[May 19, 2015] |
|
CSC Delivers Solid Margin Expansion, Profit Growth, and Cash Flow in Fourth Quarter and Fiscal Year 2015
CSC
(NYSE: CSC) today reported results for the fourth quarter and fiscal
year 2015.
"In fiscal 2015, CSC again delivered earnings growth, margin expansion,
and healthy cash flow, and returned significant capital to our
shareholders. We finished the year with sequential revenue growth on a
constant currency basis and good bookings performance," said Mike
Lawrie, president and CEO. "We continue to invest in new offerings to
better position CSC to capitalize on the significant growth
opportunities we are seeing in the marketplace."
Financial Highlights - Fourth Quarter Fiscal 2015
-
Earnings per share from continuing operations was $0.06 in the fourth
quarter, compared with $1.83 in the fourth quarter of fiscal 2014, and
includes:
-
$(1.74) from non-cash pension-related charges,
-
$(0.02) from SEC-related and other charges,
-
$(1.28) from a special restructuring charge, and
-
$1.85 benefit from a tax valuation allowance.
-
Non-GAAP diluted earnings per share was $1.26 excluding these items,
compared with $1.15 in the fourth quarter of fiscal 2014.
-
Income from continuing operations was $13 million in the fourth
quarter, compared with $276 million in the fourth quarter of fiscal
2014, and includes:
-
$(249) million from non-cash pension-related charges,
-
$(3) million from SEC-related and other charges,
-
$(183) million from a special restructuring charge, and
-
$264 million benefit from a tax valuation allowance.
-
Non-GAAP income from continuing operations was $184 million excluding
these items, compared with $174 million in the year-ago quarter.
-
(Loss) income from continuing operations, before taxes of $(317)
million includes:
-
$(319) million from non-cash pension-related charges,
-
$(5) million from SEC-related and other charges, and
-
$(246) million from a special restructuring charge.
-
Non-GAAP income from continuing operations, before taxes was $253
million excluding these items.
-
Adjusted operating income of $349 million, excluding the special
restructuring charge, compares with $364 million in the year-ago
quarter. Adjusted operating margin of 12.0% increased from 10.9% in
the year-ago quarter.
-
Adjusted earnings before interest and taxes (EBIT) of $283 million
compares with $296 million in the fourth quarter of fiscal 2014.
Adjusted EBIT margin of 9.7% improved from 8.9% in the year-ago
quarter.
Financial Highlights - Fiscal Year 2015
-
Earnings per share from continuing operations was $0.15 in fiscal year
2015, compared with $5.70 in fiscal 2014, and includes:
-
$(3.70) from non-cash pension-related charges,
-
$(1.35) from SEC-related and other charges,
-
$(1.26) from a fourth quarter fiscal 2015 special restructuring
charge, and
-
$1.81 benefit from a tax valuation allowance.
-
Non-GAAP diluted earnings per share was $4.64 excluding these items,
versus $4.27 in fiscal 2014.
-
Income from continuing operations was $36 million in fiscal year 2015,
compared with $880 million in fiscal 2014, and includes:
-
$(541) million from non-cash pension-related charges,
-
$(197) million from SEC-related and other charges,
-
$(183) million from a fourth quarter fiscal 2015 special
restructuring charge, and
-
$264 million benefit from a tax valuation allowance.
-
Non-GAAP income from continuing operations was $693 million excluding
these items, versus $664 million in the prior year.
-
(Loss) income from continuing operations, before taxes of $(276)
million includes:
-
$(782) million from non-cash pension-related charges,
-
$(200) million from SEC-related and other charges, and
-
$(246) million from a fourth quarter fiscal 2015 special
restructuring charge.
-
Non-GAAP income from continuing operations, before taxes was $952
million excluding these items.
-
Adjusted operating income was $1,334 million, excluding the fourth
quarter fiscal 2015 special restructuring charge, and compares with
$1,395 million in the prior year. Adjusted operating margin of 11.0%
increased from 10.7% in the prior year.
-
Adjusted EBIT was $1,080 million and compares with $1,114 million in
the prior year. Adjusted EBIT margin of 8.9% improved from 8.6% in the
prior year.
-
Net cash provided by operating activities was $1.43 billion and
compares with $1.56 billion in the prior year.
-
Fiscal 2015 free cash flow was $717 million versus $689 million in the
prior year.
Global Business Services
GBS revenue of $980 million in the quarter compares with $1,152 million
in the year ago quarter. GBS revenue declined by 7.6% in constant
currency, driven by contract completions and the ongoing repositioning
of the consulting business, partially offset by growth in new offerings.
Adjusted operating margin of 16.7% compared with 17.4% in the prior
year, reflecting higher investments in the business. New contract awards
for GBS were $1.1 billion in the quarter.
Global Infrastructure Services
GIS revenue of $929 million in the quarter compares with $1,173 million
in the year ago quarter. GIS revenue declined by 14.8% in constant
currency from the prior year, with growth in new offerings such as
MyWorkStyle desktop solutions partially offsetting the impact of
price-downs, restructurings, and contract completions. Adjusted
operating margin of 6.8% compared with 6.1% in the prior year, driven by
cost takeout benefits, partially offset by continued investments in the
business. GIS reported new contract awards of $1.2 billion in the
quarter.
North American Public Sector
NPS revenue was $1.00 billion in the quarter, flat on both a sequential
and year-over-year basis. Growth in state health IT, NextGen IT such as
Cloud, and business process outsourcing work offset declines in other
Department of Defense and federal civilian contracts. Adjusted operating
margin of 14.0% increased from 11.2% in the prior year, as the business
continues to benefit from better contract performance and cost
efficiencies. New contract awards for NPS were $1.0 billion in the
quarter.
