EX-99.1 2 csc8-kxex991revisednonxgaa.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1


COMPUTER SCIENCES CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


On November 27, 2015, Computer Sciences Corporation ("CSC" or the "Company") completed the previously announced separation of its wholly owned subsidiary, Computer Sciences Government Holdings, Inc. (renamed CSRA, or “CSRA”) through a one-for-one pro rata distribution of all CSRA common stock to CSC stockholders of record at the close of business on November 18, 2015, the record date of the distribution (“the Distribution”). CSRA is now an independent public company trading under the symbol “CSRA” on the New York Stock Exchange.

On December 3, 2015, CSC filed unaudited pro forma condensed consolidated statements of operations of CSC for the six months ended October 2, 2015 and October 3, 2014 and for each of the fiscal years ended April 3, 2015, March 28, 2014, and March 29, 2013. These financial statements assume the Distribution had occurred on March 31, 2012. In the same filing, CSC also filed an unaudited pro forma Condensed Consolidated Balance Sheet of CSC as of October 2, 2015, which assumes the Distribution had occurred on October 2, 2015. Beginning in the third quarter of fiscal 2016, CSRA’s historical financial results for periods prior to the Distribution will be reflected in CSC’s consolidated condensed financial statements as discontinued operations.

In an effort to provide investors with additional information regarding CSC’s unaudited pro forma consolidated condensed statements of operations for the six months ended October 2, 2015 and the fiscal year ended April 3, 2015 as determined by U.S. generally accepted accounting principles (GAAP), the Company is also providing preliminary historical non-GAAP information, and certain further adjustments thereto, which management believes provides useful information to investors. This information includes: operating income, adjusted operating income, 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 historical 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.

The unaudited historical financial statements presented below should be read in conjunction with:

I.
The audited consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” include in CSC’s Form 10-K for the fiscal year ended April 3, 2015,
II.
The unaudited consolidated condensed financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in CSC’s Form 10-Q for the six months ended October 2, 2015, and
III.
The unaudited pro forma condensed consolidated statements of operations of CSC for the six months ended October 2, 2015 and October 3, 2014 and for each of the fiscal years ended April 3, 2015, March 28, 2014, and March 29, 2013, as well as the unaudited pro forma Condensed Consolidated Balance Sheet of CSC as of October 2, 2015, which were filed via 8-K on December 3, 2015.

The Historical columns in the unaudited pro forma consolidated condensed financial statements reflect CSC’s historical financial statements for the periods presented and do not reflect any adjustments related to the Distribution and related events.

The CSRA Separation columns in the unaudited pro forma consolidated condensed financial statements were derived from the historical combined financial statements and the combined financial statements included in the CSRA Form S-1 filed with the SEC December 9, 2015 and the CSRA Form 10 filed with the SEC on November 6, 2015.

The pro forma adjustments columns reflects the exclusion of previously allocated corporate overhead costs as well as the inclusion of certain multi-employer pension and postretirement costs and actuarial gains / losses that were not reflected in the CSRA combined financial statements in the CSRA Form 10.

The pro forma adjustments represent the Company's current best estimates and may differ from those that will be calculated to report CSRA as discontinued operations in CSC’s future filings. The unaudited pro forma condensed consolidated financial statements are provided for illustrative and informational purposes only and are not intended to represent or be indicative of what CSC’s results of operations or financial position would have been had the

Page 1



separation occurred on the dates indicated. The unaudited pro forma condensed consolidated financial statements also should not be considered representative of CSC’s future results of operations or financial position.

See combined notes to the unaudited pro forma condensed consolidated financial statements for a more detailed discussion of these transactions.



Page 2



COMPUTER SCIENCES CORPORATION
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited)

 
 
Quarter ended October 2, 2015
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,712

 
$
(969
)
 
$
2

 
(A)
 
$
1,745

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
1,970

 
(757
)
 
24

 
(A)(B)(C)
 
1,237

Selling, general and administrative (excludes restructuring costs)
 
286

 
(44
)
 
22

 
(B)
 
264

Depreciation and amortization
 
203

 
(35
)
 
—

 
 
 
168

Restructuring costs
 
6

 
—

 
(1
)
 
(C)
 
5

Separation and merger costs
 
46

 
(41
)
 
—

 
 
 
5

Interest expense
 
35

 
(6
)
 
—

 
 
 
29

Interest income
 
(7
)
 
—

 
—

 
 
 
(7
)
Other (income) expense, net
 
(3
)
 
2

 
(2
)
 
(A)
 
(3
)
Total costs and expenses
 
2,536

 
(881
)
 
43

 
 
 
1,698

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
176

 
(88
)
 
(41
)
 
 
 
47

Income tax expense (benefit)
 
3

 
(35
)
 
(10
)
 
(D)
 
(42
)
Income from continuing operations
 
173

 
(53
)
 
(31
)
 
 
 
89

Less: net income attributable to noncontrolling interest, net of tax
 
6

 
(6
)
 
—

 
 
 
—

Net income attributable to CSC common stockholders from continuing operations
 
$
167

 
$
(47
)
 
$
(31
)
 
 
 
$
89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share from continuing operations
 
$
1.21

 
 
 
 
 
 
 
$
0.64

Diluted earnings per share from continuing operations
 
$
1.19

 
 
 
 
 
 
 
$
0.63

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
138.295

 
 
 
 
 
 
 
138.295

   Diluted EPS
 
140.532

 
 
 
 
 
 
 
140.532


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.


