Investigations and Out of Period Adjustments

12 Months Ended

Mar. 28, 2014

Out of period adjustments [Abstract]

Investigations and Out of Period Adjustments

Restatement and Adjustment of Consolidated Financial Statements

Background of the Restatement

As previously disclosed, on January 28, 2011, the Company was notified by the Division of Enforcement of the Securities and Exchange Commission (the SEC) that it had commenced a formal civil investigation. That investigation covered a range of matters as previously disclosed by the Company, including certain of the Company’s prior disclosures and accounting determinations. On May 2, 2011, the Audit Committee of the Board of Directors of the Company (the Audit Committee) commenced an independent investigation. The Audit Committee retained independent counsel to represent the Company on behalf of, and under the exclusive direction of, the Audit Committee in connection with such independent investigation. Independent counsel retained forensic accountants and disclosure experts to assist with their work. The Audit Committee determined in August 2012 that its independent investigation was complete. The Audit Committee instructed its independent counsel to cooperate with the SEC's Division of Enforcement by completing production of documents and providing any further information requested by the SEC's Division of Enforcement.

As a result of findings by the Audit Committee’s independent investigation, the Company previously acknowledged certain historic errors and irregularities relating to accounting entries arising from the Nordics region, Australia, and the Company’s contractual relationship with the U.K. National Health Service (the NHS), self-reported these errors and irregularities to the SEC’s Division of Enforcement, and made out of period adjustments to its financial statements as reported in its past filings. In addition, as previously disclosed, certain personnel in certain foreign operations were reprimanded, suspended, terminated and/or resigned and additional controls were implemented. Based on recommendations from the Audit Committee’s independent investigation and discussions with the SEC's staff concerning the SEC's investigation, the Company also instituted comprehensive enhancements beginning in 2011 to its compliance, financial and disclosure controls, and to the function of internal audit. In doing so, the Company made significant changes to prevent the type of misconduct identified by the Audit Committee’s independent investigation from recurring. For additional information relating to the NHS contract, see Note 23.

The Company participated in discussions with the SEC’s staff concerning a resolution of the SEC’s investigation. Many of those discussions concerned the Company’s prior use in fiscal 2009-2012 of the terms of ongoing NHS contract negotiations in developing its assumptions and judgments with respect to the margin used in recognizing profit under the POC accounting method and in evaluating the recoverability of NHS contract assets as well as the Company’s prior disclosures concerning such matters.

On June 5, 2015, the Company reached a settlement with the staff of the SEC (the SEC Settlement) of an administrative enforcement action alleging violations of the anti-fraud, reporting, books-and-records and internal controls provisions of the U.S. securities laws. The Company has neither admitted nor denied the allegations, but has agreed to cease-and-desist from committing or causing any violations or future violations of those provisions.

Pursuant to the SEC Settlement, the Company is restating its accompanying financial statements for fiscal 2012. The restatement has no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, of Comprehensive Income (Loss), of Cash Flows and of Changes in Equity for fiscal 2013 or fiscal 2014.

The restatement reflects the Company's acknowledgment that there were accounting errors in fiscal 2009-2012 with respect to certain assumptions under the POC accounting method for the NHS contract. As part of the restatement, the Company has revised those assumptions based upon uncertainty with respect to a range of possible final outcomes under the NHS contract. As a result, the Company has revised the accounting based on the impracticality of estimating a specific level of profit during this period in order to reflect a profit margin of zero under the POC accounting rules, beginning in the first quarter of fiscal 2009. The result is that $129 million of operating income through the beginning of fiscal 2012 is no longer recognized in prior years, thereby reducing the impairment charge previously recorded in fiscal 2012 by approximately that same amount. As a result, the Company recorded the following changes to historic cost of services, thereby reducing reported operating income by the same amount, increasing cost of services by $131 million in fiscal year 2009, increasing cost of services by $35 million in fiscal year 2010, decreasing cost of services by $37 million in fiscal 2011 and decreasing cost of services by $146 million in fiscal year 2012.

Further, as part of the settlement discussions, the SEC’s staff advised the Company that it had concluded that the Company should have recorded the previously disclosed impairment charge related to the NHS contract in fiscal 2011 instead of fiscal 2012. The Company’s restatement accordingly reflects an impairment charge of $1,158 million in fiscal 2011, with a corresponding reduction in the impairment charge previously recognized in fiscal 2012. Due to the change in timing of the impairment on the NHS contract, the Company also moved $2,511 million of the previously reported fiscal 2012 goodwill impairment charge of $2,745 million to fiscal 2011. All of which resulted in a reduction in retained earnings as of the beginning of fiscal 2012.

The result of the restatement is to increase net income and diluted EPS in fiscal 2012 by $3,901 million and $25.17, respectively, from amounts previously reported.

As part of the terms of the SEC Settlement, the Company agreed to pay a penalty of $190 million and agreed to implement a review of its compliance policies through an independent compliance consultant. The Company recorded a pre-tax charge of approximately $197 million for the penalty and related expenses during fiscal year 2015 with respect to this matter.

Out of Period Adjustments recorded in Fiscal Years 2011 and 2012

As discussed in greater detail in Note 4, the Company in the course of its investigation identified, disclosed and recorded certain out of period adjustments related to historic accounting errors in the period such errors were identified. In connection with the Company’s restatement, the Company has restated out of period adjustments previously identified and recorded in fiscal years 2011 and 2012 to record the effects of such adjustments in the period in which they should have been recorded rather than in the period that the errors were identified. The following charts display the effects of such restatement for these out of period adjustments on the income statement and the cumulative effect on the balance sheet for each period:

(Amounts in millions)	Period Recognized
Account Name	Fiscal 2009 and Prior			Fiscal 2010			Fiscal 2011			Fiscal 2012
Income Statement:
Revenue	$	(35	)	$	(38	)	$	5		$	68
Costs of services	25			22			(17		)	(36		)
Selling, general & administrative expenses	—			(2		)	—			1
Corporate G&A	—			—			—			—
Depreciation	—			(1		)	3			(2		)
Interest Expense	(1		)	2			—			(3		)
Other (income) expense, net	(2		)	—			—			2
Impact on income before taxes from continuing operations	(57		)	(59		)	19			106
Balance Sheet:
Assets:
Accounts Receivable	$	(33	)	$	(78	)	$	(66	)	$	—
Prepaid Expenses	(4		)	(6		)	15			—
Contract Costs	(3		)	(12		)	(1		)	—
Fixed Assets	(25		)	(38		)	(31		)	—
Impact on Total Assets	$	(65	)	$	(134	)	$	(83	)	$	—
Liabilities:
Accounts Payable	$	(11	)	$	(13	)	$	(1	)	$	—
Accrued Payroll	2			1			2			—
Accrued Expenses	(3		)	(5		)	15			—
Deferred Revenue	2			(2		)	2			—
Other Long Term Liabilities	8			7			—			—
Impact on Total Liabilities	$	(2	)	$	(12	)	$	18		$	—

The Company previously determined that the impact of the out of period adjustments recorded in fiscal 2011 and fiscal 2012 were immaterial to the consolidated results, financial position and cash flows for fiscal 2012 and prior fiscal years. The accompanying restated Consolidated Financial Statements herein incorporate these previously reported out of period adjustments in the appropriate periods relating to fiscal 2012 and prior fiscal years.

