Computer Sciences (CSC) 10-Q 7 Aug 09 2010 Q2 Quarterly report Financial data

1000 - CONSOLIDATED CONDENSED S

1000 - CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Jul. 03, 2009	3 Months Ended Jul. 04, 2008
Revenues	$3,898	$4,437
Costs of services (excludes depreciation and amortization)	3,156	3,602
Selling, general and administrative	247	278
Depreciation and amortization	270	317
Interest expense	55	64
Interest income	(7)	(10)
Other (income)/ expense	(8)	7
Total costs and expenses	3,713	4,258
Income before taxes	185	179
Taxes on income	52	53
Net income	133	126
Less: Net income attributable to noncontrolling interest, net of tax	2	5
Net income attributable to CSC common shareholders	$131	$121
Earnings per share:
Basic	0.86	0.8
Diluted	0.85	0.79

2000 - CONSOLIDATED CONDENSED B

2000 - CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited) (USD $)
In Millions	Jul. 03, 2009	Apr. 03, 2009
ASSETS
Cash and cash equivalents	$1,920	$2,297
Receivables, net of allowance for doubtful accounts of $55 (2010) and $55 (2009)	3,976	3,786
Prepaid expenses and other current assets	1,888	1,624
Total current assets	7,784	7,707
Property and equipment, net of accumulated depreciation of $3,569 (2010) and $3,417 (2009)	2,403	2,353
Outsourcing contract costs, net	691	684
Software, net	488	476
Goodwill	3,865	3,784
Other assets	580	615
Total assets	15,811	15,619
LIABILITIES
Short-term debt and current maturities of long-term debt	61	62
Accounts payable	434	636
Accrued payroll and related costs	860	822
Other accrued expenses	1,185	1,264
Deferred revenue	977	915
Income taxes payable and deferred income taxes	311	317
Total current liabilities	3,828	4,016
Long-term debt, net of current maturities	4,176	4,173
Income tax liabilities and deferred income taxes	484	486
Other long-term liabilities	1,240	1,326
STOCKHOLDERS' EQUITY
Common stock, par value $1 per share; authorized 750,000,000 shares; issued 159,830,006 (2010) and 159,688,820 (2009)	160	160
Additional paid-in capital	1,856	1,836
Retained earnings	5,023	4,893
Accumulated other comprehensive loss	(673)	(1,004)
Less common stock in treasury, at cost, 8,240,847 shares (2010) and 8,190,333 shares (2009)	(377)	(375)
Total CSC stockholders' equity	5,989	5,510
Noncontrolling interest	94	108
Total stockholders' equity	6,083	5,618
Total liabilities and stockholders' equity	$15,811	$15,619

2100 - Parenthetical Informatio

2100 - Parenthetical Information for Balance Sheet (USD $)
In Millions, except Share data	Jul. 03, 2009	Apr. 03, 2009
Current assets:
Receivables, allowance for doubtful accounts	$55	$55
Property and equipment, accumulated depreciation	$3,569	$3,417
STOCKHOLDERS' EQUITY
Common stock, par value (in dollars per share)	$1	$1
Common stock, authorized shares (in shares)	750,000,000	750,000,000
Common stock, issued (in shares)	159,830,006	159,688,820
Less common stock in treasury, shares (in shares)	8,240,847	8,190,333

3000 - CONSOLIDATED CONDENSED S

3000 - CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Millions	3 Months Ended Jul. 03, 2009	3 Months Ended Jul. 04, 2008
Cash flows from operating activities:
Net income	$133	$126
Adjustments to reconcile net income to net cash used in operating activities:
Net income attributable to noncontrolling interest, net of tax	(2)	(5)
Depreciation and amortization and other non-cash charges	283	341
Stock based compensation	18	17
Provision for losses on accounts receivable	4	8
Unrealized foreign currency exchange (gain)/loss, net	(78)	10
Changes in operating assets and liabilities, net of acquisition effects:
Increase in assets	(186)	(114)
Decrease in liabilities	(469)	(439)
Net cash used in operating activities	(297)	(56)
Investing activities:
Purchases of property and equipment	(100)	(195)
Outsourcing contracts	(33)	(30)
Acquisitions	0	(62)
Software	(40)	(43)
Other investing cash flows	15	1
Net cash used in investing activities	(158)	(329)
Financing activities:
Net borrowing of commercial paper	0	417
Borrowings under lines of credit	8	238
Repayment on lines of credit	(13)	(52)
Principal payments on long-term debt	(9)	(308)
Proceeds from stock option and other common stock transactions	1	6
Repurchase of common stock	(2)	(3)
Excess tax benefit from stock-based compensation	0	1
Other financing cash flows	1	0
Net cash (used in) provided by financing activities	(14)	299
Effect of exchange rate changes on cash and cash equivalents	92	3
Net decrease in cash and cash equivalentss	(377)	(83)
Cash and cash equivalents at beginning of year	2,297	699
Cash and cash equivalents at end of period	$1,920	$616