Page 3





 
 
Quarter ended July 3, 2015
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,761

 
$
(959
)
 
$
2

 
(A)
 
$
1,804

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
2,026

 
(775
)
 
21

 
(A)(B)
 
1,272

Selling, general and administrative (excludes restructuring costs)
 
284

 
(41
)
 
25

 
(B)
 
268

Depreciation and amortization
 
207

 
(33
)
 
—

 
 
 
174

Restructuring costs
 
—

 
—

 
—

 
 
 
—

Separation costs
 
18

 
(15
)
 
—

 
 
 
3

Interest expense
 
35

 
(5
)
 
—

 
 
 
30

Interest income
 
(11
)
 
—

 
—

 
 
 
(11
)
Other (income) expense, net
 
(26
)
 
19

 
3

 
(A)(E)
 
(4
)
Total costs and expenses
 
2,533

 
(850
)
 
49

 
 
 
1,732

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
228

 
(109
)
 
(47
)
 
 
 
72

Income tax expense (benefit)
 
64

 
(42
)
 
(12
)
 
(D)
 
10

Income from continuing operations
 
164

 
(67
)
 
(35
)
 
 
 
62

Less: net income attributable to noncontrolling interest, net of tax
 
4

 
(4
)
 
—

 
 
 
—

Net income attributable to CSC common stockholders from continuing operations
 
$
160

 
$
(63
)
 
$
(35
)
 
 
 
$
62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share from continuing operations
 
$
1.16

 
 
 
 
 
 
 
$
0.45

Diluted earnings per share from continuing operations
 
$
1.14

 
 
 
 
 
 
 
$
0.44

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
137.917

 
 
 
 
 
 
 
137.917

   Diluted EPS
 
140.801

 
 
 
 
 
 
 
140.801


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.



Page 4



 
 
Quarter ended April 3, 2015
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,909

 
$
(1,001
)
 
$
2

 
(A)
 
$
1,910

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
2,433

 
(812
)
 
(3
)
 
(A)(B)(C)
 
1,618

Selling, general and administrative (excludes SEC settlement related charges and restructuring costs)
 
294

 
(49
)
 
21

 
(B)
 
266

Selling, general and administrative - SEC settlement related charges
 
2

 
—

 
—

 
 
 
2

Depreciation and amortization
 
215

 
(33
)
 
—

 
 
 
182

Restructuring costs
 
246

 
—

 
(5
)
 
(C)
 
241

Interest expense
 
36

 
(6
)
 
—

 
 
 
30

Interest income
 
(6
)
 
—

 
—

 
 
 
(6
)
Other expense (income), net
 
6

 
(2
)
 
1

 
(A)
 
5

Total costs and expenses
 
3,226

 
(902
)
 
14

 
 
 
2,338

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
(317
)
 
(99
)
 
(12
)
 
 
 
(428
)
Income tax (benefit) expense
 
(330
)
 
(38
)
 
71

 
(D)
 
(297
)
Income (loss) from continuing operations
 
13

 
(61
)
 
(83
)
 
 
 
(131
)
Less: net income attributable to noncontrolling interest, net of tax
 
4

 
(4
)
 
—

 
 
 
—

Net income (loss) attributable to CSC common stockholders from continuing operations
 
$
9

 
$
(57
)
 
$
(83
)
 
 
 
$
(131
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share from continuing operations
 
$
0.06

 
 
 
 
 
 
 
$
(0.93
)
Diluted earnings per share from continuing operations
 
$
0.06

 
 
 
 
 
 
 
$
(0.93
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
140.760

 
 
 
 
 
 
 
140.760

   Diluted EPS
 
142.812

 
 
 
 
 
 
 
140.760


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.