Adjustments Resulting from Restatement

In addition to the out of period adjustments described above, the restated Consolidated Financial Statements reflect the following adjustments to fiscal 2012 and prior fiscal years:

Restated Margin Assumptions

Fiscal 2009 to Fiscal 2011 NHS Profit Margin

The NHS contract has been accounted for using the percentage of completion method based on management’s estimates of total contract revenue and costs. Initially such estimates were based upon projections developed using the terms of the Second Amended and Restated Project Agreement (SARPA), which was executed in April 2009. Prior to the execution of SARPA, CSC and the NHS began to operationally diverge from the terms of the SARPA contract and the NHS re-ordered the priorities of what it wanted delivered from those contained in SARPA. Between the third quarter of fiscal 2010 and the third quarter of fiscal 2012, CSC and the NHS were engaged in negotiations to enter into a memorandum of understanding (MOU) that was to have formed the basis for the Third Amended and Restated Project Agreement (TARPA), however, the TARPA MOU was never executed. Based on the progress of these negotiations, CSC reflected the terms of the various draft TARPA MOUs in its profitability estimates for the NHS contract from the fourth quarter of fiscal 2010 to the second quarter of fiscal 2012. The staff of the SEC informed the Company that there was too much uncertainty as to the execution of the TARPA MOU at those times for CSC to rely on the terms of the various drafts of the TARPA MOUs in its estimates of profitability.

In connection with the SEC Settlement, the restatement reflects the Company's acknowledgment that there were accounting errors in fiscal 2009 - 2012 with respect to certain assumptions under the POC accounting method for the NHS contract. As part of the restatement, the Company has revised those assumptions based upon uncertainty with respect to a range of possible final outcomes under the NHS contract. As a result, the Company has revised the accounting based on the impracticality of estimating a specific level of profit during this period in order to reflect a profit margin of zero under the POC accounting rules, beginning in the first quarter of fiscal 2009. The result is that $129 million of operating income through the beginning of fiscal 2012 is no longer recognized in prior years, thereby reducing the impairment charge previously recorded in fiscal 2012 by approximately that same amount. As a result, the Company recorded the following changes to historic cost of services, thereby reducing reported operating income by the same amount, increasing cost of services by $131 million in fiscal year 2009, increasing cost of services by $35 million in fiscal year 2010, decreasing cost of services by $37 million in fiscal 2011 and decreasing cost of services by $146 million in fiscal year 2012.

Restated Impairment Charges

Fiscal 2011 Fourth Quarter NHS Contract Charge

The NHS contract has been accounted for using the percentage of completion method based on management’s estimates of total contract revenue and costs. The Company previously concluded that the TARPA MOU was probable of execution and supported the realization of the underlying contract assets until the third quarter of fiscal year 2012, at which time the Company impaired the contract related assets of $1,485 million. Further, as part of the settlement discussions, the SEC's staff advised the Company that it had concluded that the Company should have recorded the previously disclosed impairment charge related to the NHS contract in fiscal 2011 instead of fiscal 2012, and that the impairment could be quantified by applying the assumptions used in the third quarter of fiscal 2012 as to the probability of contract amendment, contract margin, and probability of asset recovery in estimating an impairment charge as of the fourth quarter of fiscal 2011. As a result of this change in the timing of the impairment, the Company recorded a $1,158 million impairment charge as of April 1, 2011, including a $132 million reduction of revenue, and reduced the impairment charge previously recognized in fiscal 2012. This charge included the write-off of its work in process inventory balance of $1,007 million, billed and unbilled receivables of $132 million and net other assets and liabilities of $19 million resulting in only immaterial remaining net NHS contract assets as of the end of fiscal 2011. In fiscal 2012, prior to the execution of an interim project agreement, the Company continued to incur expenses on the NHS contract, which it charged to expense as incurred.

Goodwill Impairment Charge

As a result of the Company restating the timing of the NHS asset impairment charge, the Company also evaluated the effect such impairment would have on its historical accounting for goodwill. Historically, during fiscal 2012, the Company concluded that fair value was below carrying value for three reporting units: GIS, GBS-Consulting and GBS IS&S. CSC therefore conducted step two of the two-step goodwill impairment test and, during fiscal 2012, originally recorded goodwill impairment charges of $2,745 million, of which $2,074 million related to the GIS reporting unit, $453 million related to the GBS-Consulting reporting unit, and $218 million related to the GBS-IS&S reporting unit.

As a result of the Company moving the NHS asset impairment charge from the third quarter of fiscal 2012 to the fourth quarter of fiscal 2011, as discussed above, the Company evaluated the impact on its historic accounting for goodwill as of the fourth quarter of fiscal 2011. The Company concluded that the NHS contract impairment would have resulted in a determination that it was more likely than not that its GIS and GBS-Consulting reporting units' respective carrying values exceeded their respective fair values as of the fourth quarter of fiscal 2011. As a result, the Company would have performed step one of the two-step impairment test for those two reporting units in the fourth fiscal quarter of 2011. After removing substantially all of the NHS contract cash flows, the Company concluded that its GIS and GBS-Consulting reporting units would have failed step one of the goodwill impairment test and thus would have been required to perform step two of the two-step goodwill impairment test in the fourth quarter of fiscal 2011. After conducting step two of its goodwill impairment test as of the fourth quarter of fiscal 2011, the Company now concludes that as a result of moving the NHS asset impairment charge, it would recognize a goodwill impairment charge in the fourth fiscal quarter of 2011 of $2,511 million, of which $2,061 million would have related to the GIS reporting unit and $450 million would have related to the GBS-Consulting reporting unit.

As discussed more fully in Note 13, the Company tested the GBS-IS&S reporting unit as of the second and third quarters fiscal 2012 and recorded a net goodwill impairment of $232 million in fiscal 2012 related to the GBS IS&S reporting unit in fiscal 2012.

