2019 Q1 Form 10-Q Financial Statement
#000133692019000015 Filed on April 30, 2019
Income Statement
Concept | 2019 Q1 | 2018 Q1 |
---|---|---|
Revenue | $2.577B | $2.443B |
YoY Change | 5.49% | -5.31% |
Cost Of Revenue | $2.221B | $2.086B |
YoY Change | 6.47% | -6.58% |
Gross Profit | $356.0M | $357.0M |
YoY Change | -0.28% | 2.88% |
Gross Profit Margin | 13.81% | 14.61% |
Selling, General & Admin | $166.0M | $178.0M |
YoY Change | -6.74% | -1.66% |
% of Gross Profit | 46.63% | 49.86% |
Research & Development | ||
YoY Change | ||
% of Gross Profit | ||
Depreciation & Amortization | $58.00M | $63.00M |
YoY Change | -7.94% | -23.17% |
% of Gross Profit | 16.29% | 17.65% |
Operating Expenses | $166.0M | $178.0M |
YoY Change | -6.74% | -1.66% |
Operating Profit | $192.0M | $159.0M |
YoY Change | 20.75% | 12.77% |
Interest Expense | -$34.00M | -$30.00M |
YoY Change | 13.33% | -178.95% |
% of Operating Profit | -17.71% | -18.87% |
Other Income/Expense, Net | $92.00M | $0.00 |
YoY Change | -100.0% | |
Pretax Income | $246.0M | $125.0M |
YoY Change | 96.8% | 15.74% |
Income Tax | $57.00M | $23.00M |
% Of Pretax Income | 23.17% | 18.4% |
Net Earnings | $189.0M | $102.0M |
YoY Change | 85.29% | 41.67% |
Net Earnings / Revenue | 7.33% | 4.18% |
Basic Earnings Per Share | $1.30 | $0.67 |
Diluted Earnings Per Share | $1.29 | $0.66 |
COMMON SHARES | ||
Basic Shares Outstanding | 145.0M shares | 152.0M shares |
Diluted Shares Outstanding | 147.0M shares | 154.0M shares |
Balance Sheet
Concept | 2019 Q1 | 2018 Q1 |
---|---|---|
SHORT-TERM ASSETS | ||
Cash & Short-Term Investments | $536.0M | $215.0M |
YoY Change | 149.3% | 4.37% |
Cash & Equivalents | $536.0M | $215.0M |
Short-Term Investments | ||
Other Short-Term Assets | $430.0M | |
YoY Change | ||
Inventory | $506.0M | |
Prepaid Expenses | ||
Receivables | $1.894B | $1.914B |
Other Receivables | $0.00 | $0.00 |
Total Short-Term Assets | $2.860B | $2.635B |
YoY Change | 8.54% | 10.02% |
LONG-TERM ASSETS | ||
Property, Plant & Equipment | $220.0M | $227.0M |
YoY Change | -3.08% | -4.62% |
Goodwill | $4.871B | $4.976B |
YoY Change | -2.11% | 7.73% |
Intangibles | $613.0M | $806.0M |
YoY Change | -23.95% | -46.97% |
Long-Term Investments | ||
YoY Change | ||
Other Assets | $390.0M | $269.0M |
YoY Change | 44.98% | -23.8% |
Total Long-Term Assets | $6.500B | $6.278B |
YoY Change | 3.54% | -6.92% |
TOTAL ASSETS | ||
Total Short-Term Assets | $2.860B | $2.635B |
Total Long-Term Assets | $6.500B | $6.278B |
Total Assets | $9.360B | $8.913B |
YoY Change | 5.02% | -2.48% |
SHORT-TERM LIABILITIES | ||
YoY Change | ||
Accounts Payable | $1.258B | $1.622B |
YoY Change | -22.44% | 173.99% |
Accrued Expenses | $514.0M | $379.0M |
YoY Change | 35.62% | -54.72% |
Deferred Revenue | $484.0M | $406.0M |
YoY Change | 19.21% | |
Short-Term Debt | $0.00 | $0.00 |
YoY Change | ||
Long-Term Debt Due | $66.00M | $81.00M |
YoY Change | -18.52% | -3.57% |
Total Short-Term Liabilities | $2.322B | $2.103B |
YoY Change | 10.41% | 6.05% |
LONG-TERM LIABILITIES | ||
Long-Term Debt | $2.966B | $3.007B |
YoY Change | -1.36% | -5.68% |
Other Long-Term Liabilities | $276.0M | $148.0M |
YoY Change | 86.49% | -31.8% |
Total Long-Term Liabilities | $276.0M | $148.0M |
YoY Change | 86.49% | -31.8% |
TOTAL LIABILITIES | ||
Total Short-Term Liabilities | $2.322B | $2.103B |
Total Long-Term Liabilities | $276.0M | $148.0M |
Total Liabilities | $2.598B | $2.251B |
YoY Change | 15.42% | 2.32% |
SHAREHOLDERS EQUITY | ||
Retained Earnings | $562.0M | $37.00M |
YoY Change | 1418.92% | -124.03% |
Common Stock | $0.00 | $0.00 |
YoY Change | ||
Preferred Stock | ||
YoY Change | ||
Treasury Stock (at cost) | ||
YoY Change | ||
Treasury Stock Shares | ||
Shareholders Equity | $3.294B | $3.431B |
YoY Change | ||
Total Liabilities & Shareholders Equity | $9.360B | $8.913B |
YoY Change | 5.02% | -2.48% |
Cashflow Statement
Concept | 2019 Q1 | 2018 Q1 |
---|---|---|
OPERATING ACTIVITIES | ||
Net Income | $189.0M | $102.0M |
YoY Change | 85.29% | 41.67% |
Depreciation, Depletion And Amortization | $58.00M | $63.00M |
YoY Change | -7.94% | -23.17% |
Cash From Operating Activities | $288.0M | $22.00M |
YoY Change | 1209.09% | -130.99% |
INVESTING ACTIVITIES | ||
Capital Expenditures | -$30.00M | $15.00M |
YoY Change | -300.0% | 114.29% |
Acquisitions | $0.00 | $81.00M |
YoY Change | -100.0% | |
Other Investing Activities | $0.00 | $0.00 |
YoY Change | -100.0% | |
Cash From Investing Activities | $237.0M | -$96.00M |
YoY Change | -346.88% | 1820.0% |
FINANCING ACTIVITIES | ||
Cash Dividend Paid | ||
YoY Change | ||
Common Stock Issuance & Retirement, Net | $10.00M | |
YoY Change | ||
Debt Paid & Issued, Net | ||
YoY Change | ||
Cash From Financing Activities | -$297.0M | -$91.00M |
YoY Change | 226.37% | 16.67% |
NET CHANGE | ||
Cash From Operating Activities | $288.0M | $22.00M |
