ratio that the Company needs to maintain at the end of each quarter. The Company maintains a ratio of total senior secured debt, including borrowings under this credit facility, to the trailing four quarters of EBITDA (adjusted for certain items as defined in the credit facility) of not more than 4.75 prior to February 16, 2018, 4.25 from February 16, 2018, to February 16, 2019, and 3.75 thereafter. The Company was in compliance with these financial covenants as of December 30, 2016.

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.

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:



	Foreign currency translation adjustments			Unrecognized net (loss) income on derivative instruments			Pension liability adjustments			Total accumulated other comprehensive loss
	(in millions)
Balance at January 31, 2014	$	2		$	(5	)	$	(3	)	$	(6	)
Other comprehensive loss	(1		)	—			(4		)	(5		)
Balance at January 30, 2015	1			(5		)	(7		)	(11		)
Other comprehensive (loss) income	(1		)	1			3			3
Balance at January 1, 2016	—			(4		)	(4		)	(8		)
Other comprehensive (loss) income	(7		)	16			3			12
Reclassification from accumulated other comprehensive loss	—			(2		)	(6		)	(8		)
Balance at December 30, 2016	$	(7	)	$	10		$	(7	)	$	(4	)

Reclassifications for unrecognized gain (loss) on derivative instruments associated with outstanding debt are recorded in "Interest expense" in the Company's consolidated statements of income (loss). Reclassifications for pension liability adjustments are recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income (loss).

- 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.

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+ Details

Earnings (Loss) Per Share (EPS)

12 Months Ended

Dec. 30, 2016

Earnings Per Share [Abstract]

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share ("EPS")

Basic EPS is computed by dividing income (loss) attributable to Leidos stockholders by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.

The Company issues unvested stock awards that have forfeitable rights to dividends or dividend equivalents. These stock awards are dilutive common share equivalents subject to the treasury stock method.

Basic and diluted EPS attributable to Leidos stockholders for the years presented was as follows:



	12 Months Ended		11 Months Ended						12 Months Ended
	December 30, 2016		January 1, 2016			January 2, 2015			January 30, 2015
						(unaudited)
Basic:
Income (loss) from continuing operations attributable to Leidos common stockholders	$	2.39	$	3.33		$	(4.36	)	$	(4.46	)
Discontinued operations, net of taxes	—		(0.01		)	(0.15		)	0.10
Net income (loss) attributable to Leidos common stockholders	$	2.39	$	3.32		$	(4.51	)	$	(4.36	)
Diluted:
Income (loss) from continuing operations attributable to Leidos common stockholders	$	2.35	$	3.28		$	(4.36	)	$	(4.46	)
Discontinued operations, net of taxes	—		(0.01		)	(0.15		)	0.10
Net income (loss) attributable to Leidos common stockholders	$	2.35	$	3.27		$	(4.51	)	$	(4.36	)

The weighted average number of shares used to compute basic and diluted EPS attributable to Leidos stockholders were:



	12 Months Ended	11 Months Ended		12 Months Ended
	December 30, 2016	January 1, 2016	January 2, 2015	January 30, 2015
			(unaudited)
	(in millions)
Basic weighted average number of shares outstanding	102	73	74	74
Dilutive common share equivalents—stock options and other stock awards	2	1	—	—
Diluted weighted average number of shares outstanding	104	74	74	74

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:



	11 Months Ended		12 Months Ended
	January 1, 2016	January 2, 2015	January 30, 2015
		(unaudited)
	(in millions)
Stock options excluded	1	4	4
Vesting stock awards excluded	—	3	3

In fiscal 2016, the anti-dilutive stock-based awards that were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS, including stock options and vesting stock awards, were immaterial. For the 11-month period ended January 2, 2015, and fiscal 2015, all outstanding common stock equivalents were excluded in the computation of diluted income (loss) per share because their effect would have been anti-dilutive due to the net loss for the periods.

Share repurchases

In the 11-month period ended January 1, 2016, the Company entered into an Accelerated Share Repurchase ("ASR") agreement with a financial institution to repurchase shares of its outstanding common stock for an aggregate purchase price of $100 million. During the second quarter of the 11-month period ended January 1, 2016, the Company paid $100 million to the financial institution and received a total delivery of 2.4 million shares of its outstanding shares of common stock. 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 was adjusted by the volume weighted average price of the Company's stock over the valuation period specified in the ASR.

In fiscal 2015, the Company entered into an ASR 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 $168 million. The final delivery consisted of approximately 0.8 million shares for a total value of $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 was 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 ASR agreement with a financial institution to repurchase shares of its outstanding common stock for an aggregate purchase price of $300 million. 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 was adjusted by the volume weighted average price of the Company's stock over the valuation period specified in the ASR.

The delivery of 2.4 million and 6.3 million shares of Leidos common stock related to ASR purchases for the 11-month period ended January 1, 2016 and fiscal 2015, respectively, reduced the Company's outstanding shares used to determine the weighted average shares outstanding for purposes of calculating basic and diluted EPS for those periods presented. There were no ASR agreements entered into during fiscal 2016.

Stock-Based Compensation

12 Months Ended

Dec. 30, 2016

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

Stock-Based Compensation

Plan Summaries

As of December 30, 2016, 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, as amended ("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 December 30, 2016, the Company has issued stock options, restricted stock awards including restricted stock units, performance-based awards and cash awards under this plan. 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 December 30, 2016, 5.8 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. These plans provide for restricted 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 shares 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. 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 fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, the discount was 5% of the fair market value on the date of purchase, thereby resulting in the ESPP being non-compensatory. There are 5 million shares reserved under the Company's Amended and Restated 2006 ESPP, which is subject to stockholder approval at the 2017 annual meeting of stockholders.

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



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Total stock-based compensation expense	$	35	$	30	$	42
Tax benefits recognized from stock-based compensation	$	14	$	12	$	16

Stock Options

Stock options are granted with exercise prices equal to the fair value of Leidos' common stock on the date of grant and for terms not greater than ten years. Beginning in fiscal 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 the earlier of one year from grant date or the next annual meeting of stockholders following grant date.

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.

During fiscal 2015, the expected term for all stock option awards granted was derived utilizing the "simplified" method due to the lack of historical experience post separation of New SAIC and expected volatility was estimated as of each grant date during fiscal 2015 based on a weighted average historical volatility of a group of publicly-traded peer companies for a period consistent with the expected option term due to lack of historical volatility after the spin-off of New SAIC in fiscal 2014. During the 11-month period ended January 1, 2016, the expected volatility was estimated using a blended volatility method for a period consistent with the expected term based more significantly on the weighted average historical volatility of a group of publicly-traded peer companies and the weighted average implied volatility from traded options on Leidos stock for a time period prior to the grant date.

During fiscal 2016, expected volatility was based on using a blended approach, which included weighted average historical volatility of a group of publicly-traded peer companies, weighted average historical volatility of the Company and the weighted average implied volatility. The Company will continue to use peer group volatility information, until sufficient historical volatility of the Company's common stock is relevant, to measure expected volatility for future option grants. The expected volatility increased from pre-acquisition to post-acquisition of the IS&GS Business in fiscal 2016 due to a higher allocation of peer group volatility used post-acquisition compared to a higher allocation of historical volatility used pre-acquisition. The post-acquisition volatility reflected an updated peer group mix.

The risk-free rate is derived using the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the stock option on the grant date. The dividend yield increased from pre-acquisition to post-acquisition due to historical stock price fluctuations. The Company uses historical data to estimate forfeitures and was derived in the same manner as in the prior years presented.

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended						11 Months Ended			12 Months Ended
	December 30, 2016 (Grants after acquisition)			December 30, 2016 (Grants before acquisition)			January 1, 2016			January 30, 2015
Weighted average grant-date fair value	$	10.33		$	9.54		$	6.72		$	6.15
Expected term (in years)	4.7			4.8			4.7			4.7
Expected volatility	37.9		%	29.9		%	24.5		%	25.1		%
Risk-free interest rate	1.2		%	1.3		%	1.4		%	1.6		%
Dividend yield	2.7		%	2.5		%	2.9		%	2.9		%

Special Dividend Adjustment

As a result of the payment of the special cash dividend to Leidos stockholders in August 2016, Leidos modified all outstanding stock options to preserve their original grant date fair value. The modifications resulted in a reduction in the strike prices of the outstanding stock options by a factor of 0.74 and an increase in the number of shares issuable upon the exercise of each option by a factor of 1.35 between the pre-modification stock price and post-modification stock price. These adjustments did not result in additional stock-based compensation expense, as the fair value of the outstanding options immediately following the payment of the special cash dividend was equal to the fair value immediately prior to such distribution. The modifications resulted in an increase in options outstanding by 0.9 million. The special dividend declared was $993 million. As a result of the special dividend declaration, the Company accrued $29 million of dividend equivalents with respect to outstanding equity awards. The transactions associated with the special cash dividend were recorded to "Additional paid-in capital" in the consolidated balance sheets.

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, 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
Options granted	0.6		42.64
Options forfeited or expired	(0.9	)	42.03
Options exercised	(0.9	)	38.53			9
Outstanding at January 1, 2016	2.4		$	38.21	4.5	$	43
Options granted	0.6		43.56
Special dividend adjustments	0.9
Options forfeited or expired	(0.2	)	34.98
Options exercised	(0.4	)	34.11			5
Outstanding at December 30, 2016	3.3		29.77		4.1	70
Exercisable at December 30, 2016	1.6		$	28.19	3.1	$	37
Vested and expected to vest in the future as of December 30, 2016	3.1		$	29.58	4.1	$	67

As of December 30, 2016, 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 2.4 years.

The following table summarizes activity related to exercises of stock options:



	12 Months Ended		11 Months Ended
	December 30, 2016		January 1, 2016
	(in millions)
Tax benefits from stock options exercised	$	1	$	1
Fair value of stock surrendered in payment of the exercise price for stock options exercised	$	4	$	3

The tax benefits from stock options exercised and fair value of stock surrendered in payment of the exercise price for stock options exercised during fiscal 2015 were immaterial. Cash received from exercises of stock options in fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were immaterial.

Restricted Stock Units and Awards

Compensation expense is measured at the grant date fair value and generally recognized over the vesting period of four years based upon required service conditions and in some cases revenue-based performance conditions.

In connection with the IS&GS Business acquisition (see "Note 2–Acquisitions"), the Company issued 0.6 million replacement RSUs valued at $23 million, of which $9 million was allocated as purchase consideration attributed to pre-acquisition service and the remaining $12 million represents the total remaining stock-based compensation expense, net of estimated forfeitures. This remaining expense will be recognized over three years.

Restricted stock units and 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 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
Awards granted	0.5		42.95
Awards forfeited	(0.4	)	40.10
Awards vested	(0.8	)	40.05
Unvested stock awards at January 1, 2016	2.3		$	38.97
Awards granted	1.5		41.45
Awards forfeited	(0.2	)	40.88
Awards vested	(1.1	)	38.91
Unvested stock awards at December 30, 2016	2.5		$	40.39

As of December 30, 2016, there was $37 million of unrecognized compensation cost, net of estimated forfeitures, related to restricted stock units, which is expected to be recognized over a weighted average period of 2.0 years. The fair value of vesting stock awards that vested in fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 was $43 million, $29 million and $34 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.

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. For awards granted during fiscal 2016 and the 11-month period ended January 1, 2016, the target number of shares of stock granted under the awards will vest and the stock will be issued at the end of a three-year period based on a three-year cycle performance period and the actual number of shares to be issued will be based upon the achievement of the three-year cycle’s performance criteria. Also, during fiscal 2016 and the 11-month period ended January 1, 2016, the Company granted performance-based awards with market conditions. These market conditions grants represent the target number of shares and the actual number of shares to be awarded upon vesting may be higher or lower depending upon the achievement of the relevant market conditions. The target number of shares granted under the market conditions grants will vest and the stock will be issued at the end of a three-year period based on the attainment of certain total shareholder return performance measures and the employee's continued service through the vest date.

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, 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
Awards granted	0.2			44.30
Awards forfeited	(0.1	)		43.49
Unvested at January 1, 2016	0.2			$	43.35
Awards granted	0.2			45.62
Unvested at December 30, 2016	0.4			$	44.44

*Adjusted for Conversion Ratio of 1.4523 in connection with the spin-off of New SAIC in September 2013

The weighted average grant date fair value for performance-based stock, excluding those with a market condition, during fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 was $45.83, $43.78 and $36.88, respectively. The weighted average grant date fair value for performance-based stock with market conditions that were granted during fiscal 2016 and the 11-month period ended January 1, 2016, was $45.80 and $45.00, respectively, and was calculated using the Monte Carlo simulation. The Monte Carlo simulation in fiscal 2016 used various assumptions including expected volatility of 31.73%, a risk free rate of return of 1.01% and a weighted average grant date stock price of $46.54. For the 11-month period ended January 1, 2016, the Monte Carlo simulation used various assumptions including expected volatility of 27.67%, a risk free rate of return of 0.82% and a weighted average grant date stock price of $42.61.

As of December 30, 2016, there was $7 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 1.6 years. There were no performance-based stock awards that vested in fiscal 2016 and the 11-month period ended January 1, 2016. The fair value of performance-based stock awards that vested in fiscal 2015 was $2 million.

The following table summarizes activity related to exercises of stock options:



	12 Months Ended		11 Months Ended
	December 30, 2016		January 1, 2016
	(in millions)
Tax benefits from stock options exercised	$	1	$	1
Fair value of stock surrendered in payment of the exercise price for stock options exercised	$	4	$	3

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

Dec. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

The majority of the Company’s income from continuing operations before income taxes for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 was earned in the United States. The provision for income taxes related to continuing operations for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 included the following:



	12 Months Ended			11 Months Ended		12 Months Ended
	December 30, 2016			January 1, 2016		January 30, 2015
	(in millions)
Current:
Federal and foreign	$	88		$	71	$	16
State	16			14		(6		)
Deferred:
Federal and foreign	(29		)	20		26
State	(3		)	7		11
Total	$	72		$	112	$	47

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 fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 follows:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Amount computed at the statutory federal income tax rate (35%)	$	111		$	124		$	(99	)
State income taxes, net of federal tax benefit	8			14			3
Taxable conversion of subsidiary	—			—			(116		)
Change in valuation allowance for deferred tax assets	(8		)	(21		)	105
Change in accruals for uncertain tax positions	1			(4		)	2
Research and development credits	(4		)	(4		)	(4		)
Dividends paid to employee stock ownership plan	(38		)	(3		)	(4		)
Capitalized transaction costs	7			—			—
Excess tax benefits from stock-based compensation	(8		)	—			—
Non-deductible goodwill	—			—			156
Other	3			6			4
Total	$	72		$	112		$	47
Effective income tax rate	22.6		%	31.5		%	(16.6		)%

The Company's effective tax rate for fiscal 2016 was favorably impacted by the tax deductibility of the special cash dividend, related to the Transactions described in “Note 2 - Acquisitions”, on shares held by the Leidos retirement plan, the income tax benefits of the research tax credit and the excess tax benefits related to employee stock-based payment transactions, partially offset by the impact of certain capitalized transactions costs related to the Transactions.

The Company's effective tax rate for the 11-month period ended January 1, 2016, was favorably impacted by the release of the valuation allowance related to the utilization of a capital loss carryforward for capital gains recognized during the current year and the favorable resolution of certain tax contingencies with the tax authorities. In addition, the Company's effective tax rate was favorably impacted by the research tax credit as well as the tax deduction for dividends on shares held by the Leidos Retirement Plan (an employee stock ownership plan).

The Company's effective tax rate in fiscal 2015 was negatively impacted by the goodwill impairment charge of $486 million, recorded in the quarter ended August 1, 2014, which was mostly not deductible. The effective tax rate was also impacted favorably by the tax benefit of a capital loss resulting from the conversion of one of our domestic subsidiaries to a Limited Liability Company ("LLC").

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.