As a result of the above restatement, the goodwill impairment charges recognized by year are as follows:

Fiscal 2011 Goodwill Impairment Charge
(amounts in millions)
Reporting Unit	As Reported		Correction		As Restated
GIS	$	—	$	2,061	$	2,061
GBS Consulting	—		450		450
GBS IS&S	—		—		—
Total	—		2,511		2,511

Fiscal 2012 Goodwill Impairment Charge
(amounts in millions)
Reporting Unit	As Reported		Correction			As Restated
GIS	$	2,074	$	(2,074	)	$	—
GBS Consulting	453		(453		)	—
GBS IS&S	218		14			232
Total	2,745		(2,513		)	232

The result of the restatement is to reduce net income by $2,511 million in fiscal 2011 and to increase net income in fiscal 2012 by $2,513 million.

Adjustments Relating to Changed Policies

In addition, during the first quarter of fiscal year 2015, the Company changed its accounting policy for the recognition of actuarial gains and losses for its defined benefit pension and other post-employment benefit plans. These changes have been reported through retrospective application of the new accounting methods to all periods presented herein. As a result, the accompanying financial statements, and all related footnotes have been adjusted from those previously reported to reflect this change.

Effective fiscal 2015, the Company also changed its inter-company accounting policy. Previously, inter-company transactions between segments were generally reflected as inter-company revenue. Under the new policy, inter-company transactions are now generally treated as cost offsets. The new inter-company policy has been applied retrospectively to all periods presented herein, resulting in adjustments to segment results from those previously reported.

Impact of Restatement and Adjustments on Consolidated Financial Statements

The following tables present the impact of the restatement and other adjustments on the Company’s previously issued Consolidated Financial Statements for fiscal years 2014, 2013 and 2012. The restatement has no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, of Comprehensive Income (Loss), of Cash Flows and of Changes in Equity for fiscal 2013 or fiscal 2014. Restatement adjustments for the revised margin assumptions, previously reported out of period adjustments relating to fiscal 2012 and prior years, and impairment charges are included in the “Restatement” columns below. Adjustments relating to the retrospective application resulting from the changes in the Company’s accounting policy for the recognition of actuarial gains and losses for its defined benefit pension and other post-employment benefit plans are included in the “Impact of change in accounting methods” columns below.

Consolidated Statement of Operations

	Twelve months ended March 28, 2014
(Amounts in millions, except per-share amounts)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Revenue	$	12,998		$	—		$	12,998
Costs of services	9,567			(295		)	9,272
Selling, general & administrative expenses	1,278			(58		)	1,220
Depreciation & amortization	1,018			—			1,018
Restructuring costs	76			—			76
Interest Expense	147			—			147
Interest Income	(16		)	—			(16		)
Other expense (income), net	18			—			18
Total costs and expenses	12,088			(353		)	11,735
Income from continuing operations before taxes	910			353			1,263
Taxes on income	289			94			383
Income from continuing operations, net of taxes	621			259			880
Income from discontinued operations, net of taxes	69			19			88
Net income	690			278			968
Net income attributable to noncontrolling interest, net of tax	16			5			21
Net income attributable to CSC common stockholders	$	674		$	273		$	947
Earnings per share
Basic:
Continuing operations	$	4.09		$	1.72		$	5.81
Discontinued Operations	0.47			0.13			0.60
	$	4.56		$	1.85		$	6.41
Diluted:
Continuing operations	$	4.01		$	1.69		$	5.70
Discontinued Operations	0.46			0.12			0.58
	$	4.47		$	1.81		$	6.28

	Twelve months ended March 29, 2013
(Amounts in millions, except per-share amounts)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Revenue	$	14,195		$	—		$	14,195
Costs of services	11,100			193			11,293
Selling, general & administrative expenses	1,176			21			1,197
Depreciation & amortization	1,070			—			1,070
Restructuring costs	264			—			264
Interest Expense	183			—			183
Interest Income	(22		)	—			(22		)
Other expense (income), net	(25		)	—			(25		)
Total costs and expenses	13,746			214			13,960
Income from continuing operations before taxes	449			(214		)	235
Taxes on income	(49		)	(13		)	(62		)
Income from continuing operations, net of taxes	498			(201		)	297
Income from discontinued operations, net of taxes	481			1			482
Net income	979			(200		)	779
Net income attributable to noncontrolling interest, net of tax	18			1			19
Net income attributable to CSC common stockholders	$	961		$	(201	)	$	760
Earnings per share
Basic:
Continuing operations	$	3.11		$	(1.31	)	$	1.80
Discontinued Operations	3.11			0.01			3.12
	$	6.22		$	(1.30	)	$	4.92
Diluted:
Continuing operations	$	3.09		$	(1.30	)	$	1.79
Discontinued Operations	3.09			0.01			3.10
	$	6.18		$	(1.29	)	$	4.89

	Twelve months ended March 30, 2012
(Amounts in millions, except per-share amounts)	As Previously Reported			Restatement			As Restated			Impact of change in accounting methods			As Restated and Adjusted
Revenue	$	14,476		$	197		$	14,673		$	—		$	14,673
Costs of services	12,181			97			12,278			365			12,643
Cost of services - specified contract charge	1,281			(1,281		)	—			—			—
Cost of services - settlement charges	227			—			227			—			227
Selling, general & administrative expenses	1,108			1			1,109			36			1,145
Depreciation & amortization	1,141			(2		)	1,139			—			1,139
Goodwill Impairment	2,745			(2,513		)	232			—			232
Restructuring costs	140			—			140			—			140
Interest Expense	174			(3		)	171			—			171
Interest Income	(38		)	—			(38		)	—			(38		)
Other expense (income), net	4			2			6			—			6
Total costs and expenses	18,963			(3,699		)	15,264			401			15,665
Income from continuing operations before taxes	(4,487		)	3,896			(591		)	(401		)	(992		)
Taxes on income	(96		)	(5		)	(101		)	(127		)	(228		)
Income from continuing operations, net of taxes	(4,391		)	3,901			(490		)	(274		)	(764		)
Income (loss) from discontinued operations, net of taxes	166			—			166			(4		)	162
Net (loss) income	(4,225		)	3,901			(324		)	(278		)	(602		)
Net income attributable to noncontrolling interest, net of tax	17			—			17			(3		)	14
Net (loss) attributable to CSC common stockholders	$	(4,242	)	$	3,901		$	(341	)	$	(275	)	$	(616	)
Earnings per share
Basic:
Continuing operations	$	(28.44	)	$	25.17		$	(3.27	)	$	(1.75	)	$	(5.02	)
Discontinued Operations	1.07			—			1.07			(0.02		)	1.05
	$	(27.37	)	$	25.17		$	(2.20	)	$	(1.77	)	$	(3.97	)
Diluted:
Continuing operations	$	(28.44	)	$	25.17		$	(3.27	)	$	(1.75	)	$	(5.02	)
Discontinued Operations	1.07			—			1.07			(0.02		)	1.05
	$	(27.37	)	$	25.17		$	(2.20	)	$	(1.77	)	$	(3.97	)

