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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 28, 2018	Feb. 11, 2019	Jun. 29, 2018
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 28, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	LDOS
Entity Registrant Name	Leidos Holdings, Inc.
Entity Central Index Key	0001336920
Current Fiscal Year End Date	--12-28
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		146,160,889
Entity Public Float			$ 8,841,791,254

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
ASSETS
Cash and cash equivalents	$ 327	$ 390
Receivables, net	1,877	1,831
Other current assets	543	453
Assets held for sale	92	0
Total current assets	2,839	2,674
Property, plant and equipment, net	237	232
Intangible assets, net	652	856
Goodwill	4,860	4,974
Other assets	182	254
Total assets	8,770	8,990
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	1,476	1,639
Accrued payroll and employee benefits	473	487
Dividends payable	12	17
Income taxes payable	3	4
Long-term debt, current portion	72	55
Liabilities held for sale	23	0
Total current liabilities	2,059	2,202
Long-term debt, net of current portion	3,052	3,056
Deferred tax liabilities	170	220
Other long-term liabilities	178	129
Commitments and contingencies (Notes 22, 25 and 26)
Stockholder's equity:
Preferred stock, $.0001 par value,10 million shares authorized and no shares issued and outstanding at December 28, 2018, and December 29, 2017	0	0
Common stock, $.0001 par value, 500 million shares authorized, 146 million and 151 million shares issued and outstanding at December 28, 2018, and December 29, 2017, respectively	0	0
Additional paid-in capital	2,966	3,344
Accumulated earnings (deficit)	372	(7)
Accumulated other comprehensive (loss) income	(30)	33
Total stockholder's equity	3,308	3,370
Non-controlling interest	3	13
Total equity	3,311	3,383
Total liabilities and stockholders' equity	$ 8,770	$ 8,990

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 28, 2018	Dec. 29, 2017
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)	146,000,000	151,000,000
Common stock, shares outstanding (shares)	146,000,000	151,000,000

Consolidated Statements Of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements Of Income - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Income Statement [Abstract]
Revenues	$ 10,194	$ 10,170	$ 7,043
Cost of revenues	8,690	8,738	6,103
Selling, general and administrative expenses	729	737	422
Bad debt expense	0	10	3
Acquisition, integration and restructuring costs	37	139	104
Asset impairment charges	7	0	4
Equity earnings of non-consolidated subsidiaries	(18)	(13)	(10)
Operating income	749	559	417
Non-operating expense:
Interest expense, net	(138)	(140)	(86)
Other expense, net	(1)	(26)	(13)
Income before income taxes	610	393	318
Income tax expense	(28)	(29)	(72)
Net income	582	364	246
Less: net income (loss) attributable to non-controlling interest	1	(2)	2
Net income attributable to Leidos common stockholders	$ 581	$ 366	$ 244
Earnings per share:
Basic (usd per share)	$ 3.85	$ 2.41	$ 2.39
Diluted (usd per share)	$ 3.80	$ 2.38	$ 2.35

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 582	$ 364	$ 246
Foreign currency translation adjustments	(61)	24	(7)
Unrecognized (loss) gain on derivative instruments	(10)	4	14
Pension adjustments	(1)	9	(3)
Total other comprehensive (loss) income, net of taxes	(72)	37	4
Comprehensive income	510	401	250
Less: comprehensive income (loss) attributable to non-controlling interest	1	(2)	2
Comprehensive income attributable to Leidos common stockholders	$ 509	$ 403	$ 248

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Consolidated Statements Of 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) income	Non-controlling interest
Balance, shares at Jan. 01, 2016			72
Balance, value at Jan. 01, 2016	$ 1,068	$ 1,068		$ 1,353	$ (277)	$ (8)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	246	244			244		2
Other comprehensive income (loss), net of taxes	4	4				4
Issuances of stock (less forfeitures), shares			1
Issuances of stock (less forfeitures)	36	36		36
Repurchases of stock and other, shares			0
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
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
Balance, value at Dec. 30, 2016	3,147	3,135		3,316	(177)	(4)	12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	364	366			366		(2)
Other comprehensive income (loss), net of taxes	37	37				37
Issuances of stock (less forfeitures), shares			1
Issuances of stock (less forfeitures)	16	16		16
Repurchases of stock and other	(31)	(31)		(31)
Dividends	(196)	(196)			(196)
Stock-based compensation	43	43		43
Stock issued for the IS&GS Business acquisition	0
Equity interest acquired	3						3
Balance, shares at Dec. 29, 2017			151
Balance, value at Dec. 29, 2017	3,383	3,370		3,344	(7)	33	13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	582	581			581		1
Other comprehensive income (loss), net of taxes	(72)	(72)				(72)
Issuances of stock (less forfeitures), shares			1
Issuances of stock (less forfeitures)	17	17		17
Repurchases of stock and other, shares			(6)
Repurchases of stock and other	(438)	(438)		(438)
Dividends	(194)	(194)			(194)
Stock-based compensation	44	44		44
Stock issued for the IS&GS Business acquisition	0
Purchase of a non-controlling interest	(11)	(1)		(1)			(10)
Other	(1)						(1)
Balance, shares at Dec. 28, 2018			146
Balance, value at Dec. 28, 2018	$ 3,311	$ 3,308		$ 2,966	$ 372	$ (30)	$ 3

Consolidated Statements Of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividend per share (usd per share)	$ 1.28	$ 1.28	$ 1.28
Special cash dividend (usd per share)			$ 13.64

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Cash flows from operations:
Net income	$ 582	$ 364	$ 246
Adjustments to reconcile net income to net cash provided by continuing operations:
Depreciation and amortization	257	336	122
Amortization of equity method investments	10	14	0
Stock-based compensation	44	43	35
Asset impairment charges	7	0	4
Non-cash interest expense	6	12	4
Promissory note impairment	0	33	0
Bad debt expense	0	10	3
Other	2	9	(7)
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	(58)	(191)	123
Other current assets	(73)	(76)	(98)
Accounts payable and accrued liabilities	(46)	152	(25)
Accrued payroll and employee benefits	(12)	8	26
Deferred income taxes and income taxes receivable/payable	(39)	(151)	36
Other long-term assets/liabilities	88	(37)	(20)
Net cash provided by operating activities of continuing operations	768	526	449
Cash flows from investing activities:
Payments for property, plant and equipment	(73)	(81)	(29)
Collections on promissory note	40	2	4
Acquisitions of businesses	(81)	0	25
Net proceeds from sale of assets	0	8	3
Proceeds from disposition of business	0	0	23
Net cash (used in) provided by investing activities of continuing operations	(114)	(71)	26
Cash flows from financing activities:
Payments of long-term debt	(59)	(209)	(277)
Proceeds from debt issuance	0	0	690
Payments for debt issuance and modification costs	(8)	(4)	(30)
Proceeds from issuances of stock	14	13	25
Repurchases of stock and other	(438)	(31)	(24)
Special cash dividend payment	0	0	(993)
Dividend payments	(198)	(198)	(142)
Payment of tax indemnification liability	(23)	0	0
Proceeds from real estate financing transaction	14	0	0
Payments for non-controlling interest acquired	(8)	0	0
Other	(1)	0	0
Net cash used in financing activities of continuing operations	(707)	(429)	(751)
Net (decrease) increase in cash, cash equivalents and restricted cash from continuing operations	(53)	26	(276)
Cash flows from discontinued operations:
Net cash used in investing activities of discontinued operations	0	0	(1)
Net decrease in cash, cash equivalents and restricted cash from discontinued operations	0	0	(1)
Net (decrease) increase in cash, cash equivalents and restricted cash	(53)	26	(277)
Cash, cash equivalents and restricted cash at beginning of year	422	396	673
Cash, cash equivalents and restricted cash at end of year	$ 369	$ 422	$ 396

Nature of Operations and Basis of Presentation	12 Months Ended
Nature of Operations and Basis of Presentation	Dec. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Basis of Presentation	Note 1—Nature of Operations and Basis of Presentation Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos"), a Delaware corporation, is a holding company whose direct 100%-owned subsidiary and principal operating company is Leidos, Inc. Leidos is a FORTUNE 500^® science, engineering and information technology company that provides services and solutions in the defense, intelligence, civil and health markets. Leidos' domestic customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration, the Department of Veterans Affairs and many other U.S. government civilian agencies, as well as state and local government agencies. Leidos' international customers include foreign governments and their agencies, primarily located in Australia and the United Kingdom ("U.K."). 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 (see "Note 6—Acquisitions" for further information). The acquired IS&GS Business was renamed Leidos Innovations Corporation. On December 28, 2018, Leidos Innovations Corporation was merged into Leidos, Inc. As a result of the Lockheed Martin transaction, the Company received a controlling interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Centerra Group, LLC and Jacobs Engineering Group, Inc. ("Jacobs Group"). On January 26, 2018, the Company entered into a Membership Interest Purchase Agreement with Jacobs Group, whereby the Company purchased 100% of Jacobs Group's 41% outstanding membership interest in MSA. As a result, Leidos increased its controlling ownership in MSA from 47% to 88%. The Company consolidates the financial results for MSA into its consolidated financial statements. The consolidated financial statements also include the balances of all voting interest entities in which Leidos has a controlling voting interest ("subsidiaries") and a variable interest entity ("VIE") in which Leidos is the primary beneficiary. The consolidated balances of the Company's VIE are not material to the Company's consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. During fiscal 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil and Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017. As a result of this change, fiscal 2016 segment results and disclosures have been recast to reflect the new reportable segments (see "Note 24—Business Segments"). Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The Company classifies indirect costs incurred within or allocated to its U.S. government customers as overhead (included in "Cost of revenues") or general administrative expenses in the same manner as such costs are defined in the Company's disclosure statements under U.S. government Cost Accounting Standards ("CAS"). Effective the beginning of fiscal 2018, the Company established a new CAS structure and revised its disclosure statements accordingly to reflect the related cost accounting practice changes. Consequently, $185 million and $88 million was reclassified from "Cost of revenues" to "Selling, general and administrative expenses" on the consolidated statements of income for fiscal 2017 and 2016, respectively. The Company aggregated "Acquisition and integration costs" and "Restructuring expenses" into "Acquisition, integration and restructuring costs", and "Interest income" and "Interest expense" into "Interest expense, net" on the consolidated statements of income. Additionally, the Company separately disclosed "Collections on promissory note", which was previously included in "Other" within investing cash flows on the consolidated statements of cash flows.

Accounting Standards

12 Months Ended

Dec. 28, 2018

Accounting Changes and Error Corrections [Abstract]

Accounting Standards

Note 2—Accounting Standards

Accounting Standards Updates Adopted

During fiscal 2018, the Company adopted the following Accounting Standards Updates ("ASU"):

ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 ("ASC 606") and related amendments, which superseded all prior revenue recognition methods and industry-specific guidance. The core principle of ASC 606 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 is required to 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). ASC 606 further requires that companies 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.

ASC 606 provided companies an option of two transition methods, the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The ASU was effective for annual reporting periods beginning after December 15, 2017.

Effective December 30, 2017 (the beginning of fiscal 2018), the Company adopted the requirements of ASC 606 using the modified retrospective method. The guidance was not applied to contracts that were complete at December 30, 2017, and the comparative information for the prior fiscal years have not been retrospectively adjusted.

As a result of the adoption the Company recorded a $1 million decrease to its beginning accumulated deficit as the cumulative impact of adoption of the new revenue standard. The primary impact was on certain units-of-delivery contracts, as the Company previously recognized revenue at a point in time when the customer accepted delivery of the product or service. Under ASC 606, revenues on certain units-of-delivery contracts are now recognized using an over-time model. The adoption of ASC 606 did not have a significant impact on the Company's revenue recognition policy as revenues on substantially all of the Company's contracts continue to be recognized over time.

In adopting ASC 606, the Company elected to use certain practical expedients permitted by the standard including using the portfolio approach where contracts with similar characteristics were assessed collectively to evaluate risk over the impact of ASC 606. The Company also elected to adopt the right-to-invoice practical expedient on certain cost-reimbursable contracts where the Company recognizes revenues as it is contractually able to invoice the customer based on the control transferred to the customer.

ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities

In August 2017, the FASB issued ASU 2017-12, which simplifies the application of hedge accounting and improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities. The ASU is effective for public companies for annual reporting periods beginning after December 15, 2018, and should be applied on a modified retrospective basis. Early adoption is permitted.

The Company early adopted the provisions of ASU 2017-12 using the modified retrospective method during the first quarter of fiscal 2018, and recorded a $3 million increase to accumulated other comprehensive income and a corresponding increase to beginning accumulated deficit for the cumulative ineffectiveness gains related to the cash flow hedges.

ASU 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("Tax Act"). This ASU is effective for all entities for annual reporting periods beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate due to the Tax Act is recognized. Early adoption is permitted.

The Company early adopted the provisions of ASU 2018-02 during the first quarter of fiscal 2018 (applied in the period of adoption), and recorded a $6 million increase to accumulated other comprehensive income and a corresponding increase to beginning accumulated deficit to reflect the changes in the U.S. federal corporate income tax rate as a result of the Tax Act. As a result of the adoption of ASU 2018-02, the Company's policy to release income tax effects in accumulated other comprehensive income is consistent with the underlying book method.

The cumulative effect of the changes made to the Company's consolidated balance sheet for the adoptions of the ASUs above was as follows:



	Balance at December 29, 2017			Adjustments due to ASU 2014-09			Adjustments due to ASU 2017-12			Adjustments due to ASU 2018-02			Balance at December 30, 2017
	(in millions)
Assets:
Receivables, net	$	1,831		$	4		$	—		$	—		$	1,835
Other current assets	453			(3		)	—			—			450
Equity:
Accumulated deficit	$	(7	)	$	1		$	(3	)	$	(6	)	$	(15	)
Accumulated other comprehensive income	33			—			3			6			42

Accounting Standards Updates Issued But Not Yet Adopted

ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2018-20, Leases (Topic 842)

In February 2016, the FASB issued ASU 2016-02, which supersedes the current lease guidance under Leases (Topic 840) and makes several changes, such as requiring an entity to recognize a right-of-use ("ROU") asset and corresponding lease obligation on the balance sheet, classified as financing or operating, as appropriate. The update is effective for public companies for annual and interim reporting periods beginning after December 15, 2018, and should be adopted under the modified retrospective approach.

In July 2018, the FASB issued ASU 2018-10 "Codification Improvements to Topic 842, Leases" to add clarity to certain areas within ASU 2016-02 and ASU 2018-11 "Targeted Improvements", to add an additional and optional transition method to adopt the new leases standard by allowing recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20 "Narrow-Scope Improvements for Lessors" to add clarity to lessors accounting for sales taxes and other similar taxes collected from lessees, accounting for variable payments for contracts with lease and non-lease components, and accounting for certain lessor costs. The effective date and transition requirements of these updates will be the same as ASU 2016-02.

The Company plans to adopt the new lease accounting standards in fiscal 2019 using the optional transition method. The Company has made progress in reviewing lease and other service based contracts, implementing a new lease accounting and administration software solution, establishing new processes and internal controls. The Company has elected to adopt certain practical expedients provided under ASC 842, including the option to not apply lease recognition for short-term leases, reassessment of whether expired or existing contracts contain leases, reassessment of lease classification for expired or existing leases, applying a single discount rate to a portfolio of leased assets with similar durations, reassessing initial direct costs and combining lease and non-lease components in revenue arrangements.

The Company expects the adoption of the new standard will result in the recognition of at least $350 million and $400 million of ROU assets and lease liabilities, respectively, primarily due to its operating leases, to the Company's consolidated balance sheets, but will not have a material impact on the consolidated statements of income and consolidated statements of cash flows. The Company's accounting for capital leases will remain substantially unchanged. Additionally, the Company estimates a $65 million increase in retained earnings due to the cumulative effect of recognizing a gain related to the sale and leaseback of the San Diego properties (see "Note 22—Leases").

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the FASB issued ASU 2016-13, which 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 for annual and interim reporting periods beginning after December 15, 2019, 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. Early adoption is permitted. 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.

ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement (Subtopic 350-40)

In August 2018, the FASB issued ASU 2018-15, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software. The update is effective for public companies for annual and interim reporting periods beginning after December 15, 2019, and may be adopted either retrospectively or prospectively. Early adoption is permitted. The Company is evaluating the provisions of ASU 2018-15 and its impact on the Company’s consolidated financial position, results of operations and cash flows.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3—Summary of Significant Accounting Policies

Reporting Periods

Leidos' fiscal year ends on the Friday nearest the end of December. Fiscal 2018, 2017 and 2016 each included 52 weeks.

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

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.

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 non-controlling ownership interest but 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 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.

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 classified as discontinued operations for all periods presented. Non-strategic divestitures are not reclassified as discontinued operations and remain in continuing operations.

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.

The Company's restructuring actions include one-time involuntary termination benefits as well as certain contractual termination benefits or employee terminations under ongoing benefit arrangements. One-time involuntary termination benefits are recognized as a liability at estimated fair value when the plan of termination has been communicated to employees and certain other criteria are met. Ongoing termination benefit arrangements are recognized as a liability at estimated fair value when it is probable that amounts will be paid to employees and such amounts are reasonably estimable. When the Company ceases using a facility but does not intend to or is unable to terminate the operating lease, the Company records a liability for the present value of the remaining lease payments, net of estimated sublease income, if any, that could be reasonably obtained for the property (even if the Company does not intend to sublease the facility for the remaining term of the lease). Costs associated with exit or disposal activities, including the related one-time and ongoing involuntary termination benefits, are included as "Acquisition, integration and restructuring costs" on the consolidated statements of income. See "Note 8—Restructuring Expenses" for additional information about the Company's restructuring activities.

Revenue Recognition

The Company's revenues from contracts with customers are from offerings including enterprise modernization; cyber operations; operations and logistics; mission software systems; integrated systems; sensors and phenomenology; and mission support, primarily with the U.S. government and its agencies. The Company also serves various state and local governments, foreign governments and U.S. commercial customers.

The Company performs under various types of contracts, which include firm-fixed-price ("FFP"), time-and-materials ("T&M"), fixed-price-level-of-effort ("FP-LOE"), cost-plus-fixed-fee, cost-plus-award-fee, cost-plus-incentive-fee and fixed-price-incentive-fee ("FP-IF") contracts.

To determine the proper revenue recognition, the Company first evaluates whether it has a duly approved and enforceable contract with a customer, in which the rights of the parties and payment terms are identified, and collectability is probable. The Company also evaluates whether two or more contracts should be combined and accounted for as a single contract, including the task orders issued under an indefinite delivery/indefinite quantity ("IDIQ") award. In addition, the Company assesses contract modifications to determine whether changes to existing contracts should be accounted for as part of the original contract or as a separate contract. Contract modifications for the Company generally relate to changes in contract specifications and requirements and do not add distinct services, and therefore are accounted for as part of the original contract. If contract modifications add distinct goods or services and increase the contract value by an amount that reflects the standalone selling price, those modifications are accounted for as separate contracts.

Most of the Company's contracts are comprised of multiple promises including the design and build of software-based systems, integration of hardware and software solutions, running and maintaining of IT infrastructure and procurement services. In all cases, the Company assesses if the multiple promises should be accounted for as separate performance obligations or combined into a single performance obligation. The Company generally separates multiple promises in a contract as separate performance obligations if those promises are distinct, both individually and in the context of the contract. If multiple promises in a contract are highly interrelated or require significant integration or customization within a group, they are combined and accounted for as a single performance obligation.

The Company's contracts with the U.S. government often contain options to renew existing contracts for an additional period of time (generally a year at a time) under the same terms and conditions as the original contract, and generally do not provide the customer any material rights under the contract. The Company accounts for renewal options as separate contracts when they include distinct goods or services at standalone selling prices.

Contracts with the U.S. government are subject to the Federal Acquisition Regulation ("FAR") and priced on estimated or actual costs of providing the goods or services. The FAR provides guidance on types of costs that are allowable in establishing prices for goods and services provided to the U.S. government and its agencies. Each contract is competitively priced and bid separately. Pricing for non-U.S. government agencies and commercial customers is based on specific negotiations with each customer. In circumstances where the standalone selling price is not directly observable, we estimate the standalone selling price using the expected cost plus margin approach. The Company excludes any taxes collected or imposed when determining the transaction price.

Certain of the Company's cost-plus and fixed-price contracts contain award fees, incentive fees or other provisions that may either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. The Company estimates variable consideration at the most probable amount that it expects to be entitled to, based on the assessment of the contractual variable fee criteria, complexity of work and related risks, extent of customer discretion, amount of variable consideration received historically and the potential of significant reversal of revenue.

The Company allocates the transaction price of a contract to its performance obligations in the proportion of its respective standalone selling prices. The standalone selling price of the Company's performance obligations is generally based on an expected cost-plus margin approach, in accordance with the FAR. For certain product sales, the Company uses prices from other standalone sales. Substantially all of the Company's contracts do not contain a significant financing component, which would require an adjustment to the transaction price of the contract.

The Company recognizes revenue on its service based contracts primarily over time as there is continuous transfer of control to the customer over the duration of the contract as the Company performs the promised services. For U.S. government contracts, continuous transfer of control to the customer is evidenced by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay for costs incurred plus a reasonable profit and take control of any work-in-process. Similarly, for non-U.S. government contracts, the customer typically controls the work-in-process as evidenced by rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternate use to the Company. Anticipated losses on service based contracts are recognized when known. In certain product sales, where the products have an alternate use, the Company recognizes revenue at a point in time when the customer takes control of the asset usually denoted by possession and legal title.