Cash From Investing Activities | $237.0M | -$96.00M |
Cash From Financing Activities | -$297.0M | -$91.00M |
Net Change In Cash | $228.0M | -$165.0M |
YoY Change | -238.18% | 7.14% |
FREE CASH FLOW | ||
Cash From Operating Activities | $288.0M | $22.00M |
Capital Expenditures | -$30.00M | $15.00M |
Free Cash Flow | $318.0M | $7.000M |
YoY Change | 4442.86% | -108.97% |
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5000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Liability Payments Remainder Of Fiscal Year
FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear
|
6000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
|
1000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Principal Payments
FinanceLeasePrincipalPayments
|
2000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
|
13000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
|
2000000 | USD |
CY2019Q1 | us-gaap |
Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
|
0.0416 | |
CY2019Q1 | us-gaap |
Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
|
P2Y5M | |
CY2018Q4 | us-gaap |
Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
|
452000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
|
495000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
|
80000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
|
128000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
|
74000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
|
93000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
|
107000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
|
127000000 | USD |
CY2018Q4 | us-gaap |
Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
|
1100000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
|
1104000000 | USD |
CY2018Q4 | us-gaap |
Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
|
648000000 | USD |
CY2019Q1 | us-gaap |
Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
|
609000000 | USD |
CY2018Q1 | us-gaap |
Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
|
0 | USD |
CY2019Q1 | us-gaap |
Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
|
88000000 | USD |
CY2017Q4 | us-gaap |
Goodwill
Goodwill
|
4974000000 | USD |
CY2018Q4 | us-gaap |
Goodwill
Goodwill
|
4860000000 | USD |
CY2019Q1 | us-gaap |
Goodwill
Goodwill
|
4871000000 | USD |
CY2018 | us-gaap |
Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
|
-51000000 | USD |
CY2019Q1 | us-gaap |
Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
|
8000000 | USD |
CY2018Q1 | us-gaap |
Goodwill Impairment Loss
GoodwillImpairmentLoss
|
0 | USD |
CY2018 | us-gaap |
Goodwill Other Increase Decrease
GoodwillOtherIncreaseDecrease
|
-6000000 | USD |
CY2019Q1 | us-gaap |
Goodwill Other Increase Decrease
GoodwillOtherIncreaseDecrease
|
3000000 | USD |
CY2018 | us-gaap |
Goodwill Transfers
GoodwillTransfers
|
-57000000 | USD |
CY2018Q4 | us-gaap |
Hedged Liability Fair Value Hedge
HedgedLiabilityFairValueHedge
|
447000000 | USD |
CY2019Q1 | us-gaap |
Hedged Liability Fair Value Hedge
HedgedLiabilityFairValueHedge
|
450000000 | USD |
CY2018Q4 | us-gaap |
Hedged Liability Fair Value Hedge Cumulative Increase Decrease
HedgedLiabilityFairValueHedgeCumulativeIncreaseDecrease
|
-3000000 | USD |
CY2019Q1 | us-gaap |
Hedged Liability Fair Value Hedge Cumulative Increase Decrease
HedgedLiabilityFairValueHedgeCumulativeIncreaseDecrease
|
0 | USD |
CY2018Q1 | us-gaap |
Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
|
125000000 | USD |
CY2019Q1 | us-gaap |
Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
|
246000000 | USD |
CY2018Q1 | us-gaap |
Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
|
4000000 | USD |
CY2019Q1 | us-gaap |
Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
|
4000000 | USD |
CY2018Q1 | us-gaap |
Income Tax Expense Benefit
IncomeTaxExpenseBenefit
|
23000000 | USD |
CY2019Q1 | us-gaap |
Income Tax Expense Benefit
IncomeTaxExpenseBenefit
|
57000000 | USD |
CY2018Q1 | us-gaap |
Income Taxes Paid Net
IncomeTaxesPaidNet
|
2000000 | USD |
CY2019Q1 | us-gaap |
Income Taxes Paid Net
IncomeTaxesPaidNet
|
3000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
|
60000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
|
240000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
-107000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
-108000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Income Taxes
IncreaseDecreaseInIncomeTaxes
|
28000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Income Taxes
IncreaseDecreaseInIncomeTaxes
|
54000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
|
63000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
|
55000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
|
2000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
|
-4000000 | USD |
CY2018Q1 | us-gaap |