Impact on Consolidated Statement of Comprehensive Income

	Twelve months ended March 28, 2014
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Net income (loss)	$	690		$	278		$	968
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net	(73		)	(8		)	(81		)
Pension and other postretirement benefit plans, net of tax:
Net actuarial gain (loss), net	227			(227		)	—
Prior service credit (cost), net	265			—			265
Amortization of transition obligation, net	1			—			1
Amortization of prior service cost, net	(4		)	—			(4		)
Amortization of net actuarial gain, net	66			(66		)	—
Foreign currency exchange (loss) gain, net of tax	(8		)	10			2
Pension and other postretirement benefit plans, net of tax	547			(283		)	264
Other comprehensive income (loss), net of tax	474			(291		)	183
Comprehensive income (loss)	1,164			(13		)	1,151
Less: comprehensive income (loss) attributable to noncontrolling interest	21			9			30
Comprehensive income (loss) attributable to CSC common stockholders	$	1,143		$	(22	)	$	1,121

	Twelve months ended March 29, 2013
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Net income (loss)	$	979		$	(200	)	$	779
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net	(83		)	(9		)	(92		)
Pension and other postretirement benefit plans, net of tax:
Net actuarial gain (loss), net	(260		)	260			—
Prior service credit (cost), net	19			—			19
Amortization of transition obligation, net	1			—			1
Amortization of prior service cost, net	(1		)	1			—
Amortization of net actuarial gain, net	58			(58		)	—
Foreign currency exchange (loss) gain, net of tax	(14		)	6			(8		)
Pension and other postretirement benefit plans, net of tax	(197		)	209			12
Other comprehensive income (loss), net of tax	(280		)	200			(80		)
Comprehensive income (loss)	699			—			699
Less: comprehensive income (loss) attributable to noncontrolling interest	(1		)	20			19
Comprehensive income (loss) attributable to CSC common stockholders	$	700		$	(20	)	$	680

	Twelve months ended March 30, 2012
(Amounts in millions)	As Previously Reported			Restatement		As Restated			Impact of change in accounting methods			As Restated and Adjusted
Net loss	$	(4,225	)	$	3,901	$	(324	)	$	(278	)	$	(602	)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net	(124		)	7		(117		)	(5		)	(122		)
Pension and other postretirement benefit plans, net of tax:
Net actuarial gain (loss), net	(323		)	—		(323		)	323			—
Prior service credit (cost), net	(4		)	—		(4		)	—			(4		)
Amortization of transition obligation, net	2			—		2			—			2
Amortization of prior service cost, net	(2		)	—		(2		)	—			(2		)
Amortization of net actuarial gain, net	45			—		45			(45		)	—
Foreign currency exchange (loss) gain, net of tax	3			—		3			(5		)	(2		)
Pension and other postretirement benefit plans, net of tax	(279		)	—		(279		)	273			(6		)
Other comprehensive income (loss), net of tax	(403		)	7		(396		)	268			(128		)
Comprehensive income (loss)	(4,628		)	3,908		(720		)	(10		)	(730		)
Less: comprehensive income (loss) attributable to noncontrolling interest	17			—		17			(3		)	14
Comprehensive income (loss) attributable to CSC common stockholders	$	(4,645	)	$	3,908	$	(737	)	$	(7	)	$	(744	)

Impact on Consolidated Balance Sheets

	As of March 28, 2014
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Current assets:
Cash and cash equivalents	$	2,443		$	—		$	2,443
Receivables, net	2,759			—			2,759
Prepaid expenses and other current assets	426			—			426
Total current assets	5,628			—			5,628
Intangible and other assets:
Software, net	650			—			650
Outsourcing contract costs, net	427			—			427
Goodwill, net	1,667			—			1,667
Other assets	986			—			986
Total intangible and other assets	3,730			—			3,730
Property and equipment, net	2,031			—			2,031
Total Assets	$	11,389		$	—		$	11,389
Current liabilities:
Short-term debt and current maturities of long-term debt	$	681		$	—		$	681
Accounts payable	394			—			394
Accrued payroll and related costs	592			—			592
Accrued expenses and other current liabilities	1,094			—			1,094
Deferred revenue and advance contract payments	624			—			624
Income taxes payable and deferred income taxes	77			—			77
Total current liabilities	3,462			—			3,462
Long-term debt, net of current maturities	2,207			—			2,207
Income tax liabilities and deferred income taxes	557			—			557
Other long-term liabilities	1,219			—			1,219
Commitments and contingencies
CSC stockholders’ equity:
Preferred stock par value $1 per share	—			—			—
Common stock, par value $1 per share	155			—			155
Additional paid-in capital	2,304			—			2,304
Earnings retained for use in business	2,770			(1,178		)	1,592
Accumulated other comprehensive loss	(898		)	1,177			279
Less: common stock in treasury, at cost	(418		)	—			(418		)
Total CSC stockholders’ equity	3,913			(1		)	3,912
Noncontrolling interest in subsidiaries	31			1			32
Total Equity	3,944			—			3,944
Total Liabilities and Equity	$	11,389		$	—		$	11,389

	As of March 29, 2013
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Current assets:
Cash and cash equivalents	$	2,054		$	—		$	2,054
Receivables, net	3,199			—			3,199
Prepaid expenses and other current assets	420			—			420
Total current assets	5,673			—			5,673
Intangible and other assets:
Software, net	611			—			611
Outsourcing contract costs, net	505			—			505
Goodwill, net	1,516			—			1,516
Other assets	762			—			762
Total intangible and other assets	3,394			—			3,394
Property and equipment, net	2,184			—			2,184
Total Assets	$	11,251		$	—		$	11,251
Current liabilities:
Short-term debt and current maturities of long-term debt	$	234		$	—		$	234
Accounts payable	373			—			373
Accrued payroll and related costs	653			—			653
Accrued expenses and other current liabilities	1,425			—			1,425
Deferred revenue and advance contract payments	630			—			630
Income taxes payable and deferred income taxes	34			—			34
Total current liabilities	3,349			—			3,349
Long-term debt, net of current maturities	2,498			—			2,498
Income tax liabilities and deferred income taxes	501			—			501
Other long-term liabilities	1,743			—			1,743
Commitments and contingencies
CSC stockholders’ equity:
Preferred stock par value $1 per share	—			—			—
Common stock, par value $1 per share	159			—			159
Additional paid-in capital	2,167			—			2,167
Earnings retained for use in business	2,564			(1,463		)	1,101
Accumulated other comprehensive loss	(1,354		)	1,462			108
Less: common stock in treasury, at cost	(401		)	—			(401		)
Total CSC stockholders’ equity	3,135			(1		)	3,134
Noncontrolling interest in subsidiaries	25			1			26
Total Equity	3,160			—			3,160
Total Liabilities and Equity	$	11,251		$	—		$	11,251

