Computer Sciences (CSC) 10-Q 12 Nov 09 2010 Q2 Quarterly report Financial data

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Oct. 02, 2009	3 Months Ended Oct. 03, 2008	6 Months Ended Oct. 02, 2009	6 Months Ended Oct. 03, 2008
Revenues	$4,041	$4,239	$7,938	$8,676
Costs of services (excludes depreciation and amortization)	3,215	3,410	6,371	7,012
Selling, general and administrative	246	285	493	563
Depreciation and amortization	275	312	544	629
Interest expense	53	59	108	123
Interest income	(7)	(9)	(13)	(19)
Other (income)/expense	(1)	(4)	(9)	5
Total costs and expenses	3,781	4,053	7,494	8,313
Income before taxes	260	186	444	363
Taxes on income	39	(267)	91	(214)
Net income	221	453	353	577
Less: Net income attributable to noncontrolling interest, net of tax	5	1	7	5
Net income attributable to CSC common shareholders	$216	$452	$346	$572
Earnings per share:
Basic	1.42	2.98	2.28	3.78
Diluted	1.4	2.95	2.26	3.74

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited) (USD $)
In Millions	Oct. 02, 2009	Apr. 03, 2009
Assets [Abstract]
Cash and cash equivalents	$2,407	$2,297
Receivables, net of allowance for doubtful accounts of $64 (fiscal 2010) and $55 (fiscal 2009)	3,850	3,786
Prepaid expenses and other current assets	1,898	1,624
Total current assets	8,155	7,707
Property and equipment, net of accumulated depreciation of $3,692 (fiscal 2010) and $3,417 (fiscal 2009)	2,345	2,353
Outsourcing contract costs, net	680	684
Software, net	471	476
Goodwill	3,924	3,784
Other assets	562	615
Total assets	16,137	15,619
LIABILITIES
Short-term debt and current maturities of long-term debt	65	62
Accounts payable	532	636
Accrued payroll and related costs	841	822
Other accrued expenses	1,135	1,264
Deferred revenue	933	915
Income taxes payable and deferred income taxes	285	317
Total current liabilities	3,791	4,016
Long-term debt, net of current maturities	4,175	4,173
Income tax liabilities and deferred income taxes	477	486
Other long-term liabilities	1,314	1,326
Stockholders Equity Gross [Abstract]
Common stock, par value $1.00 per share; authorized 750,000,000 shares; issued 160,569,713 (fiscal 2010) and 159,688,820 (fiscal 2009)	161	160
Additional paid-in capital	1,900	1,836
Retained earnings	5,239	4,893
Accumulated other comprehensive income (loss)	(602)	(1,004)
Less common stock in treasury, at cost, 8,255,908 shares (fiscal 2010) and 8,190,333 shares (fiscal 2009)	(378)	(375)
Total CSC stockholders' equity	6,320	5,510
Noncontrolling interest	60	108
Total stockholders' equity	6,380	5,618
Total liabilities and stockholders' equity	$16,137	$15,619

Parenthetical Information for B

Parenthetical Information for Balance Sheet (USD $)
	Oct. 02, 2009	Apr. 03, 2009
STOCKHOLDERS' EQUITY
Common stock, par value $1.00 per share; authorized 750,000,000 shares;	160,569,713	159,688,820
Less common stock in treasury, at cost,	8,255,908	8,190,333