Increase Decrease In Receivables
IncreaseDecreaseInReceivables
|
84000000 | USD |
CY2019Q1 | us-gaap |
Increase Decrease In Receivables
IncreaseDecreaseInReceivables
|
21000000 | USD |
CY2018Q1 | us-gaap |
Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
|
2000000 | shares |
CY2019Q1 | us-gaap |
Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
|
2000000 | shares |
CY2018Q4 | us-gaap |
Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
|
1104000000 | USD |
CY2019Q1 | us-gaap |
Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
|
1108000000 | USD |
CY2018Q4 | us-gaap |
Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
|
652000000 | USD |
CY2019Q1 | us-gaap |
Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
|
613000000 | USD |
CY2018Q1 | us-gaap |
Interest Income Expense Net
InterestIncomeExpenseNet
|
-34000000 | USD |
CY2019Q1 | us-gaap |
Interest Income Expense Net
InterestIncomeExpenseNet
|
-38000000 | USD |
CY2018Q1 | us-gaap |
Interest Paid Net
InterestPaidNet
|
32000000 | USD |
CY2019Q1 | us-gaap |
Interest Paid Net
InterestPaidNet
|
43000000 | USD |
CY2019Q1 | us-gaap |
Interest Rate Cash Flow Hedge Gain Loss To Be Reclassified During Next12 Months Net
InterestRateCashFlowHedgeGainLossToBeReclassifiedDuringNext12MonthsNet
|
11000000 | USD |
CY2018Q1 | us-gaap |
Lease And Rental Expense
LeaseAndRentalExpense
|
42000000 | USD |
CY2019Q1 | us-gaap |
Lease Cost
LeaseCost
|
70000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
|
503000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
|
74000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
|
38000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
|
57000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
|
78000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
|
125000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
|
131000000 | USD |
CY2019Q1 | us-gaap |
Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
|
47000000 | USD |
CY2018Q1 | us-gaap |
Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
|
P148M | |
CY2018Q4 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
8770000000 | USD |
CY2019Q1 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
9360000000 | USD |
CY2018Q4 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
2059000000 | USD |
CY2019Q1 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
2322000000 | USD |
CY2018Q4 | us-gaap |
Liabilities Of Disposal Group Including Discontinued Operation Current
LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent
|
23000000 | USD |
CY2019Q1 | us-gaap |
Liabilities Of Disposal Group Including Discontinued Operation Current
LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent
|
0 | USD |
CY2018Q4 | us-gaap |
Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
|
3052000000 | USD |
CY2019Q1 | us-gaap |
Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
|
2966000000 | USD |
CY2018Q4 | us-gaap |
Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
|
2980000000 | USD |
CY2018Q4 | us-gaap |
Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
|
72000000 | USD |
CY2019Q1 | us-gaap |
Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
|
66000000 | USD |
CY2018Q4 | us-gaap |
Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
|
3124000000 | USD |
CY2019Q1 | us-gaap |
Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
|
3032000000 | USD |
CY2018Q4 | us-gaap |
Minority Interest
MinorityInterest
|
3000000 | USD |
CY2019Q1 | us-gaap |
Minority Interest
MinorityInterest
|
3000000 | USD |
CY2018Q1 | us-gaap |
Minority Interest Decrease From Redemptions
MinorityInterestDecreaseFromRedemptions
|
10000000 | USD |
CY2018Q1 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
-91000000 | USD |
CY2019Q1 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
-297000000 | USD |
CY2018Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
-96000000 | USD |
CY2019Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
237000000 | USD |
CY2018Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
22000000 | USD |
CY2019Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
288000000 | USD |
CY2018Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
102000000 | USD |
CY2019Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
189000000 | USD |
CY2019Q1 | us-gaap |
Number Of Reportable Segments
NumberOfReportableSegments
|
3 | segment |
CY2018Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
159000000 | USD |
CY2019Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
192000000 | USD |
CY2019Q1 | us-gaap |
Operating Lease Cost
OperatingLeaseCost
|
40000000 | USD |
CY2019Q1 | us-gaap |
Operating Lease Liability
OperatingLeaseLiability
|
456000000 | USD |
CY2019Q1 | us-gaap |
Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
|
151000000 | USD |
CY2018Q4 | us-gaap |
Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
