Segment Information

The Company’s chief operating decision maker, the Chief Executive Officer, evaluates Perspecta’s consolidated operations based on two reportable segments: (1) Defense and Intelligence, and (2) Civilian and Health Care. 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.

In the following tables, certain corporate activity is reported separately to reconcile the Company’s segment information to the statements of operations. The accounting policies of the reportable segments are the same as those described herein in Note 1 – “Overview and Summary of Significant Accounting Policies.”

Segment Measures

The following tables summarize operating results regularly provided to the chief operating decision maker by reportable segment and a reconciliation of those reporting results to the statements of operations for the relevant periods.

Revenue

Our revenue by reportable segment was as follows:



	Fiscal Years Ended
(in millions)	March 31, 2020		March 31, 2019		March 31, 2018
Defense and Intelligence	$	3,101	$	2,587	$	1,416
Civilian and Health Care	1,403		1,443		1,403
Total revenue	$	4,504	$	4,030	$	2,819

Segment Profit

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, share-based compensation expense, amortization of acquired intangible assets, impairment charges, certain nonrecoverable restructuring costs, separation, transaction and integration-related costs, net periodic benefit cost and gain or loss on sale of assets.

Our segment profit by reportable segment was as follows:



	Fiscal Years Ended
(in millions)	March 31, 2020			March 31, 2019			March 31, 2018
Defense and Intelligence	$	444		$	331		$	168
Civilian and Health Care	152			196			222
Total segment profit	596			527			390
Not allocated to segments:
Share-based compensation	(23		)	(11		)	(6		)
Amortization of acquired intangible assets	(206		)	(165		)	(69		)
Impairment charges	(796		)	—			—
Restructuring costs	(17		)	(4		)	(14		)
Separation, transaction and integration-related costs	(85		)	(106		)	(90		)
Interest expense, net	(137		)	(121		)	(12		)
Other unallocated, net	(62		)	(8		)	—
(Loss) income before taxes	$	(730	)	$	112		$	199

We incurred non-cash, pre-tax impairment charges of approximately $796 million in the fourth quarter of fiscal year 2020 as a result of the loss of the NGEN re-compete discussed further in Note 8 – “Goodwill” and Note 9 – “Intangible Assets.” These charges were recognized at a corporate level and were not allocated to the segments.

Total Assets by Segment

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.

Depreciation and Amortization

Our depreciation and amortization expense by reportable segment was as follows:



	Fiscal Years Ended
(in millions)	March 31, 2020		March 31, 2019		March 31, 2018
Defense and Intelligence	$	66	$	74	$	34
Civilian and Health Care	102		91		64
Amortization of acquired intangible assets	206		165		69
Total depreciation and amortization	$	374	$	330	$	167