0001336920-21-000010 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Jan. 01, 2021	Feb. 15, 2021	Jul. 03, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 01, 2021
Current Fiscal Year End Date	--01-01
Document Transition Report	false
Entity File Number	001-33072
Entity Registrant Name	Leidos Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3562868
Entity Address, Address Line One	1750 Presidents Street,
Entity Address, City or Town	Reston,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	571
Local Phone Number	526-6000
Title of 12(b) Security	Common stock, par value $.0001 per share
Trading Symbol	LDOS
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 13,224,279,479
Entity Common Stock, Shares Outstanding		141,894,753
Documents Incorporated by Reference	Portions of Leidos Holdings, Inc.'s definitive Proxy Statement for the 2021 Annual Meeting of Stockholders ("2021 Proxy Statement") are incorporated by reference in Part III of this Annual Report on Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001336920

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
ASSETS
Cash and cash equivalents	$ 524	$ 668
Receivables, net	2,137	1,734
Inventory, net	276	72
Other current assets	402	338
Total current assets	3,339	2,812
Property, plant and equipment, net	604	287
Intangible assets, net	1,216	530
Goodwill	6,313	4,912
Operating lease right-of-use assets, net	581	400
Other assets	458	426
Total assets	12,511	9,367
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	2,175	1,837
Accrued payroll and employee benefits	632	435
Long-term debt, current portion	100	61
Total current liabilities	2,907	2,333
Long-term debt, net of current portion	4,644	2,925
Operating lease liabilities	564	326
Deferred tax liabilities	234	184
Other long-term liabilities	291	182
Commitments and contingencies (Notes 12, 24 and 25)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10 million shares authorized and no shares issued and outstanding at January 1, 2021 and January 3, 2020	0	0
Common stock, $0.0001 par value, 500 million shares authorized, 142 million and 141 million shares issued and outstanding at January 1, 2021 and January 3, 2020, respectively	0	0
Additional paid-in capital	2,580	2,587
Retained earnings	1,328	896
Accumulated other comprehensive loss	(46)	(70)
Total Leidos stockholders’ equity	3,862	3,413
Non-controlling interest	9	4
Total equity	3,871	3,417
Total liabilities and stockholders' equity	$ 12,511	$ 9,367

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 01, 2021	Jan. 03, 2020
Stockholders’ equity:
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)	142,000,000	141,000,000
Common stock, shares outstanding (shares)	142,000,000	141,000,000

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Income Statement [Abstract]
Revenues	$ 12,297	$ 11,094	$ 10,194
Cost of revenues	10,560	9,546	8,690
Selling, general and administrative expenses	770	689	729
Bad debt expense and recoveries	(68)	(40)	0
Acquisition, integration and restructuring costs	39	5	37
Asset impairment charges	12	0	7
Equity earnings of non-consolidated subsidiaries	(14)	(18)	(18)
Operating income	998	912	749
Non-operating expense:
Interest expense, net	(179)	(133)	(138)
Other (expense) income, net	(38)	87	(1)
Income before income taxes	781	866	610
Income tax expense	(152)	(196)	(28)
Net income	629	670	582
Less: net income attributable to non-controlling interest	1	3	1
Net income attributable to Leidos common stockholders	$ 628	$ 667	$ 581
Earnings per share:
Basic (usd per share)	$ 4.42	$ 4.66	$ 3.85
Diluted (usd per share)	$ 4.36	$ 4.60	$ 3.80

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 629	$ 670	$ 582
Foreign currency translation adjustments	63	8	(61)
Unrecognized loss on derivative instruments	(37)	(47)	(10)
Pension adjustments	(2)	(1)	(1)
Total other comprehensive income (loss), net of taxes	24	(40)	(72)
Comprehensive income	653	630	510
Less: comprehensive income attributable to non-controlling interest	1	3	1
Comprehensive income attributable to Leidos common stockholders	$ 652	$ 627	$ 509

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions	Total	Cumulative adjustments related to ASU adoptions	Cumulative Effect, Period of Adoption, Adjusted Balance	Shares of common stock	Additional paid-in capital	Additional paid-in capital Cumulative Effect, Period of Adoption, Adjusted Balance	(Accumulated deficit) retained earnings	(Accumulated deficit) retained earnings Cumulative adjustments related to ASU adoptions	(Accumulated deficit) retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) Cumulative adjustments related to ASU adoptions	Accumulated other comprehensive income (loss) Cumulative Effect, Period of Adoption, Adjusted Balance	Leidos Holdings, Inc. stockholders' equity	Leidos Holdings, Inc. stockholders' equity Cumulative adjustments related to ASU adoptions	Leidos Holdings, Inc. stockholders' equity Cumulative Effect, Period of Adoption, Adjusted Balance	Non-controlling interest	Non-controlling interest Cumulative Effect, Period of Adoption, Adjusted Balance
Balance (in shares) at Dec. 29, 2017				151
Beginning balance at Dec. 29, 2017	$ 3,383	$ 1	$ 3,384		$ 3,344	$ 3,344	$ (7)	$ (8)	$ (15)	$ 33	$ 9	$ 42	$ 3,370	$ 1	$ 3,371	$ 13	$ 13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	582						581						581			1
Other comprehensive income (loss), net of taxes	(72)									(72)			(72)
Issuances of stock (less forfeitures) (in shares)				1
Issuances of stock (less forfeitures)	17				17								17
Repurchases of stock and other (in shares)				(6)
Repurchases of stock and other	(438)				(438)								(438)
Dividends	(194)						(194)						(194)
Stock-based compensation	44				44								44
Purchase of a noncontrolling interest	(11)				(1)								(1)			(10)
Other	(1)															(1)
Balance (in shares) at Dec. 28, 2018				146
Ending balance at Dec. 28, 2018	3,311	48	3,359		2,966	2,966	372	48	420	(30)		(30)	3,308	48	3,356	3	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	670						667						667			3
Other comprehensive income (loss), net of taxes	(40)									(40)			(40)
Issuances of stock (less forfeitures) (in shares)				1
Issuances of stock (less forfeitures)	28				28								28
Repurchases of stock and other (in shares)				(6)
Repurchases of stock and other	(458)				(458)								(458)
Dividends	(191)						(191)						(191)
Stock-based compensation	52				52								52
Other	(3)				(1)								(1)			(2)
Balance (in shares) at Jan. 03, 2020				141
Ending balance at Jan. 03, 2020	3,417	$ (1)	$ 3,416		2,587	$ 2,587	896	$ (1)	$ 895	(70)		$ (70)	3,413	$ (1)	$ 3,412	4	$ 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	629						628						628			1
Other comprehensive income (loss), net of taxes	24									24			24
Issuances of stock (less forfeitures) (in shares)				1
Issuances of stock (less forfeitures)	36				36								36
Repurchases of stock and other	(105)				(105)								(105)
Dividends	(195)						(195)						(195)
Stock-based compensation	62				62								62
Capital contributions to non-controlling interest	4															4
Balance (in shares) at Jan. 01, 2021				142
Ending balance at Jan. 01, 2021	$ 3,871				$ 2,580		$ 1,328			$ (46)			$ 3,862			$ 9

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividend per share (usd per share)	$ 1.36	$ 1.32	$ 1.28

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Cash flows from operations:
Net income	$ 629	$ 670	$ 582
Adjustments to reconcile net income to net cash provided by operations:
Gain on sale of businesses	0	(88)	0
Depreciation and amortization	282	234	257
Stock-based compensation	62	52	44
Loss on debt extinguishment	36	0	1
Asset impairment charges	12	0	7
Deferred income taxes	(4)	18	(49)
Bad debt expense	13	12	0
Other	1	3	17
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	(127)	116	(58)
Other current assets and other long-term assets	104	41	(17)
Accounts payable and accrued liabilities and other long-term liabilities	151	(71)	(14)
Accrued payroll and employee benefits	161	(29)	(12)
Income taxes receivable/payable	14	34	10
Net cash provided by operating activities	1,334	992	768
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(2,655)	(94)	(81)
Payments for property, equipment and software	(183)	(121)	(73)
Proceeds from disposition of businesses	0	178	0
Net proceeds from sale of assets	12	96	0
Collections on promissory notes	5	5	40
Other	6	1	0
Net cash (used in) provided by investing activities	(2,815)	65	(114)
Cash flows from financing activities:
Proceeds from debt issuance	7,225	0	0
Payments of long-term debt	(5,456)	(80)	(59)
Payments for debt issuance and modification costs	(51)	0	(8)
Dividend payments	(196)	(198)	(198)
Repurchases of stock and other	(105)	(458)	(438)
Proceeds from issuances of stock	35	27	14
Payment of tax indemnification liability	0	0	(23)
Proceeds from real estate financing transaction	0	0	14
Other	(1)	0	(9)
Net cash provided by (used in) financing activities	1,451	(709)	(707)
Net (decrease) increase in cash, cash equivalents and restricted cash	(30)	348	(53)
Cash, cash equivalents and restricted cash at beginning of year	717	369	422
Cash, cash equivalents and restricted cash at end of year	$ 687	$ 717	$ 369

Nature of Operations and Basis of Presentation	12 Months Ended
Nature of Operations and Basis of Presentation	Jan. 01, 2021
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, homeland security, civil and health markets, both domestically and internationally. Leidos' customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security, the Federal Aviation Administration, the Department of Veterans Affairs and many other U.S. civilian, state and local government agencies as well as foreign government agencies. Unless indicated otherwise, references to "we," "us" and "our" refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. We operate in three reportable segments: Defense Solutions, Civil and Health. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. We have an 88% controlling interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Centerra Group, LLC, which includes 41% purchased from Jacobs Group, LLC on January 26, 2018. MSA's contract is anticipated to end in early fiscal 2021. We also have a 53% controlling interest in Hanford Mission Integration Solutions, LLC ("HMIS"), the legal entity for the follow-on contract to MSA's contract and a joint venture with Centerra Group, LLC and Parsons Government Services, Inc. We consolidate the financial results for MSA and HMIS into our 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 VIE are not material to the consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. Effective the beginning of fiscal 2020, certain contracts were reassigned from the Civil reportable segment to the Defense Solutions reportable segment (see "Note 23—Business Segments"). Fiscal 2019 and 2018 segment results and disclosures have been recast to reflect this change. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. We disaggregated "Inventory, net" from "Other current assets" on the consolidated balance sheets. We also disaggregated "Loss on debt extinguishment" from "Other" within operating activities and "Payments for debt issuance and modification costs" from "Other" within financing activities on the consolidated statements of cash flows. Additionally, we combined "Other current assets" and "Other long-term assets" into "Other current assets and other long-term assets" and "Accounts payable and accrued liabilities" and "Other long-term liabilities" into "Accounts payable and accrued liabilities and other long-term liabilities" on the consolidated statements of cash flows.

Accounting Standards	12 Months Ended
Accounting Standards	Jan. 01, 2021
Accounting Changes and Error Corrections [Abstract]
Accounting Standards	Note 2—Accounting Standards Accounting Standards Updates Adopted ASU 2016-13, ASU 2018-19, ASU 2019-05 and ASU 2019-11, Financial Instruments – Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13 and subsequent updates, 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. Effective January 4, 2020, we adopted the requirements of Topic 326 using the modified retrospective approach. The adoption resulted in an immaterial impact to our financial assets and processes for determining the expected credit loss. Accounting Standards Updates Issued But Not Yet Adopted ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU 2020-04 which provides companies with optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This update provides optional expedients for applying accounting guidance to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of the reference rate reform. The amendments in this update are effective for all entities as of March 2020 and can be adopted using a prospective approach no later than December 31, 2022. We are currently evaluating the impacts of the reference rate reform. ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40) In August 2020, the FASB issued ASU 2020-06 which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separate embedded conversion features from the host convertible instruments. Additionally, the amendments in this update simplify the guidance in Subtopic 815-40 by removing certain criteria that must be satisfied in order to classify a contract as equity. This update also improves the consistency of earnings per share calculations by requiring an entity to use the if-converted method of calculating diluted earnings per share rather than the treasury stock method for convertible instruments and also by requiring the inclusion of the potential effect of shares settled in cash or shares in the diluted earnings per share calculation. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, and can be adopted using either a fully or modified retrospective approach. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. We plan to early adopt this update in the beginning of fiscal 2021, and expect the associated financial statement impacts to be immaterial.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Jan. 01, 2021

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 2020 ended January 1, 2021. Fiscal 2020 and 2018 each included 52 weeks and fiscal 2019 included 53 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, right-of-use ("ROU") assets and lease liabilities, 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

Our 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 management 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. Estimating the fair value of acquired assets and assumed liabilities, including intangibles, requires judgments about expected future cash flows, weighted-average cost of capital, discount rates and expected long-term growth rates.

Investments

Investments in entities and corporate joint ventures where we have a non-controlling ownership interest but over which we have the ability to exercise significant influence, are accounted for under the equity method of accounting. We recognize our proportionate share of the entities' net income or loss and do not consolidate the entities' assets and liabilities.

Equity investments in entities over which we do 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

We occasionally form joint ventures and/or enter into arrangements with special purpose limited liability companies for the purpose of bidding and executing on specific projects. We analyze each such arrangement to determine whether it represents a VIE. If the arrangement is determined to be a VIE, we assess whether we are the primary beneficiary of the VIE and are consequently required to consolidate the VIE.

Divestitures

From time-to-time, we may dispose (or management may commit to plans to dispose) of strategic or non-strategic components of the business. Divestitures representing a strategic shift that has (or will have) a major effect in operations and financial results are classified as discontinued operations, whereas non-strategic divestitures remain in continuing operations.

Restructuring Expenses

Restructuring expenses are incurred in connection with programs aimed at reducing our costs. Restructuring costs may include one-time termination of benefits, costs to terminate contracts and other permanent exit costs to consolidate or close facilities directly related to the restructuring program.

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 and such amounts are reasonably estimable. 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.

Revenue Recognition

Our revenues from contracts with customers are from offerings including digital modernization, cyber operations, mission software systems, integrated systems and mission operations, primarily with the U.S. government and its agencies. We also serve various state and local governments, foreign governments and commercial customers.

We perform 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 ("CPFF"), cost-plus-award-fee, cost-plus-incentive-fee and fixed-price-incentive-fee ("FP-IF") contracts.

To determine the proper revenue recognition, we first evaluate whether we have 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. We also evaluate 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, we assess 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 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 our 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, we assess if the multiple promises should be accounted for as separate performance obligations or combined into a single performance obligation. We generally separate 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.

Our 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. We account 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. Any taxes collected or imposed when determining the transaction price are excluded.

Certain 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. We estimate variable consideration at the most probable amount that we expect 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.

We allocate 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 performance obligations is generally based on an expected cost-plus margin approach, in accordance with the FAR. For certain product sales, prices from other standalone sales are used. Substantially all of our contracts do not contain a significant financing component, which would require an adjustment to the transaction price of the contract.

We recognize revenue on our service-based contracts primarily over time as there is continuous transfer of control to the customer over the duration of the contract as the promised services are performed. 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 for which we do not have an alternate use. Anticipated losses on service-based contracts are recognized when incurred (generally on a straight-line basis) over the contract term. In certain product sales, where the products have an alternate use, revenue is recognized at a point in time when the customer takes control of the asset usually denoted by possession and legal title.

On FFP contracts requiring system integration and cost-plus contracts with variable consideration, revenue is recognized over time generally using 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, an EAC of a performance obligation includes future losses estimated to be incurred on onerous contracts, as and when known. On certain other contracts, principally T&M, FP-LOE and CPFF, revenue is generally recognized using the right-to-invoice practical expedient as we are 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 where we are not primarily responsible for fulfilling the promise to provide the goods or service to the customer, do not have inventory risk and do not have discretion in establishing the price for the goods or service, we recognize revenue on a net basis.

Contract Costs

Contract costs generally include direct costs such as labor, materials, subcontract costs and indirect costs identifiable with or allocable to a specific contract. Costs are expensed as incurred unless they qualify for deferral and capitalization. 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 24—Contingencies").

Pre-contract Costs

Costs incurred on projects as pre-contract costs are deferred as assets when we have been requested by the customer to begin work under a new arrangement prior to contract execution and it is probable that we will recover the costs through the issuance of a contract. Pre-contract costs are amortized over the contract period of performance or a specified period of performance.

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, a prior contract or prior contractor. These costs are generally capitalized as deferred assets and amortized on a straight-line basis over the anticipated term of the contract or a specified period of performance, including unexercised option periods that are reasonably certain of being exercised.

Project Assets

Purchases of project assets are capitalized for specific contracts where we maintain ownership of the asset over the life of the contract and the benefit is received over a period of time. Project assets include enterprise software licenses, dedicated hardware, maintenance agreements and significant material purchases and other costs incurred on contracts. Project assets are amortized from the balance sheet using the straight-line method over the estimated useful life of the asset or over the expected term of the period of performance, whichever is shorter.

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 a business combination, where the adjustment is made for the period commencing from the date of acquisition.

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions, except for per share amounts)
Favorable impact	$	137	$	95	$	167
Unfavorable impact	(61)		(52)		(62)
Net favorable impact to income before income taxes	$	76	$	43	$	105

Impact on diluted EPS attributable to Leidos common stockholders	$	0.39	$	0.23	$	0.52

The impact on diluted earnings per share ("EPS") attributable to Leidos common stockholders is calculated using our statutory tax rate.

Revenue Recognized from Prior Obligations

During fiscal 2020, 2019 and 2018, revenue recognized from performance obligations satisfied in previous periods was $40 million, $56 million and $102 million, respectively. The changes primarily relate to revisions of variable consideration, including award and incentive 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

We classify indirect costs incurred within or allocated to our 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 our disclosure statements under U.S. government Cost Accounting Standards ("CAS").

Selling, general and administrative expenses include general and administrative, bid and proposal and company-funded research and development expenses.

We conduct research and development activities under customer-funded contracts and with company-funded research and development funds. Company-funded research and development expense was $73 million, $49 million and $46 million for fiscal 2020, 2019 and 2018, respectively. Expenses for research and development activities performed under customer contracts are charged directly to cost of revenues for those contracts.

Income Taxes

We account 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.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider 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 we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize our deferred income tax assets in the future as currently recorded, we 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.

We recognize 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. We recognize interest and penalties related to uncertain tax positions in our income tax expense.

Cash and Cash Equivalents

Our cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. Outstanding payments are included within "Cash and cash equivalents" and "Accounts payable and accrued liabilities" correspondingly on the consolidated balance sheets. At January 1, 2021, and January 3, 2020, $237 million and $169 million, respectively, of outstanding payments were included within "Cash and cash equivalents."

Restricted Cash

We have 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" on the consolidated balance sheets.

Receivables

Receivables include amounts billed and currently due from customers, amounts billable where the right to consideration is unconditional and amounts unbilled. 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.

Cost-reimbursable and T&M contracts are generally billed 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 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 our 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 we have not performed our 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 us to concentrations of credit risk primarily consist of accounts receivable and derivatives. Since our receivables are primarily with the U.S. government, we do not have exposure to a material credit risk. We manage our 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. Generally, 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 technology and security products, inspection systems, baggage scanning equipment and small glide munitions. Inventory is evaluated against historical and planned usage to determine appropriate provisions for obsolete inventory.

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. Our policy is to perform our annual goodwill impairment evaluation as of the first day of the fourth quarter of our fiscal year. During fiscal 2020 and 2019, we had seven and six reporting units, respectively, 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, we consider 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 we determine 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.

We estimate the fair value of each reporting unit using Level 3 inputs when a quantitative analysis is performed.

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. Program 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. Backlog and trade name intangible assets are amortized on a straight-line basis over their estimated useful lives. Customer relationships and 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.

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


						Estimated useful lives (in years)
Backlog						1
Customer relationships						8-10
Programs						4-13
Software and technology						3-15
Trade names						3

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

1-15

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

We evaluate our 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.

Leases

Lessee

We have facilities and equipment lease arrangements. An arrangement is determined to be a lease at inception if it conveys the right to control the use of identified property and equipment for a period of time in exchange for consideration. ROU assets represent the right to use an underlying asset over the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.

ROU assets and lease liabilities are recorded on the consolidated balance sheet at lease commencement date based on the present value of the future minimum lease payments over the lease term. We generally do not know the implicit rate for our leases; therefore, the discount rate used is our incremental borrowing rate which is determined based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. An ROU asset is initially measured by the present value of the remaining lease payments, plus initial direct costs and prepaid lease payments, less any lease incentives received before commencement. The remaining lease cost is allocated over the remaining lease term on a straight-line basis unless another systematic or rational basis is more representative of the pattern in which the underlying asset is expected to be used. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets.

Certain facility leases contain options to renew or extend the terms of the lease which are included in the determination of the ROU assets and lease liabilities when it is reasonably certain that we will exercise the option. Leases may also include variable lease payments such as an escalation clause based on consumer price index rates, maintenance costs and utilities. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date, whereas variable lease payments that do not depend on an index or rate are recorded as lease expense in the period incurred. At January 1, 2021, we did not have any lease agreements with residual value guarantees.

We use the practical expedient to not separate non-lease components from lease components and instead account for both components as a single lease. The practical expedient is applied to all material classes of leased assets.

The related lease payments on short-term facilities and equipment leases are recognized as expense on a straight-line basis over the lease term.

ROU assets are assessed for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and the carrying amount of the asset exceeds its estimated fair value. This includes an establishment of a plan of abandonment, which occurs when we have committed to a plan to abandon the lease before the end of its previously estimated useful life and there is no expectation that we will re-enter or re-purpose the space, including the fact that it cannot be subleased or transferred to another program within Leidos.

Lessor

We are a lessor on certain equipment sales-type and operating lease arrangements with our customers. To be considered lease revenue, the contract must contain a specified asset, we must not have a substantive substitution right, the customer must have the right to direct the use of the specified asset during the period of use and the customer must have the right to obtain substantially all of the economic benefit of the specified asset.

Certain arrangements may contain variable payments that depend on an index or rate and are measured using the index or rate on the commencement date. Variable payments that are not included in the net investments are recorded as revenue as incurred. Arrangements may also contain options to renew or extend the performance period. Option periods are included in the lease term if we determine that it is reasonably certain the customer will exercise an option.

