Computer Sciences (CSC) 10-K 21 May 10 2010 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Apr. 02, 2010	Apr. 03, 2009
Current assets:
Cash and cash equivalents	$2,784	$2,297
Receivables, net of allowance for doubtful accounts of $47 (2010) and $55 (2009)	3,849	3,786
Prepaid expenses and other current assets	1,789	1,624
Total current assets	8,422	7,707
Intangible and other assets:
Software, net of accumulated amortization of $1,205 (2010) and $1,082 (2009)	511	476
Outsourcing contract costs, net of accumulated amortization of $1,233 (2010) and $1,241 (2009)	642	684
Goodwill	3,866	3,784
Other assets	773	615
Total intangible and other assets	5,792	5,559
Property and equipment - at cost:
Land, buildings and leasehold improvements	1,191	1,132
Computers and related equipment	4,301	4,176
Furniture and other equipment	480	462
Property and equipment - at cost	5,972	5,770
Less accumulated depreciation and amortization	3,731	3,417
Property and equipment, net	2,241	2,353
Total assets	16,455	15,619
Current liabilities:
Short-term debt and current maturities of long-term debt	75	62
Accounts payable	409	636
Accrued payroll and related costs	821	822
Other accrued expenses	1,344	1,264
Deferred revenue	1,189	915
Income taxes payable and deferred income taxes	284	317
Total current liabilities	4,122	4,016
Long-term debt, net of current maturities	3,669	4,173
Income tax liabilities and deferred income taxes	550	486
Other long-term liabilities	1,606	1,326
Stockholders' equity:
Common stock, par value $1 per share; authorized 750,000,000 shares; issued 162,234,314 (2010) and 159,688,820 (2009)	162	160
Additional paid-in capital	2,006	1,836
Earnings retained for use in business	5,709	4,893
Accumulated other comprehensive loss	(1,052)	(1,004)
Less common stock in treasury, at cost, 8,284,771 (2010) and 8,190,333 (2009)	(379)	(375)
Total CSC stockholders' equity	6,446	5,510
Noncontrolling interest in subsidiaries	62	108
Total stockholders' equity	6,508	5,618
Total liabilities and stockholders' equity	$16,455	$15,619

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, except Share data	Apr. 02, 2010	Apr. 03, 2009
Current assets:
Receivables, net of allowance for doubtful accounts of $47 (2010) and $55 (2009)	$3,849	$3,786
Intangible and other assets:
Software, net of accumulated amortization of $1,205 (2010) and $1,082 (2009)	511	476
Outsourcing contract costs, net of accumulated amortization of $1,233 (2010) and $1,241 (2009)	$642	$684
Stockholders' equity:
Common stock, par value $1.00 per share; authorized 750,000,000 shares;	162,234,314	159,688,820
Less common stock in treasury, at cost	8,284,771	8,190,333

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Apr. 02, 2010	12 Months Ended Apr. 03, 2009	12 Months Ended Mar. 28, 2008
Income Statement [Abstract]
Revenues	$16,128	$16,740	$16,500
Costs of services (excludes depreciation and amortization)	12,797	13,268	13,150
Selling, general and administrative	991	1,083	975
Depreciation and amortization	1,097	1,186	1,199
Goodwill impairment	0	19	0
Interest expense	252	260	185
Interest income	(27)	(41)	(37)
Special items	0	0	156
Other (income)/expense	(20)	8	(60)
Total costs and expenses	15,090	15,783	15,568
Income before taxes	1,038	957	932
Taxes on income	204	(166)	373
Net income	834	1,123	559
Less: net income attributable to noncontrolling interest, net of tax	17	8	14
Net income attributable to CSC common shareholders	$817	$1,115	$545
Earnings per common share
Basic	5.36	7.37	3.26
Diluted	5.28	7.31	3.2