1_CONSOLIDATED CONDENSED STATEM

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Millions	6 Months Ended Oct. 02, 2009	6 Months Ended Oct. 03, 2008
Cash flows from operating activities:
Net income	$353	$577
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization and other non-cash charges	577	681
Stock based compensation	34	34
Provision for losses on accounts receivable	15	12
Unrealized foreign currency exchange gain, net	(65)	(19)
(Gain)/loss on dispositions	(4)	2
Changes in operating assets and liabilities, net of acquisition effects:
(Increase)/decrease in assets	(40)	159
Decrease in liabilities	(595)	(1,100)
Net cash provided by operating activities	275	346
Investing activities:
Purchases of property and equipment	(209)	(362)
Outsourcing contracts	(77)	(73)
Acquisitions	(5)	(63)
Software	(68)	(99)
Other investing cash flows	73	40
Net cash used in investing activities	(286)	(557)
Financing activities:
Net borrowings of commercial paper, net	0	472
Borrowings under lines of credit	28	280
Repayments on lines of credit	(32)	(161)
Principal payments on long-term debt	(17)	(316)
Proceeds from stock option and other common stock transactions	30	12
Repurchase of common stock, net of settlement	(3)	(3)
Excess tax benefit from stock-based compensation	3	1
Other financing cash flows	0	(2)
Net cash provided by financing activities	9	287
Effect of exchange rate changes on cash and cash equivalents	112	(33)
Net increase in cash and cash equivalents	110	43
Cash and cash equivalents at beginning of year	2,297	699
Cash and cash equivalents at end of period	$2,407	$742

Basis of Presentation

Basis of Presentation
	6 Months Ended Oct. 02, 2009 USD / shares
Basis Of Presentation [Abstract]
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 ASC 810-10 (SFAS No. 160), Noncontrolling Interests in Consolidated Financial Statements. Equity in earnings of unconsolidated affiliates of $4 million and $9 million for the quarter and six months ended October 3, 2008, have been reclassified from cost of services to other (income)/expense in the consolidated condensed statements of income. Deferred cost balances at October 2, 2009, and April 3, 2009, of $1,285 million and $1,073 million, respectively, are included in prepaid expenses and other current assets. Subsequent events have been evaluated through November 11, 2009, the date the financial statements were issued.

Accounting Changes

Accounting Changes
	6 Months Ended Oct. 02, 2009 USD / shares
Accounting Change [Abstract]
Accounting Changes	In June 2009, the FASB issued FASB ASC 105, Generally Accepted Accounting Principles, which establishes the FASB Accounting Standards Codification as the sole source of authoritative generally accepted accounting principles.Pursuant to the provisions of ASC 105, the Company has updated references to GAAP in its financial statements issued for the period ended October 2, 2009.The adoption of ASC 105 did not impact the Companys financial position or results of operations. In December 2007, the FASB issued ASC 810-10 (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 ASC 810-10 (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 of fiscal year 2010. Net income attributable to noncontrolling interest, net of tax of $5 million and $1 million for the quarter and $7 million and $5 million for the six months ended October 2, 2009, and October 3, 2008, respectively, is presented separately in the consolidated condensed statements of income. In December 2007, the FASB issued ASC 805-10 (SFAS No. 141(R),) Business Combinations, which became effective as of the beginning of 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 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.

Earnings per Share

Earnings per Share
	6 Months Ended Oct. 02, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Basic and diluted earnings per share are calculated as follows: Quarter Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Net income attributable to CSC common shareholders $ 216 $ 452 Common share information: Average common shares outstanding for basic EPS 151.835 151.396 Dilutive effect of stock options and equity awards common stock equivalents 2.291 1.711 Shares for diluted EPS 154.126 153.107 Basic EPS $ 1.42 $ 2.98 Diluted EPS $ 1.40 $ 2.95 Six Months Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Net income attributable to CSC common shareholders $ 346 $ 572 Common share information: Average common shares outstanding for basic EPS 151.687 151.288 Dilutive effect of common stock equivalents 1.686 1.797 Shares for diluted EPS 153.373 153.085 Basic EPS $ 2.28 $ 3.78 Diluted EPS $ 2.26 $ 3.74 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 numbers of such options were 10,539,306 and 13,015,124 for the quarter and six months ended October 2, 2009, respectively, and 12,555,192 and 12,046,941 for the quarter and six months ended October 3, 2008, respectively.

Fair Value

Fair Value
	6 Months Ended Oct. 02, 2009 USD / shares
Fair Value [Abstract]
Fair Value	The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis as of October 2, 2009, and April 3, 2009, consistent with the fair value hierarchy provisions of ASC 820-10 (SFAS No. 157): As of (Amounts in millions) Oct. 2, 2009 Fair Value Hierarchy Fair Value Level 1 Level 2 Level 3 Money market funds $ 1,593 $ 1,593 $ - $ - Time deposits 241 241 - - Derivative assets 5 - 5 - Total $ 1,839 $ 1,834 $ 5 $ - As of (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 from changes in the fair value of financial instruments are included in earnings and reported in other (income)/expense (See Note 6). Financial Instruments The Companys carrying amounts of its forward and option contracts were deemed to approximate their market values and are included in prepaid expenses and other current assets. The Companys carrying amounts of long-term debt were $4,175 million and $4,173 million and the estimated fair value were $4,127 million and $4,155 million as of October 2, 2009, and April 3, 2009, respectively. 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.

