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Retirement Plans
 12 Months Ended
Jan. 03, 2025
Retirement Benefits [Abstract]  
Retirement Plans
Note 19—Retirement Plans
DEFINED CONTRIBUTION PLANS
We sponsor various defined contribution plans in which most employees are eligible to participate. These plans allow eligible participants to contribute a portion of their income through payroll deductions and Leidos may also make discretionary contributions. Company contributions were $159 million, $148 million and $145 million for fiscal 2024, 2023 and 2022, respectively.
DEFERRED COMPENSATION PLANS
We maintain three deferred compensation plans, the Keystaff Deferral Plan (“KDP”), the KESDP and the MSCP (the “Deferred Compensation Plans”), for the benefit of certain management or highly compensated employees or members of the Board of Directors. The Deferred Compensation Plans allow eligible participants to elect to defer a portion of their salary, and all or a portion of certain bonuses, including restricted stock unit awards. Directors may also elect to defer their cash compensation in addition to their restricted stock unit awards. Balances in the Deferred Compensation 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 17—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 two frozen defined benefit pension plans (“the Defined Benefit Plans”), one in the United Kingdom (“UK”) for former employees on an expired customer contract and another assumed as a result of the Gibbs & Cox acquisition.
On May 20, 2022, the trustee of our UK defined benefit pension plan (the “Plan”) invested the assets of the Plan in a bulk purchase annuity policy to fully insure the benefits payable to the members of the Plan. As the buy-in transaction insured the defined benefit obligation, we do not anticipate material future contributions. The bulk purchase annuity policy is structured to enable the Plan to move to a full buy-out, at which time the insurer would become directly responsible for all pension payments and we would be relieved of our obligations under the Plan. At this future date, a settlement loss will be recognized for an amount equal to any unamortized loss associated with the Plan recorded within AOCI and any remaining net plan assets of the Plan will be remitted to the Company. As of January 3, 2025, and December 29, 2023, the unamortized loss within AOCI related to the Plan was $20 million and $21 million, respectively. As of January 3, 2025, and December 29, 2023, the Plan had net assets of $7 million and $8 million, respectively.
The projected benefit obligation of the Defined Benefit Plans as of January 3, 2025, and December 29, 2023, was $88 million and $99 million, respectively. The decrease in the projected benefit obligation was primarily due to assumption changes.
The fair value of the Defined Benefit Plans assets as of January 3, 2025, and December 29, 2023, was $94 million and $103 million, respectively. The decrease was primarily driven by assumption changes to reflect the fair value of the annuity contract. The UK Plan funding status was overfunded $7 million and $8 million as of January 3, 2025, and December 29, 2023, respectively. The Gibbs & Cox defined benefit pension plan funding status was underfunded $1 million and $4 million as of January 3, 2025, and December 29, 2023, respectively. The fair value of the the Defined Benefit Plans' assets has been included within “Other long-term liabilities” and "Other long-term assets" on the consolidated balance sheets.
OTHER
We also sponsor multiemployer defined benefit pension plans and defined contribution plans (401(k) plans) (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.