We have arrangements that contain both lease and non-lease components. We account for them as one unit of account if the timing and pattern of transfer is identical for both the lease and the non-lease components and the lease component would be classified as an operating lease if accounted for separately. If both criteria are met and the predominant component is a lease, then the entire arrangement will be accounted for in accordance with ASC 842. If we account for an arrangement both as a lease and non-lease component, then the allocation of consideration for each component will be based the relative standalone sales price.

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 us to develop our own assumptions about the assumptions that market participants would use in pricing the asset or liability (Level 3).

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

The 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.

Our 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, we generally classify non-financial instruments as either Level 2 or Level 3 fair value measurements.

Financial Instruments

We are 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. We manage our risk to changes in interest rates and foreign currency exchange rates through the use of derivative instruments.

For fixed rate borrowings, we use 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, we use 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).

We enter into foreign currency forward contracts in order to mitigate fluctuations in our earnings and cash flows due to changes in foreign currency exchange rates. The foreign currency forward contracts are not designated as hedges and hedge accounting does not apply. We do not hold derivative instruments for trading or speculative purposes.

Our 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

We account for stock-based compensation at the grant date based on the fair value of the award and recognize 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 Leidos 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 in stockholders' equity. Gains and losses due to movements in foreign currency exchange rates are recognized as "Other (expense) income, net" on the consolidated statements of income.

Revenues

12 Months Ended

Jan. 01, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Note 4—Revenues

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, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

As of January 1, 2021, we had $15.7 billion of remaining performance obligations, approximately 50%, 16% and 34% of which are expected to be recognized as revenues in fiscal 2021, fiscal 2022 and fiscal 2023 and thereafter, respectively.

Disaggregation of Revenues

We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments. These categories represent how the nature, timing and uncertainty of revenues and cash flows are affected.

Fiscal 2019 and 2018 amounts have been recast for the contracts that were reassigned from the Civil reportable segment to the Defense Solutions reportable segment (see "Note 23—Business Segments").

Disaggregated revenues by customer-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	5,407	$	59	$	519	$	5,985
Other government agencies(1)	995		2,418		1,329		4,742
Commercial and non-U.S. customers	937		426		107		1,470
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,767	$	67	$	491	$	5,325
Other government agencies(1)	685		2,291		1,332		4,308
Commercial and non-U.S. customers	847		345		151		1,343
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,427	$	60	$	386	$	4,873
Other government agencies(1)	494		2,071		1,276		3,841
Commercial and non-U.S. customers	857		468		155		1,480
Total	$	5,778	$	2,599	$	1,817	$	10,194

(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.

The majority of our 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.

Disaggregated revenues by contract-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,504	$	1,411	$	280	$	6,195
Firm-fixed-price	2,067		1,061		1,303		4,431
Time-and-materials and fixed-price-level-of-effort	768		431		372		1,571
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,070	$	1,624	$	234	$	5,928
Firm-fixed-price	1,642		636		1,296		3,574
Time-and-materials and fixed-price-level-of-effort	587		443		444		1,474
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,747	$	1,533	$	189	$	5,469
Firm-fixed-price	1,434		601		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	597		465		494		1,556
Total	$	5,778	$	2,599	$	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 lower 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 exposure to risk of cost overruns.

Disaggregated revenues by geographic location were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	6,501	$	2,738	$	1,955	$	11,194
International	838		165		—		1,003
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	5,494	$	2,632	$	1,974	$	10,100
International	805		71		—		876
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,963	$	2,485	$	1,817	$	9,265
International	815		114		—		929
Total	$	5,778	$	2,599	$	1,817	$	10,194

Our international business operations, primarily located in Australia and the U.K., are subject to additional and different risks than our 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 our 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 our 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.

Revenues by contract-type, customer-type and geographic location exclude lease income of $100 million and $118 million for fiscal 2020 and 2019, respectively (see "Note 12—Leases").

Note 5—Contract Assets and Liabilities

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, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.

Contract assets consist of 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. Unbilled receivables exclude amounts billable where the right to consideration is unconditional. Contract liabilities consist of deferred revenue.

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


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
Contract assets - current:
Unbilled receivables	Receivables, net	$	906	$	735

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	481	$	400

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	20	$	9

The increases in unbilled receivables and deferred revenue were primarily due to the acquisitions of Dynetics, Inc. and L3Harris Technologies' security detection and automation businesses. The increase in deferred revenue was also attributable to advance payments received from customers offset by revenue recognized during the period.

Revenue recognized during fiscal 2020 and 2019 of $275 million and $207 million, respectively, was included as a contract liability at January 3, 2020 and December 28, 2018, respectively.

There were no impairment losses recognized on contract assets during fiscal 2020, 2019 and 2018.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Contract Asset and Liabilities

12 Months Ended

Jan. 01, 2021

Revenue from Contract with Customer [Abstract]

Contract Asset and Liabilities

Note 4—Revenues

Remaining Performance Obligations

Disaggregation of Revenues

Fiscal 2019 and 2018 amounts have been recast for the contracts that were reassigned from the Civil reportable segment to the Defense Solutions reportable segment (see "Note 23—Business Segments").

Disaggregated revenues by customer-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	5,407	$	59	$	519	$	5,985
Other government agencies(1)	995		2,418		1,329		4,742
Commercial and non-U.S. customers	937		426		107		1,470
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,767	$	67	$	491	$	5,325
Other government agencies(1)	685		2,291		1,332		4,308
Commercial and non-U.S. customers	847		345		151		1,343
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,427	$	60	$	386	$	4,873
Other government agencies(1)	494		2,071		1,276		3,841
Commercial and non-U.S. customers	857		468		155		1,480
Total	$	5,778	$	2,599	$	1,817	$	10,194

(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.

Disaggregated revenues by contract-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,504	$	1,411	$	280	$	6,195
Firm-fixed-price	2,067		1,061		1,303		4,431
Time-and-materials and fixed-price-level-of-effort	768		431		372		1,571
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,070	$	1,624	$	234	$	5,928
Firm-fixed-price	1,642		636		1,296		3,574
Time-and-materials and fixed-price-level-of-effort	587		443		444		1,474
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,747	$	1,533	$	189	$	5,469
Firm-fixed-price	1,434		601		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	597		465		494		1,556
Total	$	5,778	$	2,599	$	1,817	$	10,194

Disaggregated revenues by geographic location were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	6,501	$	2,738	$	1,955	$	11,194
International	838		165		—		1,003
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	5,494	$	2,632	$	1,974	$	10,100
International	805		71		—		876
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,963	$	2,485	$	1,817	$	9,265
International	815		114		—		929
Total	$	5,778	$	2,599	$	1,817	$	10,194

Revenues by contract-type, customer-type and geographic location exclude lease income of $100 million and $118 million for fiscal 2020 and 2019, respectively (see "Note 12—Leases").

Note 5—Contract Assets and Liabilities

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


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
Contract assets - current:
Unbilled receivables	Receivables, net	$	906	$	735

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	481	$	400

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	20	$	9

Revenue recognized during fiscal 2020 and 2019 of $275 million and $207 million, respectively, was included as a contract liability at January 3, 2020 and December 28, 2018, respectively.

There were no impairment losses recognized on contract assets during fiscal 2020, 2019 and 2018.

- Definition

+ References

+ Details

Acquisitions

12 Months Ended

Jan. 01, 2021

Business Combinations [Abstract]

Acquisitions

Note 6—Acquisitions

We may acquire businesses as part of our growth strategy to provide new or enhance existing capabilities and offerings to customers. During fiscal 2020, we completed the acquisition of Dynetics, Inc. ("Dynetics") and L3Harris Technologies' security detection and automation businesses (the "SD&A Businesses"). During fiscal 2019, we completed the acquisition of IMX Medical Management Services, Inc. and its affiliated businesses ("IMX").

On December 10, 2020, we entered into a definitive agreement to acquire 1901 Group, LLC ("1901 Group"), a leading provider for managed IT services and cloud solutions in the private and public market. On January 14, 2021, we completed the acquisition of 1901 Group (see "Note 26—Subsequent Events").

SD&A Businesses and Dynetics Acquisitions

SD&A Businesses Acquisition

On May 4, 2020 (the "Transaction Date"), we completed the acquisition of the SD&A Businesses. The SD&A Businesses were acquired for cash consideration of $1,020 million, net of $26 million of cash acquired. The purchase consideration includes the initial cash payment of $1,015 million plus a $31 million payment for contractual net working capital acquired. The net working capital payment has been reflected within investing activities in the consolidated statement of cash flows. The SD&A Businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products. The addition of the SD&A Businesses will expand the scope and scale of our global security detection and automation offerings.

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


Cash	$	26
Receivables	135
Inventory	101
Other current assets	23
Operating lease right-of-use assets	35
Property, plant and equipment	33
Intangible assets	354
Accounts payable and accrued liabilities	(125)
Accrued payroll and employee benefits	(8)
Operating lease liabilities	(32)
Deferred tax liabilities	(52)
Other long-term liabilities	(13)
Total identifiable net assets acquired	477
Goodwill	569
Purchase price	$	1,046

Due to the timing and complexity of the acquisition, the assets acquired and liabilities assumed were recorded at their preliminary estimated fair values. As of January 1, 2021, we had not finalized the determination of fair values of the acquired assets and liabilities assumed, primarily including, but not limited to receivables, inventory, intangible assets, accounts payable and accrued liabilities and deferred taxes. The purchase price allocation is subject to change as we complete our determination of the fair value of the acquired assets and liabilities assumed, the impact of which could be material.

The goodwill represents intellectual capital and the acquired assembled workforce. Of the preliminary goodwill recognized, $425 million is deductible for tax purposes.

The following table summarizes the preliminary fair value of intangible assets acquired at the Transaction Date and the related weighted average amortization period:


	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	13	$	141
Customer relationships	10	48
Technology	10	73
In-process research and development ("IPR&D")(1)		92
Total	11	$	354

(1) IPR&D assets are indefinite-lived at the acquisition date until placed into service, at which time such assets will be reclassified to a finite-lived amortizable intangible asset.

For fiscal 2020, $243 million of revenues related to the SD&A Businesses were recognized within the Civil reportable segment.

Dynetics Acquisition

On January 31, 2020 (the "Acquisition Date"), we completed our acquisition of Dynetics, an industry-leading applied research and national security solutions company. The addition of Dynetics will accelerate opportunities within our innovation engine that researches and develops new technologies and solutions to address the most challenging needs of our customers. Dynetics was acquired for cash consideration of $1.64 billion, net of cash acquired.

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


Cash	$	18
Receivables	158
Inventory	47
Other current assets	18
Operating lease right-of-use assets	25
Property, plant and equipment	173
Intangible assets	528
Other assets	8
Accounts payable and accrued liabilities	(50)
Accrued payroll and employee benefits	(29)
Operating lease liabilities	(20)
Other long-term liabilities	(4)
Total identifiable net assets acquired	872
Goodwill	788
Purchase price	$	1,660

As of January 1, 2021, we had substantially completed the determination of fair values of the acquired assets and liabilities assumed. The fair values not yet finalized primarily related to unbilled receivables.

The goodwill represents intellectual capital and the acquired assembled workforce. All of the goodwill recognized is deductible for tax purposes.

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


	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	13	$	485
Backlog	1	32
Technology	11	11
Total	12	$	528

For fiscal 2020, $937 million of revenues related to Dynetics were recognized within the Defense Solutions reportable segment.

Acquisition and Integration Costs

The following expenses were incurred related to the acquisitions of Dynetics and the SD&A Businesses:


	Year Ended
	January 1, 2021
	(in millions)
Acquisition costs	$	23
Integration costs	12
Total acquisition and integration costs	$	35

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

Pro Forma Financial Information

The following unaudited pro forma financial information presents consolidated results of operations as if the acquisitions of Dynetics and the SD&A Businesses had occurred on December 29, 2018. 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 acquisitions of Dynetics and the SD&A Businesses and are factually supportable. The unaudited pro forma results below do not reflect future events that have occurred or may occur after the acquisitions, including anticipated synergies or other expected benefits that may be realized from the acquisitions. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the acquisitions had been completed on December 29, 2018, nor is it intended to be an indication of future operating results.


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions, except per share amounts)
Revenues	$	12,553	$	12,250
Net income	618		583
Net income attributable to Leidos common stockholders	617		580

Earnings per share:
Basic	$	4.35	$	4.06
Diluted	4.28		4.00

The unaudited pro forma financial information above includes the following nonrecurring significant adjustment made to account for certain costs incurred as if the acquisitions had been completed on December 29, 2018:

•Acquisition-related costs of $23 million were excluded within the pro forma financial information for fiscal 2020 and were included within the supplemental pro forma earnings for fiscal 2019.

IMX Acquisition

On August 15, 2019, we completed the acquisition of IMX for purchase consideration of $94 million. The acquisition extends our independent medical evaluation coverage area for commercial and federal customers.

We recorded $50 million of goodwill (which is deductible for tax purposes) and $42 million of intangible assets. The intangible assets primarily consist of $41 million for customer relationships. The amortization period for the customer relationships is 10 years.

Lockheed Martin Transaction

On August 16, 2016, a wholly-owned subsidiary of Leidos Holdings, Inc. merged with Lockheed Martin's Information Systems and Global Solutions business (the "IS&GS Business") in a Reverse Morris Trust transaction (the "IS&GS Transactions").

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. 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 statements of cash flows.

Additionally, 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 statements of cash flows.

During fiscal 2020, 2019 and 2018, we incurred $1 million, $3 million and $29 million, respectively, of integration costs related to the IS&GS Business. These costs have been recorded within Corporate and presented in "Acquisition, integration and restructuring costs" on the consolidated statements of income.

Divestitures	12 Months Ended
Divestitures	Jan. 01, 2021
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Note 7—Divestitures Health Staff Augmentation Business On September 12, 2019, our Health segment disposed of its health staff augmentation business that was primarily focused on implementation and optimization services to hospital centers. During the quarter ended January 3, 2020, working capital adjustments were finalized, resulting in a final sales price of $13 million. This consideration included $12 million of cash proceeds and expenses the buyer paid on Leidos' behalf. Net assets of $12 million were divested. This disposition did not meet the criteria to be classified as a discontinued operation in the financial statements. Commercial Cybersecurity Business On February 20, 2019, our Civil segment disposed of its commercial cybersecurity business in order to focus on providing solutions, including cybersecurity, to our core markets of governments and highly regulated industries. The commercial cybersecurity business was divested for a final sales price of $166 million. A pre-tax gain on sale of $88 million was recorded, net of $68 million of assets divested and $10 million in transaction related costs. The net assets divested included $14 million of receivables, $57 million of goodwill and $13 million of accounts payable and accrued liabilities. The gain was recorded in "Other (expense) income, net" on the consolidated statements of income. This disposition did not meet the criteria to be classified as a discontinued operation in the financial statements.

Receivables

12 Months Ended

Jan. 01, 2021

Receivables [Abstract]

Receivables

Note 8—Receivables

The components of receivables, net consisted of the following:


	January 1, 2021		January 3, 2020
	(in millions)
Billed and billable receivables	$	1,270	$	1,023
Unbilled receivables	906		735
Allowance for doubtful accounts	(39)		(24)
	$	2,137	$	1,734

Inventory

12 Months Ended

Jan. 01, 2021

Inventory Disclosure [Abstract]

Inventory

Note 9 — Inventory

The components of inventory, net consisted of the following:


	January 1, 2021		January 3, 2020
	(in millions)
Raw materials	$	136	$	46
Work in process	41		13
Finished goods	99		13
	$	276	$	72

Goodwill and Intangible Assets

12 Months Ended

Jan. 01, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 10—Goodwill and Intangible Assets

Goodwill

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


	Defense Solutions		Civil		Health		Total
	(in millions)
Goodwill at December 28, 2018(1)	$	2,015	$	1,924	$	921	$	4,860
Goodwill re-allocation	25		(25)		—		—
Acquisition of IMX	—		—		50		50
Divestiture of health staff augmentation business	—		—		(5)		(5)
Foreign currency translation adjustments	(4)		8		—		4
Adjustment to goodwill(2)	3		—		—		3
Goodwill at January 3, 2020(1)	2,039		1,907		966		4,912
Goodwill re-allocation	429		(429)		—		—
Acquisition of Dynetics and the SD&A Businesses	788		569		—		1,357
Foreign currency translation adjustments	44		—		—		44
Goodwill at January 1, 2021(1)	$	3,300	$	2,047	$	966	$	6,313

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

(2) Immaterial correction was recorded with respect to fair value of assets and liabilities acquired from the IS&GS Transactions.

Effective the beginning of fiscal 2020, certain contracts were reassigned from the Civil reportable segment to the Defense Solutions reportable segment (see "Note 23—Business Segments"). This change resulted in the reallocation of $429 million of goodwill between the reporting units within the two reportable segments. We evaluated goodwill for impairment for certain reporting units using either a quantitative step one analysis or qualitative analysis, both before and after the changes were made, and determined that goodwill was not impaired.

In the fourth quarter of fiscal 2020 and 2019, we performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary.

In fiscal 2018, we performed a qualitative and quantitative analysis on our reporting units. Based on the qualitative analysis performed during our annual impairment evaluation for fiscal 2018 for certain of our reporting units, it was determined that it was 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 our reporting units, it was determined that the fair value was in excess of the individual reporting units carrying values.

As a result, no goodwill impairments were identified as part of the annual goodwill impairment evaluation for the periods mentioned above.

Intangible Assets

Intangible assets consisted of the following:


	January 1, 2021						January 3, 2020
	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
	(in millions)
Finite-lived intangible assets:
Programs	$	1,632	$	(687)	$	945	$	1,003	$	(536)	$	467
Software and technology	188		(100)		88		102		(83)		19
Customer relationships	93		(10)		83		45		(6)		39
Backlog	32		(29)		3		—		—		—
Trade names	1		—		1		1		—		1
Total finite-lived intangible assets	1,946		(826)		1,120		1,151		(625)		526
Indefinite-lived intangible assets:
In-process research and development	92		—		92		—		—		—
Trade names	4		—		4		4		—		4
Total indefinite-lived intangible assets	96		—		96		4		—		4
Total intangible assets	$	2,042	$	(826)	$	1,216	$	1,155	$	(625)	$	530

Amortization expense related to intangible assets was $198 million, $173 million and $201 million for fiscal 2020, 2019 and 2018, respectively.

The estimated annual amortization expense related to finite-lived intangible assets as of January 1, 2021, is as follows:


Fiscal Year Ending
	(in millions)
2021	$	203
2022	198
2023	174
2024	126
2025	101
2026 and thereafter	318
	$	1,120

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.

We are monitoring the impacts of the coronavirus pandemic ("COVID-19") on the fair value of our intangible assets and goodwill. While we currently do not anticipate any impairments to intangible assets and goodwill as a result of COVID-19, future changes in the expectations of the impact on our operations, financial performance and cash flows related to intangible assets and goodwill could cause these assets to be impaired.

Property Plant and Equipment

12 Months Ended

Jan. 01, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 11—Property, Plant and Equipment

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


	January 1, 2021		January 3, 2020
	(in millions)
Computers and other equipment	$	386	$	259
Leasehold improvements	321		203
Buildings and improvements	142		23
Office furniture and fixtures	60		37
Land	18		4
Construction in progress	72		104
	999		630
Less: accumulated depreciation and amortization	(395)		(343)
	$	604	$	287

Depreciation expense was $84 million, $61 million and $56 million for fiscal 2020, 2019 and 2018, respectively.

Sale and Leaseback Agreements

Gaithersburg, MD Property

On December 31, 2018, we closed the sale and leaseback agreement relating to our land and building in Gaithersburg, MD. We received proceeds of $31 million, net of selling costs, for the property, which had a carrying value of $31 million.

During the quarter ended March 30, 2018, an impairment charge of $7 million associated with this property was recorded within Corporate.

San Diego, CA Properties

On December 28, 2018, we closed the sale and leaseback agreement relating to two buildings and the adjacent land in San Diego, CA for consideration of $79 million, net of selling costs. The carrying value of the land and buildings was $14 million. We received cash proceeds of $14 million upon closing, which were recorded as financing activities on the consolidated statements of cash flows, and recognized a short-term receivable for the remaining $65 million of consideration.

Prior to the adoption of ASC 842, the consideration of $79 million was accounted for as a financing transaction and a note payable was recorded. Under ASC 842, the transaction qualified as a sale-leaseback and consequently the debt of $79 million and the carrying value of the property of $14 million, net of the related tax impact of $17 million, were reclassified into retained earnings as a cumulative effect adjustment. The proceeds of $65 million received in fiscal 2019 were recorded as investing activities on the consolidated statements of cash flows.

Leases

12 Months Ended

Jan. 01, 2021

Leases [Abstract]

Leases

Note 12—Leases

Lessee

ROU assets and lease liabilities consisted of the following:


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
ROU assets:
Finance leases	Property, plant and equipment, net	$	10	$	7
Operating leases	Operating lease right-of-use assets, net	581		400
		$	591	$	407
Current lease liabilities:
Finance leases	Long-term debt, current portion	$	6	$	5
Operating leases	Accounts payable and accrued liabilities	127		132
		$	133	$	137
Non-current lease liabilities:
Finance leases	Long-term debt, net of current portion	$	5	$	2
Operating leases	Operating lease liabilities	564		326
		$	569	$	328

In March 2020, we took occupancy of our new corporate headquarters in Reston, VA. As a result we recorded $104 million of ROU assets and $132 million of lease liabilities.

During fiscal 2020, we made a decision to vacate one of our facilities. The carrying amount was determined to be less than the expected recovery from sublease income and as a result, we recorded an impairment charge of $11 million, which was recorded within our Health reportable segment.

Total lease cost for the periods presented consisted of the following:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Finance lease cost:
Amortization of ROU assets	$	9	$	8
Interest on lease liabilities	—		1
	9		9

Operating lease cost(1)	169		155

Variable lease cost	103		107
Short-term lease cost	8		7
Less: Sublease income	(11)		(6)
Total lease cost	$	278	$	272

(1) Includes ROU lease expense of $145 million and $136 million for fiscal 2020 and 2019, respectively.