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Apr. 02, 2010	12 Months Ended Apr. 03, 2009	12 Months Ended Mar. 28, 2008
Cash flows from operating activities:
Net income	$834	$1,123	$559
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,156	1,270	1,286
Stock based compensation	64	54	60
Deferred taxes	8	247	(65)
(Gain)/loss on dispositions	(5)	(1)	3
Provision for losses on accounts receivable	23	33	3
Excess tax benefit from stock based compensation	(9)	(1)	(11)
Unrealized foreign currency exchange (gain)/loss	(28)	98	(27)
Impairment losses and contract write-offs	23	53	39
Cash surrender value in excess of premiums paid	(5)	(5)	(4)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease (increase) in receivables	70	224	(217)
Increase in prepaid expenses and other current assets	(153)	(164)	(368)
Decrease in accounts payable and accruals	(409)	(323)	(110)
(Decrease) increase in income taxes payable and income tax liability	(135)	(820)	130
Increase in deferred revenue	207	236	87
Other operating activities, net	2	(38)	(22)
Net cash provided by operating activities	1,643	1,986	1,343
Cash flows from investing activities:
Purchases of property and equipment	(578)	(699)	(877)
Outsourcing contracts	(176)	(165)	(165)
Acquisitions, net of cash acquired	(5)	(100)	(1,591)
Business dispositions	14	0	0
Software purchased and developed	(173)	(163)	(172)
Other investing activities, net	128	89	86
Net cash used in investing activities	(790)	(1,038)	(2,719)
Cash flows from financing activities:
Net (repayment) borrowing of commercial paper	0	(263)	255
Borrowings under lines of credit	130	1,848	304
Repayment of borrowings under lines of credit	(137)	(320)	(317)
Proceeds from debt issuance	0	0	3,100
Principal payments on long-term debt	(537)	(532)	(1,440)
Proceeds from stock options, and other common stock transactions	100	13	86
Excess tax benefit from stock based compensation	9	1	11
Repurchase of common stock and acquisition of treasury stock	(3)	(4)	(1,013)
Other financing activities, net	(49)	(1)	12
Net cash (used in)/provided by financing activities	(487)	742	998
Effect of exchange rate changes on cash and cash equivalents	121	(92)	27
Net increase (decrease) in cash and cash equivalents	487	1,598	(351)
Cash and cash equivalents at beginning of year	2,297	699	1,050
Cash and cash equivalents at end of year	$2,784	$2,297	$699

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
In Millions, except Share data in Thousands	Common Stock	Additional Paid-In Capital	Earnings Retained for Use in Business	Accumulated Other Comprehensive Income	Common Stock in Treasury	Total CSC Equity	Non-Controlling Interest	Total
Shares, beginning balance at Mar. 30, 2007	181,105
Amount, beginning balance at Mar. 30, 2007	$181	$1,876	$4,141	($304)	($354)	$5,540	$150	$5,690
Net income			545			545	14	559
Currency translation adjustment				225		225		225
Unfunded pension obligation				181		181		181
Unrealized gain on available for sale securities				1		1		1
Reclassification adjustment for gains realized in net income				(2)		(2)		(2)
Comprehensive income						950		964
Acquisition of treasury stock					(17)	(17)		(17)
Stock based compensation expense and option exercises	2	159				161		161
Stock based compensation expense and option exercises (in shares)	2,425
Repurchase common stock	(24)	(263)	(712)			(999)		(999)
Repurchase common stock (in shares)	(24,311)
Adjustment to initially apply ASC 740-10 (FIN 48)		(1)	(172)			(173)		(173)
Distributions and Other							(5)	(5)
Shares, ending balance at Mar. 28, 2008	159,219
Amount, ending balance at Mar. 28, 2008	159	1,771	3,802	101	(371)	5,462	159	5,621
Net income			1,115			1,115	8	1,123
Currency translation adjustment				(638)		(638)		(638)
Unfunded pension obligation				(467)		(467)		(467)
Comprehensive income						10		18
Acquisition of treasury stock					(4)	(4)		(4)
Stock based compensation expense and option exercises	1	65				66		66
Stock based compensation expense and option exercises (in shares)	470
Change in pension valuation date per ASC 715			(24)			(24)		(24)
Distributions and Other							(59)	(59)
Shares, ending balance at Apr. 03, 2009	159,689
Amount, ending balance at Apr. 03, 2009	160	1,836	4,893	(1,004)	(375)	5,510	108	5,618
Net income			817			817	17	834
Currency translation adjustment				242		242		242
Unfunded pension obligation				(290)		(290)		(290)
Comprehensive income						769		786
Acquisition of treasury stock					(4)	(4)		(4)
Stock based compensation expense and option exercises	2	170				172		172
Stock based compensation expense and option exercises (in shares)	2,545
Distributions and Other			(1)			(1)	(63)	(64)
Shares, ending balance at Apr. 02, 2010	162,234
Amount, ending balance at Apr. 02, 2010	$162	$2,006	$5,709	($1,052)	($379)	$6,446	$62	$6,508