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



	December 30, 2016			January 1, 2016
	(in millions)
Accrued vacation and bonuses	$	89		$	45
Investments	3			3
Deferred compensation	38			39
Vesting stock awards	23			21
Credits and net operating losses carryovers	35			15
Employee benefit contributions	3			—
Capital loss carryover	81			91
Reserves	103			31
Deferred rent and tenant allowances	16			14
Other	17			13
Total deferred tax assets	408			272
Valuation allowance	(102		)	(102		)
Deferred tax assets, net of valuation allowance	306			170

Deferred revenue	(42		)	(36		)
Fixed asset basis differences	(11		)	(1		)
Purchased intangible assets	(748		)	(138		)
Partnership interest	(14		)	(11		)
Employee benefit contributions	—			(1		)
Other	(15		)	(9		)
Total deferred tax liabilities	(830		)	(196		)
Net deferred tax liabilities	$	(524	)	$	(26	)

Net deferred tax (liabilities) assets were as follows:



	December 30, 2016			January 1, 2016
	(in millions)
Net non-current deferred tax assets	$	16		$	8
Net non-current deferred tax liabilities	(540		)	(34		)
Total net deferred tax liabilities	$	(524	)	$	(26	)

Fiscal 2016 balances include IS&GS as of the date of acquisition on August 16, 2016, and may change upon finalization of the valuation of the acquired assets (see "Note 2 - Acquisitions").

At December 30, 2016, the Company had $26 million of federal net operating loss ("NOL") carryforwards and $184 million of state net operating losses, which will begin to expire in calendar year 2018. The Company also has $12 million of state tax credits, which will begin to expire in calendar year 2018. The Company expects to utilize $6 million and $69 million of these state tax credits and state net operating losses, respectively. The company also had foreign net operating losses of $38 million. The majority of the NOLs were acquired in the Transactions.

As of December 30, 2016, the Company had a capital loss carryforward of $206 million, $68 million of which will expire in 2018. 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 as of December 30, 2016.

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:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Unrecognized tax benefits at beginning of year	$	11		$	17		$	14
Additions for tax positions related to current year	1			5			2
Additions for tax positions related to prior years	4			4			11
Reductions for tax positions related to prior years	(7		)	(15		)	(5		)
Settlements with taxing authorities	—			—			(1		)
Lapse of statute of limitations	—			—			(4		)
Unrecognized tax benefits at end of year	$	9		$	11		$	17
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	4		$	7		$	5

In fiscal 2016, The Company's unrecognized tax benefits decreased primarily due to the resolution of the uncertain characterization of certain gains and state claims with the tax authorities, partially offset by an increase due to additional state and foreign items.

In the 11-month period ended January 1, 2016, the Company's unrecognized tax benefits decreased primarily due to the resolution of the uncertain portion of the deferral of certain revenues, the resolution of the research and development tax credit and certain state claims with the tax authorities, which were offset by an increase due to the uncertain characterization of certain gains. 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.

At December 30, 2016, January 1, 2016, and January 30, 2015, accrued interest and penalties totaled $1 million, $1 million and $2 million, respectively. A negligible amount of interest and penalties were recognized in the Company's consolidated statements of income (loss) in fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015.

At December 30, 2016, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $10 million, $5 million of which were classified as other long-term liabilities on the Company's consolidated balance sheets. At January 1, 2016, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $12 million, $5 million of which were classified as other long-term liabilities on the Company's consolidated balance sheets. 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 Company's consolidated balance sheets.

The Company files income tax returns in the United States and various state and foreign jurisdictions. The Company participates in the Internal Revenue Service (“IRS”) Compliance Assurance Process, a real-time audit of the Company’s consolidated federal corporate income tax return. The IRS has examined the Company’s consolidated federal income tax returns through the 11-month period ended January 1, 2016. With a few exceptions, as of December 30, 2016, the Company is no longer subject to state, local, or foreign examinations by the tax authorities for years before fiscal 2014.

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 $4 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.

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Retirement Plans	Retirement Plans Defined Contribution Plans The Company sponsors several defined contribution plans, including the Leidos, Inc. Retirement Plan which is both a 401(k) plan and an employee stock ownership plan, in which most employees are eligible to participate, and the Leidos, Inc. Retirement Plan for Former IS&GS Employees. 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 were $68 million, $56 million and $62 million for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, respectively. 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 members of the Board of Directors. The deferred compensation plans allow eligible participants to elect to defer all or a portion of certain bonuses, including equity awards. 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 investments. The Company maintains a rabbi trust for the purpose of funding benefit payments to the KDP participants. Participants may allocate deferred cash bonus amounts into a variety of designated investment options, with gains and losses based on the elected investment option performance. Under the KESDP, eligible participants may also elect to defer in share units all or a portion of certain cash bonuses and stock awards granted under the 2006 Equity Incentive Plan (see "Note 14 Stock-Based Compensation"). The Company makes no contributions to the accounts of KESDP participants. Benefits from the KESDP are payable in shares of Leidos common stock held in a rabbi trust for the purpose of funding benefit payments to KESDP participants. Deferred balances in the KDP and KESDP plans are paid upon retirement, termination, or the elected in-service date. The Company sponsors 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 IRS 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. This plan was frozen effective December 31, 2016. 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 under the plan are frozen, 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. 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. The projected benefit obligation as of December 30, 2016, and January 1, 2016, was $115 million and $106 million, respectively. The increase in the projected benefit obligation was primarily due to a lower discount rate, partially offset by the impact of a stronger U.S. dollar. The fair value of plan assets as of December 30, 2016, and January 1, 2016, was $109 million and $108 million, respectively. The plan funding status was underfunded $6 million and overfunded $2 million as of December 30, 2016, and January 1, 2016, respectively. 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. In fiscal 2015, 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

Dec. 30, 2016

Leases [Abstract]

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 fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Gross rental expense	$	107		$	83		$	107
Less: sublease income	(2		)	(8		)	(9		)
Net rental expense	$	105		$	75		$	98

Future minimum lease commitments and sublease receipts, under non-cancelable operating leases in effect at December 30, 2016, are as follows:



Fiscal Year Ending	Operating lease commitment		Sublease receipts
	(in millions)
2017	$	142	$	4
2018	106		2
2019	83		1
2020	58		1
2021	41		1
2022 and thereafter	92		—
Total	$	522	$	9

As of December 30, 2016, the Company had capital lease obligations of $3 million that are payable over the next three years (see "Note 11—Debt").

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 agreement contemplated that sales would be completed in a series of transactions over a period of several years.

On August 31, 2015, the Company entered into an amendment to the original purchase and sale agreement and subsequently, in December 2015, closed the sale of the remaining building, parcels of land that surround the building and the multi-level surface parking garage for a net purchase consideration of $95 million. The closing consideration consisted of a cash payment of $75 million and a promissory note (the "Note") of $20 million, net of discount of $5 million. The proceeds of $95 million resulted in a gain of $82 million due to 1) the write-off of the financing note payable of $35 million and other long-term liabilities of $5 million from the 2013 Sale; 2) offset by the write-off of $40 million in aggregate net book value of property disposed, which includes amounts related to the disposal of the third office building sold during the 2013 Sale; and 3) payments for a lease termination fee of $8 million to terminate the financing leaseback agreement and transaction and selling costs of $5 million. The gain was recorded in "Other (expense) income, net" in the Company's consolidated statements of income (loss).

The Note matures on December 17, 2019 ("Maturity Date"), and accrues interest at 30-day LIBOR subject to a floor of 0.25% per annum, plus 0.50% over a four-year period. Interest will accrue daily and is not compounded to the outstanding principal balance. The total accumulated interest and principal will be paid in a lump sum on the Maturity Date. If prepayments are made towards the outstanding principal and interest balance prior to the maturity date, the Company will credit 60% of the accrued interest against the outstanding balance; additionally, if all of the outstanding principal and interest balance is prepaid on or before December 17, 2018, the Company will credit 80% of the accrued interest due under the Note.

- 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 Cash Flow Information

12 Months Ended

Dec. 30, 2016

Supplemental Cash Flow Information [Abstract]

Supplementary Cash Flow Information

Supplementary cash flow information, including non-cash investing and financing activities, for fiscal 2016, the 11-month periods ended January 1, 2016, and January 2, 2015, and fiscal 2015 was as follows:



	12 Months Ended		11 Months Ended				12 Months Ended
	December 30, 2016		January 1, 2016		January 2, 2015		January 30, 2015
					(unaudited)
	(in millions)
Dividends declared and other	$	21	$	2	$	25	$	—
Capital lease obligations	$	—	$	6	$	—	$	—
Promissory note, net received for disposition of business	$	—	$	72	$	—	$	—
Promissory note, net received from a real estate sale	$	—	$	20	$	—	$	—
Stock issued for acquisition of the IS&GS Business	$	2,938	$	—	$	—	$	—
Cash paid for interest	$	90	$	50	$	74	$	74
Cash paid for income taxes, net of refunds (including discontinued operations)	$	47	$	31	$	22	$	55

Business Segments

12 Months Ended

Dec. 30, 2016

Segment Reporting [Abstract]

Business Segments

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 ("NSS"), Information Systems & Global Solutions ("IS&GS"), Health and Infrastructure ("HIS") and Corporate and Other.

During fiscal 2016, the Company completed its acquisition of Lockheed Martin's IS&GS Business (see "Note 2–Acquisitions"). The acquired IS&GS Business was identified as a new operating and reportable segment.

In fiscal 2016, the Company sold its design, build and heavy construction engineering business (see "Note 3–Divestitures"). Consequently, the reportable segment of Health and Engineering was renamed as Health and Infrastructure.

National Security Solutions is focused on rapidly deploying agile, cost-effective solutions to meet the ever-changing missions of the Company's customers in areas of intelligence surveillance and reconnaissance, integrated systems and cybersecurity and global services. National Security Solutions provides a diverse portfolio of national security solutions and systems for air, land, sea, space and cyberspace for the U.S. Intelligence Community, the DoD, military services, DHS, government agencies of U.S. allies abroad and other federal, civilian, and commercial customers in the national security industry. The Company's solutions deliver innovative technology, large-scale intelligence systems, command and control, data analytics, logistics and cybersecurity solutions, as well as intelligence analysis and operations support to critical missions around the world.

Information Systems & Global Solutions business focuses on being a leading provider of information technology ("IT"), management and engineering services to civil, defense and intelligence agencies of the U.S. Government. The Company's major customers within the U.S. Government include the DHS, the Department of the Treasury, DoD and the branches of the U.S. military. Various international customers are primarily located in the United Kingdom, the Middle East and Australia.

Health and Infrastructure businesses capitalize on the Company's knowledge and experience in technology and innovation. Major customers of Health and Infrastructure primarily include the U.S. federal government, state and local governmental agencies, foreign governments, healthcare providers and commercial enterprises in various industries. The Health business provides services and solutions to commercial hospitals, the DOD and other U.S. Government agencies focused on information technology and behavioral health and life sciences offerings. The healthcare business is focused on the overall availability and quality of electronic health data, clinical care optimization, and life sciences research and development that ultimately improves the quality of care while lowering cost for the Company's customers. The Infrastructure business is focused on seamlessly integrating and protecting physical, digital and data domains. By applying leading science and the right technologies and business acumen, the Company's forward thinkers are helping customers maximize their performance and take on the connected world with data-driven insights, improved efficiencies and technology advantages.

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.

The following tables summarize business segment information for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Revenues:
National Security Solutions	$	3,610		$	3,210		$	3,594
Information Systems & Global Solutions	1,971			—			—
Health and Infrastructure	1,463			1,496			1,485
Corporate and Other	(1		)	6			(16		)
Total revenues	$	7,043		$	4,712		$	5,063
Operating income (loss):
National Security Solutions	292			263			286
Operating income margin	8.1		%	8.2		%	8.0		%
Information Systems & Global Solutions	114			—			—
Operating income margin	5.8		%	—		%	—		%
Health and Infrastructure	162			76			(472		)
Operating income (loss) margin	11.1		%	5.1		%	(31.8		)%
Corporate and Other	(151		)	(19		)	(28		)
Total operating income (loss)	$	417		$	320		$	(214	)
Operating income (loss) margin	5.9		%	6.8		%	(4.2		)%
Amortization of intangible assets:
Information Systems & Global Solutions	79			—			—
Health and Infrastructure	5			8			15
Total amortization of intangible assets	$	84		$	8		$	15

Asset information by segment is not a key measure of performance used by the CODM. Other income (expense), 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.

The majority 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 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 years for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
U.S. Government	81	%	76	%	79	%
U.S. DoD	56	%	64	%	67	%
U.S. Army	14	%	14	%	16	%
Maryland Procurement Office	7	%	10	%	10	%