Lease costs and sublease income are included in "Cost of revenues" and "Selling, general and administrative expenses" within the consolidated statements of income.

Lease terms and discount rates related to leases were as follows:


	January 1, 2021		January 3, 2020
Weighted-average remaining lease term (in years):
Finance leases	2.9		2.4
Operating leases	7.3		5.7
Weighted-average discount rate:
Finance leases	2.7	%	4.2	%
Operating leases	3.5	%	4.1	%

Other information related to leases was as follows:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$	—	$	1
Operating cash related to operating leases	164		163
Financing cash flows related to finance leases	9		8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	$	12	$	—
Operating lease liabilities	314		141

The change in ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows.

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Disclosures related to the period prior to ASC 842

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


	Year Ended
	December 28, 2018
	(in millions)
Gross rental expense	$	163
Less: sublease income	(1)
Net rental expense	$	162

Lessor

As of January 1, 2021 and January 3, 2020, we had a total net investment in sales-type leases, which relates to lease payment receivables, of $64 million and $57 million, respectively. The current and non-current portions of net investment in sales-type leases are included within "Other current assets" and "Other assets", respectively, on the consolidated balance sheets.

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Leases

Note 12—Leases

Lessee

ROU assets and lease liabilities consisted of the following:


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
ROU assets:
Finance leases	Property, plant and equipment, net	$	10	$	7
Operating leases	Operating lease right-of-use assets, net	581		400
		$	591	$	407
Current lease liabilities:
Finance leases	Long-term debt, current portion	$	6	$	5
Operating leases	Accounts payable and accrued liabilities	127		132
		$	133	$	137
Non-current lease liabilities:
Finance leases	Long-term debt, net of current portion	$	5	$	2
Operating leases	Operating lease liabilities	564		326
		$	569	$	328

In March 2020, we took occupancy of our new corporate headquarters in Reston, VA. As a result we recorded $104 million of ROU assets and $132 million of lease liabilities.

Total lease cost for the periods presented consisted of the following:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Finance lease cost:
Amortization of ROU assets	$	9	$	8
Interest on lease liabilities	—		1
	9		9

Operating lease cost(1)	169		155

Variable lease cost	103		107
Short-term lease cost	8		7
Less: Sublease income	(11)		(6)
Total lease cost	$	278	$	272

(1) Includes ROU lease expense of $145 million and $136 million for fiscal 2020 and 2019, respectively.

Lease costs and sublease income are included in "Cost of revenues" and "Selling, general and administrative expenses" within the consolidated statements of income.

Lease terms and discount rates related to leases were as follows:


	January 1, 2021		January 3, 2020
Weighted-average remaining lease term (in years):
Finance leases	2.9		2.4
Operating leases	7.3		5.7
Weighted-average discount rate:
Finance leases	2.7	%	4.2	%
Operating leases	3.5	%	4.1	%

Other information related to leases was as follows:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$	—	$	1
Operating cash related to operating leases	164		163
Financing cash flows related to finance leases	9		8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	$	12	$	—
Operating lease liabilities	314		141

The change in ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows.

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Disclosures related to the period prior to ASC 842

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


	Year Ended
	December 28, 2018
	(in millions)
Gross rental expense	$	163
Less: sublease income	(1)
Net rental expense	$	162

Lessor

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Leases

Note 12—Leases

Lessee

ROU assets and lease liabilities consisted of the following:


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
ROU assets:
Finance leases	Property, plant and equipment, net	$	10	$	7
Operating leases	Operating lease right-of-use assets, net	581		400
		$	591	$	407
Current lease liabilities:
Finance leases	Long-term debt, current portion	$	6	$	5
Operating leases	Accounts payable and accrued liabilities	127		132
		$	133	$	137
Non-current lease liabilities:
Finance leases	Long-term debt, net of current portion	$	5	$	2
Operating leases	Operating lease liabilities	564		326
		$	569	$	328

In March 2020, we took occupancy of our new corporate headquarters in Reston, VA. As a result we recorded $104 million of ROU assets and $132 million of lease liabilities.

Total lease cost for the periods presented consisted of the following:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Finance lease cost:
Amortization of ROU assets	$	9	$	8
Interest on lease liabilities	—		1
	9		9

Operating lease cost(1)	169		155

Variable lease cost	103		107
Short-term lease cost	8		7
Less: Sublease income	(11)		(6)
Total lease cost	$	278	$	272

(1) Includes ROU lease expense of $145 million and $136 million for fiscal 2020 and 2019, respectively.

Lease costs and sublease income are included in "Cost of revenues" and "Selling, general and administrative expenses" within the consolidated statements of income.

Lease terms and discount rates related to leases were as follows:


	January 1, 2021		January 3, 2020
Weighted-average remaining lease term (in years):
Finance leases	2.9		2.4
Operating leases	7.3		5.7
Weighted-average discount rate:
Finance leases	2.7	%	4.2	%
Operating leases	3.5	%	4.1	%

Other information related to leases was as follows:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$	—	$	1
Operating cash related to operating leases	164		163
Financing cash flows related to finance leases	9		8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	$	12	$	—
Operating lease liabilities	314		141

The change in ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows.

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Disclosures related to the period prior to ASC 842

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


	Year Ended
	December 28, 2018
	(in millions)
Gross rental expense	$	163
Less: sublease income	(1)
Net rental expense	$	162

Lessor

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Leases

Note 12—Leases

Lessee

ROU assets and lease liabilities consisted of the following:


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
ROU assets:
Finance leases	Property, plant and equipment, net	$	10	$	7
Operating leases	Operating lease right-of-use assets, net	581		400
		$	591	$	407
Current lease liabilities:
Finance leases	Long-term debt, current portion	$	6	$	5
Operating leases	Accounts payable and accrued liabilities	127		132
		$	133	$	137
Non-current lease liabilities:
Finance leases	Long-term debt, net of current portion	$	5	$	2
Operating leases	Operating lease liabilities	564		326
		$	569	$	328

In March 2020, we took occupancy of our new corporate headquarters in Reston, VA. As a result we recorded $104 million of ROU assets and $132 million of lease liabilities.

Total lease cost for the periods presented consisted of the following:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Finance lease cost:
Amortization of ROU assets	$	9	$	8
Interest on lease liabilities	—		1
	9		9

Operating lease cost(1)	169		155

Variable lease cost	103		107
Short-term lease cost	8		7
Less: Sublease income	(11)		(6)
Total lease cost	$	278	$	272

(1) Includes ROU lease expense of $145 million and $136 million for fiscal 2020 and 2019, respectively.

Lease costs and sublease income are included in "Cost of revenues" and "Selling, general and administrative expenses" within the consolidated statements of income.

Lease terms and discount rates related to leases were as follows:


	January 1, 2021		January 3, 2020
Weighted-average remaining lease term (in years):
Finance leases	2.9		2.4
Operating leases	7.3		5.7
Weighted-average discount rate:
Finance leases	2.7	%	4.2	%
Operating leases	3.5	%	4.1	%

Other information related to leases was as follows:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$	—	$	1
Operating cash related to operating leases	164		163
Financing cash flows related to finance leases	9		8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	$	12	$	—
Operating lease liabilities	314		141

The change in ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows.

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Disclosures related to the period prior to ASC 842

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


	Year Ended
	December 28, 2018
	(in millions)
Gross rental expense	$	163
Less: sublease income	(1)
Net rental expense	$	162

Lessor

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Fair Value Measurements

12 Months Ended

Jan. 01, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 13—Fair Value Measurements

Financial instruments measured on a recurring basis at fair value consisted of the following:


	January 1, 2021				January 3, 2020
	Carrying value		Fair value		Carrying value		Fair value
	(in millions)
Financial assets:
Derivatives	$	1	$	1	$	2	$	2
Financial liabilities:
Derivatives	103		103		75		75

As of January 1, 2021, our derivatives primarily consisted of the cash flow interest rate swaps on $1.1 billion of the variable rate senior unsecured term loan (see "Note 14—Derivative Instruments"). The fair value of the cash flow interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve (Level 2 inputs).

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

The carrying amounts of our financial instruments, other than derivatives, which include cash equivalents, accounts receivable, accounts payable and accrued expenses, are reasonable estimates of their related fair values. The carrying value of our notes receivable of $15 million and $20 million as of January 1, 2021 and January 3, 2020, 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 January 1, 2021, and January 3, 2020, the fair value of debt was $5.2 billion and $3.1 billion, respectively, and the carrying amount was $4.7 billion and $3.0 billion, respectively (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 our existing debt arrangements (Level 2 inputs).

On May 4, 2020 and January 31, 2020, non-financial instruments measured at fair value on a non-recurring basis were recorded in connection with the acquisitions of the SD&A Businesses and Dynetics, respectively. Additionally, on August 15, 2019, non-financial instruments measured at fair value on a non-recurring basis were recorded in connection with the acquisition of IMX. The fair values of the assets acquired and liabilities assumed were determined using Level 3 inputs. See "Note 6—Acquisitions" for further details on these acquisitions. We also had real estate property measured at fair value (Level 2 inputs) on July 3, 2020 and March 30, 2018, which resulted in an impairment charge of $11 million and $7 million, respectively (see "Note 12—Leases" and "Note 11—Property, Plant and Equipment," respectively). As of January 1, 2021, and January 3, 2020, we did not have any assets or liabilities measured at fair value on a non-recurring basis.

- 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

Jan. 01, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 14—Derivative Instruments

The fair value of the interest rate swaps and foreign currency forward contracts was as follows:


	Asset derivatives
	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
Fair value interest rate swaps	Other assets	$	—	$	2
Foreign currency forward contracts	Other current assets	1		—
		$	1	$	2

Liability derivatives

Balance sheet line item

January 1,
2021

January 3,
2020

(in millions)

Cash flow interest rate swaps

Other long-term liabilities

103

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

Fair Value Hedges

We held interest rate swap agreements to hedge the fair value of the $450 million fixed rate 4.45% senior unsecured notes maturing in December 2020 (the "2020 Notes"). The objective of these instruments was to hedge the 2020 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, we received semi-annual interest payments at the coupon rate of 4.45% and paid variable interest based on the six-month LIBOR rate.

The interest rate swaps were accounted for as a fair value hedge of the 2020 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 were fully offset by the changes in the fair value of the underlying debt (the hedged item).

The fair value of the 2020 Notes were stated at an amount that reflected changes in the six-month LIBOR rate subsequent to the inception of the interest rate swaps through the reporting date.

On September 1, 2020, we repaid the 2020 Notes in full (see "Note 15—Debt"). In conjunction with the retirement of the 2020 Notes, we terminated our fair value hedge and received a final settlement of $2 million.

Cash Flow Hedges

We have interest rate swap agreements to hedge the cash flows of a portion of our variable rate senior unsecured term loans (the "Variable Rate Loans"). The objective of these instruments is to reduce variability in the forecasted interest payments of the Variable Rate Loans, which is based on the LIBOR rate. Under the terms of the interest rate swap agreements, we will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate. In February 2018, we entered into interest rate swap agreements to hedge the cash flows of an additional $250 million of our Variable Rate Loans. The interest rate swap agreements on $1.1 billion of the 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 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, we terminated our existing interest rate swaps. The net derivative gain of $60 million related to the discontinued cash flow hedge remained within accumulated other comprehensive loss and is being reclassified into earnings over the remaining life of the original hedge as the hedged variable rate debt impacts earnings.

Additionally, in September 2018, we entered into new interest rate swap agreements to hedge the cash flows of $1.5 billion of the Variable Rate Loans. These interest rate swap agreements have a maturity date of August 2025 and a fixed interest rate of 3.00%. As of January 1, 2021, the notional value of the interest rate swap agreements was $1.1 billion.

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 cash flow hedges on other comprehensive income (loss) and earnings for the periods presented was as follows:


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Total interest expense, net presented in the consolidated statements of income in which the effects of cash flow hedges are recorded	$	179	$	133	$	138

Amount recognized in other comprehensive income (loss)	$	(61)	$	(55)	$	(7)
Amount reclassified from accumulated other comprehensive loss to interest expense, net	14		(7)		(6)

We expect to reclassify losses of $16 million from accumulated other comprehensive loss into earnings during the next 12 months.

Debt

12 Months Ended

Jan. 01, 2021

Debt Disclosure [Abstract]

Debt

Note 15—Debt

Debt consisted of the following:


	Stated interest rate		Effective interest rate		January 1, 2021(1)		January 3, 2020(1)
					(in millions)
Senior unsecured term loan:
$1,925 million Term Loan, due January 2025	1.53	%	1.79	%	$	1,391	$	—
Senior secured term loans:
$690 million Term Loan A, due August 2023	3.31	%	3.74	%	—		581
$310 million Term Loan A, due August 2023	3.31	%	3.76	%	—		242
$1,131 million Term Loan B, due August 2025	3.56	%	3.91	%	—		1,075
Senior unsecured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	—		452
$500 million notes, due May 2023	2.95	%	3.17	%	497		—
$500 million notes, due May 2025	3.63	%	3.76	%	496		—
$1,000 million notes, due February 2031	2.30	%	2.38	%	989		—
$750 million notes, due May 2030	4.38	%	4.50	%	737		—
$250 million notes, due July 2032	7.13	%	7.43	%	247		247
$300 million notes, due July 2033	5.50	%	5.88	%	158		158
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Notes payable and finance leases due on various dates through fiscal 2030	2.15%-5.49%		Various		13		15
Total long-term debt					4,744		2,986
Less: current portion					(100)		(61)
Total long-term debt, net of current portion					$	4,644	$	2,925

(1)The carrying amounts of the senior term loans and notes as of January 1, 2021, and January 3, 2020, include the remaining principal outstanding of $4,782 million and $3,004 million, respectively, less total unamortized debt discounts and deferred debt issuance costs of $51 million and $35 million, respectively, and a $2 million asset as of January 3, 2020 related to the fair value of the interest rate swaps (see "Note 14—Derivative Instruments").

Senior Notes

Notes Issuance

On October 8, 2020, we issued and sold $1.0 billion aggregate principal amount of fixed-rate senior notes maturing in February 2031 (the "2031 Notes"). The 2031 Notes are senior unsecured obligations issued by Leidos, Inc. and guaranteed by Leidos Holdings, Inc. The annual interest rate for the 2031 Notes is 2.30%. The 2031 Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The proceeds from the 2031 Notes were used for general corporate purposes, including to repay all of the outstanding obligations in respect of principal, interest and fees under the 364-day Term Loan and to repay a portion of the outstanding loans under the five-year Term Loan Facility.

Additionally, on May 12, 2020, we issued and sold $500 million senior notes maturing in May 2023 (the "2023 Notes"), $500 million senior notes maturing in May 2025 (the "2025 Notes") and $750 million senior notes maturing in May 2030 (the "2030 Notes", and together with the 2023 Notes and 2025 Notes, the "Notes"). The Notes are senior unsecured obligations issued by Leidos, Inc. and guaranteed by Leidos Holdings, Inc. The annual interest rate for the 2023 Notes, 2025 Notes and 2030 Notes is 2.95%, 3.63% and 4.38%, respectively. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The proceeds from the Notes were used to repay all of the outstanding obligations in respect of principal, interest and fees under the January 31, 2020 Bridge Facility and to repay a portion of the outstanding loans under the February 12, 2020 Facility.

On October 8, 2020 and May 12, 2020, we entered into registration rights agreements, pursuant to which we agreed to use reasonable best efforts to file registration statements to permit the exchange of the 2031 Notes and the Notes, respectively, and related guarantees for registered notes having terms substantially identical thereto, or in the alternative, the registered resale of the 2031 Notes and the Notes, respectively, and related guarantees, under certain circumstances. Under both agreements, the registration statements are to be filed no later than 420 days after the original issuance of the securities. If we fail to satisfy our obligations under either registration rights agreement, we will be required to pay additional annual interest equal to 0.25% of the aggregate outstanding on the principal amount to holders of the respective notes.

Notes Retirement

On September 1, 2020, we retired our 2020 Notes. Cash on hand was used to repay in full all indebtedness under, and discharge and release all guarantees existing in connection with these notes.

Term Loan Financing

On June 18, 2020 (the "Agreement Date"), we entered into a 364-day Term Loan Credit Agreement, which provided for a senior unsecured term loan facility in an aggregate principal amount of $300 million (the "Term Loan"), with maturity 364 days after the Agreement Date.

The proceeds of the Term Loan and cash on hand on the Agreement Date were used to repay in full all indebtedness under, and discharge and release all guarantees existing in connection with the delayed-draw term loan facility.

Borrowings under the Term Loan Credit Agreement bear interest at a rate determined, at our option, based on either an alternate base rate or a LIBOR rate plus, in each case, an applicable margin that varies depending on our credit rating. During the period the Term Loan borrowing was outstanding, the applicable margin for LIBOR-denominated borrowings was 2.00%.

On October 8, 2020, in connection with the issuance of the 2031 Notes, the outstanding principal on the Term Loan Credit Agreement was fully repaid.

Delayed-Draw Term Loan Facility

On February 12, 2020, we entered into a senior unsecured delayed-draw term loan facility providing for $1.0 billion of commitments from certain financial institutions in connection with the acquisition of the SD&A Businesses. On May 4, 2020, we completed our acquisition of the SD&A Businesses and drew on the Facility in an aggregate principal amount of $1.0 billion (the "Facility"). The proceeds of the Facility and cash on hand were used to fund the purchase of the SD&A Businesses.

On May 12, 2020, in connection with the issuance of the $1.75 billion Notes, $500 million of the principal outstanding on the Facility was repaid. During May and June 2020, we made $200 million of principal repayments on the Facility. On June 18, 2020, in connection with the 364-day Term Loan Credit Agreement, the remaining principal outstanding on the Facility was fully repaid.

Bridge Facility

On January 31, 2020, in connection with the acquisition of Dynetics, we entered into a Bridge Credit Agreement with certain financial institutions, which provided for a senior unsecured 364-day bridge loan facility in an aggregate principal amount of $1.25 billion (the "Bridge Facility"), with maturity 364 days after the Acquisition Date.

The proceeds of the Bridge Facility and cash on hand on the Acquisition Date were used to fund the purchase of Dynetics.

Borrowings under the Bridge Credit Agreement bear interest at a rate determined, at our option, based on either an alternate base rate or a LIBOR rate, plus, in each case, an applicable margin that varies depending on our credit rating, subject to increases by 0.25% every 90 days. During the period the Bridge Facility borrowing was outstanding, the applicable margins for LIBOR-denominated borrowings were 1.38% and 1.63%. Additionally, we paid to each lender under the Bridge Facility a duration fee equal to 0.50% of the aggregate outstanding principal amount of the loans under the Bridge Facility 90 days after the Acquisition Date.

On May 12, 2020, in connection with the issuance of the Notes, the outstanding principal on the Bridge Credit Agreement was fully repaid.

Term Loans and Revolving Credit Facility Refinancing

On January 17, 2020 (the "Closing Date"), we entered into a Credit Agreement (the "Credit Agreement") with certain financial institutions, which provided for a senior unsecured term loan facility in an aggregate principal amount of $1.9 billion (the "Term Loan Facility") and a $750 million senior unsecured revolving facility (the "Revolving Facility" and, together with the Term Loan Facility, the "Credit Facilities"). The Credit Facilities will mature five years from the Closing Date, subject to two additional one year extensions.

The proceeds of the Term Loan Facility and cash on hand on the Closing Date were used to repay in full all indebtedness, and terminate all commitments, under, and discharge and release all guarantees and liens existing in connection with the credit agreements entered into in August 2016 (the "Terminated Credit Agreements"). As a result of the termination of the liens under the Terminated Credit Agreements, the liens securing the $450 million notes due 2020 and $300 million notes due 2040 were also released and such notes became senior unsecured obligations.

Borrowings under the Credit Agreement bear interest at a rate determined, at our option, based on either an alternate base rate or a LIBOR rate plus, in each case, an applicable margin that varies depending on our credit rating. The applicable margin range for LIBOR-denominated borrowings is from 1.13% to 1.75%. Based on our current ratings, the applicable margin for LIBOR-denominated borrowings is 1.38%.

The financial covenants in the Credit Agreement require that we maintain, as of the last day of each fiscal quarter, a ratio of adjusted consolidated total debt to consolidated EBITDA of not more than 3.75 to 1.00, subject to two increases to 4.50 to 1.00 following a material acquisition, and a ratio of EBITDA to consolidated interest expense of not less than 3.50 to 1.00.

Principal Payments and Debt Issuance Costs

In addition to the refinancing activity noted above, we made principal payments on our long-term debt of $731 million, $80 million, and $59 million during fiscal 2020, 2019 and 2018, respectively. This activity included required principal payments on our term loans of $72 million, $69 million, and $46 million during fiscal 2020, 2019 and 2018, respectively. In April 2018, we made a required debt prepayment of $10 million on our senior secured term loans. The prepayment was a result of the annual excess cash flow calculation clause in our Terminated Credit Agreements. During fiscal 2020 and 2019, there were no borrowings under the credit facilities.

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

In connection with the financing activity noted above, $68 million of debt discount and debt issuance costs related to the debt and revolving credit facility were recognized, which were recorded as an offset against the carrying value of debt and capitalized within "Other assets" in the consolidated balance sheets, respectively. For fiscal 2020, $36 million of debt discount and debt issuance costs were written off related to the Terminated Credit Agreements and loan facility repayments. Amortization of debt discount and debt issuance costs was $16 million for fiscal 2020 and $10 million for fiscal 2019 and 2018.

The senior unsecured term loan, notes and revolving credit facility are fully and unconditionally guaranteed by intercompany guarantees and contain certain customary restrictive covenants, including among other things, restrictions on our ability to create liens and enter into sale and leaseback transactions under certain circumstances. We were in compliance with all covenants as of January 1, 2021.