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Basis of Presentation	Note 1Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying financial statements and footnotes include on a consolidated basis those of Computer Sciences Corporation, its subsidiaries, and those joint ventures and partnerships over which it exercises control, hereafter collectively referred to as CSC or the Company.Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, generally 20 50 percent ownership, are accounted for by the equity method. Other investments are accounted for by the cost method. All intercompany transactions and balances have been eliminated. The accompanying consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and are pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain columns and rows within the financial tables in this Form 10-K include rounded numbers for disclosure purposes. Certain percentages and ratios are calculated from whole-dollar amounts. Contractual work in process balances at April 2, 2010, and April 3, 2009, of $932 million and $653 million, respectively, are included in prepaid expenses and other current assets. Prior year amounts have been recast from those presented in previously filed Forms 10-K to reflect implementation of Accounting Standards Codification (ASC) 810-10 (Statements of Financial Accounting Standards (SFAS) No. 160), Noncontrolling Interests in Consolidated Financial Statements. Equity in earnings of unconsolidated affiliates of $15 million and $12 million for 2009 and 2008 have been reclassified from cost of services to Other (income)/expense in the consolidated statements of income. Use of Estimates GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.Amounts subject to significant judgments and estimates include, but are not limited to, costs to complete fixed price contracts, cash flows used in the evaluation of impairment of goodwill, intangible assets, certain deferred costs, collectability of receivables, reserves for uncertain tax benefits, loss accruals for litigation, pension related liabilities, inputs used for computing stock-based compensation and fair value of derivative instruments. Revenue Recognition The Companys primary service offerings are information technology (IT) outsourcing and IT and other professional services. The Company provides these services under time and materials, cost-reimbursable, unit-price and fixed-price contracts. The form of contract, rather than the type of service offering, is the primary determinant of revenue recognition. Except as described below for certain fixed price contracts, revenues are recognized when persuasive evidence of an arrangement exists, services or products have been provided to the client, the sales price is fixed or determ

Acquisitions

Acquisitions
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Acquisitions	Note 2 Acquisitions During fiscal 2009, CSC acquired two separate privately held entities for approximately $38 million cash plus additional consideration of up to $19 million contingent on achievement of agreed revenue targets for future periods.The purchase price of the acquisitions was allocated to the net assets acquired based on fair values at the date of acquisition, which resulted in approximately $26 million allocated to goodwill, of which $17 million was allocated to the NPS segment and $9 million to the BSS segment.Additionally, $8 million was allocated to identifiable intangible assets, which are primarily customer related intangibles (estimated useful life of five to six years).The goodwill is tax deductible for U.S. federal income tax purposes.Of the total additional contingent consideration, no amounts became due in fiscal 2010. Also during fiscal 2009, CSC acquired the 49%of Computer Systems Advisers (M) Berhad (CSAM) not previously owned by the Companys wholly-owned subsidiary, CSA Holding, Ltd.The acquisition allowed for better integration of similar business between CSAM and CSCs other operations.The purchase price of the remaining interest was approximately $63 million, which resulted in approximately $17 million allocated to goodwill, of which $8 million was allocated to BSS and $9 million to MSS. The goodwill was not tax-deductible for U.S. federal income tax purposes. On January 11, 2008, CSC acquired all outstanding shares of First Consulting Group (FCG), a publicly-held U.S. corporation, in an all-cash transaction for $13.00 per share, or approximately $275 million net of acquired cash.FCG is a professional services firm focused on healthcare and technology.FCG clients include healthcare providers, health plans, government healthcare, pharmaceutical companies, life sciences organizations, independent software vendors and other clients both within healthcare and in other industries.The acquisition of FCG increased the Companys healthcare capabilities, offerings, and presence in the United States, Europe and Asia. The acquisition was accounted for using the purchase method and, accordingly, FCGs results of operations have been included with the Companys from the date of acquisition.The purchase price of the acquisition was allocated to the net assets acquired based on fair values at the date of acquisition.Based on the estimates of fair value, $27 million was allocated to identifiable intangible assets and $221 million was allocated to goodwill.Of the $27 million allocated to identifiable intangible assets, $3 million was assigned to internally developed software (estimated useful life of five years), and $24 million allocated to customer related intangibles (estimated useful life of three years).The amount of goodwill is primarily attributable to the increased delivery capabilities and penetration of certain industry segments, particularly healthcare, anticipated to be provided by the acquisition as described above.Of the $221 million goodwill recognized, $154 million was assigned to BSS segment and $67 million was assigned to MSS segment in 2008.None of the goodwill is deductible for tax purposes. The follo

