Overview and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Revenue and Income Before Tax

For comparability purposes, the revenue and income before taxes related to these contracts not reflected in the results of operations for the periods referenced above are set forth below:

	Predecessor
	Five Months Ended		Fiscal Year Ended
(in millions)	March 31, 2017		October 31, 2016
Revenue	$	10	$	136
Income before taxes	$	3	$	42

Property and Equipment

The estimated useful lives of the Company’s property and equipment are as follows:

Property and Equipment	Estimated Useful Lives
Buildings	Up to 40 years
Computers and related equipment	4 to 5 years
Furniture and other equipment	2 to 15 years
Land	Not a depreciable asset
Leasehold improvements	Shorter of lease term or useful life

Property and equipment, net consisted of the following:

(in millions)	March 31, 2019			March 31, 2018
Land, buildings and leasehold improvements	$	58		$	72
Computers and related equipment	409			283
Furniture and other equipment	49			1
Total property and equipment, gross	516			356
Less: accumulated depreciation	(148		)	(66		)
Property and equipment, net	$	368		$	290

Property and equipment under capital leases included in the table above were as follows:

(in millions)	March 31, 2019			March 31, 2018
Computers and related equipment under capital lease	$	377		$	274
Less: accumulated depreciation	(130		)	(57		)
Property and equipment under capital lease, net	$	247		$	217

Depreciation expense was as follows:

	Successor				Predecessor
	Fiscal Years Ended				Five Months Ended March 31, 2017		Fiscal Year Ended October 31, 2016
(in millions)	March 31, 2019		March 31, 2018
Depreciation expense for owned property and equipment	$	9	$	12	$	6	$	14
Depreciation expense for property and equipment under capital lease	117		57		62		153
Total depreciation expense	$	126	$	69	$	68	$	167

Schedule of Finite-Lived Intangible Assets

The estimated useful lives for finite-lived intangible assets are shown below:

Intangible Assets	Estimated Useful Lives
Acquired backlog	1 year
Software	2 to 10 years
Developed technology	6 years
Program assets	4 to 14 years
Outsourcing contract costs	Contract life, excluding option years

Intangible assets were as follows:

	March 31, 2019
(in millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Program assets	$	1,525	$	(194	)	$	1,331
Software	87		(58		)	29
Developed technology	105		(22		)	83
Backlog	22		(18		)	4
Outsourcing contract costs	25		(7		)	18
Favorable leases	1		—			1
Total intangible assets	$	1,765	$	(299	)	$	1,466

	March 31, 2018
(in millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Program assets	$	900	$	(69	)	$	831
Software	75		(28		)	47
Outsourcing contract costs	20		(1		)	19
Total intangible assets	$	995	$	(98	)	$	897

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative impact of adoption on our March 31, 2019 balance sheet was as follows:

(in millions)	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Assets:
Receivables, net	$	484	$	515	$	(31	)
Deferred contract costs	35		31		4
Other assets	192		184		8
Liabilities and Stockholders’ Equity:
Deferred revenue and advance contract payments	$	33	$	56	$	(23	)
Deferred tax liabilities	171		167		4
Other long-term liabilities	271		279		(8		)
Total stockholders’ equity	2,162		2,154		8