6000 - Basis of Presentation

6000 - Basis of Presentation
	3 Months Ended Jul. 03, 2009 USD / shares
Basis of Presentation
Basis of Presentation	Computer Sciences Corporation (CSC or the Company) has prepared the unaudited consolidated condensed financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles for the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations.It is recommended that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended April 3, 2009.In the opinion of the Company, the unaudited consolidated condensed financial statements included herein reflect all adjustments necessary, including those of a normal recurring nature, to present fairly the financial position, the results of operations and the cash flows for such interim periods.The results of operations for such interim periods are not necessarily indicative of the results for the full year. Certain columns and rows within the financial tables in this Form 10-Q include rounded numbers for disclosure purposes. Certain percentages and ratios are calculated from whole-dollar amounts. Prior amounts have been updated from those presented in previously filed Forms 10-Q to reflect implementation of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements. Equity in earnings of unconsolidated affiliates of $5 million and $6 million for July 3, 2009, and July 4, 2008, respectively, have been reclassified from cost of services to other (income)/expense in the consolidated condensed statements of income. Deferred cost balances at July 3, 2009, and April 3, 2009, of $1,271 million and $1,073 million, respectively, are included in prepaid expenses and other current assets. Subsequent events have been evaluated through August 7, 2009, the date the financial statements were issued.

6010 - Accounting Changes

6010 - Accounting Changes
	3 Months Ended Jul. 03, 2009 USD / shares
Accounting Changes
Accounting Changes	In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No. 51. This statement requires that the noncontrolling interest in the equity of a subsidiary be accounted for and reported as equity, provides revised guidance on the treatment of net income and losses attributable to the noncontrolling interest and changes in ownership interests in a subsidiary and requires additional disclosures that identify and distinguish between the interests of the controlling and noncontrolling owners. Pursuant to the transition provisions of SFAS No. 160, the Company adopted the statement as of the beginning of fiscal year 2010 via retrospective application of the presentation and disclosure requirements. Noncontrolling interest of $108 million at April 3, 2009, was reclassified from the liabilities section to the stockholders equity section in the consolidated condensed balance sheet as of the beginning fiscal year 2010. Net income attributable to noncontrolling interest of $2 million and $5 million, net of tax, for the quarters ended July 3, 2009, and July 4, 2008, respectively, is presented separately in the consolidated condensed statements of income. In December 2007, the FASB issued SFAS No. 141(R), Business Combinations, which became effective as of the beginning fiscal year 2010 via prospective application to business combinations. This statement requires that the acquisition method of accounting be applied to a broader set of business combinations, amends the definition of a business combination, provides a definition of a business, requires an acquirer to recognize an acquired business at its fair value at the acquisition date and requires the assets and liabilities assumed in a business combination to be measured and recognized at their fair values as of the acquisition date (with limited exceptions). The Company adopted this statement as of the beginning of fiscal year 2010. There was no impact upon adoption, and its effects on future periods will depend on the nature and significance of business combinations subject to this statement.

6020 - Earnings per Share

6020 - Earnings per Share
	3 Months Ended Jul. 03, 2009 USD / shares
Earnings Per Share
Earnings Per Share	Basic and diluted earnings per share are calculated as follows: Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Net income attributed to CSC common shareholders $ 131 $ 121 Common share information: Average common shares outstanding for basic EPS 151.539 151.187 Dilutive effect of stock options and equity awards 1.265 2.036 Shares for diluted EPS 152.804 153.223 Basic EPS $ 0.86 $ 0.80 Diluted EPS $ 0.85 $ 0.79 The computation of diluted EPS did not include stock options which were antidilutive, as their exercise price was greater than the average market price of the common stock of CSC during the periods presented.The number of such options was 14,626,617 and 10,076,326 for the quarters ended July 3, 2009, and July 4, 2008, respectively.