|
0 | USD |
CY2019Q1 | us-gaap |
Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
|
305000000 | USD |
CY2018Q4 | us-gaap |
Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
|
320000000 | USD |
CY2019Q1 | us-gaap |
Operating Lease Payments
OperatingLeasePayments
|
35000000 | USD |
CY2018Q4 | us-gaap |
Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
|
0 | USD |
CY2019Q1 | us-gaap |
Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
|
406000000 | USD |
CY2018Q4 | us-gaap |
Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
|
418000000 | USD |
CY2019Q1 | us-gaap |
Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
|
0.0411 | |
CY2019Q1 | us-gaap |
Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
|
P4Y7M | |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
|
713000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
|
144000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
|
55000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
|
71000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
|
83000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
|
114000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
|
246000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable
OperatingLeasesFutureMinimumPaymentsReceivable
|
5000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable Current
OperatingLeasesFutureMinimumPaymentsReceivableCurrent
|
3000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable In Five Years
OperatingLeasesFutureMinimumPaymentsReceivableInFiveYears
|
0 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable In Four Years
OperatingLeasesFutureMinimumPaymentsReceivableInFourYears
|
0 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable In Three Years
OperatingLeasesFutureMinimumPaymentsReceivableInThreeYears
|
1000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable In Two Years
OperatingLeasesFutureMinimumPaymentsReceivableInTwoYears
|
1000000 | USD |
CY2018Q4 | us-gaap |
Operating Leases Future Minimum Payments Receivable Thereafter
OperatingLeasesFutureMinimumPaymentsReceivableThereafter
|
0 | USD |
CY2018Q4 | us-gaap |
Other Assets Current
OtherAssetsCurrent
|
543000000 | USD |
CY2019Q1 | us-gaap |
Other Assets Current
OtherAssetsCurrent
|
430000000 | USD |
CY2018Q4 | us-gaap |
Other Assets Noncurrent
OtherAssetsNoncurrent
|
182000000 | USD |
CY2019Q1 | us-gaap |
Other Assets Noncurrent
OtherAssetsNoncurrent
|
390000000 | USD |
CY2018 | us-gaap |
Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
|
-73000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent
|
-8000000 | USD |
CY2018Q1 | us-gaap |
Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax
|
10000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax
|
-15000000 | USD |
CY2018Q1 | us-gaap |
Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Before Reclassification And Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossBeforeReclassificationAndTax
|
14000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Before Reclassification And Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossBeforeReclassificationAndTax
|
-18000000 | USD |
CY2018Q1 | us-gaap |
Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
|
4000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
|
10000000 | USD |
CY2018Q1 | us-gaap |
Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
|
14000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
|
-5000000 | USD |
CY2018 | us-gaap |
Other Comprehensive Income Loss Tax Portion Attributable To Parent1
OtherComprehensiveIncomeLossTaxPortionAttributableToParent1
|
-7000000 | USD |
CY2019Q1 | us-gaap |
Other Comprehensive Income Loss Tax Portion Attributable To Parent1
OtherComprehensiveIncomeLossTaxPortionAttributableToParent1
|
-5000000 | USD |
CY2018Q4 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
178000000 | USD |
CY2019Q1 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
276000000 | USD |
CY2018Q4 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
144000000 | USD |
CY2018Q1 | us-gaap |
Other Noncash Income Expense
OtherNoncashIncomeExpense
|
-7000000 | USD |
CY2019Q1 | us-gaap |
Other Noncash Income Expense
OtherNoncashIncomeExpense
|
-3000000 | USD |
CY2018Q1 | us-gaap |
Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
|
0 | USD |
CY2019Q1 | us-gaap |
Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
|
92000000 | USD |
CY2018Q1 | us-gaap |
Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
|
10000000 | USD |
CY2018Q1 | us-gaap |
Payments For Repurchase Of Equity
PaymentsForRepurchaseOfEquity
|
22000000 | USD |
CY2019Q1 | us-gaap |
Payments For Repurchase Of Equity
PaymentsForRepurchaseOfEquity
|
222000000 | USD |
CY2018Q1 | us-gaap |
Payments Of Ordinary Dividends
PaymentsOfOrdinaryDividends
|
52000000 | USD |