Derivative Instruments

Derivative Instruments
	6 Months Ended Oct. 02, 2009 USD / shares
Derivative Instruments
Derivative Instruments	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 certain 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)/expense.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. The notional amount of forward contracts outstanding was approximately $595 million and $951 million as of October 2, 2009, and April 3, 2009, respectively. The notional amount of purchased option contracts outstanding was $182 million and $248 million as of October 2, 2009, and April 3, 2009, respectively. 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 mitigate 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.

Other

Other (Income) Expense
	6 Months Ended Oct. 02, 2009 USD / shares
Other Expense Income [Abstract]
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 or immaterial businesses. For the quarters and six months ended October 2, 2009, and October 3, 2008, the components of other (income)/expense were as follows: Quarter Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Foreign exchange losses, net $ 4 $ - Equity in earnings of unconsolidated affiliates (4 ) (4 ) Gain on sale of non-operating assets (1 ) - Total Other (Income)/Expense $ (1 ) $ (4 ) Six Months Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Foreign exchange losses, net $ 5 $ 14 Equity in earnings of unconsolidated affiliates (9 ) (9 ) Gain on sale of non-operating assets (5 ) - Total Other (Income)/Expense $ (9 ) $ 5 Net foreign exchange losses of$5 million and $14 million for the six months ended October 2, 2009, and October 3, 2008, respectively, were attributed to the costs to hedge foreign currency intercompany balances and foreign currency economic risk associated with off-shore operations and miscellaneous foreign currency losses due to unhedged intercompany balances. The total premium cost paid for the Companys option program was $1 million and none for the quarter, and $6 million and $5 million for the six months ended October 2, 2009, and October 3, 2008, respectively.As of October 2, 2009, and October 3, 2008, the notional amount of option contracts outstanding was approximately $182 million and $156 million, respectively. Gain on sale of non-operating assets for the first six months of fiscal year 2010 was primarily from a $4 million gain on sale of the former corporate headquarters in El Segundo, California, in June 2009.

Pension and Other Benefit Plans

Pension and Other Benefit Plans
	6 Months Ended Oct. 02, 2009 USD / shares
Pension And Other Benefit Plans [Abstract]
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 (Amounts in millions) October 2, 2009 October 3, 2008 Pensions U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ 4 $ 8 $ 29 $ 12 Interest cost 42 28 37 30 Expected return on assets (40 ) (23 ) (43 ) (33 ) Amortization of unrecognized net loss and other 1 6 2 3 Net periodic pension cost $ 7 $ 19 $ 25 $ 12 Six Months Ended (Amounts in millions) October 2, 2009 October 3, 2008 Pensions U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Service cost $ 28 $ 16 $ 58 $ 24 Interest cost 83 54 74 60 Expected return on assets (78 ) (45 ) (86 ) (67 ) Amortization of transition obligation - - - 1 Amortization of unrecognized net loss and other 4 11 3 6 Pension curtailment (13 ) - - - Net periodic pension cost $ 24 $ 36 $ 49 $ 24 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 increase in 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 fiscal 2010 first quarter ended July 3, 2009. The service cost for U.S. pension plans during the quarter ended October 2, 2009, decreased by $25 million when compared to the quarter ended October 3, 2008, due mainly to the freeze of the Plan.Similarly, the service cost for U.S. pension plans decreased by approximately $30 million between the six months ended October 2, 2009, and the six months ended October 3, 2008, due mainly to the freeze of the Plan. The Company expects to contribute approximately $135 million to its defined benefit pension during fiscal 2010.During the quarter ended October 2, 2009, the Company contributed $21 million to its defined ben