Returning Capital to Shareholders
During the fourth quarter, CSC returned $257 million to shareholders
consisting of $33 million in common stock dividends and $224 million of
share repurchases. CSC repurchased 3.2 million shares at an average
price of $69.71.
For fiscal year 2015, CSC returned $867 million to shareholders in the
form of $131 million in common stock dividends and $736 million of share
repurchases. During the year, CSC repurchased 11.7 million shares at an
average price of $62.83.
CSC had 138,773,340 basic shares outstanding on April 3, 2015.
Conference Call and Webcast
CSC senior management will host a conference call and webcast at 5 p.m.
ET today. The dial-in number for domestic callers is 888-542-1101.
Callers who reside outside of the United States or Canada should dial
719-325-2482. The passcode for all participants is 9825381. The webcast
audio and any presentation slides will be available on CSC's Investor
Relations website.
A replay of the conference call will be available from approximately two
hours after the conclusion of the call until May 26, 2015. The replay
dial-in number is 888-203-1112 for domestic callers and 719-457-0820 for
callers who reside outside of the United States and Canada. The replay
passcode is also 9825381. A replay of this webcast will also be
available on CSC's website.
Non-GAAP Measures
In an effort to provide investors with additional information regarding
the Company's preliminary and unaudited results as determined by U.S.
generally accepted accounting principles (GAAP), the Company has also
disclosed in this press release preliminary non-GAAP information, and
certain further adjustments thereto, which management believes provides
useful information to investors, including: operating income, earnings
before interest and taxes (EBIT), free cash flow, and non-GAAP results
including non-GAAP income (loss) from continuing operations and non-GAAP
diluted earnings (loss) per share from continuing operations.
Reconciliations of the preliminary non-GAAP measures to the respective
and most directly comparable GAAP measures, as well as the rationale for
management's use of non-GAAP measures, are included below.
About CSC
Computer Sciences Corporation (CSC) is a global leader of next
generation information technology (IT) services and solutions. The
Company's mission is to enable superior returns on our clients'
technology investments through best-in-class industry solutions, domain
expertise and global scale. CSC has approximately 70,000 employees and
reported revenue of $12.2 billion for the 12 months ended April 3, 2015.
For more information, visit the company's website at www.csc.com.
All statements in this press release and in all future press releases
that do not directly and exclusively relate to historical facts
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
represent the Company's intentions, plans, expectations and beliefs, and
are subject to risks, uncertainties and other factors, many of which are
outside the Company's control. These factors could cause actual results
to differ materially from such forward-looking statements. For a written
description of these factors, see the section titled "Risk Factors" in
CSC's Form 10-K for the fiscal year ended March 28, 2014 and any
updating information in subsequent SEC filings. The Company disclaims
any intention or obligation to update these forward-looking statements
whether as a result of subsequent event or otherwise, except as required
by law.
|
Note: During the first quarter of fiscal 2015, CSC adopted
a new mark-to-market pension accounting policy and changed its
inter-company accounting policy. The Company's results from the
prior year have been adjusted to reflect these changes.
|
|
Business Segment Revenues, Operating Income and Operating
Margins
|
(preliminary and unaudited)
|
|
Revenues by Segment
|
|
|
|
|
Quarter Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
% Change
|
|
|
% Change in Constant Currency
|
Global Business Solutions
|
|
|
$
|
980
|
|
|
|
$
|
1,152
|
|
|
|
|
(14.9
|
)%
|
|
|
(7.6
|
)%
|
Global Infrastructure Services
|
|
|
|
929
|
|
|
|
|
1,173
|
|
|
|
|
(20.8
|
)
|
|
|
(14.8
|
)
|
North American Public Sector
|
|
|
|
1,000
|
|
|
|
|
1,004
|
|
|
|
|
(0.4
|
)
|
|
|
(0.4
|
)
|
Total Revenue
|
|
|
$
|
2,909
|
|
|
|
$
|
3,329
|
|
|
|
|
(12.6
|
)%
|
|
|
(8.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
% Change
|
|
|
% Change in Constant Currency
|
Global Business Solutions
|
|
|
$
|
4,036
|
|
|
|
$
|
4,321
|
|
|
|
|
(6.6
|
)%
|
|
|
(4.7
|
)%
|
Global Infrastructure Services
|
|
|
|
4,080
|
|
|
|
|
4,578
|
|
|
|
|
(10.9
|
)
|
|
|
(9.4
|
)
|
North American Public Sector
|
|
|
|
4,057
|
|
|
|
|
4,099
|
|
|
|
|
(1.0
|
)
|
|
|
(1.0
|
)
|
Total Revenue
|
|
|
$
|
12,173
|
|
|
|
$
|
12,998
|
|
|
|
|
(6.3
|
)%
|
|
|
(5.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income and Operating Margins by
