Segment Information

3 Months Ended

Jun. 28, 2013

Segment Information [Abstract]

Segment Information

Segment Information

CSC is a global leader of information technology (IT) and professional services and solutions. During fiscal 2013, the Company had undertaken numerous organizational and operational changes to align the Company's leadership, assets, and operating model with this strategy. The new operating model supports the execution of CSC's strategy by facilitating the effective development, sales and support of a portfolio of next generation offerings for commercial and government clients. The redesigned operating model, which came into effect at the beginning of fiscal 2014, resulted in a change to the Company's reportable segments for fiscal 2014.

CSC's applications development, testing, and maintenance businesses were transferred from the former MSS segment to the former Business Solutions and Services segment, resulting in the new GIS and GBS reportable segments, respectively. There were no changes to the NPS reportable segment.

The Company’s new reportable segments are as follows:

• GBS – The GBS segment comprises three units: Consulting, Industry Software & Solutions, and Applications Services. The Consulting business is a global leader in helping large organizations, public-sector entities, and local businesses innovate, transform, and create sustainable competitive advantage through a combination of industry, business process, technology, systems integration and change management expertise. Industry Software & Solutions is a leader in industry-based software, services, and business process services and outsourcing. Software solutions and process-based intellectual property power mission-critical transaction engines in insurance, banking, healthcare and life sciences. Applications Services optimizes and modernizes clients' application portfolio and information services sourcing strategy, enabling clients to capitalize on emerging services such as cloud, mobility, and big data within new commercial models such as the agile "as a Service - Economy" (aaS).

• GIS – GIS provides managed and virtual desktop solutions, mobile device management, unified communications and collaboration services, data center management, compute and managed storage solutions to commercial clients globally. GIS also delivers CSC's next generation Cloud offerings, including secure Infrastructure as a Service (IaaS), private Cloud solutions, CloudMail and Storage as a Service (SaaS). To provide clients with uniquely differentiated offerings and expanded market coverage, GIS also collaborates with a select number of strategic partners. This collaboration helps CSC determine the best technology, road map and opportunities to differentiate solutions, augment capabilities, and jointly deliver impactful solutions. CSC seeks to capitalize on an emerging market trend - to rebundle the IT stack on virtualized infrastructure. GIS offerings are designed for any enterprise - from national, multinational and global enterprises. The GIS segment is similar to the former Managed Services Sector (MSS), absent the applications development, testing and maintenance businesses, which are now included in Global Business Services.

• NPS – NPS delivers IT, mission, and operations-related services to the Department of Defense, civil agencies of the U.S. federal government, as well as other foreign, state and local government agencies. Commensurate with the Company's strategy, NPS is leveraging CSC's commercial best practices and next-generation technologies to bring scalable and more cost-effective IT solutions to government agencies that are seeking efficiency through innovation. Evolving government priorities such as: 1) IT efficiency, which includes data center consolidation and next generation cloud technologies, 2) cyber security, 3) immigration reform, 4) mission intelligence driven by big data solutions, and 5) health IT and informatics, drive demand for NPS offerings.

The following table summarizes operating results by reportable segment. Segment results for the quarter ended June 29, 2012 have been recast to reflect the change in reportable segments. In addition, segment results for the quarter ended June 29, 2012 have been adjusted from amounts previously reported to reflect discontinued operations (see Note 3).

(Amounts in millions)	GBS		GIS		NPS		Corporate			Eliminations			Total
Quarter ended June 28, 2013
Revenues	$	1,083	$	1,150	$	1,053	$	4		$	(30	)	$	3,260
Operating income	101		82		121		—			—			304
Depreciation and amortization	41		174		37		3			—			255
Quarter ended June 29, 2012
Revenues	$	1,278	$	1,203	$	1,183	$	3		$	(34	)	$	3,633
Operating income (loss)	66		16		93		(29		)	—			146
Depreciation and amortization	47		173		40		2			—			262

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.

A reconciliation of consolidated operating income to income from continuing operations before taxes is as follows:

	Quarter Ended
(Amounts in millions)	June 28, 2013			June 29, 2012
Operating income	$	304		$	146
Corporate G&A	(64		)	(60		)
Interest expense	(39		)	(44		)
Interest income	4			5
Other income (expense), net	1			(12		)
Income from continuing operations before taxes	$	206		$	35

During the first quarter of fiscal 2014 and fiscal 2013, the Company recorded certain pre-tax out of period adjustments which should have been recorded in prior fiscal periods (see Note 4). The following tables summarize the effect of the pre-tax out of period adjustments on the GBS, GIS, and NPS segment results for the quarters ended June 28, 2013 and June 29, 2012, as if the adjustments had been recorded in the appropriate period:

	GBS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended June 28, 2013
Revenues	$	1,083	$	19		$	1,102
Operating income	101		13			114
Depreciation and amortization	41		—			41
Quarter ended June 29, 2012
Revenues	$	1,278	$	8		$	1,286
Operating income	66		(3		)	63
Depreciation and amortization	47		1			48

	GIS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended June 28, 2013
Revenues	$	1,150	$	—		$	1,150
Operating income	82		(3		)	79
Depreciation and amortization	174		—			174
Quarter ended June 29, 2012
Revenues	$	1,203	$	—		$	1,203
Operating income	16		1			17
Depreciation and amortization	173		(3		)	170

	NPS
(Amounts in millions)	As Reported		Increase/ (Decrease)			Adjusted
Quarter ended June 28, 2013
Revenues	$	1,053	$	—		$	1,053
Operating income	121		(1		)	120
Depreciation and amortization	37		—			37
Quarter ended June 29, 2012
Revenues	$	1,183	$	(2	)	$	1,181
Operating income	93		3			96
Depreciation and amortization	40		—			40