Segment and Geographic Information

12 Months Ended

Mar. 29, 2013

Segment and Geographic Information [Abstract]

Segment and Geographic Information

Segment and Geographic Information

CSC provides 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: NPS, MSS, and BSS.

The Company’s reportable segments are as follows:

• 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.

• MSS – The MSS segment provides large-scale and mid-size outsourcing solutions and services to customers globally.

• 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 and fiscal 2011, and MSS results for fiscal 2012 have been adjusted from amounts previously reported to reflect the removal of revenue and costs associated with discontinued operations (see Note 3).

Twelve Months Ended
(Amounts in millions)	NPS(1)		MSS		BSS(2)			Corporate			Eliminations			Total
March 29, 2013
Revenues	$	5,391	$	6,457	$	3,272		$	13		$	(140	)	$	14,993
Operating income (loss)	519		361		136			(116		)	—			900
Depreciation and amortization	160		765		137			14			—			1,076
March 30, 2012
Revenues	$	5,703	$	6,602	$	3,180		$	13		$	(134	)	$	15,364
Operating income (loss)	132		17		(1,443		)	(65		)	—			(1,359		)
Depreciation and amortization	162		815		154			16			—			1,147
April 1, 2011
Revenues	$	6,002	$	6,583	$	3,110		$	14		$	(127	)	$	15,582
Operating income (loss)	528		481		188			(72		)	—			1,125
Depreciation and amortization	133		777		127			31			—			1,068

⁽¹⁾  The fiscal 2012 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 19).

⁽²⁾  The fiscal 2012 amounts include $204 million reduction of revenue and $1,485 million in reduction of operating income as a result of the charge associated with the NHS contract (see Note 18).

Operating income provides useful information to the Company’s management for assessment of the Company’s performance and results of operations. Components of the measure are utilized to determine executive compensation along with other measures.

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

	Twelve Months Ended
(Amounts in millions)	March 29, 2013			March 30, 2012			April 1, 2011
Operating income (loss)	$	900		$	(1,359	)	$	1,125
Corporate G&A	(293		)	(219		)	(138		)
Interest expense	(183		)	(175		)	(167		)
Interest income	22			38			37
Goodwill impairment	—			(2,745		)	—
Other income (expense), net	34			6			21
Income (loss) from continuing operations before taxes	$	480		$	(4,454	)	$	878

During fiscal 2013, fiscal 2012, and fiscal 2011, the Company recorded certain pre-tax out-of-period adjustments which should have been recorded in prior fiscal years (See Note 2). The following tables summarize the effect of the pre-tax out-of-period adjustments on the Company's segment results for fiscal 2013, fiscal 2012 and fiscal 2011, if the adjustments had been recorded in the appropriate year.

Twelve Months Ended	NPS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
March 29, 2013
Revenues	$	5,391	$	—		$	5,391
Operating income	519		6			525
Depreciation and amortization	160		—			160
March 30, 2012
Revenues	$	5,703	$	5		$	5,708
Operating income	132		10			142
Depreciation and amortization	162		—			162
April 1, 2011
Revenues	$	6,002	$	—		$	6,002
Operating income	528		(11		)	517
Depreciation and amortization	133		—			133

Twelve Months Ended	MSS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
March 29, 2013
Revenues	$	6,457	$	1		$	6,458
Operating income	361		3			364
Depreciation and amortization	765		—			765
March 30, 2012
Revenues	$	6,602	$	6		$	6,608
Operating income	17		33			50
Depreciation and amortization	815		(2		)	813
April 1, 2011
Revenues	$	6,583	$	34		$	6,617
Operating income	481		45			526
Depreciation and amortization	777		3			780

Twelve Months Ended	BSS
(Amounts in millions)	As Reported			Increase/ (Decrease)			Adjusted
March 29, 2013
Revenues	$	3,272		$	13		$	3,285
Operating income	136			(8		)	128
Depreciation and amortization	137			(2		)	135
March 30, 2012
Revenues	$	3,180		$	45		$	3,225
Operating loss	(1,443		)	43			(1,400		)
Depreciation and amortization	154			—			154
April 1, 2011
Revenues	$	3,110		$	(33	)	$	3,077
Operating income	188			(29		)	159
Depreciation and amortization	127			—			127

Revenue by country is based on the location of the selling business unit. Property and equipment, total assets and capital expenditures (purchase of property and equipment) information is based on the physical location of the asset. Geographic revenue, property and equipment, net, total assets, and capital expenditures for the three years ended March 29, 2013, March 30, 2012, and April 1, 2011, are as follows:

	March 29, 2013
(Amounts in millions)	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	9,345	$	1,729	$	2,217	$	1,702	$	14,993
Property and Equipment, net	1,273		320		217		374		2,184
Total Assets	6,454		1,389		1,487		1,921		11,251
Capital Expenditures	290		70		80		128		568

	March 30, 2012
	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	9,475	$	1,576	$	2,446	$	1,867	$	15,364
Property and Equipment, net	1,406		367		237		431		2,441
Total Assets	6,198		1,329		1,115		2,547		11,189
Capital Expenditures	444		77		90		218		829

	April 1, 2011
	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	9,923	$	1,869	$	2,276	$	1,514	$	15,582
Property and Equipment, net	1,396		403		291		406		2,496
Total Assets	6,855		2,998		3,884		2,383		16,120
Capital Expenditures	577		116		100		179		972

The Company derives a significant portion of its revenues from departments and agencies of the U.S. federal government which accounted for 34%, 36%, and 37% of the Company’s revenues for fiscal 2013, fiscal 2012, and fiscal 2011, respectively. At March 29, 2013 and March 30, 2012, approximately 30% and 33% of the Company’s net accounts receivables was due from the U.S. federal government. No single commercial customer exceeded 10% of the Company’s revenues during fiscal 2013, fiscal 2012, or fiscal 2011.