6030 - Fair Value

6030 - Fair Value
	3 Months Ended Jul. 03, 2009 USD / shares
Fair Value
Fair Value	The following table presents the Companys assets and liabilities that are measured at fair value on a recurring basis as of July 3, 2009 and April 3, 2009 consistent with the fair value hierarchy provisions of SFAS No. 157: (Amounts in millions) July 3, 2009 Fair Value Hierarchy Fair Value Level 1 Level 2 Level 3 Money market funds $ 1,000 $ 1,000 - - Time deposits 281 281 - - Derivative assets 8 - $ 8 - Total $ 1,289 $ 1,281 $ 8 $ - (Amounts in millions) April 3, 2009 Fair Value Hierarchy Fair Value Level 1 Level 2 Level 3 Money market funds $ 1,190 $ 1,190 - - Time deposits 549 549 - - Derivative assets 1 - $ 1 - Total $ 1,740 $ 1,739 $ 1 $ - The Companys derivative financial instruments include foreign currency forward contracts and purchased option contracts.The fair value of the Companys forward contracts is based on quoted prices for similar but not identical derivative financial instruments; as such, the inputs are considered Level 2 for forward contracts.Our option contract valuation inputs are based on quoted pricing from external valuations and do not involve management judgment. The inputs used to value the option contracts are considered Level 2 inputs. The Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).Gains and losses included in earnings are reported in other (income)/expense (See Note 6). Financial Instruments With respect to financial instruments, the Companys carrying amounts of its other current assets and liabilities were deemed to approximate their market values due to their short maturity. The Companys carrying amounts of long-term debt were $4,176 million and $4,173 million as of July 3, 2009, and April 3, 2009, respectively, and the estimated fair value was $4,155 million for both periods. The fair value of long-term debt is estimated based on the current interest rates offered to the Company for instruments with similar terms and remaining maturities. The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates.

6040 - Derivative Instruments

6040 - Derivative Instruments
	3 Months Ended Jul. 03, 2009 USD / shares
Derivative Instruments
Derivative Instruments	Foreign Currency As a large global organization, the Company faces exposure to adverse movements in foreign currency exchange rates.During the ordinary course of business, the Company enters into certain contracts denominated in foreign currency. Potential foreign currency exposures arising from these contracts are analyzed during the contract bidding process.The Company generally manages these transactions by incurring costs to service contracts in the same currency in which revenue is received. Short-term contract financing requirements are met by borrowing in the same currency. By generally matching revenues, costs and borrowings to the same currency, the Company has been able to substantially mitigate foreign currency risk to earnings. However, as business practices evolve, the Company is increasing its use of offshore support and is therefore becoming more exposed to currency fluctuations. The Company established policies and procedures to manage the exposure to fluctuations in foreign currency by using foreign currency forwards to hedge intercompany loans denominated in non-functional currencies and certain foreign currency assets and liabilities. These financial instruments are generally short term in nature with typical maturities of less than one year.In addition, the Company uses these instruments as economic hedges and not for speculative or trading purposes.For accounting purposes, these foreign currency contracts do not qualify as cash flow hedges and all changes in fair value are reported in net earnings as part of other income and expenses.In fiscal year 2010, the Company entered into foreign currency options to protect its operations from a loss due to a change in currency exchange rate.As of July 3, 2009, the notional amount of forward contracts outstanding was approximately $821 million and the notional amount of purchased option contracts outstanding was $192 million. As a result of the use of derivative instruments, the Company is subject to counterparty credit risks. The Company enters into numerous types of financing arrangements with a wide array of counterparties, including foreign currency forward contracts and purchased options. To monitor this risk, the Company enters into contracts with only large financial institutions and regularly reviews its credit exposure balances and the creditworthiness of the counterparty. As of July 3, 2009, the fair value carrying amount of the Companys derivative instruments was recorded in the balance sheet under prepaid expenses and other current assets for approximately $8 million.