Page 5



 
 
Quarter ended January 2, 2015
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,947

 
$
(1,000
)
 
$
2

 
(A)
 
$
1,949

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
2,530

 
(816
)
 
(142
)
 
(A)(B)
 
1,572

Selling, general and administrative (excludes SEC settlement related charges and restructuring costs)
 
356

 
(53
)
 
19

 
(B)
 
322

Selling, general and administrative - SEC settlement related charges
 
195

 
—

 
—

 
 
 
195

Depreciation and amortization
 
238

 
(33
)
 
—

 
 
 
205

Restructuring costs
 
12

 
—

 
—

 
 
 
12

Interest expense
 
37

 
(5
)
 
—

 
 
 
32

Interest income
 
(4
)
 
—

 
—

 
 
 
(4
)
Other expense (income), net
 
1

 
(2
)
 
2

 
(A)
 
1

Total costs and expenses
 
3,365

 
(909
)
 
(121
)
 
 
 
2,335

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
(418
)
 
(91
)
 
123

 
 
 
(386
)
Income tax (benefit) expense
 
(105
)
 
(35
)
 
(52
)
 
(D)
 
(192
)
Loss from continuing operations
 
(313
)
 
(56
)
 
175

 
 
 
(194
)
Less: net income attributable to noncontrolling interest, net of tax
 
1

 
(1
)
 
—

 
 
 
—

Net loss attributable to CSC common stockholders from continuing operations
 
$
(314
)
 
$
(55
)
 
$
175

 
 
 
$
(194
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share from continuing operations
 
$
(2.23
)
 
 
 
 
 
 
 
$
(1.38
)
Diluted earnings (loss) per share from continuing operations
 
$
(2.23
)
 
 
 
 
 
 
 
$
(1.38
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
140.637

 
 
 
 
 
 
 
140.637

   Diluted EPS
 
140.637

 
 
 
 
 
 
 
140.637


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.



Page 6



 
 
Quarter ended October 3, 2014
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
3,080

 
$
(1,044
)
 
$
3

 
(A)
 
$
2,039

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
2,207

 
(826
)
 
21

 
(A)(B)
 
1,402

Selling, general and administrative (excludes restructuring costs)
 
346

 
(49
)
 
17

 
(B)
 
314

Depreciation and amortization
 
252

 
(36
)
 
—

 
 
 
216

Restructuring costs
 
(7
)
 
—

 
—

 
 
 
(7
)
Interest expense
 
36

 
(5
)
 
—

 
 
 
31

Interest income
 
(5
)
 
—

 
—

 
 
 
(5
)
Other expense (income), net
 
6

 
(1
)
 
1

 
(A)
 
6

Total costs and expenses
 
2,835

 
(917
)
 
39

 
 
 
1,957

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
245

 
(127
)
 
(36
)
 
 
 
82

Income tax (benefit) expense
 
68

 
(47
)
 
2

 
(D)
 
23

Income from continuing operations
 
177

 
(80
)
 
(38
)
 
 
 
59

Less: net income attributable to noncontrolling interest, net of tax
 
5

 
(5
)
 
—

 
 
 
—

Net income attributable to CSC common stockholders from continuing operations
 
$
172

 
$
(75
)
 
$
(38
)
 
 
 
$
59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share from continuing operations
 
$
1.20

 
 
 
 
 
 
 
$
0.41

Diluted earnings per share from continuing operations
 
$
1.18

 
 
 
 
 
 
 
$
0.41

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
143.279

 
 
 
 
 
 
 
143.279

   Diluted EPS
 
145.596

 
 
 
 
 
 
 
145.596


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.



Page 7



 
 
Quarter ended July 4, 2014
(Amounts in millions, except per-share amounts)
 
Historical CSC
 
CSRA Separation
 
Pro Forma Adjustments
 
Notes
 
Pro Forma* CSC Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
3,237

 
$
(1,020
)
 
$
2

 
(A)
 
$
2,219

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
2,364

 
(818
)
 
21

 
(A)(B)
 
1,567

Selling, general and administrative (excludes restructuring costs)
 
344

 
(43
)
 
17

 
(B)
 
318

Depreciation and amortization
 
272

 
(35
)
 
—

 
 
 
237

Restructuring costs
 
10

 
—

 
—

 
 
 
10

Interest expense
 
39

 
(6
)
 
—

 
 
 
33

Interest income
 
(5
)
 
—

 
—

 
 
 
(5
)
Other (income) expense, net
 
(1
)
 
(1
)
 
—

 
 
 
(2
)
Total costs and expenses
 
3,023

 
(903
)
 
38

 
 
 
2,158

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
214

 
(117
)
 
(36
)
 
 
 
61

Income tax expense
 
55

 
(41
)
 
(2
)
 
(D)
 
12

Income from continuing operations
 
159

 
(76
)
 
(34
)
 
 
 
49

Less: net income attributable to noncontrolling interest, net of tax
 
5

 
(5
)
 
—

 
 
 
—

Net income attributable to CSC common stockholders from continuing operations
 
$
154

 
$
(71
)
 
$
(34
)
 
 
 
$
49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share from continuing operations
 
$
1.06

 
 
 
 
 
 
 
$
0.33

Diluted earnings per share from continuing operations
 
$
1.03

 
 
 
 
 
 
 
$
0.33

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
   Basic EPS
 
145.338

 
 
 
 
 
 
 
145.338

   Diluted EPS
 
148.251

 
 
 
 
 
 
 
148.251


*Pro forma as defined under Article 11 of SEC Regulation S-X

See accompanying notes.








