Business Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Business Segments

Business Segments

During the quarter ended March 31, 2017, the Company completed its business reorganization, which resulted in identification of new reportable segments. The Company's operations and the new reportable segments are aligned around the markets it serves. The Company commenced operating and reporting under the new organizational structure effective the beginning of fiscal 2017.

At March 31, 2017, the Company's reportable segments were:

• Defense Solutions – delivers cutting edge technology and services to the DoD, military services, the U.S. Intelligence Community, DHS, agencies of U.S. allies abroad and other federal and civilian customers. The Company's Defense Solutions business is focused on cybersecurity, data analytics, IT modernization and software development, as well as technology to support intelligence, surveillance and reconnaissance services.

• Civil – provides services and solutions to civil agencies of the U.S. Government and commercial customers. The Company's Civil business is focused on software development, operations and sustainment, enterprise IT modernization, systems engineering and cyber services.

• Health – provides services and solutions to the Defense Health Agency, Veterans Administration, HHS, other civil health agencies of the U.S. Government and commercial healthcare providers. The Company's Health business is focused on enterprise IT modernization, software development, data analytics, electronic health record implementation, mission critical operations and sustainment, life sciences and public health.

• Corporate – includes the operations of various corporate activities and certain expense items that are not reimbursed by our U.S. Government customers.

The segment information for the periods presented, of which the prior period has been recast to reflect the Company's current reportable segment structure, was as follows:

	Three Months Ended
	March 31, 2017			April 1, 2016
	(in millions)
Revenues:
Defense Solutions	$	1,294		$	780
Civil	842			361
Health	443			171
Corporate	1			—
Total revenues	$	2,580		$	1,312
Operating income (loss):
Defense Solutions	$	79		$	71
Civil	54			22
Health	47			16
Corporate	(39		)	(20		)
Total operating income	$	141		$	89

Asset information by segment is not a key measure of performance used by the chief operating decision maker, currently the chairman and chief executive officer. "Other income, net," "Interest income," "Interest expense" and "Income tax expense," as reported in the condensed consolidated financial statements, are not part of operating income and are primarily recorded within the Corporate segment. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in numerous indirect cost pools, which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base.