6050 - Other

6050 - Other (Income) Expense
	3 Months Ended Jul. 03, 2009 USD / shares
Other Expense/(Income)
Other Expense/(Income)	Other (income)/expense includes foreign currency gains and losses on intercompany and foreign currency balances, gains and losses on foreign exchange forward contracts and purchased options, equity in earnings of unconsolidated affiliates, and gains and losses from the sale of non-operating assets. For the quarters ended July 3, 2009, and July 4, 2008, the components of other (income)/expense were as follows: Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Foreign exchange losses, net $ 1 $ 13 Equity in earnings of unconsolidated affiliates (5 ) (6 ) Gain on sale of non-operating assets (4 ) - Total Other (Income)/ Expense, net $ (8 ) $ 7 While the currency hedging program is designed to protect CSCs operations from a loss due to a change in currency exchange rates, the actual impact from forward contracts and options is recorded in other (income)/expense as these foreign currency contracts do not qualify as cash flow hedges.The total premium cost paid for the Companys option program for first quarter of fiscal year 2010 was $4 million and of this amount, $2 million was expensed in the current quarter and included in foreign exchanges losses/gains.As of July 3, 2009, the notional amount of option contracts outstanding was approximately $192 million. Net foreign exchange losses of $13 million in the prior year 2009 was attributed to a) the costs to hedge foreign currency intercompany balances and foreign currency economic risk associated with off-shore operations, which resulted in $9 million and b) miscellaneous foreign currency losses due to unhedged intercompany balances. Gain on sale of non-operating assets in the first quarter of fiscal year 2010 includes $4 million recognized on the sale of the former headquarters building in El Segundo, California, in June 2009.

6060 - Pension and Other Benefi

6060 - Pension and Other Benefit Plans
	3 Months Ended Jul. 03, 2009 USD / shares
Pension and Other Benefit Plans
Pension and Other Benefit Plans	The Company and its subsidiaries offer a number of pension and postretirement healthcare and life insurance benefit plans.The components of net periodic benefit cost for defined benefit pension and postretirement benefit plans are as follows: Quarter Ended Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Pensions U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ 24 $ 8 $ 29 $ 12 Interest cost 41 26 37 30 Expected return on assets (38 ) (22 ) (43 ) (34 ) Amortization of transition obligation - - - 1 Amortization of unrecognized net loss 3 5 1 3 Pension curtailment (13 ) - - - Net periodic pension cost $ 17 $ 17 $ 24 $ 12 Quarter Ended Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Other Postretirement Benefits U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ - $ - $ 1 $ - Interest cost 3 - 3 - Expected return on assets (1 ) - (2 ) - Amortization of transition obligation 1 - - - Amortization of unrecognized net loss 1 - 1 - Net provision for postretirement benefits $ 4 $ - $ 3 $ - On May 20, 2009, the Companys Board of Directors adopted a freeze amendment to the Computer Sciences Corporation Employee Pension Plan (the Plan) whereby effective July 10, 2009, the further accrual of all benefits ceased for most participants in the Plan.As a result of this plan amendment, the Company remeasured the Plans pension expense for fiscal 2010 to reflect a) a new discount rate of 7.5%, b) the year-to-date increasein plan assets and c) the change in amortization basis to the expected average remaining life of plan participants. The discount rate is derived from averaging two independent third-party sources: the AON Yield Curve and the Citigroup Pension Discount Curve - Above Median. Both yield curves are constructed to parallel the bond portfolio that would be constructed for a plan similar in size and timing of payments to the Companys.This remeasurement resulted in a $115 million reduction to the pension benefit obligation, which improved the funded status of the Plan.Additionally, the Company recognized a benefit resulting from the reversal of a prior service credit of $13 million in the quarter ended July 3, 2009. The Company expects to contribute approximately $135 million to its defined benefit pension and $10 million to its postretirement benefit plans during fiscal 2010.During the first three months of fiscal 2010, the Company contributed approximately $58 million to its defined benefit pension plans with $4 million to the postretirement benefit plans.