Income Taxes

Income Taxes
	6 Months Ended Oct. 02, 2009 USD / shares
Income Taxes
Income Taxes	The effective tax rate for the second quarter ended and six months ended was 14.9% and 20.5% for fiscal year 2010, and (143.6%) and (58.9%) for fiscal year 2009, respectively.The increase in the fiscal year 2010 rate is primarily due to favorable settlements of open audit years that were recognized during the second quarter of fiscal year 2009.During the second quarter of fiscal year 2010, the Company recorded tax benefits related to the reversal of a valuation allowance associated with branch net operating loss carryforwards and the remeasurement of an uncertain tax position for foreign tax credits as a result of an audit settlement.The recognition of these benefits resulted in a decrease to the effective tax rate for the second quarter ended and six months ended of 14.7% and 8.5% for fiscal year 2010, respectively.In addition, the fiscal year 2009 effective tax rates reflect 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: As of (Amounts in millions) October 2, 2009 April 3, 2009 Income taxes payable $ 39 $ 40 Deferred income tax liabilities 246 259 Liability for uncertain tax positions - 18 Total $ 285 $ 317 The income tax liabilities and deferred income taxes line included in non-current liabilities consists of the following: As of (Amounts in millions) October 2, 2009 April 3, 2009 Deferred income tax liabilities $ - $ - Liability for uncertain tax positions 477 486 Total $ 477 $ 486 Receivables include income taxes receivable of $71 million and $8 million as of October 2, 2009, and April 3, 2009, respectively.Prepaid expenses and other current assets include the current portion of deferred income taxes of $18 million and $10 million as of October 2, 2009, and April 3, 2009, respectively. Other assets include non-current deferred income tax assets of $157 million and $169 million as of October 2, 2009, and April 3, 2009, respectively.Other long-term liabilities include non-current income taxes payable of $20 million and $0 million as of October 2, 2009, and April 3, 2009, respectively. As of October 2, 2009, in accordance with ASC 740-10 (FASB Interpretation No. 48), the Company's liability for uncertain tax positions was $477 million, including interest of $84 million and penalties of $25 million.The Companys liability for uncertain tax positions at October 2, 2009 includes $282 million related to amounts that, if recognized, would affect the effective tax rate (excluding related interest and penalties). The total amount of uncertain tax positions decreased by approximately $27 million compared to fiscal year end 2009, primarily due to settlements with taxing authorities in foreign jurisdictions which also resulted in the remeasurement of an uncertain tax position for foreign tax credits. Tax Examination St

Stock Incentive Plans

Stock Incentive Plans
	6 Months Ended Oct. 02, 2009 USD / shares
Stock Incentive Plans
Stock Incentive Plans	As of October 2, 2009, the Company had outstanding stock option and equity awards issued pursuant to various shareholder-approved plans.For the three and six months ended October 2, 2009, and October 3, 2008, the Company recognized stock-based compensation expense as follows: Quarter Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Cost of services $ 4 $ 4 Selling, general and administrative 12 13 Total $ 16 $ 17 Total net of tax $ 10 $ 10 Six Months Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Cost of services $ 8 $ 8 Selling, general and administrative 26 26 Total $ 34 $ 34 Total net of tax $ 21 $ 21 The Companys overall stock-based compensation granting practice has not changed year over year and there have been no material changes in the underlying assumptions in the fair value calculations. 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 six months ended October 2, 2009, and October 3, 2008, were $15.10 and $15.94 per share, respectively.In calculating the compensation expense for its stock incentive plans, the Company used the following weighted average assumptions: Six Months Ended Oct. 2, 2009 Oct. 3, 2008 Risk-free interest rate 2.20% 3.23% Expected volatility 42% 36% Expected lives 4.13 years 4.07 years During the six months ended October 2, 2009, and October 3, 2008, the Company realized income tax benefits of $6 million and $6 million, respectively, and an excess tax benefit of $3 million 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 October 2, 2009, 9,145,711 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: As of Oct. 2, 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 $ 23 Granted 2,797,990 42.29 Exercised (787,577 ) 38.49

Dividends

Dividends
	6 Months Ended Oct. 02, 2009 USD / shares
Dividends [Abstract]
Dividends	No dividends were paid or declared during the periods presented.