- 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	Dec. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings MSA Joint Venture On November 10, 2015, MSA received a final decision of the Department of Energy ("DoE") contracting officer for the Mission Support Contract concluding that certain payments to MSA by DoE for the performance of IT services by Lockheed Martin Services, Inc. (“LMSI”) under a subcontract to MSA constituted alleged affiliate fees in violation of the Federal Acquisition Regulation (the "FAR"). Lockheed Martin Integrated Technology LLC (now known as Leidos Integrated Technology LLC) is a member entity of MSA. At the same time, the contracting officer advised MSA that he would not approve certain provisional fee payments to MSA pending resolution of the matters set forth in his decision. Subsequent to the contracting officer's final decision, MSA, LMSI, and Lockheed Martin Corporation received notice from the U.S. Attorney's Office for the Eastern District of Washington that the U.S. Government had initiated a False Claims Act investigation into the facts surrounding this dispute, and each of MSA, LMSI and Lockheed Martin Corporation have produced information in response to Civil Investigative Demands from the U.S. Attorney's Office. In addition, the U.S. Attorney’s office has advised that a parallel criminal investigation is open, although no subjects or targets of the investigation have been identified. Since this issue first was raised by the DoE, MSA has asserted that the IT services performed by LMSI under a fixed price/fixed unit rate subcontract approved by the DoE meet the definition of a "commercial item" under the FAR and any profits earned on that subcontract are permissible. MSA filed an appeal of the contracting officer's decision with the Civilian Board of Contract Appeals and that appeal is pending, but has been stayed pending resolution of the False Claims Act investigation. Subsequent to the filing of MSA's appeal, the contracting officer demanded that MSA reimburse the DoE in the amount of $64 million, which was his estimate of the profits earned during the period from 2010 to 2014 by LMSI. The DoE has deferred that demand, pending resolution of the appeal, but to date the demand has not been rescinded. MSA and the other members of MSA have indicated they believe if MSA incurs a liability in this matter, then Leidos Integrated Technology, LLC is responsible to MSA for the loss. Under the terms of the Separation Agreement, Lockheed Martin has agreed to indemnify the Company for 100% of any damages in excess of $38 million up to $64 million, and 50% of any damages in excess of $64 million, with respect to claims asserted against MSA related to this matter. At December 30, 2016, the Company recorded a liability of $39 million and an indemnification asset of $1 million in the consolidated balance sheets. Data Privacy Litigation The Company was previously a defendant in a putative class action, In Re: Science Applications International Corporation ("SAIC") Backup Tape Data Theft Litigation, which was a Multidistrict Litigation ("MDL") action in the U.S. District Court for the District of Columbia relating to the theft of computer 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. On August 28, 2015, the Court dismissed all claims brought by the Plaintiff against the Company. Plaintiff filed a notice of appeal of this dismissal on November 17, 2015, to the United States Court of Appeals for the Ninth Circuit, and oral arguments are scheduled for April 17, 2017. 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 names as defendants the Company, a former chief financial officer, two former chief executive officers, a former group president, and the former program manager on the Company's contract to develop and implement an automated time and attendance and workforce management system for certain agencies of the City of New York ("CityTime") and was filed purportedly on behalf of all purchasers of the Company's common stock from April 11, 2007, through September 1, 2011. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company's revenues, operating income, and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying the Leidos' stock at an inflated price. On October 1, 2013, the District Court dismissed many claims in the complaint with prejudice and on January 30, 2014, the District Court entered an order dismissing all remaining claims with prejudice and without leave to replead. The plaintiffs moved to vacate the District Court's judgment or obtain relief from the judgment and for leave to file an amended complaint. On September 30, 2014, the District Court denied plaintiff's motions. The plaintiffs then appealed to the United States Court of Appeals for the Second Circuit. On March 29, 2016, the Second Circuit issued an opinion affirming in part, and vacating in part, the District Court's ruling. In particular, the Second Circuit held that the plaintiffs should be permitted to pursue omissions claims against the Company with respect to the annual report the Company filed on Form 10-K on March 25, 2011; the Second Circuit affirmed dismissal of all other claims, including all the claims against the individual defendants. The Company petitioned the Second Circuit on April 12, 2016, to rehear the appeal, which was denied on August 2, 2016. The Company has filed a petition to appeal to the U.S. Supreme Court. Meanwhile, the case remains before the District Court for further proceedings on plaintiffs' claim. On September 23, 2016, the District Court issued an order clarifying that the applicable class period relating to the March 2011 Form 10-K ends on June 2, 2011, not September 1, 2011 as plaintiffs argued. The plaintiffs filed a motion on October 7, 2016 for reconsideration of the Court’s order, which the Court denied. 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 $14 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 $41 million. The Customer has yet to satisfy the arbitral award. The Company is pursuing an enforcement action in U.S. District Court for the District of Columbia. In September 2013, the Customer filed a petition in a Greek court seeking to nullify the arbitral award and to stay enforcement of the award in Greece. A hearing on the Customer's nullification request was held in Greece in April 2014. The parties agreed to a stay of the Company's enforcement action in U.S. District Court until the Greek court issued a ruling on the Customer's nullification request. In June 2014, the Athens Court of Appeals annulled the arbitral award. The Company appealed the annulment decision to the Supreme Court of Greece in January 2015 to have the arbitral award reinstated. On September 22, 2016, the Supreme Court of Greece issued a written decision upholding the Company’s appeal and remanding the case back to the appeals court for further proceedings consistent with the Supreme Court’s decision. The court of appeals court date is scheduled for November 16, 2017. Meanwhile, the Company continues to pursue enforcement of the award in the U.S. District Court as is still its right under U.S. and international law. On January 5, 2017, the U.S. District Court entered an order granting the Company's petition to enforce the arbitration award and entering judgment in the Company's favor. 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 2016, the 11-month period ended January 1, 2016, and fiscal 2015. Prior to fiscal 2015, the Company recorded $123 million of losses under the Greek contract, reflecting the Company’s estimated total cost to complete the System, assuming the Greek contract value was limited to the cash received to date. Based on the complex nature of this contractual situation and the difficulties encountered to date, significant uncertainties exist and the Company is unable to reliably estimate the ultimate outcome. The Company may reverse a portion of the losses from the Greek contract if it receives payments as provided in the arbitral award. As of December 30, 2016, the Company's net balance sheet exposure for the Greek contract was $1 million. The Company has $26 million for value added tax ("VAT") included in the arbitration claim of which this amount was substantially awarded in the arbitral award. The Company has paid a certain amount of VAT and believes it is entitled to recover either as a payment from the arbitral award or as a refund from the taxing authorities. This amount paid is recorded as a receivable as of December 30, 2016, and is part of the net balance sheet exposure. If the Customer fails to pay the outstanding VAT amounts through the arbitral award or the Company is unable to recover these amounts as a refund from the taxing authorities, the Company’s total losses on the Greek contract could increase. The Company has met certain advance payment and performance bonding requirements through the issuance of euro-denominated standby letters of credit. As of December 30, 2016, there were $4 million in standby letters of credit outstanding relating to the support and maintenance of the System. In the arbitration, the Company was awarded but has not received $20 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 $17 million as of December 30, 2016, of which $15 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	Dec. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Other Commitments and Contingencies	Other Commitments and Contingencies VirnetX, Inc. In fiscal 2007, the Company transferred several patents to VirnetX Inc., a subsidiary of VirnetX Holding Corp. In consideration of this transfer, the Company received certain license rights and the right to receive a percentage of the consideration received in patent infringement or enforcement claims against third parties. In November 2012, a jury found that Apple Corporation infringed two of the patents that the Company previously transferred to VirnetX and awarded $368 million to VirnetX, but the United States Court of Appeals for the Federal Circuit vacated this award. Although VirnetX petitioned the appeals court for an en banc review, this request was denied and the case has been remanded to the Federal District Court for further proceedings, including a new jury trial which began on January 25, 2016. On December 17, 2014, VirnetX settled a separate patent infringement dispute with Microsoft Corporation, with those parties executing an Amended Settlement and License Agreement. This agreement amended and restated certain terms of the original Settlement and License Agreement, dated May 14, 2010, between VirnetX and Microsoft. Under the terms of the amended agreement, Microsoft agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license. Under its agreements with VirnetX, the Company received proceeds of $10 million in the 11-month period ended January 1, 2016, from VirnetX's settlement with Microsoft and VirnetX's settlement of a previous litigation matter against various defendants, including Mitel, Siemens and Avaya. Pursuant to the agreements with VirnetX, the amount received by the Company includes reimbursement for attorney's fees and costs incurred by the Company in connection with these litigation matters. In addition, the Company is required to pay a royalty on the proceeds received to the customer who paid for the development of the technology. On February 3, 2016, the jury in the United States Court for the Eastern District of Texas, Tyler Division, awarded VirnetX $626 million in a verdict against Apple for willful infringement of four VirnetX patents. However, on July 29, 2016, the court issued a new order in the pending litigation against Apple, Case No. 6:10-cs-417 ("Apple I") and Case No. 6:12-cv-855 ("Apple II"), vacating its previous order consolidating the two cases and ordering the parties to retry them as separate cases. On September 30, 2016, a jury in the United States Court for the Eastern District of Texas, Tyler Division, in the Apple I case, awarded VirnetX $302 million in a verdict against Apple for infringing four VirnetX patents. A jury trial in the Apple II case is expected to be scheduled by the court shortly after the conclusion of the Apple I case. Under its agreements with VirnetX, Leidos would receive 25% of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, it is expected that Apple will appeal the verdict and no assurances can be given when or if the Company will receive any proceeds in connection with this jury award. In addition, if the Company receives any proceeds, the Company is required to pay a royalty to the customer who paid for the development of the technology. The Company does not have any material assets or liabilities recorded in connection with this matter as of December 30, 2016. Government Investigations and Reviews The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to its role as a contractor to federal, state, and local government customers and in connection with performing services in countries outside of the United States. Adverse findings could have a material adverse effect on the Company's business, financial position, results of operations, and cash flows due to its reliance on government contracts. As of December 30, 2016, the Company believes it has adequately reserved for potential adjustments from audits or reviews of contract costs. Leidos, Inc.'s indirect cost audits by the DCAA remain open for fiscal 2012 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to and including fiscal 2012 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Leidos Innovations Corporation's indirect cost audits by the DCAA remain open for fiscal 2009 and subsequent fiscal years. Based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. Letters of Credit, Surety Bonds and Third-Party Guarantees The Company has outstanding letters of credit of $71 million as of December 30, 2016, principally related to guarantees on contracts. The Company also has outstanding surety bonds in the amount of $131 million, principally related to performance and subcontractor payment bonds on the Company’s contracts. The outstanding letters of credit and surety bonds have various terms with the majority of the letters of credit and bonds expiring over the next four fiscal years. Additionally, the Company has outstanding performance guarantees and cross-indemnity agreements in connection with certain aspects of its business. As of December 30, 2016, the Company is not aware of any existing event of default that would require it to satisfy any of these guarantees. Other The Company maintains self-insured medical and workers compensation insurance plans. The Company provided estimated accruals for claims incurred but not yet reported for both these plans totaling $27 million and $16 million as of December 30, 2016, and January 1, 2016, respectively.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected financial data (unaudited) for each quarter of fiscal 2016 (January 2, 2016, through December 30, 2016) and calendar 2015 (January 3, 2015, through January 1, 2016), respectively, is presented in the table below:



	Three Months Ended
	April 1, 2016		July 1, 2016		September 30, 2016		December 30, 2016
	(in millions, except per share amounts)
Fiscal 2016 ⁽¹⁾
Revenues	$	1,312	$	1,288	$	1,868	$	2,575
Operating income	$	89	$	75	$	101	$	152
Income from continuing operations⁽²⁾	$	53	$	41	$	92	$	60
Net income⁽²⁾	$	53	$	41	$	92	$	60
Net income attributable to Leidos common stockholders	$	53	$	41	$	91	$	59
Basic earnings per share attributable to Leidoscommon stockholders ⁽³⁾	$	0.74	$	0.56	$	0.81	$	0.39
Diluted earnings per share attributable to Leidos common stockholders ⁽³⁾	$	0.72	$	0.55	$	0.80	$	0.39
	Three Months Ended
	April 3, 2015		July 3, 2015		October 2, 2015		January 1, 2016
	(in millions, except per share amounts)
Calendar 2015 ⁽⁴⁾⁽⁵⁾
Revenues	$	1,246	$	1,257	$	1,302	$	1,281
Operating income	$	38	$	64	$	94	$	102
Income from continuing operations	$	23	$	37	$	49	$	127
Income from discontinued operations	$	18	$	—	$	—	$	—
Net income	$	41	$	37	$	49	$	127
Basic earnings per share⁽³⁾	$	0.32	$	0.51	$	0.68	$	1.76
Diluted earnings per share⁽³⁾	$	0.31	$	0.50	$	0.67	$	1.72

⁽¹⁾

Includes the results of the IS&GS Business acquired on August 16, 2016. Additionally, the fiscal 2016 quarterly results include acquisition and integration costs of $9 million, $15 million, $44 million, and $22 million in the first, second, third, and fourth quarter, respectively, and restructuring expenses of $1 million, $5 million, and $8 million in the second, third, and fourth quarter, respectively.


⁽²⁾	Due to the adoption of ASU 2016-09 in the second quarter of fiscal 2016, the Company recognized a $4 million, $3 million and $1 million discrete tax benefit for the first, second and third quarter, respectively, of fiscal 2016.


⁽³⁾	Earnings per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for fiscal 2016 and calendar 2015.

⁽⁴⁾

On March 20, 2015, the Board of Directors approved the amendment and restatement of the bylaws of Leidos to change Leidos' year end from the Friday nearest the end of January to the Friday nearest the end of December. In the first quarter of calendar 2015, the Company began reporting financial results on the basis of the new fiscal year end. The results for the month of January 2015, which are included in the audited results for fiscal 2015, were also included in the reported first quarter of calendar 2015. However, the results for the month of January 2015 are not included in the results for the 11-month period ended January 1, 2016. As a result, the four quarters of calendar 2015 are not additive to the 11-month period ended January 1, 2016.

⁽⁵⁾

Calendar 2015 quarterly results include tangible asset impairment charges of $40 million and $29 million in the first and second quarter, respectively, intangible asset impairment charges of $4 million in the third quarter and an $82 million gain on a real estate sale in the fourth quarter. The first quarter impairment charge occurred during January 2015 and is included in both the first quarter of calendar 2015 and the Company's fiscal 2015 results.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In February 2017, Leidos repriced the Company's senior secured $1.1 billion Term Loan B, due August 2023. As a result, the stated margin on Term Loan B was reduced by 50 basis points to 2.25% and the six month call provision was extended an additional six months. The repricing of the term loan became effective on February 16, 2017.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 30, 2016

Accounting Policies [Abstract]

Project Assets Policy [Policy Text Block]

Project Assets

Fiscal Period, Policy [Policy Text Block]

Reporting Periods

As a result of this change, the Company filed a Transition Report on Form 10-K for the 11-month period which began on January 31, 2015, and ended on January 1, 2016.

This Annual Report on Form 10-K for fiscal 2016 covers a 12-month period that began on January 2, 2016, and ended on December 30, 2016.

Goodwill

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

Use of Estimates

Restructuring

Restructuring Expenses

Operating Cycle

Business Combinations

Investments

Variable Interest Entities

Revenue Recognition

Changes In Estimates On Contracts

Changes in Estimates on Contracts

Dispositions

Divestitures

Pre-contract Costs

Pre-contract and Transition Costs

Pre-contract Costs

Transition Costs Policy [Policy Text Block]

Transition Costs

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

Fair Value Measurement

Financial Instruments

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

Cash and Cash Equivalents

Restricted Cash

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

Concentration of Credit Risk

Receivables

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	Not to exceed 40
Building improvements and leasehold improvements	Straight-line	Shorter of useful life of asset or remaining lease term
Office furniture	Straight-line or declining-balance	6-9

Intangible Assets



		Estimated useful lives (in years)
Customer relationships		8-10
Software and technology		9-15
Programs and contract intangibles		10
Backlog		1

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

Foreign Currency

Accounting Standards Updates Adopted

During fiscal 2016, the Company adopted the following Accounting Standard Updates (ASUs):

The Company adopted various other accounting standard updates, none of which had a material effect on the Company’s consolidated financial position, results of operations or cash flows.

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

Dec. 30, 2016

Accounting Policies [Abstract]

Schedule of Change in Accounting Estimate

Changes in estimates on contracts for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions, except for per share amounts)
Net favorable impact to income (loss) from continuing operations before taxes	$	37	$	18	$	24
Impact on diluted EPS from continuing operations attributable to Leidos common stockholders	$	0.22	$	0.14	$	0.20

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	Not to exceed 40
Building improvements and leasehold improvements	Straight-line	Shorter of useful life of asset or remaining lease term
Office furniture	Straight-line or declining-balance	6-9

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



	December 30, 2016			January 1, 2016
	(in millions)
Computers and other equipment	$	172		$	161
Leasehold improvements	161			149
Buildings and improvements	104			57
Office furniture and fixtures	35			30
Land	57			15
Construction in progress	12			2
	541			414
Less accumulated depreciation and amortization	(282		)	(272		)
	$	259		$	142

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		8-10
Software and technology		9-15
Programs and contract intangibles		10
Backlog		1

Acquisitions (Tables)

12 Months Ended

Dec. 30, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The preliminary purchase consideration for the acquisition of the IS&GS Business was as follows (in millions):



Value of common stock issued to Lockheed Martin stockholders⁽¹⁾	$	2,929
Equity consideration for replacement awards⁽²⁾	9
Preliminary working capital adjustments	50
Preliminary purchase price	$	2,988

The Company incurred the following expenses related to the acquisition and integration of the IS&GS Business:



	12 Months Ended
	December 30, 2016
	(in millions)
Acquisition costs	$	44
Integration costs	46
Total acquisition and integration costs	$	90

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

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



Cash	$	25
Receivables, net	940
Inventory, prepaid expenses and other current assets	71
Property, plant and equipment	137
Deferred tax assets	12
Intangible assets	1,650
Other assets	23
Accounts payable and accrued liabilities	(700		)
Accrued payroll and employee benefits	(190		)
Long-term debt, current portion	(23		)
Deferred tax liabilities	(532		)
Long-term debt, net of current portion	(1,780		)
Other long-term liabilities	(50		)
Total identifiable net liabilities assumed	(417		)
Non-controlling interest	(10		)
Goodwill	3,415
Preliminary purchase price	$	2,988

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]



	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs and contract intangibles⁽¹⁾	10.0	$	1,450
Backlog	1.4	200
Total	9.0	$	1,650

Business Acquisition, Pro Forma Information

The pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had been completed on January 31, 2015, nor is it intended to be an indication of future operating results.



