Divestitures (Tables)

9 Months Ended

Jan. 01, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Divestitures

A summary of the results of the discontinued operations is presented below:

	Quarter Ended					Nine Months Ended
	January 1, 2016		January 2, 2015			January 1, 2016		January 2, 2015
Operations
Revenue	$	580	$	998		$	2,504	$	3,067
Income (loss) from discontinued operations, before taxes	44		(32		)	329		273
Income tax expense	14		87			113		175
Net income (loss) from discontinued operations	$	30	$	(119	)	$	216	$	98
Disposal
Gain (loss) on disposition, before taxes	$	—	$	—		$	—	$	(21	)
Tax expense (benefit)	—		—			—		(3		)
Gain (loss) on disposition, net of taxes	$	—	$	—		$	—	$	(18	)
Income (loss) from discontinued operations, net of taxes	$	30	$	(119	)	$	216	$	80

The following is a summary of the operating results of CSRA (with fiscal 2016 results presented through the Separation date of November 27, 2015) which have been reflected as discontinued operations for the quarters and nine months ended January 1, 2016 and January 2, 2015.

	Quarter Ended						Nine Months Ended
(Amounts in millions)	January 1, 2016(1)			January 2, 2015			January 1, 2016(1)			January 2, 2015
Revenues	$	580		$	998		$	2,504		$	3,057
Costs of services	(446		)	(958		)	(1,935		)	(2,560		)
Selling, general and administrative	(15		)	(34		)	(52		)	(92		)
Depreciation and amortization	(23		)	(33		)	(90		)	(104		)
Restructuring costs	—			—			(1		)	—
Separation and merger costs	(47		)	—			(103		)	—
Interest expense	(4		)	(5		)	(15		)	(16		)
Other (income) expense, net	(1		)	—			21			(1		)
Total income (loss) from discontinued operations before income taxes	44			(32		)	329			284
Income tax expense	(14		)	(87		)	(113		)	(175		)
Total income (loss) from discontinued operations	$	30		$	(119	)	$	216		$	109

⁽¹⁾ Results for the quarter and nine months ended January 1, 2016 reflect operating results through November 27, 2015, not the full quarter and nine months as shown for the prior year periods.

The following is a summary of the assets and liabilities distributed as part of the Separation of CSRA on November 27, 2015:

(Amounts in millions)
Assets:
Cash and cash equivalents	$	1,440
Receivables, net	470
Prepaid expenses and other current assets	83
Property and equipment, net	472
Software, net	39
Goodwill, net	826
Other assets	185
Total assets	$	3,515
Liabilities:
Short-term debt and current maturities of long-term debt	$	71
Accounts payable	45
Accrued payroll and related costs	109
Accrued expenses and other current liabilities	300
Deferred revenue and advance contract payments	137
Long-term debt, net of current maturities	1,631
Other long-term liabilities	555
Total liabilities	$	2,848
Net assets distributed	$	667

The following is a summary of the assets and liabilities of CSRA that have been classified as held for disposition as of April 3, 2015:

(Amounts in millions)	April 3, 2015
Cash and cash equivalents	$	22
Receivables, net	691
Prepaid expenses and other current assets	93
Property and equipment, net	473
Software, net	33
Goodwill, net	833
Other assets	140
Total assets of the disposal group	$	2,285

(Amounts in millions)	April 3, 2015
Short-term debt and current maturities of long-term debt	$	21
Accounts payable	128
Accrued payroll and related costs	90
Accrued expenses and other current liabilities	291
Deferred revenue and advance contract payments	161
Long-term debt, net of current maturities	130
Other long-term liabilities	624
Total liabilities of the disposal group	$	1,445

The following selected financial information of CSRA is included in the Consolidated Condensed Statements of Cash flows:

	Nine Months Ended
(Amounts in millions)	January 1, 2016			January 2, 2015
Depreciation	$	76		$	86
Amortization	15			18
Capital expenditures	(75		)	(44		)
Significant operating non-cash items:
Net gain on disposition of business	22			1
Significant investing non-cash items:
Capital expenditures in accounts payable	(7		)	(8		)
Disposition of assets	(10		)	(1		)