Cash Flows

Cash Flows
	6 Months Ended Oct. 02, 2009 USD / shares
Cash Flows [Abstract]
Cash Flows	Cash payments for interest on indebtedness were $121 million and $127 million for the six months ended October 2, 2009, and October 3, 2008, respectively.Net cash payments for taxes on income were $198 million and $156 millionfor the six months ended October 2, 2009, and October 3, 2008, respectively.Noncash investing activities included capital lease obligations of $25 million and $44 millionfor the six months ended October 2, 2009, and October 3, 2008, respectively.

Stockholders' Equity and Compre

Stockholders' Equity and Comprehensive Income
	4/4/2009 - 10/2/2009 USD / shares
Stockholders Equity And Comprehensive Income [Abstract]
Stockholders' Equity and Comprehensive Income	The changes in stockholders equity are as follows: (Amounts in millions) Total Equity CSC Equity Noncontrolling Interest Equity Balance at March 28, 2008 $ 5,462 $ 5,303 $ 159 Net income 577 572 5 Common stock 1 1 - Additional paid in capital 46 46 - Foreign currency translation adjustment (315 ) (315 ) - Unfunded pension adjustment 1 1 - Common stock in treasury (3 ) (3 ) - Distributions and other (proceeds on sale) (30 ) (30 ) - Balance at October 3, 2008 $ 5,739 $ 5,575 $ 164 (Amounts in millions) Total Equity CSC Equity Noncontrolling Interest Equity Balance at April 3, 2009 $ 5,618 $ 5,510 $ 108 Net income 353 346 7 Common stock 1 1 - Additional paid in capital 64 64 - Foreign currency translation adjustment 355 355 - Unfunded pension adjustment 47 47 - Common stock in treasury (3 ) (3 ) - Distributions and other (proceeds on sale) (55 ) - (55 ) Balance at October 2, 2009 $ 6,380 $ 6,320 $ 60 The components of comprehensive income, net of tax, are as follows: Quarter Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Net income attributable to CSC common shareholders $ 216 $ 452 Foreign currency translation adjustment 71 (340 ) Comprehensive income $ 287 $ 112 Six Months Ended (Amounts in millions) Oct. 2, 2009 Oct. 3, 2008 Net income attributable to CSC common shareholders $ 346 $ 572 Foreign currency translation adjustment 355 (315 ) Unfunded pension adjustment 47 1 Comprehensive income $ 748 $ 258 The components of accumulated other comprehensive losses are as follows: As of (Amounts in millions) Oct. 2, 2009 Apr. 3, 2009 Foreign currency translation adjustment $ 136 $ (219 ) Unfunded pension adjustment (738 ) (785 ) Accumulated Other Comprehensive Loss $ (602 ) $ (1,004 ) Accumulated other comprehensive (loss)/income presented on the accompanying consolidated condensed balance sheets consist of accumulated foreign currency translation adjustments and unamortized benefit plan costs. The unfunded pension adjustment is attributable to the pension curtailment effective May 20, 2009, as discussed in Note 7. The foreign currency translation adjustment is due to appreciation in foreign currency-denominated assets and liabilities, primarily British Pound and Euro movements of 11.2% and 9.5%, respectively.

Segment Information

Segment Information
	6 Months Ended Oct. 02, 2009 USD / shares
Segment Information [Abstract]
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), and Business 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. 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 separately to 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, there were three reportable segments: 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 fiscal 2009, 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 comparable with fiscal 2010.The following tables summarize operating results by reportable segment for the following

