LDOS · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

Leidos Holdings, Inc. · 2026-08-04 · Importance 84 · Surprise 74 · Matches filing data

Outstanding debt increased to $6.0 billion at July 3, 2026, from $4.6 billion at January 2, 2026. In March 2026, Leidos issued $600 million of 4.10% senior notes due March 2029 and $800 million of 5.00% senior notes due March 2036, using the proceeds partly to fund the Entrust acquisition. Higher interest expense from terminating the senior unsecured bridge loan facility and issuing these notes increased non-operating expense to $142 million in the six months ended July 3, 2026, from $105 million in the prior-year period.

Key facts

• Non-operating expense, net was $142 million for the six months ended July 3, 2026 and $105 million for the six months ended July 4, 2025; the increase was primarily attributable to a $23 million settlement loss from the buy-out of the UK defined benefit pension plan and increased interest expense from termination of the bridge loan and issuance of $600 million and $800 million senior notes. source
• Non-operating expense, net was $63 million for the three months ended July 3, 2026 and $53 million for the three months ended July 4, 2025; the increase was primarily attributable to increased interest expense from the termination of the senior unsecured bridge loan facility and issuance of $600 million and $800 million senior notes. source
• Leidos' commercial paper notes may have maturities of up to 397 days from the date of issuance. source

Impact estimates