Impact on Consolidated Statement of Cash Flows

	Twelve months ended March 28, 2014
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Cash flows from operating activities:
Net income (loss)	$	690		$	278		$	968
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,018			—			1,018
Pension & OPEB actuarial gain	—			(259		)	(259		)
Stock-based compensation	73			—			73
Deferred taxes	75			94			169
(Gain) loss on dispositions	(73		)	(12		)	(85		)
Provision for losses on accounts receivable	4			—			4
Excess tax benefit from stock based compensation	(8		)	—			(8		)
Unrealized foreign currency exchange gain	(29		)	—			(29		)
Impairment losses and contract write-offs	3			—			3
Cash surrender value in excess of premiums paid	(8		)	—			(8		)
Other non-cash charges, net	55			—			55
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in receivables	168			—			168
(Increase) decrease in prepaid expenses and other current assets	(40		)	—			(40		)
Decrease in accounts payable and accrued expenses	(449		)	(100		)	(549		)
Increase (decrease) in income taxes payable and income tax liability	112			7			119
Increase (decrease) in advanced contract payments and deferred revenue	2			—			2
Other operating activities, net	(33		)	(8		)	(41		)
Net cash provided by operating activities	1,560			—			1,560
Cash flows from investing activities:
Purchases of property and equipment	(420		)	—			(420		)
Payments for outsourcing contract costs	(71		)	—			(71		)
Payments for acquisitions, net of cash acquired	(190		)	—			(190		)
Proceeds from business dispositions	248			—			248
Software purchased and developed	(197		)	—			(197		)
Proceeds from sale of property and equipment	38			—			38
Other investing activities, net	26			—			26
Net cash (used in) provided by investing activities	(566		)	—			(566		)
Cash flows from financing activities:
Borrowings under lines of credit and short-term debt	439			—			439
Principal payments on long-term debt	(492		)	—			(492		)
Proceeds from stock options and other common stock transactions	214			—			214
Excess tax benefit from stock based compensation	8			—			8
Repurchase of common stock and acquisition of treasury stock	(521		)	—			(521		)
Dividend payments	(119		)	—			(119		)
Payment of contingent consideration	(98		)	—			(98		)
Other financing activities, net	(30		)	—			(30		)
Net cash used in financing activities	(599		)	—			(599		)
Effect of exchange rate changes on cash and cash equivalents	(6		)	—			(6		)
Net increase (decrease) in cash and cash equivalents	389			—			389
Cash and cash equivalents at beginning of year	2,054			—			2,054
Cash and cash equivalents at end of year	$	2,443		$	—		$	2,443

	Twelve months ended March 29, 2013
(Amounts in millions)	As Previously Reported			Impact of change in accounting methods			As Adjusted
Cash flows from operating activities:
Net income (loss)	$	979		$	(200	)	$	779
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,070			—			1,070
Pension & OPEB actuarial loss	—			297			297
Stock-based compensation	49			—			49
Deferred taxes	112			(13		)	99
(Gain) loss on dispositions	(797		)	—			(797		)
Provision for losses on accounts receivable	18			—			18
Excess tax benefit from stock based compensation	(3		)	—			(3		)
Unrealized foreign currency exchange gain	(37		)	—			(37		)
Impairment losses and contract write-offs	9			—			9
Cash surrender value in excess of premiums paid	(10		)	—			(10		)
Other non-cash charges, net	64			—			64
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in receivables	55			—			55
(Increase) decrease in prepaid expenses and other current assets	22			—			22
Decrease in accounts payable and accrued expenses	(690		)	(76		)	(766		)
Increase (decrease) in income taxes payable and income tax liability	39			1			40
Increase (decrease) in advanced contract payments and deferred revenue	270			—			270
Other operating activities, net	(31		)	(9		)	(40		)
Net cash provided by operating activities	1,119			—			1,119
Cash flows from investing activities:
Purchases of property and equipment	(395		)	—			(395		)
Payments for outsourcing contract costs	(115		)	—			(115		)
Payments for acquisitions, net of cash acquired	(34		)	—			(34		)
Proceeds from business dispositions	1,108			—			1,108
Software purchased and developed	(162		)	—			(162		)
Proceeds from sale of property and equipment	32			—			32
Other investing activities, net	22			—			22
Net cash (used in) provided by investing activities	456			—			456
Cash flows from financing activities:
Borrowings under lines of credit and short-term debt	128			—			128
Repayment of borrowings under lines of credit	(169		)	—			(169		)
Borrowing on long-term debt, net of discount	1,077			—			1,077
Principal payments on long-term debt	(1,238		)	—			(1,238		)
Proceeds from stock options and other common stock transactions	55			—			55
Excess tax benefit from stock based compensation	3			—			3
Repurchase of common stock and acquisition of treasury stock	(283		)	—			(283		)
Dividend payments	(124		)	—			(124		)
Other financing activities, net	(38		)	—			(38		)
Net cash used in financing activities	(589		)	—			(589		)
Effect of exchange rate changes on cash and cash equivalents	(25		)	—			(25		)
Net increase (decrease) in cash and cash equivalents	961			—			961
Cash and cash equivalents at beginning of year	1,093			—			1,093
Cash and cash equivalents at end of year	$	2,054		$	—		$	2,054