Segment
|
|
|
|
|
Quarter Ended
|
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
(Amounts in millions)
|
|
|
Operating Income
|
|
|
Operating Margin
|
|
|
Operating Income
|
|
|
Operating Margin
|
Global Business Solutions
|
|
|
$
|
39
|
|
|
|
|
4.0
|
%
|
|
|
$
|
201
|
|
|
|
17.4
|
%
|
Global Infrastructure Services
|
|
|
|
(49
|
)
|
|
|
|
(5.3
|
)
|
|
|
|
92
|
|
|
|
7.8
|
|
North American Public Sector
|
|
|
|
135
|
|
|
|
|
13.5
|
|
|
|
|
112
|
|
|
|
11.2
|
|
Corporate & Eliminations
|
|
|
|
(22
|
)
|
|
|
|
-
|
|
|
|
|
(20
|
)
|
|
|
-
|
|
Total Operating Income
|
|
|
$
|
103
|
|
|
|
|
3.5
|
%
|
|
|
$
|
385
|
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
(Amounts in millions)
|
|
|
Operating Income
|
|
|
Operating Margin
|
|
|
Operating Income
|
|
|
Operating Margin
|
Global Business Solutions
|
|
|
$
|
405
|
|
|
|
|
10.0
|
%
|
|
|
$
|
574
|
|
|
|
13.3
|
%
|
Global Infrastructure Services
|
|
|
|
162
|
|
|
|
|
4.0
|
|
|
|
|
382
|
|
|
|
8.3
|
|
North American Public Sector
|
|
|
|
591
|
|
|
|
|
14.6
|
|
|
|
|
524
|
|
|
|
12.8
|
|
Corporate & Eliminations
|
|
|
|
(70
|
)
|
|
|
|
-
|
|
|
|
|
(64
|
)
|
|
|
-
|
|
Total Operating Income
|
|
|
$
|
1,088
|
|
|
|
|
8.9
|
%
|
|
|
$
|
1,416
|
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations
|
(preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Twelve Months Ended
|
(Amounts in millions, except per-share amounts)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
2,909
|
|
|
|
$
|
3,329
|
|
|
|
$
|
12,173
|
|
|
|
$
|
12,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of services (excludes depreciation and amortization and
restructuring costs)
|
|
|
|
2,433
|
|
|
|
|
2,257
|
|
|
|
|
9,534
|
|
|
|
|
9,272
|
|
Selling, general and administrative (excludes SEC settlement related
charges and restructuring costs)
|
|
|
|
294
|
|
|
|
|
300
|
|
|
|
|
1,340
|
|
|
|
|
1,220
|
|
Selling, general and administrative - SEC settlement related charges
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
|
197
|
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
|
215
|
|
|
|
|
265
|
|
|
|
|
977
|
|
|
|
|
1,018
|
|
Restructuring costs
|
|
|
|
246
|
|
|
|
|
43
|
|
|
|
|
261
|
|
|
|
|
76
|
|
Interest expense
|
|
|
|
36
|
|
|
|
|
35
|
|
|
|
|
148
|
|
|
|
|
147
|
|
Interest income
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
|
|
|
(20
|
)
|
|
|
|
(16
|
)
|
Other expense, net
|
|
|
|
6
|
|
|
|
|
2
|
|
|
|
|
12
|
|
|
|
|
18
|
|
Total costs and expenses
|
|
|
|
3,226
|
|
|
|
|
2,897
|
|
|
|
|
12,449
|
|
|
|
|
11,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations, before taxes
|
|
|
|
(317
|
)
|
|
|
|
432
|
|
|
|
|
(276
|
)
|
|
|
|
1,263
|
|
Income tax (benefit) expense
|
|
|
|
(330
|
)
|
|
|
|
156
|
|
|
|
|
(312
|
)
|
|
|
|
383
|
|
Income from continuing operations
|
|
|
|
13
|
|
|
|
|
276
|
|
|
|
|
36
|
|
|
|
|
880
|
|
(Loss) income from discontinued operations, net of taxes
|
|
|
|
-
|
|
|
|
|
(3
|
)
|
|
|
|
(29
|
)
|
|
|
|
88
|
|
Net income
|
|
|
|
13
|
|
|
|
|
273
|
|
|
|
|
7
|
|
|
|
|
968
|
|
Less: net income attributable to noncontrolling interest, net of tax
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
15
|
|
|
|
|
21
|
|
Net income (loss) attributable to CSC common stockholders
|
|
|
$
|
9
|
|
|
|
$
|
270
|
|
|
|
$
|
(8
|
)
|
|
|
$
|
947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.06
|
|
|
|
$
|
1.87
|
|
|
|
$
|
0.15
|
|
|
|
$
|
5.81
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.02
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
0.60
|
|
|
|
|
$
|
0.06
|
|
|
|
$
|
1.85
|
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
6.41
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.06
|
|
|
|
$
|
1.83
|
|
|
|
$
|
0.15
|
|
|
|
$
|
5.70
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.02
|
)
|
|
|
|
(0.20
|
)
|
|
|
|
0.58
|
|
|
|
|
$
|
0.06
|
|
|
|
$
|
1.81
|
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
6.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend per common share
|
|
|
$
|
0.23
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.92
|
|
|
|
$
|
0.80
|
|
Weighted average common shares outstanding for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
|
140.760
|
|
|
|
|
145.953
|
|
|
|
|
142.557
|
|
|
|
|
147.647
|
|
Diluted
|
|
|
|
142.812
|
|
|
|
|
149.251
|
|
|
|
|
145.780
|
|
|
|
|
150.761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data
|
|
|
|
(preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
As of
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
2,098
|
|
|
$
|
2,443
|
Receivables, net
|
|
|
2,369
|
|
|
2,759
|
Prepaid expenses and other current assets
|
|
|
438
|
|
|
426
|
Total current assets
|
|
|
4,905
|
|
|
5,628
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,583
|
|
|
2,031
|
Outsourcing contract costs, net
|
|
|
326
|
|
|
427
|
Software, net
|
|
|
751
|
|
|
650
|
Goodwill
|
|
|
1,671
|
|
|
1,667
|
Other assets