Future minimum payments of debt are as follows:


Fiscal Year Ending
	(in millions)
2021	$	104
2022	99
2023	670
2024	193
2025	1,349
2026 and thereafter	2,380
Total principal payments	4,795
Less: unamortized debt discount and issuance costs	(51)
Total long-term debt	$	4,744

Accumulated Other Comprehensive Loss

12 Months Ended

Jan. 01, 2021

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 16—Accumulated Other Comprehensive Loss

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


	Foreign currency translation adjustments		Unrecognized gain (loss) on derivative instruments		Pension adjustments		Total accumulated other comprehensive loss
	(in millions)
Balance at December 29, 2017	$	17	$	14	$	2	$	33
Cumulative adjustments related to ASU adoptions	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	—		(6)		—		(6)
Balance at December 28, 2018	(41)		14		(3)		(30)
Other comprehensive income (loss)	5		(55)		(1)		(51)
Taxes	3		15		—		18
Reclassification from accumulated other comprehensive loss	—		(7)		—		(7)
Balance at January 3, 2020	(33)		(33)		(4)		(70)
Other comprehensive income (loss)	70		(61)		(3)		6
Taxes	(7)		10		1		4
Reclassification from accumulated other comprehensive loss	—		14		—		14
Balance at January 1, 2021	$	30	$	(70)	$	(6)	$	(46)

Reclassifications for unrecognized gain (loss) on derivative instruments are associated with outstanding debt and are recorded in "Interest expense, net" on the consolidated statements of income. See "Note 14—Derivative Instruments" for more information on our interest rate swap agreements.

Composition of Certain Financial Statement Captions

12 Months Ended

Jan. 01, 2021

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Composition of Certain Financial Statement Captions

Note 17—Composition of Certain Financial Statement Captions


Balance Sheet	January 1, 2021		January 3, 2020
	(in millions)
Other current assets:
Restricted cash	$	163	$	49
Transition costs and project assets(1)	104		98
Pre-contract costs	7		6
Other(2)(3)	128		185
	$	402	$	338
Other assets:
Transition costs and project assets(1)	$	187	$	207
Equity method investments(4)	15		19
Other(2)	256		200
	$	458	$	426
Accounts payable and accrued liabilities:
Accrued liabilities	$	939	$	822
Accounts payable	731		592
Deferred revenue	481		400
Other(2)	24		23
	$	2,175	$	1,837
Accrued payroll and employee benefits:
Accrued vacation	$	329	$	232
Salaries, bonuses and amounts withheld from employees’ compensation	303		203
	$	632	$	435

(1) During the year ended January 1, 2021 and January 3, 2020, $575 million and $417 million, respectively, of amortization was recognized related to transition costs and project assets.

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

(3) During the year ended January 1, 2021, we disaggregated "Inventory, net" from "Other current assets" on the consolidated balance sheets. As a result, the prior year activity has been reclassified to conform with the current year presentation.

(4) Balances are net of $23 million and $25 million of dividends received during fiscal 2020 and fiscal 2019, respectively, that were recorded in cash flows provided by operating activities of continuing operations on the consolidated statements of cash flows.


	Year Ended
Income Statement	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Interest expense, net:
Interest expense	$	(182)	$	(147)	$	(145)
Interest income	3		14		7
	$	(179)	$	(133)	$	(138)
Other (expense) income, net
Loss on debt extinguishment	$	(36)	$	—	$	(1)
Gain on sale of businesses	—		88		—
(Loss) gain on foreign currencies	(4)		(1)		2
Other income (expense), net	2		—		(2)
	$	(38)	$	87	$	(1)

Earnings Per Share ("EPS")

12 Months Ended

Jan. 01, 2021

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.

We issue 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
	January 1, 2021	January 3, 2020	December 28, 2018
	(in millions)
Basic weighted average number of shares outstanding	142	143	151
Dilutive common share equivalents—stock options and other stock awards	2	2	2
Diluted weighted average number of shares outstanding	144	145	153

Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute diluted EPS. For fiscal 2020 and 2019, there were no significant anti-diluted equity awards. For fiscal 2018, there was 1 million of outstanding stock options and vesting stock awards that were anti-dilutive.

Share Repurchases

During fiscal 2020, 2019 and 2018, we made open market repurchases of our common stock for an aggregate purchase price of $67 million, $25 million and $167 million, respectively. All shares repurchased were immediately retired.

In the third quarter of fiscal 2019, we entered into an Accelerated Share Repurchase ("ASR") agreement with a financial institution to repurchase shares of our outstanding common stock. We paid $200 million to the financial institution and received 2.4 million shares. The purchase was recorded to "Additional paid-in capital" in the consolidated balance sheets. All shares delivered were immediately retired.

In the first quarter of fiscal 2019, we entered into an ASR agreement with a financial institution to repurchase shares of our outstanding common stock. We paid $200 million to the financial institution and received an initial and final delivery of 2.6 million and 0.6 million shares, respectively. The purchase was recorded to "Additional paid-in capital" in the consolidated balance sheets. All shares delivered were immediately retired.

In the fourth quarter of fiscal 2018, we entered into an uncollared ASR agreement with a financial institution to repurchase shares of our outstanding common stock. We 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.

Stock-Based Compensation

12 Months Ended

Jan. 01, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 19—Stock-Based Compensation

Plan Summaries

As of January 1, 2021, we had stock-based compensation awards outstanding under the following plans: the 2017 Omnibus Incentive Plan, the 2006 Equity Incentive Plan, as amended, and the 2006 Employee Stock Purchase Plan, as amended ("ESPP"). We issue new shares upon the issuance of the vesting of stock units or exercising of stock options under these plans.

The 2017 Omnibus Incentive Plan provides Leidos 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. We grant service-based awards that generally vest or become exercisable 25% a year over four years or cliff vest in three years. As of January 1, 2021, 4.0 million shares of Leidos' stock were reserved for future issuance under the 2017 Omnibus Incentive Plan and the 2006 Equity Incentive Plan.

We offer 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, we 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.

Our 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, 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 discount was increased to 10% of the fair market value on the date of purchase, resulting in the ESPP being compensatory. During fiscal 2020, 2019 and 2018, $32 million, $25 million and $11 million, respectively, was received from ESPP plan participants for the issuance of Leidos' stock. A total of 3.8 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
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Total stock-based compensation expense	$	62	$	52	$	44
Tax benefits recognized from stock-based compensation	15		13		11

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 our 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 stock option awards is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The fair value of the 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 our outside directors, which is recognized over the vesting period of one year or less.

During fiscal 2020, 2019 and 2018, we used a blended approach to measure expected volatility that is based on our weighted average historical and implied volatilities.

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. During fiscal 2018, we utilized the simplified method for the expected term, which represented an appropriate period of time that the options granted were expected to remain outstanding between the weighted-average vesting period and end of the respective contractual term. Upon re-examining our exercise history, the methodology used to calculate the expected term changed in fiscal 2019. Based on actual historical settlement data, the midpoint scenario is utilized with a one-year grant date filter assumption for outstanding options. We use 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
	January 1, 2021			January 3, 2020			December 28, 2018
Weighted average grant-date fair value	$	19.64		$	11.89		$	13.85
Expected term (in years)	4.5			4.4			4.7
Expected volatility	25.0		%	24.3		%	26.6		%
Risk-free interest rate	0.6		%	2.4		%	2.6		%
Dividend yield	1.3		%	2.2		%	2.0		%

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 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
Options granted	0.5	63.61
Options forfeited or expired	—	58.08
Options exercised	(0.5)	30.86			21
Outstanding at January 3, 2020	2.4	$	46.04	3.8	$	128
Options granted	0.3	106.73
Options forfeited or expired	(0.1)	66.84
Options exercised	(0.4)	35.94			29
Outstanding at January 1, 2021	2.2	56.01		3.5	108
Exercisable at January 1, 2021	1.4	$	42.85	2.5	$	85
Vested and expected to vest in the future as of January 1, 2021	2.2	$	55.67	3.5	$	108

As of January 1, 2021, there was $5 million of unrecognized compensation cost, net of estimated forfeitures, related to stock options, which is expected to be recognized over a weighted-average period of 2.1 years. Tax benefits from stock options exercised for fiscal 2020, 2019 and 2018 were $7 million, $5 million and $6 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.

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 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
Awards granted	0.6	64.70
Awards forfeited	(0.1)	60.20
Awards vested	(1.1)	44.10
Unvested stock awards at January 3, 2020	1.4	$	60.91
Awards granted	0.5	106.38
Awards forfeited	(0.1)	79.61
Awards vested	(0.5)	56.36
Unvested stock awards at January 1, 2021	1.3	$	79.05

As of January 1, 2021, there was $43 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 2020, 2019 and 2018 was $58 million, $66 million and $22 million, respectively. In addition, the fair value of dividend equivalents with respect to restricted stock units that vested was immaterial for fiscal 2020 and $1 million for fiscal 2019 and 2018.

Performance-Based Stock Awards

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 2020, 2019 and 2018, 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 2020, 2019 and 2018, we 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 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
Awards granted	0.2	66.92
Awards forfeited	—	66.72
Awards vested	(0.1)	45.83
Unvested at January 3, 2020	0.6	$	63.66
Awards granted	0.2	103.34
Awards forfeited	(0.1)	72.96
Awards vested	(0.2)	58.61
Unvested at January 1, 2021	0.5	$	80.20

The weighted average grant date fair value for performance-based stock, excluding those with a market condition, during fiscal 2020, 2019 and 2018 was $106.80, $62.66 and $63.76, respectively. The weighted average grant date fair value for performance-based stock with market conditions that were granted during fiscal 2020, 2019 and 2018 was $127.92, $72.53 and $71.50, respectively, and was calculated using the Monte Carlo simulation.

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


	Year Ended
	January 1, 2021			January 3, 2020			December 28, 2018
Expected volatility	23.99		%	22.02		%	25.37		%
Risk free rate of return	0.50		%	2.39		%	2.35		%
Weighted average grant date stock price	$	105.12		$	62.66		$	65.00

As of January 1, 2021, there was $15 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 2020, 2019 and 2018 was $25 million, $9 million, and $13 million, respectively.

Income Taxes

12 Months Ended

Jan. 01, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 20—Income Taxes

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Current:
Federal	$	90	$	122	$	46
State	37		31		23
Foreign	28		25		8
Deferred:
Federal	13		26		(41)
State	(11)		(3)		(10)
Foreign	(5)		(5)		2
Total	$	152	$	196	$	28

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
	January 1, 2021			January 3, 2020			December 28, 2018
	(in millions)
Amount computed at the statutory federal income tax rate	$	164		$	182		$	128
State income taxes, net of federal tax benefit	20			22			10
Research and development credits	(26)			(11)			(9)
Excess tax benefits from stock-based compensation	(15)			(11)			(9)
Impact of foreign operations	11			2			—
Change in valuation allowance for deferred tax assets	(5)			6			(49)
Dividends paid to employee stock ownership plan	(2)			(2)			(2)
Change in accruals for uncertain tax positions	1			4			1
Stock basis in subsidiary held for sale	—			5			(16)
Taxable conversion of a subsidiary	—			—			(17)
Change in statutory federal tax rate	—			—			(10)
Other	4			(1)			1
Total	$	152		$	196		$	28
Effective income tax rate	19.5		%	22.6		%	4.6		%

The effective tax rate for fiscal 2020 was favorably impacted primarily by federal research tax credits and excess tax benefits related to employee stock-based payment transactions, partially offset by taxes related to foreign operations.

The effective tax rate for fiscal 2019 was favorably impacted primarily by excess tax benefits related to employee stock-based payment transactions and federal research tax credits, partially offset by an increase in valuation allowances arising from foreign withholding tax and an increase in taxes related to the sale of the commercial cybersecurity business.

The 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.

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:


	January 1, 2021		January 3, 2020
	(in millions)
Operating lease liabilities	$	176	$	115
Accrued vacation and bonuses	87		54
Reserves	62		46
Deferred compensation	31		26
Credits and net operating losses carryovers	22		25
Vesting stock awards	22		18
Accumulated other comprehensive loss	16		12
Investments	1		2
Deferred rent and tenant allowances	—		4
Other	7		9
Total deferred tax assets	424		311
Valuation allowance	(16)		(20)
Deferred tax assets, net of valuation allowance	408		291

Purchased intangible assets	$	(409)	$	(339)
Operating lease right-of-use assets	(148)		(103)
Property, plant and equipment	(63)		(2)
Employee benefit contributions	(7)		(6)
Deferred revenue	(1)		(17)
Other	(5)		(8)
Total deferred tax liabilities	(633)		(475)
Net deferred tax liabilities	$	(225)	$	(184)

At January 1, 2021, we had state net operating losses of $77 million and state tax credits of $5 million. Both will begin to expire in fiscal 2021; however, we expect to utilize $37 million and $4 million of these state net operating losses and state tax credits, respectively. We also had foreign net operating losses of $46 million, which do not expire. We expect to utilize $4 million of these foreign net operating losses.

Our valuation allowance for deferred tax assets was $16 million and $20 million as of January 1, 2021 and January 3, 2020, respectively. The valuation allowance decreased by $4 million primarily due to releases related to foreign withholding taxes and capital investments, partially offset by an increase related to foreign attributes not expected to be utilized.

Income tax balance sheet items are included in the accompanying consolidated balance sheets as follows:


	January 1, 2021		January 3, 2020
	(in millions)
Other current assets:
Prepaid income taxes and tax refunds receivable	$	12	$	24
Other assets:
Deferred tax assets	$	9	$	—
Accounts payable and accrued liabilities:
Income taxes payable	$	21	$	19
Deferred tax liabilities	234		184
Other long-term liabilities:
Unrecognized tax benefits	$	4	$	1

Unrecognized tax benefits are primarily related to certain recurring deductions customary for our industry. The changes in the unrecognized tax benefits, excluding $1 million of accrued interest and penalties for fiscal 2018, were as follows:


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Unrecognized tax benefits at beginning of year	$	5	$	6	$	10
Additions for tax positions related to current year	—		—		3
Additions for tax positions related to prior years	1		11		—
Reductions for tax positions related to prior years	—		(1)		(5)
Settlements with taxing authorities	—		(11)		(2)
Unrecognized tax benefits at end of year	$	6	$	5	$	6
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	5	$	4	$	6

At January 1, 2021, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $6 million, $4 million of which were classified as other long-term liabilities on the consolidated balance sheets. At January 3, 2020, the balance of unrecognized tax benefits included liabilities for uncertain tax positions of $5 million, $1 million of which were classified as other long-term liabilities on the consolidated balance sheets. 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 consolidated balance sheets.

We file income tax returns in the United States and various state and foreign jurisdictions. We participate in the Internal Revenue Service (“IRS”) Compliance Assurance Process ("CAP"), a real-time audit of our consolidated federal corporate income tax return. The IRS has examined our consolidated federal income tax returns through the year ended January 3, 2020. For the year ended January 1, 2021, we were selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant use of IRS resources. We believe that participation in CAP should reduce tax-related uncertainties, if any. Additionally, with a few exceptions, as of January 1, 2021, we are no longer subject to state, local, or foreign examinations by the tax authorities for fiscal years ending on or before December 30, 2016.

During the next 12 months, it is reasonably possible that resolution of reviews by taxing authorities, both domestic and international, could be reached with respect to $4 million of our unrecognized tax benefits, depending on the timing of ongoing examinations, any litigation and expiration of statute of limitations, either because the tax positions are sustained or because we agree to their disallowance and pay the related income tax. While we believe we have adequate accruals for uncertain tax positions, the tax authorities may determine that we owe taxes in excess of recorded accruals or the recorded accruals may be in excess of the final settlement amounts agreed to by tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Retirement Plans	12 Months Ended
Retirement Plans	Jan. 01, 2021
Retirement Benefits [Abstract]
Retirement Plans	Note 21—Retirement Plans Defined Contribution Plans We sponsor 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 Leidos may also make discretionary contributions. Company contributions were $120 million, $105 million and $94 million for fiscal 2020, 2019 and 2018, respectively. Deferred Compensation Plans We maintain 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 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 cash compensation 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. We do not make any contributions to the KDP but maintain participant accounts for deferred amounts and investments. We maintain a rabbi trust for the purpose of funding benefit payments to the KDP participants. Participants may allocate deferred salary and 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 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 are fully vested and no further deferrals into the plan are made. We do not make any 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. Defined Benefit Plans We sponsor a defined benefit pension plan in the United Kingdom for former employees on an expired customer contract. While benefits under the plan are frozen, we have continuing defined benefit pension obligations with respect to certain plan participants. In fiscal 2012, we sold certain components of our business, including the component that contained this pension and employed the pension plan participants. Pursuant to the definitive sale agreement, we 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 January 1, 2021, and January 3, 2020, was $138 million and $121 million, respectively. The increase in the projected benefit obligation was primarily due to a loss resulting from changes in assumptions used in the valuation and adverse exchange rate movements in the British pound when compared to the U.S. dollar. The fair value of plan assets as of January 1, 2021, and January 3, 2020, was $157 million and $139 million, respectively. The plan funding status was overfunded $19 million and $18 million as of January 1, 2021, and January 3, 2020, respectively, and included within "Other assets" on the consolidated balance sheets. OtherWe also sponsor multiemployer defined benefit pension plans and a defined contribution plan (a 401(k) plan) (the "Sponsored Plans") for employees working on two U.S. government contracts. As part of the contractual agreements, the customers reimburse Leidos for contributions made to these Sponsored Plans as these costs are allowable under government contract cost accounting requirements. If we were to cease being the contractor as a result of a recompetition process, the defined benefit pension plans and related plan assets and liabilities would transfer to the new contractor. If the contract expires or is terminated with no transfer of the pension plan to a successor contractor, any amount by which the plan liabilities exceed plan assets, as of that date, will be reimbursed by the U.S. government customer. Since we are not responsible for the current or future funded status of the pension plans, no assets or liabilities arising from their funded status are recorded in the consolidated financial statements and no amounts associated with these pension plans are included in the defined benefit plan disclosures above.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Supplementary Cash Flow Information and Restricted Cash

12 Months Ended

Jan. 01, 2021

Supplemental Cash Flow Information [Abstract]

Supplementary Cash Flow Information and Restricted Cash

Note 22—Supplementary Cash Flow Information and Restricted Cash

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Supplementary cash flow information:
Cash paid for interest(1)	$	161	$	172	$	133
Cash paid for income taxes, net of refunds	140		142		70
Non-cash investing activity:
Fixed asset additions	$	18	$	27	$	—
Non-cash financing activity:
Real estate financing transaction	$	—	$	—	$	65
Notes payable and finance lease obligations	12		—		—

(1) Includes net settlement of cash flow hedge and fair value hedge derivatives

Sale of Accounts Receivable

We have entered into purchase agreements with a financial institution which provide us the election to sell accounts receivable at a discount. The receivables sold are typically collectable from our customers within 30 days of the sale date. During fiscal 2020, we sold $1,866 million of accounts receivable under the agreements and received proceeds of $1,864 million, which were classified as operating activities in the consolidated statements of cash flows.

These transfers have been recognized as a sale, as the receivables have been legally isolated from Leidos, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the consolidated balance sheets is presented net of the transferred amounts. No servicing asset or liability was recognized for continued servicing of the sold receivables, as the servicing fee approximates fair value. The difference between the carrying amount of the receivables sold and the net cash received was recognized as a loss on sale and was recorded within "Selling, general and administrative expenses" on the consolidated statements of income. As of January 1, 2021, all sold receivables had been remitted to the financial institution.

Restricted Cash

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:


	January 1, 2021		January 3, 2020
	(in millions)
Cash and cash equivalents	$	524	$	668
Restricted cash	163		49
Total cash, cash equivalents and restricted cash	$	687	$	717

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

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

Business Segments

12 Months Ended

Jan. 01, 2021

Segment Reporting [Abstract]

Business Segments

Note 23—Business Segments

Our operations and reportable segments are organized around the customers and markets we serve. We define our reportable segments based on the way the chief operating decision maker ("CODM"), currently the Chairman and Chief Executive Officer, manages the operations for purposes of allocating resources and assessing performance.

Our business is aligned into three reportable segments (Defense Solutions, Civil and Health). Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. Effective the beginning of fiscal 2020, certain contracts were reassigned from the Civil reportable segment to the Defense Solutions reportable segment to better align operations within the reportable segments to the customers they serve. Prior year segment results have been recast to reflect this change.

Defense Solutions provides leading-edge and technologically advanced services, solutions and products to a broad customer base. Our ever-changing technologies and innovations cover a wide spectrum of markets with primary areas of concentration in digital modernization and integrated systems, Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance technologies and services, transformative software, analytics, intelligence analysis, mission support and logistics services, weapons systems and human space exploration. We are dedicated to delivering cost-effective solutions backed by innovation-generating research and development to meet the evolving missions of our customers. We provide a diverse portfolio of national security solutions and systems for air, land, sea, space and cyberspace for the U.S. Intelligence Community, the DoD, the National Aeronautics and Space Administration, military services, government agencies of U.S. allies abroad and other federal and commercial customers in the national security industry. Our solutions deliver innovative technology, large-scale 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.

Our Civil business is focused on modernizing infrastructure, systems and security for government and commercial customers both domestically and internationally. By applying leading science, innovative technologies and business acumen, our talented employees help customers achieve their missions and take on the connected world with data-driven insights, improved efficiencies and technological advantages in the areas of transportation solutions, security detection and automation, digital transformation services and environment, energy and infrastructure.

Our Health business focuses on delivering effective and affordable solutions to federal and commercial customers that are responsible for the health and well-being of people worldwide, including service members and veterans. Our 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, life sciences, health services, clinical insights and health policy. The capabilities we provide predominantly fall in four major areas of activity: health information management services, managed health services, digital transformation and life sciences research and development.

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

The results of Dynetics and the SD&A Businesses were included within the Defense Solutions and Civil reportable segments, respectively.

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Revenues:
Defense Solutions	$	7,341	$	6,300	$	5,778
Civil	2,994		2,796		2,599
Health	1,962		1,998		1,817
Total revenues	$	12,297	$	11,094	$	10,194

Operating income (loss):
Defense Solutions	$	506	$	471	$	402
Civil	280		231		235
Health	235		242		230
Corporate	(23)		(32)		(118)
Total operating income	$	998	$	912	$	749

Amortization of intangible assets:
Defense Solutions	$	92	$	64	$	74
Civil	66		63		81
Health	40		46		46
Total amortization of intangible assets	$	198	$	173	$	201

The income statement performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other (expense) income, net," and "Income tax expense," as reported in the consolidated financial statements are not allocated to our segments. Under U.S. government CAS, indirect costs including depreciation expense are collected in indirect cost pools, which are then collectively allocated out to the 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 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.