	Twelve months ended March 30, 2012
(Amounts in millions)	As Previously Reported			Restatement			As Restated			Impact of change in accounting methods			As Restated and Adjusted
Cash flows from operating activities:
Net income (loss)	$	(4,225	)	$	3,901		$	(324	)	$	(278	)	$	(602	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,141			(2		)	1,139			—			1,139
Pension & OPEB actuarial loss	—			—			—			479			479
Goodwill impairment	2,745			(2,513		)	232			—			232
Specified contract charge	1,485			(1,485		)	—			—			—
Settlement charge	269			—			269			—			269
Stock-based compensation	36			—			36			—			36
Deferred taxes	(116		)	(8		)	(124		)	(127		)	(251		)
(Gain) loss on dispositions	30			—			30			—			30
Provision for losses on accounts receivable	18			—			18			—			18
Excess tax benefit from stock based compensation	(2		)	—			(2		)	—			(2		)
Unrealized foreign currency exchange gain	(8		)	—			(8		)	—			(8		)
Impairment losses and contract write-offs	156			—			156			—			156
Cash surrender value in excess of premiums paid	(7		)	—			(7		)	—			(7		)
Other non-cash charges, net	71			(20		)	51			—			51
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in receivables	232			8			240			—			240
(Increase) decrease in prepaid expenses and other current assets	(210		)	115			(95		)	—			(95		)
Decrease in accounts payable and accrued expenses	(67		)	(17		)	(84		)	(74		)	(158		)
Increase (decrease) in income taxes payable and income tax liability	(137		)	6			(131		)	(2		)	(133		)
Increase (decrease) in advanced contract payments and deferred revenue	(247		)	24			(223		)	—			(223		)
Other operating activities, net	12			(9		)	3			2			5
Net cash provided by operating activities	1,176			—			1,176			—			1,176
Cash flows from investing activities:
Purchases of property and equipment	(569		)	—			(569		)	—			(569		)
Payments for outsourcing contract costs	(179		)	—			(179		)	—			(179		)
Payments for acquisitions, net of cash acquired	(374		)	—			(374		)	—			(374		)
Proceeds from business dispositions	2			—			2			—			2
Software purchased and developed	(227		)	—			(227		)	—			(227		)
Proceeds from sale of property and equipment	11			—			11			—			11
Other investing activities, net	28			—			28			—			28
Net cash (used in) provided by investing activities	(1,308		)	—			(1,308		)	—			(1,308		)
Cash flows from financing activities:
Borrowings under lines of credit and short-term debt	140			—			140			—			140
Repayment of borrowings under lines of credit	(120		)	—			(120		)	—			(120		)
Principal payments on long-term debt	(485		)	—			(485		)	—			(485		)
Proceeds from stock options and other common stock transactions	15			—			15			—			15
Excess tax benefit from stock based compensation	2			—			2			—			2
Dividend payments	(124		)	—			(124		)	—			(124		)
Payment of contingent consideration	—			—			—			—			—
Other financing activities, net	(9		)	—			(9		)	—			(9		)
Net cash used in financing activities	(581		)	—			(581		)	—			(581		)
Effect of exchange rate changes on cash and cash equivalents	(31		)	—			(31		)	—			(31		)
Net increase (decrease) in cash and cash equivalents	(744		)	—			(744		)	—			(744		)
Cash and cash equivalents at beginning of year	1,837			—			1,837			—			1,837
Cash and cash equivalents at end of year	$	1,093		$	—		$	1,093		$	—		$	1,093

Out of Period Adjustments

Summary of Audit Committee and SEC Investigations Related to the Out of Period Adjustments

As previously disclosed, on January 28, 2011, the Company was notified by the Division of Enforcement of the SEC that it had commenced a formal civil investigation. That investigation covered a range of matters as previously disclosed by the Company, including certain of the Company’s prior disclosures and accounting determinations. On May 2, 2011, the Audit Committee commenced an independent investigation. The Audit Committee retained independent counsel to represent the Company on behalf of, and under the exclusive direction of, the Audit Committee in connection with such independent investigation. Independent counsel retained forensic accountants and disclosure experts to assist with their work. The Audit Committee determined in August 2012 that its independent investigation was complete. The Audit Committee instructed its independent counsel to cooperate with the SEC's Division of Enforcement by completing production of documents and providing any further information requested by the SEC's Division of Enforcement.

As a result of findings by the Audit Committee’s independent investigation, the Company has previously acknowledged certain historic errors and irregularities relating to accounting entries arising from the Nordics region, Australia, and the Company’s contractual relationship with the NHS, self-reported these errors and irregularities to the SEC’s Division of Enforcement, and made out of period adjustments to its financial statements that are related to prior periods as reported in its past filings. In addition, as previously disclosed, certain personnel in certain foreign operations were reprimanded, suspended, terminated and/or resigned and additional controls were implemented. Based on recommendations from the Audit Committee’s independent investigation and discussions with the SEC's staff concerning the SEC's investigation, the Company also instituted comprehensive enhancements beginning in 2011 to its compliance, financial and disclosure controls, and to the function of internal audit. In doing so, the Company made significant changes to prevent the type of misconduct identified by the Audit Committee’s independent investigation from recurring.  For additional information relating to the NHS contract, see Note 23.

The Company participated in discussions with the SEC’s staff concerning a resolution of the SEC’s investigation. Many of those discussions concerned the Company’s prior use in fiscal 2009-2012 of the terms of ongoing NHS contract negotiations in developing its assumptions and judgments with respect to the margin used in recognizing profit under the POC accounting method and in evaluating the recoverability of NHS contract assets as well as the Company’s prior disclosures concerning such matters.

On June 5, 2015, the Company reached a settlement with the staff of the SEC (the SEC Settlement) of an administrative enforcement action alleging violations of the anti-fraud, reporting, books-and-records and internal controls provisions of the U.S. securities laws. The Company has neither admitted nor denied the allegations, but has agreed to cease-and-desist from committing or causing any violations or future violations of those provisions.

Pursuant to the SEC Settlement, the Company is restating its accompanying financial statements for fiscal 2012. The restatement has no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, of Comprehensive Income (Loss), of Cash Flows and of Changes in Equity for fiscal 2013 or fiscal 2014.

The restatement reflects the Company's acknowledgment that there were accounting errors in fiscal 2009-2012 with respect to certain assumptions under the POC accounting method for the NHS contract. As part of the restatement, the Company has revised those assumptions based upon uncertainty with respect to a range of possible final outcomes under the NHS contract. As a result, the Company has revised the accounting based on the impracticality of estimating a specific level of profit during this period in order to reflect a profit margin of zero under the POC accounting rules, beginning in the first quarter of fiscal 2009. The result is that $129 million of operating income through the beginning of fiscal 2012 is no longer recognized in prior years, thereby reducing the impairment charge previously recorded in fiscal 2012 by approximately that same amount. As a result, the Company recorded the following changes to historic cost of services, thereby reducing reported operating income by the same amount, increasing cost of services by $131 million in fiscal year 2009, increasing cost of services by $35 million in fiscal year 2010, decreasing cost of services by $37 million in fiscal 2011 and decreasing cost of services by $146 million in fiscal year 2012.

Further, as part of the settlement discussions, the SEC’s staff advised the Company that it had concluded that the Company should have recorded the previously disclosed impairment charge related to the NHS contract in fiscal 2011 instead of fiscal 2012. The Company’s restatement accordingly reflects an impairment charge of $1,158 million in fiscal 2011, with a corresponding reduction in the impairment charge previously recognized in fiscal 2012. Due to the change in timing of the impairment on the NHS contract, the Company also moved $2,511 million of the previously reported fiscal 2012 goodwill impairment charge of approximately $2,745 million to fiscal 2011. All of which resulted in a reduction in retained earnings as of the beginning of fiscal 2012.