Fair Value

Fair Value
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Fair Value	Note 3Fair Value The following table presents the Companys assets and liabilities that are measured at fair value on a recurring basis as of April 2, 2010, and April 3, 2009: As of (Amounts in millions) April 2, 2010 Fair Value Hierarchy Fair Value Level 1 Level 2 Level 3 Money market funds $ 1,207 $ 1,207 $ - $ - Time deposits 609 609 - - Total $ 1,816 $ 1,816 $ - $ - 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, net 1 - 1 - Total $ 1,740 $ 1,739 $ 1 $ - The money market funds and time deposits are included and reported in cash and cash equivalents whereas the derivative assets are included and reported in prepaid expenses and other current assets, and derivative liabilities in accrued expenses. Gains and losses from changes in the fair value of derivatives are included in earnings and reported in other (income)/expense (See Note 13). Financial Instruments The carrying amount of financial instruments, including cash and cash equivalents, receivables, prepaid expenses and other current assets, accounts payable and accrued expenses, approximates fair value due to the short maturities of these instruments, except for $379 million in receivables and $227 million in prepaid expenses related to claims for which the values are subject to litigation and therefore it is not practicable to estimate fair value(See Note 15 for further discussion). Following is a summary of the carrying amounts and the estimated fair values of the Company's financial instruments for which the carrying amount and estimated fair value are different at April 2, 2010, and April 3, 2009: April 2, 2010 April 3, 2009 (Amounts in millions) Notional Amount Carrying Amount Estimated Fair Value Amount Notional Amount Carrying Amount Estimated Fair Value Amount Derivative assets, net (Note 5) $ 520 $ - $ - $ 951 $ 1 $ 1 Long-term debt (Note 9) - 3,669 3,854 - 4,173 4,154 Total $ 520 $ 3,669 $ 3,854 $ 951 $ 4,174 $ 4,155 Derivative assets include foreign currency forward contracts and put options.The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates, and is based on the year-end foreign currency exchange rates and forward points. The fair value of purchased put options is estimated based on external valuation models that use the original strike price, movement and volatility in foreign currency exchange rates, and length of time to expiration, as inputs. 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.

Receivables

Receivables
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Loans Notes Trade And Other Receivables Disclosure [Text Block]	Note 4-Receivables Receivables consist of the following: (Amounts in millions) April 2, 2010 April 3, 2009 Billed trade accounts $ 2,064 $ 2,233 Unbilled recoverable amounts under contracts in progress 1,596 1,479 Other receivables 189 74 Total $ 3,849 $ 3,786 Unbilled recoverable amounts under contracts in progress generally become billable upon completion of a specified contract, negotiation of contract modifications, completion of government audit activities, achievement of project milestones or upon acceptance by the customer.Unbilled recoverable amounts under contracts in progress of $498 million are expected to be collected after fiscal 2011, including $379 million in claims as discussed in Note 15.

Foreign Currency Derivative Ins

Foreign Currency Derivative Instruments
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Derivative Instruments	Note 5Foreign Currency Derivative Instruments 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 and purchased option contracts 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 are not designated as hedges, as defined in ASC 815 (FAS 133) Derivatives and Hedging, and, thus, all changes in fair value are reported in net earnings as part of Other (income)/expense (See Note 13). The notional amount of forward contracts outstanding was approximately $474 million and $951 million as of April 2, 2010 and April 3, 2009, respectively. The notional amount of purchased option contracts outstanding was $46 million as of April 2, 2010, but none were outstanding on April 3, 2009.The estimated aggregate fair value of the forward and option contracts were immaterial as of April 2, 2010 and April 3, 2009, respectively. As a result of the use of derivative instruments, the Company is subject to counterparty credit risks. To mitigate this risk, the Company enters into contracts with only large financial institutions and regularly reviews its credit exposure and the creditworthiness of the counterparty.

