Scitor Acquisition (Tables)

9 Months Ended

Oct. 30, 2015

Business Combinations [Abstract]

Schedule of Purchase Price Allocated Among Assets Acquired and Liabilities Assumed

The purchase price was allocated among assets acquired and liabilities assumed at fair value based on the best available information, with the excess purchase price recorded as goodwill. The Company’s allocation of the purchase price is subject to change on receipt of additional information, including, but not limited to, the finalization of intangible asset valuations and the Company’s review of Scitor’s historical government accounting practices that could potentially result in the recognition of additional liabilities on Scitor’s opening balance sheet and an adjustment to goodwill. The Company expects to have sufficient information available to resolve these items by the first quarter of fiscal 2017. The Company recorded purchase accounting entries on a preliminary basis as follows:

	(in millions)
Cash and cash equivalents	$	39
Accounts receivable		86
Deferred income taxes, current		6
Prepaid and other current assets		7
Deferred income taxes, non-current		4
Equipment and leasehold improvements		21
Intangible assets		255
Goodwill		481
Other noncurrent assets		1
Total assets acquired		900
Accounts payable and accrued liabilities		44
Accrued payroll and employee benefits		35
Other noncurrent liabilities		18
Total liabilities assumed		97
Net assets acquired	$	803
Amount of tax deductible goodwill	$	136

Schedule of Acquired Intangible Assets

The intangible assets included above consist of the following:

	Amount		Weighted-Average Amortization Period
	(in millions)		(in years)
Backlog	$	14	1
Trade name		9	2
Customer relationships		232	12
Total intangible assets	$	255	11

Schedule of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations for Scitor and the Company for the three and nine months ended October 30, 2015 and October 31, 2014, respectively:

	Three Months Ended				Nine Months Ended
	October 30, 2015		October 31, 2014		October 30, 2015		October 31, 2014
	(in millions, except per share amounts)
Total revenues	$	1,136	$	1,162	$	3,392	$	3,399
Net income	$	37	$	35	$	105	$	87
Earnings per share:
Basic	$	0.81	$	0.75	$	2.29	$	1.84
Diluted	$	0.78	$	0.72	$	2.21	$	1.78