	12 Months Ended		11 Months Ended
(unaudited)	December 30, 2016		January 1, 2016
	(in millions, except for per share amounts)
Revenues	$	10,443	$	9,868
Income from continuing operations	342		343
Income from continuing operations attributable to Leidos common stockholders	336		338
Earnings per share:
Basic	$	2.24	$	2.25
Diluted	$	2.21	$	2.24

Divestitures (Tables)

12 Months Ended

Dec. 30, 2016

SAIC

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

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:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Revenues	$	14	$	17	$	39
Cost of revenues	14		17		39
Operating income	$	—	$	—	$	—

Other Disposals

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Discontinued Operations

The operating results through the date of disposal of the Company's discontinued operations discussed above, excluding the spin-off of New SAIC, for the periods presented were as follows:



	11 Months Ended			12 Months Ended
	January 1, 2016			January 30, 2015
	(in millions)
Revenues	$	—		$	29
Cost of revenues	—			21
Selling, general and administrative expenses (including impairment charges of $9 million for the fiscal year ended January 30, 2015)	2			29
Intangible asset impairment charges	—			3
Operating loss	$	(2	)	$	(24	)
Non-operating income	$	1		$	11

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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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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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Restructuring Expenses (Tables)

12 Months Ended

Dec. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The restructuring expenses related to the separation of New SAIC and the Company's real estate optimization initiatives were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Lease termination expenses	$	2	$	4	$	3

The related restructuring expenses were as follows:



	12 Months Ended
	December 30, 2016
	(in millions)
Severance costs	$	10
Lease termination expenses	2
Restructuring expenses related to the IS&GS Business in operating income	$	12

Schedule of Restructuring Reserve

The restructuring liability related to the separation of New SAIC at December 30, 2016, was:



	Lease Termination Expenses
	(in millions)
Balance as of January 30, 2015	$	11
Charges	1
Cash payments	(5		)
Balance as of January 1, 2016	$	7
Charges	2
Cash payments	(5		)
Balance as of December 30, 2016	$	4

The related restructuring liability at December 30, 2016, was:



	Severance Costs			Lease Termination Expenses			Total
	(in millions)
Balance as of January 1, 2016	$	—		$	—		$	—
Charges	10			2			12
Cash payments	(3		)	(1		)	(4		)
Balance as of December 30, 2016	$	7		$	1		$	8

Goodwill (Tables)

12 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill by Segment

The balance and changes in the carrying amount of goodwill by segment, including the preliminary fair value of goodwill related to the acquisition of the IS&GS Business, were as follows:



	NSS		HIS		IS&GS		Total
	(in millions)
Goodwill at January 30, 2015	$	788	$	419	$	—	$	1,207
Adjustments	—		—		—		—
Goodwill at January 1, 2016	$	788	$	419	$	—	$	1,207
Acquisition of the IS&GS Business	—		—		3,415		3,415
Goodwill at December 30, 2016	$	788	$	419	$	3,415	$	4,622

Intangible Assets (Tables)

12 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets Including Estimates of Assets Acquired

Intangible assets, including the preliminary fair values of those acquired through the purchase of the IS&GS Business, consisted of the following:



	December 30, 2016							January 1, 2016
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Customer relationships	$	6	$	(5	)	$	1	$	20	$	(16	)	$	4
Software and technology	61		(48		)	13		61		(44		)	17
Programs and contract intangibles	1,450		(25		)	1,425		—		—			—
Backlog	200		(54		)	146		—		—			—
Total finite-lived intangible assets	1,717		(132		)	1,585		81		(60		)	21
Indefinite-lived intangible assets:
Trade names	4		—			4		4		—			4
Total intangible assets	$	1,721	$	(132	)	$	1,589	$	85	$	(60	)	$	25

Schedule of Amortization Expense for Finite-Lived Intangible Assets

The estimated annual amortization expense related to finite-lived intangible assets as of December 30, 2016, is as follows:



Fiscal Year Ending
	(in millions)
2017	$	277
2018	213
2019	188
2020	165
2021	139
2022 and thereafter	603
	$	1,585

Receivables (Tables)

12 Months Ended

Dec. 30, 2016

Receivables [Abstract]

Schedule of Accounts Receivable

The components of receivables, net consisted of the following:



	December 30, 2016			January 1, 2016
	(in millions)
Billed and billable receivables	$	847		$	715
Unbilled receivables	821			216
Allowance for doubtful accounts	(11		)	(10		)
	$	1,657		$	921

Property Plant and Equipment (Tables)

12 Months Ended

Dec. 30, 2016

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	Not to exceed 40
Building improvements and leasehold improvements	Straight-line	Shorter of useful life of asset or remaining lease term
Office furniture	Straight-line or declining-balance	6-9

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



	December 30, 2016			January 1, 2016
	(in millions)
Computers and other equipment	$	172		$	161
Leasehold improvements	161			149
Buildings and improvements	104			57
Office furniture and fixtures	35			30
Land	57			15
Construction in progress	12			2
	541			414
Less accumulated depreciation and amortization	(282		)	(272		)
	$	259		$	142

Composition of Certain Financial Statement Captions (Tables)

12 Months Ended

Dec. 30, 2016

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Schedule of Certain Financial Statement Captions



	December 30, 2016		January 1, 2016
	(in millions)
Inventory, prepaid expenses and other current assets:
Inventory	$	67	$	70
Prepaid expenses	90		26
Prepaid income taxes and tax refunds receivable	13		56
Transition costs and project assets	62		26
Pre-contract costs	33		1
Restricted cash	20		17
Short-term notes receivable	3		4
Other	60		16
	$	348	$	216
Other assets:
Long-term notes receivables	$	89	$	91
Investment in rabbi trust	48		44
Deferred costs	31		18
Derivatives	29		8
Equity method investments⁽¹⁾	20		1
Other	48		33
	$	265	$	195
Accounts payable and accrued liabilities:
Accounts payable	$	591	$	306
Accrued liabilities	493		318
Collections in excess of revenues and deferred revenue	246		133
Provision for loss contracts	97		4
	$	1,427	$	761
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	211	$	142
Accrued vacation	244		121
Accrued contributions to employee benefit plans	28		5
	$	483	$	268
Other long-term liabilities:
Deferred compensation	$	48	$	41
Lease related obligations	37		35
Tax indemnity liability	31		—
Deferred revenue	20		18
Accrued pension liabilities	6		—
Liabilities for uncertain tax positions	5		5
Other	57		50
	$	204	$	149

Income Statement



	12 Months Ended			11 Months Ended		12 Months Ended
	December 30, 2016			January 1, 2016		January 30, 2015
	(in millions)
Other (expense) income, net
Loss on foreign currency	$	(18	)	$	—	$	(4	)
Gain on sale of former headquarters	—			82		—
Other income, net	5			2		9
	$	(13	)	$	84	$	5

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The fair value of the interest rate swaps was as follows:



	Balance sheet line item	December 30, 2016		January 1, 2016
		(in millions)
Fair value interest rate swaps	Other assets	$	3	$	8
Cash flow interest rate swaps	Other assets	26		—

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The effect of the Company's cash flow hedge on other comprehensive income and earnings for the periods presented was as follows:



	12 Months Ended
	December 30, 2016
	(in millions)
Effective portion recognized in other comprehensive income	$	22
Effective portion reclassified from accumulated other comprehensive loss to earnings	2
Ineffective portion recognized in earnings	2

Debt (Tables)

12 Months Ended

Dec. 30, 2016

Debt Disclosure [Abstract]

Schedule of Notes Payable and Long-Term Debt

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



	Stated interest rate		Effective interest rate		December 30, 2016⁽¹⁾		January 1, 2016⁽¹⁾
	(dollars in millions)
Senior secured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	$	451	$	455
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Senior secured term loans:
$400 million Term Loan A, due August 2019	2.86	%	3.78	%	123		—
$690 million Term Loan A, due August 2021	2.86	%	3.42	%	676		—
$310 million Term Loan A, due August 2021	2.86	%	3.39	%	304		—
$1,131 million Term Loan B, due August 2023	3.36	%	3.70	%	1,110		—
Senior unsecured notes:
$250 million notes, due July 2032	7.13	%	7.43	%	246		246
$300 million notes, due July 2033	5.50	%	5.88	%	158		158
Capital leases due on various dates through fiscal 2020	0%-5.94%		Various		3		6
Total notes payable and long-term debt					3,287		1,081
Less: current portion					62		2
Total notes payable and long-term debt, net of current portion					$	3,225	$	1,079
Fair value of notes payable and long-term debt					$	3,336	$	1,060


⁽¹⁾	The carrying amounts of the notes payable and long-term debt as of December 30, 2016, and January 1, 2016, include the remaining principal outstanding of $3,339 million and $1,087 million, respectively, unamortized debt discounts of $46 million and $5 million, respectively, and deferred debt issuance costs of $9 million and $7 million, respectively.

Schedule of Maturities of Notes Payable and Long-Term Debt

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



Fiscal Year Ending
	(in millions)
2017	$	62
2018	82
2019	190
2020	593
2021	711
2022 and thereafter	1,704
Total principal payments	3,342
Less: unamortized debt discount and issuance costs	55
	$	3,287

- 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=64930739&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=64930785&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=64930785&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

+ Details

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 30, 2016

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:



	Foreign currency translation adjustments			Unrecognized net (loss) income on derivative instruments			Pension liability adjustments			Total accumulated other comprehensive loss
	(in millions)
Balance at January 31, 2014	$	2		$	(5	)	$	(3	)	$	(6	)
Other comprehensive loss	(1		)	—			(4		)	(5		)
Balance at January 30, 2015	1			(5		)	(7		)	(11		)
Other comprehensive (loss) income	(1		)	1			3			3
Balance at January 1, 2016	—			(4		)	(4		)	(8		)
Other comprehensive (loss) income	(7		)	16			3			12
Reclassification from accumulated other comprehensive loss	—			(2		)	(6		)	(8		)
Balance at December 30, 2016	$	(7	)	$	10		$	(7	)	$	(4	)

Earnings (Loss) Per Share (EPS) (Tables)

12 Months Ended

Dec. 30, 2016

Earnings Per Share [Abstract]

Reconciliation of Weighted Average Number of Shares Outstanding

The weighted average number of shares used to compute basic and diluted EPS attributable to Leidos stockholders were:



	12 Months Ended	11 Months Ended		12 Months Ended
	December 30, 2016	January 1, 2016	January 2, 2015	January 30, 2015
			(unaudited)
	(in millions)
Basic weighted average number of shares outstanding	102	73	74	74
Dilutive common share equivalents—stock options and other stock awards	2	1	—	—
Diluted weighted average number of shares outstanding	104	74	74	74

Schedule Of Basic and Diluted EPS

Basic and diluted EPS attributable to Leidos stockholders for the years presented was as follows:



	12 Months Ended		11 Months Ended						12 Months Ended
	December 30, 2016		January 1, 2016			January 2, 2015			January 30, 2015
						(unaudited)
Basic:
Income (loss) from continuing operations attributable to Leidos common stockholders	$	2.39	$	3.33		$	(4.36	)	$	(4.46	)
Discontinued operations, net of taxes	—		(0.01		)	(0.15		)	0.10
Net income (loss) attributable to Leidos common stockholders	$	2.39	$	3.32		$	(4.51	)	$	(4.36	)
Diluted:
Income (loss) from continuing operations attributable to Leidos common stockholders	$	2.35	$	3.28		$	(4.36	)	$	(4.46	)
Discontinued operations, net of taxes	—		(0.01		)	(0.15		)	0.10
Net income (loss) attributable to Leidos common stockholders	$	2.35	$	3.27		$	(4.51	)	$	(4.36	)

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:



	11 Months Ended		12 Months Ended
	January 1, 2016	January 2, 2015	January 30, 2015
		(unaudited)
	(in millions)
Stock options excluded	1	4	4
Vesting stock awards excluded	—	3	3

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2016

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

Stock-Based Compensation

Plan Summaries

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



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Total stock-based compensation expense	$	35	$	30	$	42
Tax benefits recognized from stock-based compensation	$	14	$	12	$	16

Stock Options



	12 Months Ended						11 Months Ended			12 Months Ended
	December 30, 2016 (Grants after acquisition)			December 30, 2016 (Grants before acquisition)			January 1, 2016			January 30, 2015
Weighted average grant-date fair value	$	10.33		$	9.54		$	6.72		$	6.15
Expected term (in years)	4.7			4.8			4.7			4.7
Expected volatility	37.9		%	29.9		%	24.5		%	25.1		%
Risk-free interest rate	1.2		%	1.3		%	1.4		%	1.6		%
Dividend yield	2.7		%	2.5		%	2.9		%	2.9		%

Special Dividend Adjustment

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, 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
Options granted	0.6		42.64
Options forfeited or expired	(0.9	)	42.03
Options exercised	(0.9	)	38.53			9
Outstanding at January 1, 2016	2.4		$	38.21	4.5	$	43
Options granted	0.6		43.56
Special dividend adjustments	0.9
Options forfeited or expired	(0.2	)	34.98
Options exercised	(0.4	)	34.11			5
Outstanding at December 30, 2016	3.3		29.77		4.1	70
Exercisable at December 30, 2016	1.6		$	28.19	3.1	$	37
Vested and expected to vest in the future as of December 30, 2016	3.1		$	29.58	4.1	$	67

The following table summarizes activity related to exercises of stock options:



	12 Months Ended		11 Months Ended
	December 30, 2016		January 1, 2016
	(in millions)
Tax benefits from stock options exercised	$	1	$	1
Fair value of stock surrendered in payment of the exercise price for stock options exercised	$	4	$	3

Restricted Stock Units and Awards

Restricted stock units and 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 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
Awards granted	0.5		42.95
Awards forfeited	(0.4	)	40.10
Awards vested	(0.8	)	40.05
Unvested stock awards at January 1, 2016	2.3		$	38.97
Awards granted	1.5		41.45
Awards forfeited	(0.2	)	40.88
Awards vested	(1.1	)	38.91
Unvested stock awards at December 30, 2016	2.5		$	40.39

Performance-Based Stock Awards

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, 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
Awards granted	0.2			44.30
Awards forfeited	(0.1	)		43.49
Unvested at January 1, 2016	0.2			$	43.35
Awards granted	0.2			45.62
Unvested at December 30, 2016	0.4			$	44.44

*Adjusted for Conversion Ratio of 1.4523 in connection with the spin-off of New SAIC in September 2013

The following table summarizes activity related to exercises of stock options:



	12 Months Ended		11 Months Ended
	December 30, 2016		January 1, 2016
	(in millions)
Tax benefits from stock options exercised	$	1	$	1
Fair value of stock surrendered in payment of the exercise price for stock options exercised	$	4	$	3

Schedule of Stock-Based Compensation and Related Tax Benefits Recognized

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



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
	(in millions)
Total stock-based compensation expense	$	35	$	30	$	42
Tax benefits recognized from stock-based compensation	$	14	$	12	$	16

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



	12 Months Ended						11 Months Ended			12 Months Ended
	December 30, 2016 (Grants after acquisition)			December 30, 2016 (Grants before acquisition)			January 1, 2016			January 30, 2015
Weighted average grant-date fair value	$	10.33		$	9.54		$	6.72		$	6.15
Expected term (in years)	4.7			4.8			4.7			4.7
Expected volatility	37.9		%	29.9		%	24.5		%	25.1		%
Risk-free interest rate	1.2		%	1.3		%	1.4		%	1.6		%
Dividend yield	2.7		%	2.5		%	2.9		%	2.9		%

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, 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
Options granted	0.6		42.64
Options forfeited or expired	(0.9	)	42.03
Options exercised	(0.9	)	38.53			9
Outstanding at January 1, 2016	2.4		$	38.21	4.5	$	43
Options granted	0.6		43.56
Special dividend adjustments	0.9
Options forfeited or expired	(0.2	)	34.98
Options exercised	(0.4	)	34.11			5
Outstanding at December 30, 2016	3.3		29.77		4.1	70
Exercisable at December 30, 2016	1.6		$	28.19	3.1	$	37
Vested and expected to vest in the future as of December 30, 2016	3.1		$	29.58	4.1	$	67

Schedule of Vesting Stock Award Activity

Restricted stock units and 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 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
Awards granted	0.5		42.95
Awards forfeited	(0.4	)	40.10
Awards vested	(0.8	)	40.05
Unvested stock awards at January 1, 2016	2.3		$	38.97
Awards granted	1.5		41.45
Awards forfeited	(0.2	)	40.88
Awards vested	(1.1	)	38.91
Unvested stock awards at December 30, 2016	2.5		$	40.39

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, 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
Awards granted	0.2			44.30
Awards forfeited	(0.1	)		43.49
Unvested at January 1, 2016	0.2			$	43.35
Awards granted	0.2			45.62
Unvested at December 30, 2016	0.4			$	44.44

*Adjusted for Conversion Ratio of 1.4523 in connection with the spin-off of New SAIC in September 2013

- Definition

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes related to continuing operations for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 included the following:



	12 Months Ended			11 Months Ended		12 Months Ended
	December 30, 2016			January 1, 2016		January 30, 2015
	(in millions)
Current:
Federal and foreign	$	88		$	71	$	16
State	16			14		(6		)
Deferred:
Federal and foreign	(29		)	20		26
State	(3		)	7		11
Total	$	72		$	112	$	47

Schedule of Reconciliation of Provision for Income Taxes



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Amount computed at the statutory federal income tax rate (35%)	$	111		$	124		$	(99	)
State income taxes, net of federal tax benefit	8			14			3
Taxable conversion of subsidiary	—			—			(116		)
Change in valuation allowance for deferred tax assets	(8		)	(21		)	105
Change in accruals for uncertain tax positions	1			(4		)	2
Research and development credits	(4		)	(4		)	(4		)
Dividends paid to employee stock ownership plan	(38		)	(3		)	(4		)
Capitalized transaction costs	7			—			—
Excess tax benefits from stock-based compensation	(8		)	—			—
Non-deductible goodwill	—			—			156
Other	3			6			4
Total	$	72		$	112		$	47
Effective income tax rate	22.6		%	31.5		%	(16.6		)%

Schedule of Deferred Tax Assets (Liabilities)



	December 30, 2016			January 1, 2016
	(in millions)
Accrued vacation and bonuses	$	89		$	45
Investments	3			3
Deferred compensation	38			39
Vesting stock awards	23			21
Credits and net operating losses carryovers	35			15
Employee benefit contributions	3			—
Capital loss carryover	81			91
Reserves	103			31
Deferred rent and tenant allowances	16			14
Other	17			13
Total deferred tax assets	408			272
Valuation allowance	(102		)	(102		)
Deferred tax assets, net of valuation allowance	306			170