|
|
|
965
|
|
|
986
|
Total Assets
|
|
|
$
|
10,201
|
|
|
$
|
11,389
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Short-term debt and current maturities of long-term debt
|
|
|
$
|
904
|
|
|
$
|
681
|
Accounts payable
|
|
|
422
|
|
|
394
|
Accrued payroll and related costs
|
|
|
356
|
|
|
592
|
Accrued expenses and other current liabilities
|
|
|
1,239
|
|
|
1,094
|
Deferred revenue and advance contract payments
|
|
|
618
|
|
|
624
|
Income taxes payable and deferred income taxes
|
|
|
62
|
|
|
77
|
Total current liabilities
|
|
|
3,601
|
|
|
3,462
|
|
|
|
|
|
|
|
Long-term debt, net of current maturities
|
|
|
1,765
|
|
|
2,207
|
Income tax liabilities and deferred income taxes
|
|
|
412
|
|
|
557
|
Other long-term liabilities
|
|
|
1,474
|
|
|
1,219
|
|
|
|
|
|
|
|
Total Equity
|
|
|
2,949
|
|
|
3,944
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
$
|
10,201
|
|
|
$
|
11,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
(preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
7
|
|
|
|
$
|
968
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
977
|
|
|
|
1,018
|
|
Pension & OPEB actuarial & settlement losses (gains)
|
|
|
782
|
|
|
|
(259
|
)
|
Stock-based compensation
|
|
|
68
|
|
|
|
73
|
|
Deferred taxes
|
|
|
(449
|
)
|
|
|
169
|
|
Gain on dispositions
|
|
|
(22
|
)
|
|
|
(85
|
)
|
Provision for losses on accounts receivable
|
|
|
2
|
|
|
|
4
|
|
Excess tax benefit from stock based compensation
|
|
|
(18
|
)
|
|
|
(8
|
)
|
Unrealized foreign currency exchange gain
|
|
|
(4
|
)
|
|
|
(29
|
)
|
Impairment losses and contract write-offs
|
|
|
-
|
|
|
|
3
|
|
Cash surrender value in excess of premiums paid
|
|
|
(9
|
)
|
|
|
(8
|
)
|
Other non-cash charges, net
|
|
|
39
|
|
|
|
55
|
|
Changes in assets and liabilities, net of effects of acquisitions
and dispositions:
|
|
|
|
|
|
|
Decrease in receivables
|
|
|
237
|
|
|
|
168
|
|
Increase in prepaid expenses and other current assets
|
|
|
(36
|
)
|
|
|
(40
|
)
|
Decrease in accounts payable and accrued expenses
|
|
|
(335
|
)
|
|
|
(549
|
)
|
Increase in accrual for SEC settlement related charges
|
|
|
190
|
|
|
|
-
|
|
(Decrease) increase in income taxes payable and income tax liability
|
|
|
(23
|
)
|
|
|
119
|
|
Increase in advanced contract payments and deferred revenue
|
|
|
11
|
|
|
|
2
|
|
Other operating activities, net
|
|
|
16
|
|
|
|
(41
|
)
|
Net cash provided by operating activities
|
|
|
1,433
|
|
|
|
1,560
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(381
|
)
|
|
|
(420
|
)
|
Payments for outsourcing contract costs
|
|
|
(68
|
)
|
|
|
(71
|
)
|
Payments for acquisitions, net of cash acquired
|
|
|
(49
|
)
|
|
|
(190
|
)
|
Proceeds from business dispositions
|
|
|
(13
|
)
|
|
|
248
|
|
Software purchased and developed
|
|
|
(199
|
)
|
|
|
(197
|
)
|
Proceeds from sale of assets
|
|
|
155
|
|
|
|
38
|
|
Other investing activities, net
|
|
|
19
|
|
|
|
26
|
|
Net cash (used in) provided by investing activities
|
|
|
(536
|
)
|
|
|
(566
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Borrowings under lines of credit and short-term debt
|
|
|
-
|
|
|
|
439
|
|
Repayment of borrowings under lines of credit
|
|
|
(32
|
)
|
|
|
-
|
|
Principal payments on long-term debt
|
|
|
(242
|
)
|
|
|
(492
|
)
|
Proceeds from stock options and other common stock transactions
|
|
|
196
|
|
|
|
214
|
|
Excess tax benefit from stock based compensation
|
|
|
18
|
|
|
|
8
|
|
Repurchase of common stock and advance payment for accelerated share
repurchase
|
|
|
(842
|
)
|
|
|
(521
|
)
|
Dividend payments
|
|
|
(128
|
)
|
|
|
(119
|
)
|
Payment of contingent consideration
|
|
|
-
|
|
|
|
(98
|
)
|
Other financing activities, net
|
|
|
(8
|
)
|
|
|
(30
|
)
|
Net cash used in financing activities
|
|
|
(1,038
|
)
|
|
|
(599
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(204
|
)
|
|
|
(6
|
)
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(345
|
)
|
|
|
389
|
|
Cash and cash equivalents at beginning of year
|
|
|
2,443
|
|
|
|
2,054
|
|
Cash and cash equivalents at end of year
|
|
|
$
|
2,098
|
|
|
|
$
|
2,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
|
|
The following tables reconcile non-GAAP financial measures of
operating income, earnings before interest and taxes (EBIT), and
free cash flow, to the respective most directly comparable financial
measure calculated and presented in accordance with GAAP. Also
presented below are the Company's non-GAAP results, which exclude
certain items that management believes are not indicative of the
Company's operating performance. CSC management believes that these
non-GAAP financial measures provide useful information to investors
regarding the Company's financial condition and results of
operations as they provide another measure of the Company's
profitability and ability to service its debt, and are considered
important measures by financial analysts covering CSC and its peers.