Page 8



COMPUTER SCIENCES CORPORATION
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The unaudited pro forma consolidated condensed statements of earnings for the quarters ended October 2, 2015, July 3, 2015, April 3, 2015, January 2, 2015, October 3, 2014, and July 4, 2014 include the following pro forma adjustments:

(A)
Reflects the removal of related party revenue and costs.

(B)
Reflects adjustments to the CSRA Separation amounts to exclude certain general corporate overhead costs which were historically allocated to CSRA which were not directly attributable to CSRA, stock compensation expense of CSC Board of Directors and corporate executives, and adjustments to include actuarial gains and losses, settlement charges, and net periodic benefit costs related to multi-employer pension plans. See the table below for a detail of these amounts.
Increase (decrease) in millions
 
Quarter Ended
 
 
October 2, 2015
 
July 3, 2015
 
April 3, 2015
 
January 2, 2014
 
October 3, 2014
 
July 4, 2014
Cost of Services
 
 
 
 
 
 
 
 
 
 
 
 
Pension related adjustments
 
$
11

 
$
10

 
$
(12
)
 
$
(155
)
 
$
10

 
$
9

Corporate overhead and stock compensation adjustments
 
10

 
9

 
2

 
11

 
8

 
10

Net adjustments described in footnotes (A) and (C)
 
3

 
2

 
7

 
2

 
3

 
2

Total
 
$
24

 
$
21


$
(3
)

$
(142
)
 
$
21

 
$
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
 
 
 
 
Pension related adjustments
 
$
—

 
$
—

 
$
—

 
$
(2
)
 
$
—

 
$
—

Corporate overhead and stock compensation adjustments
 
22

 
25

 
21

 
21

 
17

 
17

Total
 
$
22

 
$
25


$
21

 
$
19

 
$
17

 
$
17

 
 
 
 
 
 
 
 
 
 
 
 
 

(C)
Reflects the reclassification of restructuring costs from cost of services to restructuring costs to conform to CSC's historical financial statement presentation.
 
(D)
Reflects the pro forma tax adjustments related to the Separation.

(E)
Reflects the reversal of the goodwill adjustment recorded in the financial statements of CSRA on a carve-out basis attributable to the sale of Welkin.






Page 9



Pro Forma Business Segment Revenues, Operating Income and Operating Margins
(preliminary and unaudited)

Pro Forma Revenues by Segment

Fiscal 2016
 
 
Quarter Ended
(Amounts in millions)
 
October 2, 2015
 
July 3, 2015
Global Business Services
 
$
891

 
$
919

Global Infrastructure Services
 
854

 
885

Total Revenue
 
$
1,745

 
$
1,804


Fiscal 2015
 
 
Quarter Ended
(Amounts in millions)
 
April 3, 2015
 
January 2, 2015
 
October 3, 2014
 
July 4, 2014
Global Business Services
 
$
980

 
$
965

 
$
1,003

 
$
1,088

Global Infrastructure Services
 
930

 
984

 
1,036

 
1,131

Total Revenue
 
$
1,910

 
$
1,949

 
$
2,039

 
$
2,219



Pro Forma Operating Income and Operating Margins by Segment

Fiscal 2016
 
 
Quarter Ended
(Amounts in millions)
 
October 2, 2015
 
July 3, 2015
Global Business Services
 
$
101

 
$
97

Global Infrastructure Services
 
64

 
53

Corporate
 
(35
)
 
(6
)
Total Operating Income
 
$
130

 
$
144


Fiscal 2015
 
 
Quarter Ended
(Amounts in millions)
 
April 3, 2015
 
January 2, 2015
 
October 3, 2014
 
July 4, 2014
Global Business Services
 
$
39

 
$
128

 
$
130

 
$
108

Global Infrastructure Services
 
(49
)
 
72

 
68

 
71

Corporate
 
(29
)
 
(22
)
 
(20
)
 
(37
)
Total Operating Income
 
$
(39
)
 
$
178

 
$
178

 
$
142





Page 10



Non-GAAP Financial Measures

The following tables reconcile non-GAAP financial measures of operating income and adjusted operating income 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, as described below. 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.

Adjustments to operating results include:

•
Certain CSRA overhead costs - Reflects costs historically allocated to CSRA but not included in discontinued operations based on Accounting Standards Codification Subtopic 205-20 "Presentation of Financial Statements - Discontinued Operations" (ASC 205-20). These costs are expected to be largely eliminated on a prospective basis.

•
U.S. Pension and OPEB - Reflects the impact of certain US pension and other postretirement benefit (OPEB) plans historically included in CSC’s financial results that have been transferred to CSRA as part of the previously announced separation.