CY2019Q1 | us-gaap |
Payments Of Ordinary Dividends
PaymentsOfOrdinaryDividends
|
54000000 | USD |
CY2018Q1 | us-gaap |
Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
|
81000000 | USD |
CY2019Q1 | us-gaap |
Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
|
0 | USD |
CY2018Q1 | us-gaap |
Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
|
15000000 | USD |
CY2019Q1 | us-gaap |
Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
|
30000000 | USD |
CY2018Q1 | us-gaap |
Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
|
0 | USD |
CY2019Q1 | us-gaap |
Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
|
171000000 | USD |
CY2018Q1 | us-gaap |
Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
|
4000000 | USD |
CY2019Q1 | us-gaap |
Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
|
10000000 | USD |
CY2018Q1 | us-gaap |
Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
|
-4000000 | USD |
CY2019Q1 | us-gaap |
Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
|
0 | USD |
CY2018Q1 | us-gaap |
Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
|
0 | USD |
CY2019Q1 | us-gaap |
Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
|
96000000 | USD |
CY2018Q1 | us-gaap |
Profit Loss
ProfitLoss
|
102000000 | USD |
CY2019Q1 | us-gaap |
Profit Loss
ProfitLoss
|
189000000 | USD |
CY2018Q4 | us-gaap |
Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
|
586000000 | USD |
CY2019Q1 | us-gaap |
Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
|
536000000 | USD |
CY2018Q4 | us-gaap |
Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
|
237000000 | USD |
CY2019Q1 | us-gaap |
Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
|
220000000 | USD |
CY2018Q4 | us-gaap |
Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
|
238000000 | USD |
CY2018Q4 | us-gaap |
Receivables Net Current
ReceivablesNetCurrent
|
1877000000 | USD |
CY2019Q1 | us-gaap |
Receivables Net Current
ReceivablesNetCurrent
|
1894000000 | USD |
CY2018 | us-gaap |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodBeforeTax
|
6000000 | USD |
CY2019Q1 | us-gaap |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodBeforeTax
|
2000000 | USD |
CY2018Q1 | us-gaap |
Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
|
17000000 | USD |
CY2019Q1 | us-gaap |
Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
|
31000000 | USD |
CY2018Q4 | us-gaap |
Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
|
42000000 | USD |
CY2019Q1 | us-gaap |
Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
|
61000000 | USD |
CY2018Q4 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
372000000 | USD |
CY2019Q1 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
562000000 | USD |
CY2018Q4 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
420000000 | USD |
CY2018Q1 | us-gaap |
Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
|
2443000000 | USD |
CY2019Q1 | us-gaap |
Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
|
2577000000 | USD |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
|
11000000000 | USD |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
|
6500000000 | USD |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
|
1700000000 | USD |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
|
2800000000 | USD |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
|
P9M | |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
|
P1Y | |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
|
P1Y | |
CY2019Q1 | us-gaap |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
|
||
CY2019Q1 | us-gaap |
Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
|
23000000 | USD |
CY2019Q1 | us-gaap |
Sales Type Lease Revenue
SalesTypeLeaseRevenue
|
18000000 | USD |
CY2018Q1 | us-gaap |
Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
|
178000000 | USD |
CY2019Q1 | us-gaap |
Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
|
166000000 | USD |
CY2018Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
11000000 | USD |
CY2019Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
12000000 | USD |
CY2019Q1 | us-gaap |
Short Term Lease Cost
ShortTermLeaseCost
|
2000000 | USD |
CY2018Q1 | us-gaap |
Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
|
5000000 | USD |
CY2019Q1 | us-gaap |
Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
|
11000000 | USD |
CY2018Q1 | us-gaap |
Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
|
22000000 | USD |
CY2019Q1 | us-gaap |
Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
|
222000000 | USD |
CY2018Q4 | us-gaap |
Stockholders Equity
StockholdersEquity
|
3308000000 | USD |
CY2019Q1 | us-gaap |
Stockholders Equity
StockholdersEquity
|
3294000000 | USD |
CY2017Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
3383000000 | USD |
CY2018Q1 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