|
|
Management uses operating income to evaluate financial performance
and it is one of the measures used in assessing management
performance. One of the limitations associated with the use of
operating income (as compared to reported earnings) is that it does
not reflect the complete financial results of the Company. CSC
compensates for these limitations by providing a reconciliation
between operating income and income from continuing operations,
before taxes. Management uses free cash flow as one of the factors
in reviewing the overall performance of the business. Management
compensates for the limitations of this non-GAAP measure by also
reviewing the GAAP measures of operating, investing and financing
cash flows. Management uses non-GAAP income from continuing
operations and non-GAAP EPS to evaluate the Company's results,
excluding the impact of items that management believes are not
indicative of the Company's operating performance. CSC compensates
for the limitations of these non-GAAP measures by providing a
reconciliation from non-GAAP results to reported results.
|
|
GAAP Reconciliations
|
|
Operating Income and Adjusted Operating
Income
|
(preliminary and unaudited)
|
|
CSC defines operating income as revenue less costs of services,
segment selling, general and administrative (G&A) expenses,
depreciation and amortization expense, and restructuring costs.
Operating income excludes corporate G&A, actuarial and settlement
charges related to CSC's pension and other post-employment benefit
(OPEB) plans, and the SEC settlement related charges and Other.
Operating margin is defined as operating income as a percentage of
revenue.
|
|
Adjusted operating income is computed by excluding from operating
income the impact of the fourth quarter fiscal 2015 special
restructuring costs, and the impact of the fourth quarter fiscal
2014 reversal of the excess ServiceMesh contingent consideration
payable.
|
|
Reconciliations of adjusted operating income and operating income to
income from continuing operations before taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Twelve Months Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
$
|
349
|
|
|
|
$
|
364
|
|
|
|
$
|
1,334
|
|
|
|
$
|
1,395
|
|
Special restructuring costs
|
|
|
(246
|
)
|
|
|
-
|
|
|
|
(246
|
)
|
|
|
-
|
|
Reversal of contingent consideration
|
|
|
-
|
|
|
|
21
|
|
|
|
-
|
|
|
|
21
|
|
Operating income
|
|
|
103
|
|
|
|
385
|
|
|
|
1,088
|
|
|
|
1,416
|
|
Corporate G&A
|
|
|
(60
|
)
|
|
|
(66
|
)
|
|
|
(242
|
)
|
|
|
(263
|
)
|
Pension & OPEB actuarial & settlement (losses) gains
|
|
|
(319
|
)
|
|
|
145
|
|
|
|
(782
|
)
|
|
|
259
|
|
SEC settlement related charges and Other
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(200
|
)
|
|
|
-
|
|
Interest expense
|
|
|
(36
|
)
|
|
|
(35
|
)
|
|
|
(148
|
)
|
|
|
(147
|
)
|
Interest income
|
|
|
6
|
|
|
|
5
|
|
|
|
20
|
|
|
|
16
|
|
Other expense, net
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
|
(12
|
)
|
|
|
(18
|
)
|
(Loss) income from continuing operations, before taxes
|
|
|
$
|
(317
|
)
|
|
|
$
|
432
|
|
|
|
$
|
(276
|
)
|
|
|
$
|
1,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating margin
|
|
|
12.0
|
%
|
|
|
10.9
|
%
|
|
|
11.0
|
%
|
|
|
10.7
|
%
|
Operating margin
|
|
|
3.5
|
%
|
|
|
11.6
|
%
|
|
|
8.9
|
%
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Taxes and
Adjusted Earnings Before Interest and Taxes
|
(preliminary and unaudited)
|
|
Earnings before interest and taxes (EBIT) is defined as income from
continuing operations less interest expense, interest income and
income tax benefit (expense). EBIT margin is defined as EBIT as a
percentage of revenue.
|
|
Adjusted EBIT is computed by excluding from EBIT the impact of the
(i) actuarial gains (losses) and settlement charges related to CSC's
pension & other post-employment benefit (OPEB) plans, (ii) proposed
SEC settlement related charges and Other, (iii) fourth quarter
fiscal 2015 special restructuring costs, and (iv) the fourth quarter
fiscal 2014 reversal of the excess ServiceMesh (SMI) contingent
consideration payable. Adjusted EBIT margin is computed as adjusted
EBIT as a percentage of revenue.