We generated approximately 87% of our total revenues in fiscal 2020 and 2019 and 85% of our total revenues in fiscal 2018 from contracts with the U.S. government, either as a prime contractor or a subcontractor to other contractors engaged in work for the U.S. government. Revenues under contracts with the DoD and U.S. Intelligence Community, including subcontracts under which the DoD or the U.S. Intelligence Community is the ultimate purchaser, represented approximately 49% of our total revenues for fiscal 2020 and 48% for fiscal 2019 and 2018.

Less than 10% of the our revenues and tangible long-lived assets are generated by or owned by entities outside of the United States. As such, additional financial information by geographic location is not presented.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Contingencies	12 Months Ended
Contingencies	Jan. 01, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 24—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 the 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. On February 8, 2019, the Department of Justice 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 ("Defendants"). The complaint alleges violations of the False Claims Act, the Anti-Kickback Act and breach of contract with the DoE, among other things. On January 13, 2020, the Defendants' motions to dismiss were granted in part and denied in part. Litigation will proceed for the False Claims Act and other common law claims, although the Anti-Kickback Act claim has been dismissed with prejudice. 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 ("CBCA"), which was stayed pending resolution of the False Claims Act matter. 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. On December 10, 2019, MSA received a second final decision by the DoE contracting officer, estimating approximately $29 million in alleged unallowable profit and associated general and administrative costs during the period from 2015 to 2016 by LMSI. MSA filed an appeal of the second contracting officer's decision, which has been consolidated with the prior proceeding before the CBCA and stayed pending resolution of the False Claims Act matter. The DoE and MSA also executed an agreement to defer the entire amount of the disallowed costs from the second contracting officer's final decision until the CBCA proceedings are finally resolved. Leidos has agreed to indemnify Jacobs Group, LLC and Centerra Group, LLC for any liability MSA incurs in this matter. Under the terms of the Separation Agreement, Lockheed Martin agreed to indemnify Leidos 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 January 1, 2021, we had a liability of $42 million recorded in the consolidated balance sheets for this matter. The amount of possible loss ultimately incurred, if any, is subject to a range of complex factors and potential outcomes that remain to be determined, including information gathered during the course of litigation, pretrial and trial rulings and other litigation-related developments. Other We are also involved in various claims and lawsuits arising in the normal conduct of our business, none of which, in the opinion of management, based upon current information, will likely have a material adverse effect on our financial position, results of operations or cash flows. Other Contingencies VirnetX, Inc. ("VirnetX") 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. On August 1, 2019, the U.S. Court of Appeals for the Federal Circuit denied Apple's petition for panel and en banc rehearing, but Apple subsequently filed motions to stay and vacate the judgment, and for leave to file a second petition for rehearing. These motions were denied by the court on October 1, 2019. On December 27, 2019, Apple filed a petition in the Apple I matter for a writ of certiorari with the United States Supreme Court, which was denied on February 24, 2020. On February 20, 2020, Apple filed a Motion for Relief from Judgment in the U.S. District Court for the Eastern District of Texas, further arguing that VirnetX should not be allowed to recover the large amount of damages awarded in this case. On March 13, 2020, VirnetX announced that it had received payment from Apple of over $454 million, which represents the judgment with interest for the Apple I matter. On May 22, 2020, Leidos received $85 million from VirnetX representing Leidos' current share of the proceeds resulting from the Apple I case. A net gain of $81 million was recognized during fiscal 2020 and was presented in "Bad debt expense and recoveries" on the consolidated statements of income. On July 23, 2020, Leidos paid a 4% royalty on the proceeds received to the customer who paid for the development of the original technology. Apple's Motion for Relief from Judgment was denied by the District Court on September 1, 2020. Apple did not appeal the denial of this Motion; therefore, the Apple I case is now concluded. 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 filed an appeal of the judgment in the Apple II case with the U.S. Court of Appeals for the Federal Circuit, and on November 22, 2019, the Federal Circuit affirmed in part, reversed in part and remanded the Apple II case back to the District Court. The Federal Circuit affirmed that Apple infringed two of the patents at issue in the case, and ruled that Apple is precluded from making certain patent invalidity arguments. However, the Federal Circuit reversed the judgment that Apple infringed two other patents at issue, vacated the prior damages award in the Apple II case, and remanded the Apple II case back to the District Court for further proceedings regarding damages. On April 23, 2020, the District Court ordered a new trial on damages in the Apple II case, which was delayed by COVID-19 and started on October 26, 2020. On October 30, 2020, the jury awarded VirnetX $503 million in damages and specified a royalty rate of $0.84 per infringing device. Apple is expected to appeal this decision. In January 2021, the District Court entered final judgment affirming the jury award and the parties separately agreed on additional costs and interest of over $75 million, subject to Apple's expected appeal. Under its agreements with VirnetX, Leidos would receive 25% of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, the verdict in the Apple II case remains subject to the ongoing and potential future proceedings and appeals. 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 we will receive any proceeds in connection with the jury award in the Apple II case. In addition, if Leidos receives any proceeds, we are required to pay a royalty to the customer who paid for the development of the technology. Government Investigations and Reviews We are routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to our 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 our business, financial position, results of operations and cash flows due to our reliance on government contracts. As of January 1, 2021, indirect cost audits by the DCAA remain open for fiscal 2015 and subsequent fiscal years. Although we have recorded contract revenues based upon an estimate of costs that we believe will be approved upon final audit or review, we cannot predict the outcome of any ongoing or future audits or reviews and adjustments and, if future adjustments exceed estimates, our profitability may be adversely affected. As of January 1, 2021, we believe we have adequately reserved for potential adjustments from audits or reviews of contract costs. In February 2019, we executed an external restructuring advance agreement with the DoD in accordance with provisions of the Defense Federal Acquisition Regulation Supplement, which allows us to recover certain specified external restructuring costs.

Commitments

12 Months Ended

Jan. 01, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments

Note 25—Commitments

We have outstanding letters of credit of $91 million as of January 1, 2021, principally related to performance guarantees on contracts. We also have outstanding surety bonds with a notional amount of $129 million as of January 1, 2021, principally related to performance and subcontractor payment bonds on contracts. The value of the surety bonds may vary due to changes in the underlying project status and/or contractual modifications.

As of January 1, 2021, the future expirations of the outstanding letters of credit and surety bonds were as follows:


Fiscal year ending
	(in millions)
2021	$	112
2022	96
2023	2
2024	1
2025	2
2026 and thereafter	7
	$	220

Subsequent Events	12 Months Ended
Subsequent Events	Jan. 01, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 26—Subsequent Events On January 14, 2021, we completed the acquisition of 1901 Group for preliminary purchase consideration of $214 million, subject to working capital adjustments. In early fiscal 2021, we sold an additional $204 million of accounts receivable, of which the proceeds were partially used to fund the acquisition of 1901 Group. On February 22, 2021, we entered into a definitive agreement to acquire Gibbs & Cox, Inc. for preliminary purchase consideration of $380 million, subject to working capital adjustments. The transaction is expected to close in the second quarter of fiscal 2021.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 01, 2021

Accounting Policies [Abstract]

Accounting Standards Updates Adopted and Issued But Not Yet Adopted

Accounting Standards Updates Adopted

ASU 2016-13, ASU 2018-19, ASU 2019-05 and ASU 2019-11, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13 and subsequent updates, 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.

Effective January 4, 2020, we adopted the requirements of Topic 326 using the modified retrospective approach. The adoption resulted in an immaterial impact to our financial assets and processes for determining the expected credit loss.

Accounting Standards Updates Issued But Not Yet Adopted

ASU 2020-04, Reference Rate Reform (Topic 848)

In March 2020, the FASB issued ASU 2020-04 which provides companies with optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This update provides optional expedients for applying accounting guidance to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of the reference rate reform. The amendments in this update are effective for all entities as of March 2020 and can be adopted using a prospective approach no later than December 31, 2022. We are currently evaluating the impacts of the reference rate reform.

ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40)

In August 2020, the FASB issued ASU 2020-06 which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separate embedded conversion features from the host convertible instruments. Additionally, the amendments in this update simplify the guidance in Subtopic 815-40 by removing certain criteria that must be satisfied in order to classify a contract as equity. This update also improves the consistency of earnings per share calculations by requiring an entity to use the if-converted method of calculating diluted earnings per share rather than the treasury stock method for convertible instruments and also by requiring the inclusion of the potential effect of shares settled in cash or shares in the diluted earnings per share calculation. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, and can be adopted using either a fully or modified retrospective approach. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period.

We plan to early adopt this update in the beginning of fiscal 2021, and expect the associated financial statement impacts to be immaterial.

Reporting Periods

Leidos' fiscal year ends on the Friday nearest the end of December. Fiscal 2020 ended January 1, 2021. Fiscal 2020 and 2018 each included 52 weeks and fiscal 2019 included 53 weeks.

Use of Estimates

Use of EstimatesThe 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, right-of-use ("ROU") assets and lease liabilities, 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

Operating CycleOur 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

Business CombinationsThe accounting for business combinations requires management 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. Estimating the fair value of acquired assets and assumed liabilities, including intangibles, requires judgments about expected future cash flows, weighted-average cost of capital, discount rates and expected long-term growth rates.

Investments

Variable Interest Entities

Divestitures

DivestituresFrom time-to-time, we may dispose (or management may commit to plans to dispose) of strategic or non-strategic components of the business. Divestitures representing a strategic shift that has (or will have) a major effect in operations and financial results are classified as discontinued operations, whereas non-strategic divestitures remain in continuing operations.

Restructuring Expenses

Revenue Recognition

Contract Costs

Pre-contract Costs

Transition Costs

Project Assets

Changes in Estimates on Contracts

The impact on diluted earnings per share ("EPS") attributable to Leidos common stockholders is calculated using our statutory tax rate.The changes primarily relate to revisions of variable consideration, including award and incentive 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

Selling, general and administrative expenses include general and administrative, bid and proposal and company-funded research and development expenses.

Income Taxes

Cash and Cash Equivalents

Cash and Cash EquivalentsOur cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. Outstanding payments are included within "Cash and cash equivalents" and "Accounts payable and accrued liabilities" correspondingly on the consolidated balance sheets.

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

We estimate the fair value of each reporting unit using Level 3 inputs when a quantitative analysis is performed.

Intangible Assets

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


						Estimated useful lives (in years)
Backlog						1
Customer relationships						8-10
Programs						4-13
Software and technology						3-15
Trade names						3

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

1-15

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

Leases, Lessee

Lessee

The related lease payments on short-term facilities and equipment leases are recognized as expense on a straight-line basis over the lease term.

Leases, Lessor

Lessor

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

Stock-Based Compensation

Foreign Currency

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2021

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
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions, except for per share amounts)
Favorable impact	$	137	$	95	$	167
Unfavorable impact	(61)		(52)		(62)
Net favorable impact to income before income taxes	$	76	$	43	$	105

Impact on diluted EPS attributable to Leidos common stockholders	$	0.39	$	0.23	$	0.52

Schedule of finite-lived intangible assets

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


						Estimated useful lives (in years)
Backlog						1
Customer relationships						8-10
Programs						4-13
Software and technology						3-15
Trade names						3

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

1-15

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:


	January 1, 2021		January 3, 2020
	(in millions)
Computers and other equipment	$	386	$	259
Leasehold improvements	321		203
Buildings and improvements	142		23
Office furniture and fixtures	60		37
Land	18		4
Construction in progress	72		104
	999		630
Less: accumulated depreciation and amortization	(395)		(343)
	$	604	$	287

Revenues (Tables)

12 Months Ended

Jan. 01, 2021

Revenue from Contract with Customer [Abstract]

Schedule of disaggregated revenue

Disaggregated revenues by customer-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	5,407	$	59	$	519	$	5,985
Other government agencies(1)	995		2,418		1,329		4,742
Commercial and non-U.S. customers	937		426		107		1,470
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,767	$	67	$	491	$	5,325
Other government agencies(1)	685		2,291		1,332		4,308
Commercial and non-U.S. customers	847		345		151		1,343
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
DoD and U.S. Intelligence Community	$	4,427	$	60	$	386	$	4,873
Other government agencies(1)	494		2,071		1,276		3,841
Commercial and non-U.S. customers	857		468		155		1,480
Total	$	5,778	$	2,599	$	1,817	$	10,194

(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.

Disaggregated revenues by contract-type were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,504	$	1,411	$	280	$	6,195
Firm-fixed-price	2,067		1,061		1,303		4,431
Time-and-materials and fixed-price-level-of-effort	768		431		372		1,571
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	4,070	$	1,624	$	234	$	5,928
Firm-fixed-price	1,642		636		1,296		3,574
Time-and-materials and fixed-price-level-of-effort	587		443		444		1,474
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
Cost-reimbursement and fixed-price-incentive-fee	$	3,747	$	1,533	$	189	$	5,469
Firm-fixed-price	1,434		601		1,134		3,169
Time-and-materials and fixed-price-level-of-effort	597		465		494		1,556
Total	$	5,778	$	2,599	$	1,817	$	10,194

Disaggregated revenues by geographic location were as follows:


	Year Ended January 1, 2021
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	6,501	$	2,738	$	1,955	$	11,194
International	838		165		—		1,003
Total	$	7,339	$	2,903	$	1,955	$	12,197


	Year Ended January 3, 2020
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	5,494	$	2,632	$	1,974	$	10,100
International	805		71		—		876
Total	$	6,299	$	2,703	$	1,974	$	10,976


	Year Ended December 28, 2018
	Defense Solutions		Civil		Health		Total
	(in millions)
United States	$	4,963	$	2,485	$	1,817	$	9,265
International	815		114		—		929
Total	$	5,778	$	2,599	$	1,817	$	10,194

Contract Asset and Liabilities (Tables)

12 Months Ended

Jan. 01, 2021

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	January 1, 2021		January 3, 2020
		(in millions)
Contract assets - current:
Unbilled receivables	Receivables, net	$	906	$	735

Contract liabilities - current:
Deferred revenue	Accounts payable and accrued liabilities	$	481	$	400

Contract liabilities - non-current:
Deferred revenue	Other long-term liabilities	$	20	$	9

Acquisitions (Tables)

12 Months Ended

Jan. 01, 2021

Business Combinations [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

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


Cash	$	26
Receivables	135
Inventory	101
Other current assets	23
Operating lease right-of-use assets	35
Property, plant and equipment	33
Intangible assets	354
Accounts payable and accrued liabilities	(125)
Accrued payroll and employee benefits	(8)
Operating lease liabilities	(32)
Deferred tax liabilities	(52)
Other long-term liabilities	(13)
Total identifiable net assets acquired	477
Goodwill	569
Purchase price	$	1,046

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


Cash	$	18
Receivables	158
Inventory	47
Other current assets	18
Operating lease right-of-use assets	25
Property, plant and equipment	173
Intangible assets	528
Other assets	8
Accounts payable and accrued liabilities	(50)
Accrued payroll and employee benefits	(29)
Operating lease liabilities	(20)
Other long-term liabilities	(4)
Total identifiable net assets acquired	872
Goodwill	788
Purchase price	$	1,660

Preliminary fair value of intangible assets acquired at the transaction date and the related weighted average amortization period

The following table summarizes the preliminary fair value of intangible assets acquired at the Transaction Date and the related weighted average amortization period:


	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	13	$	141
Customer relationships	10	48
Technology	10	73
In-process research and development ("IPR&D")(1)		92
Total	11	$	354

(1) IPR&D assets are indefinite-lived at the acquisition date until placed into service, at which time such assets will be reclassified to a finite-lived amortizable intangible asset.

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


	Weighted average amortization period	Fair value
	(in years)	(in millions)
Programs	13	$	485
Backlog	1	32
Technology	11	11
Total	12	$	528

Schedule of business acquisitions, by acquisition

The following expenses were incurred related to the acquisitions of Dynetics and the SD&A Businesses:


	Year Ended
	January 1, 2021
	(in millions)
Acquisition costs	$	23
Integration costs	12
Total acquisition and integration costs	$	35

Business acquisition, pro forma information


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions, except per share amounts)
Revenues	$	12,553	$	12,250
Net income	618		583
Net income attributable to Leidos common stockholders	617		580

Earnings per share:
Basic	$	4.35	$	4.06
Diluted	4.28		4.00

Receivables (Tables)

12 Months Ended

Jan. 01, 2021

Receivables [Abstract]

Schedule of components of receivables

The components of receivables, net consisted of the following:


	January 1, 2021		January 3, 2020
	(in millions)
Billed and billable receivables	$	1,270	$	1,023
Unbilled receivables	906		735
Allowance for doubtful accounts	(39)		(24)
	$	2,137	$	1,734

Inventory (Tables)

12 Months Ended

Jan. 01, 2021

Inventory Disclosure [Abstract]

Schedule of inventory

The components of inventory, net consisted of the following:


	January 1, 2021		January 3, 2020
	(in millions)
Raw materials	$	136	$	46
Work in process	41		13
Finished goods	99		13
	$	276	$	72

Goodwill and Intangible Assets (Tables)

12 Months Ended

Jan. 01, 2021

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 28, 2018(1)	$	2,015	$	1,924	$	921	$	4,860
Goodwill re-allocation	25		(25)		—		—
Acquisition of IMX	—		—		50		50
Divestiture of health staff augmentation business	—		—		(5)		(5)
Foreign currency translation adjustments	(4)		8		—		4
Adjustment to goodwill(2)	3		—		—		3
Goodwill at January 3, 2020(1)	2,039		1,907		966		4,912
Goodwill re-allocation	429		(429)		—		—
Acquisition of Dynetics and the SD&A Businesses	788		569		—		1,357
Foreign currency translation adjustments	44		—		—		44
Goodwill at January 1, 2021(1)	$	3,300	$	2,047	$	966	$	6,313

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

(2) Immaterial correction was recorded with respect to fair value of assets and liabilities acquired from the IS&GS Transactions.

Schedule of intangible assets

Intangible assets consisted of the following:


	January 1, 2021						January 3, 2020
	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
	(in millions)
Finite-lived intangible assets:
Programs	$	1,632	$	(687)	$	945	$	1,003	$	(536)	$	467
Software and technology	188		(100)		88		102		(83)		19
Customer relationships	93		(10)		83		45		(6)		39
Backlog	32		(29)		3		—		—		—
Trade names	1		—		1		1		—		1
Total finite-lived intangible assets	1,946		(826)		1,120		1,151		(625)		526
Indefinite-lived intangible assets:
In-process research and development	92		—		92		—		—		—
Trade names	4		—		4		4		—		4
Total indefinite-lived intangible assets	96		—		96		4		—		4
Total intangible assets	$	2,042	$	(826)	$	1,216	$	1,155	$	(625)	$	530

Schedule of estimated annual amortization expense related to finite-lived intangible assets

The estimated annual amortization expense related to finite-lived intangible assets as of January 1, 2021, is as follows:


Fiscal Year Ending
	(in millions)
2021	$	203
2022	198
2023	174
2024	126
2025	101
2026 and thereafter	318
	$	1,120

Property Plant and Equipment (Tables)

12 Months Ended

Jan. 01, 2021

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

1-15

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:


	January 1, 2021		January 3, 2020
	(in millions)
Computers and other equipment	$	386	$	259
Leasehold improvements	321		203
Buildings and improvements	142		23
Office furniture and fixtures	60		37
Land	18		4
Construction in progress	72		104
	999		630
Less: accumulated depreciation and amortization	(395)		(343)
	$	604	$	287

Leases (Tables)

12 Months Ended

Jan. 01, 2021

Leases [Abstract]

Schedule of ROU assets and lease liabilities

ROU assets and lease liabilities consisted of the following:


	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
ROU assets:
Finance leases	Property, plant and equipment, net	$	10	$	7
Operating leases	Operating lease right-of-use assets, net	581		400
		$	591	$	407
Current lease liabilities:
Finance leases	Long-term debt, current portion	$	6	$	5
Operating leases	Accounts payable and accrued liabilities	127		132
		$	133	$	137
Non-current lease liabilities:
Finance leases	Long-term debt, net of current portion	$	5	$	2
Operating leases	Operating lease liabilities	564		326
		$	569	$	328

Schedule of lease cost

Total lease cost for the periods presented consisted of the following:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Finance lease cost:
Amortization of ROU assets	$	9	$	8
Interest on lease liabilities	—		1
	9		9

Operating lease cost(1)	169		155

Variable lease cost	103		107
Short-term lease cost	8		7
Less: Sublease income	(11)		(6)
Total lease cost	$	278	$	272

(1) Includes ROU lease expense of $145 million and $136 million for fiscal 2020 and 2019, respectively.

