Consolidated Variable Interest Entities

9 Months Ended

Jan. 01, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

On November 2, 2015, CSC and HCL Technologies Ltd. (HCL) entered into partnership related to CeleritiFinTech Limited and CeleritiFinTech Services Limited. The subsidiaries were formed to operate and further invest in and expand banking products with the combined objective to promote and generate revenues from banking and other customers. The subsidiaries are structured as private limited companies, incorporated in the United Kingdom. CSC holds a 49% membership interest in CeleritiFinTech and a 51% membership interest in CeleritiFinTech Services.

During the quarter and nine months ended January 1, 2016, no material operations were conducted within these entities. As agreed in the formation agreement, during the quarter ended January 1, 2016 HCL contributed its first tranche of $6 million of capital contribution to these entities. The Company issued software licenses to these newly formed entities. These software licenses grant a perpetual right of use and require no royalty payments; the valuation reflects CSC’s current carrying value which will be amortized over three years. Our consolidated balance sheets included the following balances of these entities, as of January 1, 2016:



(Amounts in millions)	As of January 1, 2016
Cash and cash equivalents	$	6
Software	10
Total Assets	$	16

Equity attributable to noncontrolling interest	$	6
Equity attributable to the Company	10
Total Equity	$	16

As of January 1, 2016, no assets have been pledged by the Company as collateral and there is no other exposure for the Company towards loss due to its involvement with CeleritiFinTech Limited and CeleritiFinTech Services Limited.

The Company determined that it is the primary beneficiary of these entities for accounting purposes.