|
|
A reconciliation of adjusted EBIT and EBIT to income from continuing
operations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Twelve Months Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
Adjusted EBIT
|
|
|
$
|
283
|
|
|
|
$
|
296
|
|
|
|
$
|
1,080
|
|
|
|
$
|
1,114
|
|
Pension & OPEB actuarial & settlement (losses) gains
|
|
|
(319
|
)
|
|
|
145
|
|
|
|
(782
|
)
|
|
|
|
259
|
|
SEC settlement related charges and Other
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(200
|
)
|
|
|
|
-
|
|
Special restructuring costs
|
|
|
(246
|
)
|
|
|
-
|
|
|
|
(246
|
)
|
|
|
|
-
|
|
Reversal of contingent consideration
|
|
|
-
|
|
|
|
21
|
|
|
|
-
|
|
|
|
|
21
|
|
EBIT
|
|
|
(287
|
)
|
|
|
462
|
|
|
|
(148
|
)
|
|
|
|
1,394
|
|
Interest expense
|
|
|
(36
|
)
|
|
|
(35
|
)
|
|
|
(148
|
)
|
|
|
|
(147
|
)
|
Interest income
|
|
|
6
|
|
|
|
5
|
|
|
|
20
|
|
|
|
|
16
|
|
Income tax benefit (expense)
|
|
|
330
|
|
|
|
(156
|
)
|
|
|
312
|
|
|
|
|
(383
|
)
|
Income from continuing operations
|
|
|
$
|
13
|
|
|
|
$
|
276
|
|
|
|
$
|
36
|
|
|
|
$
|
880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT margin
|
|
|
9.7
|
%
|
|
|
8.9
|
%
|
|
|
8.9
|
%
|
|
|
|
8.6
|
%
|
EBIT margin
|
|
|
(9.9
|
)%
|
|
|
13.9
|
%
|
|
|
(1.2
|
)%
|
|
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
(preliminary and unaudited)
|
|
CSC defines free cash flow as equal to the sum of (1) operating cash
flows, (2) investing cash flows, excluding business acquisitions,
dispositions and investments (including short-term investments and
purchase or sale of available for sale securities), and (3) payments
on capital leases and other long-term asset financings. A
reconciliation of free cash flow to net cash provided by operating
activities is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Twelve Months Ended
|
(Amounts in millions)
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
|
|
April 3, 2015
|
|
|
March 28, 2014
|
Net cash provided by operating activities
|
|
|
$
|
290
|
|
|
|
$
|
548
|
|
|
|
$
|
1,433
|
|
|
|
$
|
1,560
|
|
Net cash (used in) provided by investing activities
|
|
|
(137
|
)
|
|
|
(189
|
)
|
|
|
(536
|
)
|
|
|
(566
|
)
|
Acquisitions, net of cash acquired
|
|
|
14
|
|
|
|
-
|
|
|
|
49
|
|
|
|
190
|
|
Business dispositions
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
13
|
|
|
|
(248
|
)
|
Short-term investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
Payment on capital leases and other long-term asset financings
|
|
|
(49
|
)
|
|
|
(68
|
)
|
|
|
(242
|
)
|
|
|
(242
|
)
|
Free cash flow
|
|
|
$
|
118
|
|
|
|
$
|
288
|
|
|
|
$
|
717
|
|
|
|
$
|
689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment Operating Income and Operating Margin
|
(preliminary and unaudited)
|
|
Adjusted operating income is computed by excluding from operating
income the impact of the fourth quarter fiscal 2015 special
restructuring costs, and the impact of the fourth quarter fiscal
2014 reversal of the excess ServiceMesh contingent consideration
payable. Reconciliations of adjusted operating income to operating
income, for the quarters and twelve months ended April 3, 2015 and
March 28, 2014, are as follows:
|
|
|
|
|
|
|
|
|
Quarter Ended April 3, 2015
|
|
|
|
|
|
|
Special
|
|
|
Adjusted
|
|
|
Adjusted
|
|
|
|
Operating
|
|
|
restructuring
|
|
|
operating
|
|
|
operating
|
(Amounts in millions)
|
|
|
income
|
|
|
costs
|
|
|
income
|
|
|
margin
|
Global Business Solutions
|
|
|
$
|
39
|
|
|
|
$
|
125
|
|
|
|
$
|
164
|
|
|
|
16.7
|
%
|
|
Global Infrastructure Services
|
|
|
|
(49
|
)
|
|
|
|
112
|
|
|
|
|
63
|
|
|
|
6.8
|
|
North American Public Sector
|
|
|
|
135
|
|
|
|
|
5
|
|
|
|
|
140
|
|
|
|
14.0
|
|
Corporate & Eliminations
|
|
|
|
(22
|
)
|
|
|
|
4
|
|
|
|
|
(18
|
)
|
|
|
-
|
|
Total
|
|
|
$
|
103
|
|
|
|
$
|
246
|
|
|
|
$
|
349
|
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 28, 2014
|
|
|
|
|
|
|
Reversal of
|
|
|
Adjusted
|
|
|
Adjusted
|
|
|
|
Operating
|
|
|
contingent
|
|
|
operating
|
|
|
operating
|
(Amounts in millions)
|
|
|
income
|
|
|
consideration
|
|
|
income
|
|
|
margin
|
Global Business Solutions
|
|
|
$
|
201
|
|
|
|
$
|
-
|
|
|
|
$
|
201
|
|
|
|
17.4
|
%
|
Global Infrastructure Services
|
|
|
|
92
|
|
|
|
|
(21
|
)
|
|
|
|
71
|
|
|
|
6.1
|
|
North American Public Sector
|
|
|
|
112
|
|
|
|
|
-
|
|
|
|
|
112
|
|
|
|
11.2
|
|
Corporate & Eliminations
|
|
|
|
(20
|
)
|
|
|
|
-
|
|
|
|
|
(20
|
)
|
|
|
-
|
|
Total
|
|
|
$
|
385
|
|
|
|
$
|
(21
|
)
|
|
|
$
|
364
|
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended April 3, 2015
|
|
|
|
|
|
|
Special
|
|
|
Adjusted
|
|
|
Adjusted
|
|
|
|
Operating
|
|
|
restructuring
|
|
|
operating
|
|
|
operating
|