Lease terms and discount rates related to leases were as follows:


	January 1, 2021		January 3, 2020
Weighted-average remaining lease term (in years):
Finance leases	2.9		2.4
Operating leases	7.3		5.7
Weighted-average discount rate:
Finance leases	2.7	%	4.2	%
Operating leases	3.5	%	4.1	%

Other information related to leases was as follows:


	Year Ended
	January 1, 2021		January 3, 2020
	(in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$	—	$	1
Operating cash related to operating leases	164		163
Financing cash flows related to finance leases	9		8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	$	12	$	—
Operating lease liabilities	314		141

Future minimum lease commitments of operating leases

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Future minimum lease commitments of finance leases

Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 1, 2021, were as follows:


Fiscal Year Ending	Finance lease commitments		Operating lease commitments
	(in millions)
2021	$	6	$	148
2022	2		126
2023	2		108
2024	—		94
2025	—		69
2026 and thereafter	1		245
Total undiscounted cash flows	11		790
Less: imputed interest	—		(99)
Lease liability as of January 1, 2021	$	11	$	691

Schedule of rental expense

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


	Year Ended
	December 28, 2018
	(in millions)
Gross rental expense	$	163
Less: sublease income	(1)
Net rental expense	$	162

Schedule of components of lease income, sale-type lease

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

Schedule of components of lease income, operating lease

The components of lease income were as follows:


		Year Ended
	Income statement line item	January 1, 2021		January 3, 2020
		(in millions)
Sales-type leases:
Selling price at lease commencement	Revenues	$	61	$	84
Cost of underlying asset	Cost of revenues	(47)		(86)
Operating income (loss)		14		(2)
Interest income on lease receivables	Revenues	8		6
		22		4

Operating lease income	Revenues	31		28
Total lease income		$	53	$	32

Schedule of undiscounted cash flows for operating leases

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Schedule of undiscounted cash flows for sales-type and direct finance leases

As of January 1, 2021, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:


Fiscal Year Ending	Sales-type leases		Operating leases
	(in millions)
2021	$	35	$	27
2022	23		29
2023	10		29
2024	4		30
2025	2		—
Total undiscounted cash flows	$	74	$	115
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	$	10

Fair Value Measurements (Tables)

12 Months Ended

Jan. 01, 2021

Fair Value Disclosures [Abstract]

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

Financial instruments measured on a recurring basis at fair value consisted of the following:


	January 1, 2021				January 3, 2020
	Carrying value		Fair value		Carrying value		Fair value
	(in millions)
Financial assets:
Derivatives	$	1	$	1	$	2	$	2
Financial liabilities:
Derivatives	103		103		75		75

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Jan. 01, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The fair value of the interest rate swaps and foreign currency forward contracts was as follows:


	Asset derivatives
	Balance sheet line item	January 1, 2021		January 3, 2020
		(in millions)
Fair value interest rate swaps	Other assets	$	—	$	2
Foreign currency forward contracts	Other current assets	1		—
		$	1	$	2

Liability derivatives

Balance sheet line item

January 1,
2021

January 3,
2020

(in millions)

Cash flow interest rate swaps

Other long-term liabilities

103

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

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Total interest expense, net presented in the consolidated statements of income in which the effects of cash flow hedges are recorded	$	179	$	133	$	138

Amount recognized in other comprehensive income (loss)	$	(61)	$	(55)	$	(7)
Amount reclassified from accumulated other comprehensive loss to interest expense, net	14		(7)		(6)

Debt (Tables)

12 Months Ended

Jan. 01, 2021

Debt Disclosure [Abstract]

Schedule of company's debt

Debt consisted of the following:


	Stated interest rate		Effective interest rate		January 1, 2021(1)		January 3, 2020(1)
					(in millions)
Senior unsecured term loan:
$1,925 million Term Loan, due January 2025	1.53	%	1.79	%	$	1,391	$	—
Senior secured term loans:
$690 million Term Loan A, due August 2023	3.31	%	3.74	%	—		581
$310 million Term Loan A, due August 2023	3.31	%	3.76	%	—		242
$1,131 million Term Loan B, due August 2025	3.56	%	3.91	%	—		1,075
Senior unsecured notes:
$450 million notes, due December 2020	4.45	%	4.53	%	—		452
$500 million notes, due May 2023	2.95	%	3.17	%	497		—
$500 million notes, due May 2025	3.63	%	3.76	%	496		—
$1,000 million notes, due February 2031	2.30	%	2.38	%	989		—
$750 million notes, due May 2030	4.38	%	4.50	%	737		—
$250 million notes, due July 2032	7.13	%	7.43	%	247		247
$300 million notes, due July 2033	5.50	%	5.88	%	158		158
$300 million notes, due December 2040	5.95	%	6.03	%	216		216
Notes payable and finance leases due on various dates through fiscal 2030	2.15%-5.49%		Various		13		15
Total long-term debt					4,744		2,986
Less: current portion					(100)		(61)
Total long-term debt, net of current portion					$	4,644	$	2,925

Schedule of future minimum payments of debt

Future minimum payments of debt are as follows:


Fiscal Year Ending
	(in millions)
2021	$	104
2022	99
2023	670
2024	193
2025	1,349
2026 and thereafter	2,380
Total principal payments	4,795
Less: unamortized debt discount and issuance costs	(51)
Total long-term debt	$	4,744

- 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)
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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=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-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=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-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
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jan. 01, 2021

Equity [Abstract]

Schedule of changes in the components of accumulated other comprehensive loss

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


	Foreign currency translation adjustments		Unrecognized gain (loss) on derivative instruments		Pension adjustments		Total accumulated other comprehensive loss
	(in millions)
Balance at December 29, 2017	$	17	$	14	$	2	$	33
Cumulative adjustments related to ASU adoptions	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	—		(6)		—		(6)
Balance at December 28, 2018	(41)		14		(3)		(30)
Other comprehensive income (loss)	5		(55)		(1)		(51)
Taxes	3		15		—		18
Reclassification from accumulated other comprehensive loss	—		(7)		—		(7)
Balance at January 3, 2020	(33)		(33)		(4)		(70)
Other comprehensive income (loss)	70		(61)		(3)		6
Taxes	(7)		10		1		4
Reclassification from accumulated other comprehensive loss	—		14		—		14
Balance at January 1, 2021	$	30	$	(70)	$	(6)	$	(46)

Composition of Certain Financial Statement Captions (Tables)

12 Months Ended

Jan. 01, 2021

Disclosure Schedule Of Certain Financial Statement Captions [Abstract]

Schedule of composition of certain financial statement captions


Balance Sheet	January 1, 2021		January 3, 2020
	(in millions)
Other current assets:
Restricted cash	$	163	$	49
Transition costs and project assets(1)	104		98
Pre-contract costs	7		6
Other(2)(3)	128		185
	$	402	$	338
Other assets:
Transition costs and project assets(1)	$	187	$	207
Equity method investments(4)	15		19
Other(2)	256		200
	$	458	$	426
Accounts payable and accrued liabilities:
Accrued liabilities	$	939	$	822
Accounts payable	731		592
Deferred revenue	481		400
Other(2)	24		23
	$	2,175	$	1,837
Accrued payroll and employee benefits:
Accrued vacation	$	329	$	232
Salaries, bonuses and amounts withheld from employees’ compensation	303		203
	$	632	$	435

(1) During the year ended January 1, 2021 and January 3, 2020, $575 million and $417 million, respectively, of amortization was recognized related to transition costs and project assets.

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

Condensed income statement


	Year Ended
Income Statement	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Interest expense, net:
Interest expense	$	(182)	$	(147)	$	(145)
Interest income	3		14		7
	$	(179)	$	(133)	$	(138)
Other (expense) income, net
Loss on debt extinguishment	$	(36)	$	—	$	(1)
Gain on sale of businesses	—		88		—
(Loss) gain on foreign currencies	(4)		(1)		2
Other income (expense), net	2		—		(2)
	$	(38)	$	87	$	(1)

Earnings Per Share ("EPS") (Tables)

12 Months Ended

Jan. 01, 2021

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
	January 1, 2021	January 3, 2020	December 28, 2018
	(in millions)
Basic weighted average number of shares outstanding	142	143	151
Dilutive common share equivalents—stock options and other stock awards	2	2	2
Diluted weighted average number of shares outstanding	144	145	153

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2021

Share-based Payment Arrangement [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
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Total stock-based compensation expense	$	62	$	52	$	44
Tax benefits recognized from stock-based compensation	15		13		11

Schedule of monte carlo simulation assumptions

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
	January 1, 2021			January 3, 2020			December 28, 2018
Weighted average grant-date fair value	$	19.64		$	11.89		$	13.85
Expected term (in years)	4.5			4.4			4.7
Expected volatility	25.0		%	24.3		%	26.6		%
Risk-free interest rate	0.6		%	2.4		%	2.6		%
Dividend yield	1.3		%	2.2		%	2.0		%

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


	Year Ended
	January 1, 2021			January 3, 2020			December 28, 2018
Expected volatility	23.99		%	22.02		%	25.37		%
Risk free rate of return	0.50		%	2.39		%	2.35		%
Weighted average grant date stock price	$	105.12		$	62.66		$	65.00

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 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
Options granted	0.5	63.61
Options forfeited or expired	—	58.08
Options exercised	(0.5)	30.86			21
Outstanding at January 3, 2020	2.4	$	46.04	3.8	$	128
Options granted	0.3	106.73
Options forfeited or expired	(0.1)	66.84
Options exercised	(0.4)	35.94			29
Outstanding at January 1, 2021	2.2	56.01		3.5	108
Exercisable at January 1, 2021	1.4	$	42.85	2.5	$	85
Vested and expected to vest in the future as of January 1, 2021	2.2	$	55.67	3.5	$	108

Schedule of restricted stock units and awards 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 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
Awards granted	0.6	64.70
Awards forfeited	(0.1)	60.20
Awards vested	(1.1)	44.10
Unvested stock awards at January 3, 2020	1.4	$	60.91
Awards granted	0.5	106.38
Awards forfeited	(0.1)	79.61
Awards vested	(0.5)	56.36
Unvested stock awards at January 1, 2021	1.3	$	79.05

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 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
Awards granted	0.2	66.92
Awards forfeited	—	66.72
Awards vested	(0.1)	45.83
Unvested at January 3, 2020	0.6	$	63.66
Awards granted	0.2	103.34
Awards forfeited	(0.1)	72.96
Awards vested	(0.2)	58.61
Unvested at January 1, 2021	0.5	$	80.20

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2021

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Current:
Federal	$	90	$	122	$	46
State	37		31		23
Foreign	28		25		8
Deferred:
Federal	13		26		(41)
State	(11)		(3)		(10)
Foreign	(5)		(5)		2
Total	$	152	$	196	$	28

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
	January 1, 2021			January 3, 2020			December 28, 2018
	(in millions)
Amount computed at the statutory federal income tax rate	$	164		$	182		$	128
State income taxes, net of federal tax benefit	20			22			10
Research and development credits	(26)			(11)			(9)
Excess tax benefits from stock-based compensation	(15)			(11)			(9)
Impact of foreign operations	11			2			—
Change in valuation allowance for deferred tax assets	(5)			6			(49)
Dividends paid to employee stock ownership plan	(2)			(2)			(2)
Change in accruals for uncertain tax positions	1			4			1
Stock basis in subsidiary held for sale	—			5			(16)
Taxable conversion of a subsidiary	—			—			(17)
Change in statutory federal tax rate	—			—			(10)
Other	4			(1)			1
Total	$	152		$	196		$	28
Effective income tax rate	19.5		%	22.6		%	4.6		%

Deferred tax assets (liabilities)


	January 1, 2021		January 3, 2020
	(in millions)
Operating lease liabilities	$	176	$	115
Accrued vacation and bonuses	87		54
Reserves	62		46
Deferred compensation	31		26
Credits and net operating losses carryovers	22		25
Vesting stock awards	22		18
Accumulated other comprehensive loss	16		12
Investments	1		2
Deferred rent and tenant allowances	—		4
Other	7		9
Total deferred tax assets	424		311
Valuation allowance	(16)		(20)
Deferred tax assets, net of valuation allowance	408		291

Purchased intangible assets	$	(409)	$	(339)
Operating lease right-of-use assets	(148)		(103)
Property, plant and equipment	(63)		(2)
Employee benefit contributions	(7)		(6)
Deferred revenue	(1)		(17)
Other	(5)		(8)
Total deferred tax liabilities	(633)		(475)
Net deferred tax liabilities	$	(225)	$	(184)

Summary of income tax related balance on balance sheet

Income tax balance sheet items are included in the accompanying consolidated balance sheets as follows:


	January 1, 2021		January 3, 2020
	(in millions)
Other current assets:
Prepaid income taxes and tax refunds receivable	$	12	$	24
Other assets:
Deferred tax assets	$	9	$	—
Accounts payable and accrued liabilities:
Income taxes payable	$	21	$	19
Deferred tax liabilities	234		184
Other long-term liabilities:
Unrecognized tax benefits	$	4	$	1

Schedule of changes in the unrecognized tax benefits

The changes in the unrecognized tax benefits, excluding $1 million of accrued interest and penalties for fiscal 2018, were as follows:


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Unrecognized tax benefits at beginning of year	$	5	$	6	$	10
Additions for tax positions related to current year	—		—		3
Additions for tax positions related to prior years	1		11		—
Reductions for tax positions related to prior years	—		(1)		(5)
Settlements with taxing authorities	—		(11)		(2)
Unrecognized tax benefits at end of year	$	6	$	5	$	6
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$	5	$	4	$	6

Supplementary Cash Flow Information and Restricted Cash (Tables)

12 Months Ended

Jan. 01, 2021

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
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Supplementary cash flow information:
Cash paid for interest(1)	$	161	$	172	$	133
Cash paid for income taxes, net of refunds	140		142		70
Non-cash investing activity:
Fixed asset additions	$	18	$	27	$	—
Non-cash financing activity:
Real estate financing transaction	$	—	$	—	$	65
Notes payable and finance lease obligations	12		—		—

(1) Includes net settlement of cash flow hedge and fair value hedge derivatives

Restrictions on cash and cash equivalents


	January 1, 2021		January 3, 2020
	(in millions)
Cash and cash equivalents	$	524	$	668
Restricted cash	163		49
Total cash, cash equivalents and restricted cash	$	687	$	717

Schedule of cash and cash equivalents


	January 1, 2021		January 3, 2020
	(in millions)
Cash and cash equivalents	$	524	$	668
Restricted cash	163		49
Total cash, cash equivalents and restricted cash	$	687	$	717

Business Segments (Tables)

12 Months Ended

Jan. 01, 2021

Segment Reporting [Abstract]

Schedule of business segment information

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


	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Revenues:
Defense Solutions	$	7,341	$	6,300	$	5,778
Civil	2,994		2,796		2,599
Health	1,962		1,998		1,817
Total revenues	$	12,297	$	11,094	$	10,194

Operating income (loss):
Defense Solutions	$	506	$	471	$	402
Civil	280		231		235
Health	235		242		230
Corporate	(23)		(32)		(118)
Total operating income	$	998	$	912	$	749

Amortization of intangible assets:
Defense Solutions	$	92	$	64	$	74
Civil	66		63		81
Health	40		46		46
Total amortization of intangible assets	$	198	$	173	$	201

Commitments (Tables)

12 Months Ended

Jan. 01, 2021

Commitments and Contingencies Disclosure [Abstract]

Guaranteed obligation, fiscal year maturity

As of January 1, 2021, the future expirations of the outstanding letters of credit and surety bonds were as follows:


Fiscal year ending
	(in millions)
2021	$	112
2022	96
2023	2
2024	1
2025	2
2026 and thereafter	7
	$	220

Nature of Operations and Basis of Presentation (Details) - segment	12 Months Ended
	Jan. 01, 2021	Jan. 26, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of reportable segments	3
Mission Support Alliance, LLC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Ownership percentage (in percentage)	88.00%
Mission Support Alliance, LLC \| Mission Supporting Alliance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Voting interest (in percentage)		41.00%
Hanford Mission Integration Solutions
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Ownership percentage (in percentage)	53.00%

Summary of Significant Accounting Policies (Changes in Estimates on Contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Accounting Policies [Abstract]
Favorable impact	$ 137	$ 95	$ 167
Unfavorable impact	(61)	(52)	(62)
Net favorable impact to income before income taxes	$ 76	$ 43	$ 105
Impact on diluted EPS attributable to Leidos common stockholders (usd per share)	$ 0.39	$ 0.23	$ 0.52

Summary of Significant Accounting Policies (Additional Information) (Details) $ in Millions	12 Months Ended
	Jan. 01, 2021 USD ($) reportingUnit	Jan. 03, 2020 USD ($) reportingUnit	Dec. 28, 2018 USD ($)
Significant Accounting Policies [Line Items]
Contract with customer, performance obligation satisfied in previous period	$ 40	$ 56	$ 102
Internal research and development costs included in selling, general and administrative expenses	73	49	$ 46
Accounts payable and accrued liabilities	$ 2,175	$ 1,837
Number of reporting units \| reportingUnit	7	6
Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Accounts payable and accrued liabilities	$ 237	$ 169

Summary of Significant Accounting Policies (Intangibles) (Details)	12 Months Ended
	Jan. 01, 2021
Backlog
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	1 year
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	8 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	10 years
Programs \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	4 years
Programs \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	13 years
Software and technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	3 years
Software and technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	15 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets (in years)	3 years

Summary of Significant Accounting Policies (Schedule of Depreciation using Estimated Useful Lives) (Details)	12 Months Ended
	Jan. 01, 2021
Computers and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	1 year
Computers and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	15 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Office furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	6 years
Office furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	9 years

Revenues (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Revenues (Narrative) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue	$ 15,700
Revenue recognized under ASC 842	$ 100	$ 118
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue (as percent)	50.00%
Remaining performance obligations, which are expected to be recognized as revenue, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue (as percent)	16.00%
Remaining performance obligations, which are expected to be recognized as revenue, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue (as percent)	34.00%
Remaining performance obligations, which are expected to be recognized as revenue, period

Revenues (Disaggregation of revenue) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 12,197	$ 10,976	$ 10,194
United States
Disaggregation of Revenue [Line Items]
Revenues	11,194	10,100	9,265
International
Disaggregation of Revenue [Line Items]
Revenues	1,003	876	929
Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	6,195	5,928	5,469
Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	4,431	3,574	3,169
Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	1,571	1,474	1,556
DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	5,985	5,325	4,873
Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	4,742	4,308	3,841
Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	1,470	1,343	1,480
Defense Solutions
Disaggregation of Revenue [Line Items]
Revenues	7,339	6,299	5,778
Defense Solutions \| United States
Disaggregation of Revenue [Line Items]
Revenues	6,501	5,494	4,963
Defense Solutions \| International
Disaggregation of Revenue [Line Items]
Revenues	838	805	815
Defense Solutions \| Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	4,504	4,070	3,747
Defense Solutions \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	2,067	1,642	1,434
Defense Solutions \| Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	768	587	597
Defense Solutions \| DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	5,407	4,767	4,427
Defense Solutions \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	995	685	494
Defense Solutions \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	937	847	857
Civil
Disaggregation of Revenue [Line Items]
Revenues	2,903	2,703	2,599
Civil \| United States
Disaggregation of Revenue [Line Items]
Revenues	2,738	2,632	2,485
Civil \| International
Disaggregation of Revenue [Line Items]
Revenues	165	71	114
Civil \| Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	1,411	1,624	1,533
Civil \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,061	636	601
Civil \| Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	431	443	465
Civil \| DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	59	67	60
Civil \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	2,418	2,291	2,071
Civil \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	426	345	468
Health
Disaggregation of Revenue [Line Items]
Revenues	1,955	1,974	1,817
Health \| United States
Disaggregation of Revenue [Line Items]
Revenues	1,955	1,974	1,817
Health \| International
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Health \| Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	280	234	189
Health \| Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,303	1,296	1,134
Health \| Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	372	444	494
Health \| DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	519	491	386
Health \| Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	1,329	1,332	1,276
Health \| Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	$ 107	$ 151	$ 155

Contract Asset and Liabilities (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Revenue from Contract with Customer [Abstract]
Contract assets - current	$ 906	$ 735
Deferred revenue	481	400
Contract liabilities - non-current	$ 20	$ 9

Contract Asset and Liabilities (Additional Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Revenue from Contract with Customer [Abstract]
Contract liability revenue recognized	$ 275	$ 207

Acquisitions (Narrative) (Details) - USD ($) $ in Millions					12 Months Ended
Acquisitions (Narrative) (Details) - USD ($) $ in Millions	May 04, 2020	Jan. 31, 2020	Aug. 15, 2019	Jan. 18, 2018	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Restructuring Cost and Reserve [Line Items]
Revenues					$ 12,197	$ 10,976	$ 10,194
Payments to acquire businesses, net of cash acquired					2,655	94	81
Net cash provided by operating activities					(1,334)	(992)	(768)
Net cash (used in) provided by investing activities					2,815	(65)	114
Payment of tax indemnification liability					0	0	23
SD&A Businesses and Dynetics
Restructuring Cost and Reserve [Line Items]
Acquisition costs					23
SD&A Businesses
Restructuring Cost and Reserve [Line Items]
Preliminary purchase consideration, net of cash acquired	$ 1,020
Cash acquired	26
Payments to acquire businesses	1,015
Payment for contractual net working capital acquired	31
Goodwill tax deductible amount	425
Revenues					243
Fair value	$ 354
Acquired finite-lived intangible assets, weighted average useful life	11 years
SD&A Businesses \| Customer relationships
Restructuring Cost and Reserve [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	10 years
Dynetics
Restructuring Cost and Reserve [Line Items]
Revenues					937
Payments to acquire businesses, net of cash acquired		$ 1,640
Fair value		$ 528
Acquired finite-lived intangible assets, weighted average useful life		12 years
IMX
Restructuring Cost and Reserve [Line Items]
Goodwill tax deductible amount			$ 50
Business combination, consideration transferred			94
Fair value			42
IMX \| Customer relationships
Restructuring Cost and Reserve [Line Items]
Fair value			$ 41
Acquired finite-lived intangible assets, weighted average useful life			10 years
Information Systems & Global Solutions Business of Lockheed Martin
Restructuring Cost and Reserve [Line Items]
Net working capital				$ 105
Net cash provided by operating activities				24
Net cash (used in) provided by investing activities				$ 81
Integration costs					$ 1	$ 3	$ 29

Acquisitions (Schedule of preliminary fair values of the assets acquired and liabilities assumed) (Details) - USD ($) $ in Millions	Jan. 01, 2021	May 04, 2020	Jan. 31, 2020	Jan. 03, 2020	Dec. 28, 2018
Business Acquisition [Line Items]
Goodwill	$ 6,313			$ 4,912	$ 4,860
SD&A Businesses
Business Acquisition [Line Items]
Cash		$ 26
Receivables		135
Inventory		101
Other current assets		23
Operating lease right-of-use assets		35
Property, plant and equipment		33
Intangible assets		354
Accounts payable and accrued liabilities		(125)
Accrued payroll and employee benefits		(8)
Operating lease liabilities		(32)
Deferred tax liabilities		(52)
Other long-term liabilities		(13)
Total identifiable net assets acquired		477
Goodwill		569
Purchase price		$ 1,046
Dynetics
Business Acquisition [Line Items]
Cash			$ 18
Receivables			158
Inventory			47
Other current assets			18
Operating lease right-of-use assets			25
Property, plant and equipment			173
Intangible assets			528
Other assets			8
Accounts payable and accrued liabilities			(50)
Accrued payroll and employee benefits			(29)
Operating lease liabilities			(20)
Other long-term liabilities			(4)
Total identifiable net assets acquired			872
Goodwill			788
Purchase price			$ 1,660