6070 - Income Taxes

6070 - Income Taxes
	3 Months Ended Jul. 03, 2009 USD / shares
Income Taxes
Income Taxes	The effective tax rate was 28.3% and 29.6% for the first quarter ended July 3, 2009, and July 4, 2008, respectively.The decrease in the fiscal year 2010 rate was primarily attributable to a shift in the global mix of earnings into permanently reinvested foreign jurisdictions.The fiscal year 2009 effective tax rate also reflects the reclassification of prior year income from noncontrolling interests to a separate line following the adoption of a new accounting standard at the beginning of fiscal year 2010. The income taxes payable and deferred income taxes line included in current liabilities consists of the following: (Amounts in millions) July 3, 2009 April 3, 2009 Income taxes payable $ 34 $ 40 Deferred income tax liabilities 259 259 Liability for uncertain tax positions 18 18 Total $ 311 $ 317 The income tax liabilities and deferred income taxes line included in non-current liabilities consists of the following: (Amounts in millions) July 3, 2009 April 3, 2009 Deferred income tax liabilities $ (2 ) $ - Liability for uncertain tax positions 486 486 Total $ 484 $ 486 Receivables include income taxes receivable of $8 million and $8 million as of July 3, 2009, and April 3, 2009, respectively.Prepaid expenses and other current assets include the current portion of deferred income taxes of $11 million and $10 million as of July 3, 2009, and April 3, 2009, respectively. Other assets include non-current deferred income tax assets of $145 million and $169 million as of July 3, 2009, and April 3, 2009, respectively. As of July 3, 2009, in accordance with FASB Interpretation No. 48 (FIN 48), the Company's liability for uncertain tax positions was $504 million, including interest of $79 million and penalties of $26 million.The Companys liability for uncertain tax positions at July 3, 2009 includes $305 million related to amounts that, if recognized, would affect the effective tax rate (excluding related interest and penalties). There were no material changes to the uncertain tax positions in the first quarter of fiscal year 2010 compared to fiscal year end 2009. Tax Examination Status The Company is currently under examination in several tax jurisdictions.A summary of the tax years that remain subject to examination in certain of the Companys major tax jurisdictions are: Jurisdiction: Tax Years that Remain Subject to Examination (Fiscal Year Ending): United States Federal 2005 and forward United States Various States 2001 and forward Canada 2004 and forward France 2005 and forward Germany 2001 and forward United Kingdom 2007 and forward It is reasonably possible that during the next 12 months the Company may settle certain tax examinations, have lapses in statutes of limitations, or voluntarily settle income tax positions in negotiated settlements for different amounts than the Company has accrued as uncertain tax positions.If a position for which the Company concluded was more likely than not and was subsequently not upheld, then the Company m

6080 - Stock Incentive Plans

6080 - Stock Incentive Plans
	3 Months Ended Jul. 03, 2009 USD / shares
Stock Incentive Plans
Stock Incentive Plans	As of July 3, 2009, the Company had outstanding stock option and equity awards issued pursuant to various shareholder-approved plans.For the quarter ended July 3, 2009, and July 4, 2008, the Company recognized stock-based compensation expense as follows: Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Cost of services $ 4 $ 4 Selling, general and administrative 14 13 Total $ 18 $ 17 Total net of tax $ 11 $ 12 The Company uses the Black-Scholes-Merton model in determining the fair value of options granted.The weighted average grant date fair values of stock options granted during the quarter ended July 3, 2009, and July 4, 2008, were $15.10 and $15.97 per share, respectively.In calculating the compensation expense for its stock incentive plans, the Company used the following weighted average assumptions: Quarter Ended July 3, 2009 July 4, 2008 Risk-free interest rate 2.20% 3.24% Expected volatility 42% 36% Expected lives 4.14 years 4.08 years During the quarter ended July 3, 2009, and July 4, 2008, the Company realized income tax benefits of $3 million and $5 million, respectively, and an excess tax benefit of an immaterial amount and $1 million, respectively, related to all of its stock incentive plans. Employee Incentive Plans The Company has three stock incentive plans which authorize the issuance of stock options, restricted stock and other stock-based incentives to employees upon terms approved by the Compensation Committee of the Board of Directors.The Company issues authorized but previously unissued shares upon the exercise of stock options, the granting of restricted stock and the redemption of restricted stock units (RSUs).At July 3, 2009, 9,047,632 shares of CSC common stock were available for the grant of future stock options, equity awards or other stock-based incentives to employees. Stock Options The Companys standard vesting schedule for stock options is one-third on each of the first three anniversaries of the grant date.Stock options are generally granted for a term of ten years.Information concerning stock options granted under stock incentive plans is as follows: Quarter Ended July 3, 2009 (Amounts in millions, except shares and per share data) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of April 3, 2009 18,294,562 $ 47.15 5.53 $ 22.8 Granted 2,706,490 $ 42.07 Exercised (48,470 ) $ 28.90 Canceled/forfeited (140,669 ) $ 53.16 Expired (1,066,461 ) $ 57.64 Outstanding as of July 3, 2009 19,745,452 $ 45.89 6.17 $ 42.8 Vested and expected to vest in the future as of July 3, 2009 19,256,138 $ 45.92 6.17 $ 42.1 Exercisable as of July 3, 2009 14,167,128 $ 45.78 4.98 $ 36.7 The total intrinsic value of options exercised during the quarter ended July 3