(Amounts in millions)
|
|
|
income
|
|
|
costs
|
|
|
income
|
|
|
margin
|
Global Business Solutions
|
|
|
$
|
405
|
|
|
|
$
|
125
|
|
|
|
$
|
530
|
|
|
|
13.1
|
%
|
Global Infrastructure Services
|
|
|
|
162
|
|
|
|
|
112
|
|
|
|
|
274
|
|
|
|
6.7
|
|
North American Public Sector
|
|
|
|
591
|
|
|
|
|
5
|
|
|
|
|
596
|
|
|
|
14.7
|
|
Corporate & Eliminations
|
|
|
|
(70
|
)
|
|
|
|
4
|
|
|
|
|
(66
|
)
|
|
|
-
|
|
Total
|
|
|
$
|
1,088
|
|
|
|
$
|
246
|
|
|
|
$
|
1,334
|
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended March 28, 2014
|
|
|
|
|
|
|
Reversal of
|
|
|
Adjusted
|
|
|
Adjusted
|
|
|
|
Operating
|
|
|
contingent
|
|
|
operating
|
|
|
operating
|
(Amounts in millions)
|
|
|
income
|
|
|
consideration
|
|
|
income
|
|
|
margin
|
Global Business Solutions
|
|
|
$
|
574
|
|
|
|
$
|
-
|
|
|
|
$
|
574
|
|
|
|
13.3
|
%
|
Global Infrastructure Services
|
|
|
|
382
|
|
|
|
|
(21
|
)
|
|
|
|
361
|
|
|
|
7.9
|
|
North American Public Sector
|
|
|
|
524
|
|
|
|
|
-
|
|
|
|
|
524
|
|
|
|
12.8
|
|
Corporate & Eliminations
|
|
|
|
(64
|
)
|
|
|
|
-
|
|
|
|
|
(64
|
)
|
|
|
-
|
|
Total
|
|
|
$
|
1,416
|
|
|
|
$
|
(21
|
)
|
|
|
$
|
1,395
|
|
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
|
|
Non-GAAP results are financial measures calculated by excluding
certain items, which management believes are not indicative of the
Company's operating performance. A reconciliation of non-GAAP
results to reported results is as follows:
|
|
|
|
|
|
|
|
|
Quarter Ended April 3, 2015
|
(Amounts in millions, except per-share amounts)
|
|
|
As reported
|
|
|
Pension & OPEB actuarial & settlement losses
|
|
|
SEC Settlement related charges
& Other
|
|
|
Special restructuring costs
|
|
|
Tax valuation allowance benefit
|
|
|
Non-GAAP results
|
Costs of services (excludes depreciation and amortization and
restructuring costs)
|
|
|
$
|
2,433
|
|
|
|
$
|
(302
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
2,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative (excludes SEC settlement related
charges and restructuring costs)
|
|
|
$
|
294
|
|
|
|
$
|
(17
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations, before taxes
|
|
|
$
|
(317
|
)
|
|
|
$
|
(319
|
)
|
|
|
$
|
(5
|
)
|
|
|
$
|
(246
|
)
|
|
|
$
|
-
|
|
|
|
$
|
253
|
|
Income tax (benefit) expense
|
|
|
(330
|
)
|
|
|
(70
|
)
|
|
|
(2
|
)
|
|
|
(63
|
)
|
|
|
(264
|
)
|
|
|
69
|
|
Income from continuing operations
|
|
|
$
|
13
|
|
|
|
$
|
(249
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
13
|
|
|
|
$
|
(249
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
184
|
|
Less: net income attributable to noncontrolling interest, net of tax
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
Net (loss) income attributable to CSC common stockholders
|
|
|
$
|
9
|
|
|
|
$
|
(249
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
104.1
|
%
|
|
|
21.9
|
%
|
|
|
40.0
|
%
|
|
|
25.6
|
%
|
|
|
-
|
%
|
|
|
27.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS from continuing operations
|
|
|
$
|
0.06
|
|
|
|
$
|
(1.77
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(1.30
|
)
|
|
|
$
|
1.88
|
|
|
|
$
|
1.28
|
|
Diluted EPS from continuing operations
|
|
|
$
|
0.06
|
|
|
|
$
|
(1.74
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(1.28
|
)
|
|
|
$
|
1.85
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
140.760
|
|
|
|
140.760
|
|
|
|
140.760
|
|
|
|
140.760
|
|
|
|
140.760
|
|
|
|
140.760
|
|
Diluted EPS
|
|
|
142.812
|
|
|
|
142.812
|
|
|
|
142.812
|
|
|
|
142.812
|
|
|
|
142.812
|
|
|
|
142.812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended April 3, 2015
|
(Amounts in millions, except per-share amounts)
|
|
|
As reported
|
|
|
Pension & OPEB actuarial & settlement losses
|
|
|
SEC Settlement related charges
& Other
|
|
|
Special restructuring costs
|
|
|
Tax valuation allowance benefit
|
|
|
Non-GAAP results
|
Costs of services (excludes depreciation and amortization and
restructuring costs)
|
|
|
$
|
9,534
|
|
|
|
$
|
(720
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
8,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative (excludes SEC settlement related
charges and restructuring costs)
|
|
|
$
|
1,340
|
|
|
|
$
|
(62
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
1,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations, before taxes
|
|
|
$
|
(276
|
)
|
|
|
$
|
(782
|
)
|
|
|
$
|
(200
|
)
|
|
|
$
|
(246
|
)
|
|
|
$
|
-
|
|
|
|
$
|
952
|
|
Income tax (benefit) expense
|
|
|
(312
|
)
|
|
|
(241
|
)
|
|
|
(3
|
)
|
|
|
(63
|
)
|
|
|
(264
|
)
|
|
|
259
|
|
Income from continuing operations
|
|
|
$
|
36
|
|
|
|
$
|
(541
|
)
|
|
|
$
|
(197
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
7