On FFP contracts, revenue recognized over time generally uses a method that measures the extent of progress towards completion of a performance obligation, principally using a cost-input method (referred to as the cost-to-cost method). Under the cost-to-cost method, revenue is recognized based on the proportion of total costs incurred to estimated total costs-at-completion ("EAC"). A performance obligation's EAC includes all direct costs such as materials, labor, subcontract costs, overhead, and a ratable portion of general and administrative costs. In addition, the Company includes in an EAC of a performance obligation future losses estimated to be incurred on onerous contracts, as and when known. On certain other contracts, principally T&M, FP-LOE, and cost-plus, revenue is recognized using the right-to-invoice practical expedient as the Company is contractually able to invoice the customer based on the control transferred to the customer. Additionally, on maintenance (generally FFP) performance obligations, revenue is recognized over time using a straight-line method as the control of the services is provided to the customer evenly over the period of performance.

For certain performance obligations, the Company is not primarily responsible for fulfilling the promise to provide the goods or service to the customer, does not have inventory risk and does not have discretion in establishing the price for the goods or service. In such cases, the Company recognizes revenue on a net basis.

Contract Costs

Contract costs generally include direct costs such as materials, labor, subcontract costs and indirect costs identifiable with or allocable to a specific contract. Costs are expensed as incurred except for costs incurred to fulfill a contract, which are capitalized and amortized on a straight-line basis over the expected period of performance. The Company does not incur significant incremental costs to acquire contracts. Contract costs incurred for U.S. government contracts, including indirect costs, are subject to audit and adjustment by the Defense Contract Audit Agency ("DCAA") (see "Note 25—Contingencies").

Pre-contract Costs

Costs incurred on projects as pre-contract costs are deferred as 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 service contracts, costs are incurred, usually at the beginning of the contract performance, to transition the services, employees and equipment to or from the customer or prior contractor. These costs are generally capitalized as deferred assets and amortized over the contractual period of performance and unexercised option periods.

Project Assets

Purchases of project assets are capitalized for specific contracts where delivery has not yet occurred, ownership is maintained by the Company over the life of the contract or the benefit is received over a period of time. Project assets include enterprise software licenses, hardware, maintenance agreements, computers and significant material purchases and other costs incurred on contracts. Project assets are relieved from the balance sheet based on different methodologies, including transfer of assets and amortization based on the estimated useful life of the asset or using the straight-line method over the expected term of the performance obligation.

Changes in Estimates on Contracts

Changes in estimates related to contracts accounted for using the cost-to-cost method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes, with the exception of contracts acquired through the acquisition of the IS&GS Business (see "Note 6—Acquisitions"), where the adjustment is for the period commencing from the date of acquisition.

Changes in estimates on contracts for the periods presented were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions, except for per share amounts)
Net favorable impact to income before income taxes	$	105	$	103	$	37
Impact on diluted EPS attributable to Leidos common stockholders	$	0.52	$	0.41	$	0.22

The increase in the changes in estimates on contracts from fiscal 2016 to fiscal 2017 is primarily due to completion of contracts or events which mitigated risk and due to the finalization of award and incentive fees.

The impact on diluted EPS attributable to Leidos common stockholders is calculated using the Company's statutory tax rate.

During fiscal 2018, revenue recognized from performance obligations satisfied in previous periods was $102 million. The changes primarily relate to revisions of variable consideration, including award fees, and revisions to estimates at completion resulting from changes in contract scope, mitigation of contract risks or due to true-ups of contract estimates at the end of contract performance.

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 CAS.

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 2018, 2017 and 2016, company-funded IR&D expense was $46 million, $42 million and $44 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.

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. The Company includes outstanding payments within "Cash and cash equivalents" and correspondingly increases "Accounts payable and accrued liabilities" on the consolidated balance sheets. At December 28, 2018, and December 29, 2017, the Company included $56 million and $169 million, respectively, of outstanding payments within "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. Restricted cash balances are included as "Other current assets" in the consolidated balance sheets.

Receivables

The Company's receivables include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. As of fiscal 2018, amounts billable were classified as billed receivables. These receivables were classified as unbilled receivables for fiscal 2017 (see "Note 9—Receivables").

Amounts billable and unbilled amounts are recognized at estimated realizable value and consist of costs and fees, substantially all of which are expected to be billed and collected generally within one year. Unbilled amounts also include rate variances that are billable upon negotiation of final indirect rates with the DCAA.

The typical billing for the Company's cost-reimbursable and T&M contracts is as costs are incurred. FFP contracts are billed either based on milestones, which are the achievement of specific events as defined in the contract, or based on progress payments, which are interim payments up to a designated amount of costs incurred as work progresses. On certain contracts, the customer withholds a certain percentage of the contract price (retainage). These withheld amounts are included within the Company's unbilled receivables and 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. Based on the Company's historical experience, the 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.

Amounts billed and collected on contracts but not yet recorded as revenue because the Company has not performed its obligation under the arrangement with a customer are deferred and included within "Accounts payable and accrued liabilities" or "Other long-term liabilities" on the consolidated balance sheets.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of accounts receivable and derivatives. Since the Company's receivables are primarily with the U.S. government, the Company does not have exposure to a material credit risk. The Company manages its credit risk related to derivatives through the use of multiple counterparties with high credit standards.

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, inspection systems and baggage scanning equipment. The Company evaluates inventory against historical and planned usage to determine appropriate provisions for obsolete inventory. Inventory balances are included as "Other current assets" in the consolidated balance sheets.

Goodwill

Goodwill represents the excess of the fair value of consideration transferred, plus the fair value of any non-controlling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but instead is tested annually for impairment at the reporting unit level and tested more frequently 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. During fiscal 2018, the Company had five reporting units for the purpose of testing goodwill for impairment.

Goodwill is evaluated for impairment either under a qualitative assessment option or a quantitative approach depending on the facts and circumstances of a reporting unit, consideration of the excess of a reporting unit's fair value over its 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 goodwill impairment test is performed.

When performing a quantitative goodwill impairment test, the reporting unit carrying value is compared to its fair value. Goodwill is deemed impaired if, and the impairment loss is recognized for the amount by which, the reporting unit carrying value exceeds its fair value.

The Company estimates the fair value of each reporting unit using both market and income approaches (Level 3) when a quantitative analysis is performed. To determine the fair value of the reporting units, the outputs from both methods are equally weighted.

The market approach is a technique where the fair value is calculated based on the multiples of comparable publicly-traded companies that provide a reasonable basis of comparison with each of the Company's reporting units. 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 and assumptions including the use of appropriate financial projections, economic expectations, WACC and expected long-term growth rates, as well as using available market data. Significant changes to these estimates and assumptions could adversely impact conclusions and actual future results may differ from the estimates. In addition, the identification of reporting units and the allocation of assets and liabilities to the reporting units when determining the carrying value of each reporting unit also requires judgment.

Intangible Assets

Acquired intangible assets with finite lives and internally developed software 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 amortized over the following periods:



		Estimated useful lives (in years)
Program and contract intangibles		6-11
Backlog		1
Customer relationships		8
Software and technology		4-15

Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

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.

Property, Plant and Equipment

Purchases of property, plant and equipment, including purchases of software and software licenses, 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	3-10
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 and fixtures	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.

Fair Value Measurements

The accounting standard for fair value measurements establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets for identical assets or liabilities that are observable either directly or indirectly or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data (e.g., discounted cash flow and other similar pricing models), which requires the Company to develop its own assumptions (Level 3).

The accounting guidance for fair value measurements requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. The Company has not made fair value option elections on any of its financial assets and liabilities.

The fair value of financial instruments is determined based on quoted market prices, if available, or management's best estimate (see "Financial Instruments" below).

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.

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 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 interest rate payments to fixed interest rate payments. 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 rates (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).

Stock-Based Compensation

The Company accounts for stock-based compensation at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period, net of an estimated forfeiture rate.

The fair value of restricted stock awards and performance-based stock awards is based on the closing price of the Company's common stock on the date of grant. The fair value of performance-based stock awards with market conditions is based on using the Monte Carlo simulation.

The fair value of stock option awards granted is based on using the Black-Scholes-Merton option pricing model. The estimation of stock option fair value requires management to make estimates and judgments about, among other things, employee exercise behavior, forfeiture rates and the expected volatility of Leidos common stock over the expected option term. These judgments directly affect the amount of compensation expense that will ultimately be recognized.

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 (loss) income in stockholders' equity. Gains and losses due to movements in foreign currency exchange rates are recognized as "Other expense, net" on the consolidated statements of income.

Revenues

12 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Revenues

Note 4—Revenues

Dual Reporting

The effects to the consolidated financial statements at and as of December 28, 2018, as a result of applying ASC 606, rather than previous GAAP ("ASC 605"), were the following:

Balance Sheet



	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Receivables, net	$	1,877	$	1,872
Other current assets	543		545
Accumulated earnings (deficit)	372		369

Income Statement



	Year Ended December 28, 2018
	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Revenues	$	10,194	$	10,189
Cost of revenues	8,690		8,688
Operating income	749		746

The changes reflected above were primarily due to the Company's units-of-delivery contracts, which were recognized at a point in time under ASC 605 and are recognized using an over-time model under ASC 606.

Remaining Performance Obligations

Remaining performance obligations represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. Remaining performance obligations do not include unexercised option periods and future potential task orders expected to be awarded under IDIQ contracts.

As of December 28, 2018, the Company had $10.2 billion of remaining performance obligations, which are expected to be recognized as revenue in the amounts of $7.3 billion, $1.1 billion and $1.8 billion for fiscal 2019, fiscal 2020 and fiscal 2021 and thereafter, respectively.

Disaggregation of Revenues

The Company disaggregates revenues by customer-type, contract-type and geographic location for each of its reportable segments. These categories represent how the nature, timing and uncertainty of revenues and cash flows are affected by the U.S. government procurement environment.

Disaggregated revenues by customer-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD	$	4,318	$	128	$	386	$	4,832
Other government agencies⁽¹⁾	194		2,412		1,276		3,882
Commercial and non-U.S. customers	436		889		155		1,480
Total	$	4,948	$	3,429	$	1,817	$	10,194

⁽¹⁾ Includes non-DoD federal government agencies, state and local government agencies.

The majority of the Company's revenues are generated from U.S. government contracts, either as a prime contractor or as a subcontractor to other contractors. Revenues from the U.S. government can be adversely impacted by spending caps or changes in budgetary priorities of the U.S. government, as well as delays in program start dates or the award of a contract. Government spending levels for the DoD may be impacted by spending priorities as a result of competing demands for federal funds.

Disaggregated revenues by contract-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,417	$	1,863	$	189	$	5,469
Firm-fixed-price	1,031		1,004		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	500		562		494		1,556
Total	$	4,948	$	3,429	$	1,817	$	10,194

Cost-reimbursement and FP-IF contracts are generally lower risk and have lower profits. T&M and FP-LOE contracts are also low risk but profits may vary depending on actual labor costs compared to negotiated contract billing rates. FFP contracts offer the potential for higher profits while increasing the Company’s exposure to risk of cost overruns.

Disaggregated revenues by geographic location were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,572	$	2,876	$	1,817	$	9,265
International	376		553		—		929
Total	$	4,948	$	3,429	$	1,817	$	10,194

The Company's international business operations, primarily located in Australia and the U.K., are subject to additional and different risks than its U.S. business. Failure to comply with U.S. government laws and regulations applicable to international business, such as the Foreign Corrupt Practices Act or U.S. export control regulations, could have an adverse impact on the Company's business with the U.S. government.

In some countries, there is an increased chance for economic, legal or political changes that may adversely affect the performance of the Company's services, sales of products or repatriation of profits. International transactions can also involve increased financial and legal risks arising from foreign exchange variability, imposition of tariffs or additional taxes and restrictive trade policies and delays or failure to collect amounts due to differing legal systems.

Note 5—Contract Assets and Liabilities

The Company’s performance obligations are satisfied either over time as work progresses or at a point in time. FFP contracts are typically billed to the customer using milestone payments while cost-reimbursable and T&M contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, for each of the company’s contracts, the timing of revenue recognition, customer billings and cash collections results in a net contract asset or liability at the end of each reporting period.

Contract assets include unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer, where right to payment is not just subject to the passage of time.

Contract liabilities consist of deferred revenue.

The components of contract assets and contract liabilities consisted of the following:



	Balance sheet line item	December 28, 2018		December 30, 2017⁽¹⁾
		(in millions)
Contract assets - current:
Unbilled receivables⁽²⁾	Receivables, net	$	818	$	844

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	276	$	293

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	10	$	17

⁽¹⁾ Includes the cumulative effect of the changes made to the Company's opening balance sheet at December 30, 2017, as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606).

⁽²⁾ Balances exclude $381 million and $234 million determined to be billable at December 28, 2018, and December 30, 2017, respectively.

The decrease in unbilled receivables was primarily due to the timing of billings and revenue recognized on certain contracts. The decrease in deferred revenue was primarily due to revenue recognized during the period partially offset by the timing of advance payments from customers.

During fiscal 2018, the Company recognized revenues of $208 million relating to amounts that were included as a contract liability at December 30, 2017.

The Company did not recognize any impairment losses on contract assets during fiscal 2018.

Contract Asset and Liabilities

12 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Contract Asset and Liabilities

Note 4—Revenues

Dual Reporting

The effects to the consolidated financial statements at and as of December 28, 2018, as a result of applying ASC 606, rather than previous GAAP ("ASC 605"), were the following:

Balance Sheet



	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Receivables, net	$	1,877	$	1,872
Other current assets	543		545
Accumulated earnings (deficit)	372		369

Income Statement



	Year Ended December 28, 2018
	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Revenues	$	10,194	$	10,189
Cost of revenues	8,690		8,688
Operating income	749		746

Remaining Performance Obligations

Disaggregation of Revenues

Disaggregated revenues by customer-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD	$	4,318	$	128	$	386	$	4,832
Other government agencies⁽¹⁾	194		2,412		1,276		3,882
Commercial and non-U.S. customers	436		889		155		1,480
Total	$	4,948	$	3,429	$	1,817	$	10,194

⁽¹⁾ Includes non-DoD federal government agencies, state and local government agencies.

Disaggregated revenues by contract-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,417	$	1,863	$	189	$	5,469
Firm-fixed-price	1,031		1,004		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	500		562		494		1,556
Total	$	4,948	$	3,429	$	1,817	$	10,194

Disaggregated revenues by geographic location were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,572	$	2,876	$	1,817	$	9,265
International	376		553		—		929
Total	$	4,948	$	3,429	$	1,817	$	10,194

Note 5—Contract Assets and Liabilities

Contract liabilities consist of deferred revenue.

The components of contract assets and contract liabilities consisted of the following:



	Balance sheet line item	December 28, 2018		December 30, 2017⁽¹⁾
		(in millions)
Contract assets - current:
Unbilled receivables⁽²⁾	Receivables, net	$	818	$	844

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	276	$	293

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	10	$	17

⁽²⁾ Balances exclude $381 million and $234 million determined to be billable at December 28, 2018, and December 30, 2017, respectively.

During fiscal 2018, the Company recognized revenues of $208 million relating to amounts that were included as a contract liability at December 30, 2017.

The Company did not recognize any impairment losses on contract assets during fiscal 2018.

Acquisitions

12 Months Ended

Dec. 28, 2018

Business Combinations [Abstract]

Acquisitions

Note 6—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.

Lockheed Martin Transaction

On January 26, 2016, Leidos announced 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. 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 represented 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 15—Debt" for further information regarding the debt incurred and the 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 19—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 information technology ("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.

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



Value of common stock issued to Lockheed Martin stockholders⁽¹⁾	$	2,929
Equity consideration for replacement awards⁽²⁾	9
Working capital adjustments⁽³⁾	81
Purchase price	$	3,019

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

⁽²⁾ Represents a portion of the $23 million total fair value of replacement equity-based awards attributable to the pre-Merger service period. The remaining $12 million, net of estimated forfeitures, will be recognized as stock-based compensation expense over the remaining requisite service period (see "Note 19—Stock-Based Compensation").

⁽³⁾In January 2018, the Company finalized its net working capital at $105 million. The additional $24 million was recorded as acquisition costs in the consolidated statements of income.

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



Cash	$	25
Receivables, net	938
Other current assets	73
Property, plant and equipment	87
Intangible assets	1,194
Other assets	58
Accounts payable and accrued liabilities	(733		)
Accrued payroll and employee benefits	(186		)
Long-term debt, current portion	(23		)
Deferred tax liabilities	(328		)
Long-term debt, net of current portion	(1,780		)
Other long-term liabilities	(45		)
Total identifiable net liabilities assumed	(720		)
Non-controlling interest	(13		)
Goodwill	3,752
Purchase price	$	3,019

During fiscal 2017, the Company recorded adjustments to finalize the fair value of acquired assets and liabilities assumed which resulted in a $337 million increase in goodwill. Significant changes included intangible assets, property, plant and equipment, deferred tax assets, other assets, accounts payable and accrued liabilities and deferred tax liabilities. The Company recognized cumulative catch-up adjustments related to valuation adjustments for equity method investments and property, plant, and equipment, which resulted in an increase of $7 million in amortization expense and an increase of $7 million of depreciation expense, respectively. The Company recorded the cumulative catch-up adjustments to equity method investments within "Equity earnings of non-consolidated subsidiaries" and adjustments to depreciation within "Costs of revenues" and "Selling, general and administrative expenses" on the consolidated statement of income.

Additionally, during fiscal 2017, the Company recorded a valuation adjustment to reflect the fair value of the non-controlling interest acquired. The fair value of $13 million was determined by calculating the present value of future cash flows for the non-controlling interest. Significant assumptions inherent in the valuation of the non-controlling interest include the estimated after-tax cash flows expected to be received and an assessment of the appropriate discount rate.

The goodwill represents intellectual capital and the acquired assembled work force, none of which qualify for recognition as a separate intangible asset. The value of goodwill has been allocated to the reporting units on a relative fair value approach (see "Note 10—Goodwill"). Of the total goodwill, $414 million is tax deductible.

The Company identified $1.2 billion of intangible assets, representing program and contract intangibles, backlog and software and technology. The fair value measurements were primarily based on significant inputs that are not observable in the market and represent a Level 3 measurement (see "Note 13—Fair Value Measurements"). The income approach was primarily used to value the intangible assets, consisting primarily of acquired program and contract intangibles and backlog. The income approach indicates value for an asset based on the present value of cash flow projected to be generated by the asset. Projected cash flow is discounted at a rate of return that reflects the relative risk of achieving the cash flow and the time value of money.

The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period:



	Weighted average amortization period	Fair value
	(in years)	(in millions)
Program and contract intangibles⁽¹⁾	9.7	$	1,011
Backlog	1.8	157
Software and technology⁽¹⁾	4.6	26
Total	8.6	$	1,194

⁽¹⁾ The weighted average amortization period is estimated based on the projected economic benefits associated with these assets.

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



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Acquisition costs	$	—	$	25	$	44
Integration costs	29		77		46
Total acquisition and integration costs	$	29	$	102	$	90

These acquisition and integration costs have been recorded within Corporate and presented in "Acquisition, integration and restructuring costs" on the consolidated statements of income.

On January 10, 2018, the final amount of the net working capital of the IS&GS Business was determined through a binding arbitration proceeding in accordance with the Separation Agreement with Lockheed Martin. As a result, $24 million was recorded as acquisition costs in the consolidated statements of income for fiscal 2017. On January 18, 2018, the final working capital amount of $105 million was paid to Lockheed Martin, of which $24 million and $81 million was presented as cash flows from operating and investing activities, respectively, on the consolidated statement of cash flows.

During fiscal 2018, a tax indemnification liability of $23 million was paid to Lockheed Martin in accordance with the Tax Matters Agreement, which was presented as cash flows from financing activities on the consolidated statement of cash flows.

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.



	Year Ended
(unaudited)	December 30, 2016
	(in millions, except for per share amounts)
Revenues	$	10,443
Net income	340
Net income attributable to Leidos common stockholders	335
Earnings per share:
Basic	$	2.23
Diluted	2.20

The unaudited pro forma financial information above excludes acquisition-related costs of $44 million as a non-recurring significant adjustment. This adjustment was made to account for certain costs incurred as if the Transactions had been completed on January 31, 2015.

Divestitures

12 Months Ended

Dec. 28, 2018

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Note 7—Divestitures

Commercial Cybersecurity Business

On June 5, 2018, the Company entered into a Stock and Asset Purchase Agreement to sell the Company's commercial cybersecurity business, included within the Company's Civil segment, in order to focus on providing solutions, including cybersecurity, to the Company's core markets of governments and highly regulated industries. The sale is expected to be completed in early fiscal 2019 and is not expected to result in a loss. The Company has presented the associated assets and liabilities of the business as held for sale in the Company's consolidated balance sheet as of December 28, 2018. The major classes of assets and liabilities classified as held for sale were as follows:



	December 28, 2018
	(in millions)
Receivables, net	$	16
Other current assets	5
Property, plant and equipment, net	3
Intangible assets, net	5
Goodwill	57
Deferred tax assets	6
Total assets held for sale	$	92

Accounts payable and accrued liabilities	$	16
Accrued payroll and employee benefits	4
Other long-term liabilities	3
Total liabilities held for sale	$	23

The planned disposition does not represent a strategic shift in operations that will have a material effect on the Company's operations and financial results, and accordingly was not presented as discontinued operations.

Heavy Construction Business

In April 2016, the Company's Civil 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 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. The Company recorded the pre-tax gain on sale in "Other expense, net" on the consolidated statements of income.

Plainfield Renewable Energy Holdings LLC

On July 24, 2015, the Company completed the sale of its equity interests in Plainfield Renewable Energy Holdings LLC ("Plainfield"), a biomass-fueled power plant in Plainfield, Connecticut (the "plant"), for an aggregate consideration of $102 million, subject to certain adjustments. 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 original maturity date of the Note was 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% would increase to 8% if the maturity date was extended beyond July 24, 2017, and would 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 allowed 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.