•
Pension and OPEB actuarial & settlement losses - Reflects pension and OPEB actuarial and settlement losses from mark-to-market accounting.

•
Separation and other transaction costs - Reflects non-recurring costs related to CSC’s (1) previously announced separation and (2) previously announced acquisitions.

•
SEC settlement-related charges & other - Reflects costs associated with certain SEC charges and settlements.

•
Special restructuring costs - Reflects the impact from certain special accelerated workforce optimization and real estate charges.

•
Tax valuation allowance - Reflects the release of tax valuation allowances in certain jurisdictions.

•
Tax adjustment - Reflects the application of a 20% tax rate, which is at the low end of the prospective targeted effective tax rate range of 20% to 25% and effectively excludes the impact of discrete tax adjustments in the periods presented below.


GAAP Reconciliations

Operating Income and Adjusted Operating Income
(preliminary and unaudited)

CSC defines operating income as revenue less costs of services, depreciation and amortization expense, restructuring costs and segment selling, general and administrative (SG&A) expense. Operating income, as defined by CSC, excludes corporate G&A, actuarial and settlement gains and losses related to CSC's pension and other post-employment benefit (OPEB) plans, and separation costs. Operating margin is defined as operating income as a percentage of revenue.

Adjusted operating income is computed by excluding from operating income certain CSRA overhead costs that were not included in discontinued operations based on ASC 205-20, certain costs related to U.S. Pension and OPEB, special restructuring costs, and the transaction costs associated with acquisitions.

Page 11




A reconciliation of consolidated operating income to income from continuing operations, before taxes is as follows:

Fiscal 2016
 
 
Quarter Ended
(Amounts in millions)
 
October 2, 2015
 
July 3, 2015
Adjusted Operating income
 
$
156

 
$
148

Certain CSRA overhead costs
 
(18
)
 
(18
)
U.S. Pension & OPEB
 
14

 
14

Special restructuring costs
 
(20
)
 
—

Transaction costs
 
(2
)
 
—

Operating income
 
$
130

 
$
144

Corporate G&A
 
(59
)
 
(54
)
Separation costs
 
(5
)
 
(3
)
Interest expense
 
(29
)
 
(30
)
Interest income
 
7

 
11

Other income, net
 
3

 
4

Income from continuing operations before taxes
 
$
47

 
$
72


Fiscal 2015
 
 
Quarter Ended
(Amounts in millions)
 
April 3, 2015
 
January 2, 2015
 
October 3, 2014
 
July 4, 2014
Adjusted Operating income
 
$
196

 
$
174

 
$
176

 
$
141

Certain CSRA overhead costs
 
(7
)
 
(9
)
 
(11
)
 
(11
)
U.S. Pension & OPEB
 
13

 
13

 
13

 
12

Special restructuring costs
 
(241
)
 
—

 
—

 
—

Operating income
 
$
(39
)
 
$
178

 
$
178

 
$
142

Corporate G&A
 
(57
)
 
(55
)
 
(64
)
 
(54
)
Pension & OPEB actuarial & settlement losses
 
(298
)
 
(285
)
 
—

 
(1
)
SEC settlement related charges and other
 
(5
)
 
(195
)
 
—

 
—

Interest expense
 
(30
)
 
(32
)
 
(31
)
 
(33
)
Interest income
 
6

 
4

 
5

 
5

Other income, net
 
(5
)
 
(1
)
 
(6
)
 
2

Income (loss) from continuing operations before taxes
 
$
(428
)
 
$
(386
)
 
$
82

 
$
61




Page 12



Adjusted Segment Operating Income and Operating Margin
(preliminary and unaudited)

Adjusted operating income is computed by excluding from operating income certain CSRA overhead costs, certain costs related to U.S. Pension & OPEB, the impact of the special restructuring charges, and the transaction costs associated with acquisitions. Reconciliations of adjusted operating income to operating income, for the quarters ended October 2, 2015, July 3, 2015, April 3, 2015, January 2, 2015, October 3, 2014, and July 4, 2014, respectively, are as follows:

Fiscal 2016

 
 
Quarter Ended October 2, 2015
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Special restructuring costs
 
Transaction costs
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
101

 
$
—

 
$
4

 
$
(12
)
 
$
(1
)
 
$
110

 
12.3
%
Global Infrastructure Services
 
64

 
—

 
10

 
(8
)
 
(1
)
 
63

 
7.4

     Commercial
 
165

 
—

 
14

 
(20
)
 
(2
)
 
173

 
9.9
%
Corporate
 
(35
)
 
(18
)
 
—

 
—

 
—

 
(17
)
 
—

     Total
 
$
130

 
$
(18
)
 
$
14

 
$
(20
)
 
$
(2
)
 
$
156

 
8.9
%

 
 
Quarter Ended July 3, 2015
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
97

