Divestitures

9 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

DIVESTITURES

NOTE B – DIVESTITURES

In the second quarter of fiscal year 2015, the Company sold arcserve for approximately $170 million and recognized a gain on disposal of approximately $19 million, including tax expense of approximately $77 million. The effective tax rate on the disposal was adversely affected by non-deductible goodwill of $109 million. In the fourth quarter of fiscal year 2014, the Company identified ERwin as available for sale. The divestiture of arcserve and the planned divestiture of ERwin result from an effort to rationalize the Company’s product portfolio within the Enterprise Solutions segment.

The income from discontinued operations relating to both ERwin and the sale of arcserve for the three and nine months ended December 31, 2014 and 2013 consisted of the following:

	Three Months Ended December 31,
(in millions)	2014		2013
Subscription and maintenance	$	7	$	22
Software fees and other	2		13
Total revenue	$	9	$	35
Income from operations of discontinued components, net of tax expense of $2 million and $6 million, respectively	$	4	$	7

	Nine Months Ended December 31,
(in millions)	2014		2013
Subscription and maintenance	$	38	$	67
Software fees and other	17		36
Total revenue	$	55	$	103
Income from operations of discontinued components, net of tax expense of $8 million and $15 million, respectively	$	11	$	21
Gain on disposal of discontinued component, net of tax	19		—
Income from discontinued operations, net of tax	$	30	$	21