During the quarter ended June 30, 2017, Plainfield exercised the first of three one-year term extension options available under the original credit agreement, thereby extending the maturity date of the Note to July 24, 2018. Concurrent with this extension, the interest rate on the Note increased from 6% to 8%. Also, during the quarter ended June 30, 2017, Leidos and Plainfield entered into an amendment to the Note allowing Plainfield to defer up to $4 million of the interest and principal payments due in July 2017 and January 2018 until July 2018. In consideration of this deferment, Leidos received certain concessions and releases from obligations under the original transaction documents.

The Company collected $6 million of principal and interest each year during fiscal 2016 and fiscal 2017. Payments under the Note were 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 comprised the plant.

In January 2018, the Company entered into negotiations with the equity owners of Plainfield LLC regarding the Plainfield Recapitalization Plan ("Plan"). The Plan envisioned raising new equity combined with reduction of Plainfield's debt. As a result, the Company recorded a $33 million impairment of its Note, which is presented in "Other expense, net" on the consolidated statements of income. The net realizable value of the Note at December 29, 2017, was estimated to be approximately $40 million, compared to its carrying value of $73 million, including accrued interest.

On July 12, 2018, Leidos and Plainfield entered into an additional amendment to the Note, allowing Plainfield to defer the maturity of the Note until the earlier of August 24, 2018, or the date Plainfield successfully closed on a refinancing agreement with a third party. Under the terms of the agreement, if Plainfield successfully refinanced the Note prior to August 24, 2018, Leidos would allow Plainfield to settle the Note in full for $40 million plus 50% of additional net proceeds obtained by Plainfield. On August 23, 2018, Leidos and Plainfield entered into an agreement with respect to the final payoff of the Note. As a result, the Company received proceeds of $40 million in full satisfaction of Plainfield's obligations under the Note.

Restructuring Expenses

12 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Note 8—Restructuring Expenses

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

The restructuring expenses related to this program were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Severance costs	$	2	$	18	$	10
Lease termination expenses	6		19		2
Restructuring expenses related to the IS&GS Business	$	8	$	37	$	12

As of December 28, 2018, the Company has recognized a total of $57 million of expense in connection with restructuring activities. These restructuring expenses have been recorded within Corporate and presented in "Acquisition, integration and restructuring costs" on the consolidated statements of income.

The related restructuring liability related to this program was as follows:



	Severance Costs			Lease Termination Expenses			Total
	(in millions)
Balance at December 30, 2016	$	7		$	1		$	8
Charges	18			19			37
Cash payments	(20		)	(16		)	(36		)
Balance at December 29, 2017	5			4			9
Charges	2			6			8
Cash payments	(7		)	(8		)	(15		)
Balance at December 28, 2018	$	—		$	2		$	2

Receivables

12 Months Ended

Dec. 28, 2018

Receivables [Abstract]

Receivables

Note 9—Receivables

The components of receivables, net consisted of the following:



	December 28, 2018			December 29, 2017
	(in millions)
Billed receivables⁽¹⁾	$	1,067		$	771
Unbilled receivables	818			1,074
Allowance for doubtful accounts	(8		)	(14		)
	$	1,877		$	1,831

⁽¹⁾ As a result of the adoption of ASC 606, $381 million of billable receivables were classified as billed receivables for fiscal 2018. $234 million of billable receivables were classified as unbilled receivables for fiscal 2017.

- 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

Goodwill

12 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 10—Goodwill

During fiscal 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil and Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017 (see "Note 24—Business Segments"). Goodwill, including the amounts from the acquisition of the IS&GS Business, was allocated to the reporting units on a relative fair value approach.

The following table presents changes in the carrying amount of goodwill by reportable segment:



	Defense Solutions			Civil			Health			Total
	(in millions)
Goodwill at December 30, 2016⁽¹⁾	$	1,954		$	1,731		$	937		$	4,622
Adjustment to original purchase price allocation	94			259			(16		)	337
Foreign currency translation adjustments	7			8			—			15
Goodwill at December 29, 2017⁽¹⁾	2,055			1,998			921			4,974
Foreign currency translation adjustments	(40		)	(11		)	—			(51		)
Transfers to assets held for sale	—			(57		)	—			(57		)
Adjustment to goodwill	—			(6		)	—			(6		)
Goodwill at December 28, 2018⁽¹⁾	$	2,015		$	1,924		$	921		$	4,860

⁽¹⁾Carrying amount includes accumulated impairment losses of $369 million and $117 million within the Health and Civil segments, respectively.

See "Note 6—Acquisitions" for the description of adjustments to the original purchase price allocation.

In conjunction with the fiscal 2017 change in reportable segments, the Company evaluated goodwill for impairment, both before and after the segment change and determined that goodwill was not impaired.

Based on a qualitative analysis performed during the Company's annual impairment evaluation for fiscal 2018 and fiscal 2016 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 the fair value was in excess of the individual reporting units carrying values. In fiscal 2017, the company performed a quantitative analysis for all reporting units. It was determined that the fair values of all reporting units exceeded their carrying values. As a result, no goodwill impairments were identified as part of the annual goodwill impairment evaluation for the periods mentioned above.

During the year ended December 28, 2018, the Company recorded an immaterial correction of $6 million with respect to fair value of liabilities acquired from the Transactions (see "Note 6—Acquisitions").

Intangible Assets

12 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 11—Intangible Assets

Intangible assets consisted of the following:



	December 28, 2018							December 29, 2017
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Program and contract intangibles	$	1,003	$	(374	)	$	629	$	1,013	$	(187	)	$	826
Software and technology	93		(74		)	19		89		(64		)	25
Customer relationships	4		(4		)	—		4		(3		)	1
Backlog	—		—			—		158		(158		)	—
Total finite-lived intangible assets	1,100		(452		)	648		1,264		(412		)	852
Indefinite-lived intangible assets:
Trade names	4		—			4		4		—			4
Total intangible assets	$	1,104	$	(452	)	$	652	$	1,268	$	(412	)	$	856

Amortization expense related to intangible assets, including those acquired through the Transactions, was $201 million, $281 million and $84 million for fiscal 2018, 2017 and 2016, respectively.

Program and contract intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows. Customer relationships and backlog intangible assets are amortized on a straight-line basis over their estimated useful lives. Software and technology intangible assets are amortized either on a straight-line basis over their estimated useful lives or over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows, as deemed appropriate.

The estimated annual amortization expense related to finite-lived intangible assets as of December 28, 2018, is as follows:



Fiscal Year Ending
	(in millions)
2019	$	171
2020	126
2021	106
2022	92
2023	73
2024 and thereafter	80
	$	648

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 and other factors.

Property Plant and Equipment

12 Months Ended

Dec. 28, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 12—Property, Plant and Equipment

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



	December 28, 2018			December 29, 2017
	(in millions)
Computers and other equipment	$	233		$	194
Leasehold improvements	206			171
Buildings and improvements	56			54
Land	40			49
Office furniture and fixtures	36			34
Construction in progress	15			44
	586			546
Less: accumulated depreciation and amortization	(349		)	(314		)
	$	237		$	232

Depreciation expense was $56 million, $55 million and $38 million for fiscal 2018, 2017 and 2016, respectively.

During the quarter ended March 30, 2018, the Company determined that the carrying amount of a real estate property may not be recoverable and as a result recorded an impairment charge of $7 million, which was recorded within Corporate. On July 23, 2018, the Company entered into a Contract of Sale to sell and lease back the property. The term of the lease is expected to end during fiscal 2020. See "Note 27—Subsequent Events" regarding the completion of the sale.

Fair Value Measurements

12 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 13—Fair Value Measurements

The Company's financial instruments measured on a recurring basis at fair value consisted of the following:



	December 28, 2018				December 29, 2017
	Carrying value		Fair value		Carrying value		Fair value
	(in millions)
Financial assets:
Derivatives	$	—	$	—	$	37	$	37
Financial liabilities:
Derivatives	35		35		—		—

The Company's derivatives consisted of the fair value interest rate swaps on its $450 million fixed rate 4.45% senior secured notes maturing in December 2020, and cash flow interest rate swaps on $1.5 billion of the Company's variable rate senior secured term loans (see "Note 14—Derivative Instruments"). The fair value of the fair value interest rate swaps and cash flow interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve and the underlying interest rate, respectively (Level 2 inputs).

The Company's financial instruments measured on a recurring basis at fair value also includes its defined benefit plan assets (Level 2 inputs). See "Note 21—Retirement Plans" for further details on these investments.

The carrying amounts of the Company's financial instruments, other than derivatives, which include cash equivalents, accounts receivable, other short-term 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 7—Divestitures" and "Note 22—Leases") of $24 million and $63 million as of December 28, 2018, and December 29, 2017, respectively, approximates fair value as the stated interest rates within the agreements are consistent with the current market rates used in notes with similar terms in the market (Level 2 inputs).

As of December 28, 2018, and December 29, 2017, the fair value of debt was $3.1 billion and $3.2 billion, respectively, and the carrying amount was $3.1 billion for both periods (see "Note 15—Debt"). The fair value of long-term debt is determined based on current interest rates available for debt with terms and maturities similar to the Company's existing debt arrangements (Level 2 inputs).

During fiscal 2018 and 2017, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis, other than a real estate property measured at fair value (Level 2) on March 30, 2018, which resulted in an impairment charge of $7 million (see "Note 12—Property, Plant and Equipment").

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments

12 Months Ended

Dec. 28, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 14—Derivative Instruments

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



	Asset derivatives
	Balance sheet line item	December 28, 2018		December 29, 2017
		(in millions)
Cash flow interest rate swaps	Other assets	$	—	$	37



	Liability derivatives
	Balance sheet line item	December 28, 2018		December 29, 2017
		(in millions)
Fair value interest rate swaps	Other long-term liabilities	$	3	$	—
Cash flow interest rate swaps	Other long-term liabilities	32		—
		$	35	$	—

The fair value adjustment to the fair value interest rate swap and the underlying debt was a decrease of $3 million for both the year ended December 28, 2018, and December 29, 2017.

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

Fair Value Hedges

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

The interest rate swaps were accounted for as a fair value hedge of the Notes and qualified for the shortcut method of hedge accounting, which allows for the assumption of no ineffectiveness. The resulting changes in the fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying debt (the hedged item) (see "Note 15—Debt").

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

The following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:



	Carrying amount of hedged item				Cumulative amount of fair value adjustment included within the hedged item
Balance sheet line item of hedged item	December 28, 2018		December 29, 2017		December 28, 2018			December 29, 2017
	(in millions)
Long-term debt, net of current portion	$	447	$	449	$	(3	)	$	—

Cash Flow Hedges

The Company has interest rate swap agreements to hedge the cash flows of a portion of its 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, the Company will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate. In August 2016, September 2017 and February 2018, the Company entered into interest rate swap agreements to hedge the cash flows of $1.1 billion, $300 million and $250 million of its Variable Rate Loans, respectively. The interest rate swap agreements on $1.1 billion of the Company's Variable Rate Loans had a maturity date of December 2021 and a fixed interest rate of 1.08%. The interest rate swap agreements on $300 million and $250 million of the Company's Variable Rate Loans both had a maturity date of August 2022 and fixed interest rates of 1.66% and 2.59%, respectively. The counterparties to these agreements are financial institutions.

In September 2018, the Company terminated its existing interest rate swaps. The net derivative gain of $60 million related to the discontinued cash flow hedge will continue to be reported within accumulated other comprehensive (loss) income and will be reclassified into earnings over the remaining life of the original hedge as the hedged variable rate debt impacts earnings.

Additionally, in September 2018, the Company entered into new interest rate swap agreements to hedge the cash flows of $1.5 billion of the Company's Variable Rate Loans. These interest rate swap agreements have a maturity date of August 2025 and a fixed interest rate of 3.00%.

The interest rate swap transactions were accounted for as cash flow hedges. The gain/loss on the swap is reported as a component of other comprehensive income/loss and is reclassified into earnings when the interest payments on the underlying hedged items impact earnings. A qualitative assessment of hedge effectiveness is performed on a quarterly basis, unless facts and circumstances indicate the hedge may no longer be highly effective.

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



	Year Ended
	December 28, 2018			December 29, 2017		December 30, 2016
	(in millions)
Total interest expense, net presented in the consolidated statements of income in which the effects of cash flow hedges are recorded	$	138		$	140	$	86

Amount recognized in other comprehensive (loss) income	(7		)	10		22
Amount reclassified from accumulated other comprehensive (loss) income to interest expense, net	(6		)	—		2

The Company expects to reclassify gains of $12 million from accumulated other comprehensive (loss) income into earnings during the next 12 months.

Debt

12 Months Ended

Dec. 28, 2018

Debt Disclosure [Abstract]

Debt

Note 15—Debt

The Company's debt consisted of the following:



	Stated interest rate		Effective interest rate		December 28, 2018⁽¹⁾		December 29, 2017⁽¹⁾
					(in millions)
Senior secured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	$	447	$	449
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Senior secured term loans:
$690 million Term Loan A, due August 2023	3.88	%	4.31	%	617		644
$310 million Term Loan A, due August 2023	3.88	%	4.33	%	258		270
$1,131 million Term Loan B, due August 2025	4.13	%	4.48	%	1,085		1,101
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
Notes payable and capital leases due on various dates through fiscal 2022	0%-5.55%		Various		97		27
Total long-term debt					3,124		3,111
Less: current portion					72		55
Total long-term debt, net of current portion					$	3,052	$	3,056

⁽¹⁾

The carrying amounts of the senior secured term loans and notes and unsecured notes as of December 28, 2018, and December 29, 2017, include the remaining principal outstanding of $3,073 million and $3,129 million, respectively, less total unamortized debt discounts and deferred debt issuance costs of $43 million and $45 million, respectively, less $3 million related to the fair value of the interest rate swaps (see "Note 14—Derivative Instruments") as of December 28, 2018.

On August 16, 2016, in connection with the acquisition of the IS&GS Business, Leidos, Inc. secured a new term loan of $690 million. 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 6—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.

In February 2017, Leidos amended the terms of its senior secured $1.1 billion Term Loan B. As a result, the margin on Term Loan B was reduced by 50 basis points to 2.25% and the six month call provision was extended an additional six months. The repricing of the term loan became effective on February 16, 2017.

In August 2017, Leidos amended its senior secured term loans and revolving credit facility agreements. These amendments reduced the applicable margins for the revolving credit facility and Term Loans A and B each by 25 basis points. Additionally, the maturity date for the revolving credit facility, $690 million Term Loan A and $310 million Term Loan A were each extended by one year to August 2022, and the scheduled increase in quarterly principal payments for both of these term loans was delayed one year to March 2020. The amendments also include a collateral suspension provision that will permit the secured credit agreements to become unsecured under certain circumstances.

In March 2018, Leidos amended the terms of its senior secured $1.1 billion Term Loan B. As a result, the margin on Term Loan B was reduced by 25 basis points to 1.75%. The repricing of the term loan became effective March 15, 2018.

In August 2018, Leidos amended its senior secured term loans and revolving credit facility agreements. These amendments modified the margin range for the revolving credit facility and Term Loan A loans and extended their maturity dates by one year to August 2023. The amendments also extended the maturity date of Term Loan B by two years to August 2025 and delayed the scheduled increase in quarterly principal payments for Term Loan A by one year to March 2021. Additionally, the senior secured leverage ratio calculation was amended and now excludes the lesser of $350 million and the Company's unrestricted cash and cash equivalents.

In November 2018, Leidos amended the terms of its senior secured $310 million Term Loan A and $1.1 billion Term Loan B. As a result, this transaction assigned the remaining Leidos Innovations Corporation term loan debts to Leidos, Inc. No other terms of the original or amended Term Loan A or Term Loan B loan agreements were changed.

The interest rate on the Company's senior secured term loans is determined based on the LIBOR rate plus a margin. The margin for the Term Loan A loans ranges from 1.25% to 2.00%, depending on the Company's senior secured leverage ratio, and is computed on a quarterly basis. At December 28, 2018, the current margin on Term Loan A was 1.50% and the margin on Term Loan B was 1.75%.

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 ratio, 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 due in fiscal 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 net leverage ratio. The required debt prepayment amount is equal to 50% of the excess cash flow calculated. No additional debt prepayment is required if the senior secured net leverage ratio is equal to or less than 2.00.

During fiscal 2018 and 2017, the Company made $59 million and $209 million of principal payments, respectively, on its long-term debt, which was primarily related to its senior secured term loans. This activity included $46 million and $76 million of required quarterly payments on its term loans during fiscal 2018 and fiscal 2017, respectively. In April 2018, the Company made a required debt prepayment of $10 million on its senior secured term loans. The prepayment was a result of the annual excess cash flow calculation for fiscal 2017. In addition to the required quarterly payments, the Company prepaid $130 million and $275 million of its term loans during fiscal 2017 and fiscal 2016, respectively. Associated with these early repayments, $2 million and $5 million of unamortized debt discount and deferred financing costs were written off during fiscal 2017 and fiscal 2016, respectively, and recorded to "Other expense, net" in the Company's consolidated statements of income.

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

In connection with the senior secured term loans, the Company recognized $53 million of debt discount and debt issuance costs in fiscal 2016, 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. The Company also recognized $15 million of origination costs related to the new credit facility (see "Revolving Credit Facility" below), which were capitalized within "Other assets" in the consolidated balance sheets. In connection with the fiscal 2018 and fiscal 2017 amendments, the Company incurred $8 million and $4 million of debt issuance costs, respectively, related to the senior secured term loans and revolving credit facility, which were recorded using the same methodology as the original debt issuance costs discussed above. Amortization for the senior secured term loans and notes, unsecured notes and revolving credit facility was $10 million, $13 million and $6 million for fiscal 2018, 2017 and 2016, respectively.

The senior secured term loans and notes, unsecured notes and revolving credit facility 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 28, 2018.

Future minimum payments of debt are as follows:



Fiscal Year Ending
	(in millions)
2019	$	79
2020	509
2021	181
2022	102
2023	619
2024 and thereafter	1,677
Total principal payments	3,167
Less: unamortized debt discount and issuance costs	(43		)
Total long-term debt	$	3,124

Revolving Credit Facility

Leidos, Inc. has a revolving credit facility providing up to $750 million in secured borrowing capacity at interest rates determined based upon the LIBOR rate plus a margin that is subject to step-down provisions based on the Company's senior secured leverage ratio. The maturity date of the credit facility is August 2023. During fiscal 2018 and 2017, there were no borrowings under the 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, minus the lesser of $350 million and the Company's unrestricted cash and cash equivalents, 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 28, 2018.

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 events, material monetary judgments, change of control events and the material inaccuracy of the Company’s representations and warranties.

Notes Payable

During fiscal 2018, the Company recognized a $79 million note payable related to the sale and leaseback arrangement of its San Diego, California properties (see "Note 22—Leases" for further information).

During fiscal 2017, the Company recognized $21 million of notes payable related to secured borrowings associated with certain contracts within its commercial energy business.

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 28, 2018

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Note 16—Accumulated Other Comprehensive (Loss) Income

Changes in the components of accumulated other comprehensive (loss) income were as follows:



	Foreign currency translation adjustments			Unrecognized (loss) gain on derivative instruments			Pension adjustments			Total accumulated other comprehensive (loss) income
	(in millions)
Balance at January 1, 2016	$	—		$	(4	)	$	(4	)	$	(8	)
Other comprehensive (loss) income	(8		)	26			1			19
Taxes	1			(10		)	2			(7		)
Reclassification from accumulated other comprehensive (loss) income	—			(2		)	(6		)	(8		)
Balance at December 30, 2016	(7		)	10			(7		)	(4		)
Other comprehensive income	36			10			9			55
Taxes	(12		)	(6		)	—			(18		)
Balance at December 29, 2017	17			14			2			33
Cumulative adjustments related to ASU adoptions (Note 2)	3			10			(4		)	9
Balance at December 30, 2017	20			24			(2		)	42
Other comprehensive loss	(65		)	(7		)	(1		)	(73		)
Taxes	4			3			—			7
Reclassification from accumulated other comprehensive (loss) income	—			(6		)	—			(6		)
Balance at December 28, 2018	$	(41	)	$	14		$	(3	)	$	(30	)

The change in the foreign currency translation adjustments is due to the impact of the foreign exchange rate movement between the U.S. dollar and British pound and Australian dollar.

Reclassifications for unrecognized (loss) gain on derivative instruments are associated with outstanding debt and are recorded in "Interest expense, net" on the consolidated statements of income. The loss during fiscal 2018 is due to a change in Company's interest rate swap agreements that hedge the Company's Variable Rate Loans. See "Note 14—Derivative Instruments" for more information on the Company's interest rate swap agreements.

Reclassifications for pension adjustments are recorded in "Selling, general and administrative expenses" on the consolidated statements of income.

Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 28, 2018

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Composition of Certain Financial Statement Captions

Note 17—Composition of Certain Financial Statement Captions



Balance Sheet	December 28, 2018		December 29, 2017
	(in millions)
Other current assets:
Transition costs and project assets⁽¹⁾⁽²⁾	$	145	$	87
Pre-contract costs	41		64
Other⁽⁴⁾	357		302
	$	543	$	453
Other assets:
Equity method investments⁽³⁾	$	26	$	37
Other⁽⁴⁾	156		217
	$	182	$	254
Accounts payable and accrued liabilities:
Accrued liabilities	$	650	$	747
Accounts payable	547		557
Deferred revenue	276		293
Other	3		42
	$	1,476	$	1,639
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	248	$	245
Accrued vacation	225		236
Other	—		6
	$	473	$	487

⁽¹⁾During the year ended December 28, 2018, the Company recognized $146 million of amortization related to its transition costs and project assets. The total balance of transition costs and project assets on the Company's consolidated balance sheets at December 28, 2018 and December 29, 2017, was $167 million and $100 million, respectively.

⁽²⁾As of December 29, 2017, the Company reclassified $28 million of "Prepaid expenses" to "Transition costs and project assets" for comparability purposes.

