Segment Information

We operate based on two reportable segments: (1) Defense and Intelligence, and (2) Civilian and Health Care. Our reportable segments and their respective operations are defined as follows:

Defense and Intelligence

Through its Defense and Intelligence business, Perspecta provides cybersecurity, data analytics, digital transformation, information technology modernization, and agile software development, as well as technology to support intelligence, surveillance, and reconnaissance services to the DoD, intelligence community, branches of the U.S. Armed Forces, and other DoD agencies.

Key competitive differentiators for the Defense and Intelligence segment include global scale, solution objectivity, depth of industry expertise, strong partnerships, vendor and product independence and end-to-end solutions and capabilities. Evolving business demands such as globalization, fast-developing economies, government regulation and growing concerns around risk, security, and compliance drive demand for these offerings.

Civilian and Health Care

Through its Civilian and Health Care business, Perspecta provides enterprise IT transformation and modernization, application development and modernization, enterprise security, risk decision support, operations and sustainment, systems engineering, applied research, cyber services, and cloud transformation to the Departments of Homeland Security, Justice, and Health and Human Services, as well as other federal civilian and state and local government agencies.

Segment Measures

The following table summarizes operating results regularly provided to the chief operating decision maker by reportable segment:



	Three Months Ended				Six Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Revenue
Defense and Intelligence	$	777	$	702	$	1,529	$	1,139
Civilian and Health Care	395		366		750		722
Total revenue	$	1,172	$	1,068	$	2,279	$	1,861

Segment profit⁽¹⁾
Defense and Intelligence	$	113	$	87	$	231	$	123
Civilian and Health Care	40		41		73		102
Total segment profit	$	153	$	128	$	304	$	225

Depreciation and amortization
Defense and Intelligence	$	24	$	18	$	49	$	37
Civilian and Health Care	16		20		44		40
Amortization of acquired intangible assets	50		36		98		61
Total depreciation and amortization	$	90	$	74	$	191	$	138

⁽¹⁾The segment profit for the three and six months ended September 30, 2018 was revised to reflect the change to exclude the amortization expense on intangible assets acquired in business combinations as disclosed in Note 19 – “Segment Information” to the financial statements of our Annual Report on Form 10‑K for the year ended March 31, 2019.

Reconciliation of Reportable Segment Profit to the Statements of Operations

The Company’s management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenue less segment cost of services, selling, general and administrative and depreciation and amortization, excluding certain operating expenses managed at the corporate level. These unallocated costs include certain corporate function costs, stock-based compensation expense, amortization of acquired intangible assets, certain nonrecoverable restructuring costs, separation, transaction and integration-related costs and net periodic benefit cost.



	Three Months Ended						Six Months Ended
(in millions)	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Total segment profit	$	153		$	128		$	304		$	225
Not allocated to segments:
Stock-based compensation	(10		)	(1		)	(15		)	(3		)
Amortization of acquired intangible assets	(50		)	(36		)	(98		)	(61		)
Restructuring costs	(2		)	—			(4		)	—
Separation, transaction and integration-related costs	(20		)	(21		)	(39		)	(65		)
Interest expense, net	(36		)	(37		)	(71		)	(47		)
Other unallocated, net	2			3			2			28
Income before taxes	$	37		$	36		$	79		$	77

Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment is not disclosed.