Segment and Geographic Information

12 Months Ended

Apr. 01, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Due to the separation of CSRA, on November 27, 2015, NPS is no longer included as a reportable segment and its results have been reclassified to discontinued operations, net of taxes, for all periods presented. CSC now operates in two reportable segments, as follows:

• Global Business Services (GBS) - GBS provides innovative technology solutions including consulting, applications services, and software, which address key business challenges within the customer’s industry. GBS strives to help clients understand and exploit industry trends of IT modernization and virtualization of the IT portfolio (hardware, software, networking, storage and computing assets). GBS has four primary growth areas: end-to-end applications services, consulting services, big data services, and industry aligned next-generation software and solutions. Applications services optimize and modernize clients' business and technical environments, enabling clients to capitalize on emerging services such as cloud, mobility, and big data within new commercial models such as the "as a Service" and digital economies. The consulting services business helps organizations innovate, transform, and create sustainable competitive advantage through a combination of industry, business process, technology, systems integration and change management expertise. The industry aligned next-generation software and solutions growth is focused in the insurance, banking, healthcare and life sciences, manufacturing and other diversified industries. Activities are primarily related to vertical alignment of software solutions and process-based intellectual property that power mission-critical transaction engines. Key competitive differentiators for GBS include its global scale, solution objectivity, depth of industry expertise, strong partnerships, vendor and product independence and end-to-end solutions and 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, cyber security, compute and managed storage solutions to commercial clients globally. GIS also delivers CSC's next-generation cloud offerings, including Infrastructure as a Service (IaaS), private cloud solutions, CloudMail and Storage as a Service. GIS provides a portfolio of standard offerings that have predictable outcomes and measurable results while reducing business risk and operational costs for clients. To provide clients with differentiated offerings, GIS maintains a select number of key alliance partners to make investments in developing unique offerings and go-to-market strategies. This collaboration helps CSC determine the best technology, road map and opportunities to differentiate solutions, expand market reach, augment capabilities, and jointly deliver impactful solutions. GIS seeks to capitalize on the emerging market trend with a rebundled IT portfolio of virtualized infrastructure.

The following table summarizes the operating results by reportable segment:

Twelve Months Ended
(Amounts in millions)	GBS		GIS		Corporate			Total
April 1, 2016
Revenues	$	3,637	$	3,469	$	—		$	7,106
Operating income (loss)	381		216		(82		)	515
Depreciation and amortization	124		491		43			658
April 3, 2015
Revenues	$	4,036	$	4,081	$	—		$	8,117
Operating income (loss)	405		162		(108		)	459
Depreciation and amortization	149		673		18			840
March 28, 2014
Revenues	$	4,321	$	4,578	$	—		$	8,899
Operating income (loss)	574		382		(104		)	852
Depreciation and amortization	152		704		14			870

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 (loss) from continuing operations before taxes is as follows:

	Twelve Months Ended
(Amounts in millions)	April 1, 2016			April 3, 2015			March 28, 2014
Operating income	$	515		$	459		$	852
Corporate G&A	(216		)	(230		)	(245		)
Pension & OPEB actuarial (losses) gains	(99		)	(584		)	217
SEC settlement related charges and other (1)	—			(200		)	—
Separation costs	(19		)	—			—
Interest expense	(123		)	(126		)	(128		)
Interest income	38			20			16
Debt extinguishment costs	(95		)	—			—
Other income (expense), net	9			(10		)	(18		)
Income (loss) from continuing operations before taxes	$	10		$	(671	)	$	694

⁽¹⁾ This item primarily relates to the SEC investigation settlement (see Note 2).

Revenue by country is based on the location of the selling business unit. Property and equipment, total assets and capital expenditures (purchase of property and equipment) information is based on the physical location of the asset. Geographic revenue, property and equipment, net, total assets, and capital expenditures for the twelve months ended April 1, 2016, April 3, 2015, and March 28, 2014, are as follows:

	April 1, 2016
(Amounts in millions)	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	3,057	$	1,570	$	1,474	$	1,005	$	7,106
Property and Equipment, net	466		244		157		158		1,025
Total Assets	3,330		1,053		1,580		1,773		7,736
Capital Expenditures	249		66		48		49		412

	April 3, 2015
	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	3,268	$	1,721	$	1,928	$	1,200	$	8,117
Property and Equipment, net	505		257		176		172		1,110
Total Assets	5,979		1,621		1,197		1,424		10,221
Capital Expenditures	225		58		73		50		406

	March 28, 2014
	United States		United Kingdom		Other Europe		Other International		Total
Revenue	$	3,667	$	1,699	$	2,150	$	1,383	$	8,899
Property and Equipment, net	680		335		253		266		1,534
Total Assets	6,721		1,615		1,459		1,566		11,361
Capital Expenditures	333		89		85		88		595

No single commercial customer exceeded 10% of the Company’s revenues during fiscal 2016, fiscal 2015, or fiscal 2014.