6090 - Dividends

6090 - Dividends
	3 Months Ended Jul. 03, 2009 USD / shares
Dividends
Dividends	No dividends were paid or declared during the periods presented.

6100 - Cash Flows

6100 - Cash Flows
	3 Months Ended Jul. 03, 2009 USD / shares
Cash Flows
Cash Flows	Cash payments for interest on indebtedness were $44 million and $38 million for the quarter ended July 3, 2009, and July 4, 2008, respectively.Net cash payments for taxes on income were $60 million and $19 millionfor the quarter ended July 3, 2009, and July 4, 2008, respectively.Noncash investing activities included capital lease obligations of $15 million and $38 millionfor the quarter ended July 3, 2009, and July 4, 2008, respectively.

6110 - Stockholders' Equity and

6110 - Stockholders' Equity and Comprehensive Income
	4/4/2009 - 7/3/2009 USD / shares
Stockholders' Equity and Comprehensive Income
Stockholders' Equity and Comprehensive Income	The components of stockholders equity are as follows: (Amounts in millions) Total Equity CSC Equity Noncontrolling Interest Equity Balance at April 3, 2009 $ 5,618 $ 5,510 $ 108 Net income 133 131 2 Additional paid in capital 20 20 - Foreign currency translation adjustment 284 284 - Pension service credit 47 47 - Common stock in treasury (2 ) (2 ) - Distributions and other (17 ) (1 ) (16 ) Balance at July 3, 2009 $ 6,083 $ 5,989 $ 94 The components of comprehensive income, net of tax, are as follows: Quarter Ended (Amounts in millions) July 3, 2009 July 4, 2008 Net Income attributable to CSC common shareholders $ 131 $ 121 Foreign currency translation adjustment 284 25 Unfunded pension adjustment 47 1 Comprehensive income $ 462 $ 147 Accumulated other comprehensive (loss)/income presented on the accompanying consolidated condensed balance sheets consist of accumulated foreign currency translation adjustments, unamortized benefit plan costs, and net unrealized gain on available for sale securities. The unfunded pension adjustment is attributable to the pension remeasurement effective May 20, 2009, as discussed in Note 7. The foreign currency translation adjustment is due to appreciation during fiscal 2010 first quarter in foreign currency-denominated assets and liabilities, primarily British Pound and Euro movements of 14.9% and 5.7%, respectively.

6120 - Segment Information

6120 - Segment Information
	3 Months Ended Jul. 03, 2009 USD / shares
Segment Information
Segment Information	CSC provides information technology and business process outsourcing, consulting and systems integration services and other professional services to its customers.The Company targets the delivery of these services within three broad service lines or sectors:North American Public Sector (NPS), Managed Services Sector (MSS), andBusiness Solutions and Services (BSS).The Companys organization has continued to evolve, and management decided to consolidate and streamline the management and reporting structure. At the start of fiscal 2010, the Company changed its internal organization structure, including a change to further strengthen market position by consolidating its application management services business, including all offshore activity with its outsourcing business. These changes have resulted in changes to the Companys reportable segments pursuant to SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information. Consequently, the Companys reportable segments in fiscal 2010 are as follows: North American Public Sector (NPS) The NPS segment operates principally within a regulatory environment subject to governmental contracting and accounting requirements, including Federal Acquisition Regulations, Cost Accounting Standards and audits by various U.S.Federal agencies.In fiscal 2009, NPS was treated as a reportable segment and continues to be a reportable segment in fiscal 2010. Managed Services Sector (MSS) The MSS segment provides large-scale outsourcing solutions offerings as well as midsize services delivery to customers globally.In fiscal 2009, Global Outsourcing Services (GOS) was considered a separate operating and reportable segment.In fiscal 2010, the name of the segment was changed to Managed Services Sector; and the Applications and Technology Services (ATS) unit was moved from the Business Solutions Services Other (BSS - Other) segment to MSS due to the fact that its services, particularly its applications management, are more aligned with the Companys outsourcing services rather than consulting services. ATS results are no longer reported separatelyto the Chief Operating Decision Maker (CODM) but are included with the MSS segment. Business Solutions Services (BSS) The BSS segment provides industry specific consulting and systems integration services, business process outsourcing, and intellectual property (IP) based software solutions.These service offerings and clientele overlap.In fiscal 2009, multiple operating segments were aggregated into three reportablesegments: BSS - Consulting, BSS - Financial Services and BSS - Other.As a result of the reorganization in fiscal 2010, the BSS line of service is now a single operating segment with one sector president reporting to the CODM, and financial information is provided on a sector level only.Based on this change, BSS is considered a reportable segment in fiscal 2010. Furthermore, most of the India operating segment, which was part of the BSS Other segment in fiscal2009, has been moved to the MSS operating segment and renamed ATS as discussed above. Based on the above changes, the company has recast prior periods reportable segments to be

