Consolidated Variable Interest Entities

12 Months Ended

Apr. 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.

As agreed in the formation agreement, during the third quarter of fiscal 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 April 1, 2016:



(Amounts in millions)	As of April 1, 2016
Cash and cash equivalents	$	5
Software	8
Total Assets	$	13

Accrued expenses	$	7

Equity attributable to noncontrolling interest	$	5
Equity attributable to the Company	9
Total Equity	$	14
Total Liabilities and Equity	21

As of April 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, and as such, follows accounting treatment for variable interest entities that properly meet the criteria for consolidation. The operations of the subsidiaries have had an insignificant impact on CSC's Consolidated Financial Statements.