Deferred revenue	(42		)	(36		)
Fixed asset basis differences	(11		)	(1		)
Purchased intangible assets	(748		)	(138		)
Partnership interest	(14		)	(11		)
Employee benefit contributions	—			(1		)
Other	(15		)	(9		)
Total deferred tax liabilities	(830		)	(196		)
Net deferred tax liabilities	$	(524	)	$	(26	)

Schedule of Net Deferred Tax Assets

Net deferred tax (liabilities) assets were as follows:



	December 30, 2016			January 1, 2016
	(in millions)
Net non-current deferred tax assets	$	16		$	8
Net non-current deferred tax liabilities	(540		)	(34		)
Total net deferred tax liabilities	$	(524	)	$	(26	)

Schedule of Changes in Unrecognized Tax Benefits

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



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Unrecognized tax benefits at beginning of year	$	11		$	17		$	14
Additions for tax positions related to current year	1			5			2
Additions for tax positions related to prior years	4			4			11
Reductions for tax positions related to prior years	(7		)	(15		)	(5		)
Settlements with taxing authorities	—			—			(1		)
Lapse of statute of limitations	—			—			(4		)
Unrecognized tax benefits at end of year	$	9		$	11		$	17
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	4		$	7		$	5

Leases (Tables)

12 Months Ended

Dec. 30, 2016

Leases [Abstract]

Schedule of Rental Expense for Facilities and Equipment

Rental expense for facilities and equipment related to continuing operations for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Gross rental expense	$	107		$	83		$	107
Less: sublease income	(2		)	(8		)	(9		)
Net rental expense	$	105		$	75		$	98

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

Future minimum lease commitments and sublease receipts, under non-cancelable operating leases in effect at December 30, 2016, are as follows:



Fiscal Year Ending	Operating lease commitment		Sublease receipts
	(in millions)
2017	$	142	$	4
2018	106		2
2019	83		1
2020	58		1
2021	41		1
2022 and thereafter	92		—
Total	$	522	$	9

Supplementary Cash Flow Information (Tables)

12 Months Ended

Dec. 30, 2016

Supplemental Cash Flow Information [Abstract]

Schedule of Supplementary Cash Flow Information



	12 Months Ended		11 Months Ended				12 Months Ended
	December 30, 2016		January 1, 2016		January 2, 2015		January 30, 2015
					(unaudited)
	(in millions)
Dividends declared and other	$	21	$	2	$	25	$	—
Capital lease obligations	$	—	$	6	$	—	$	—
Promissory note, net received for disposition of business	$	—	$	72	$	—	$	—
Promissory note, net received from a real estate sale	$	—	$	20	$	—	$	—
Stock issued for acquisition of the IS&GS Business	$	2,938	$	—	$	—	$	—
Cash paid for interest	$	90	$	50	$	74	$	74
Cash paid for income taxes, net of refunds (including discontinued operations)	$	47	$	31	$	22	$	55

Business Segments (Tables)

12 Months Ended

Dec. 30, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following tables summarize business segment information for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015:



	12 Months Ended			11 Months Ended			12 Months Ended
	December 30, 2016			January 1, 2016			January 30, 2015
	(in millions)
Revenues:
National Security Solutions	$	3,610		$	3,210		$	3,594
Information Systems & Global Solutions	1,971			—			—
Health and Infrastructure	1,463			1,496			1,485
Corporate and Other	(1		)	6			(16		)
Total revenues	$	7,043		$	4,712		$	5,063
Operating income (loss):
National Security Solutions	292			263			286
Operating income margin	8.1		%	8.2		%	8.0		%
Information Systems & Global Solutions	114			—			—
Operating income margin	5.8		%	—		%	—		%
Health and Infrastructure	162			76			(472		)
Operating income (loss) margin	11.1		%	5.1		%	(31.8		)%
Corporate and Other	(151		)	(19		)	(28		)
Total operating income (loss)	$	417		$	320		$	(214	)
Operating income (loss) margin	5.9		%	6.8		%	(4.2		)%
Amortization of intangible assets:
Information Systems & Global Solutions	79			—			—
Health and Infrastructure	5			8			15
Total amortization of intangible assets	$	84		$	8		$	15

Schedule of Total Revenue Percentages Contributable to Specific Government Agencies

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 years for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015 were as follows:



	12 Months Ended		11 Months Ended		12 Months Ended
	December 30, 2016		January 1, 2016		January 30, 2015
U.S. Government	81	%	76	%	79	%
U.S. DoD	56	%	64	%	67	%
U.S. Army	14	%	14	%	16	%
Maryland Procurement Office	7	%	10	%	10	%

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Data



	Three Months Ended
	April 1, 2016		July 1, 2016		September 30, 2016		December 30, 2016
	(in millions, except per share amounts)
Fiscal 2016 ⁽¹⁾
Revenues	$	1,312	$	1,288	$	1,868	$	2,575
Operating income	$	89	$	75	$	101	$	152
Income from continuing operations⁽²⁾	$	53	$	41	$	92	$	60
Net income⁽²⁾	$	53	$	41	$	92	$	60
Net income attributable to Leidos common stockholders	$	53	$	41	$	91	$	59
Basic earnings per share attributable to Leidoscommon stockholders ⁽³⁾	$	0.74	$	0.56	$	0.81	$	0.39
Diluted earnings per share attributable to Leidos common stockholders ⁽³⁾	$	0.72	$	0.55	$	0.80	$	0.39
	Three Months Ended
	April 3, 2015		July 3, 2015		October 2, 2015		January 1, 2016
	(in millions, except per share amounts)
Calendar 2015 ⁽⁴⁾⁽⁵⁾
Revenues	$	1,246	$	1,257	$	1,302	$	1,281
Operating income	$	38	$	64	$	94	$	102
Income from continuing operations	$	23	$	37	$	49	$	127
Income from discontinued operations	$	18	$	—	$	—	$	—
Net income	$	41	$	37	$	49	$	127
Basic earnings per share⁽³⁾	$	0.32	$	0.51	$	0.68	$	1.76
Diluted earnings per share⁽³⁾	$	0.31	$	0.50	$	0.67	$	1.72

⁽¹⁾


⁽²⁾	Due to the adoption of ASU 2016-09 in the second quarter of fiscal 2016, the Company recognized a $4 million, $3 million and $1 million discrete tax benefit for the first, second and third quarter, respectively, of fiscal 2016.


⁽³⁾	Earnings per share from continuing operations are computed independently for each of the quarters presented and therefore may not sum to the total for fiscal 2016 and calendar 2015.

⁽⁴⁾

⁽⁵⁾

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			11 Months Ended		12 Months Ended
	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Significant Accounting Policies [Line Items]
Internal research and development costs included in selling, general and administrative expenses				$ 29		$ 44	$ 37
Debt issuance costs, net				7		9
Tax benefits recognized from stock-based compensation	$ 1	$ 3	$ 4	12		14	16
Cash flows provided by operating activities of continuing operations				399	$ 385	446	396
Net Cash Provided by (Used in) Financing Activities, Continuing Operations				249	$ 431	$ 751	$ 478
Leidos, Inc.
Significant Accounting Policies [Line Items]
Ownership interest (in percentage)						100.00%
Customer relationships \| Minimum
Significant Accounting Policies [Line Items]
Useful life of intangible assets						8 years
Customer relationships \| Maximum
Significant Accounting Policies [Line Items]
Useful life of intangible assets						10 years
Programs and contract intangibles
Significant Accounting Policies [Line Items]
Useful life of intangible assets						10 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
Backlog
Significant Accounting Policies [Line Items]
Useful life of intangible assets						1 year
Reported Value Measurement
Significant Accounting Policies [Line Items]
Notes receivable, fair value disclosure						$ 92
Accounting Standards Update 2016-09, Excess Tax Benefit Component \| New Accounting Pronouncement, Early Adoption, Effect
Significant Accounting Policies [Line Items]
Tax benefits recognized from stock-based compensation						8
Cash flows provided by operating activities of continuing operations						8
Net Cash Provided by (Used in) Financing Activities, Continuing Operations						$ 8
Long-term Debt \| Accounting Standards Update 2015-03
Significant Accounting Policies [Line Items]
Debt issuance costs, net				$ 7

Summary of Significant Accounting Policies - Schedule of Depreciation using Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 30, 2016
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 \| 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 useful life of asset or remaining lease term
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

Summary of Significant Accounting Policies (Changes in Estimates on Contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Accounting Policies [Abstract]
Net favorable impact to income (loss) from continuing operations before taxes	$ 18	$ 37	$ 24
Impact on diluted EPS from continuing operations attributable to Leidos common stockholders	$ 0.14	$ 0.22	$ 0.20

Acquisitions (Lockheed Martin Merger) (Details) - USD ($) $ / shares in Units, shares in Millions				3 Months Ended	12 Months Ended
	Aug. 22, 2016	Aug. 16, 2016	Aug. 15, 2016	Dec. 30, 2016	Dec. 30, 2016
Business Acquisition [Line Items]
Special cash dividend					$ 13.64
Share price (usd per share)		$ 51.69
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Number of shares Lockheed Martin shareholders will receive from Leidos, as a percentage of Leidos common stock (in percentage)		50.50%
Percentage of common stock retained by the Leidos ( in percentage)		49.50%
Leidos Innovations Corporation indebtedness assumed		$ 1,800,000,000
Special cash dividend			$ 13.64
Special dividend declared	$ 993,000,000				$ 993,000,000
Number of shares Lockheed Martin shareholders will receive from Leidos		77
Acquisition related costs					44,000,000
Change in PPE				$ 41,000,000
Decrease in deferred tax liabilities				(23,000,000)
Change in receivable				(34,000,000)
Goodwill adjustment				(252,000,000)
Deferred tax liabilities adjustment				(315,000,000)
Adjustment, other Long-term Liabilities				$ (32,000,000)
Goodwill, expected tax deductible, amount		$ 418,000,000
Intangible assets acquired		1,650,000,000
Abacus Innovations Corporation (Splitco) \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Debt financing		1,800,000,000
Payments to parent, special payment		1,800,000,000
Secured Debt \| Term Loan A $690 Million due August 2021 \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Leidos Innovations Corporation indebtedness assumed		690,000,000
Revolving Credit Facility \| Line of Credit
Business Acquisition [Line Items]
Unsecured borrowing capacity		750,000,000
Revolving Credit Facility \| Line of Credit \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Unsecured borrowing capacity		$ 750,000,000
Additional paid-in capital \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Stock issued	$ 29,000,000				$ 29,000,000

Acquisitions (Break-up of Purchase Price Allocation) (Details) - Information Systems & Global Solutions Business of Lockheed Martin - USD ($) $ in Millions		12 Months Ended
	Aug. 16, 2016	Dec. 30, 2016
Business Acquisition [Line Items]
Value of common stock issued to Lockheed Martin stockholders(1)	$ 2,929
Equity consideration for replacement awards	9	$ 9
Preliminary working capital adjustments	50
Preliminary purchase price	2,988
Leidos Innovations Corporation indebtedness assumed	$ 1,800

(Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Detail) - USD ($) $ in Millions	Dec. 30, 2016	Aug. 16, 2016	Jan. 01, 2016	Jan. 30, 2015
Business Acquisition [Line Items]
Goodwill	$ 4,622		$ 1,207	$ 1,207
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Cash		$ 25
Receivables, net		940
Inventory, prepaid expenses and other current assets		71
Property, plant and equipment		137
Deferred tax assets		12
Intangible assets		1,650
Other assets		23
Accounts payable and accrued liabilities		(700)
Accrued payroll and employee benefits		(190)
Long-term debt, current portion		(23)
Deferred tax liabilities		(532)
Long-term debt, net of current portion		(1,780)
Other long-term liabilities		(50)
Total identifiable net liabilities assumed		(417)
Non-controlling interest		(10)
Goodwill		3,415
Preliminary purchase price		$ 2,988

Acquisitions (Schedule of Purchase Price Allocations Related to Acquisitions) (Detail) - USD ($) $ in Millions		3 Months Ended				11 Months Ended		12 Months Ended
	Aug. 16, 2016	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Business Acquisition [Line Items]
Acquisition and Integration Costs		$ 22	$ 44	$ 15	$ 9	$ 0	$ 0	$ 90	$ 0
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Weighted average lives of finite-lived intangibles (years)	9 years
Intangible assets	$ 1,650
Acquisition costs								44
Integration costs								46
Acquisition and Integration Costs								$ 90
Information Systems & Global Solutions Business of Lockheed Martin \| Programs and contract intangibles
Business Acquisition [Line Items]
Weighted average lives of finite-lived intangibles (years)	10 years
Intangible assets	$ 1,450
Information Systems & Global Solutions Business of Lockheed Martin \| Backlog
Business Acquisition [Line Items]
Weighted average lives of finite-lived intangibles (years)	1 year 4 months 24 days
Intangible assets	$ 200

Acquisitions Pro Forma Information (Details) - Information Systems & Global Solutions Business of Lockheed Martin - USD ($) $ / shares in Units, $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016
Business Acquisition [Line Items]
Revenues	$ 9,868	$ 10,443
Income from continuing operations	$ 343	$ 342
Basic (in usd per share)	$ 2.25	$ 2.24
Diluted (in usd per share)	$ 2.24	$ 2.21
Leidos Holdings, Inc
Business Acquisition [Line Items]
Income from continuing operations	$ 338	$ 336

Divestitures - (Additional Information) (Detail) $ in Millions			1 Months Ended			3 Months Ended			11 Months Ended		12 Months Ended
	Apr. 15, 2016 USD ($)	Jul. 24, 2015 USD ($) extension	Feb. 28, 2015 USD ($)	Aug. 31, 2014 USD ($)	Jul. 31, 2014 USD ($)	Jul. 03, 2015 USD ($)	Apr. 03, 2015 USD ($)	May 02, 2014 USD ($)	Jan. 01, 2016 USD ($)	Jan. 02, 2015 USD ($)	Dec. 30, 2016 USD ($)	Jan. 30, 2015 USD ($)	Mar. 31, 2015	Oct. 11, 2013 MW
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from disposition of business									$ 27	$ 0	$ 23	$ 0
Accounts payable and accrued liabilities									761		1,427
Proceeds from U.S. Treasury cash grant									0	80	0	80
Deferred tax assets									272		408
Promissory note, net received for disposition of business									72	0	0	0
Proceeds from collections on promissory note									0	0	4	0
Asset impairment charges									$ 33	$ 41	4	81
Plainfield Renewal Energy Holdings LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges							$ 40
Discontinued operation, percentage of ownership sold (in percentage)													100.00%
Other Disposals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges												9
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Plainfield Renewal Energy Holdings LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued operation, consideration		$ 102
Cash payment on closing		29
Promissory note, net received for disposition of business		73
Contingent earn-out payments		$ 30
Note receivable, option to extend for one year period, number \| extension		3
Note receivable, interest rate, stated percentage (in percentage)		6.00%
Note receivable, interest rate, stated percentage, if maturity is extended beyond July 24, 2017 (in percentage),		8.00%
Stated interest rate, if maturity is extended beyond July 24, 2019 (in percentage)		9.00%
Proceeds from collections on promissory note											$ 6
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Health and Infrastructure \| One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from disposition of business	$ 23
Disposal group, account receivable	73
Disposal group, non-current assets	3
Disposal group, account payable and accrued liabilities	63
Accounts payable and accrued liabilities	6
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Health and Infrastructure \| Plainfield Renewal Energy Holdings LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from U.S. Treasury cash grant					$ 80
Asset impairment charges						$ 29
Deferred tax assets					$ 27
Discontinued Operations, Disposed of by Sale \| HES
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses				$ 19
Discontinued Operations, Disposed of by Sale \| Cloudshield Technologies
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses			$ 5
Discontinued Operations, Disposed of by Sale \| Other Disposals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of assets								$ 12
Asset impairment charges								$ 9
Other Operating Income (Expense) \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Health and Infrastructure \| One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business	3
Selling costs	$ 1
Plainfield Renewal Energy Holdings LLC \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Capacity of power plant \| MW														37.5
Percentage of ownership (in percentage)														100.00%
Milestone Two \| Plainfield Renewal Energy Holdings LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent consideration arrangements												$ 2

Divestitures - (Operating Results Classified as Discontinued Operations) (Detail) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Discontinued Operation
Intangible asset impairment				$ 41
(Loss) income from discontinued operations before income taxes	$ (1)	$ (14)	$ 0	(13)
SAIC
Discontinued Operation
Revenues	17		14	39
Cost of revenues	17		14	39
Operating income	0		$ 0	0
Other Disposals
Discontinued Operation
Revenues	0			29
Cost of revenues	0			21
Selling, general and administrative expenses	2			29
Intangible asset impairment	0			3
Operating income	(2)			(24)
Nonoperating Income (Expense)	$ 1			$ 11