Acquisitions (Schedule of intangible assets acquired) (Details) - USD ($) $ in Millions	May 04, 2020	Jan. 31, 2020
SD&A Businesses
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	11 years
Fair value	$ 354
SD&A Businesses \| In-process research and development ("IPR&D")
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 92
Dynetics
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		12 years
Finite-lived lntangible assets		$ 528
Fair value		$ 528
Programs \| SD&A Businesses
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	13 years
Finite-lived lntangible assets	$ 141
Programs \| Dynetics
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		13 years
Finite-lived lntangible assets		$ 485
Customer relationships \| SD&A Businesses
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Finite-lived lntangible assets	$ 48
Backlog \| Dynetics
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		1 year
Finite-lived lntangible assets		$ 32
Technology \| SD&A Businesses
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Finite-lived lntangible assets	$ 73
Technology \| Dynetics
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		11 years
Finite-lived lntangible assets		$ 11

Acquisitions (Acquisition expenses incurred) (Details) - SD&A Businesses and Dynetics $ in Millions	12 Months Ended
	Jan. 01, 2021 USD ($)
Business Acquisition [Line Items]
Acquisition costs	$ 23
Integration costs	12
Total acquisition and integration costs	$ 35

Acquisitions (Pro Forma Information) (Details) - SD&A Businesses and Dynetics - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Business Acquisition [Line Items]
Revenues	$ 12,553	$ 12,250
Net income	618	583
Net income attributable to Leidos common stockholders	$ 617	$ 580
Earnings per share:
Basic (in dollars per share)	$ 4.35	$ 4.06
Diluted (in dollars per share)	$ 4.28	$ 4.00

Divestitures (Details) - USD ($) $ in Millions			12 Months Ended
Divestitures (Details) - USD ($) $ in Millions	Sep. 12, 2019	Feb. 20, 2019	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of businesses			$ 0	$ 88	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Health Staff Augmentation Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, consideration				$ 13
Proceeds from divestiture of businesses	$ 12
Assets divested	$ 12
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Commercial Cybersecurity Business \| Civil
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, consideration		$ 166
Assets divested		68
Gain on sale of businesses		88
Transaction cost of business disposal		10
Receivables, net		14
Goodwill		57
Accounts payable and accrued liabilities		$ 13

Receivables (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Receivables [Abstract]
Billed and billable receivables	$ 1,270	$ 1,023
Unbilled receivables	906	735
Allowance for doubtful accounts	(39)	(24)
Accounts receivable, net	$ 2,137	$ 1,734

Inventory (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 136	$ 46
Work in process	41	13
Finished goods	99	13
Inventory, net	$ 276	$ 72

Goodwill and Intangible Assets (Schedule of Changes in Goodwill by Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Goodwill [Roll Forward]
Beginning balance, Goodwill	$ 4,912	$ 4,860
Goodwill re-allocation	0	0
Goodwill acquired during period	1,357	50
Divestiture of health staff augmentation business		(5)
Foreign currency translation adjustments	44	4
Adjustment to goodwill		3
Ending balance, Goodwill	6,313	4,912
Defense Solutions
Goodwill [Roll Forward]
Beginning balance, Goodwill	2,039	2,015
Goodwill re-allocation	429	25
Goodwill acquired during period	788	0
Divestiture of health staff augmentation business		0
Foreign currency translation adjustments	44	(4)
Adjustment to goodwill		3
Ending balance, Goodwill	3,300	2,039
Civil
Goodwill [Roll Forward]
Beginning balance, Goodwill	1,907	1,924
Goodwill re-allocation	(429)	(25)
Goodwill acquired during period	569	0
Divestiture of health staff augmentation business		0
Foreign currency translation adjustments	0	8
Adjustment to goodwill		0
Ending balance, Goodwill	2,047	1,907
Goodwill impairment charges	117	117	$ 117
Health
Goodwill [Roll Forward]
Beginning balance, Goodwill	966	921
Goodwill re-allocation	0	0
Goodwill acquired during period	0	50
Divestiture of health staff augmentation business		(5)
Foreign currency translation adjustments	0	0
Adjustment to goodwill		0
Ending balance, Goodwill	966	966
Goodwill impairment charges	$ 369	$ 369	$ 369

Goodwill and Intangible Assets (Narrative) (Details)	12 Months Ended
Goodwill and Intangible Assets (Narrative) (Details)	Jan. 01, 2021 USD ($) segment	Jan. 03, 2020 USD ($)	Dec. 28, 2018 USD ($)
Indefinite-lived Intangible Assets [Line Items]
Goodwill re-allocation	$ 0	$ 0
Number of reportable segments, goodwill reallocation \| segment	2
Goodwill impairments	$ 0	0	$ 0
Amortization of intangible assets	198,000,000	173,000,000	201,000,000
Defense Solutions
Indefinite-lived Intangible Assets [Line Items]
Goodwill re-allocation	429,000,000	25,000,000
Goodwill impairments	0
Amortization of intangible assets	$ 92,000,000	$ 64,000,000	$ 74,000,000

Goodwill and Intangible Assets (Schedule of intangible assets) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 1,946	$ 1,151
Finite-Lived Intangible Assets, Accumulated Amortization	(826)	(625)
Net carrying value	1,120	526
Indefinite-lived intangible assets	96	4
Total intangible assets, Gross carrying value	2,042	1,155
Total intangible assets, Net carrying value	1,216	530
In-process research and development
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	92
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4	4
Programs
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,632	1,003
Finite-Lived Intangible Assets, Accumulated Amortization	(687)	(536)
Net carrying value	945	467
Software and technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	188	102
Finite-Lived Intangible Assets, Accumulated Amortization	(100)	(83)
Net carrying value	88	19
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	93	45
Finite-Lived Intangible Assets, Accumulated Amortization	(10)	(6)
Net carrying value	83	39
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	32	0
Finite-Lived Intangible Assets, Accumulated Amortization	(29)	0
Net carrying value	3	0
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1	1
Finite-Lived Intangible Assets, Accumulated Amortization	0	0
Net carrying value	$ 1	$ 1

Goodwill and Intangible Assets (Schedule of estimated annual amortization expense) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Estimated Annual Intangible Amortization Expense
2021	$ 203
2022	198
2023	174
2024	126
2025	101
2026 and thereafter	318
Net carrying value	$ 1,120	$ 526

Property Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	$ 999	$ 630
Less: accumulated depreciation and amortization	(395)	(343)
Property, plant and equipment, net, including finance lease ROU assets	604	287
Computers and other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	386	259
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	321	203
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	142	23
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	60	37
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	18	4
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross, including finance lease ROU assets	$ 72	$ 104

Property Plant and Equipment (Narrative) (Details) $ in Millions			3 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 28, 2018 USD ($) building	Mar. 30, 2018 USD ($)	Jan. 01, 2021 USD ($)	Jan. 03, 2020 USD ($)	Dec. 28, 2018 USD ($) building	Dec. 29, 2018 USD ($)
Property, Plant and Equipment [Line Items]
Depreciation				$ 84	$ 61	$ 56
Net proceeds from sale of property				12	96	0
Proceeds from real estate financing activities				$ 0	0	$ 14
Gaithersburg, Maryland Property
Property, Plant and Equipment [Line Items]
Net proceeds from sale of property	$ 31
Carrying value of property	$ 31
Impairment charges			$ 7
San Diego Properties
Property, Plant and Equipment [Line Items]
Net proceeds from sale of property					$ 65
Carrying value of sale leaseback property							$ 14
Number of real estate properties \| building		2				2
Proceeds from real estate financing activities		$ 79
Cash proceeds from sale and leaseback transaction		14
Short-term receivable from sale and leaseback transaction		$ 65				$ 65
Debt reclassified under ASC 842 for sale-leaseback transaction							79
Sale-leaseback transaction, tax impact							$ 17

Leases Leases (Schedule of ROU assets and lease liabilities) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Mar. 31, 2020	Jan. 03, 2020
ROU assets:
Finance leases	$ 10		$ 7
Operating leases	581	$ 104	400
Non-current ROU assets	$ 591		407
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Current lease liabilities:
Finance leases	$ 6		5
Operating leases	127		132
Current lease liabilities	$ 133		$ 137
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:DebtCurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Non-current lease liabilities:
Finance leases	$ 5		$ 2
Operating leases	564		326
Non-current lease liabilities	$ 569		$ 328
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtAndCapitalLeaseObligations
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiabilityNoncurrent

Leases (Narrative) (Details) - USD ($) $ in Millions		12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Millions	Jul. 03, 2020	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018	Mar. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets, net		$ 581	$ 400		$ 104
Operating lease liability		691			$ 132
Impairment charge	$ 11	12	0	$ 7
Lease payment receivables		$ 64	$ 57

Leases Leases (Schedule of lease cost) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Leases [Abstract]
Amortization of ROU assets	$ 9	$ 8
Interest on lease liabilities	0	1
Finance lease cost	9	9
Operating lease cost	169	155
Variable lease cost	103	107
Short-term lease cost	8	7
Less: Sublease income	(11)	(6)
Total lease cost	278	272
ROU lease expense	$ 145	$ 136

Leases Leases (Schedule of other information related to leases) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Weighted-average remaining lease term (in years):
Finance leases	2 years 10 months 24 days	2 years 4 months 24 days
Operating leases	7 years 3 months 18 days	5 years 8 months 12 days
Weighted-average discount rate:
Finance leases	2.70%	4.20%
Operating leases	3.50%	4.10%
Cash paid for amounts included in measurement of lease liabilities:
Operating cash related to finance leases	$ 0	$ 1
Operating cash related to operating leases	164	163
Financing cash flows related to finance leases	9	8
Lease liabilities arising from obtaining ROU assets:
Finance lease liabilities	12	0
Operating lease liabilities	$ 314	$ 141

Leases Leases (Schedule of future minimum lease commitments) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Mar. 31, 2020
Finance lease commitments
2021	$ 6
2022	2
2023	2
2024	0
2025	0
2026 and thereafter	1
Total undiscounted cash flows	11
Less: imputed interest	0
Lease liability as of January 1, 2021	11
Operating lease commitments
2021	148
2022	126
2023	108
2024	94
2025	69
2026 and thereafter	245
Total undiscounted cash flows	790
Less: imputed interest	(99)
Lease liability as of January 1, 2021	$ 691	$ 132

Leases (Schedule of Rental Expense for Facilities and Equipment) (Details) $ in Millions	12 Months Ended
	Dec. 28, 2018 USD ($)
Leases [Abstract]
Gross rental expense	$ 163
Less: sublease income	(1)
Net rental expense	$ 162

Leases Leases (Schedule of components of lease income) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Sales-type leases:
Selling price at lease commencement	$ 61	$ 84
Cost of underlying asset	(47)	(86)
Operating income (loss)	14	(2)
Interest income on lease receivables	8	6
Sales-type lease, lease income	22	4
Operating lease
Operating lease income	31	28
Total lease income	$ 53	$ 32

Leases Leases (Schedule of undiscounted cash flows for sales-type and operating leases) (Details) $ in Millions	Jan. 01, 2021 USD ($)
Sales-type leases
2021	$ 35
2022	23
2023	10
2024	4
2025	2
Total undiscounted cash flows	74
Present value of lease payments as lease receivables	64
Difference between undiscounted cash flows and discounted cash flows	10
Operating leases
2021	27
2022	29
2023	29
2024	30
2025	0
Total undiscounted cash flows	$ 115

Fair Value Measures (Financial Instruments Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	$ 1	$ 2
Derivative liability	103	75
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1	2
Derivative liability	$ 103	$ 75

Fair Value Measurements (Narrative) (Details) - USD ($)	Jan. 01, 2021	Jan. 03, 2020
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes receivable, fair value disclosure	$ 15,000,000	$ 20,000,000
Fair value of notes payable and long-term debt	4,700,000,000	3,000,000,000.0
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of notes payable and long-term debt	5,200,000,000	$ 3,100,000,000
Designated as Hedging Instrument \| Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Hedged instrument, face amount	$ 1,100,000,000

Derivative Instruments (Interest rate swaps) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 1	$ 2
Foreign currency forward contracts \| Other current assets \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset derivatives	1	0
Fair Value Hedging \| Interest rate swaps \| Other assets \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Asset derivatives	0	2
Cash Flow Hedging \| Interest rate swaps \| Other long-term liabilities \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 103	$ 75

Derivative Instruments (Narrative) (Details) - USD ($)		1 Months Ended
Derivative Instruments (Narrative) (Details) - USD ($)	Sep. 01, 2020	Sep. 28, 2018	Jan. 01, 2021	Feb. 28, 2018
Derivative [Line Items]
Losses expected to be reclassified in the next 12 months			$ 16,000,000
Interest rate swaps \| Cash Flow Hedging
Derivative [Line Items]
Net derivative gain		$ 60,000,000
Designated as Hedging Instrument \| Interest rate swaps
Derivative [Line Items]
Hedged instrument, face amount			$ 1,100,000,000
Designated as Hedging Instrument \| Interest rate swaps \| Secured Debt
Derivative [Line Items]
Hedged instrument, face amount				$ 1,100,000,000
Stated interest rate (in percentage)				1.08%
Designated as Hedging Instrument \| Interest Rate Swap, Maturity Date August 2022 \| Secured Debt
Derivative [Line Items]
Hedged instrument, face amount				$ 300,000,000
Stated interest rate (in percentage)				1.66%
Designated as Hedging Instrument \| Interest Rate Swap, Maturity Date August 2025 \| Secured Debt
Derivative [Line Items]
Stated interest rate (in percentage)		3.00%
Designated as Hedging Instrument \| $450 million notes, due December 2020 \| Interest rate swaps \| Senior Notes
Derivative [Line Items]
Stated interest rate (in percentage)			4.45%
Designated as Hedging Instrument \| Variable Rate Loan \| Interest Rate Swap, Maturity Date August 2022 \| Secured Debt
Derivative [Line Items]
Hedged instrument, face amount				$ 250,000,000
Stated interest rate (in percentage)				2.59%
Designated as Hedging Instrument \| Variable Rate Loan \| Interest Rate Swap, Maturity Date August 2025 \| Secured Debt
Derivative [Line Items]
Hedged instrument, face amount		$ 1,500,000,000
Long term debt \| Designated as Hedging Instrument \| $450 million notes, due December 2020 \| Interest rate swaps
Derivative [Line Items]
Hedged instrument, face amount			$ 450,000,000
Settlement	$ 2,000,000
Long term debt \| Designated as Hedging Instrument \| $450 million notes, due December 2020 \| Interest rate swaps \| Senior Notes
Derivative [Line Items]
Stated interest rate (in percentage)			4.45%

Derivative Instruments (Effect of Cash Flow Hedge ) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
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	$ 179	$ 133	$ 138
Amount recognized in other comprehensive income (loss)	(61)	(55)	(7)
Interest Expense
Derivatives, Fair Value [Line Items]
Amount reclassified from accumulated other comprehensive loss to interest expense, net	$ 14	$ (7)	$ (6)

Debt (Summary of debt) (Details) - USD ($)	Jan. 01, 2021	Oct. 08, 2020	May 12, 2020	Jan. 03, 2020
Debt Instrument [Line Items]
Total long-term debt	$ 4,744,000,000			$ 2,986,000,000
Less: current portion	(100,000,000)			(61,000,000)
Total long-term debt, net of current portion	4,644,000,000			2,925,000,000
Long-term debt, gross	4,782,000,000			3,004,000,000
Debt instrument, unamortized discount and debt issuance costs	51,000,000			35,000,000
Interest rate swaps \| Fair Value Hedging \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative asset				2,000,000
Notes payable and finance leases due on various dates through fiscal 2030
Debt Instrument [Line Items]
Notes payable and finance leases due on various dates through fiscal 2030	$ 13,000,000			15,000,000
Notes payable and finance leases due on various dates through fiscal 2030 \| Minimum
Debt Instrument [Line Items]
Stated interest rate	2.15%
Notes payable and finance leases due on various dates through fiscal 2030 \| Maximum
Debt Instrument [Line Items]
Stated interest rate	5.49%
Secured Debt \| $690 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 690,000,000
Stated interest rate	3.31%
Effective interest rate	3.74%
Senior secured term loans	$ 0			581,000,000
Secured Debt \| $310 million Term Loan A, due August 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 310,000,000
Stated interest rate	3.31%
Effective interest rate	3.76%
Senior secured term loans	$ 0			242,000,000
Secured Debt \| $1,131 million Term Loan B, due August 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,131,000,000
Stated interest rate	3.56%
Effective interest rate	3.91%
Senior secured term loans	$ 0			1,075,000,000
Unsecured Debt \| $1,925 million Term Loan, due January 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,925,000,000
Stated interest rate	1.53%
Effective interest rate	1.79%
Senior unsecured notes	$ 1,391,000,000			0
Unsecured Debt \| $450 million notes, due December 2020
Debt Instrument [Line Items]
Debt instrument, face amount	$ 450,000,000
Stated interest rate	4.45%
Effective interest rate	4.53%
Senior unsecured notes	$ 0			452,000,000
Unsecured Debt \| $500 million notes, due May 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000		$ 500,000,000
Stated interest rate	2.95%		2.95%
Effective interest rate	3.17%
Senior unsecured notes	$ 497,000,000			0
Unsecured Debt \| $500 million notes, due May 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000		$ 500,000,000
Stated interest rate	3.63%		3.63%
Effective interest rate	3.76%
Senior unsecured notes	$ 496,000,000			0
Unsecured Debt \| $1,000 million notes, due February 2031
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,000,000,000	$ 1,000,000,000.0
Stated interest rate	2.30%	2.30%
Effective interest rate	2.38%
Senior unsecured notes	$ 989,000,000			0
Unsecured Debt \| $750 million notes, due May 2030
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000		$ 750,000,000
Stated interest rate	4.38%		4.38%
Effective interest rate	4.50%
Senior unsecured notes	$ 737,000,000			0
Unsecured Debt \| $250 million notes, due July 2032
Debt Instrument [Line Items]
Debt instrument, face amount	$ 250,000,000
Stated interest rate	7.13%
Effective interest rate	7.43%
Senior unsecured notes	$ 247,000,000			247,000,000
Unsecured Debt \| $300 million notes, due July 2033
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300,000,000
Stated interest rate	5.50%
Effective interest rate	5.88%
Senior unsecured notes	$ 158,000,000			158,000,000
Unsecured Debt \| $300 million notes, due December 2040
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300,000,000
Stated interest rate	5.95%
Effective interest rate	6.03%
Senior unsecured notes	$ 216,000,000			$ 216,000,000

Debt (Narrative) (Details)						1 Months Ended	2 Months Ended	12 Months Ended
Debt (Narrative) (Details)	Oct. 08, 2020 USD ($)	Jun. 18, 2020 USD ($)	May 12, 2020 USD ($)	Jan. 31, 2020 USD ($)	Jan. 17, 2020 USD ($) extension increase	Apr. 30, 2018 USD ($)	Jun. 30, 2020 USD ($)	Jan. 01, 2021 USD ($)	Jan. 03, 2020 USD ($)	Dec. 28, 2018 USD ($)	May 04, 2020 USD ($)	Feb. 12, 2020 USD ($)
Debt Instrument [Line Items]
Payments of long-term debt								$ 731,000,000	$ 80,000,000	$ 59,000,000
Debt issuance costs, gross								68,000,000
Write off of debt discount and issuance costs								36,000,000
Amortization of debt issuance costs and discounts								16,000,000	10,000,000	10,000,000
Bridge Loan \| Dynetics
Debt Instrument [Line Items]
Note payable, face amount				$ 1,250,000,000
Term of debt instrument (in years)				364 days
Bridge Loan \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, decrease in basis points				0.25%
Duration fee (in percentage)				0.50%
Bridge Loan \| LIBOR \| Minimum
Debt Instrument [Line Items]
Variable interest rate (in percentage)				1.38%
Bridge Loan \| LIBOR \| Maximum
Debt Instrument [Line Items]
Variable interest rate (in percentage)				1.63%
Unsecured Debt
Debt Instrument [Line Items]
Resale agreement of notes, interest rate percentage	0.25%		0.25%
Repayment of debt principal								72,000,000
Secured Debt
Debt Instrument [Line Items]
Repayment of debt principal									69,000,000	$ 46,000,000
Repayments of term loan						$ 10,000,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit								0	$ 0
$1,000 million notes, due February 2031 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount	$ 1,000,000,000.0							$ 1,000,000,000
Stated interest rate	2.30%							2.30%
Senior Notes \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount			$ 1,750,000,000
Term Loan \| LIBOR
Debt Instrument [Line Items]
Variable interest rate (in percentage)		2.00%
Term Loan \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount		$ 300,000,000
Term of debt instrument (in years)	364 days	364 days
$500 million notes, due May 2023 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount			$ 500,000,000					$ 500,000,000
Stated interest rate			2.95%					2.95%
$500 million notes, due May 2025 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount			$ 500,000,000					$ 500,000,000
Stated interest rate			3.63%					3.63%
$750 million notes, due May 2030 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount			$ 750,000,000					$ 750,000,000
Stated interest rate			4.38%					4.38%
Delayed Draw Term Loan Facility \| Unsecured Debt
Debt Instrument [Line Items]
Long-term debt											$ 1,000,000,000.0	$ 1,000,000,000.0
Repayments of Unsecured Debt			$ 500,000,000				$ 200,000,000
The Credit Agreement
Debt Instrument [Line Items]
Term of debt instrument (in years)					5 years
Number of additional extensions \| extension					2
Debt instrument, extension term (in years)					1 year
Covenant, adjusted consolidated total debt to consolidated EBITDA ratio					3.75
Number of potential leverage ratio increases \| increase					2
Covenant, leverage ratio, maximum, potential increase following material acquisition					4.50
Covenant, consolidated EBITDA to interest expense ratio					3.50
The Credit Agreement \| LIBOR
Debt Instrument [Line Items]
Variable interest rate (in percentage)					1.38%
The Credit Agreement \| LIBOR \| Minimum
Debt Instrument [Line Items]
Variable interest rate (in percentage)					1.13%
The Credit Agreement \| LIBOR \| Maximum
Debt Instrument [Line Items]
Variable interest rate (in percentage)					1.75%
The Credit Agreement \| Unsecured Debt \| Term Loan
Debt Instrument [Line Items]
Note payable, face amount					$ 1,900,000,000
The Credit Agreement \| Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 750,000,000
$450 million notes, due December 2020 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount								$ 450,000,000
Stated interest rate								4.45%
$300 million notes, due December 2040 \| Unsecured Debt
Debt Instrument [Line Items]
Note payable, face amount								$ 300,000,000
Stated interest rate								5.95%