3434000000 | USD |
CY2018Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
3311000000 | USD |
CY2019Q1 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
3297000000 | USD |
CY2017Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1
|
3384000000 | USD |
CY2018Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1
|
3359000000 | USD |
CY2019Q1 | us-gaap |
Variable Lease Cost
VariableLeaseCost
|
26000000 | USD |
CY2018Q1 | us-gaap |
Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
|
154000000 | shares |
CY2019Q1 | us-gaap |
Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
|
147000000 | shares |
CY2018Q1 | us-gaap |
Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
|
152000000 | shares |
CY2019Q1 | us-gaap |
Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
|
145000000 | shares |
CY2019Q1 | us-gaap |
Loss Contingency Disclosures
LossContingencyDisclosures
|
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Note 18–Contingencies</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Legal Proceedings</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">MSA Joint Venture</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 Federal Acquisition Regulations ("FAR"). Lockheed Martin Integrated Technology LLC (now known as Leidos Integrated Technology LLC) is a member entity of MSA. Subsequent to the contracting officer's final decision, MSA, LMSI, and Lockheed Martin Corporation received notice from the U.S. Attorney's Office for the Eastern District of Washington that the U.S. government had initiated a False Claims Act investigation into the facts surrounding this dispute, and each of MSA, LMSI and Lockheed Martin Corporation have produced information in response to Civil Investigative Demands from the U.S. Attorney's Office. On February 8, 2019, the U.S. Attorney's office filed a complaint in the United States District Court for the Eastern District of Washington against MSA, Lockheed Martin Corporation, Lockheed Martin Services, Inc. and a Lockheed Martin employee. The complaint alleges violations of the False Claims Act, the Anti-Kickback Act and breach of contract with DoE, among other things. The U.S. Attorney's office had previously advised that a parallel criminal investigation was open, although no subjects or targets of the investigation had been identified. The U.S. Attorney's office has informed MSA that is has closed the criminal investigation.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Since this issue first was raised by the DoE, MSA has asserted that the IT services performed by LMSI under a fixed-price/fixed-unit rate subcontract approved by the DoE meet the definition of a "commercial item" under the FAR and any profits earned on that subcontract are permissible. MSA filed an appeal of the contracting officer's decision with the Civilian Board of Contract Appeals and that appeal is pending, but was stayed pending resolution of the False Claims Act investigation and now case. Subsequent to the filing of MSA's appeal, the contracting officer demanded that MSA reimburse the DoE in the amount of </font><font style="font-family:Arial;font-size:10pt;">$64 million</font><font style="font-family:Arial;font-size:10pt;">, which was his estimate of the profits earned during the period from 2010 to 2014 by LMSI. The DoE has deferred collection of </font><font style="font-family:Arial;font-size:10pt;">$32 million</font><font style="font-family:Arial;font-size:10pt;"> 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 </font><font style="font-family:Arial;font-size:10pt;">$64 million</font><font style="font-family:Arial;font-size:10pt;"> reimbursement claim. The Company has agreed to indemnify Jacobs Group and Centerra Group, LLC for any liability MSA incurs in this matter. Under the terms of the Separation Agreement, Lockheed Martin agreed to indemnify the Company for </font><font style="font-family:Arial;font-size:10pt;">100%</font><font style="font-family:Arial;font-size:10pt;"> of any damages in excess of </font><font style="font-family:Arial;font-size:10pt;">$38 million</font><font style="font-family:Arial;font-size:10pt;"> up to </font><font style="font-family:Arial;font-size:10pt;">$64 million</font><font style="font-family:Arial;font-size:10pt;">, and </font><font style="font-family:Arial;font-size:10pt;">50%</font><font style="font-family:Arial;font-size:10pt;"> of any damages in excess of </font><font style="font-family:Arial;font-size:10pt;">$64 million</font><font style="font-family:Arial;font-size:10pt;">, with respect to claims asserted against MSA related to this matter. At </font><font style="font-family:Arial;font-size:10pt;">March 29, 2019</font><font style="font-family:Arial;font-size:10pt;">, the Company had a liability of </font><font style="font-family:Arial;font-size:10pt;">$39 million</font><font style="font-family:Arial;font-size:10pt;"> recorded in the condensed consolidated balance sheets.