Restructuring Expenses (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended	11 Months Ended		12 Months Ended
Restructuring Expenses (Details) - USD ($) $ in Millions	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Sep. 30, 2016	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Restructuring Cost and Reserve [Line Items]
Lease termination expenses					$ 4	$ 1	$ 14	$ 3
Restructuring Reserve [Roll Forward]
Charges	$ 8	$ 5	$ 1
Restructuring liability, period to settle				1 year
IS&GS Acquisition
Restructuring Reserve [Roll Forward]
Opening balance				$ 0			0
Charges							12
Cash payments							(4)
Closing balance	8				0		8
Severance costs \| IS&GS Acquisition
Restructuring Reserve [Roll Forward]
Opening balance				0			0
Charges							10
Cash payments							(3)
Closing balance	7				0		7
Lease termination expenses \| Separation of New SAIC and Real Estate Optimization Initiatives
Restructuring Cost and Reserve [Line Items]
Lease termination expenses					4		2	3
Restructuring Reserve [Roll Forward]
Opening balance				7	11		7
Charges					1		2
Cash payments					(5)		(5)
Closing balance	4				7		$ 4	$ 11
Restructuring liability, period to settle							1 year
Lease termination expenses \| IS&GS Acquisition
Restructuring Reserve [Roll Forward]
Opening balance				$ 0			$ 0
Charges							2
Cash payments							(1)
Closing balance	$ 1				$ 0		$ 1

Goodwill (Schedule of Changes in Goodwill by Segment) (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016
Goodwill [Roll Forward]
Beginning balance, Goodwill	$ 1,207	$ 1,207
Adjustments	0
Acquisition of the IS&GS Business		3,415
Ending balance, Goodwill	1,207	4,622
NSS
Goodwill [Roll Forward]
Beginning balance, Goodwill	788	788
Adjustments	0
Acquisition of the IS&GS Business		0
Ending balance, Goodwill	788	788
Health and Infrastructure
Goodwill [Roll Forward]
Beginning balance, Goodwill	419	419
Adjustments	0
Acquisition of the IS&GS Business		0
Ending balance, Goodwill	419	419
IS&GS
Goodwill [Roll Forward]
Beginning balance, Goodwill	0	0
Adjustments	0
Acquisition of the IS&GS Business		3,415
Ending balance, Goodwill	$ 0	$ 3,415

Goodwill - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	11 Months Ended		12 Months Ended
	Aug. 01, 2014	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Goodwill [Line Items]
Goodwill impairment charges	$ 486	$ 0	$ 486	$ 0	$ 486
Income Approach Valuation Technique
Goodwill [Line Items]
Fair Value Input, Specific company risk premium	2.00%
Health Solutions
Goodwill [Line Items]
Fair Value as percentage of carrying value	62.00%
Health Solutions \| Income Approach Valuation Technique
Goodwill [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 [Line Items]
Fair Value Inputs, EBITDA multiple	6.0
Fair Value Inputs, revenue multiple	0.5
Infrastructure [Member]
Goodwill [Line Items]
Fair Value as percentage of carrying value	91.00%
Infrastructure [Member] \| Income Approach Valuation Technique
Goodwill [Line Items]
Fair Value Inputs, LT revenue growth rate	2.00%
Fair Value Inputs, Cap rate	14.00%
Infrastructure [Member] \| Market Approach Valuation Technique
Goodwill [Line Items]
Fair Value Inputs, EBITDA multiple	6.8
Fair Value Inputs, revenue multiple	0.4
Health and Infrastructure \| Market Approach Valuation Technique
Goodwill [Line Items]
Fair Value Inputs, control premium	20.00%
Health and Infrastructure
Goodwill [Line Items]
Accumulated impairment loss		$ 486		$ 486
Health and Infrastructure \| Health Solutions
Goodwill [Line Items]
Goodwill impairment charges	$ 369
Health and Infrastructure \| Infrastructure [Member]
Goodwill [Line Items]
Goodwill impairment charges	$ 117

Intangible Assets (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 1,717	$ 81
Accumulated amortization	(132)	(60)
Net carrying value	1,585	21
Total intangible assets, Gross carrying value	1,721	85
Total intangible assets, Net carrying value	1,589	25
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	6	20
Accumulated amortization	(5)	(16)
Net carrying value	1	4
Software and technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	61	61
Accumulated amortization	(48)	(44)
Net carrying value	13	17
Programs and contract intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	1,450	0
Accumulated amortization	(25)	0
Net carrying value	1,425	0
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	200	0
Accumulated amortization	(54)	0
Net carrying value	146	0
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 4	$ 4

Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 277
2018	213
2019	188
2020	165
2021	139
2022 and thereafter	603
Net carrying value	$ 1,585	$ 21

Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	11 Months Ended	12 Months Ended
	Oct. 02, 2015	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment				$ 41
Gross carrying value		$ 81	$ 1,717
Amortization of intangible assets		8	84	15
Health and Infrastructure
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment		4	0
Amortization of intangible assets		8	$ 5	15
Vitalize and maxIT \| Health and Infrastructure
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment	$ 4			24
Gross carrying value		$ 38
Reveal Imaging Technologies, Inc. \| Health and Infrastructure
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment				14
Plainfield Renewal Energy Holdings LLC \| Health and Infrastructure
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment				$ 3

Receivables (Details) $ in Millions	11 Months Ended		12 Months Ended
Receivables (Details) $ in Millions	Jan. 01, 2016 USD ($) project	Jan. 02, 2015 USD ($)	Dec. 30, 2016 USD ($)	Jan. 30, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed and billable receivables	$ 715		$ 847
Unbilled receivables	216		821
Allowance for doubtful accounts	(10)		(11)
Accounts receivable, net	921		1,657
Bad debt expense	$ 8	$ 4	$ 3	$ 5
One Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of projects \| project	1
Bad debt expense	$ 11
Proceeds from sale of receivables	$ 6

Property Plant and Equipment (Details) - USD ($) $ in Millions	1 Months Ended	11 Months Ended	12 Months Ended
	Dec. 31, 2015	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 414	$ 541
Less accumulated depreciation and amortization		(272)	(282)
Property, plant and equipment, net		142	259
Depreciation		33	38	$ 47
Write off of property disposed	$ 40	40
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		161	172
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		149	161
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		57	104
Write off of property disposed		29
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		30	35
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		15	57
Write off of property disposed		10
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 2	$ 12

Composition of Certain Financial Statement Captions (Schedule of Certain Financial Statement Captions) (Detail) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Inventory, prepaid expenses and other current assets:
Inventory	$ 70		$ 67
Prepaid expenses	26		90
Prepaid income taxes and tax refunds receivable	56		13
Transition costs and project assets	26		62
Pre-contract costs	1		33
Restricted cash	17		20
Short-term notes receivable	4		3
Other	16		60
Total inventory, prepaid expenses and other current assets	216		348
Other assets:
Long-term notes receivables	91		89
Investment in rabbi trust	44		48
Deferred costs	18		31
Derivatives	8		29
Equity method investments	1		20
Other	33		48
Other Assets	195		265
Dividends received from equity method investments			10
Accounts payable and accrued liabilities:
Accrued liabilities	318		493
Accounts payable	306		591
Collections in excess of revenues and deferred revenue	133		246
Provision for loss contracts	4		97
Total accounts payable and accrued liabilities	761		1,427
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	142		211
Accrued vacation	121		244
Accrued contributions to employee benefit plans	5		28
Total Accrued payroll and employee benefits	268		483
Other long-term liabilities:
Deferred compensation	41		48
Lease related obligations	35		37
Tax indemnity liability	0		31
Deferred revenue	18		20
Accrued pension liabilities	0		6
Liabilities for uncertain tax positions	5		5	$ 6
Other	50		57
Total other long-term liabilities	149		204
Other (expense) income, net
Loss on foreign currency	0		(18)	(4)
Gain on sale of former headquarters	82		0	0
Other income, net	2		5	9
Other (expense) income, net	$ 84	$ 5	$ (13)	$ 5

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 29, 2017	Dec. 30, 2016	Aug. 31, 2016	Sep. 30, 2014
Derivative [Line Items]
Effective portion recognized in other comprehensive income			$ 22
Effective portion reclassified from accumulated other comprehensive loss to earnings			2
Ineffective portion recognized in earnings			2
Interest rate swaps \| Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount				$ 1,200
Stated interest rate				1.08%
Interest rate swaps \| Designated as Hedging Instrument \| Notes Which Mature In December 2020
Derivative [Line Items]
Fair value adjustment	$ (9)		(5)
Interest rate swaps \| Notes Payable and Long Term Debt, Net of Current Portion \| Designated as Hedging Instrument \| Notes Which Mature In December 2020
Derivative [Line Items]
Hedged instrument, face amount					$ 450
Stated interest rate					4.45%
Fair value interest rate swaps \| Interest rate swaps \| Other assets \| Designated as Hedging Instrument
Derivative [Line Items]
Other assets	8		3
Cash flow interest rate swaps \| Interest rate swaps \| Other assets \| Designated as Hedging Instrument
Derivative [Line Items]
Other assets	$ 0		$ 26
Scenario, Forecast
Derivative [Line Items]
Loss to be recognized in the next 12 months		$ 1

Debt (Summary of debt) (Detail) - USD ($)	Dec. 30, 2016	Jan. 01, 2016
Debt Instrument [Line Items]
Other notes payable due on various dates through fiscal 2021	$ 3,000,000
Total notes payable and long-term debt	3,287,000,000	$ 1,081,000,000
Total notes payable and long-term debt, net of current portion	3,225,000,000	1,079,000,000
Less: current portion	62,000,000	2,000,000
Fair value of notes payable and long-term debt	3,336,000,000	1,060,000,000
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior unsecured notes	$ 451,000,000	455,000,000
Stated interest rate (in percentage)	4.45%
Effective interest rate	4.53%
Senior unsecured notes, face amount	$ 450,000,000
Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior unsecured notes	$ 216,000,000	216,000,000
Stated interest rate (in percentage)	5.95%
Effective interest rate	6.03%
Senior unsecured notes, face amount	$ 300,000,000
Term Loan A Due August 2019
Debt Instrument [Line Items]
Stated interest rate (in percentage)	2.86%
Effective interest rate	3.78%
Secured Debt	$ 123,000,000	0
Senior unsecured notes, face amount	$ 400,000,000
Term Loan A $690 Million due August 2021
Debt Instrument [Line Items]
Stated interest rate (in percentage)	2.86%
Effective interest rate	3.42%
Secured Debt	$ 676,000,000	0
Senior unsecured notes, face amount	$ 690,000,000
Term Loan A $310 million Due August 2021
Debt Instrument [Line Items]
Effective interest rate	3.39%
Secured Debt	$ 304,000,000	0
Senior unsecured notes, face amount	$ 310,000,000
Term Loan B Due August 2023
Debt Instrument [Line Items]
Stated interest rate (in percentage)	3.36%
Effective interest rate	3.70%
Secured Debt	$ 1,110,000,000	0
Senior unsecured notes, face amount	$ 1,131,000,000
Notes Which Mature In July 2032
Debt Instrument [Line Items]
Stated interest rate (in percentage)	7.13%
Effective interest rate	7.43%
Unsecured Debt	$ 246,000,000	246,000,000
Senior unsecured notes, face amount	$ 250,000,000
Notes Which Mature In July 2033
Debt Instrument [Line Items]
Stated interest rate (in percentage)	5.50%
Effective interest rate	5.88%
Unsecured Debt	$ 158,000,000	158,000,000
Senior unsecured notes, face amount	300,000,000
Capital leases due on various dates through fiscal 2020
Debt Instrument [Line Items]
Other notes payable due on various dates through fiscal 2021	$ 3,000,000	$ 6,000,000
Minimum
Debt Instrument [Line Items]
Stated interest rate (in percentage)	0.00%
Minimum \| Capital leases due on various dates through fiscal 2020
Debt Instrument [Line Items]
Stated interest rate (in percentage)	0.00%
Maximum
Debt Instrument [Line Items]
Stated interest rate (in percentage)	5.50%
Maximum \| Capital leases due on various dates through fiscal 2020
Debt Instrument [Line Items]
Stated interest rate (in percentage)	5.94%

Debt - Additional Information (Detail)		11 Months Ended	12 Months Ended
Debt - Additional Information (Detail)	Aug. 16, 2016 USD ($)	Jan. 01, 2016 USD ($)	Dec. 30, 2016 USD ($)	Jan. 30, 2015 USD ($)
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,087,000,000	$ 3,339,000,000
Unamortized discount		5,000,000	46,000,000
Debt issuance costs, net		7,000,000	9,000,000
Derivatives		8,000,000	$ 29,000,000
Debt instrument, credit agreement, incremental available amount of funds, initial Value	$ 35,000,000
Debt instrument, annual fixed amount allowed per credit agreement	$ 250,000,000
Debt instrument, required prepayment amount equal to percentage of excess cash flow calculated based on secured leverage ratio greater than 2.75 (in percentage)	50.00%
Debt instrument, covenant, secured leverage ratio, for debt prepayment to be 50% of excess cash flow, minimum	2.75
Debt instrument, required prepayment amount equal to percentage of excess cash flow calculated based on secured leverage ratio between 2.0 and 2.75, (in percentage)	0.25
Debt instrument, covenant, secured leverage ratio, for debt prepayment to be 25% of excess cash flow, minimum	2.00
Debt instrument, required prepayment amount equal to ratio less than 2.0	$ 0
Notes Which Mature In December 2020
Debt Instrument [Line Items]
Stated interest rate (in percentage)			4.45%
Note payable, face amount			$ 450,000,000
Notes Which Mature In December 2040
Debt Instrument [Line Items]
Stated interest rate (in percentage)			5.95%
Note payable, face amount			$ 300,000,000
Notes Which Mature In July 2033
Debt Instrument [Line Items]
Stated interest rate (in percentage)			5.50%
Note payable, face amount			$ 300,000,000
Term Loan A $690 Million due August 2021
Debt Instrument [Line Items]
Stated interest rate (in percentage)			2.86%
Note payable, face amount			$ 690,000,000
Term Loan A Due August 2019
Debt Instrument [Line Items]
Stated interest rate (in percentage)			2.86%
Note payable, face amount			$ 400,000,000
Other Income, Net
Debt Instrument [Line Items]
Amortization of financing costs		1,000,000	$ 6,000,000
Senior Notes \| Notes Which Mature In December 2040
Debt Instrument [Line Items]
Stated interest rate (in percentage)			5.95%
Retired principle amount		14,000,000		$ 67,000,000
Note payable, face amount			$ 300,000,000
Gain (loss) on extinguishment of debt		3,000,000
Repayments of debt		14,000,000		64,000,000
Secured Debt
Debt Instrument [Line Items]
Debt issuance costs, gross	53,000,000
Secured Debt \| Term Loan A Due August 2019
Debt Instrument [Line Items]
Note payable, face amount			400,000,000
Repayments of debt			275,000,000
Write off of deferred debt issuance cost			$ 5,000,000
Unsecured Debt [Member] \| Notes Which Mature In July 2033
Debt Instrument [Line Items]
Stated interest rate (in percentage)			5.50%
Retired principle amount		23,000,000		116,000,000
Note payable, face amount			$ 300,000,000
Gain (loss) on extinguishment of debt		1,000,000		2,000,000
Repayments of debt		22,000,000		$ 111,000,000
Interest rate swaps \| Designated as Hedging Instrument \| Fair value interest rate swaps
Debt Instrument [Line Items]
Derivatives		$ 8,000,000	$ 3,000,000
Information Systems & Global Solutions Business of Lockheed Martin
Debt Instrument [Line Items]
Long-term debt	1,800,000,000
Information Systems & Global Solutions Business of Lockheed Martin \| Secured Debt \| Term Loan A $690 Million due August 2021
Debt Instrument [Line Items]
Note payable, face amount	$ 690,000,000
Minimum
Debt Instrument [Line Items]
Stated interest rate (in percentage)			0.00%
Maximum
Debt Instrument [Line Items]
Stated interest rate (in percentage)			5.50%
LIBOR \| Secured Debt \| Term Loan A
Debt Instrument [Line Items]
Variable interest rate (in percentage)			2.25%
LIBOR \| Secured Debt \| Term Loan B
Debt Instrument [Line Items]
Variable interest rate (in percentage)			2.75%
LIBOR \| Minimum \| Secured Debt \| Term Loan A
Debt Instrument [Line Items]
Variable interest rate (in percentage)	1.75%
LIBOR \| Maximum \| Secured Debt \| Term Loan A
Debt Instrument [Line Items]
Variable interest rate (in percentage)	2.25%