6130 - Goodwill and Other Intan

6130 - Goodwill and Other Intangible Assets
	3 Months Ended Jul. 03, 2009 USD / shares
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	The Company tests goodwill for impairment on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.A significant amount of judgment is involved in determining if an indicator of impairment has occurred between annual testing dates.Such indicators include: a significant decline in expected future cash flows; a sustained, significant decline in market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and reductions in growth rates.No adverse change in these factors has occurred in the first quarter of 2010 that would indicate a significant impact on the recoverability of goodwill and as a result, we concluded that an interim test of goodwill impairment is not needed. At the beginning of fiscal 2010, the Company changed its internal organization structure.These changes have resulted in changes to the Companys reportable segments pursuant to SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information.See Note 13 for further details. As such, based on the changes, the Company has recast the prior periods reporting segments to be comparable with fiscal 2010. The following table summarizes the changes in the carrying amount of goodwill by segment for the quarter ended July 3, 2009, is as follows: (Amounts in millions) NPS MSS BSS Total Balance as of April 3, 2009 $ 692 $ 1,915 $ 1,177 $ 3,784 Additions 2 - - 2 Foreign currency translation - 53 26 79 Balance as of July 3, 2009 $ 694 $ 1,968 $ 1,203 $ 3,865 The foreign currency translation amount relates to the impact of foreign currency adjustments in accordance with SFAS No. 52, Foreign Currency Translation. A summary of amortizable intangible assets as of July 3, 2009, and April 3, 2009, is as follows: As of July 3, 2009 (Amounts in millions) Gross Carrying Value AccumulatedAmortization Net Software $ 1,617 $ 1,129 $ 488 Outsourcing contract costs 2,036 1,345 691 Customer and other intangible assets 396 206 190 Total intangible assets $ 4,049 $ 2,680 $ 1,369 As of April 3, 2009 (Amounts in millions) Gross Carrying Value AccumulatedAmortization Net Software $ 1,558 $ 1,082 $ 476 Outsourcing contract costs 1,925 1,241 684 Customer and other intangible assets 402 200 202 Total intangible assets $ 3,885 $ 2,523 $ 1,362 Amortization related to intangible assets was $102 million and $134 million for the quarter ended July 3, 2009, and July 4, 2008, respectively.Estimated amortization expense related to intangible assets as of April 3, 2009, for each of the subsequent five years, fiscal 2010 through fiscal 2014, is as follows: $350million, $266