 
$
—

 
$
4

 
$
93

 
10.1
%
Global Infrastructure Services
 
53

 
—

 
10

 
43

 
4.9

     Commercial
 
150

 
—

 
14

 
136

 
7.5
%
Corporate
 
(6
)
 
(18
)
 
—

 
12

 
—

     Total
 
$
144

 
$
(18
)
 
$
14

 
$
148

 
8.2
%


Fiscal 2015

 
 
Quarter Ended April 3, 2015
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Special restructuring costs
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
39

 
$
—

 
$
4

 
$
(125
)
 
$
160

 
16.3
%
Global Infrastructure Services
 
(49
)
 
—

 
9

 
(112
)
 
54

 
5.8

     Commercial
 
(10
)
 
—

 
13

 
(237
)
 
214

 
11.2
%
Corporate
 
(29
)
 
(7
)
 
—

 
(4
)
 
(18
)
 
—

     Total
 
$
(39
)
 
$
(7
)
 
$
13

 
$
(241
)
 
$
196

 
10.3
%

 
 
Quarter Ended January 2, 2015
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
128

 
$
—

 
$
4

 
$
124

 
12.8
%
Global Infrastructure Services
 
72

 
—

 
9

 
63

 
6.4

     Commercial
 
200

 
—

 
13

 
187

 
9.6
%
Corporate
 
(22
)
 
(9
)
 
—

 
(13
)
 
—

     Total
 
$
178

 
$
(9
)
 
$
13

 
$
174

 
8.9
%


Page 13



 
 
Quarter Ended October 3, 2014
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
130

 
$
—

 
$
4

 
$
126

 
12.6
%
Global Infrastructure Services
 
68

 
—

 
9

 
59

 
5.7

     Commercial
 
198

 
—

 
13

 
185

 
9.1
%
Corporate
 
(20
)
 
(11
)
 
—

 
(9
)
 
—

     Total
 
$
178

 
$
(11
)
 
$
13

 
$
176

 
8.6
%

 
 
Quarter Ended July 4, 2014
(Amounts in millions)
 
Operating income
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Adjusted operating income
 
Adjusted operating margin
Global Business Solutions
 
$
108

 
$
—

 
$
4

 
$
104

 
9.6
%
Global Infrastructure Services
 
71

 
—

 
8

 
63

 
5.6

     Commercial
 
179

 
—

 
12

 
167

 
7.5
%
Corporate
 
(37
)
 
(11
)
 
—

 
(26
)
 
—

     Total
 
$
142

 
$
(11
)
 
$
12

 
$
141

 
6.4
%





Page 14



Non-GAAP Results
(preliminary and unaudited)

Non-GAAP results are financial measures calculated by excluding certain items, which management believes are not indicative of the Company's operating performance post. A reconciliation of select non-GAAP results to reported results is as follows:

Fiscal 2016

 
 
Quarter ended October 2, 2015
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Separation & other transaction costs
 
SEC settlement-related items
 
Special restructuring costs
 
Tax valuation allowance
 
Tax adjustment
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,745

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,745

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,237

 
$
(17
)
 
$
12

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,232

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative (excludes restructuring costs)
 
$
264

 
$
(16
)
 
$
2

 
$
(2
)
 
$
(2
)
 
$
—

 
$
—

 
$
—

 
$
246

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
47

 
$
33

 
$
(14
)
 
$
7

 
$
2

 
$
20

 
$
—

 
$
—

 
$
95

Income tax (benefit) expense
 
(42
)
 
13

 
(6
)
 
3

 
1

 
6

 
53

 
(9
)
 
19

Income (loss) from continuing operations
 
$
89

 
$
20

 
$
(8
)
 
$
4

 
$
1

 
$
14

 
$
(53
)
 
$
9

 
$
76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
(89.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
0.64

 
$
0.14

 
$
(0.06
)
 
$
0.03

 
$
0.01

 
$
0.10

 
$
(0.38
)
 
$
0.07

 
$
0.55

Diluted EPS from continuing operations
 
$
0.63

 
$
0.14

 
$
(0.06
)
 
$
0.03

 
$
0.01

 
$
0.10

 
$
(0.38
)
 
$
0.06

 
$
0.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
138.295

 
138.295

 
138.295

 
138.295

 
138.295

 
138.295

 
138.295

 
138.295

 
138.295

Diluted EPS
 
140.532

 
140.532

 
140.532

 
140.532

 
140.532

 
140.532

 
140.532

 
140.532

 
140.532


(1) Refer to page 3

Page 15



 
 
Quarter ended July 3, 2015
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Separation& other transaction costs
 
SEC settlement-related items
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,804

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,804

 
 
 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,272

 
$
(17
)
 
$
12

 
$
—

 
$
—

 
$
1,267

Selling, general and administrative (excludes restructuring costs)
 
$
268

 
$
(16
)
 
$
2

 
$
—

 
$
(3
)
 
$
251

 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
72

 
$
33

 
$
(14
)
 