⁽³⁾Balances are net of $29 million and $30 million of dividends received during fiscal 2018 and fiscal 2017, respectively, that were recorded in cash flows provided by operating activities of continuing operations on the consolidated statements of cash flows.

⁽⁴⁾Balance represents items that are not individually significant to disclose separately.



	Year Ended
Income Statement	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Interest expense, net:
Interest expense	$	(145	)	$	(148	)	$	(96	)
Interest income	7			8			10
	$	(138	)	$	(140	)	$	(86	)
Other expense, net
Promissory note impairment	$	—		$	(33	)	$	—
Gain (loss) on foreign currencies	2			5			(18		)
Other (expense) income, net	(3		)	2			5
	$	(1	)	$	(26	)	$	(13	)

Earnings Per Share (EPS)

12 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

Note 18—Earnings Per Share ("EPS")

Basic EPS is computed by dividing net income attributable to Leidos common stockholders by the basic weighted average number of shares outstanding. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted EPS by application of the treasury stock method, only in periods in which such effect would have been dilutive for the period.

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.

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



	Year Ended
	December 28, 2018	December 29, 2017	December 30, 2016
	(in millions)
Basic weighted average number of shares outstanding	151	152	102
Dilutive common share equivalents—stock options and other stock awards	2	2	2
Diluted weighted average number of shares outstanding	153	154	104

Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute diluted EPS. For the year ended December 28, 2018, there was a total of 1 million of outstanding stock options and vesting stock awards that were anti-dilutive.

Share repurchases

In the fourth quarter of 2018, the Company entered into an uncollared Accelerated Share Repurchase ("ASR") agreement with a financial institution to repurchase shares of its outstanding common stock. The Company paid $250 million to the financial institution and received an initial and final delivery of 3.3 million and 0.7 million shares, respectively. The purchase was recorded to "Additional paid-in capital" in the consolidated balance sheets. All shares delivered were immediately retired.

The delivery of 4 million shares of Leidos common stock reduced the Company's outstanding shares used to determine the weighted average shares outstanding for purposes of calculating basic and diluted EPS at December 28, 2018.

During fiscal 2018, the Company also made open market repurchases of its common stock for an aggregate purchase price of $167 million. All shares repurchased were immediately retired.

There were no open market repurchases during fiscal 2017 and fiscal 2016.

Stock-Based Compensation

12 Months Ended

Dec. 28, 2018

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

Stock-Based Compensation

Note 19—Stock-Based Compensation

Plan Summaries

As of December 28, 2018, the Company had stock-based compensation awards outstanding under the following plans: the 2017 Omnibus Incentive Plan, 2006 Equity Incentive Plan, as amended, and the 2006 Employee Stock Purchase Plan, as amended ("ESPP"). Leidos issues new shares upon the issuance of the vesting of stock units or exercising of stock options under these plans.

In fiscal 2017, stockholders approved the 2017 Omnibus Incentive Plan which provides the Company and its affiliates' employees, directors and consultants the opportunity to receive various types of stock-based compensation awards, such as stock options, restricted stock units and performance-based awards, as well as cash awards. Service-based awards granted under the plan prior to fiscal 2015 generally vested or became 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 or cliff vest in three years. As of December 28, 2018, 5.0 million shares of Leidos' stock were reserved for future issuance under the 2017 Omnibus Incentive Plan and the 2006 Equity Incentive Plan.

The Company offers eligible employees the opportunity to defer restricted stock units into an equity-based deferred equity compensation plan, the Key Executive Stock Deferral Plan ("KESDP"). Prior to 2013 the Company offered an additional opportunity for deferrals into the Management Stock Compensation Plan ("MSCP"). 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. Restricted stock units deferred under the KESDP are counted against the total shares available for future issuance under the 2017 Omnibus Incentive Plan. All awards under the MSCP are fully vested and the plan does not provide for a maximum number of shares available for future issuance.

The Company's ESPP allows eligible employees to purchase shares of Leidos' stock at a discount of up to 15% of the fair market value on the date of purchase. During the first half of fiscal 2018, fiscal 2017 and 2016, the discount was 5% of the fair market value on the date of purchase, thereby resulting in the ESPP being non-compensatory. Effective the second half of fiscal 2018, the Company increased the discount to 10% of the fair market value on the date of purchase, resulting in the ESPP being compensatory. During fiscal 2018 and 2017, $11 million and $10 million, respectively, was received from ESPP plan participants for the issuance of Leidos' stock. A total of 4.6 million shares remain available for future issuance under the ESPP.

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



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Total stock-based compensation expense	$	44	$	43	$	35
Tax benefits recognized from stock-based compensation	11		17		14

Stock Options

Stock options are granted with exercise prices equal to the fair market value of Leidos' common stock on the date of grant and for terms not greater than ten years. Stock options 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 to employees are 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 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 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. The post-acquisition volatility reflected an updated peer group mix.

During fiscal 2017, the Company ceased the usage of peer group volatility, as an input into its blended approach to measure expected volatility, and increased the reliance on historical volatility. The revised blended approach includes the Company's weighted average historical and implied volatilities. The Company continued the use of this approach during fiscal 2018.

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. Leidos utilizes the simplified method for the expected term, which represents an appropriate period of time that the options granted are expected to remain outstanding between the weighted-average vesting period and end of the respective contractual term. 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 the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016 (Grants after acquisition)			December 30, 2016 (Grants before acquisition)
Weighted average grant-date fair value	$	13.85		$	11.53		$	10.33		$	9.54
Expected term (in years)	4.7			4.7			4.7			4.8
Expected volatility	26.6		%	29.7		%	37.9		%	29.9		%
Risk-free interest rate	2.6		%	1.9		%	1.2		%	1.3		%
Dividend yield	2.0		%	2.5		%	2.7		%	2.5		%

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 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
Options granted	0.5		53.51
Options forfeited or expired	(0.2	)	35.72
Options exercised	(0.8	)	27.23			23
Outstanding at December 29, 2017	2.8		$	34.38	3.9	$	86
Options granted	0.4		63.75
Options forfeited or expired	(0.2	)	49.65
Options exercised	(0.6	)	30.40			24
Outstanding at December 28, 2018	2.4		39.41		3.8	36
Exercisable at December 28, 2018	1.4		$	31.72	2.8	$	29
Vested and expected to vest in the future as of December 28, 2018	2.4		$	39.15	3.7	$	36

As of December 28, 2018, there was $6 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 2.0 years. Tax benefits from stock options exercised for fiscal 2018, 2017 and 2016 were $6 million, $7 million and $1 million respectively.

Restricted Stock Units and Awards

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

In connection with the Transactions (see "Note 6—Acquisitions"), the Company issued 0.6 million replacement restricted stock units 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 from the date of acquisition.

Restricted stock units and awards 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 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
Awards granted	0.8		53.91
Awards forfeited	(0.3	)	45.89
Awards vested	(1.0	)	41.02
Unvested stock awards at December 29, 2017	2.0		$	44.96
Awards granted	0.6		64.05
Awards forfeited	(0.2	)	42.67
Awards vested	(0.4	)	44.60
Unvested stock awards at December 28, 2018	2.0		$	50.85

As of December 28, 2018, 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 restricted stock units that vested in fiscal 2018, 2017 and 2016, was $22 million, $33 million and $43 million, respectively. In addition, the fair value of dividend equivalents with respect to restricted stock units that vested in fiscal 2018, 2017 and 2016 was $1 million, $13 million and $8 million, respectively.

Performance-Based Stock Awards

Historically, the Company granted performance-based stock awards to certain officers and key employees of the Company under the 2006 Equity Incentive Plan. During fiscal 2017, upon stockholder approval, the Company started granting performance-based stock awards to these individuals under the 2017 Omnibus Incentive Plan. Under both plans, 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 awards granted during fiscal 2018, 2017 and 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 2018, 2017 and 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 1, 2016	0.2		$	43.35
Awards granted	0.2		45.62
Unvested at December 30, 2016	0.4		$	44.44
Awards granted	0.2		57.94
Awards vested	(0.1	)	42.85
Unvested at December 29, 2017	0.5		$	50.34
Awards granted	0.3		61.43
Awards forfeited	(0.1	)	61.81
Awards vested	(0.2	)	44.04
Unvested at December 28, 2018	0.5		$	57.36

The weighted average grant date fair value for performance-based stock, excluding those with a market condition, during fiscal 2018, 2017 and 2016 was $63.76, $53.58 and $45.83, respectively. The weighted average grant date fair value for performance-based stock with market conditions that were granted during fiscal 2018, 2017 and 2016, was $71.50, $62.30 and $45.80, respectively, and was calculated using the Monte Carlo simulation.

The Monte Carlo simulation assumptions used for the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
Expected volatility	25.37		%	27.19		%	31.73		%
Risk free rate of return	2.35		%	1.53		%	1.01		%
Weighted average grant date stock price	$	65.00		$	53.73		$	46.54

As of December 28, 2018, there was $11 million of unrecognized compensation cost, net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.7 years. The fair value of performance-based stock awards that vested in fiscal 2018 and 2017 was $13 million and $4 million, respectively. There were no performance-based stock awards that vested in fiscal 2016.

Income Taxes

12 Months Ended

Dec. 28, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 20—Income Taxes

In December 2017, the U.S. government enacted the Tax Act which made broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; and (4) limiting the deductibility of certain executive compensation.

As a result of the Company’s preliminary analysis of the impact of the Tax Act, a discrete net tax benefit of $115 million was recorded in fiscal 2017, which primarily consisted of a net benefit for the corporate rate reduction of $119 million. This rate reduction resulted in a corresponding net decrease of deferred tax liabilities. During fiscal 2018, the Company completed its assessment of the impact of the Tax Act during the one-year measurement period. As a result, the Company increased its preliminary estimate of the deemed repatriation tax by $5 million and decreased its preliminary estimate of the limitation on the deductibility of certain executive compensation by $1 million, resulting in a net increase of $4 million to fiscal 2018 income tax expense.

Less than 10% of the Company's income before income taxes for fiscal 2018, 2017 and 2016 was earned outside of the United States. The provision for income taxes for the periods presented included the following:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Current:
Federal and foreign	$	54		$	130		$	88
State	23			30			16
Deferred:
Federal and foreign	(39		)	(141		)	(29		)
State	(10		)	10			(3		)
Total	$	28		$	29		$	72

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for the periods presented was as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Amount computed at the statutory federal income tax rate	$	128		$	138		$	111
State income taxes, net of federal tax benefit	10			31			8
Change in valuation allowance for deferred tax assets	(49		)	7			(8		)
Taxable conversion of a subsidiary	(17		)	—			—
Stock basis in subsidiary held for sale	(16		)	—			—
Change in statutory federal tax rate	(10		)	(125		)	—
Excess tax benefits from stock-based compensation	(9		)	(12		)	(8		)
Research and development credits	(9		)	(7		)	(4		)
Dividends paid to employee stock ownership plan	(2		)	(4		)	(38		)
Change in accruals for uncertain tax positions	1			—			1
Capitalized transaction costs	—			9			7
Impact of foreign operations	—			(4		)	—
Other	1			(4		)	3
Total	$	28		$	29		$	72
Effective income tax rate	4.6		%	7.4		%	22.6		%

The Company's effective tax rate for fiscal 2018 was favorably impacted primarily by a decrease in valuation allowances arising from the taxable conversion of a subsidiary and the utilization of capital losses, an increase in deferred tax assets related to stock basis of a subsidiary held for sale, excess tax benefits related to employee stock-based payment transactions and federal research tax credits.

The Company's effective tax rate for fiscal 2017 was favorably impacted primarily by the Tax Act's reduction of the federal corporate tax rate from 35% to 21% applied to the Company's fiscal 2017 year-end deferred tax balances and excess tax benefits related to employee stock-based payment transactions.

The Company's effective tax rate for fiscal 2016 was favorably impacted primarily by the tax deductibility of the special cash dividend, related to the Transactions described in “Note 6—Acquisitions,” on shares held by the Leidos retirement plan, excess tax benefits related to employee stock-based payment transactions and federal research tax credits, partially offset by the impact of certain capitalized transaction costs related to the Transactions.

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



	December 28, 2018			December 29, 2017
	(in millions)
Reserves	$	57		$	62
Accrued vacation and bonuses	48			54
Credits and net operating losses carryovers	31			33
Deferred compensation	25			22
Vesting stock awards	20			17
Deferred gain	20			—
Deferred rent and tenant allowances	18			10
Investments	18			2
Capital loss carryover	—			60
Other	13			18
Total deferred tax assets	250			278
Valuation allowance	(28		)	(83		)
Deferred tax assets, net of valuation allowance	222			195

Purchased intangible assets	(326		)	(340		)
Deferred revenue	(40		)	(34		)
Accumulated other comprehensive (loss) income	(6		)	(13		)
Employee benefit contributions	(4		)	(3		)
Partnership interest	(2		)	(17		)
Other	(14		)	(8		)
Total deferred tax liabilities	(392		)	(415		)
Net deferred tax liabilities	$	(170	)	$	(220	)

At December 28, 2018, the Company had state net operating losses of $131 million, which will begin to expire in fiscal 2019. The Company had state tax credits of $9 million, which will begin to expire in fiscal 2019. The Company expects to utilize $3 million and $18 million of these state tax credits and state net operating losses, respectively. The Company also had foreign net operating losses of $69 million. The Company expects to utilize $8 million of these foreign net operating losses.

Our valuation allowance for deferred tax assets was $28 million and $83 million as of December 28, 2018 and December 29, 2017, respectively. The valuation allowance decreased by $55 million primarily due to the taxable conversion of a subsidiary and the utilization of capital losses from the sale of the San Diego properties.

The Company's income tax balance sheet items are included in the accompanying consolidated balance sheets as follows:



	December 28, 2018		December 29, 2017
	(in millions)
Other current assets:
Prepaid income taxes and tax refunds receivable	$	43	$	54
Income taxes payable	3		4
Deferred tax liabilities	170		220
Other long-term liabilities:
Unrecognized tax benefits	3		9

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 $1 million of accrued interest and penalties for each respective period, were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Unrecognized tax benefits at beginning of year	$	10		$	9		$	11
Additions for tax positions related to current year	3			2			1
Additions for tax positions related to prior years	—			2			4
Reductions for tax positions related to prior years	(7		)	(3		)	(7		)
Unrecognized tax benefits at end of year	$	6		$	10		$	9
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	6		$	7		$	4

At December 28, 2018, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $7 million, $3 million of which were classified as other long-term liabilities on the Company's consolidated balance sheets. At December 29, 2017, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $11 million, $7 million of which were classified as other long-term liabilities on the Company's consolidated balance sheets. 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.

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 year ended December 30, 2016. With a few exceptions, as of December 28, 2018, the Company is no longer subject to state, local, or foreign examinations by the tax authorities for fiscal years ending on or before January 30, 2015.

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 $3 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. 28, 2018
Retirement Benefits [Abstract]
Retirement Plans	Note 21—Retirement Plans Defined Contribution Plans The Company sponsors a defined contribution plan, 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. This plan allows eligible participants to contribute a portion of their income through payroll deductions and the Company may also make discretionary contributions. Company contributions were $94 million for fiscal 2018 and 2017, and $68 million for fiscal 2016. Deferred Compensation Plans The Company maintains three deferred compensation plans, the Keystaff Deferral Plan ("KDP"), the KESDP and the MSCP (the "Plans"), 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 a portion of their salary, and all or a portion of certain bonuses, including restricted stock unit awards. Directors may also elect to defer their director fees and retainers in addition to their restricted stock unit awards. Deferred balances in the Plans are paid in lump sum or installments upon retirement, termination or the elected specified date. 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 with the participant assuming all risks related to future returns of their contributions. Under the KESDP, eligible participants may also elect to defer in share units all or a portion of certain cash bonuses and restricted stock unit awards granted under the previous 2006 Equity Incentive Plan and the current 2017 Omnibus Incentive Plan (see "Note 19—Stock-Based Compensation"). Under the MSCP, restricted stock share units that are deferred are fully vested and no further deferrals into the plan are made. The Company makes no contributions to the accounts of KESDP or MSCP participants. Benefits from the KESDP and MSCP are payable in shares of Leidos common stock held in a rabbi trust for the purpose of funding benefit payments to KESDP and MSCP participants. The Company sponsored a 401(k) Excess Deferral Plan ("Excess Plan") for the benefit of certain management or highly compensated employees that allowed participants to elect to defer up to 20% of their eligible salary once the participant had met the IRS contribution limit imposed on the Leidos, Inc. Retirement Plan. The Company made matching contributions to participants who received a reduced Company contribution in the Leidos, Inc. Retirement Plan due to the participant's deferral of salary into the Excess Plan which were 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 former employees 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 28, 2018, and December 29, 2017, was $103 million and $120 million, respectively. The decrease in the projected benefit obligation was primarily due to the impact of a stronger U.S. dollar, settlements during fiscal 2018 and a gain resulting from changes in assumptions used in the valuation. The fair value of plan assets as of December 28, 2018, and December 29, 2017, was $115 million and $129 million, respectively. The plan funding status was overfunded $12 million and $9 million as of December 28, 2018, and December 29, 2017, respectively, and included in other assets. 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.

Leases

12 Months Ended

Dec. 28, 2018

Leases [Abstract]

Leases

Note 22—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 for the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Gross rental expense	$	163		$	181		$	107
Less: sublease income	(1		)	(3		)	(2		)
Net rental expense	$	162		$	178		$	105

The increase in rental expense from fiscal 2016 to fiscal 2017 was primarily due to the acquisition of the IS&GS Business.

Future minimum lease commitments and sublease receipts, under non-cancelable operating leases in effect at December 28, 2018, are as follows:



Fiscal Year Ending	Operating lease commitment		Sublease receipts
	(in millions)
2019	$	144	$	3
2020	114		1
2021	83		1
2022	71		—
2023	55		—
2024 and thereafter	246		—
Total	$	713	$	5

As of December 28, 2018, the Company had capital lease obligations of $3 million that are payable over the next year (see "Note 15—Debt").

On January 24, 2018, the Company entered into a lease agreement with its current lessor for office space in a building to be constructed to function as the Company's new corporate headquarters in Reston, Virginia. The Company will occupy the space for an initial term of 148 months and rent expense will be $11 million for the first lease year, with an annual rent expense increase of 2.5%. The Company currently expects construction to be completed and to take occupancy of the building by April 1, 2020, at which point the Company's lease agreements for its current corporate headquarters will terminate.

Sale and Leaseback Agreements

Former Headquarters

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.

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 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.

San Diego Properties

In December 2018, the Company entered into and closed on a sales and leaseback agreement relating to two buildings and the adjacent land in San Diego, California for consideration of $79 million, net of selling costs. The Company received cash proceeds of $14 million and recognized a short-term receivable for the remaining $65 million of consideration. The sale of the properties is being accounted for as a financing transaction. The net consideration of $79 million was recorded as a note payable (see "Note 15—Debt") expected to be paid over the next 3 years.

Supplementary Cash Flow Information

12 Months Ended

Dec. 28, 2018

Supplemental Cash Flow Information [Abstract]

Supplementary Cash Flow Information

Note 23—Supplementary Cash Flow Information and Restricted Cash

Supplementary cash flow information, including non-cash activities, for the periods presented was as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Supplementary cash flow information:
Cash paid for interest	$	133	$	133	$	90
Cash paid for income taxes, net of refunds	70		214		47

Non-cash investing activity:
Stock issued for acquisition of the IS&GS Business	$	—	$	—	$	2,938

Non-cash financing activity:
Real estate financing transaction	$	65	$	—	$	—
Dividends declared	3		3		21
Notes payable and capital lease obligations	—		27		—

The following is a reconciliation of cash and cash equivalents, as reported within the consolidated balance sheets, to the total cash, cash equivalents and restricted cash, as reported within the consolidated statements of cash flows:



	December 28, 2018		December 29, 2017
	(in millions)
Cash and cash equivalents	$	327	$	390
Restricted cash	42		32
Total cash, cash equivalents and restricted cash	$	369	$	422

The restricted cash is recorded within "Other current assets" in the Company's consolidated balance sheets.

The restricted cash primarily comprises of advances from customers that are restricted as to use for certain expenditures related to that customer's contract.

Business Segments

12 Months Ended

Dec. 28, 2018

Segment Reporting [Abstract]

Business Segments

Note 24—Business Segments

The Company's operations and reportable segments are organized around the markets served and the nature of the products and services provided to customers in those markets. The Company defines its reportable segments based on the way the chief operating decision maker ("CODM"), currently its Chairman and Chief Executive Officer, manages the operations of the Company for purposes of allocating resources and assessing performance.

During fiscal 2017, the Company completed its business reorganization, which resulted in identification of three reportable segments (Defense Solutions, Civil and Health). Additionally, the Company separately presents the costs associated with corporate functions as Corporate. The Company commenced operating and reporting under the new organization structure effective the beginning of fiscal 2017. The segment information for fiscal 2016 has been recast to reflect the Company's current reportable segments structure.

Defense Solutions is focused on rapidly deploying agile, cost-effective solutions to meet the ever-changing missions of the Company's customers in the areas of intelligence surveillance and reconnaissance, enterprise IT, integrated systems, cybersecurity and global services. Defense 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 platforms, data analytics, logistics and cybersecurity solutions, as well as intelligence analysis and operations support to critical missions around the world.

The Civil business is focused on seamlessly integrating and protecting physical, digital and data domains. By applying leading science, effective technologies and business acumen, the Company's talented employees help customers maximize their performance and take on the connected world with data-driven insights, improved efficiencies and technological advantages.

The Health business is focused on delivering effective and affordable solutions to federal and commercial customers that are responsible for the health and wellbeing of people worldwide including service members and veterans. These solutions enable customers to deliver on the health mission of providing high quality, cost effective care and are accomplished through the integration of information technology, engineering, health and life sciences, clinical insights and health policy. The capabilities the Health business provides are principally encapsulated by four major areas of activity: complex systems integration, managed health services, enterprise IT transformation and life sciences.