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Securities Litigation</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Between February and April 2012, alleged stockholders filed </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> putative securities class actions against the Company and several former executives relating to the Company's contract to develop and implement an automated time and attendance and workforce management system for certain agencies of the City of New York ("CityTime"). </font><font style="font-family:Arial;font-size:10pt;">One</font><font style="font-family:Arial;font-size:10pt;"> case was withdrawn and </font><font style="font-family:Arial;font-size:10pt;">two</font><font style="font-family:Arial;font-size:10pt;"> cases were consolidated in the U.S. District Court for the Southern District of New York in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">In Re: SAIC, Inc. Securities Litigation</font><font style="font-family:Arial;font-size:10pt;">. The consolidated securities complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations that the Company and individual defendants made misleading statements or omissions about the Company's revenues, operating income and internal controls in connection with disclosures relating to the CityTime project. The plaintiffs sought to recover from the Company and the individual defendants an unspecified amount of damages class members allegedly incurred by buying Leidos' stock at an inflated price. The District Court dismissed the plaintiffs' claims with prejudice and without leave to replead. The plaintiffs then appealed to the United States Court of Appeals for the Second Circuit, which issued an opinion affirming in part, and vacating in part, the District Court's ruling. The Company filed a petition for a writ of certiorari in the U.S. Supreme Court, which was granted on March 27, 2017. The District Court granted the Company's request to stay all proceedings, including discovery, pending the outcome at the Supreme Court. In September 2017, the parties engaged in mediation resulting in an agreement to settle all remaining claims for an immaterial amount to be paid by the Company. The amounts payable by the Company are covered by an insurance policy. The terms of the proposed settlement remain subject to court approval.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Greek Government Contract </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In 2003, the Company entered into an FFP contract with the Hellenic Republic of Greece to provide a Command, Control, Communications, Coordination and Integration System. The Greek government disputed the contract balance owed to the Company and has not paid the Company's final invoice. In 2013, the Company received an arbitral award by the International Chamber of Commerce for </font><font style="font-family:Arial;font-size:10pt;">€39 million</font><font style="font-family:Arial;font-size:10pt;">, which has not been satisfied. In January 2017, the U.S. District Court granted an order to enforce the arbitration award and entered judgment in the Company's favor. The Company has commenced enforcement proceedings against the Greek government in several jurisdictions. Separately, the Greek government has sought to annul the award through separate litigation in the Greek courts, and such a challenge is currently pending. Based on the complex nature of this contractual situation and the difficulties encountered to date, significant uncertainties exist and the Company is unable to reliably estimate the ultimate outcome.  </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Arbitration Proceeding</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company is a party to an arbitration proceeding involving a claim by Lockheed Martin for indemnification for </font><font style="font-family:Arial;font-size:10pt;">$56 million</font><font style="font-family:Arial;font-size:10pt;"> in taxes attributable to deferred revenue recognized as a result of the Transactions. Based on the arguments advanced to date, the Company believes that the claim appears to be without merit and intends to vigorously defend itself in arbitration. The Company does not believe that a material loss is probable, and has therefore not recorded any liability for this matter. </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company is also involved in various claims and lawsuits arising in the normal conduct of its business, none of which, in the opinion of the Company's management, based upon current information, will likely have a material adverse effect on the Company's condensed consolidated financial position, results of operations or cash flows.