The result of the restatement is to increase net income and diluted EPS in fiscal 2012 by $3,901 million and $25.17, respectively, from amounts previously reported.

As part of the terms of the SEC Settlement, the Company agreed to pay a penalty of $190 million and agreed to implement a review of its compliance policies through an independent compliance consultant. The Company recorded a pre-tax charge of approximately $197 million for the penalty and related expenses in fiscal 2015.

Out of Period Adjustments Financial Impact Summary

Cumulative Impact of Out of Period Adjustments

The rollover impact on income (loss) from continuing operations before taxes of the recorded out of period adjustments in fiscal 2014 and 2013 is attributable to the following prior fiscal years:

	Increase/(Decrease)
(Amounts in millions)	Fiscal 2013 Adjustments			Fiscal 2014 Adjustments			Total Adjustments
Fiscal 2014	$	—		$	(2	)	$	(2	)
Fiscal 2013	6			4			10
Fiscal 2012	(16		)	(6		)	(22		)
Prior fiscal years (unaudited)	10			4			14

See Note 21 for a summary of the effect of the pre-tax out of period adjustments on the Company's segment results for fiscal 2014, 2013 and 2012.

Fiscal 2014 Adjustments Financial Impact Summary

During fiscal 2014, the Company identified and recorded net adjustments increasing income from continuing operations before taxes by $2 million that should have been recorded in prior fiscal years. This net impact on income from continuing operations before taxes for fiscal 2014 is comprised of the following:

• net adjustments decreasing fourth quarter pre-tax income by $1 million primarily resulting from the recognition of impairment charges on abandoned capitalized software costs;

• net adjustments increasing third quarter pre-tax income by $5 million primarily resulting from the recognition of revenue on previously delivered software products and services and previously delivered outsourcing services, offset by charges to cost of services (COS) relating to previously delivered software productions and services and a margin correction on long-term contracts accounted for under the percentage-of-completion revenue method;

• net adjustments decreasing second quarter pre-tax income by $11 million primarily resulting from the reversal of revenue due to deferral of revenue for undelivered elements on software contracts lacking vendor specific objective evidence and margin corrections on contracts under percentage of completion accounting, a charge to COS for reversal of previously deferred costs and a charge to selling, general and administrative (SG&A) expense reversing excess capitalization associated with internal systems development; and

• net adjustments increasing first quarter pre-tax income by $9 million primarily resulting from the corrections of revenues and costs in its GBS segment, correction of payroll expenses within its GBS segment, corrections to record adjustments that were identified late in the close process but not included in the Company's consolidated fiscal 2013 financial statements.

Adjustments recorded during fiscal 2014 that should have been recorded in prior fiscal years decreased net income attributable to CSC common shareholders by $18 million. This decrease is attributable to the tax effect of the adjustments described above, a net $8 million of tax expense resulting from discrete tax items that should have been recorded in prior fiscal years and the effect of income from discontinued operations, net of tax of $2 million. The discrete tax expenses are primarily attributable to a $10 million increase in liabilities for uncertain tax positions associated with a tax restructuring of one of the Company's operating subsidiaries and to the tax effect of the net pre-tax adjustments.

The following table summarizes the cumulative effect on net income attributable to CSC common shareholders of the consolidated out of period adjustments recorded during fiscal 2014 under the rollover method. The amounts noted below also include certain adjustments that only impacted quarters (unaudited) within fiscal 2014, but had no net impact on the full year fiscal 2014 results:

	Fiscal 2014
	Quarter Ended
(Amounts in millions)	June 28, 2013			September 27, 2013			December 27, 2013			March 28, 2014			Total
Other adjustments	$	(21	)	$	32		$	(12	)	$	(1	)	$	(2	)
Effect on income from continuing operations before taxes	(21		)	32			(12		)	(1		)	(2		)
Taxes on income	14			(4		)	—			—			10
Other income tax adjustments	2			9			5			(8		)	8
Effect on income from discontinued operations, net of taxes	—			—			(1		)	3			2
Effect on net income attributable to CSC common shareholders	$	(5	)	$	37		$	(8	)	$	(6	)	$	18

Out of period adjustments recorded in fiscal 2014 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended March 28, 2014 under the rollover method:

	Twelve Months Ended March 28, 2014
(Amounts in millions, except per-share amounts)	As Adjusted		Adjustments Increase/ (Decrease)			Amount Adjusted for Removal of Errors
Revenues	$	12,998	$	21		$	13,019
Costs of services (excludes depreciation and amortization and restructuring costs)	9,272		23			9,295
Depreciation and amortization	1,018		(2		)	1,016
Restructuring costs	76		2			78
Income from continuing operations before taxes	1,263		(2		)	1,261
Taxes on income	383		(18		)	365
Income from continuing operations	880		16			896
Income from discontinued operations, net of taxes	88		2			90
Net income attributable to CSC common shareholders	947		18			965
EPS – Diluted
Continuing operations	$	5.70	$	0.11		$	5.81
Discontinued operations	0.58		0.01			0.59
Total	$	6.28	$	0.12		$	6.40

The out of period adjustments affecting income from continuing operations before taxes during the twelve months ended March 28, 2014 under the rollover method are related to the following Consolidated Balance Sheet line items:

• Accounts receivable ($1 milliondecrease);

• Prepaid expenses and other current assets ($1 millionincrease);

• Software ($2 milliondecrease);

• Other assets ($1 milliondecrease);

• Property and equipment ($1 milliondecrease);

• Accrued payroll and related costs ($8 milliondecrease);

• Accrued expenses and other current liabilities ($18 milliondecrease); and

• Deferred revenue ($20 millionincrease).

The Company has determined that the impact of the consolidated out of period adjustments recorded in fiscal 2014 is immaterial to the consolidated results, financial position and cash flows for fiscal 2014 and prior years. Consequently, the cumulative effect of these adjustments was recorded during fiscal 2014.