Corporate includes the operations of various corporate activities, certain corporate expense items that are not reimbursed by the Company's U.S. government customers and certain other expense items excluded from a reportable segment's performance.

The following table summarizes business segment information for the periods presented:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Revenues:
Defense Solutions	$	4,948		$	4,959		$	3,843
Civil	3,429			3,409			2,082
Health	1,817			1,802			1,117
Corporate	—			—			1
Total revenues	$	10,194		$	10,170		$	7,043

Operating income (loss):
Defense Solutions	$	347		$	307		$	312
Civil	290			226			146
Health	230			228			110
Corporate	(118		)	(202		)	(151		)
Total operating income	$	749		$	559		$	417

Amortization of intangible assets:
Defense Solutions	$	68		$	108		$	17
Civil	87			132			39
Health	46			41			28
Total amortization of intangible assets	$	201		$	281		$	84

The financial performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other expense, net," and "Income tax expense," as reported in the consolidated financial statements are not allocated to the Company's segments. Under U.S. government CAS, 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.

Asset information by segment is not a key measure of performance used by the CODM.

Less than 10% of the Company's revenues and tangible long-lived assets are generated by or owned by entities outside of the United States (see "Note 4—Revenues" for international revenues by segment). As such, additional 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 periods for the periods presented were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
U.S. Government	85	%	84	%	81	%
U.S. DoD	47	%	47	%	56	%
U.S. Army	13	%	13	%	14	%

Contingencies	12 Months Ended
Contingencies	Dec. 28, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 25—Contingencies Legal Proceedings MSA Joint Venture On November 10, 2015, MSA received a final decision by 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 FAR. Lockheed Martin Integrated Technology LLC (now known as Leidos Integrated Technology LLC) is a member entity of MSA. 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. On February 8, 2019, the U.S. Attorney's office filed a complaint in the United States District Court for the Eastern District of Washington against MSA, Lockheed Martin Corporation, Lockheed Martin Services, Inc. and a Lockheed Martin employee. The complain alleges violations of the False Claims Act, the Anti-Kickback Act, breach of contract with DoE, among other things. The U.S. Attorney's office had previously advised that a parallel criminal investigation was open, although no subjects or targets of the investigation had been identified. The U.S. Attorney's office has informed MSA that it has closed the criminal investigation. 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 collection of $32 million of that demand, pending resolution of the appeal and without prejudice to MSA's position that it is not liable for any of the DOE's $64 million reimbursement claim. The Company has agreed to indemnify Jacobs Group and Centerra Group, LLC for any liability MSA incurs in this matter. Under the terms of the Separation Agreement, Lockheed Martin 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 28, 2018, and December 29, 2017, the Company has a liability of $39 million and an indemnification asset of $1 million recorded in the consolidated balance sheets. Securities Litigation Between February and April 2012, alleged stockholders filed three putative securities class actions against the Company and several former executives relating to the Company's contract to develop and implement an automated time and attendance and workforce management system for certain agencies of the City of New York ("CityTime"). One case was withdrawn and two cases were consolidated in the U.S. District Court for the Southern District of New York in In Re: SAIC, Inc. Securities Litigation. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company's revenues, operating income and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying Leidos' stock at an inflated price. The District Court dismissed the plaintiffs' claims with prejudice and without leave to replead. The plaintiffs then appealed to the United States Court of Appeals for the Second Circuit, which issued an opinion affirming in part, and vacating in part, the District Court's ruling. The Company filed a petition for a writ of certiorari in the U.S. Supreme Court, which was granted on March 27, 2017. The District Court granted the Company's request to stay all proceedings, including discovery, pending the outcome at the Supreme Court. In September 2017, the parties engaged in mediation resulting in an agreement to settle all remaining claims for an immaterial amount to be paid by the Company. The amounts payable by the Company are covered by an insurance policy. The terms of the proposed settlement remain subject to court approval. Greek Government Contract In 2003, the Company entered into an FFP contract with the Hellenic Republic of Greece to provide a Command, Control, Communications, Coordination and Integration System. The Greek government disputed the contract balance owed to the Company and has not paid the Company's final invoice. In 2013, the Company received an arbitral award by the International Chamber of Commerce for €39 million, which has not been satisfied. In January 2017, the U.S. District Court granted an order to enforce the arbitration award and entered judgment in the Company's favor. The Company has commenced enforcement proceedings against the Greek government in several jurisdictions. Separately, the Greek government has sought to annul the award through separate litigation in the Greek courts, and such a challenge is currently pending. 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. Arbitration Proceeding The Company is a party to an arbitration proceeding involving a claim by Lockheed Martin for indemnification for $56 million in taxes attributable to deferred revenue recognized as a result of the Transactions. Based on the arguments advanced to date, the Company believes that the claim appears to be without merit and intends to vigorously defend itself in arbitration. The Company does not believe that a material loss is probable, and has therefore not recorded any liability for this matter. We expect a final decision by the arbitration panel to be issued during the first half of fiscal 2019. 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 Contingencies VirnetX, Inc. On September 29, 2017, the federal trial court in the Eastern District of Texas entered a final judgment in the VirnetX v. Apple case referred to as the Apple I case. The court found that Apple willfully infringed the VirnetX patents at issue in the Apple I case and awarded enhanced damages, bringing the total award against Apple to over $343 million in pre-interest damages. The court subsequently awarded an additional sum of over $96 million for costs, attorneys' fees and interest, bringing the total award to VirnetX in the Apple I case to over $439 million. Apple appealed the judgment in the Apple I case with the U.S. Court of Appeals for the Federal Circuit and on January 15, 2019, the court affirmed the $439 million judgment. It is expected that Apple will appeal this decision. On April 10, 2018, a jury trial concluded in an additional patent infringement case brought by VirnetX against Apple, referred to as the Apple II case, in which the jury returned a verdict against Apple for infringement and awarded VirnetX damages in the amount of over $502 million. On April 11, 2018, in a second phase of the Apple II trial, the jury found Apple's infringement to be willful. On August 30, 2018, the federal trial court in the Eastern District of Texas entered a final judgment and rulings on post-trial motions in the Apple II case. The court affirmed the jury’s verdict of over $502 million and granted VirnetX’s motions for supplemental damages, a sunset royalty and royalty rate of $1.20 per infringing device, along with pre-judgment and post-judgment interest and costs. The court denied VirnetX’s motions for enhanced damages, attorneys’ fees and an injunction. The court also denied Apple’s motions for judgment as a matter of law and for a new trial. An additional sum of over $93 million for costs and pre-judgment interest was subsequently agreed upon pursuant to a court order, bringing the total award to VirnetX in the Apple II case to over $595 million. Apple has filed an appeal of the judgment in the Apple II case with the U.S. Court of Appeals for the Federal Circuit. Under its agreements with VirnetX, the Company would receive 25% of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, the verdicts in these cases remain subject to appeal. In addition, the patents at issue in these cases are subject to U.S. Patent and Trademark Office post-grant inter partes review and/or reexamination proceedings and related appeals, which may result in all or part of these patents being invalidated or the claims of the patents being limited. Thus, no assurances can be given when or if the Company will receive any proceeds in connection with these jury awards. In addition, if the Company receives any proceeds, the Company is required to pay a royalty to the customer who paid for the development of the technology. The Company does not have any assets or liabilities recorded in connection with this matter as of December 28, 2018. Government Investigations and Reviews The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to its role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States. Adverse findings could have a material effect on the Company's business, financial position, results of operations and cash flows due to its reliance on government contracts. During fiscal 2018, pursuant to the resolution of certain government accounting matters, including audits by the DCAA, the Company recorded a net reduction of $19 million to its accrued liabilities. As of December 28, 2018, indirect cost audits by the DCAA remain open for fiscal 2013 and subsequent fiscal years. Although the Company has recorded contract revenues based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company cannot predict the outcome of any ongoing or future audits or reviews and adjustments and, if future adjustments exceed the Company's estimates, its profitability would be adversely affected. As of December 28, 2018, the Company believes it has adequately reserved for potential adjustments from audits or reviews of contract costs.

Commitments	12 Months Ended
Commitments	Dec. 28, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 26—Commitments The Company has outstanding letters of credit of $73 million as of December 28, 2018, principally related to performance guarantees on contracts. The Company also has outstanding surety bonds with net exposure of $44 million as of December 28, 2018, 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 expiring over the next three years.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 28, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 27—Subsequent Events On December 31, 2018, the Company closed the sales agreement relating to the sale and leaseback of the building and land at its Gaithersburg, Maryland property. The Company received proceeds of $31 million, net of selling costs, for the property, which had a carrying value of $31 million at closing.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Reporting Periods

Leidos' fiscal year ends on the Friday nearest the end of December. Fiscal 2018, 2017 and 2016 each included 52 weeks.

Use of Estimates

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.

Business Combinations

Investments

Variable Interest Entities

Divestitures

Restructuring Expenses

Revenue Recognition

Contract Costs

Pre-contract Costs

Transition Costs

Project Assets

Changes In Estimates On Contracts

The changes primarily relate to revisions of variable consideration, including award fees, and revisions to estimates at completion resulting from changes in contract scope, mitigation of contract risks or due to true-ups of contract estimates at the end of contract performance.

Changes in Estimates on Contracts

The impact on diluted EPS attributable to Leidos common stockholders is calculated using the Company's statutory tax rate.

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

Cash and Cash Equivalents

Restricted Cash

Receivables

When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded.

Concentration of Credit Risk

Inventories

Goodwill

Intangible Assets



		Estimated useful lives (in years)
Program and contract intangibles		6-11
Backlog		1
Customer relationships		8
Software and technology		4-15

Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, Plant and Equipment



	Depreciation method	Estimated useful lives (in years)
Computers and other equipment	Straight-line or declining-balance	3-10
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 and fixtures	Straight-line or declining-balance	6-9

Fair Value Measurements

The fair value of financial instruments is determined based on quoted market prices, if available, or management's best estimate (see "Financial Instruments" below).

Financial Instruments

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

Stock-Based Compensation

Foreign Currency

Accounting Standards Updates Adopted and Issued But Not Yet Adopted

Accounting Standards Updates Adopted

During fiscal 2018, the Company adopted the following Accounting Standards Updates ("ASU"):

ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities

ASU 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

The cumulative effect of the changes made to the Company's consolidated balance sheet for the adoptions of the ASUs above was as follows:



	Balance at December 29, 2017			Adjustments due to ASU 2014-09			Adjustments due to ASU 2017-12			Adjustments due to ASU 2018-02			Balance at December 30, 2017
	(in millions)
Assets:
Receivables, net	$	1,831		$	4		$	—		$	—		$	1,835
Other current assets	453			(3		)	—			—			450
Equity:
Accumulated deficit	$	(7	)	$	1		$	(3	)	$	(6	)	$	(15	)
Accumulated other comprehensive income	33			—			3			6			42

Accounting Standards Updates Issued But Not Yet Adopted

ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2018-20, Leases (Topic 842)

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement (Subtopic 350-40)

Accounting Standards (Tables)

12 Months Ended

Dec. 28, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of cumulative effect of the changes made to the Company’s consolidated balance sheet for the adoption of the ASUs

The cumulative effect of the changes made to the Company's consolidated balance sheet for the adoptions of the ASUs above was as follows:



	Balance at December 29, 2017			Adjustments due to ASU 2014-09			Adjustments due to ASU 2017-12			Adjustments due to ASU 2018-02			Balance at December 30, 2017
	(in millions)
Assets:
Receivables, net	$	1,831		$	4		$	—		$	—		$	1,835
Other current assets	453			(3		)	—			—			450
Equity:
Accumulated deficit	$	(7	)	$	1		$	(3	)	$	(6	)	$	(15	)
Accumulated other comprehensive income	33			—			3			6			42

The effects to the consolidated financial statements at and as of December 28, 2018, as a result of applying ASC 606, rather than previous GAAP ("ASC 605"), were the following:

Balance Sheet



	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Receivables, net	$	1,877	$	1,872
Other current assets	543		545
Accumulated earnings (deficit)	372		369

Income Statement



	Year Ended December 28, 2018
	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Revenues	$	10,194	$	10,189
Cost of revenues	8,690		8,688
Operating income	749		746

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Schedule of changes in estimates on contracts for the periods presented

Changes in estimates on contracts for the periods presented were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions, except for per share amounts)
Net favorable impact to income before income taxes	$	105	$	103	$	37
Impact on diluted EPS attributable to Leidos common stockholders	$	0.52	$	0.41	$	0.22

Schedule of finite-lived intangible assets

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



		Estimated useful lives (in years)
Program and contract intangibles		6-11
Backlog		1
Customer relationships		8
Software and technology		4-15

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	3-10
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 and fixtures	Straight-line or declining-balance	6-9

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



	December 28, 2018			December 29, 2017
	(in millions)
Computers and other equipment	$	233		$	194
Leasehold improvements	206			171
Buildings and improvements	56			54
Land	40			49
Office furniture and fixtures	36			34
Construction in progress	15			44
	586			546
Less: accumulated depreciation and amortization	(349		)	(314		)
	$	237		$	232

Revenues (Tables)

12 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Schedule of cumulative effect of the changes made to the Company’s consolidated balance sheet for the adoption of the ASUs

The cumulative effect of the changes made to the Company's consolidated balance sheet for the adoptions of the ASUs above was as follows:



	Balance at December 29, 2017			Adjustments due to ASU 2014-09			Adjustments due to ASU 2017-12			Adjustments due to ASU 2018-02			Balance at December 30, 2017
	(in millions)
Assets:
Receivables, net	$	1,831		$	4		$	—		$	—		$	1,835
Other current assets	453			(3		)	—			—			450
Equity:
Accumulated deficit	$	(7	)	$	1		$	(3	)	$	(6	)	$	(15	)
Accumulated other comprehensive income	33			—			3			6			42

The effects to the consolidated financial statements at and as of December 28, 2018, as a result of applying ASC 606, rather than previous GAAP ("ASC 605"), were the following:

Balance Sheet



	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Receivables, net	$	1,877	$	1,872
Other current assets	543		545
Accumulated earnings (deficit)	372		369

Income Statement



	Year Ended December 28, 2018
	As Reported (ASC 606)		As Adjusted (ASC 605)
	(in millions)
Revenues	$	10,194	$	10,189
Cost of revenues	8,690		8,688
Operating income	749		746

Schedule of disaggregated revenue

Disaggregated revenues by customer-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD	$	4,318	$	128	$	386	$	4,832
Other government agencies⁽¹⁾	194		2,412		1,276		3,882
Commercial and non-U.S. customers	436		889		155		1,480
Total	$	4,948	$	3,429	$	1,817	$	10,194

⁽¹⁾ Includes non-DoD federal government agencies, state and local government agencies.

Disaggregated revenues by contract-type were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,417	$	1,863	$	189	$	5,469
Firm-fixed-price	1,031		1,004		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	500		562		494		1,556
Total	$	4,948	$	3,429	$	1,817	$	10,194

Disaggregated revenues by geographic location were as follows:



	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,572	$	2,876	$	1,817	$	9,265
International	376		553		—		929
Total	$	4,948	$	3,429	$	1,817	$	10,194

Contract Asset and Liabilities (Tables)

12 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Components of contract assets and contract liabilities

The components of contract assets and contract liabilities consisted of the following:



	Balance sheet line item	December 28, 2018		December 30, 2017⁽¹⁾
		(in millions)
Contract assets - current:
Unbilled receivables⁽²⁾	Receivables, net	$	818	$	844

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	276	$	293

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	10	$	17

⁽²⁾ Balances exclude $381 million and $234 million determined to be billable at December 28, 2018, and December 30, 2017, respectively.

Acquisitions (Tables)

12 Months Ended

Dec. 28, 2018

Business Combinations [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

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



Cash	$	25
Receivables, net	938
Other current assets	73
Property, plant and equipment	87
Intangible assets	1,194
Other assets	58
Accounts payable and accrued liabilities	(733		)
Accrued payroll and employee benefits	(186		)
Long-term debt, current portion	(23		)
Deferred tax liabilities	(328		)
Long-term debt, net of current portion	(1,780		)
Other long-term liabilities	(45		)
Total identifiable net liabilities assumed	(720		)
Non-controlling interest	(13		)
Goodwill	3,752
Purchase price	$	3,019

Schedule of expenses related to the acquisition and integration of the IS&GS Business

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



Value of common stock issued to Lockheed Martin stockholders⁽¹⁾	$	2,929
Equity consideration for replacement awards⁽²⁾	9
Working capital adjustments⁽³⁾	81
Purchase price	$	3,019

⁽³⁾In January 2018, the Company finalized its net working capital at $105 million. The additional $24 million was recorded as acquisition costs in the consolidated statements of income.

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



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Acquisition costs	$	—	$	25	$	44
Integration costs	29		77		46
Total acquisition and integration costs	$	29	$	102	$	90

Schedule of intangibles

The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period:



	Weighted average amortization period	Fair value
	(in years)	(in millions)
Program and contract intangibles⁽¹⁾	9.7	$	1,011
Backlog	1.8	157
Software and technology⁽¹⁾	4.6	26
Total	8.6	$	1,194

⁽¹⁾ The weighted average amortization period is estimated based on the projected economic benefits associated with these assets.

Schedule of 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.



	Year Ended
(unaudited)	December 30, 2016
	(in millions, except for per share amounts)
Revenues	$	10,443
Net income	340
Net income attributable to Leidos common stockholders	335
Earnings per share:
Basic	$	2.23
Diluted	2.20

Divestitures (Tables)

12 Months Ended

Dec. 28, 2018

Discontinued Operations and Disposal Groups [Abstract]

Schedule of major classes of assets and liabilities classified as held for sale

The major classes of assets and liabilities classified as held for sale were as follows:



	December 28, 2018
	(in millions)
Receivables, net	$	16
Other current assets	5
Property, plant and equipment, net	3
Intangible assets, net	5
Goodwill	57
Deferred tax assets	6
Total assets held for sale	$	92

Accounts payable and accrued liabilities	$	16
Accrued payroll and employee benefits	4
Other long-term liabilities	3
Total liabilities held for sale	$	23

- 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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+ Details

Restructuring Expenses (Tables)

12 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Schedule of restructuring expenses

The restructuring expenses related to this program were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Severance costs	$	2	$	18	$	10
Lease termination expenses	6		19		2
Restructuring expenses related to the IS&GS Business	$	8	$	37	$	12

Schedule of restructuring liability

The related restructuring liability related to this program was as follows:



	Severance Costs			Lease Termination Expenses			Total
	(in millions)
Balance at December 30, 2016	$	7		$	1		$	8
Charges	18			19			37
Cash payments	(20		)	(16		)	(36		)
Balance at December 29, 2017	5			4			9
Charges	2			6			8
Cash payments	(7		)	(8		)	(15		)
Balance at December 28, 2018	$	—		$	2		$	2

Receivables (Tables)

12 Months Ended

Dec. 28, 2018

Receivables [Abstract]

Schedule of components of receivables

The components of receivables, net consisted of the following:



	December 28, 2018			December 29, 2017
	(in millions)
Billed receivables⁽¹⁾	$	1,067		$	771
Unbilled receivables	818			1,074
Allowance for doubtful accounts	(8		)	(14		)
	$	1,877		$	1,831

Goodwill (Tables)

12 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill by Segment

The following table presents changes in the carrying amount of goodwill by reportable segment:



	Defense Solutions			Civil			Health			Total
	(in millions)
Goodwill at December 30, 2016⁽¹⁾	$	1,954		$	1,731		$	937		$	4,622
Adjustment to original purchase price allocation	94			259			(16		)	337
Foreign currency translation adjustments	7			8			—			15
Goodwill at December 29, 2017⁽¹⁾	2,055			1,998			921			4,974
Foreign currency translation adjustments	(40		)	(11		)	—			(51		)
Transfers to assets held for sale	—			(57		)	—			(57		)
Adjustment to goodwill	—			(6		)	—			(6		)
Goodwill at December 28, 2018⁽¹⁾	$	2,015		$	1,924		$	921		$	4,860

⁽¹⁾Carrying amount includes accumulated impairment losses of $369 million and $117 million within the Health and Civil segments, respectively.

Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

Intangible assets consisted of the following:



	December 28, 2018							December 29, 2017
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Program and contract intangibles	$	1,003	$	(374	)	$	629	$	1,013	$	(187	)	$	826
Software and technology	93		(74		)	19		89		(64		)	25
Customer relationships	4		(4		)	—		4		(3		)	1
Backlog	—		—			—		158		(158		)	—
Total finite-lived intangible assets	1,100		(452		)	648		1,264		(412		)	852
Indefinite-lived intangible assets:
Trade names	4		—			4		4		—			4
Total intangible assets	$	1,104	$	(452	)	$	652	$	1,268	$	(412	)	$	856

Schedule ofestimated annual amortization expense related to finite-lived intangible assets

The estimated annual amortization expense related to finite-lived intangible assets as of December 28, 2018, is as follows:



Fiscal Year Ending
	(in millions)
2019	$	171
2020	126
2021	106
2022	92
2023	73
2024 and thereafter	80
	$	648

Property Plant and Equipment (Tables)

12 Months Ended

Dec. 28, 2018

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment, net

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	3-10
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 and fixtures	Straight-line or declining-balance	6-9

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



	December 28, 2018			December 29, 2017
	(in millions)
Computers and other equipment	$	233		$	194
Leasehold improvements	206			171
Buildings and improvements	56			54
Land	40			49
Office furniture and fixtures	36			34
Construction in progress	15			44
	586			546
Less: accumulated depreciation and amortization	(349		)	(314		)
	$	237		$	232

Fair Value Measurements (Tables)

12 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Schedule of financial instruments measured on a recurring basis at fair value

The Company's financial instruments measured on a recurring basis at fair value consisted of the following:



	December 28, 2018				December 29, 2017
	Carrying value		Fair value		Carrying value		Fair value
	(in millions)
Financial assets:
Derivatives	$	—	$	—	$	37	$	37
Financial liabilities:
Derivatives	35		35		—		—

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 28, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of the Company's interest rate swaps

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



	Asset derivatives
	Balance sheet line item	December 28, 2018		December 29, 2017
		(in millions)
Cash flow interest rate swaps	Other assets	$	—	$	37



	Liability derivatives
	Balance sheet line item	December 28, 2018		December 29, 2017
		(in millions)
Fair value interest rate swaps	Other long-term liabilities	$	3	$	—
Cash flow interest rate swaps	Other long-term liabilities	32		—
		$	35	$	—

Schedule of amounts recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges

The following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:



	Carrying amount of hedged item				Cumulative amount of fair value adjustment included within the hedged item
Balance sheet line item of hedged item	December 28, 2018		December 29, 2017		December 28, 2018			December 29, 2017
	(in millions)
Long-term debt, net of current portion	$	447	$	449	$	(3	)	$	—

Schedule of the effect of the Company's cash flow hedges on other comprehensive (loss) income and earnings

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



	Year Ended
	December 28, 2018			December 29, 2017		December 30, 2016
	(in millions)
Total interest expense, net presented in the consolidated statements of income in which the effects of cash flow hedges are recorded	$	138		$	140	$	86

Amount recognized in other comprehensive (loss) income	(7		)	10		22
Amount reclassified from accumulated other comprehensive (loss) income to interest expense, net	(6		)	—		2

Debt (Tables)

12 Months Ended

Dec. 28, 2018

Debt Disclosure [Abstract]

Schedule of company's debt

The Company's debt consisted of the following:



	Stated interest rate		Effective interest rate		December 28, 2018⁽¹⁾		December 29, 2017⁽¹⁾
					(in millions)
Senior secured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	$	447	$	449
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Senior secured term loans:
$690 million Term Loan A, due August 2023	3.88	%	4.31	%	617		644
$310 million Term Loan A, due August 2023	3.88	%	4.33	%	258		270
$1,131 million Term Loan B, due August 2025	4.13	%	4.48	%	1,085		1,101
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
Notes payable and capital leases due on various dates through fiscal 2022	0%-5.55%		Various		97		27
Total long-term debt					3,124		3,111
Less: current portion					72		55
Total long-term debt, net of current portion					$	3,052	$	3,056

⁽¹⁾

Schedule of future minimum payments of debt

Future minimum payments of debt are as follows:



Fiscal Year Ending
	(in millions)
2019	$	79
2020	509
2021	181
2022	102
2023	619
2024 and thereafter	1,677
Total principal payments	3,167
Less: unamortized debt discount and issuance costs	(43		)
Total long-term debt	$	3,124

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 28, 2018

Equity [Abstract]

Schedule of changes in the components of accumulated other comprehensive (loss) income

Changes in the components of accumulated other comprehensive (loss) income were as follows:



	Foreign currency translation adjustments			Unrecognized (loss) gain on derivative instruments			Pension adjustments			Total accumulated other comprehensive (loss) income
	(in millions)
Balance at January 1, 2016	$	—		$	(4	)	$	(4	)	$	(8	)
Other comprehensive (loss) income	(8		)	26			1			19
Taxes	1			(10		)	2			(7		)
Reclassification from accumulated other comprehensive (loss) income	—			(2		)	(6		)	(8		)
Balance at December 30, 2016	(7		)	10			(7		)	(4		)
Other comprehensive income	36			10			9			55
Taxes	(12		)	(6		)	—			(18		)
Balance at December 29, 2017	17			14			2			33
Cumulative adjustments related to ASU adoptions (Note 2)	3			10			(4		)	9
Balance at December 30, 2017	20			24			(2		)	42
Other comprehensive loss	(65		)	(7		)	(1		)	(73		)
Taxes	4			3			—			7
Reclassification from accumulated other comprehensive (loss) income	—			(6		)	—			(6		)
Balance at December 28, 2018	$	(41	)	$	14		$	(3	)	$	(30	)

Composition of Certain Financial Statement Captions (Tables)

12 Months Ended

Dec. 28, 2018

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Schedule of Certain Financial Statement Captions



Balance Sheet	December 28, 2018		December 29, 2017
	(in millions)
Other current assets:
Transition costs and project assets⁽¹⁾⁽²⁾	$	145	$	87
Pre-contract costs	41		64
Other⁽⁴⁾	357		302
	$	543	$	453
Other assets:
Equity method investments⁽³⁾	$	26	$	37
Other⁽⁴⁾	156		217
	$	182	$	254
Accounts payable and accrued liabilities:
Accrued liabilities	$	650	$	747
Accounts payable	547		557
Deferred revenue	276		293
Other	3		42
	$	1,476	$	1,639
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	$	248	$	245
Accrued vacation	225		236
Other	—		6
	$	473	$	487

⁽²⁾As of December 29, 2017, the Company reclassified $28 million of "Prepaid expenses" to "Transition costs and project assets" for comparability purposes.

⁽⁴⁾Balance represents items that are not individually significant to disclose separately.



	Year Ended
Income Statement	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Interest expense, net:
Interest expense	$	(145	)	$	(148	)	$	(96	)
Interest income	7			8			10
	$	(138	)	$	(140	)	$	(86	)
Other expense, net
Promissory note impairment	$	—		$	(33	)	$	—
Gain (loss) on foreign currencies	2			5			(18		)
Other (expense) income, net	(3		)	2			5
	$	(1	)	$	(26	)	$	(13	)

Income Statement



	Year Ended
Income Statement	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Interest expense, net:
Interest expense	$	(145	)	$	(148	)	$	(96	)
Interest income	7			8			10
	$	(138	)	$	(140	)	$	(86	)
Other expense, net
Promissory note impairment	$	—		$	(33	)	$	—
Gain (loss) on foreign currencies	2			5			(18		)
Other (expense) income, net	(3		)	2			5
	$	(1	)	$	(26	)	$	(13	)

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

12 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Schedule of weighted average number of shares used to compute basic and diluted EPS

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



	Year Ended
	December 28, 2018	December 29, 2017	December 30, 2016
	(in millions)
Basic weighted average number of shares outstanding	151	152	102
Dilutive common share equivalents—stock options and other stock awards	2	2	2
Diluted weighted average number of shares outstanding	153	154	104

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2018

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

Schedule of stock-based compensation and related tax benefits recognized under all plans

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



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Total stock-based compensation expense	$	44	$	43	$	35
Tax benefits recognized from stock-based compensation	11		17		14

Schedule of Monte Carlo simulation assumptions

The Monte Carlo simulation assumptions used for the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
Expected volatility	25.37		%	27.19		%	31.73		%
Risk free rate of return	2.35		%	1.53		%	1.01		%
Weighted average grant date stock price	$	65.00		$	53.73		$	46.54

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016 (Grants after acquisition)			December 30, 2016 (Grants before acquisition)
Weighted average grant-date fair value	$	13.85		$	11.53		$	10.33		$	9.54
Expected term (in years)	4.7			4.7			4.7			4.8
Expected volatility	26.6		%	29.7		%	37.9		%	29.9		%
Risk-free interest rate	2.6		%	1.9		%	1.2		%	1.3		%
Dividend yield	2.0		%	2.5		%	2.7		%	2.5		%

Schedule of stock option activity

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 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
Options granted	0.5		53.51
Options forfeited or expired	(0.2	)	35.72
Options exercised	(0.8	)	27.23			23
Outstanding at December 29, 2017	2.8		$	34.38	3.9	$	86
Options granted	0.4		63.75
Options forfeited or expired	(0.2	)	49.65
Options exercised	(0.6	)	30.40			24
Outstanding at December 28, 2018	2.4		39.41		3.8	36
Exercisable at December 28, 2018	1.4		$	31.72	2.8	$	29
Vested and expected to vest in the future as of December 28, 2018	2.4		$	39.15	3.7	$	36

Schedule of restricted stock units activity

Restricted stock units and awards 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 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
Awards granted	0.8		53.91
Awards forfeited	(0.3	)	45.89
Awards vested	(1.0	)	41.02
Unvested stock awards at December 29, 2017	2.0		$	44.96
Awards granted	0.6		64.05
Awards forfeited	(0.2	)	42.67
Awards vested	(0.4	)	44.60
Unvested stock awards at December 28, 2018	2.0		$	50.85

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 1, 2016	0.2		$	43.35
Awards granted	0.2		45.62
Unvested at December 30, 2016	0.4		$	44.44
Awards granted	0.2		57.94
Awards vested	(0.1	)	42.85
Unvested at December 29, 2017	0.5		$	50.34
Awards granted	0.3		61.43
Awards forfeited	(0.1	)	61.81
Awards vested	(0.2	)	44.04
Unvested at December 28, 2018	0.5		$	57.36

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2018

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes for the periods presented included the following:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Current:
Federal and foreign	$	54		$	130		$	88
State	23			30			16
Deferred:
Federal and foreign	(39		)	(141		)	(29		)
State	(10		)	10			(3		)
Total	$	28		$	29		$	72

Schedule of reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for the periods presented was as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Amount computed at the statutory federal income tax rate	$	128		$	138		$	111
State income taxes, net of federal tax benefit	10			31			8
Change in valuation allowance for deferred tax assets	(49		)	7			(8		)
Taxable conversion of a subsidiary	(17		)	—			—
Stock basis in subsidiary held for sale	(16		)	—			—
Change in statutory federal tax rate	(10		)	(125		)	—
Excess tax benefits from stock-based compensation	(9		)	(12		)	(8		)
Research and development credits	(9		)	(7		)	(4		)
Dividends paid to employee stock ownership plan	(2		)	(4		)	(38		)
Change in accruals for uncertain tax positions	1			—			1
Capitalized transaction costs	—			9			7
Impact of foreign operations	—			(4		)	—
Other	1			(4		)	3
Total	$	28		$	29		$	72
Effective income tax rate	4.6		%	7.4		%	22.6		%

Deferred tax assets (liabilities)



	December 28, 2018			December 29, 2017
	(in millions)
Reserves	$	57		$	62
Accrued vacation and bonuses	48			54
Credits and net operating losses carryovers	31			33
Deferred compensation	25			22
Vesting stock awards	20			17
Deferred gain	20			—
Deferred rent and tenant allowances	18			10
Investments	18			2
Capital loss carryover	—			60
Other	13			18
Total deferred tax assets	250			278
Valuation allowance	(28		)	(83		)
Deferred tax assets, net of valuation allowance	222			195

Purchased intangible assets	(326		)	(340		)
Deferred revenue	(40		)	(34		)
Accumulated other comprehensive (loss) income	(6		)	(13		)
Employee benefit contributions	(4		)	(3		)
Partnership interest	(2		)	(17		)
Other	(14		)	(8		)
Total deferred tax liabilities	(392		)	(415		)
Net deferred tax liabilities	$	(170	)	$	(220	)

Summary of income tax related balance on balance sheet

The Company's income tax balance sheet items are included in the accompanying consolidated balance sheets as follows:



	December 28, 2018		December 29, 2017
	(in millions)
Other current assets:
Prepaid income taxes and tax refunds receivable	$	43	$	54
Income taxes payable	3		4
Deferred tax liabilities	170		220
Other long-term liabilities:
Unrecognized tax benefits	3		9

Schedule of changes in the unrecognized tax benefits

The changes in the unrecognized tax benefits, excluding $1 million of accrued interest and penalties for each respective period, were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Unrecognized tax benefits at beginning of year	$	10		$	9		$	11
Additions for tax positions related to current year	3			2			1
Additions for tax positions related to prior years	—			2			4
Reductions for tax positions related to prior years	(7		)	(3		)	(7		)
Unrecognized tax benefits at end of year	$	6		$	10		$	9
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	6		$	7		$	4

Leases (Tables)

12 Months Ended

Dec. 28, 2018

Leases [Abstract]

Schedule of rental expense for facilities and equipment for the periods

Rental expense for facilities and equipment for the periods presented were as follows:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Gross rental expense	$	163		$	181		$	107
Less: sublease income	(1		)	(3		)	(2		)
Net rental expense	$	162		$	178		$	105

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 28, 2018, are as follows:



Fiscal Year Ending	Operating lease commitment		Sublease receipts
	(in millions)
2019	$	144	$	3
2020	114		1
2021	83		1
2022	71		—
2023	55		—
2024 and thereafter	246		—
Total	$	713	$	5

Supplementary Cash Flow Information (Tables)

12 Months Ended

Dec. 28, 2018

Supplemental Cash Flow Information [Abstract]

Schedule of supplementary cash flow information, including non-cash activities

Supplementary cash flow information, including non-cash activities, for the periods presented was as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
	(in millions)
Supplementary cash flow information:
Cash paid for interest	$	133	$	133	$	90
Cash paid for income taxes, net of refunds	70		214		47

Non-cash investing activity:
Stock issued for acquisition of the IS&GS Business	$	—	$	—	$	2,938

Non-cash financing activity:
Real estate financing transaction	$	65	$	—	$	—
Dividends declared	3		3		21
Notes payable and capital lease obligations	—		27		—



	December 28, 2018		December 29, 2017
	(in millions)
Cash and cash equivalents	$	327	$	390
Restricted cash	42		32
Total cash, cash equivalents and restricted cash	$	369	$	422

Business Segments (Tables)

12 Months Ended

Dec. 28, 2018

Segment Reporting [Abstract]

Schedule of business segment information

The following table summarizes business segment information for the periods presented:



	Year Ended
	December 28, 2018			December 29, 2017			December 30, 2016
	(in millions)
Revenues:
Defense Solutions	$	4,948		$	4,959		$	3,843
Civil	3,429			3,409			2,082
Health	1,817			1,802			1,117
Corporate	—			—			1
Total revenues	$	10,194		$	10,170		$	7,043

Operating income (loss):
Defense Solutions	$	347		$	307		$	312
Civil	290			226			146
Health	230			228			110
Corporate	(118		)	(202		)	(151		)
Total operating income	$	749		$	559		$	417

Amortization of intangible assets:
Defense Solutions	$	68		$	108		$	17
Civil	87			132			39
Health	46			41			28
Total amortization of intangible assets	$	201		$	281		$	84

Schedule of percentages of total revenues

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 periods for the periods presented were as follows:



	Year Ended
	December 28, 2018		December 29, 2017		December 30, 2016
U.S. Government	85	%	84	%	81	%
U.S. DoD	47	%	47	%	56	%
U.S. Army	13	%	13	%	14	%

Nature of Operations and Basis of Presentation (Details) $ in Millions	12 Months Ended
	Dec. 29, 2017 USD ($) segment	Dec. 30, 2016 USD ($)	Jan. 26, 2018	Jan. 25, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of reportable segments \| segment	3
Mission Support Alliance, LLC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Ownership percentage (in percentage)			88.00%	47.00%
Selling, General and Administrative Expenses [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification adjustment	$ (185)	$ (88)
Cost of Revenue
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification adjustment	$ 185	$ 88
Mission Supporting Alliance \| Jacobs Engineering Group, Inc.'s Interest In Missiona Support Alliance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Voting interest (in percentage)			100.00%
Mission Supporting Alliance \| Mission Support Alliance, LLC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Voting interest (in percentage)			41.00%

Accounting Standards (Details) - USD ($) $ in Millions	Dec. 29, 2018	Dec. 28, 2018	Dec. 30, 2017	Dec. 29, 2017
Assets:
Receivables, net		$ 1,877	$ 1,835	$ 1,831
Other current assets			450	453
Equity:
Accumulated deficit		372	(15)	(7)
Accumulated other comprehensive income		$ (30)	42	$ 33
Adjustments due to ASU 2014-09
Assets:
Receivables, net			4
Other current assets			(3)
Equity:
Accumulated deficit			1
Accumulated other comprehensive income			0
Adjustments due to ASU 2017-12
Assets:
Receivables, net			0
Other current assets			0
Equity:
Accumulated deficit			(3)
Accumulated other comprehensive income			3
Adjustments due to ASU 2018-02
Assets:
Receivables, net			0
Other current assets			0
Equity:
Accumulated deficit			(6)
Accumulated other comprehensive income			$ 6
Scenario, Forecast \| Accounting Standards Update 2016-02
Equity:
Accumulated deficit	$ 65
ROU asset	350
Lease liabilities	$ 400

Summary of Significant Accounting Policies (Changes in Estimates on Contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Accounting Policies [Abstract]
Net favorable impact to income before income taxes	$ 105	$ 103	$ 37
Impact on diluted EPS attributable to Leidos common stockholders (usd per share)	$ 0.52	$ 0.41	$ 0.22

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 28, 2018 USD ($) reporting_unit	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)
Significant Accounting Policies [Line Items]
Contract with customer, performance obligation satisfied in previous period	$ 102
Internal research and development costs included in selling, general and administrative expenses	46	$ 42	$ 44
Accounts payable and accrued liabilities	$ 1,476	1,639
Number of reporting units \| reporting_unit	5
Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Accounts payable and accrued liabilities	$ 56	$ 169

Summary of Significant Accounting Policies (Intangibles) (Details)	12 Months Ended
	Dec. 28, 2018
Program and contract intangibles \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	6 years
Program and contract intangibles \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	11 years
Backlog
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	1 year
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	8 years
Software and technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	4 years
Software and technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	15 years

Summary of Significant Accounting Policies - Schedule of Depreciation using Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 28, 2018
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives (in years)	3 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
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

Revenues (Dual Reporting) (Details) - USD ($) $ in Millions	12 Months Ended
Revenues (Dual Reporting) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Dec. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivables, net	$ 1,877	$ 1,831		$ 1,835
Other current assets	543	453
Accumulated earnings (deficit)	372	(7)		$ (15)
Revenues	10,194	10,170	$ 7,043
Cost of revenues	8,690	8,738	6,103
Operating income	749	$ 559	$ 417
As Adjusted
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivables, net	1,872
Other current assets	545
Accumulated earnings (deficit)	369
Revenues	10,189
Cost of revenues	8,688
Operating income	$ 746

Revenues (Narrative) (Details) $ in Billions	Dec. 28, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations, which are expected to be recognized as revenue	$ 10.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-29
Revenue from Contract with Customer [Abstract]
Remaining performance obligations, which are expected to be recognized as revenue	$ 7.3
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-04
Revenue from Contract with Customer [Abstract]
Remaining performance obligations, which are expected to be recognized as revenue	$ 1.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02
Revenue from Contract with Customer [Abstract]
Remaining performance obligations, which are expected to be recognized as revenue	$ 1.8
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue

Revenues (Disaggregation of revenue) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Disaggregation of Revenue [Line Items]
Revenues	$ 10,194	$ 10,170	$ 7,043
United States
Disaggregation of Revenue [Line Items]
Revenues	9,265
International
Disaggregation of Revenue [Line Items]
Revenues	929
Cost-reimbursement and fixed-price-incentive fee
Disaggregation of Revenue [Line Items]
Revenues	5,469
Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	3,169
Time and materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	1,556
DoD
Disaggregation of Revenue [Line Items]
Revenues	4,832
Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	3,882
Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	1,480
Defense Solutions
Disaggregation of Revenue [Line Items]
Revenues	4,948
Defense Solutions \| United States
Disaggregation of Revenue [Line Items]
Revenues	4,572
Defense Solutions \| International
Disaggregation of Revenue [Line Items]
Revenues	376
Defense Solutions \| Cost-reimbursement and fixed-price-incentive fee
Disaggregation of Revenue [Line Items]
Revenues	3,417
Defense Solutions \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,031
Defense Solutions \| Time and materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	500
Defense Solutions \| DoD
Disaggregation of Revenue [Line Items]
Revenues	4,318
Defense Solutions \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	194
Defense Solutions \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	436
Civil
Disaggregation of Revenue [Line Items]
Revenues	3,429
Civil \| United States
Disaggregation of Revenue [Line Items]
Revenues	2,876
Civil \| International
Disaggregation of Revenue [Line Items]
Revenues	553
Civil \| Cost-reimbursement and fixed-price-incentive fee
Disaggregation of Revenue [Line Items]
Revenues	1,863
Civil \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,004
Civil \| Time and materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	562
Civil \| DoD
Disaggregation of Revenue [Line Items]
Revenues	128
Civil \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	2,412
Civil \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	889
Health
Disaggregation of Revenue [Line Items]
Revenues	1,817
Health \| United States
Disaggregation of Revenue [Line Items]
Revenues	1,817
Health \| International
Disaggregation of Revenue [Line Items]
Revenues	0
Health \| Cost-reimbursement and fixed-price-incentive fee
Disaggregation of Revenue [Line Items]
Revenues	189
Health \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,134
Health \| Time and materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	494
Health \| DoD
Disaggregation of Revenue [Line Items]
Revenues	386
Health \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	1,276
Health \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	$ 155

Contract Asset and Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017
Revenue from Contract with Customer [Abstract]
Contract assets - current	$ 818	$ 844
Contract liabilities - current	276	293
Contract liabilities - non-current	10	$ 17
Contract liability revenue recognized	$ 208

