Segment Information

6 Months Ended

Sep. 28, 2012

Segment Information [Abstract]

Segment and Geographic Information

Segment Information

CSC provides information technology (IT) and business process outsourcing, consulting, systems integration and other IT services to its customers. The Company targets the delivery of these services within three broad lines of business or sectors: North American Public Sector, Managed Services Sector, and Business Solutions and Services.

The Company’s reportable segments are as follows:

• North American Public Sector (NPS) – The NPS segment provides services to the U.S. federal government and its agencies, civil departments and branches of military, and operates principally within a regulatory environment subject to governmental contracting and accounting requirements, including Federal Acquisition Regulations, Cost Accounting Standards and audits by various U.S. federal agencies.

• Managed Services Sector (MSS) – The MSS segment provides large-scale and mid-size outsourcing solutions and services to customers globally.

• Business Solutions and Services (BSS) – The BSS segment provides industry specific consulting and systems integration services, business process outsourcing, and intellectual property-based software solutions.

The following table summarizes operating results by reportable segment:

(Amounts in millions)	NPS(1)			MSS		BSS		Corporate			Eliminations			Total
Quarter ended September 28, 2012
Revenues	$	1,375		$	1,583	$	921	$	3		$	(28	)	$	3,854
Operating income (loss)	150			88		64		(4		)	—			298
Depreciation and amortization	40			189		39		5			—			273
Quarter ended September 30, 2011
Revenues	$	1,436		$	1,619	$	945	$	3		$	(37	)	$	3,966
Operating income (loss)	(132		)	45		34		(22		)	—			(75		)
Depreciation and amortization	40			206		38		6			—			290

(Amounts in millions)	NPS(1)			MSS		BSS		Corporate			Eliminations			Total
Six months ended September 28, 2012
Revenues	$	2,743		$	3,218	$	1,906	$	6		$	(62	)	$	7,811
Operating income (loss)	251			183		80		(33		)	—			481
Depreciation and amortization	81			373		75		7			—			536
Six months ended September 30, 2011
Revenues	$	2,920		$	3,238	$	1,906	$	6		$	(71	)	$	7,999
Operating income (loss)	(14		)	54		91		(26		)	—			105
Depreciation and amortization	76			407		71		14			—			568

⁽¹⁾  The quarter and six months ended September 30, 2011 amounts include $42 million reduction of revenue and $269 million in reduction in operating income as a result of the settlement of claims with the U.S. government (see Note 17).

Operating income (loss) provides useful information to the Company’s management for assessment of the Company’s performance and results of operations, and is one of the financial measures utilized to determine executive compensation.

Reconciliation of consolidated operating income (loss) to income (loss) from continuing operations before taxes is as follows:

	Quarter Ended						Six Months Ended
(Amounts in millions)	September 28, 2012			September 30, 2011			September 28, 2012			September 30, 2011
Operating income (loss)	$	298		$	(75	)	$	481		$	105
Corporate G&A	(70		)	(66		)	(130		)	(120		)
Interest expense	(45		)	(46		)	(90		)	(88		)
Interest income	5			12			10			24
Goodwill impairment	—			(2,685		)	—			(2,685		)
Other income (expense), net	14			6			5			11
Income (loss) from continuing operations before taxes	$	202		$	(2,854	)	$	276		$	(2,753	)

During the quarter and six months ended September 28, 2012 and September 30, 2011, the Company recorded certain pre-tax out of period adjustments which should have been recorded in prior fiscal years (see Note 4). The following tables summarize the effect of the pre-tax out of period adjustments on the NPS, MSS and BSS segment results for the quarter and six months ended September 28, 2012 and September 30, 2011, as if the adjustments had been recorded in the appropriate period.

	NPS
(Amounts in millions)	As Reported			Increase/ (Decrease)		Adjusted
Quarter ended September 28, 2012
Revenues	$	1,375		$	1	$	1,376
Operating income	150			3		153
Depreciation and amortization	40			—		40
Quarter ended September 30, 2011
Revenues	$	1,436		$	2	$	1,438
Operating loss	(132		)	1		(131		)
Depreciation and amortization	40			—		40

	NPS
(Amounts in millions)	As Reported			Increase/ (Decrease)		Adjusted
Six months ended September 28, 2012
Revenues	$	2,743		$	—	$	2,743
Operating income	251			6		257
Depreciation and amortization	81			—		81
Six months ended September 30, 2011
Revenues	$	2,920		$	—	$	2,920
Operating loss	(14		)	3		(11		)
Depreciation and amortization	76			—		76

	MSS
(Amounts in millions)	As Reported		Increase/ (Decrease)		Adjusted
Quarter ended September 28, 2012
Revenues	$	1,583	$	2	$	1,585
Operating income	88		—		88
Depreciation and amortization	189		—		189
Quarter ended September 30, 2011
Revenues	$	1,619	$	2	$	1,621
Operating income	45		9		54
Depreciation and amortization	206		—		206

	MSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Six months ended September 28, 2012
Revenues	$	3,218	$	3		$	3,221
Operating income	183		2			185
Depreciation and amortization	373		—			373
Six months ended September 30, 2011
Revenues	$	3,238	$	4		$	3,242
Operating income	54		17			71
Depreciation and amortization	407		(1		)	406

	BSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended September 28, 2012
Revenues	$	921	$	—		$	921
Operating income	64		(12		)	52
Depreciation and amortization	39		—			39
Quarter ended September 30, 2011
Revenues	$	945	$	4		$	949
Operating income	34		1			35
Depreciation and amortization	38		—			38

	BSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Six months ended September 28, 2012
Revenues	$	1,906	$	9		$	1,915
Operating income	80		(13		)	67
Depreciation and amortization	75		1			76
Six months ended September 30, 2011
Revenues	$	1,906	$	(4	)	$	1,902
Operating income	91		(2		)	89
Depreciation and amortization	71		—			71

Further out of period adjustments were identified in subsequent quarters of fiscal 2012 and in the first six months of fiscal 2013. The total out of period adjustments impacting fiscal 2012 that were attributable to the NPS segment resulted in a decrease of $5 million in revenue and a decrease of $10 million in operating income. The total out of period adjustments impacting fiscal 2012 that were attributable to the MSS segment resulted in a decrease of $5 million in revenue and a decrease of $33 million in operating income. The total out of period adjustments impacting fiscal 2012 attributable to the BSS segment resulted in a decrease of $6 million in revenue and a decrease of $22 million in operating income.