Debt (Schedule of Maturities of Notes Payable and Long-Term Debt) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Debt Disclosure [Abstract]
2021	$ 104
2022	99
2023	670
2024	193
2025	1,349
2026 and thereafter	2,380
Total principal payments	4,795
Less: unamortized debt discount and issuance costs	(51)	$ (35)
Total long-term debt	$ 4,744	$ 2,986

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 3,417	$ 3,311	$ 3,383
Ending balance	3,871	3,417	3,311
Cumulative adjustments related to ASU adoptions
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1)	48	1
Ending balance		(1)	48
Cumulative Effect, Period of Adoption, Adjusted Balance
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	3,416	3,359	3,384
Ending balance		3,416	3,359
Total accumulated other comprehensive loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(70)	(30)	33
Other comprehensive income (loss)	6	(51)	(73)
Taxes	4	18	7
Reclassification from accumulated other comprehensive loss	14	(7)	(6)
Ending balance	(46)	(70)	(30)
Total accumulated other comprehensive loss \| Cumulative adjustments related to ASU adoptions
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			9
Total accumulated other comprehensive loss \| Cumulative Effect, Period of Adoption, Adjusted Balance
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(70)	(30)	42
Ending balance		(70)	(30)
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(33)	(41)	17
Other comprehensive income (loss)	70	5	(65)
Taxes	(7)	3	4
Ending balance	30	(33)	(41)
Foreign currency translation adjustments \| Cumulative adjustments related to ASU adoptions
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			3
Foreign currency translation adjustments \| Cumulative Effect, Period of Adoption, Adjusted Balance
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			20
Unrecognized gain (loss) on derivative instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(33)	14	14
Other comprehensive income (loss)	(61)	(55)	(7)
Taxes	10	15	3
Reclassification from accumulated other comprehensive loss	14	(7)	(6)
Ending balance	(70)	(33)	14
Unrecognized gain (loss) on derivative instruments \| Cumulative adjustments related to ASU adoptions
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			10
Unrecognized gain (loss) on derivative instruments \| Cumulative Effect, Period of Adoption, Adjusted Balance
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			24
Pension adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4)	(3)	2
Other comprehensive income (loss)	(3)	(1)	(1)
Taxes	1
Ending balance	$ (6)	$ (4)	(3)
Pension adjustments \| Cumulative adjustments related to ASU adoptions
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(4)
Pension adjustments \| Cumulative Effect, Period of Adoption, Adjusted Balance
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			$ (2)

Composition of Certain Financial Statement Captions (Schedule of Certain Financial Statement Captions) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020
Other current assets:
Restricted cash	$ 163	$ 49
Transition costs and project assets	104	98
Pre-contract costs	7	6
Other	128	185
Other current assets	402	338
Other assets:
Transition costs and project assets	187	207
Equity method investments	15	19
Other	256	200
Other assets	458	426
Accounts payable and accrued liabilities:
Accrued liabilities	939	822
Accounts payable	731	592
Deferred revenue	481	400
Other	24	23
Total accounts payable and accrued liabilities	2,175	1,837
Accrued payroll and employee benefits:
Accrued vacation	329	232
Salaries, bonuses and amounts withheld from employees’ compensation	303	203
Total accrued payroll and employee benefits	632	435
Amortization of transition costs and project assets	575	417
Dividends received from equity method investments	$ 23	$ 25

Composition of Certain Financial Statement Captions (Condensed Income Statement) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Interest expense, net:
Interest expense	$ (182)	$ (147)	$ (145)
Interest income	3	14	7
Interest expense, net:	(179)	(133)	(138)
Other (expense) income, net
Loss on debt extinguishment	(36)	0	(1)
Gain on sale of businesses	0	88	0
(Loss) gain on foreign currencies	(4)	(1)	2
Other income (expense), net	2	0	(2)
Other (expense) income, net	$ (38)	$ 87	$ (1)

Earnings Per Share ("EPS") (Reconciliation of Weighted Average Number of Shares Outstanding) (Details) - shares shares in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding (in shares)	142	143	151
Dilutive common share equivalents—stock options and other stock awards (in shares)	2	2	2
Diluted weighted average number of shares outstanding (in shares)	144	145	153

Earnings Per Share ("EPS") (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended				3 Months Ended			12 Months Ended
	Mar. 29, 2019	Jan. 30, 2019	Dec. 28, 2018	Oct. 30, 2018	Sep. 27, 2019	Mar. 29, 2019	Dec. 28, 2018	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Equity, Class of Treasury Stock [Line Items]
Antidilutive securities (in shares)										1.0
Payments for repurchase of common stock								$ 67	$ 25	$ 167
Accelerated Share Repurchase
Equity, Class of Treasury Stock [Line Items]
Payments for repurchase of common stock					$ 200	$ 200	$ 250
Number of shares repurchased and retired (in shares)	0.6	2.6	0.7	3.3	2.4

Stock-Based Compensation (Additional Information) (Details) - USD ($) shares in Millions, $ in Millions	6 Months Ended		12 Months Ended
	Dec. 28, 2018	Jun. 29, 2018	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future issuance (in shares)			3.8
Purchase price of common stock, percent	10.00%	5.00%
Amount received for issuance of stock			$ 32	$ 25	$ 11
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Maximum \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent			15.00%
2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future issuance (in shares)			4.0
2006 and 2017 Incentive Plans \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 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 \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			25.00%
2006 and 2017 Incentive Plans \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			25.00%
2006 and 2017 Incentive Plans \| Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			25.00%
2006 and 2017 Incentive Plans \| Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage			25.00%

Stock-Based Compensation (Schedule of Stock-Based Compensation and Related Tax Benefits Recognized) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Share-based Payment Arrangement [Abstract]
Total stock-based compensation expense	$ 62	$ 52	$ 44
Tax benefits recognized from stock-based compensation	$ 15	$ 13	$ 11

Stock-Based Compensation (Stock options) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, net of estimated forfeitures	$ 5
Tax benefits from stock options exercised	$ 7	$ 5	$ 6
2006 and 2017 Incentive Plans \| Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 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 Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 6 months	4 years 4 months 24 days	4 years 8 months 12 days
Expected weighted-average period of recognition, years	2 years 1 month 6 days
Stock Options \| 2006 and 2017 Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	7 years
Vesting period (in years)	4 years
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	10 years

Stock-Based Compensation (Schedule of Weighted Average Grant-Date Fair Value and Assumptions Used) (Details) - Stock Options - $ / shares	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (usd per share)	$ 19.64	$ 11.89	$ 13.85
Expected term (in years)	4 years 6 months	4 years 4 months 24 days	4 years 8 months 12 days
Expected volatility	25.00%	24.30%	26.60%
Risk-free interest rate	0.60%	2.40%	2.60%
Dividend yield	1.30%	2.20%	2.00%

Stock-Based Compensation (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018	Dec. 29, 2017
Shares of stock under stock options
Outstanding, beginning balance (in shares)	2.4	2.4	2.8
Options granted (in shares)	0.3	0.5	0.4
Options forfeited or expired (in shares)	(0.1)	0.0	(0.2)
Options exercised (in shares)	(0.4)	(0.5)	(0.6)
Outstanding, ending balance (in shares)	2.2	2.4	2.4	2.8
Exercisable at year end (in shares)	1.4
Vested and expected to vest in the future as of year end (in shares)	2.2
Weighted average exercise price
Outstanding, beginning balance (in usd per share)	$ 46.04	$ 39.41	$ 34.38
Options granted (in usd per share)	106.73	63.61	63.75
Options forfeited or expired (in usd per share)	66.84	58.08	49.65
Options exercised (in usd per share)	35.94	30.86	30.40
Outstanding, ending balance (in usd per share)	56.01	$ 46.04	$ 39.41	$ 34.38
Exercisable at year end (in usd per share)	42.85
Vested and expected to vest in the future as of year end (in usd per share)	$ 55.67
Weighted average remaining contractual term
Outstanding, beginning balance (in years)	3 years 6 months	3 years 9 months 18 days	3 years 9 months 18 days	3 years 10 months 24 days
Exercisable at year end (in years)	2 years 6 months
Vested and expected to vest in the future as of year end (in years)	3 years 6 months
Aggregate intrinsic value
Outstanding, beginning balance	$ 128	$ 36	$ 86
Options exercised	29	21	24
Outstanding, ending balance	108	$ 128	$ 36	$ 86
Exercisable at year end	85
Vested and expected to vest in the future as of year end	$ 108

Stock-Based Compensation (Schedule of RSU and Awards Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Restricted Stock Units (RSUs)
Shares of stock under stock awards
Unvested beginning balance (in shares)	1.4	2.0	2.0
Awards granted (in shares)	0.5	0.6	0.6
Awards forfeited (in shares)	(0.1)	(0.1)	(0.2)
Awards vested (in shares)	(0.5)	(1.1)	(0.4)
Unvested ending balance (in shares)	1.3	1.4	2.0
Weighted average grant- date fair value
Unvested beginning balance (in dollars per share)	$ 60.91	$ 50.85	$ 44.96
Awards granted (in dollars per share)	106.38	64.70	64.05
Awards forfeited (in dollars per share)	79.61	60.20	42.67
Awards vested (in dollars per share)	56.36	44.10	44.60
Unvested ending balance (in dollars per share)	$ 79.05	$ 60.91	$ 50.85
Unrecognized compensation cost, net of estimated forfeitures	$ 43
Expected weighted-average period of recognition, years	2 years
Fair value of vesting awards that vested	$ 58	$ 66	$ 22
Dividend equivalents with respect to restricted stock units		$ 1	$ 1
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Shares of stock under stock awards
Unvested beginning balance (in shares)	0.6	0.5	0.5
Awards granted (in shares)	0.2	0.2	0.3
Awards forfeited (in shares)	(0.1)	0.0	(0.1)
Awards vested (in shares)	(0.2)	(0.1)	(0.2)
Unvested ending balance (in shares)	0.5	0.6	0.5
Weighted average grant- date fair value
Unvested beginning balance (in dollars per share)	$ 63.66	$ 57.36	$ 50.34
Awards granted (in dollars per share)	103.34	66.92	61.43
Awards forfeited (in dollars per share)	72.96	66.72	61.81
Awards vested (in dollars per share)	58.61	45.83	44.04
Unvested ending balance (in dollars per share)	$ 80.20	$ 63.66	$ 57.36
Unrecognized compensation cost, net of estimated forfeitures	$ 15
Expected weighted-average period of recognition, years	1 year 8 months 12 days
Fair value of vesting awards that vested	$ 25	$ 9	$ 13

Stock-Based Compensation (Schedule of Performance-Based Stock Award Activity) (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
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%
Cycle performance period	3 years
Weighted average grant date fair value of the awards granted, excluding dividend equivalents (usd per share)	$ 106.80	$ 62.66	$ 63.76
Weighted average grant date fair value, market conditions (usd per share)	$ 127.92	$ 72.53	$ 71.50
Expected volatility	23.99%	22.02%	25.37%
Risk-free interest rate	0.50%	2.39%	2.35%
Weighted average grant-date fair value, Awards granted (in dollars per share)	$ 105.12	$ 62.66	$ 65.00
Unrecognized compensation cost, net of estimated forfeitures	$ 15
Expected weighted-average period of recognition, years	1 year 8 months 12 days
Fair value of vesting awards that vested	$ 25	$ 9	$ 13

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Income Tax Contingency [Line Items]
Valuation allowance	$ 16	$ 20
Valuation allowance, deferred tax asset, increase (decrease)	(4)
Penalties and interest accrued			$ 1
Liabilities for uncertain tax positions	6	5	7
Liabilities for uncertain tax positions, long-term	4	$ 1	$ 3
Amount of reasonably possible resolution of reviews	4
State
Income Tax Contingency [Line Items]
Net operating loss carryforwards	77
Tax credit carryforwards	5
Oerating loss carryforwards, expected to utilize	37
Tax credit carryforwards, expected to utilize	4
Foreign
Income Tax Contingency [Line Items]
Net operating loss carryforwards	46
Oerating loss carryforwards, expected to utilize	$ 4

Income Taxes (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Current:
Federal	$ 90	$ 122	$ 46
State	37	31	23
Foreign	28	25	8
Deferred:
Federal	13	26	(41)
State	(11)	(3)	(10)
Foreign	(5)	(5)	2
Total	$ 152	$ 196	$ 28

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes (Schedule of Reconciliation of Provision for Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Income Tax Disclosure [Abstract]
Amount computed at the statutory federal income tax rate	$ 164	$ 182	$ 128
State income taxes, net of federal tax benefit	20	22	10
Research and development credits	(26)	(11)	(9)
Excess tax benefits from stock-based compensation	(15)	(11)	(9)
Impact of foreign operations	11	2	0
Change in valuation allowance for deferred tax assets	(5)	6	(49)
Dividends paid to employee stock ownership plan	(2)	(2)	(2)
Change in accruals for uncertain tax positions	1	4	1
Stock basis in subsidiary held for sale	0	5	(16)
Taxable conversion of a subsidiary	0	0	(17)
Change in statutory federal tax rate	0	0	(10)
Other	4	(1)	1
Total	$ 152	$ 196	$ 28
Effective income tax rate	19.50%	22.60%	4.60%

Income Taxes (Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020
Income Tax Disclosure [Abstract]
Operating lease liabilities	$ 176	$ 115
Accrued vacation and bonuses	87	54
Reserves	62	46
Deferred compensation	31	26
Credits and net operating losses carryovers	22	25
Vesting stock awards	22	18
Accumulated other comprehensive loss	16	12
Investments	1	2
Deferred rent and tenant allowances	0	4
Other	7	9
Total deferred tax assets	424	311
Valuation allowance	(16)	(20)
Deferred tax assets, net of valuation allowance	408	291
Purchased intangible assets	(409)	(339)
Operating lease right-of-use assets	(148)	(103)
Property, plant and equipment	(63)	(2)
Employee benefit contributions	(7)	(6)
Deferred revenue	(1)	(17)
Other	(5)	(8)
Total deferred tax liabilities	(633)	(475)
Net deferred tax liabilities	$ (225)	$ (184)

Income Taxes (Schedule of Balance Sheet) (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018	Dec. 29, 2017
Accounts payable and accrued liabilities:
Deferred tax liabilities	$ 234	$ 184
Other long-term liabilities:
Unrecognized tax benefits	6	5	$ 6	$ 10
Other current assets
Other current assets:
Prepaid income taxes and tax refunds receivable	12	24
Other assets
Other assets:
Deferred tax assets	9	0
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities:
Income taxes payable	21	19
Other long-term liabilities
Other long-term liabilities:
Unrecognized tax benefits	$ 4	$ 1

Income Taxes (Schedule of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at beginning of year	$ 5	$ 6	$ 10
Additions for tax positions related to current year	0	0	3
Additions for tax positions related to prior years	1	11	0
Reductions for tax positions related to prior years	0	(1)	(5)
Settlements with taxing authorities	0	(11)	(2)
Unrecognized tax benefits at end of year	6	5	6
Unrecognized tax benefits that, if recognized, would affect the effective income tax rate	$ 5	$ 4	$ 6

Retirement Plans (Details) $ in Millions	12 Months Ended
Retirement Plans (Details) $ in Millions	Jan. 01, 2021 USD ($) plan	Jan. 03, 2020 USD ($)	Dec. 28, 2018 USD ($)
Retirement Benefits [Abstract]
Compensation expense	$ 120	$ 105	$ 94
Number of deferred compensation plans \| plan	3
Projected benefit obligation	$ 138	121
Fair value of plan assets	157	139
Funded status of plan - Overfunded	$ 19	$ 18

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Supplementary Cash Flow Information and Restricted Cash (Supplementary Cash Flow Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018	Dec. 29, 2017
Supplementary cash flow information:
Cash paid for interest	$ 161	$ 172	$ 133
Cash paid for income taxes, net of refunds	140	142	70
Non-cash investing activity:
Fixed asset additions	18	27	0
Non-cash financing activity:
Real estate financing transaction	0	0	65
Notes payable and finance lease obligations	12	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	524	668
Restricted cash	163	49
Total cash, cash equivalents and restricted cash	$ 687	$ 717	$ 369	$ 422

Supplementary Cash Flow Information and Restricted Cash (Narrative) (Details) $ in Millions	12 Months Ended
	Jan. 01, 2021 USD ($)
Supplemental Cash Flow Information [Abstract]
Receivable collectible period	30 days
Accounts receivable sold	$ 1,866
Proceeds from sale of receivables	$ 1,864

Business Segments (Additional Information) (Details)	12 Months Ended
Business Segments (Additional Information) (Details)	Jan. 01, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	3

Business Segments (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
Segment Reporting Information [Line Items]
Revenues	$ 12,297	$ 11,094	$ 10,194
Operating income (loss)	998	912	749
Amortization of intangible assets	198	173	201
Defense Solutions
Segment Reporting Information [Line Items]
Revenues	7,341	6,300	5,778
Amortization of intangible assets	92	64	74
Civil
Segment Reporting Information [Line Items]
Revenues	2,994	2,796	2,599
Amortization of intangible assets	66	63	81
Health
Segment Reporting Information [Line Items]
Revenues	1,962	1,998	1,817
Amortization of intangible assets	40	46	46
Operating Segments \| Defense Solutions
Segment Reporting Information [Line Items]
Operating income (loss)	506	471	402
Operating Segments \| Civil
Segment Reporting Information [Line Items]
Operating income (loss)	280	231	235
Operating Segments \| Health
Segment Reporting Information [Line Items]
Operating income (loss)	235	242	230
Corporate
Segment Reporting Information [Line Items]
Operating income (loss)	$ (23)	$ (32)	$ (118)

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Business Segments (Schedule of Total Revenue Percentages Contributable to Specific Government Agencies) (Details) - Government Contracts Concentration Risk - Total Revenues	12 Months Ended
	Jan. 01, 2021	Jan. 03, 2020	Dec. 28, 2018
US Government
Segment Reporting Information [Line Items]
Percentage of sales	87.00%	87.00%	85.00%
DoD and U.S. Intelligence Community
Segment Reporting Information [Line Items]
Percentage of sales	49.00%	48.00%	48.00%

Contingencies (Details)								1 Months Ended	12 Months Ended
Contingencies (Details)	Oct. 30, 2020 USD ($)	May 22, 2020 USD ($)	Mar. 13, 2020 USD ($)	Nov. 22, 2019 patent	Aug. 30, 2018 USD ($)	Apr. 10, 2018 USD ($)	Sep. 29, 2017 USD ($)	Jan. 31, 2021 USD ($)	Jan. 01, 2021 USD ($)	Jul. 23, 2020	Dec. 10, 2019 USD ($)	Nov. 10, 2015 USD ($)
Leidos
Loss Contingencies [Line Items]
Proceeds from legal settlements		$ 85,000,000
Gain on legal settlement									$ 81,000,000
Litigation settlement, percentage of total (percentage)									25.00%
Virnet X Inc
Loss Contingencies [Line Items]
Amount awarded to other party, pre interest							$ 343,000,000
Awarded to the other party, interest and legal fees					$ 93,000,000		96,000,000
Awarded from other party	$ 503,000,000				595,000,000	$ 502,000,000	$ 439,000,000
Proceeds from legal settlements			$ 454,000,000
Royalty rate awarded (per device)	$ 0.84				$ 1.20
Number of infringed patents \| patent				2
Number of infringed other patents \| patent				2
Additional costs and interest								$ 75,000,000
Customer
Loss Contingencies [Line Items]
Royalty rate, percentage										4.00%
MSA Venture
Loss Contingencies [Line Items]
Estimate of loss									$ 64,000,000		$ 29,000,000	$ 64,000,000
Estimate of possible loss, amount deferred									32,000,000
Loss contingency accrual									$ 42,000,000
MSA Venture \| Lockheed Martin
Loss Contingencies [Line Items]
Percentage of damages covered, between $38 million and $64 million settlement amount (percentage)									100.00%
Percentage of damages covered, in excess of $64 million settlement amount (percentage)									50.00%
MSA Venture \| Leidos
Loss Contingencies [Line Items]
Estimate of loss									$ 38,000,000

Commitments (Narrative) (Details) $ in Millions	Jan. 01, 2021 USD ($)
Standby Letters of Credit
Other Commitments And Contingencies [Line Items]
Amount outstanding	$ 91
Performance Guarantee
Other Commitments And Contingencies [Line Items]
Surety bonds notional amount	$ 129

Commitments (Future Expirations Maturity Table) (Details) - Standby Letters of Credit and Surety Bonds $ in Millions	Jan. 01, 2021 USD ($)
Guaranteed Obligation, Type [Line Items]
2021	$ 112
2022	96
2023	2
2024	1
2025	2
2026 and thereafter	7
Guaranteed obligation	$ 220

Subsequent Events (Details) - USD ($) $ in Millions		2 Months Ended	4 Months Ended	12 Months Ended
Subsequent Events (Details) - USD ($) $ in Millions	Jan. 14, 2021	Feb. 23, 2021	Jul. 02, 2021	Jan. 01, 2021
Subsequent Event [Line Items]
Accounts receivable sold				$ 1,866
Subsequent Event
Subsequent Event [Line Items]
Accounts receivable sold		$ 204
Subsequent Event \| 1901 Group
Subsequent Event [Line Items]
Preliminary purchase consideration, net of cash acquired	$ 214
Subsequent Event \| Gibbs & Cox, Inc. \| Forecast
Subsequent Event [Line Items]
Preliminary purchase consideration, net of cash acquired			$ 380