Acquisitions (Narrative) (Details) $ / shares in Units, shares in Millions					1 Months Ended	12 Months Ended
	Jan. 18, 2018 USD ($)	Aug. 22, 2016 USD ($)	Aug. 16, 2016 USD ($) director $ / shares shares	Aug. 15, 2016 $ / shares	Aug. 31, 2016 USD ($)	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($) $ / shares
Business Acquisition [Line Items]
Special cash dividend (usd per share) \| $ / shares								$ 13.64
Share price \| $ / shares			$ 51.69
Acquisition related costs							$ 24,000,000
Purchase accounting adjustment							337,000,000
Amortization of intangible assets						$ 10,000,000	14,000,000	$ 0
Depreciation						56,000,000	55,000,000	38,000,000
Non-controlling interest							13,000,000
Payment of tax indemnification liability						23,000,000	0	0
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Number of shares Lockheed Martin shareholders will receive from Leidos \| shares			77
Number of shares Lockheed Martin shareholders will receive from Leidos, as a percentage of Leidos common stock (in percentage)			50.50%
Percentage of common stock retained by the Leidos ( in percentage)			49.50%
Leidos Innovations Corporation indebtedness assumed			$ 1,800,000,000
Special cash dividend (usd per share) \| $ / shares				$ 13.64
Special dividend declared		$ 993,000,000			$ 993,000,000
Number of directors \| director			12
Increase in number of directors \| director			3
Net working capital	$ 105,000,000
Acquisition related costs								$ 44,000,000
Purchase accounting adjustment							337,000,000
Intangibles acquired			$ 1,194,000,000
Non-controlling interest			13,000,000
Goodwill, expected tax deductible amount			414,000,000
Cash flow from operating activities	(24,000,000)
Cash flow from investing activities	$ (81,000,000)
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
Selling, General and Administrative Expenses \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Amortization of intangible assets							7,000,000
Selling, General and Administrative Expenses and Cost of Revenue \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Depreciation							$ 7,000,000
Additional paid-in capital \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Stock issued (shares)		$ 29,000,000			$ 29,000,000
Secured Debt \| Term Loan A $690 Million due August 2022 \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Leidos Innovations Corporation indebtedness assumed			690,000,000
Line of Credit \| Revolving Credit Facility
Business Acquisition [Line Items]
Unsecured borrowing capacity						$ 750,000,000
Line of Credit \| Revolving Credit Facility \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Unsecured borrowing capacity			750,000,000
Restricted Stock Units (RSUs) \| Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Stock issued during the period (shares)			23,000,000
Compensation not yet recognized			$ 12,000,000

Acquisitions (Schedule of Purchase Price Allocations Related to Acquisitions) (Detail) - Information Systems & Global Solutions Business of Lockheed Martin - USD ($) $ in Millions		12 Months Ended
	Aug. 16, 2016	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Business Acquisition [Line Items]
Value of common stock issued to Lockheed Martin stockholders	$ 2,929
Equity consideration for replacement awards	9
Working capital adjustments	81
Purchase price	$ 3,019
Acquisition costs		$ 0	$ 25	$ 44
Integration costs		29	77	46
Total acquisition and integration costs		$ 29	$ 102	$ 90

Acquisitions (Assets and Liabilities Acquired) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Aug. 16, 2016
Business Acquisition [Line Items]
Non-controlling interest		$ (13)
Goodwill	$ 4,860	$ 4,974	$ 4,622
Information Systems & Global Solutions Business of Lockheed Martin
Business Acquisition [Line Items]
Cash				$ 25
Receivables, net				938
Other current assets				73
Property, plant and equipment				87
Intangible assets				1,194
Other assets				58
Accounts payable and accrued liabilities				(733)
Accrued payroll and employee benefits				(186)
Long-term debt, current portion				(23)
Deferred tax liabilities				(328)
Long-term debt, net of current portion				(1,780)
Other long-term liabilities				(45)
Total identifiable net liabilities assumed				(720)
Non-controlling interest				(13)
Goodwill				3,752
Purchase price				$ 3,019

Acquisitions (Intangibles acquired) (Details) - Information Systems & Global Solutions Business of Lockheed Martin $ in Millions	Aug. 16, 2016 USD ($)
Business Acquisition [Line Items]
Weighted average amortization period (in years)	8 years 7 months
Fair value	$ 1,194
Program and contract intangibles
Business Acquisition [Line Items]
Weighted average amortization period (in years)	9 years 8 months
Fair value	$ 1,011
Backlog
Business Acquisition [Line Items]
Weighted average amortization period (in years)	1 year 9 months
Fair value	$ 157
Software and technology
Business Acquisition [Line Items]
Weighted average amortization period (in years)	4 years 7 months
Fair value	$ 26

Acquisitions (Pro Forma Information) (Details) - Information Systems & Global Solutions Business of Lockheed Martin $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 30, 2016 USD ($) $ / shares
Business Acquisition [Line Items]
Revenues	$ 10,443
Net income	$ 340
Earnings per share:
Basic (in usd per share) \| $ / shares	$ 2.23
Diluted (in usd per share) \| $ / shares	$ 2.20
Leidos Holdings, Inc
Business Acquisition [Line Items]
Net income	$ 335

Divestitures (Discontinued Operations) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 92	$ 0
Total liabilities held for sale	23	$ 0
Civil \| Commercial Cybersecurity Business \| Disposal Group, Held-for-sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Receivables, net	16
Other current assets	5
Property, plant and equipment, net	3
Intangible assets, net	5
Goodwill	57
Deferred tax assets	6
Total assets held for sale	92
Accounts payable and accrued liabilities	16
Accrued payroll and employee benefits	4
Other long-term liabilities	3
Total liabilities held for sale	$ 23

Divestitures - (Additional Information) (Detail) $ in Millions			1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 23, 2018 USD ($)	Jul. 24, 2015 USD ($) extension	Apr. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) extension	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)	Jul. 12, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from disposition of business					$ 0	$ 0	$ 23
Collections on promissory note					40	2	4
Promissory note impairment					$ 0	33	0
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
Real estate financing transaction		$ 73				73
Note receivable, option to extend for one year period, number \| extension		3		3
Note receivable, interest rate, stated percentage (in percentage)		6.00%		6.00%
Note receivable, interest rate, stated percentage, if maturity is extended beyond July 24, 2017 (in percentage),		8.00%		8.00%
Stated interest rate, if maturity is extended beyond July 24, 2019 (in percentage)		9.00%
Note receivable, period of extension (in years)				1 year
Note receivable, deferred amount				$ 4
Collections on promissory note	$ 40					6	$ 6
Expected Settlement Amount						40		$ 40
Promissory note impairment						$ 33
Expected settlement amount, percentage above current settlement amount								50.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Civil \| One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from disposition of business			$ 23
Receivables, net			73
Disposal group, non-current assets			3
Disposal group, account payable and accrued liabilities			63
Other Operating Income (Expense) \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Civil \| One Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business			$ 3

Restructuring Expenses (Details) - IS&GS Acquisition - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Restructuring Cost and Reserve [Line Items]
Total expenses	$ 57
Restructuring Reserve [Roll Forward]
Opening balance	9	$ 8
Charges	8	37	$ 12
Cash payments	(15)	(36)
Closing balance	2	9	8
Severance costs
Restructuring Reserve [Roll Forward]
Opening balance	5	7
Charges	2	18	10
Cash payments	(7)	(20)
Closing balance	0	5	7
Lease termination expenses
Restructuring Reserve [Roll Forward]
Opening balance	4	1
Charges	6	19	2
Cash payments	(8)	(16)
Closing balance	$ 2	$ 4	$ 1

Receivables (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 30, 2017	Dec. 29, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed receivables	$ 1,067		$ 771
Unbilled receivables	818		1,074
Allowance for doubtful accounts	(8)		(14)
Accounts receivable, net	1,877		$ 1,831
Adjustments due to ASU 2014-09
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reclasses to receivable	$ 381	$ 234

Goodwill (Schedule of Changes in Goodwill by Segment) (Detail) $ in Millions	12 Months Ended
	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($) segment	Dec. 30, 2016 USD ($)
Goodwill [Line Items]
Number of reportable segments \| segment		3
Goodwill [Roll Forward]
Beginning balance, Goodwill	$ 4,974	$ 4,622
Adjustment to original purchase price allocation		337
Foreign currency translation adjustments	(51)	15
Transfers to assets held for sale	(57)
Adjustment to goodwill	(6)
Ending balance, Goodwill	4,860	4,974
Defense Solutions
Goodwill [Roll Forward]
Beginning balance, Goodwill	2,055	1,954
Adjustment to original purchase price allocation		94
Foreign currency translation adjustments	(40)	7
Transfers to assets held for sale	0
Adjustment to goodwill	0
Ending balance, Goodwill	2,015	2,055
Civil
Goodwill [Roll Forward]
Beginning balance, Goodwill	1,998	1,731
Adjustment to original purchase price allocation		259
Foreign currency translation adjustments	(11)	8
Transfers to assets held for sale	(57)
Adjustment to goodwill	(6)
Ending balance, Goodwill	1,924	1,998
Goodwill impairment charges	117	117	$ 117
Health
Goodwill [Roll Forward]
Beginning balance, Goodwill	921	937
Adjustment to original purchase price allocation		(16)
Foreign currency translation adjustments	0	0
Transfers to assets held for sale	0
Adjustment to goodwill	0
Ending balance, Goodwill	921	921
Goodwill impairment charges	369	$ 369	$ 369
Adjustment \| Overstatement in purchase price accounting
Goodwill [Roll Forward]
Accounts payable	$ 6

Intangible Assets (Components of Intangibles) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 1,100	$ 1,264
Accumulated amortization	(452)	(412)
Net carrying value	648	852
Total intangible assets, Gross carrying value	1,104	1,268
Total intangible assets, Net carrying value	652	856
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4	4
Program and contract intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	1,003	1,013
Accumulated amortization	(374)	(187)
Net carrying value	629	826
Software and technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	93	89
Accumulated amortization	(74)	(64)
Net carrying value	19	25
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	4	4
Accumulated amortization	(4)	(3)
Net carrying value	0	1
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	0	158
Accumulated amortization	0	(158)
Net carrying value	$ 0	$ 0

Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 201	$ 281	$ 84

Intangible Assets (Amortization of Intangibles) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 171
2020	126
2021	106
2022	92
2023	73
2024 and thereafter	80
Net carrying value	$ 648	$ 852

Property Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 30, 2018	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 586	$ 546
Less: accumulated depreciation and amortization		(349)	(314)
Property, plant and equipment, net		237	232
Depreciation		56	55	$ 38
Asset impairment charges		7	0	$ 4
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		233	194
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		206	171
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		56	54
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		40	49
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		36	34
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 15	$ 44
Corporate
Property, Plant and Equipment [Line Items]
Asset impairment charges	$ 7

Fair Value Measurements (Details) - USD ($)	3 Months Ended	12 Months Ended
Fair Value Measurements (Details) - USD ($)	Mar. 30, 2018	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Financial liabilities:
Asset impairment charges		$ 7,000,000	$ 0	$ 4,000,000
Corporate
Financial liabilities:
Asset impairment charges	$ 7,000,000
Designated as Hedging Instrument \| Interest rate swaps
Financial liabilities:
Hedged instrument, face amount		1,500,000,000
Designated as Hedging Instrument \| Interest rate swaps \| Notes Which Mature In December 2020
Financial liabilities:
Hedged instrument, face amount		$ 450,000,000
Designated as Hedging Instrument \| Interest rate swaps \| Senior Notes \| Notes Which Mature In December 2020
Financial liabilities:
Stated interest rate		4.45%
Carrying value
Financial assets:
Derivatives		$ 0	37,000,000
Financial liabilities:
Derivatives		35,000,000	0
Notes receivable, fair value disclosure		24,000,000	63,000,000
Fair value of notes payable and long-term debt		3,100,000,000	3,100,000,000
Fair value
Financial assets:
Derivatives		0	37,000,000
Financial liabilities:
Derivatives		35,000,000	0
Fair value of notes payable and long-term debt		$ 3,100,000,000	$ 3,200,000,000

Derivative Instruments (Interest rate swaps) (Details) - Interest rate swaps - Designated as Hedging Instrument - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 35	$ 0
Fair value interest rate swaps \| Other long-term liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives	3	0
Cash flow interest rate swaps \| Other assets
Derivatives, Fair Value [Line Items]
Asset derivatives	0	37
Cash flow interest rate swaps \| Other long-term liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 32	$ 0

Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 28, 2018	Dec. 28, 2018	Dec. 29, 2017	Feb. 28, 2018	Sep. 29, 2017	Aug. 31, 2016
Derivative [Line Items]
Gain to be recognized in the next 12 months		$ 12,000,000
Interest rate swaps \| Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount		1,500,000,000
Interest rate swaps \| Designated as Hedging Instrument \| Notes Which Mature In December 2020
Derivative [Line Items]
Fair value adjustment		3,000,000	$ 3,000,000
Hedged instrument, face amount		$ 450,000,000
Senior Notes \| Interest rate swaps \| Designated as Hedging Instrument \| Notes Which Mature In December 2020
Derivative [Line Items]
Stated interest rate		4.45%
Secured Debt \| Interest Rate Swap, Maturity Date August 2022 \| Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount					$ 300,000,000
Stated interest rate					1.66%
Secured Debt \| Interest Rate Swap, Maturity Date August 2022 \| Designated as Hedging Instrument \| Variable Rate Loan
Derivative [Line Items]
Hedged instrument, face amount				$ 250,000,000
Stated interest rate				2.59%
Secured Debt \| Interest rate swaps \| Designated as Hedging Instrument
Derivative [Line Items]
Hedged instrument, face amount						$ 1,100,000,000
Stated interest rate						1.08%
Secured Debt \| Interest Rate Swap, Maturity Date August 2025 \| Designated as Hedging Instrument
Derivative [Line Items]
Stated interest rate	3.00%
Secured Debt \| Interest Rate Swap, Maturity Date August 2025 \| Designated as Hedging Instrument \| Variable Rate Loan
Derivative [Line Items]
Hedged instrument, face amount	$ 1,500,000,000
Cash Flow Hedging \| Interest rate swaps
Derivative [Line Items]
Net derivative gain	$ 60,000,000

Derivative Instruments (Long term debt) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying amount of hedged item	$ 447	$ 449
Cumulative amount of fair value adjustment included within the hedged item	$ (3)	$ 0

Derivative Instruments (Effect of Cash Flow Hedge ) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Derivatives, Fair Value [Line Items]
Total interest expense, net presented in the consolidated statements of income in which the effects of cash flow hedges are recorded	$ 138	$ 140	$ 86
Amount recognized in other comprehensive (loss) income	(7)	10	22
Interest Income (Expense), Net
Derivatives, Fair Value [Line Items]
Amount reclassified from accumulated other comprehensive (loss) income to interest expense, net	$ (6)	$ 0	$ 2

Debt (Summary of debt) (Detail) - USD ($)	Dec. 28, 2018	Nov. 30, 2018	Mar. 31, 2018	Dec. 29, 2017	Aug. 31, 2017	Feb. 28, 2017
Debt Instrument [Line Items]
Total long-term debt	$ 3,124,000,000			$ 3,111,000,000
Less: current portion	72,000,000			55,000,000
Total long-term debt, net of current portion	3,052,000,000			3,056,000,000
$690 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Senior unsecured notes, face amount					$ 690,000,000
Notes payable and capital leases due on various dates through fiscal 2022
Debt Instrument [Line Items]
Notes payable and capital leases due on various dates through fiscal 2022	$ 97,000,000			27,000,000
Minimum \| Notes payable and capital leases due on various dates through fiscal 2022
Debt Instrument [Line Items]
Stated interest rate (in percentage)	0.00%
Maximum \| Notes payable and capital leases due on various dates through fiscal 2022
Debt Instrument [Line Items]
Stated interest rate (in percentage)	5.55%
Secured Debt \| Notes Which Mature In December 2020
Debt Instrument [Line Items]
Senior secured notes:	$ 447,000,000			449,000,000
Stated interest rate (in percentage)	4.45%
Effective interest rate	4.53%
Senior unsecured notes, face amount	$ 450,000,000
Secured Debt \| Notes Which Mature In December 2040
Debt Instrument [Line Items]
Senior secured notes:	$ 216,000,000			216,000,000
Stated interest rate (in percentage)	5.95%
Effective interest rate	6.03%
Senior unsecured notes, face amount	$ 300,000,000
Secured Debt \| $690 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Senior secured term loans:	$ 617,000,000			644,000,000
Stated interest rate (in percentage)	3.88%
Effective interest rate	4.31%
Senior unsecured notes, face amount	$ 690,000,000
Secured Debt \| $310 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Senior secured term loans:	$ 258,000,000			270,000,000
Stated interest rate (in percentage)	3.88%
Effective interest rate	4.33%
Senior unsecured notes, face amount	$ 310,000,000	$ 310,000,000			$ 310,000,000
Secured Debt \| $1,131 million Term Loan B, due August 2025
Debt Instrument [Line Items]
Senior secured term loans:	$ 1,085,000,000			1,101,000,000
Stated interest rate (in percentage)	4.13%
Effective interest rate	4.48%
Senior unsecured notes, face amount	$ 1,131,000,000	$ 1,131,000,000	$ 1,131,000,000			$ 1,100,000,000
Unsecured Debt \| Notes Which Mature In July 2032
Debt Instrument [Line Items]
Senior unsecured notes:	$ 246,000,000			246,000,000
Stated interest rate (in percentage)	7.13%
Effective interest rate	7.43%
Senior unsecured notes, face amount	$ 250,000,000
Unsecured Debt \| Notes Which Mature In July 2033
Debt Instrument [Line Items]
Senior unsecured notes:	$ 158,000,000			$ 158,000,000
Stated interest rate (in percentage)	5.50%
Effective interest rate	5.88%
Senior unsecured notes, face amount	$ 300,000,000

Debt - Additional Information (Detail)			1 Months Ended				3 Months Ended	12 Months Ended
Debt - Additional Information (Detail)	Aug. 31, 2017 USD ($)	Aug. 16, 2016 USD ($)	Aug. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Feb. 28, 2017 USD ($)	Dec. 28, 2018 USD ($)	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)	Nov. 30, 2018 USD ($)	Mar. 30, 2018
Debt Instrument [Line Items]
Long-term debt, gross							$ 3,073,000,000	$ 3,073,000,000	$ 3,129,000,000
Unamortized debt discounts and deferred debt issuances costs							43,000,000	43,000,000	45,000,000
Maximum leverage ratio exclusion of unrestricted cash and cash equivalents			$ 350,000,000				350,000,000	350,000,000
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 (in percentage)		0.50
Debt instrument, covenant, secured leverage ratio, for debt prepayment to be 50% of excess cash flow, minimum		2.00
Payments of long-term debt								59,000,000	209,000,000	$ 277,000,000
Debt instrument, required prepayment amount equal to ratio less than 2.0		$ 0
Debt issuance costs, gross							8,000,000	8,000,000	4,000,000
Other notes payable									21,000,000
San Diego Properties
Debt Instrument [Line Items]
Other notes payable							79,000,000	79,000,000
Other Income, Net
Debt Instrument [Line Items]
Amortization of debt issuance costs and discounts								10,000,000	13,000,000	6,000,000
Interest rate swaps \| Designated as Hedging Instrument \| Fair value interest rate swaps
Debt Instrument [Line Items]
Derivatives							$ 3,000,000	3,000,000
Information Systems & Global Solutions Business of Lockheed Martin
Debt Instrument [Line Items]
Long-term debt		1,800,000,000
Secured Debt
Debt Instrument [Line Items]
Repayment of debt, quarterly								46,000,000	76,000,000
Repayments of term loan				$ 10,000,000					130,000,000	275,000,000
Write off of deferred debt issuance cost									$ 2,000,000	$ 5,000,000
Debt issuance costs, gross		53,000,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt issuance costs, gross		15,000,000
Term Loan A \| Secured Debt
Debt Instrument [Line Items]
Debt instrument, decrease in basis points	25.00%
Debt instrument, increase in quarterly payment, extension (in years)	1 year		1 year
Term Loan A \| Secured Debt \| LIBOR
Debt Instrument [Line Items]
Variable interest rate (in percentage)							1.50%
Term Loan A \| Secured Debt \| LIBOR \| Minimum
Debt Instrument [Line Items]
Variable interest rate (in percentage)							1.25%
Term Loan A \| Secured Debt \| LIBOR \| Maximum
Debt Instrument [Line Items]
Variable interest rate (in percentage)							2.00%
Term Loan A \| Secured Debt and Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, term, extension (in years)	1 year		1 year
$690 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Note payable, face amount	$ 690,000,000
$690 million Term Loan A, due August 2023 \| Secured Debt
Debt Instrument [Line Items]
Note payable, face amount							$ 690,000,000	690,000,000
$690 million Term Loan A, due August 2023 \| Secured Debt \| Information Systems & Global Solutions Business of Lockheed Martin
Debt Instrument [Line Items]
Note payable, face amount		$ 690,000,000
$310 million Term Loan A, due August 2023 \| Secured Debt
Debt Instrument [Line Items]
Note payable, face amount	$ 310,000,000						310,000,000	310,000,000			$ 310,000,000
$1,131 million Term Loan B, due August 2025 \| Secured Debt
Debt Instrument [Line Items]
Note payable, face amount					$ 1,131,000,000	$ 1,100,000,000	$ 1,131,000,000	$ 1,131,000,000			$ 1,131,000,000
Debt instrument, decrease in basis points	25.00%					50.00%						25.00%
Debt instrument, term, extension (in years)			2 years
$1,131 million Term Loan B, due August 2025 \| Secured Debt \| LIBOR
Debt Instrument [Line Items]
Variable interest rate (in percentage)					1.75%	2.25%	1.75%

Debt (Schedule of Maturities of Notes Payable and Long-Term Debt) (Detail) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Note Payable and Long-Term Debt
2019	$ 79
2020	509
2021	181
2022	102
2023	619
2024 and thereafter	1,677
Total principal payments	3,167
Less: unamortized debt discount and issuance costs	(43)	$ (45)
Total long-term debt	$ 3,124	$ 3,111