Goodwill

Goodwill
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Goodwill	Note 6Goodwill Goodwill is reviewed for impairment annually, as of the first day of the second fiscal quarter or more frequently if indicators of impairment exist. Goodwill has been assigned to five reporting units for the purposes of impairment testing. Reporting units are defined as operating segments or groupings of businesses one level below the operating segment level for which discrete financial information is available and for which segment management regularly reviews the operating results. A significant amount of judgment is involved in determining if an indicator of impairment has occurred between annual testing dates. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in stock price and 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.Any adverse change in these factors could have a significant impact on the recoverability of goodwill. The goodwill impairment test involves a two-step process. The first step is a comparison of each reporting units fair value to its carrying value.If a reporting units carrying value exceeds its fair value, an impairment of goodwill may exist.The Company estimates the fair value of each reporting unit utilizing an income approach, which incorporates the use of a discounted cash flow method.In applying the discounted cash flow method, the estimated future cash flows and terminal values for each reporting unit are discounted to a present value using a weighted average cost of capital. In estimating the fair value of the reporting units, the Company applied discount rates based on the specific risk characteristics of each reporting unit.The Companys cash flow projections use managements estimates of economic and market conditions over the projected period including revenue growth rates, operating margins, capital expenditures and working capital requirements. The fair values of reporting units estimated using the income approach were assessed for reasonableness by comparing those values to fair value estimates derived using a market approach. A market approach estimates fair value by applying performance metric multiples to the reporting units operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units.If the fair value of the reporting unit derived using the market approach were significantly different from the fair value estimated in the income approach, the Company would reevaluate and adjust the assumptions used in the income approach. If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step test must be performed to measure the amount of impairment loss. The amount of impairment loss is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporti

Intangible Assets

Intangible Assets
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Intangible Assets	Note 7Intangible Assets A summary of amortizable intangible assets as of April 2, 2010, and April 3, 2009, is as follows: April 2, 2010 (Amounts in millions) Gross Carrying Value Accumulated Amortization Net Software $ 1,716 $ 1,205 $ 511 Outsourcing contract costs 1,875 1,233 642 Customer and other intangible assets 397 234 163 Total intangible assets $ 3,988 $ 2,672 $ 1,316 April 3, 2009 (Amounts in millions) Gross Carrying Value Accumulated Amortization 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 (including reduction of revenues as described in Note 1) related to intangible assets was $434 million, $489 million, and $479 million for the years ended April 2, 2010, April 3, 2009, and March 28, 2008, respectively.Estimated amortization related to intangible assets at April 2, 2010, for each of the subsequent five years, fiscal 2011 through fiscal 2015, is as follows: $383 million, $296 million, $222 million, $153 million, and $99 million, respectively. Capitalized and purchased software, net of accumulated amortization, consisted of the following: (Amounts in millions) April 2, 2010 April 3, 2009 Commercial software products $ 178 $ 179 Internal-use software 11 19 Purchased software 322 278 Total $ 511 $ 476 Amortization expense related to commercial software products was $31 million, $35 million, and $44 million for the years ended April 2, 2010, April 3, 2009, and March 28, 2008.Amortization expense related to internal-use software was $9 million, $9 million, and $8 million for the years ended April 2, 2010, April 3, 2009, and March 28, 2008.Amortization expense related to purchased software was $117 million, $130 million, and $115 million for the years ended April 2, 2010, April 3, 2009, and March 28, 2008.