$
3

 
$
3

 
$
97

Income tax expense (benefit)
 
10

 
13

 
(5
)
 
1

 
1

 
20

Income (loss) from continuing operations
 
$
62

 
$
20

 
$
(9
)
 
$
2

 
$
2

 
$
77

 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
13.9
%
 
 
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
0.45

 
$
0.15

 
$
(0.07
)
 
$
0.01

 
$
0.01

 
$
0.56

Diluted EPS from continuing operations
 
$
0.44

 
$
0.14

 
$
(0.06
)
 
$
0.01

 
$
0.01

 
$
0.55

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
137.917

 
137.917

 
137.917

 
137.917

 
137.917

 
137.917

Diluted EPS
 
140.801

 
140.801

 
140.801

 
140.801

 
140.801

 
140.801


(1) Refer to page 4.


Page 16





Fiscal 2015

 
 
Quarter ended April 3, 2015
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Pension & OPEB actuarial & settlement losses
 
SEC settlement related charges
 
Special restruct-uring costs
 
Tax valuation allowance
 
Tax adjustment
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,910

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,910

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,618

 
$
(6
)
 
$
11

 
$
(281
)
 
$
(3
)
 
$
—

 
$
—

 
$
—

 
$
1,339

Selling, general and administrative (excludes SEC settlement related charges and restructuring costs)
 
$
266

 
$
(18
)
 
$
2

 
$
(17
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
233

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
(428
)
 
$
24

 
$
(13
)
 
$
298

 
$
5

 
$
241

 
$
—

 
$
—

 
$
127

Income tax (benefit) expense
 
(297
)
 
9

 
(5
)
 
69

 
2

 
50

 
264

 
(67
)
 
25

Income (loss) from continuing operations
 
$
(131
)
 
$
15

 
$
(8
)
 
$
229

 
$
3

 
$
191

 
$
(264
)
 
$
67

 
$
102

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
69.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
(0.93
)
 
$
0.11

 
$
(0.06
)
 
$
1.63

 
$
0.02

 
$
1.36

 
$
(1.88
)
 
$
0.48

 
$
0.72

Diluted EPS from continuing operations
 
$
(0.93
)
 
$
0.11

 
$
(0.06
)
 
$
1.60

 
$
0.02

 
$
1.34

 
$
(1.85
)
 
$
0.47

 
$
0.71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
140.760

 
140.760

 
140.760

 
140.760

 
140.760

 
140.760

 
140.760

 
140.760

 
140.760

Diluted EPS
 
140.760

 
142.812

 
142.812

 
142.812

 
142.812

 
142.812

 
142.812

 
142.812

 
142.812


(1) Refer to page 5.


Page 17




 
 
Quarter ended January 2, 2015
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Pension & OPEB actuarial & settlement losses
 
SEC settlement related charges
 
Tax adjustment
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,949

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,949

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,572

 
$
(7
)
 
$
11

 
$
(244
)
 
$
—

 
$
—

 
$
1,332

Selling, general and administrative (excludes SEC settlement related charges and restructuring costs)
 
$
322

 
$
(21
)
 
$
2

 
$
(41
)
 
$
—

 
$
—

 
$
262

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
(386
)
 
$
28

 
$
(13
)
 
$
285

 
$
195

 
$
—

 
$
109

Income tax (benefit) expense
 
(192
)
 
11

 
(5
)
 
66

 
—

 
142

 
22

Income (loss) from continuing operations
 
$
(194
)
 
$
17

 
$
(8
)
 
$
219

 
$
195

 
$
(142
)
 
$
87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
49.7
%
 
 
 
 
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
(1.38
)
 
$
0.12

 
$
(0.06
)
 
$
1.56

 
$
1.39

 
$
(1.01
)
 
$
0.62

Diluted EPS from continuing operations
 
$
(1.38
)
 
$
0.12

 
$
(0.06
)
 
$
1.53

 
$
1.37

 
$
(0.99
)
 
$
0.61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
140.637

 
140.637

 
140.637

 
140.637

 
140.637

 
140.637

 
140.637

Diluted EPS
 
140.637

 
142.852

 
142.852

 
142.852

 
142.852

 
142.852

 
142.852


(1) Refer to page 6.


Page 18




 
 
Quarter ended October 3, 2014
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Tax adjustment
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,039

 
$
—

 
$
—

 
$
—

 
$
2,039

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,402

 
$
(10
)
 
$
11

 
$
—

 
$
1,403

Selling, general and administrative (excludes restructuring costs)
 
$
314

 
$
(16
)
 
$
2

 
$
—

 
$
300

 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
82

 
$
26

 
$
(13
)
 
$
—

 
$
95

Income tax expense (benefit)
 
23

 
10

 
(5
)
 
(9
)
 
19

Income (loss) from continuing operations
 
$
59

 
$
16

 
$
(8
)
 
$
9

 
$
76

 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
28.0
%
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
0.41

 
$
0.11

 
$
(0.06
)
 
$
0.06

 
$
0.53

Diluted EPS from continuing operations
 
$
0.41

 
$
0.11

 
$
(0.05
)
 
$
0.06

 
$
0.52

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
143.279

 
143.279

 
143.279

 
143.279

 
143.279

Diluted EPS
 
145.596

 
145.596

 
145.596

 
145.596

 
145.596


(1) Refer to page 7.


