Segment Information

9 Months Ended

Dec. 28, 2012

Segment Information [Abstract]

Segment 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. BSS results for fiscal 2012 have been adjusted from amounts previously reported to reflect the removal of revenue and costs associated with discontinued operations.

(Amounts in millions)	NPS		MSS		BSS(2)			Corporate			Eliminations			Total
Quarter ended December 28, 2012
Revenues	$	1,340	$	1,620	$	853		$	3		$	(35	)	$	3,781
Operating income (loss)	137		125		36			(30		)	—			268
Depreciation and amortization	40		195		32			3			—			270
Quarter ended December 30, 2011
Revenues	$	1,379	$	1,670	$	663		$	3		$	(28	)	$	3,687
Operating income (loss)	65		108		(1,459		)	(21		)	—			(1,307		)
Depreciation and amortization	43		215		44			(1		)	—			301

(Amounts in millions)	NPS(1)		MSS		BSS(2)			Corporate			Eliminations			Total
Nine months ended December 28, 2012
Revenues	$	4,083	$	4,838	$	2,601		$	9		$	(97	)	$	11,434
Operating income (loss)	388		308		65			(63		)	—			698
Depreciation and amortization	121		568		107			10			—			806
Nine months ended December 30, 2011
Revenues	$	4,299	$	4,908	$	2,410		$	9		$	(99	)	$	11,527
Operating income (loss)	51		162		(1,417		)	(47		)	—			(1,251		)
Depreciation and amortization	119		622		114			13			—			868

⁽¹⁾  The nine months endedDecember 30, 2011 amounts include $42 million reduction of revenue and $269 million reduction in operating income as a result of the settlement of claims with the U.S. government (see Note 18).

⁽²⁾  The third quarter and nine months endedDecember 30, 2011 amounts include $204 million reduction of revenue and $1,485 million reduction in operating income as a result of the charge associated with the NHS contract (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						Nine Months Ended
(Amounts in millions)	December 28, 2012			December 30, 2011			December 28, 2012			December 30, 2011
Operating income (loss)	$	268		$	(1,307	)	$	698		$	(1,251	)
Corporate G&A	(56		)	(46		)	(186		)	(166		)
Interest expense	(57		)	(42		)	(147		)	(129		)
Interest income	4			8			14			32
Goodwill impairment	—			(60		)	—			(2,745		)
Other (expense) income, net	(4		)	(12		)	1			(1		)
Income (loss) from continuing operations before taxes	$	155		$	(1,459	)	$	380		$	(4,260	)

During the quarter and nine months endedDecember 28, 2012 and December 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 nine months endedDecember 28, 2012 and December 30, 2011, as if the adjustments had been recorded in the appropriate period.

	NPS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended December 28, 2012
Revenues	$	1,340	$	—		$	1,340
Operating income	137		—			137
Depreciation and amortization	40		—			40
Quarter ended December 30, 2011
Revenues	$	1,379	$	(4	)	$	1,375
Operating income	65		(5		)	60
Depreciation and amortization	43		—			43

	NPS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Nine months ended December 28, 2012
Revenues	$	4,083	$	—		$	4,083
Operating income	388		6			394
Depreciation and amortization	121		—			121
Nine months ended December 30, 2011
Revenues	$	4,299	$	(4	)	$	4,295
Operating income	51		(2		)	49
Depreciation and amortization	119		—			119

	MSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended December 28, 2012
Revenues	$	1,620	$	1		$	1,621
Operating income	125		1			126
Depreciation and amortization	195		—			195
Quarter ended December 30, 2011
Revenues	$	1,670	$	(4	)	$	1,666
Operating income	108		12			120
Depreciation and amortization	215		(1		)	214

	MSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Nine months ended December 28, 2012
Revenues	$	4,838	$	1		$	4,839
Operating income	308		2			310
Depreciation and amortization	568		—			568
Nine months ended December 30, 2011
Revenues	$	4,908	$	—		$	4,908
Operating income	162		29			191
Depreciation and amortization	622		(2		)	620

	BSS
(Amounts in millions)	As Reported			Increase/ (Decrease)			Adjusted
Quarter ended December 28, 2012
Revenues	$	853		$	—		$	853
Operating income	36			1			37
Depreciation and amortization	32			(4		)	28
Quarter ended December 30, 2011
Revenues	$	663		$	53		$	716
Operating loss	(1,459		)	48			(1,411		)
Depreciation and amortization	44			—			44

	BSS
(Amounts in millions)	As Reported			Increase/ (Decrease)			Adjusted
Nine months ended December 28, 2012
Revenues	$	2,601		$	9		$	2,610
Operating income	65			(10		)	55
Depreciation and amortization	107			(2		)	105
Nine months ended December 30, 2011
Revenues	$	2,410		$	44		$	2,454
Operating loss	(1,417		)	45			(1,372		)
Depreciation and amortization	114			—			114

Further out of period adjustments were identified in subsequent quarters of fiscal 2012 and in the first nine months of fiscal 2013 that had an impact on fiscal 2012. The impact of such adjustments on fiscal 2012 attributable to the NPS segment would be to increase revenue by $5 million and increase operating income by $10 million. The impact of such adjustments on fiscal 2012 attributable to the MSS segment would be to increase revenue by $6 million and increase operating income by $33 million. The impact of such adjustments on fiscal 2012 attributable to the BSS segment would be to increase revenue by $42 million and decrease operating loss by $45 million.