Debt (Schedule of Maturities of Notes Payable and Long-Term Debt) (Detail) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Note Payable and Long-Term Debt
2017	$ 62
2018	82
2019	190
2020	593
2021	711
2022 and thereafter	1,704
Total principal payments	3,342
Less: unamortized debt discount and issuance costs	55
Total notes payable and long-term debt	$ 3,287	$ 1,081

Debt (Revolving Credit Facility) (Detail)	12 Months Ended
Debt (Revolving Credit Facility) (Detail)	Dec. 30, 2016 USD ($)	Aug. 16, 2016 USD ($)	Jan. 01, 2016 USD ($)
Debt Instrument [Line Items]
Amount outstanding	$ 0		$ 0
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 earnings before interest taxes depreciation and amortization numerator maximum, until Feb 16, 2018	4.75
Ratio of consolidated funded debt to earnings before interest taxes depreciation and amortization numerator maximum, from Feb 16, 2018 to Feb 16, 2019	4.25
Ratio of consolidated funded debt to earnings before interest taxes depreciation and amortization numerator, after Feb 16, 2019	3.75
Old Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity	$ 500,000,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity		$ 750,000,000
Debt issuance costs, gross		$ 15,000,000

Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, value	$ 998	$ 1,068	$ 1,595
Other comprehensive (loss) income	3	12	(5)
Reclassification from accumulated other comprehensive loss		(8)
Balance, value	1,068	3,147	998
Accumulated other comprehensive loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, value	(11)	(8)	(6)
Balance, value	(8)	(4)	(11)
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, value	1	0	2
Other comprehensive (loss) income	(1)	(7)	(1)
Reclassification from accumulated other comprehensive loss		0
Balance, value	0	(7)	1
Unrecognized net (loss) income on derivative instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, value	(5)	(4)	(5)
Other comprehensive (loss) income	1	16	0
Reclassification from accumulated other comprehensive loss		(2)
Balance, value	(4)	10	(5)
Pension liability adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance, value	(7)	(4)	(3)
Other comprehensive (loss) income	3	3	(4)
Reclassification from accumulated other comprehensive loss		(6)
Balance, value	$ (4)	$ (7)	$ (7)

Earnings (Loss) Per Share (EPS) (Schedule of Basic and Diluted EPS) (Detail) - $ / shares	3 Months Ended								11 Months Ended		12 Months Ended
	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Oct. 02, 2015	Jul. 03, 2015	Apr. 03, 2015	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Basic:
Income (loss) from continuing operations attributable to Leidos common stockholders (usd per share)									$ 3.33	$ (4.36)	$ 2.39	$ (4.46)
Discontinued operations, net of taxes (usd per share)									(0.01)	(0.15)	0.00	0.10
Net income (loss) attributable to Leidos common stockholders (usd per share)	$ 0.39	$ 0.81	$ 0.56	$ 0.74	$ 1.76	$ 0.68	$ 0.51	$ 0.32	3.32	(4.51)	2.39	(4.36)
Diluted:
Income (loss) from continuing operations attributable to Leidos common stockholders (usd per share)									3.28	(4.36)	2.35	(4.46)
Discontinued operations, net of taxes (usd per share)									(0.01)	(0.15)	0.00	0.10
Net income (loss) attributable to Leidos common stockholders (usd per share)	$ 0.39	$ 0.80	$ 0.55	$ 0.72	$ 1.72	$ 0.67	$ 0.50	$ 0.31	$ 3.27	$ (4.51)	$ 2.35	$ (4.36)

- Definition

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

+ References + Details

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

Earnings (Loss) Per Share (EPS) (Reconciliation of Weighted Average Number of Shares Outstanding) (Details) shares in Millions	4 Months Ended	11 Months Ended		12 Months Ended
	Jan. 31, 2014	Jan. 01, 2016 shares	Jan. 02, 2015 shares	Dec. 30, 2016 shares	Jan. 30, 2015 shares
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding		73	74	102	74
Dilutive common share equivalents—stock options and other stock awards		1	0	2	0
Diluted weighted average number of shares outstanding		74	74	104	74
Reverse stock split	0.25

Earnings (Loss) Per Share (EPS) (Schedule of Stock-Based Awards Excluded from Weighted Average Shares Outstanding) (Detail) - shares shares in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Jan. 30, 2015
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock based awards	1	4	4
Outstanding Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock based awards	0	3	3

Earnings (Loss) Per Share (EPS) (Shares Repurchased) (Details) - USD ($) shares in Millions	3 Months Ended	11 Months Ended		12 Months Ended
	May 02, 2014	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015	Jan. 31, 2014
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased and retired					6.3
Amount paid to repurchase outstanding shares		$ 118,000,000	$ 213,000,000	$ 24,000,000	$ 215,000,000
Value of initial shares repurchased		118,000,000		$ 24,000,000	215,000,000
Third Accelerated Share Repurchase
Equity, Class of Treasury Stock [Line Items]
Agreement to repurchase shares, amount		$ 100,000,000
Number of shares repurchased and retired		2.4
Amount paid to repurchase outstanding shares		$ 100,000,000
Second Accelerated Share Repurchase
Equity, Class of Treasury Stock [Line Items]
Agreement to repurchase shares, amount					$ 200,000,000
Second Accelerated Share Repurchase, Initial Delivery
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
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
Number of shares repurchased and retired	1.0
Value of initial shares repurchased	$ 45,000,000

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016
2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of stock awards vest or exercisable after three years		20.00%
Percentage of stock awards vest or exercisable after four years		40.00%
Percentage of stock awards vest or exercisable, every year		25.00%
Vesting period (in years)		4 years
Stock reserved for future issuance		5,800,000
Percentage of stock compensation plans awards that vest after January 1, 2006		100.00%
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 reserved for future issuance (in shares)		5,000,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefits from stock options exercised	$ 1	$ 1
Fair value of stock surrendered in payment of the exercise price for stock options exercised	$ 3	$ 4
Stock Options \| 2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years

Stock-Based Compensation (Schedule of Stock-Based Compensation and Related Tax Benefits Recognized) (Detail) - USD ($) $ in Millions	3 Months Ended			11 Months Ended	12 Months Ended
	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefits recognized from stock-based compensation	$ 1	$ 3	$ 4	$ 12	$ 14	$ 16
Continuing Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense				$ 30	$ 35	$ 42

Stock-Based Compensation (Stock options) (Details) - USD ($) $ in Millions	4 Months Ended	7 Months Ended	11 Months Ended	12 Months Ended
	Dec. 30, 2016	Aug. 15, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 8 months 12 days	4 years 9 months 18 days	4 years 8 months 12 days		4 years 8 months 12 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures	$ 5			$ 5
Expected weighted-average period of recognition, years				2 years 4 months 24 days
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				10 years
2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)				4 years
2006 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				7 years
Vesting period (in years)				4 years
Outside Directors \| 2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)				1 year

Stock-Based Compensation (Schedule of Weighted Average Grant-Date Fair Value and Assumptions Used) (Detail) - $ / shares	4 Months Ended	7 Months Ended	11 Months Ended	12 Months Ended
	Dec. 30, 2016	Aug. 15, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (usd per share)	$ 10.33	$ 9.54	$ 6.72		$ 6.15
Expected term (in years)	4 years 8 months 12 days	4 years 9 months 18 days	4 years 8 months 12 days		4 years 8 months 12 days
Expected volatility (in percentage)	37.90%	29.90%	24.50%		25.10%
Risk-free interest rate (in percentage)	1.20%	1.30%	1.40%		1.60%
Dividend yield (in percentage)	2.70%	2.50%	2.90%		2.90%
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (usd per share)			$ 45.00	$ 45.80
Expected volatility (in percentage)			27.67%	31.73%
Risk-free interest rate (in percentage)			0.82%	1.01%

Stock-Based Compensation (Special dividend) (Details) $ in Millions			1 Months Ended	12 Months Ended
	Aug. 22, 2016 USD ($)	Aug. 16, 2016 shares	Aug. 31, 2016 shares	Dec. 30, 2016 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in strike price by factor			0.74
Increase in number of shares issuable upon exercise of each option (in shares) \| shares			1.35
Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, outstanding, period increase (decrease) \| shares		900,000
Special dividend declared \| $	$ 993			$ 993
Additional paid-in capital \| Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued \| $	$ 29			$ 29

Stock-Based Compensation (Schedule of Stock Option Activity) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	4 Months Ended	11 Months Ended	12 Months Ended
	Jan. 31, 2014	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Shares of stock under stock options
Outstanding, beginning balance (in shares)		3.6	2.4	4.5
Options granted (in shares)		0.6	0.6	0.7
Special dividend adjustments (in shares)			0.9
Options forfeited or expired (in shares)		(0.9)	(0.2)	(1.5)
Options exercised (in shares)		(0.9)	(0.4)	(0.1)
Outstanding, ending balance (in shares)	4.5	2.4	3.3	3.6
Exercisable at year end (in shares)			1.6
Vested and expected to vest in the future as of year end (in shares)			3.1
Weighted average exercise price
Outstanding, beginning balance (in usd per share)		$ 38.50	$ 38.21	$ 40.32
Options granted (in usd per share)		42.64	43.56	37.25
Options forfeited or expired (in usd per share)		42.03	34.98	43.90
Options exercised (in usd per share)		38.53	34.11	34.89
Outstanding, ending balance (in usd per share)	$ 40.32	$ 38.21	29.77	$ 38.50
Exercisable at year end (in usd per share)			28.19
Vested and expected to vest in the future as of year end			$ 29.58
Weighted average remaining contractual term and Aggregate intrinsic value
Weighted average remaining contractual term, Outstanding (in years)	3 years 9 months 18 days	4 years 6 months	4 years 1 month	4 years
Weighted average remaining contractual term, Exercisable at year end (in years)			3 years 1 month
Weighted average remaining contractual term, Vested and expected to vest (in years)			4 years 1 month
Aggregate intrinsic value, Outstanding, beginning balance		$ 14	$ 43	$ 25
Aggregate intrinsic value, Outstanding, Option Exercised		9	5	1
Aggregate intrinsic value, Outstanding, ending balance	$ 25	$ 43	70	$ 14
Aggregate intrinsic value, Exercisable			37
Aggregate intrinsic value, Outstanding, Vested and expected to vest			$ 67

Stock-Based Compensation (Schedule of Vesting Stock Award Activity) (Detail) - $ / shares shares in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Shares of stock under stock awards
Shares, beginning balance (in shares)	3.0	2.3	3.7
Awards granted (in shares)	0.5	1.5	0.8
Awards forfeited (in shares)	(0.4)	(0.2)	(0.5)
Awards vested (in shares)	(0.8)	(1.1)	(1.0)
Shares, ending balance (in shares)	2.3	2.5	3.0
Weighted average grant- date fair value
Weighted average grant-date fair value, Shares, beginning balance (in dollars per share)	$ 38.51	$ 38.97	$ 39.58
Weighted average grant-date fair value, Awards granted (in dollars per share)	42.95	41.45	37.06
Weighted average grant-date fair value, Awards forfeited (in dollars per share)	40.10	40.88	39.05
Weighted average grant-date fair value, Awards vested (in dollars per share)	40.05	38.91	41.08
Weighted average grant-date fair value, Shares, ending balance (in dollars per share)	$ 38.97	$ 40.39	$ 38.51

Stock-Based Compensation (Restricted Stock) (Details) - USD ($) shares in Millions, $ in Millions		11 Months Ended	12 Months Ended
	Aug. 16, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vesting awards that vested		$ 29	$ 43	$ 34
2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Group One \| 2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity consideration for replacement awards	$ 9		$ 9
Restricted Stock Units (RSUs) \| Information Systems & Global Solutions Business of Lockheed Martin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during the period (in shares)			0.6
Stock issued during the period			$ 23
Compensation not yet recognized			$ 12
Expected weighted-average period of recognition, years			3 years
Vesting Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures			$ 37
Expected weighted-average period of recognition, years			2 years

Stock-Based Compensation (Schedule of Performance-Based Stock Award Activity) (Detail) $ / shares in Units, $ in Millions	4 Months Ended	7 Months Ended	11 Months Ended	12 Months Ended
	Dec. 30, 2016 USD ($) $ / shares shares	Aug. 15, 2016 $ / shares shares	Jan. 01, 2016 USD ($) $ / shares shares	Dec. 30, 2016 USD ($) $ / shares shares	Jan. 30, 2015 USD ($) $ / shares shares	Sep. 27, 2013
Expected number of shares of stock to be issued under performance-based stock awards
Shares, beginning balance (in shares) \| shares		2,300,000	3,000,000	2,300,000	3,700,000
Awards canceled/forfeited (in shares) \| shares			(400,000)	(200,000)	(500,000)
Awards granted (in shares) \| shares			500,000	1,500,000	800,000
Awards vested (in shares) \| shares			(800,000)	(1,100,000)	(1,000,000)
Shares, ending balance (in shares) \| shares	2,500,000		2,300,000	2,500,000	3,000,000
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 (in dollars per share)		$ 38.97	$ 38.51	$ 38.97	$ 39.58
Weighted average grant-date fair value, Awards granted (in dollars per share)			42.95	41.45	37.06
Weighted average grant-date fair value, Awards forfeited/canceled (in dollars per share)			40.10	40.88	39.05
Weighted average grant-date fair value, Awards vested (in dollars per share)			40.05	38.91	41.08
Weighted average grant-date fair value, Shares, ending balance (in dollars per share)	$ 40.39		38.97	$ 40.39	38.51
Weighted average grant-date fair value (usd per share)	$ 10.33	$ 9.54	$ 6.72		$ 6.15
Expected volatility (in percentage)	37.90%	29.90%	24.50%		25.10%
Risk-free interest rate (in percentage)	1.20%	1.30%	1.40%		1.60%
Fair value of vesting awards that vested \| $			$ 29	$ 43	$ 34
Performance Shares
Expected number of shares of stock to be issued under performance-based stock awards
Shares, beginning balance (in shares) \| shares		200,000	100,000	200,000	100,000
Awards canceled/forfeited (in shares) \| shares			(100,000)
Awards granted (in shares) \| shares			200,000	200,000	100,000
Awards vested (in shares) \| shares			0	0	(100,000)
Shares, ending balance (in shares) \| shares	400,000		200,000	400,000	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 (in dollars per share)		$ 43.35	$ 37.70	$ 43.35	$ 36.65
Weighted average grant-date fair value, Awards granted (in dollars per share)			44.30	45.62	37.64
Weighted average grant-date fair value, Awards forfeited/canceled (in dollars per share)			43.49
Weighted average grant-date fair value, Awards vested (in dollars per share)					36.69
Weighted average grant-date fair value, Shares, ending balance (in dollars per share)	$ 44.44		43.35	$ 44.44	37.70
Performance period (in years)				3 years
Maximum Percentage That Will Ultimately Vest For Shares Provided Under Long Term Performance Based Incentive Equity Awards Based On Target Amount Stated In Agreement				150.00%
Weighted average grant date fair value of the awards granted, excluding dividend equivalents (usd per share)			43.78	$ 45.83	$ 36.88
Weighted average grant-date fair value (usd per share)			$ 45.00	$ 45.80
Expected volatility (in percentage)			27.67%	31.73%
Risk-free interest rate (in percentage)			0.82%	1.01%
Weighted average grant-date fair value, Awards granted (in dollars per share)			$ 42.61	$ 46.54
2006 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Performance period (in years)				4 years
2006 Equity Incentive Plan \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unrecognized compensation cost, net of estimated forfeitures \| $	$ 7			$ 7
Expected weighted-average period of recognition, years				1 year 7 months 6 days
Fair value of vesting awards that vested \| $			$ 2		$ 2
Scenario, Adjustment
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock issued to Leidos shareholder upon divestiture of SAIC, ratio						1.4523

Income Taxes (Schedule of Provision for Income Taxes) (Detail) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Income Tax Disclosure [Abstract]
Current, Federal and foreign	$ 71		$ 88	$ 16
Current, State	14		16	(6)
Deferred, Federal and foreign	20		(29)	26
Deferred, State	7		(3)	11
Total	$ 112	$ 67	$ 72	$ 47