Income Taxes

Income Taxes
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Income Taxes	Note 8 Income Taxes The sources of incomebefore income taxes from continuing operations, classified between domestic entities and those entities domiciled outside of the United States, are as follows: Twelve Months Ended (Amounts in millions) April 2, 2010 April 3, 2009 March 28, 2008 Domestic entities $ 455 $ 507 $ 584 Entities outside the United States 583 450 348 Total $ 1,038 $ 957 $ 932 The income tax expense (benefit) on income from continuing operations is comprised of: Twelve Months Ended (Amounts in millions) April 2, 2010 April 3, 2009 March 28, 2008 Current Federal $ 97 $ (391 ) $ 339 State (33 ) (134 ) 33 Foreign 132 112 66 196 (413 ) 438 Deferred Federal 44 270 (86 ) State (19 ) 7 (18 ) Foreign (17 ) (30 ) 39 8 247 (65 ) Total income tax expense (benefit) $ 204 $ (166 ) $ 373 The current provision (benefit) for fiscal years 2010, 2009, and 2008 includes interest and penalties of $2 million, ($326 million), and $66 million, respectively, for uncertain tax positions. The major elements contributing to the difference between the U.S. federal statutory tax rate of 35.0% and the effective tax rate are as follows: Twelve Months Ended April 2, 2010 April 3, 2009 March 28, 2008 Statutory rate 35.0 % 35.0 % 35.0 % State income tax, net of federal tax 1.2 1.6 0.6 Change in uncertain tax positions (2.8 ) 7.6 3.4 Foreign tax rate differential (6.6 ) (2.6 ) 1.0 Income tax credits (0.8 ) (1.0 ) (0.7 ) Valuation allowance (5.6 ) 0.0 0.0 Tax audit settlements 0.0 (56.6 ) 0.0 Other items, net (0.7 ) (1.3 ) 0.7 Effective tax rate 19.7 % (17.3 %) 40.0 % The deferred tax assets (liabilities) are as follows: (Amounts in millions) April 2, 2010 April 3, 2009 Deferred tax assets (liabilities) Employee benefits $ 694 $ 524 Tax loss/credit carryforwards 229 263 Depreciation and amortization (385 ) (397 ) Contract accounting (379 ) (366 ) Investment basis differences (132 ) (91 ) Accrued interest 29 20 Foreign currency 9 29 State taxes 17 24 Other assets 94 103 Other liabilities (32 ) (43 ) Subtotal 144 66 Valuation allowance (87 ) (147 ) Total deferred tax assets (liabilities) $ 57 $ (81 ) Income tax related assets are included in the accompanying balance sheet as follows.Prepaid expenses and other current assets include the current portion of deferred tax assets of $17 million and $10 million as of April 2, 2010, and April 3, 2009, respectively.Receivables include income taxes receivable of $102 million and $8 million as of April 2, 2010, and April 3, 2009, respectively.Other assets include non-current deferred tax assets of $363 million and $168 million as of April 2, 2010, and April 3, 2009, respectively, and non-current income taxes receivable of $9 million and $0 million as of April 2, 2010, and April 3, 2009, respectively. Income tax related liabilities are included in the accompanying

Debt

Debt
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Debt	Note 9Debt Short-term The Companys commercial paper program is backed by a $1.5 billion multi-year committed revolving credit facility (Credit Facility) which expires on July 12, 2012.As of both April 2, 2010, and April 3, 2009, the Company had $0 commercial paper outstanding. Foreign subsidiaries of the Company had $21 million and $32 million of borrowings outstanding under its uncommitted lines of credit with certain foreign banks, as of April 2, 2010, and April 3, 2009, respectively.CSC has provided parent guarantees for up to $697 million of these short-term lines of credit which carry no commitment fees or significant covenants.The weighted average interest rate on borrowings under these short-term lines of credit was 4.5% at April 2, 2010, and 4.1% at April 3, 2009. Long-term The following is a summary of long-term debt: (Amounts in millions) As of April 2, 2010 As of April 3, 2009 Effective Rate 7.375% term notes, due June 2011 $ 499 7.48 5.00% term notes, due February 2013 $ 299 299 5.16 6.50% term notes, due April 2018 997 996 6.56 5.50% term notes, due February 2013 698 697 5.61 Credit Facility, due July 2012 1,500 1,500 0.83 Capitalized lease liabilities 214 195 Notes payable 15 17 Total long-term debt 3,723 4,203 Less current maturities 54 30 Total long-term debt less current maturities $ 3,669 $ 4,173 Pursuant to the credit agreements, the Company is subject to premium provisions associated with optional redemptions.In fiscal 2010, the Company paid approximately $39 million in redemption premiums associated with the repayment of the 7.375% term notes. The Credit Facility is unsecured and bears a variable rate of interest.The Company can elect to borrow at a prime rate, as published by the Bank of America, plus a margin or at a one, two, three, or six month LIBOR plus a margin.The margin in turn varies with the duration of the borrowing.On March 30, 2010, the Company redeemed $500 million principal 7.375% Senior Notes due 2011. Capitalized lease liabilities shown above represent amounts due under leases for the use of computers and other equipment. Included in property and equipment are related assets of $400 million (2010) and $352 million (2009), less accumulated amortization of $124 million and $91 million, respectively. Certain of the Companys borrowing arrangements contain covenants that require the Company to maintain certain financial ratios.The Company was in compliance with all covenants at April 2, 2010. Expected maturities of long-term debt, including capital leases, for years subsequent to April 2, 2010, are as follows (in millions): 2011. $ 54 2012. 1,539 2013. 1,023 2014. 16 2015. 14 Thereafter 1,077 Total.. $ 3,723