|
|
|
|
$
|
(541
|
)
|
|
|
$
|
(197
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
664
|
|
Less: net income (loss) attributable to noncontrolling interest, net
of tax
|
|
|
15
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17
|
|
Net (loss) income attributable to CSC common stockholders
|
|
|
$
|
(8
|
)
|
|
|
$
|
(539
|
)
|
|
|
$
|
(197
|
)
|
|
|
$
|
(183
|
)
|
|
|
$
|
264
|
|
|
|
$
|
647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
113.0
|
%
|
|
|
30.8
|
%
|
|
|
1.5
|
%
|
|
|
25.6
|
%
|
|
|
-
|
%
|
|
|
27.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS from continuing operations
|
|
|
$
|
0.15
|
|
|
|
$
|
(3.78
|
)
|
|
|
$
|
(1.38
|
)
|
|
|
$
|
(1.28
|
)
|
|
|
$
|
1.85
|
|
|
|
$
|
4.74
|
|
Diluted EPS from continuing operations
|
|
|
$
|
0.15
|
|
|
|
$
|
(3.70
|
)
|
|
|
$
|
(1.35
|
)
|
|
|
$
|
(1.26
|
)
|
|
|
$
|
1.81
|
|
|
|
$
|
4.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
142.557
|
|
|
|
142.557
|
|
|
|
142.557
|
|
|
|
142.557
|
|
|
|
142.557
|
|
|
|
142.557
|
|
Diluted EPS
|
|
|
145.780
|
|
|
|
145.780
|
|
|
|
145.780
|
|
|
|
145.780
|
|
|
|
145.780
|
|
|
|
145.780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 28, 2014
|
(Amounts in millions, except per-share amounts)
|
|
|
As reported
|
|
|
Pension and OPEB actuarial gains
|
|
|
Reversal of contingent consideration
|
|
|
Non-GAAP results
|
Costs of services (excludes depreciation and amortization and
restructuring costs)
|
|
|
$
|
2,257
|
|
|
|
$
|
132
|
|
|
|
$
|
-
|
|
|
|
$
|
2,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative (excludes SEC settlement related
charges and restructuring costs)
|
|
|
$
|
300
|
|
|
|
$
|
13
|
|
|
|
$
|
21
|
|
|
|
$
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before taxes
|
|
|
$
|
432
|
|
|
|
$
|
145
|
|
|
|
$
|
21
|
|
|
|
$
|
266
|
|
Income tax expense
|
|
|
156
|
|
|
|
64
|
|
|
|
-
|
|
|
|
92
|
|
Income from continuing operations
|
|
|
$
|
276
|
|
|
|
$
|
81
|
|
|
|
$
|
21
|
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
273
|
|
|
|
$
|
81
|
|
|
|
$
|
21
|
|
|
|
$
|
171
|
|
Less: net income attributable to noncontrolling interest, net of tax
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
Net Income attributable to CSC common stockholders
|
|
|
$
|
270
|
|
|
|
$
|
81
|
|
|
|
$
|
21
|
|
|
|
$
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
36.1
|
%
|
|
|
44.1
|
%
|
|
|
-
|
%
|
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS from continuing operations
|
|
|
$
|
1.87
|
|
|
|
$
|
0.55
|
|
|
|
$
|
0.14
|
|
|
|
$
|
1.17
|
|
Diluted EPS from continuing operations
|
|
|
$
|
1.83
|
|
|
|
$
|
0.54
|
|
|
|
$
|
0.14
|
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
145.953
|
|
|
|
145.953
|
|
|
|
145.953
|
|
|
|
145.953
|
|
Diluted EPS
|
|
|
149.251
|
|
|
|
149.251
|
|
|
|
149.251
|
|
|
|
149.251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended March 28, 2014
|
(Amounts in millions, except per-share amounts)
|
|
|
As reported
|
|
|
Pension and OPEB actuarial gains
|
|
|
Reversal of contingent consideration
|
|
|
Non-GAAP results
|
Costs of services (excludes depreciation and amortization and
restructuring costs)
|
|
|
$
|
9,272
|
|
|
|
$
|
212
|
|
|
|
$
|
-
|
|
|
|
$
|
9,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative (excludes SEC settlement related
charges and restructuring costs)
|
|
|
$
|
1,220
|
|
|
|
$
|
47
|
|
|
|
$
|
21
|
|
|
|
$
|
1,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before taxes
|
|
|
$
|
1,263
|
|
|
|
$
|
259
|
|
|
|
$
|
21
|
|
|
|
$
|
983
|
|
Income tax expense
|
|
|
383
|
|
|
|
64
|
|
|
|
-
|
|
|
|
319
|
|
Income from continuing operations
|
|
|
$
|
880
|
|
|
|
$
|
195
|
|
|
|
$
|
21
|
|
|
|
$
|
664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
968
|
|
|
|
$
|
195
|
|
|
|
$
|
21
|
|
|
|
$
|
752
|
|
Less: net income attributable to noncontrolling interest, net of tax
|
|
|
21
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21
|
|
Net income attributable to CSC common stockholders
|
|
|
$
|
947
|
|
|
|
$
|
195
|
|
|
|
$
|
21
|
|
|
|
$
|
731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
30.3
|
%
|
|
|
24.7
|
%
|
|
|
-
|
%
|
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS from continuing operations
|
|
|
$
|
5.81
|
|
|
|
$
|
1.32
|
|
|
|
$
|
0.14
|
|
|
|
$
|
4.35
|
|
Diluted EPS from continuing operations
|
|
|
$
|
5.70
|
|
|
|
$
|
1.29
|
|
|
|
$
|
0.14
|
|
|
|
$
|
4.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
147.647
|
|
|
|
147.647
|
|
|
|
147.647
|
|
|
|
147.647
|
|
Diluted EPS
|
|
|
150.761
|
|
|
|
150.761
|
|
|
|
150.761
|
|
|
|
150.761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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