Fiscal 2013 Adjustments Financial Impact Summary

During fiscal 2013, the Company identified and recorded net adjustments decreasing income from continuing operations before taxes by $6 million that should have been recorded in prior fiscal years. This net impact on income from continuing operations before taxes for fiscal 2013 is comprised of the following:

• net adjustments decreasing fourth quarter pre-tax income by $9 million resulting primarily from the correction of inappropriately capitalized operating costs originating from the Company's GIS segment, a software revenue recognition correction originating from the Company's GBS segment and the correction of understated payroll and related expenses at Corporate;

• net adjustments decreasing third quarter pre-tax income by $1 million primarily resulting from the correction of useful lives of property and equipment in service at a GIS contract that were inconsistent with established CSC accounting conventions;

• net adjustments increasing second quarter pre-tax income by $5 million primarily resulting from the correction of accounting errors identified by the Company related to costs incurred under the NHS contract (see below for more discussion of out of period adjustments related to the Company's NHS contract); and

• net adjustments decreasing first quarter pre-tax income by $1 million primarily resulting from the corrections of fiscal 2012 revenue recognized on a software contract in the Company's GBS segment, corrections of fiscal 2012 restructuring cost accruals originating primarily from the Company's GBS and GIS segments and corrections to record adjustments that were identified late in the close process but not included in the Company's consolidated fiscal 2012 financial statements

Adjustments recorded during fiscal 2013 that should have been recorded in prior fiscal years increased net income attributable to CSC common shareholders by $7 million. This increase is attributable to the tax effect of the adjustments described above and $5 million of tax benefit resulting from discrete tax items that should have been recorded in prior fiscal years. The discrete tax benefits are primarily attributable to the adjustment of the deferred tax liability related to intellectual property assets.

Further adjustments were identified and recorded in fiscal 2014 related to fiscal 2013 that increased the net error reported by $4 million.

The following table summarizes the cumulative effect on the fiscal 2013 net income attributable to CSC common shareholders of the consolidated out of period adjustments recorded during fiscal 2014 and 2013 under the rollover method. The amounts noted below also include certain adjustments that only impacted quarters (unaudited) within fiscal 2013, but had no net impact on the full year fiscal 2013 results:

	Fiscal 2013
	Quarter Ended
(Amounts in millions)	June 29, 2012			September 28, 2012			December 28, 2012			March 29, 2013			Total
Other adjustments	3			—			—			7			10
Effect on income from continuing operations before taxes	3			—			—			7			10
Taxes on income	(2		)	(2		)	(4		)	(7		)	(15		)
Other income tax adjustments	(2		)	—			(1		)	(12		)	(15		)
Effect on income from discontinued operations, net of taxes	—			—			(28		)	26			(2		)
Effect on net income attributable to CSC common shareholders	$	(1	)	$	(2	)	$	(33	)	$	14		$	(22	)

Out of period adjustments recorded during fiscal 2014 and 2013 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended March 29, 2013 under the rollover method:

	Twelve Months Ended March 29, 2013
(Amounts in millions, except per-share amounts)	As Adjusted			Adjustments Increase/ (Decrease)			Amount Adjusted for Removal of Errors
Revenues	$	14,195		$	(2	)	$	14,193
Costs of services (excludes depreciation and amortization and restructuring costs)	11,293			(13		)	11,280
Depreciation and amortization	1,070			(2		)	1,068
Restructuring costs	264			3			267
Income from continuing operations before taxes	235			10			245
Taxes on income	(62		)	30			(32		)
Income from continuing operations	297			(20		)	277
Income from discontinued operations, net of taxes	482			(2		)	480
Net income attributable to CSC common shareholders	760			(22		)	738
EPS – Diluted
Continuing operations	$	1.79		$	(0.13	)	$	1.66
Discontinued operations	3.10			(0.01		)	3.09
Total	$	4.89		$	(0.14	)	$	4.75

The out of period adjustments affecting loss from continuing operations before taxes during the twelve months ended March 29, 2013 under the rollover method are related to the following Consolidated Balance Sheet line items:

• Prepaid expenses and other current assets ($14 millionincrease);

• Software ($1 millionincrease);

• Outsourcing contract costs ($1 milliondecrease);

• Other assets ($5 milliondecrease);

• Property and equipment ($4 milliondecrease);

• Accrued payroll and related costs ($9 millionincrease);

• Accrued expenses and other current liabilities ($9 millionincrease); and

• Deferred revenue ($3 milliondecrease).

The Company has determined that the impact of the consolidated out of period adjustments recorded in fiscal 2014 and 2013 is immaterial to the consolidated results, financial position and cash flows for fiscal 2013 and prior years. Consequently, the cumulative effect of these adjustments was recorded during fiscal 2014 and 2013.

Fiscal 2012 Adjustments Financial Impact Summary

Adjustments were identified and recorded in fiscal 2014 and 2013 related to fiscal 2012 that decreased the net error by $6 million and $16 million, respectively.

The following table summarizes the cumulative effect on the fiscal 2012 net loss attributable to CSC common shareholders of the consolidated out of period adjustments recorded during fiscal 2014 and 2013 under the rollover method:

	Fiscal 2012
	Quarter Ended
(Amounts in millions)	July 1, 2011			September 30, 2011			December 30, 2011			March 30, 2012			Total
NPS adjustments	—			—			—			(6		)	(6		)
Other adjustments	(2		)	(4		)	(9		)	(1		)	(16		)
Effect on income (loss) from continuing operations before taxes	(2		)	(4		)	(9		)	(7		)	(22		)
Taxes on income	—			—			—			4			4
Other income tax adjustments	—			—			—			—			—
Effect on net income (loss) attributable to CSC common shareholders	$	(2	)	$	(4	)	$	(9	)	$	(3	)	$	(18	)

Out of period adjustments recorded during fiscal 2014 and 2013 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended March 30, 2012 under the rollover method:

	Twelve Months Ended March 30, 2012
(Amounts in millions, except per-share amounts)	As Restated and Adjusted			Adjustments Increase/ (Decrease)			Amount Adjusted for Removal of Errors
Revenues	$	14,673		$	(18	)	$	14,655
Costs of services (excludes depreciation and amortization, specified contract charge, settlement charge and restructuring costs)	12,643			7			12,650
Selling, general and administrative	1,145			1			1,146
Depreciation and amortization	1,139			1			1,140
Restructuring costs	140			(5		)	135
Loss from continuing operations before taxes	(992		)	(22		)	(1,014		)
Taxes on income	(228		)	(4		)	(232		)
Loss from continuing operations	(764		)	(18		)	(782		)
Net loss attributable to CSC common shareholders	(616		)	(18		)	(634		)
EPS – Diluted
Continuing operations	$	(5.02	)	$	(0.12	)	$	(5.14	)
Total	$	(3.97	)	$	(0.12	)	$	(4.09	)

The Company has determined that the impact of the consolidated out of period adjustments recorded in fiscal 2014 and 2013 is immaterial to the consolidated results, financial position and cash flows for fiscal 2012 and prior years. Consequently, the cumulative effect of these adjustments was recorded during fiscal 2014 and 2013.

The accompanying restated Consolidated Financial Statements incorporate previously reported out of period adjustments relating to fiscal 2012 and prior years. See Note 2 for additional information.