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	6 Months Ended Oct. 02, 2009 USD / shares
Goodwill And Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, 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.During the second quarter of fiscal 2010, the Company performed its annual impairment test of goodwill and concluded that no impairment had occurred. The following table summarizes the changes in the carrying amount of goodwill by segment for the quarter ended October 2, 2009: (Amounts in millions) NPS MSS BSS Total Balance as of April 3, 2009 $ 692 $ 1,871 $ 1,221 $ 3,784 Additions 2 - 12 14 Foreign currency translation - 85 41 126 Balance as of October 2, 2009 $ 694 $ 1,956 $ 1,274 $ 3,924 During the first quarter of fiscal 2010, the Company revised its segment reporting structure as discussed in Note 13.As a result of this revision, the April 3, 2009, balances have been modified to reflect this change. The foreign currency translation amount relates to the impact of foreign currency adjustments in accordance withASC 830-10 (SFAS No. 52), Foreign Currency Translation. A summary of amortizable intangible assets as of October 2, 2009, and April 3, 2009, is as follows: As of October 2, 2009 (Amounts in millions) Gross Carrying Value Accumulated Amortization Net Software $ 1,632 $ 1,161 $ 471 Outsourcing contract costs 2,069 1,389 680 Customer and other intangible assets 395 215 180 Total intangible assets $ 4,096 $ 2,765 $ 1,331 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 $107 million and $133 million for the three months and $209 million and $267 million for the six months ended October 2, 2009, and October 3, 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: $350 million,$266 million, $216 million, $158 millionand $110 million, respectively.

Commitments and Contingencies

Commitments and Contingencies
	6 Months Ended Oct. 02, 2009 USD / shares
Commitments and Contingencies [Abstract]
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 October 2, 2009, the Company had$55million of accounts receivable, $16million of allowances for doubtful accounts, $16million of fixed assets, $8million of other assets, and $4million of outsourcing contract costs with customers involved in bankruptcy proceedings. In the normal course of business, the Company may 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.As of October 2, 2009, the Company had $449 millionof outstanding letters of credit and surety bonds relating to these performance 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 $708 million of such working capital lines, and theamount of the maximum potential payment is $29 million,representingthe amount of the related outstanding subsidiary debt as of October 2, 2009. The $29 million outstanding subsidiary 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

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	6 Months Ended Oct. 02, 2009 USD / shares
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	In October 2009, the FASB issued ASU No. 2009-14-Certain Revenue Arrangements that include Software Elements-a consensus of the FASB Emerging Issues Task Force, which amends Topic 985: Software to exclude from the scope all tangible products containing both software and non-software components that function together to deliver the products essential functionality.In addition, if the software contained on the tangible product is essential to the tangible products functionality, the software is excluded from the scope of the software revenue guidance. The amendments in the Update will become effective prospectively in fiscal years beginning on or after June 15, 2010. Early adoption is permitted.The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations and cash flows. In October 2009, the FASB issued ASU No.2009-13-Multiple-Deliverable Revenue Arrangementsa consensus of the FASB Emerging Issues Task Force, which amends Topic 605: Revenue Recognition. This Update addresses the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. The amendments in the Update establish a selling price hierarchy for determining the selling price of a deliverable and eliminate the residual method of allocation. The selling price used for each deliverable will be based on vendor-specific objective evidence if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific objective evidence nor third-party evidence is available. Vendors will be required to determine their best estimate of selling price in a manner that is consistent with that used to determine its price to sell the deliverable on a standalone basis.The amendments in the Update will become effective prospectively in fiscal years beginning on or after June 15, 2010.Early adoption is permitted.The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations and cash flows. In August 2009, the FASB issued ASU No. 2009-05-Measuring Liabilities at Fair Value, which amends Topic 820: Fair Value Measurements and Disclosures. This Update provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: 1) A valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities; and 2) Another valuation technique that is consistent with the principles of Topic 820. The statement will become effective for CSCs third quarter ended January 1, 2010, and is not expected to have a material effect on CSCs financial statements. In December 2008, the FASB issued FSP FAS 132(R)-1, later codified in ASC 715-20-65, Employers Disclosures about Postretirement Benefit Plan Assets, which amends SFAS 132(R) to re

Document Information

Document Information
	6 Months Ended Oct. 02, 2009 USD / shares
[DocumentInformationLineItems]
Document Type	10-Q
Document Period End Date	2009-10-02
Amendment Flag	false

Entity Information

Entity Information (USD $)
	6 Months Ended Oct. 02, 2009
[EntityInformationLineItems]
Entity Registrant Name	COMPUTER SCIENCES CORP
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	$8,121,648,000
Entity Common Stock, Shares Outstanding	152,418,908