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Other Contingencies</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">VirnetX, Inc.</font><font style="font-family:Arial;font-size:10pt;"> </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 </font><font style="font-family:Arial;font-size:10pt;">$343 million</font><font style="font-family:Arial;font-size:10pt;"> in pre-interest damages. The court subsequently awarded an additional sum of over </font><font style="font-family:Arial;font-size:10pt;">$96 million</font><font style="font-family:Arial;font-size:10pt;"> for costs, attorneys' fees, and interest, bringing the total award to VirnetX in the Apple I case to over </font><font style="font-family:Arial;font-size:10pt;">$439 million</font><font style="font-family:Arial;font-size:10pt;">. 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 </font><font style="font-family:Arial;font-size:10pt;">$439 million</font><font style="font-family:Arial;font-size:10pt;"> judgment. It is expected that Apple will appeal this decision. </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 </font><font style="font-family:Arial;font-size:10pt;">$502 million</font><font style="font-family:Arial;font-size:10pt;">. 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 </font><font style="font-family:Arial;font-size:10pt;">$502 million</font><font style="font-family:Arial;font-size:10pt;"> and granted VirnetX’s motions for supplemental damages, a sunset royalty and royalty rate of </font><font style="font-family:Arial;font-size:10pt;">$1.20</font><font style="font-family:Arial;font-size:10pt;"> 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 </font><font style="font-family:Arial;font-size:10pt;">$93 million</font><font style="font-family:Arial;font-size:10pt;"> 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 </font><font style="font-family:Arial;font-size:10pt;">$595 million</font><font style="font-family:Arial;font-size:10pt;">. Apple has filed an appeal of the judgment in the Apple II case with the U.S. Court of Appeals for the Federal Circuit.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Under its agreements with VirnetX, the Company would receive </font><font style="font-family:Arial;font-size:10pt;">25%</font><font style="font-family:Arial;font-size:10pt;"> of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, the verdicts in these cases remain subject to appeal. In addition, the patents at issue in these cases are subject to U.S. Patent and Trademark Office post-grant inter partes review and/or reexamination proceedings and related appeals, which may result in all or part of these patents being invalidated or the claims of the patents being limited. Thus, no assurances can be given when or if the Company will receive any proceeds in connection with these jury awards. In addition, if the Company receives any proceeds, the Company is required to pay a royalty to the customer who paid for the development of the technology. </font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company does not have any assets or liabilities recorded in connection with this matter as of </font><font style="font-family:Arial;font-size:10pt;">March 29, 2019</font><font style="font-family:Arial;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Government Investigations and Reviews</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to its role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States. Adverse findings could have a material effect on the Company's business, financial position, results of operations and cash flows due to its reliance on government contracts.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">As of </font><font style="font-family:Arial;font-size:10pt;">March 29, 2019</font><font style="font-family:Arial;font-size:10pt;">, indirect cost audits by the Defense Contract Audit Agency remain open for fiscal 2013 and subsequent fiscal years. Although the Company has recorded contract revenues based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company cannot predict the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company's estimates, its profitability may be adversely affected. As of </font><font style="font-family:Arial;font-size:10pt;">March 29, 2019</font><font style="font-family:Arial;font-size:10pt;">, the Company believes it has adequately reserved for potential adjustments from audits or reviews of contract costs.</font></div><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In February 2019, the Company executed an external restructuring advance agreement with the DoD in accordance with provisions of the Defense Federal Acquisition Regulation Supplement, which allows the Company to recover certain specified external restructuring costs.</font></div></div> |