Income Taxes (Schedule of Reconciliation of Provision for Income Taxes) (Detail) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Income Tax Disclosure [Abstract]
Amount computed at the statutory federal income tax rate (35%)	$ 124		$ 111	$ (99)
State income taxes, net of federal tax benefit	14		8	3
Taxable conversion of subsidiary	0		0	(116)
Change in valuation allowance for deferred tax assets	(21)		(8)	105
Change in accruals for uncertain tax positions	(4)		1	2
Research and development credits	(4)		(4)	(4)
Dividends paid to employee stock ownership plan	(3)		(38)	(4)
Capitalized transaction costs	0		7	0
Excess tax benefits from stock-based compensation	0		(8)	0
Non-deductible goodwill	0		0	156
Other	6		3	4
Total	$ 112	$ 67	$ 72	$ 47
Effective income tax rate	31.50%		22.60%	(16.60%)

Income Taxes (Schedule Of Deferred Tax Assets (Liabilities)) (Detail) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Income Tax Disclosure [Abstract]
Accrued vacation and bonuses	$ 89	$ 45
Investments	3	3
Deferred compensation	38	39
Vesting stock awards	23	21
Credits and net operating losses carryovers	35	15
Employee benefit contributions	3	0
Capital loss carryover	81	91
Reserves	103	31
Deferred rent and tenant allowances	16	14
Other	17	13
Total deferred tax assets	408	272
Valuation allowance	(102)	(102)
Deferred tax assets, net of valuation allowance	306	170
Deferred revenue	(42)	(36)
Fixed asset basis differences	(11)	(1)
Purchased intangible assets	(748)	(138)
Partnership interest	(14)	(11)
Employee benefit contributions	0	(1)
Other	(15)	(9)
Total deferred tax liabilities	(830)	(196)
Net deferred tax liabilities	$ (524)	$ (26)

Income Taxes (Schedule of Net Deferred Tax Assets) (Detail) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Income Tax Disclosure [Abstract]
Deferred income taxes	$ 16	$ 8
Net non-current deferred tax liabilities	(540)	(34)
Net deferred tax liabilities	$ (524)	$ (26)

Income Taxes (Schedule of Changes in Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at beginning of year	$ 17	$ 11	$ 14
Additions for tax positions related to current year	5	1	2
Additions for tax positions related to prior years	4	4	11
Reductions for tax positions related to prior years	(15)	(7)	(5)
Settlements with taxing authorities	0	0	(1)
Lapse of statute of limitations	0	0	(4)
Unrecognized tax benefits at end of year	11	9	17
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$ 7	$ 4	$ 5

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	11 Months Ended		12 Months Ended
	Aug. 01, 2014	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Income Taxes [Line Items]
Effective income tax rate (in percentage)				35.00%	35.00%
Goodwill impairment charges	$ 486	$ 0	$ 486	$ 0	$ 486
Tax benefit due to conversion of subsidiary to LLC from Partnership					18
Unrecognized tax benefits accrued interest and penalties		1		1	2
Liabilities for uncertain tax positions		12		10	19
Liabilities for uncertain tax positions, long-term		$ 5		5	$ 6
Amount of reasonably possible resolution of reviews				4
Capital Loss Carryforward
Income Taxes [Line Items]
State tax credit carryforwards				206
State
Income Taxes [Line Items]
Net operating loss carryforwards				69
State tax credit carryforwards				12
State tax credits				6
Foreign Tax Authority
Income Taxes [Line Items]
Net operating loss carryforwards				38
Expiration in Calender Year 2018 \| Capital Loss Carryforward
Income Taxes [Line Items]
State tax credit carryforwards				68
Expiration in Calender Year 2018 \| Domestic Tax Authority
Income Taxes [Line Items]
Net operating loss carryforwards				26
Expiration in Calender Year 2018 \| State
Income Taxes [Line Items]
Net operating loss carryforwards				$ 184

Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Pension and Other Postretirement Benefits Disclosure [Line Items]
Maximum percentage certain employees can defer from salary for certain plans		20.00%
Projected benefit obligation	$ 106	$ 115
Fair value of plan assets	108	109
Funded status of plan	2	(6)
Deferred Compensation Plans
Pension and Other Postretirement Benefits Disclosure [Line Items]
Compensation expense	$ 56	$ 68	$ 62

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Dec. 30, 2016 USD ($)
Disclosure Leases Additional Information [Abstract]
Capital lease obligations	$ 3
Remaining term of capital lease	3 years

Leases (Schedule of Rental Expense for Facilities and Equipment) (Detail) - USD ($) $ in Millions	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
Leases [Abstract]
Gross rental expense	$ 83	$ 107	$ 107
Less lease and sublease income	(8)	(2)	(9)
Net rental expense	$ 75	$ 105	$ 98

Leases (Schedule of Future Minimum Lease Commitments and Sublease Receipts under Non-Cancelable Operating Leases) (Detail) $ in Millions	Dec. 30, 2016 USD ($)
Operating lease Commitment
2017	$ 142
2018	106
2019	83
2020	58
2021	41
2022 and thereafter	92
Total	522
Sublease receipts
2017	4
2018	2
2019	1
2020	1
2021	1
2022 and thereafter	0
Total	$ 9

Leases (Sale and Leaseback Agreement) (Details) $ in Millions	1 Months Ended	3 Months Ended	11 Months Ended		12 Months Ended
	Dec. 31, 2015 USD ($)	Jan. 01, 2016 USD ($)	Jan. 01, 2016 USD ($)	Jan. 02, 2015 USD ($)	Dec. 30, 2016 USD ($)	Jan. 30, 2015 USD ($)	May 03, 2013 a Building
Sale Leaseback Transaction [Line Items]
Gain (loss) on sale of properties		$ 82	$ 82	$ 0	$ 0	$ 0
Write off of property disposed	$ 40		$ 40
May 2013 Sales Lease Back Agreement
Sale Leaseback Transaction [Line Items]
Area of land \| a							18
Number of real estate properties \| Building							4
Amendment to the Original Purchase and Sale Agreement
Sale Leaseback Transaction [Line Items]
Proceeds from real estate financing transaction	95
Proceeds from sale	75
Allocated consideration to Note parable and Other long-term liabilities	20
Discount on proceeds	5
Write off of financing note payable	35
Write off of other long term liabilities	5
Lease termination fees	8
Selling costs	$ 5
Leidos \| Purchaser of the Property \| Prepaid Before December 17, 2018
Sale Leaseback Transaction [Line Items]
Percentage of accrued interest (in percentage)	80.00%
Leidos \| Purchaser of the Property \| Prepaid Prior to Maturity
Sale Leaseback Transaction [Line Items]
Percentage of accrued interest (in percentage)	60.00%
Notes Payable \| Leidos \| Purchaser of the Property
Sale Leaseback Transaction [Line Items]
Stated interest rate (in percentage)	0.50%
Term of debt instrument (in years)	4 years
Notes Payable \| Leidos \| Purchaser of the Property \| Floor \| 30 day LIBOR
Sale Leaseback Transaction [Line Items]
Variable interest rate (in percentage)					0.25%

Supplementary Cash Flow Information (Detail) - USD ($) $ in Millions	11 Months Ended		12 Months Ended
	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Supplemental Cash Flow Information [Abstract]
Dividends declared and other	$ 2	$ 25	$ 21	$ 0
Capital lease obligations	6	0	0	0
Promissory note, net received for disposition of business	72	0	0	0
Promissory note, net received from a real estate sale	20	0	0	0
Stock issued for the IS&GS Business acquisition	0	0	2,938	0
Cash paid for interest	50	74	90	74
Cash paid for income taxes, net of refunds (including discontinued operations)	$ 31	$ 22	$ 47	$ 55

Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended								11 Months Ended		12 Months Ended
	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Oct. 02, 2015	Jul. 03, 2015	Apr. 03, 2015	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 2,575	$ 1,868	$ 1,288	$ 1,312	$ 1,281	$ 1,302	$ 1,257	$ 1,246	$ 4,712	$ 4,690	$ 7,043	$ 5,063
Operating income (loss)	$ 152	$ 101	$ 75	$ 89	$ 102	$ 94	$ 64	$ 38	$ 320	$ (191)	$ 417	$ (214)
Operating Income (Loss) Margin									6.80%		5.90%	(4.20%)
Amortization of intangible assets									$ 8		$ 84	$ 15
National Security Solutions
Segment Reporting Information [Line Items]
Revenues									3,210		3,610	3,594
Operating income (loss)									$ 263		$ 292	$ 286
Operating Income (Loss) Margin									8.20%		8.10%	8.00%
Health and Infrastructure
Segment Reporting Information [Line Items]
Revenues									$ 1,496		$ 1,463	$ 1,485
Operating income (loss)									$ 76		$ 162	$ (472)
Operating Income (Loss) Margin									5.10%		11.10%	(31.80%)
Amortization of intangible assets									$ 8		$ 5	$ 15
Information Systems & Global Solutions
Segment Reporting Information [Line Items]
Revenues									0		1,971	0
Operating income (loss)									$ 0		$ 114	$ 0
Operating Income (Loss) Margin									0.00%		5.80%	0.00%
Amortization of intangible assets									$ 0		$ 79
Corporate and Other
Segment Reporting Information [Line Items]
Revenues									6		(1)	$ (16)
Operating income (loss)									$ (19)		$ (151)	$ (28)

Business Segment Information - Additional Information (Detail)	12 Months Ended
	Dec. 30, 2016
Segment Reporting [Abstract]
Percentage of revenues contributed by external customers to total revenues	10.00%

Business Segments (Schedule of Total Revenue Percentages Contributable to Specific Government Agencies) (Detail) - Government Contracts Concentration Risk	11 Months Ended	12 Months Ended
	Jan. 01, 2016	Dec. 30, 2016	Jan. 30, 2015
US DoD
Segment Reporting Information [Line Items]
Percentage of sales	64.00%	56.00%	67.00%
U.S. Government
Segment Reporting Information [Line Items]
Percentage of sales	76.00%	81.00%	79.00%
U.S. Army
Segment Reporting Information [Line Items]
Percentage of sales	14.00%	14.00%	16.00%
Maryland Procurement Office
Segment Reporting Information [Line Items]
Percentage of sales	10.00%	7.00%	10.00%

Legal Proceedings - Additional Information (Detail)	1 Months Ended		3 Months Ended	12 Months Ended
Legal Proceedings - Additional Information (Detail)	Jun. 30, 2014 plaintiff	May 31, 2014 plaintiff	Apr. 30, 2012 executive LegalMatter	Dec. 30, 2016 USD ($)	Aug. 16, 2016 USD ($)	Jan. 01, 2016 USD ($)	Nov. 10, 2015 USD ($)	Jul. 13, 2013 USD ($)	Nov. 30, 2008 USD ($)
Legal Proceedings [Line Items]
Amount outstanding				$ 0		$ 0
Securities Class Actions
Legal Proceedings [Line Items]
Number of lawsuits \| LegalMatter			3
Number of lawsuits, withdrawn \| LegalMatter			1
Number of lawsuits, consolidated \| LegalMatter			2
Number of former CEO's \| executive			2
Greek Government Contract
Legal Proceedings [Line Items]
Arbitral award				20,000,000				$ 41,000,000
Recorded losses				123,000,000
Accounts and Notes Receivable, Net				1,000,000
Greek Government Contract \| Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Letter of credit available to the company				15,000,000
Greek Government Contract \| Standby Letters of Credit
Legal Proceedings [Line Items]
Letter of credit available to the company				17,000,000
Greek Government Contract \| Invoice For Undisputed Portion Of Contract
Legal Proceedings [Line Items]
Contracts receivable									$ 14,000,000
Greek Government Contract \| Value Added Taxes
Legal Proceedings [Line Items]
Receivables relating to value added taxes				26,000,000
Greek Government Contract \| Letters of Credit Related System Support and Maintenance \| Letters of Credit Relating to Delivery
Legal Proceedings [Line Items]
Amount outstanding				4,000,000
MSA Venture
Legal Proceedings [Line Items]
Estimate of loss					$ 64,000,000		$ 64,000,000
Loss contingency accrual				39,000,000
Data Privacy Litigation
Legal Proceedings [Line Items]
Number of plaintiffs \| plaintiff	2	2
Lockheed Martin \| MSA Venture
Legal Proceedings [Line Items]
Percentage of damages covered, between $38 million and $64 million settlement amount					100.00%
Percentage of damages covered, in excess of $64 million settlement amount					50.00%
Leidos \| MSA Venture
Legal Proceedings [Line Items]
Estimate of loss					$ 38,000,000
Information Systems & Global Solutions Business of Lockheed Martin \| MSA Venture
Legal Proceedings [Line Items]
Indemnification assets, amount as of acquisition date				$ 1,000,000

Other Commitments and Contingencies - Additional Information (Detail) $ in Millions				1 Months Ended	11 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($)	Feb. 03, 2016 USD ($) patent	Dec. 17, 2014 USD ($)	Nov. 30, 2012 USD ($) patent	Jan. 01, 2016 USD ($)	Jan. 02, 2015 USD ($)	Dec. 30, 2016 USD ($)	Jan. 30, 2015 USD ($)
Other Commitments And Contingencies [Line Items]
Comprehensive income attributable to non-controlling interest, net of taxes					$ 0	$ 0	$ 2	$ 0
Estimated accruals for claims incurred but not yet reported					16		27
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Amount outstanding							71
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds							$ 131
Virnet X Inc
Other Commitments And Contingencies [Line Items]
Number of patents infringed \| patent				2
Litigation settlement	$ 302	$ 626	$ 23	$ 368
Proceeds from legal settlements					$ 10
Patents found infringed upon, number \| patent		4
Leidos
Other Commitments And Contingencies [Line Items]
Percentage of settlement		25.00%

Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								11 Months Ended		12 Months Ended
	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Oct. 02, 2015	Jul. 03, 2015	Apr. 03, 2015	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 2,575	$ 1,868	$ 1,288	$ 1,312	$ 1,281	$ 1,302	$ 1,257	$ 1,246	$ 4,712	$ 4,690	$ 7,043	$ 5,063
Operating income	152	101	75	89	102	94	64	38	320	(191)	417	(214)
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	60	92	41	53					243	(323)	246	(330)
Income from continuing operations					127	49	37	23
Net income	60	92	41	53					242	(334)	246	(323)
Less: net income attributable to non-controlling interest, net of taxes									0	0	2	0
Income from discontinued operations					0	0	0	18	(1)	(11)	0	7
Net income (loss) attributable to Leidos common stockholders	$ 59	$ 91	$ 41	$ 53	$ 127	$ 49	$ 37	$ 41	$ 242	$ (334)	$ 244	$ (323)
Basic earnings (loss) per share ( usd per share)	$ 0.39	$ 0.81	$ 0.56	$ 0.74	$ 1.76	$ 0.68	$ 0.51	$ 0.32	$ 3.32	$ (4.51)	$ 2.39	$ (4.36)
Diluted earnings per share attributable to Leidos common stockholders( usd per share)	$ 0.39	$ 0.80	$ 0.55	$ 0.72	$ 1.72	$ 0.67	$ 0.50	$ 0.31	$ 3.27	$ (4.51)	$ 2.35	$ (4.36)

Schedule of Selected Quarterly Financial Data (Footnotes) (Detail) - USD ($) $ in Millions	3 Months Ended						11 Months Ended		12 Months Ended
	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Apr. 01, 2016	Jan. 01, 2016	Apr. 03, 2015	Jan. 01, 2016	Jan. 02, 2015	Dec. 30, 2016	Jan. 30, 2015
Quarterly Financial Information [Line Items]
Acquisition and integration costs	$ 22	$ 44	$ 15	$ 9			$ 0	$ 0	$ 90	$ 0
Charges	$ 8	5	1
Intangible asset impairment										41
Gain (Loss) on Sale of Properties					$ 82		82	$ 0	0	0
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount		$ 1	$ 3	$ 4			$ 12		$ 14	$ 16
Plainfield Renewal Energy Holdings LLC
Quarterly Financial Information [Line Items]
Asset impairment charges						$ 40

Subsequent Events (Details) - Term Loan B Due August 2023 - USD ($)	Feb. 23, 2017	Dec. 30, 2016
Subsequent Event [Line Items]
Debt instrument, face amount		$ 1,131,000,000
Stated interest rate (in percentage)		3.36%
Subsequent Event \| Secured Debt
Subsequent Event [Line Items]
Debt instrument, face amount	$ 1,100,000,000
Debt Instrument, Decrease in Basis Points	50.00%
Stated interest rate (in percentage)	2.25%