Page 19





 
 
Quarter ended July 4, 2014
(Amounts in millions, except per-share amounts)
 
Pro forma CSC continuing operations (1)
 
Certain CSRA overhead costs
 
U.S. Pension & OPEB
 
Tax adjustment
 
Non-GAAP results
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,219

 
$
—

 
$
—

 
$
—

 
$
2,219

 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,567

 
$
(9
)
 
$
10

 
$
—

 
$
1,568

Selling, general and administrative (excludes restructuring costs)
 
$
318

 
$
(17
)
 
$
2

 
$
—

 
$
303

 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, before taxes
 
$
61

 
$
26

 
$
(12
)
 
$
—

 
$
75

Income tax expense (benefit)
 
12

 
10

 
(5
)
 
(2
)
 
15

Income (loss) from continuing operations
 
$
49

 
$
16

 
$
(7
)
 
$
2

 
$
60

 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
19.7
%
 
 
 
 
 
 
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
0.33

 
$
0.11

 
$
(0.05
)
 
$
0.01

 
$
0.41

Diluted EPS from continuing operations
 
$
0.33

 
$
0.11

 
$
(0.05
)
 
$
0.01

 
$
0.40

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
145.338

 
145.338

 
145.338

 
145.338

 
145.338

Diluted EPS
 
148.251

 
148.251

 
148.251

 
148.251

 
148.251


(1) Refer to page 8.




Page 20



Non-GAAP Results Summary
(preliminary and unaudited)

Quarter Ended
 
Fiscal Year 2015
 
Fiscal Year 2016
(Amounts in millions, except per-share amounts)
 
July 4, 2014
 
October 3, 2014
 
January 2, 2015
 
April 3, 2015
 
July 3, 2015
 
October 2, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,219

 
$
2,039

 
$
1,949

 
$
1,910

 
$
1,804

 
$
1,745

 
 
 
 
 
 
 
 
 
 
 
 
 
Costs of services (excludes depreciation and amortization and restructuring costs)
 
$
1,568

 
$
1,403

 
$
1,332

 
$
1,339

 
$
1,267

 
$
1,232

Selling, general and administrative (excludes SEC settlement related charges and restructuring costs)
 
$
303

 
$
300

 
$
262

 
$
233

 
$
251

 
$
246

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, before taxes
 
$
75

 
$
95

 
$
109

 
$
127

 
$
97

 
$
95

Income tax expense
 
15

 
19

 
22

 
25

 
20

 
19

Income from continuing operations
 
$
60

 
$
76

 
$
87

 
$
102

 
$
77

 
$
76

 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
20.0
%
 
20.0
%
 
20.0
%
 
20.0
%
 
20.0
%
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS from continuing operations
 
$
0.41

 
$
0.53

 
$
0.62

 
$
0.72

 
$
0.56

 
$
0.55

Diluted EPS from continuing operations
 
$
0.40

 
$
0.52

 
$
0.61

 
$
0.71

 
$
0.55

 
$
0.54

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding for:
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
145.338

 
143.279

 
140.637

 
140.760

 
137.917

 
138.295

Diluted EPS
 
148.251

 
145.596

 
142.852

 
142.812

 
140.801

 
140.532



Quarter Ended
 
Fiscal Year 2016
 
Fiscal Year 2015
(Amounts in millions, except per-share amounts)
 
July 4, 2014
 
October 3, 2014
 
January 2, 2015
 
April 3, 2015
 
July 3, 2015
 
October 2, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
     Global Business Solutions
 
$
1,088

 
$
1,003

 
$
965

 
$
980

 
$
919

 
$
891

     Global Infrastructure Solutions
 
1,131

 
1,036

 
984

 
930

 
885

 
854

Total
 
$
2,219

 
$
2,039

 
$
1,949

 
$
1,910

 
$
1,804

 
$
1,745

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Operating Income
 
 
 
 
 
 
 
 
 
 
 
 
     Global Business Solutions
 
$
104

 
$
126

 
$
124

 
$
160

 
$
93

 
$
110

     Global Infrastructure Solutions
 
63

 
59

 
63

 
54

 
43

 
63

Commercial
 
167

 
185

 
187

 
214

 
136

 
173

     Corporate
 
(26
)
 
(9
)
 
(13
)
 
(18
)
 
12

 
(17
)
Total
 
$
141

 
$
176

 
$
174

 
$
196

 
$
148

 
$
156



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