Segment Information

6 Months Ended

Oct. 02, 2015

Segment Information [Abstract]

Segment Information

Segment Information

The Company’s reportable segments are as follows:

• Global Business Services (GBS) - GBS provides end-to-end applications services; consulting; big data services; and industry-aligned software and solutions to enterprise clients around the world. GBS manages and industrializes clients' application ecosystem through its Applications Services offering. The Company has formed a number of strategic partnerships with leading technology companies such as HCL Technologies and SAP to deliver world-class solutions to its customers. These partnerships will enable clients to modernize and move enterprise workloads to next generation cloud infrastructure, while leveraging the benefits of mobility, social networking and big data. The GBS consulting business assists clients in achieving greater value from current IT assets as well as aiding in the direction of future IT investments. GBS software and solutions include vertically-aligned solutions and process-based intellectual property. Clients include major global enterprises in the insurance, banking, healthcare, life sciences, manufacturing and a host of diversified industries. Key competitive differentiators for GBS include its global scale, depth of industry expertise, strong partnerships with leading technology companies, vendor and product independence and end-to-end capabilities. Changing business issues such as globalization, fast-developing economies, government regulation, and growing concerns around risk, security, and compliance drive demand for these GBS offerings.

• Global Infrastructure Services (GIS) – GIS provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cloud services, cyber security, compute and managed storage solutions to commercial clients globally. GIS also delivers next-generation hybrid Cloud infrastructure solutions to clients. The company integrates public cloud offerings from Amazon Web Services, IBM, Microsoft, and VMware, with its industry-leading private cloud solution, BizCloud. The CSC Agility Platform enables enterprises to manage, monitor, and automate applications over heterogeneous and hybrid clouds. The GIS portfolio of standard offerings delivers measurable results while reducing business risk and operational costs for clients. Collaboration with key alliance partners helps CSC to determine the best technology road map for clients and opportunities to differentiate solutions, expand market reach, augment capabilities, and jointly deliver impactful solutions.

• North American Public Sector (NPS) – NPS delivers IT, mission, and operations-related services to the Department of Defense and civil agencies of the U.S. federal government, as well as state and local government agencies. Commensurate with the Company's strategy of leading the next generation of IT services, NPS is leveraging our commercial best practices and next-generation offerings to bring more cost-effective IT solutions to government agencies which are seeking efficiency through innovation. This approach is designed to yield lower implementation and operational costs as well as a higher standard of delivery excellence. Demand for NPS offerings are driven by evolving government priorities such as: 1) migration to next-generation IT solutions, which includes hybrid cloud infrastructure, application modernization and orchestration, 2) mission intelligence driven by big data solutions, 3) health IT and informatics, 4) cyber security and 5) mobility.

The following table summarizes operating results by reportable segment:

(Amounts in millions)	GBS		GIS		NPS		Corporate			Total
Quarter ended October 2, 2015
Revenues	$	891	$	854	$	967	$	—		$	2,712
Operating income	101		64		160		(17		)	308
Depreciation and amortization	30		128		35		10			203
Quarter ended October 3, 2014
Revenues	$	1,003	$	1,036	$	1,041	$	—		$	3,080
Operating income (loss)	130		68		160		(9		)	349
Depreciation and amortization	40		172		36		4			252

(Amounts in millions)	GBS		GIS		NPS		Corporate			Total
Six months ended October 2, 2015
Revenues	$	1,810	$	1,739	$	1,924	$	—		$	5,473
Operating income (loss)	198		117		296		(5		)	606
Depreciation and amortization	60		263		68		19			410
Six months ended October 3, 2014
Revenues	$	2,091	$	2,167	$	2,059	$	—		$	6,317
Operating income (loss)	238		139		311		(35		)	653
Depreciation and amortization	79		366		71		8			524

Operating income 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						Six Months Ended
(Amounts in millions)	October 2, 2015			October 3, 2014			October 2, 2015			October 3, 2014
Operating income	$	308		$	349		$	606		$	653
Corporate G&A	(61		)	(67		)	(115		)	(123		)
Pension & OPEB actuarial & settlement losses	—			—			—			(1		)
Separation and merger costs	(46		)	—			(64		)	—
Interest expense	(35		)	(36		)	(70		)	(75		)
Interest income	7			5			18			10
Other income (expense), net	3			(6		)	29			(5		)
Income from continuing operations before taxes	$	176		$	245		$	404		$	459