Debt (Revolving Credit Facility) (Detail)	Dec. 28, 2018 USD ($)	Aug. 31, 2018 USD ($)	Dec. 29, 2017 USD ($)
Debt Instrument [Line Items]
Maximum leverage ratio exclusion of unrestricted cash and cash equivalents	$ 350,000,000	$ 350,000,000
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
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity	$ 750,000,000
Borrowings under credit facility	$ 0		$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Dec. 30, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 3,370
Other comprehensive (loss) income	(73)	$ 55	$ 19
Cumulative adjustments related to ASU adoptions				$ 1
Taxes	7	(18)	(7)
Reclassification from accumulated other comprehensive (loss) income	(6)		(8)
Ending Balance	3,308	3,370
Accumulated other comprehensive (loss) income
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	33	(4)	(8)
Cumulative adjustments related to ASU adoptions				9
Ending Balance	(30)	33	(4)
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	17	(7)	0
Other comprehensive (loss) income	(65)	36	(8)
Cumulative adjustments related to ASU adoptions				3
Taxes	4	(12)	1
Reclassification from accumulated other comprehensive (loss) income	0		0
Ending Balance	(41)	17	(7)
Unrecognized (loss) gain on derivative instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	14	10	(4)
Other comprehensive (loss) income	(7)	10	26
Cumulative adjustments related to ASU adoptions				10
Taxes	3	(6)	(10)
Reclassification from accumulated other comprehensive (loss) income	(6)		(2)
Ending Balance	14	14	10
Pension adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	2	(7)	(4)
Other comprehensive (loss) income	(1)	9	1
Cumulative adjustments related to ASU adoptions				$ (4)
Taxes	0	0	2
Reclassification from accumulated other comprehensive (loss) income	0		(6)
Ending Balance	$ (3)	$ 2	$ (7)

Composition of Certain Financial Statement Captions (Schedule of Certain Financial Statement Captions) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Other current assets:
Transition costs and project assets	$ 145	$ 87
Pre-contract costs	41	64
Other	357	302
Other current assets:	543	453
Other assets:
Equity method investments	26	37
Other	156	217
Other Assets	182	254
Accounts payable and accrued liabilities:
Accrued liabilities	650	747
Accounts payable	547	557
Deferred revenue	276	293
Other	3	42
Total accounts payable and accrued liabilities	1,476	1,639
Accrued payroll and employee benefits:
Salaries, bonuses and amounts withheld from employees’ compensation	248	245
Accrued vacation	225	236
Other	0	6
Total Accrued payroll and employee benefits	473	487
Interest expense, net:
Interest expense	(145)	(148)	$ (96)
Interest income	7	8	10
Interest expense, net:	(138)	(140)	(86)
Other expense, net
Promissory note impairment	0	(33)	0
Gain (loss) on foreign currencies	2	5	(18)
Other (expense) income, net	(3)	2	5
Other expense, net	(1)	(26)	$ (13)
Condensed Income Statements, Captions [Line Items]
Amortization of transition costs and project assets	146
Transition costs and project assets	167	100
Dividends received from equity method investments	$ 29	30
Prepaid Expenses
Condensed Income Statements, Captions [Line Items]
Reclassification adjustment		28
Transition Costs and Other Projects
Condensed Income Statements, Captions [Line Items]
Reclassification adjustment		$ (28)

Earnings Per Share (EPS) (Reconciliation of Weighted Average Number of Shares Outstanding) (Details) - shares shares in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding	151	152	102
Dilutive common share equivalents—stock options and other stock awards	2	2	2
Diluted weighted average number of shares outstanding	153	154	104

Earnings Per Share (EPS) (Schedule of Stock-Based Awards Excluded from Weighted Average Shares Outstanding) (Detail) shares in Millions	12 Months Ended
	Dec. 28, 2018 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1

Earnings Per Share (EPS) (Shares Repurchased) (Details) - USD ($) shares in Millions	3 Months Ended	12 Months Ended
	Dec. 28, 2018	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Equity, Class of Treasury Stock [Line Items]
Initial delivery (in shares)	3.3
Final delivery (in shares)	0.7
Payments for repurchase of common stock		$ 167,000,000	$ 0	$ 0
Accelerated Share Repurchase
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased and retired (in shares)		4.0
Payments for repurchase of common stock	$ 250,000,000

Stock-Based Compensation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018	Jan. 31, 2014
2006 and 2017 Incentive Plans
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
Number of shares available for future issuance	5.0
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future issuance	4.6
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%
Percentage of market price for employee purchase program for stock purchases during compensatory period	10.00%
Amount received for issuance of stock	$ 11	$ 10

Stock-Based Compensation (Schedule of Stock-Based Compensation and Related Tax Benefits Recognized) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefits recognized from stock-based compensation	$ 11	$ 17	$ 14
Continuing Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 44	$ 43	$ 35

Stock-Based Compensation (Stock options) (Details) - USD ($) $ in Millions	4 Months Ended	7 Months Ended	12 Months Ended
	Dec. 30, 2016	Aug. 15, 2016	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Stock Options
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 14 days	4 years 8 months 12 days	4 years 8 months 12 days
Unrecognized compensation cost, net of estimated forfeitures			$ 6
Expected weighted-average period of recognition, years			2 years
Tax benefits from stock options exercised			$ 6	$ 7	$ 1
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)			10 years
2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
2006 and 2017 Incentive Plans \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
2006 and 2017 Incentive Plans \| 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 and 2017 Incentive Plans
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) - Stock Options - $ / shares	4 Months Ended	7 Months Ended	12 Months Ended
	Dec. 30, 2016	Aug. 15, 2016	Dec. 28, 2018	Dec. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value	$ 10.33	$ 9.54	$ 13.85	$ 11.53
Expected term (in years)	4 years 8 months 12 days	4 years 9 months 14 days	4 years 8 months 12 days	4 years 8 months 12 days
Expected volatility	37.90%	29.90%	26.60%	29.70%
Risk-free interest rate	1.20%	1.30%	2.60%	1.90%
Dividend yield	2.70%	2.50%	2.00%	2.50%

Stock-Based Compensation (Special dividend) (Details) $ in Millions		1 Months Ended
	Aug. 22, 2016 USD ($)	Aug. 31, 2016 USD ($) shares
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 (shares) \| $	$ 29	$ 29

Stock-Based Compensation (Schedule of Stock Option Activity) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Jan. 01, 2016
Shares of stock under stock options
Outstanding, beginning balance (in shares)	2.8	3.3	2.4
Options granted (in shares)	0.4	0.5	0.6
Special dividend adjustments (in shares)			0.9
Options forfeited or expired (in shares)	(0.2)	(0.2)	(0.2)
Options exercised (in shares)	(0.6)	(0.8)	(0.4)
Outstanding, ending balance (in shares)	2.4	2.8	3.3	2.4
Exercisable at year end (in shares)	1.4
Vested and expected to vest in the future as of year end (in shares)	2.4
Weighted average exercise price
Outstanding, beginning balance (in usd per share)	$ 34.38	$ 29.77	$ 38.21
Options granted (in usd per share)	63.75	53.51	43.56
Options forfeited or expired (in usd per share)	49.65	35.72	34.98
Options exercised (in usd per share)	30.40	27.23	34.11
Outstanding, ending balance (in usd per share)	39.41	$ 34.38	$ 29.77	$ 38.21
Exercisable at year end (in usd per share)	31.72
Vested and expected to vest in the future as of year end (in usd per share)	$ 39.15
Weighted average remaining contractual term and Aggregate intrinsic value
Weighted average remaining contractual term, Outstanding (in years)	3 years 9 months 25 days	3 years 10 months 25 days	4 years 1 month	4 years 6 months
Weighted average remaining contractual term, Exercisable at year end (in years)	2 years 9 months 25 days
Weighted average remaining contractual term, Vested and expected to vest (in years)	3 years 8 months 25 days
Aggregate intrinsic value, Outstanding, beginning balance	$ 86	$ 70	$ 43
Aggregate intrinsic value, Outstanding, Option Exercised	24	23	5
Aggregate intrinsic value, Outstanding, ending balance	36	$ 86	$ 70	$ 43
Aggregate intrinsic value, Exercisable	29
Aggregate intrinsic value, Outstanding, Vested and expected to vest	$ 36

Stock-Based Compensation (Restricted Stock Units and Awards) (Details) - USD ($) shares in Millions, $ in Millions		12 Months Ended
	Aug. 16, 2016	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vesting awards that vested		$ 22	$ 33	$ 43
Share-based compensation		$ 1	$ 13	$ 8
2006 and 2017 Incentive Plans
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
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 (shares)	$ 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]
Expected weighted-average period of recognition, years		2 years
Unrecognized compensation cost, net of estimated forfeitures		$ 37
Minimum \| 2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Maximum \| 2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years

Stock-Based Compensation (Schedule of RSU and PSU Activity) (Detail) - $ / shares	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Restricted Stock Units (RSUs)
Shares of stock under stock awards
Shares, beginning balance (in shares)	2,000,000	2,500,000	2,300,000
Awards granted (in shares)	600,000	800,000	1,500,000
Awards forfeited (in shares)	(200,000)	(300,000)	(200,000)
Awards vested (in shares)	(400,000)	(1,000,000)	(1,100,000)
Shares, ending balance (in shares)	2,000,000	2,000,000	2,500,000
Weighted average grant- date fair value
Weighted average grant-date fair value, Shares, beginning balance (in dollars per share)	$ 44.96	$ 40.39	$ 38.97
Weighted average grant-date fair value, Awards granted (in dollars per share)	64.05	53.91	41.45
Weighted average grant-date fair value, Awards forfeited (in dollars per share)	42.67	45.89	40.88
Weighted average grant-date fair value, Awards vested (in dollars per share)	44.60	41.02	38.91
Weighted average grant-date fair value, Shares, ending balance (in dollars per share)	$ 50.85	$ 44.96	$ 40.39
Performance Shares
Shares of stock under stock awards
Shares, beginning balance (in shares)	500,000	400,000	200,000
Awards granted (in shares)	300,000	200,000	200,000
Awards forfeited (in shares)	(100,000)
Awards vested (in shares)	(200,000)	(100,000)	0
Shares, ending balance (in shares)	500,000	500,000	400,000
Weighted average grant- date fair value
Weighted average grant-date fair value, Shares, beginning balance (in dollars per share)	$ 50.34	$ 44.44	$ 43.35
Weighted average grant-date fair value, Awards granted (in dollars per share)	61.43	57.94	45.62
Weighted average grant-date fair value, Awards forfeited (in dollars per share)	61.81
Weighted average grant-date fair value, Awards vested (in dollars per share)	44.04	42.85
Weighted average grant-date fair value, Shares, ending balance (in dollars per share)	$ 57.36	$ 50.34	$ 44.44

Stock-Based Compensation (Schedule of Performance-Based Stock Award Activity) (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vesting awards that vested	$ 22	$ 33	$ 43
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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)	$ 63.76	$ 53.58	$ 45.83
Weighted average grant date fair value, market conditions	$ 71.50	$ 62.30	$ 45.80
Expected volatility	25.37%	27.19%	31.73%
Risk-free interest rate	2.35%	1.53%	1.01%
Weighted average grant-date fair value, Awards granted (in dollars per share)	$ 65.00	$ 53.73	$ 46.54
Awards vested (in shares)	200,000	100,000	0
2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period (in years)	4 years
2006 and 2017 Incentive Plans \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures	$ 11
Expected weighted-average period of recognition, years	1 year 8 months
Fair value of vesting awards that vested	$ 13	$ 4

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Income Taxes [Line Items]
Deferred income tax benefit		$ (115)
Change in tax rate		(119)
Increase in deemed repatriation tax	$ 5
Decrease in executive compensation	1
Increase in income tax expense	4
Penalties and interest accrued	1	1	$ 1
Liabilities for uncertain tax positions	7	11	10
Liabilities for uncertain tax positions, long-term	3	7	$ 5
Amount of reasonably possible resolution of reviews	3
Valuation allowance	28	$ 83
Valuation allowance, deferred tax asset, increase (decrease), Amount	(55)
State
Income Taxes [Line Items]
Net operating loss carryforwards	131
State tax credit carryforwards	9
State tax credits	3
Deferred Tax Assets, Operating Loss Carryforwards	18
Foreign Tax Authority
Income Taxes [Line Items]
Net operating loss carryforwards	69
State tax credits	$ 8

Income Taxes (Schedule of Provision for Income Taxes) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Current:
Current, Federal and foreign	$ 54	$ 130	$ 88
Current, State	23	30	16
Deferred:
Deferred, Federal and foreign	(39)	(141)	(29)
Deferred, State	(10)	10	(3)
Total	$ 28	$ 29	$ 72

Income Taxes (Schedule of Reconciliation of Provision for Income Taxes) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Income Tax Disclosure [Abstract]
Amount computed at the statutory federal income tax rate (35%)	$ 128	$ 138	$ 111
State income taxes, net of federal tax benefit	10	31	8
Change in valuation allowance for deferred tax assets	(49)	7	(8)
Taxable conversion of a subsidiary	(17)	0	0
Stock basis in subsidiary held for sale	(16)	0	0
Change in statutory federal tax rate	(10)	(125)	0
Excess tax benefits from stock-based compensation	(9)	(12)	(8)
Research and development credits	(9)	(7)	(4)
Dividends paid to employee stock ownership plan	(2)	(4)	(38)
Change in accruals for uncertain tax positions	1	0	1
Capitalized transaction costs	0	9	7
Impact of foreign operations	0	(4)	0
Other	1	(4)	3
Total	$ 28	$ 29	$ 72
Effective income tax rate	4.60%	7.40%	22.60%

Income Taxes (Schedule Of Deferred Tax Assets (Liabilities)) (Detail) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017
Income Tax Disclosure [Abstract]
Reserves	$ 57	$ 62
Vesting stock awards	48	54
Credits and net operating losses carryovers	31	33
Deferred compensation	25	22
Vesting stock awards	20	17
Deferred gain	20	0
Deferred rent and tenant allowances	18	10
Investments	18	2
Capital loss carryover	0	60
Other	13	18
Total deferred tax assets	250	278
Valuation allowance	(28)	(83)
Deferred tax assets, net of valuation allowance	222	195
Purchased intangible assets	(326)	(340)
Deferred revenue	(40)	(34)
Accumulated other comprehensive (loss) income	(6)	(13)
Employee benefit contributions	(4)	(3)
Partnership interest	(2)	(17)
Other	(14)	(8)
Total deferred tax liabilities	(392)	(415)
Net deferred tax liabilities	$ (170)	$ (220)

Income Taxes (Schedule of Balance Sheet) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Jan. 01, 2016
Operating Loss Carryforwards [Line Items]
Income taxes payable	$ 3	$ 4
Deferred tax liabilities	170	220
Unrecognized tax benefits	6	10	$ 9	$ 11
Other current assets:
Operating Loss Carryforwards [Line Items]
Prepaid income taxes and tax refunds receivable	43	54
Other long-term liabilities:
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 3	$ 9

Income Taxes (Schedule of Changes in Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at beginning of year	$ 10	$ 9	$ 11
Additions for tax positions related to current year	3	2	1
Additions for tax positions related to prior years	0	2	4
Reductions for tax positions related to prior years	(7)	(3)	(7)
Unrecognized tax benefits at end of year	6	10	9
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$ 6	$ 7	$ 4

Retirement Plans - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 28, 2018 USD ($) plan	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)
Retirement Benefits [Abstract]
Compensation expense	$ 94	$ 94	$ 68
Number of deferred compensation plans \| plan	3
Maximum percentage certain employees can defer from salary for certain plans	20.00%
Projected benefit obligation	$ 103	120
Fair value of plan assets	115	129
Funded status of plan - Overfunded	$ 12	$ 9

Leases (Schedule of Rental Expense for Facilities and Equipment) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Leases [Abstract]
Gross rental expense	$ 163	$ 181	$ 107
Less lease and sublease income	(1)	(3)	(2)
Net rental expense	$ 162	$ 178	$ 105

Leases (Schedule of Future Minimum Lease Commitments and Sublease Receipts under Non-Cancelable Operating Leases) (Detail) $ in Millions	Dec. 28, 2018 USD ($)
Operating lease Commitment
2019	$ 144
2020	114
2021	83
2022	71
2023	55
2024 and thereafter	246
Total	713
Sublease receipts
2019	3
2020	1
2021	1
2022	0
2023	0
2024 and thereafter	0
Total	$ 5

Leases - Additional Information (Detail) - USD ($) $ in Millions	Dec. 28, 2018	Jan. 24, 2018
Disclosure Leases Additional Information [Abstract]
Capital lease obligations	$ 3
Term of contract		148 months
Rent expense for year one, per agreement		$ 11
Rent increase		2.50%

Leases (Sale and Leaseback Agreements) (Details) $ in Millions	1 Months Ended		12 Months Ended
	Dec. 28, 2018 USD ($) building	Dec. 31, 2015 USD ($)	Dec. 28, 2018 USD ($) building	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)	May 03, 2013 a Building
Sale Leaseback Transaction [Line Items]
Proceeds from real estate financing transaction			$ 14	$ 0	$ 0
Other notes payable				$ 21
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 and leaseback		75
Allocated consideration to Note parable and Other long-term liabilities		20
Discount on proceeds		$ 5
San Diego Properties
Sale Leaseback Transaction [Line Items]
Number of real estate properties \| building	2		2
Proceeds from real estate financing transaction	$ 79
Proceeds from sale and leaseback	$ 14
Term of debt instrument (in years)	3 years
Short-term other receivable	$ 65		$ 65
Other notes payable	$ 79		$ 79
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	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 133	$ 133	$ 90
Cash paid for income taxes, net of refunds	70	214	47
Non-cash investing activity:
Stock issued for the IS&GS Business acquisition	$ 0	$ 0	$ 2,938
Non-cash financing activity:
Real estate financing transaction	65	0	0
Dividends declared	$ 3	$ 3	$ 21
Notes payable and capital lease obligations	0	27	$ 0
Cash and cash equivalents	327	390
Restricted cash	42	32
Total cash, cash equivalents and restricted cash	$ 369	$ 422

Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Segment Reporting Information [Line Items]
Revenues:	$ 10,194	$ 10,170	$ 7,043
Operating income (loss)	749	559	417
Amortization of intangible assets	201	281	84
Defense Solutions
Segment Reporting Information [Line Items]
Revenues:	4,948
Civil
Segment Reporting Information [Line Items]
Revenues:	3,429
Health
Segment Reporting Information [Line Items]
Revenues:	1,817
Operating Segments \| Defense Solutions
Segment Reporting Information [Line Items]
Revenues:	4,948	4,959	3,843
Operating income (loss)	347	307	312
Amortization of intangible assets	68	108	17
Operating Segments \| Civil
Segment Reporting Information [Line Items]
Revenues:	3,429	3,409	2,082
Operating income (loss)	290	226	146
Amortization of intangible assets	87	132	39
Operating Segments \| Health
Segment Reporting Information [Line Items]
Revenues:	1,817	1,802	1,117
Operating income (loss)	230	228	110
Amortization of intangible assets	46	41	28
Corporate
Segment Reporting Information [Line Items]
Revenues:	0	0	1
Operating income (loss)	$ (118)	$ (202)	$ (151)

Business Segment Information - Additional Information (Detail) - segment	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017
Segment Reporting [Abstract]
Number of reportable segments		3
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	12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
U.S. Government
Segment Reporting Information [Line Items]
Percentage of sales	85.00%	84.00%	81.00%
US DoD
Segment Reporting Information [Line Items]
Percentage of sales	47.00%	47.00%	56.00%
U.S. Army
Segment Reporting Information [Line Items]
Percentage of sales	13.00%	13.00%	14.00%

Contingencies - Additional Information (Detail) € in Millions				3 Months Ended	12 Months Ended
	Aug. 30, 2018 USD ($)	Apr. 10, 2018 USD ($)	Sep. 29, 2017 USD ($)	Apr. 30, 2012 LegalMatter	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Nov. 10, 2015 USD ($)	Jan. 03, 2014 EUR (€)
Legal Proceedings [Line Items]
Loss contingency accrual, period increase (decrease)					$ (19,000,000)
Securities Class Actions
Legal Proceedings [Line Items]
Number of lawsuits \| LegalMatter				3
Number of lawsuits, withdrawn \| LegalMatter				1
Number of lawsuits, consolidated \| LegalMatter				2
Greek Government Contract
Legal Proceedings [Line Items]
Arbitral award \| €								€ 39
MSA Venture
Legal Proceedings [Line Items]
Estimate of loss					64,000,000		$ 64,000,000
Estimate of possible loss, amount deferred					32,000,000
Loss contingency accrual					39,000,000	$ 39,000,000
Lockheed Martin
Legal Proceedings [Line Items]
Estimate of loss					$ 56,000,000
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%
Virnet X Inc
Legal Proceedings [Line Items]
Amount awarded to other party, pre interest			$ 343,000,000
Litigation settlement	$ 595,000,000	$ 502,000,000	439,000,000
Litigation settlement, amount awarded from other party, royalty rate, per device	1.20
Litigation settlement, awarded from the other party, interest and legal fees	$ 93,000,000		$ 96,000,000
Leidos
Legal Proceedings [Line Items]
Percentage of settlement					25.00%
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	$ 1,000,000

Commitments - Additional Information (Detail) $ in Millions	12 Months Ended
Commitments - Additional Information (Detail) $ in Millions	Dec. 28, 2018 USD ($)
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Letters of credit outstanding, amount	$ 73
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds	$ 44
Standby Letters of Credit and Surety Bonds
Other Commitments And Contingencies [Line Items]
Term of debt instrument (in years)	3 years

Subsequent Events (Details) - Gaithersburg, Maryland property - Subsequent Event $ in Millions	Dec. 31, 2018 USD ($)
Subsequent Event [Line Items]
Proceeds from sale and leaseback	$ 31
Carrying value of sale leaseback property	$ 31

Label	Element	Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 3,384,000,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	13,000,000
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(2,000,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(8,000,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(15,000,000)
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	42,000,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	42,000,000
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,000,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 3,371,000,000
Common Stock [Member]
Shares, Issued	us-gaap_SharesIssued	151,000,000
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 3,344,000,000
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	20,000,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 24,000,000