diff --git a/core/lib/Drupal/Core/Utility/ProjectInfo.php b/core/lib/Drupal/Core/Utility/ProjectInfo.php
index 2b3ed46..89d50ad 100644
--- a/core/lib/Drupal/Core/Utility/ProjectInfo.php
+++ b/core/lib/Drupal/Core/Utility/ProjectInfo.php
@@ -19,9 +19,8 @@ class ProjectInfo {
   /**
    * Populates an array of project data.
    *
-   * @todo https://www.drupal.org/node/2338167 update class since extensions can
-   *   no longer be hidden, enabled or disabled. Additionally, base themes have
-   *   to be installed for sub themes to work.
+   * @todo https://www.drupal.org/node/2553909 update class since extensions can
+   *   no longer be disabled.
    *
    * This iterates over a list of the installed modules or themes and groups
    * them by project and status. A few parts of this function assume that
@@ -29,10 +28,12 @@ class ProjectInfo {
    * modules or themes are being processed (there is a setting to control if
    * disabled code should be included in the Available updates report or not),
    * those are only processed after $projects has been populated with
-   * information about the enabled code. 'Hidden' modules are always ignored.
-   * 'Hidden' themes are ignored only if they have no enabled sub-themes.
-   * This function also records the latest change time on the .info.yml
-   * files for each module or theme, which is important data which is used when
+   * information about the enabled code. 'Hidden' modules and themes are
+   * ignored if they are not installed. 'Hidden' Modules and themes in the
+   * "Testing" package are ignored regardless of installation status.
+   *
+   * This function also records the latest change time on the .info.yml files
+   * for each module or theme, which is important data which is used when
    * deciding if the available update data should be invalidated.
    *
    * @param array $projects
diff --git a/core/modules/update/src/Tests/UpdateContribTest.php b/core/modules/update/src/Tests/UpdateContribTest.php
index 62fadd3..7fd6de5 100644
--- a/core/modules/update/src/Tests/UpdateContribTest.php
+++ b/core/modules/update/src/Tests/UpdateContribTest.php
@@ -66,6 +66,7 @@ function testNoReleasesAvailable() {
    * Tests the basic functionality of a contrib module on the status report.
    */
   function testUpdateContribBasic() {
+    $project_link = \Drupal::l(t('AAA Update test'), Url::fromUri('http://example.com/project/aaa_update_test'));
     $system_info = array(
       '#all' => array(
         'version' => '8.0.0',
@@ -87,7 +88,30 @@ function testUpdateContribBasic() {
     $this->assertText(t('Up to date'));
     $this->assertRaw('<h3>' . t('Modules') . '</h3>');
     $this->assertNoText(t('Update available'));
-    $this->assertRaw(\Drupal::l(t('AAA Update test'), Url::fromUri('http://example.com/project/aaa_update_test')), 'Link to aaa_update_test project appears.');
+    $this->assertRaw($project_link, 'Link to aaa_update_test project appears.');
+
+    // Since aaa_update_test is installed the fact it is hidden and in the
+    // Testing means it should not appear.
+    $system_info['aaa_update_test']['hidden'] = TRUE;
+    $this->config('update_test.settings')->set('system_info', $system_info)->save();
+    $this->refreshUpdateStatus(
+      array(
+        'drupal' => '0.0',
+        'aaa_update_test' => '1_0',
+      )
+    );
+    $this->assertNoRaw($project_link, 'Link to aaa_update_test project does not appear.');
+
+    // A hidden and installed project not in the testing package should appear.
+    $system_info['aaa_update_test']['package'] = 'aaa_update_test';
+    $this->config('update_test.settings')->set('system_info', $system_info)->save();
+    $this->refreshUpdateStatus(
+      array(
+        'drupal' => '0.0',
+        'aaa_update_test' => '1_0',
+      )
+    );
+    $this->assertRaw($project_link, 'Link to aaa_update_test project appears.');
   }
 
   /**
diff --git a/core/modules/update/update.module b/core/modules/update/update.module
index daf0676..a6ac805 100644
--- a/core/modules/update/update.module
+++ b/core/modules/update/update.module
@@ -183,7 +183,7 @@ function update_theme() {
       'file' => 'update.report.inc',
     ),
     'update_project_status' => array(
-      'variables' => array('project' => array(), 'includes_status' => array()),
+      'variables' => array('project' => array()),
       'file' => 'update.report.inc',
     ),
     // We are using template instead of '#type' => 'table' here to keep markup
diff --git a/core/modules/update/update.report.inc b/core/modules/update/update.report.inc
index 8bed1d2..6e1eacf 100644
--- a/core/modules/update/update.report.inc
+++ b/core/modules/update/update.report.inc
@@ -39,24 +39,12 @@ function template_preprocess_update_report(&$variables) {
     $variables['no_updates_message'] = _update_no_data();
   }
 
-  $status = array();
-
-  // Create an array of status values keyed by module or theme name, since
-  // we'll need this while generating the report if we have to cross reference
-  // anything (e.g. subthemes which have base themes missing an update).
-  foreach ($data as $project) {
-    foreach ($project['includes'] as $key => $name) {
-      $status[$key] = $project['status'];
-    }
-  }
-
   $rows = array();
 
   foreach ($data as $project) {
     $project_status = array(
       '#theme' =>  'update_project_status',
       '#project' => $project,
-      '#includes_status' => $status,
     );
 
     // Build project rows.
@@ -120,14 +108,10 @@ function template_preprocess_update_report(&$variables) {
  * @param array $variables
  *   An associative array containing:
  *   - project: An array of information about the project.
- *   - includes_status: An array of sub-project statuses where the keys are the
- *     shortnames of each project and the values are UPDATE_* integer constants
- *     as defined in update.module.
  */
 function template_preprocess_update_project_status(&$variables) {
   // Storing by reference because we are sorting the project values.
   $project = &$variables['project'];
-  $includes_status = $variables['includes_status'];
 
   // Set the project title and URL.
   $variables['title'] = (isset($project['title'])) ? $project['title'] : $project['name'];