6140 - Commitments and Continge

6140 - Commitments and Contingencies
	3 Months Ended Jul. 03, 2009 USD / shares
Commitments and Contingencies
Commitments and Contingencies	The primary financial instruments which potentially subject the Company to concentrations of credit risk are accounts receivable. The Companys customer base includes Fortune 500 companies, the U.S. federal and other governments and other significant, well-known companies operating in North America, Europe and the Pacific Rim. Credit risk with respect to accounts receivable is minimized because of the nature and diversification of the Companys customer base. Furthermore, the Company continuously reviews its accounts receivables and records provisions for doubtful accounts as needed. The Company's credit risk is also affected by the risk of customers which become subject to bankruptcy proceedings; however, because most of these proceedings involve business reorganizations rather than liquidations and the nature of the Company's services are often considered essential to the operational continuity of these customers, the Company is generally able to avoid or mitigate significant adverse financial impact in these cases.As of July 3, 2009, the Company had$45 million of accounts receivable, $9 million of allowance for doubtful accounts, $16 million of fixed assets, $8 million of other assets, and $6 million of outsourcing contract costs with customers involved in bankruptcy proceedings. In the normal course of business, the Companymay provide certain clients, principally governmental entities, with financial performance guarantees, which are generally backed by standby letters of credit or surety bonds.In general, the Company would only be liable for the amounts of these guarantees in the event that nonperformance by the Company permits termination of the related contract by the Companys client.At July 3, 2009, the Company had $559 millionof outstanding letters of credit and surety bonds relating to theseperformance guarantees. The Company believes it is in compliance with its performance obligations under all service contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse affect on its consolidated results of operations or financial position. The Company guarantees working capital credit lines established with local financial institutions for its non-U.S. business units.Generally, guarantees have one-year terms and are renewed annually.CSC guarantees up to $676 million of such working capital lines, and the amount of the maximum potential payment is $27 million, representingthe amount of the related outstanding subsidiary debt as of July 3, 2009.The $27 million outstanding debt is reflected in the Companys consolidated financial statements. The Company generally indemnifies its software license customers from claims of infringement on a United States patent, copyright, or trade secret.CSCs indemnification covers costs to defend customers from claims, court awards or related settlements.The Company maintains the right to modify or replace software in order to eliminate any infringement.Historically, CSC has not incurred any significant costs related to customer software license indemnification.Management considers the

6150 - Recent Accounting Pronou

6150 - Recent Accounting Pronouncements
	3 Months Ended Jul. 03, 2009 USD / shares
Recent Accounting Pronouncements
Recent Accounting Pronouncements	In December 2008, the FASB issued FSP FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets, which amends SFAS 132(R) to require more detailed disclosures about employers plan assets, including employers investment strategies, major categories of plan assets, concentrations of risk within plan assets, and valuation techniques used to measure the fair value of plan assets.The required disclosures will be provided in CSCs financial statements for the fiscal year 2010 on Form 10-K. On June 12, 2009, the FASB issued SFAS No.166, Accounting for Transfers of Financial Assets an amendment of FASB Statement 140, which is a revision to Statement 140.Statement 166 will require more information about transfers of financial assets, including securitization transactions, and where entities have continuing exposure to the risks related to transferred financial assets.It eliminates the concept of a qualifying special-purpose entity, changes the requirements for derecognizing financial assets, and requires additional disclosures.The statement will become effective at the beginning of CSCs fiscal 2011 and is not expected to have a significant effect on CSCs financial statements. On June 12, 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R), which is a revision to FIN 46 (R), and changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated.The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entitys purpose and design and the reporting entitys ability to direct the activities of the other entity that most significantly impact the other entitys economic performance.Statement 167 will require a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement.A reporting entity will be required to disclose how its involvement with a variable interest entity affects the reporting entitys financial statements.The statement will become effective at the beginning of CSCs fiscal 2011 and is not expected to have a significant effect on CSCs financial statements. On June 29, 2009, the FASB issued SFAS No. 168, FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162.The FASB approved the FASB Accounting Standards Codification (the Codification) as the single source of authoritative nongovernmental U.S. GAAP which was launched on July 1, 2009.All existing accounting standard documents are superseded.All other non-SEC accounting literature not included in the Codification is considered nonauthoritative.The statement becomes effectiveforfinancial statements issued for interim and annual periods ending after September 15, 2009, and is not expected to result in a change to current accounting.References to accounting guidance beginning next quarter will be to the Accounting Standards Codification.

Document Information

Document Information
	3 Months Ended Jul. 03, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-07-03
Amendment Flag	false
Amendment Description	none

Entity Information

Entity Information (USD $)
	3 Months Ended Jul. 03, 2009
Entity Information [Line Items]
Entity Registrant Name	Computer Sciences Corporation
Entity Central Index Key	0000023082
Current Fiscal Year End Date	--04-02
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$5,850,291,111
Entity Common Stock, Shares Outstanding	151,699,458