Pension and Other Benefit Plans

Pension and Other Benefit Plans
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Pension and Other Benefit Plans	Note 10Pension and Other Benefit Plans The Company and its subsidiaries offer a number of pension and postretirement benefit, life insurance benefit, deferred compensation, and other plans, as described below.All plans are accounted for using the guidance of ASC 715 CompensationRetirement Benefits. A contributory, defined benefit pension plan is generally available to U.S. employees. However, as discussed below, the largest U.S. defined benefit plan was amended on May 20, 2009, to freeze the future accrual of benefits for most participants effective July 10, 2009.Certain non-U.S. employees are enrolled in defined benefit pension plans in the country of domicile. In addition, the Company has two supplemental executive retirement plans (SERP), which are nonqualified, noncontributory pension plans. The Company provides subsidized healthcare and life insurance retirement benefits for certain U.S. employees and retirees, generally for those employed prior to August 1992, as well as dental and prescription drug benefits for certain Canadian employees. Most employees outside the U.S. are covered by government sponsored programs at no direct cost to the Company other than related payroll taxes. CSC utilizes actuarial methods required by ASC 715 to recognize the expense for pension and other postretirement benefit plans.Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related pension and other postretirement benefit costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants and changes in the level of benefits provided. CSC measured its pension and other postretirement benefit plans at fiscal year-end starting with fiscal 2009.Prior to fiscal 2009, the majority of the pension and postretirement benefit plans were measured at December 31. 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 Above Median Pension Discount Curve.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 plan.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. Pension Plans The following tables provide reconciliation

Agreement with Equifax

Agreement with Equifax
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Agreement with Equifax	Note 11Agreement with Equifax The Company has an agreement (the Operating Agreement) with Equifax Inc. and its subsidiary, Equifax Credit Information Services, Inc. (ECIS), pursuant to which certain of the Companys subsidiaries (collectively, the Bureaus) are affiliated credit bureaus of ECIS and utilize ECIS credit database to provide credit reporting services from the ECIS system for resale to their customers. The Bureaus retain ownership of their credit files stored in the ECIS system and receive revenues generated from the sale of the credit information they contain. The Bureaus pay ECIS a fee for the services it provides to them, and for each report supplied by the ECIS system. Pursuant to the Operating Agreement, the Company has an option to require ECIS to purchase CSCs credit reporting business (Credit Reporting Put Option). The option requires six months advance notice and expires on August 1, 2013. The exercise price of the option is equal to the appraised value of the credit reporting business.

Stock Incentive Plans

Stock Incentive Plans
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Stock Incentive Plans	Note 12Stock Incentive Plans Employee Incentives 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).As of April 2, 2010, 9,231,004 shares of CSC common stock were available for the grant of future stock options, equity awards or other stock-based incentives to employees.See Stock-Based Compensation section of Note 1Summary of Significant Accounting Policies for further details. 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 during fiscal 2010, fiscal 2009, and fiscal 2008 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (millions) Aggregate Intrinsic Value Outstanding as of March 30, 2007 17,060,082 $ 45.23 5.86 $ 140 Granted 3,553,466 54.68 Exercised (2,141,400 ) 40.18 Canceled/Forfeited (465,562 ) 52.53 Expired (251,572 ) 54.03 Outstanding as of March 28, 2008 17,755,014 47.38 5.79 28 Granted 2,596,730 47.71 Exercised (368,170 ) 34.52 Canceled/Forfeited (466,357 ) 53.23 Expired (1,222,655 ) 53.11 Outstanding as of April 3, 2009 18,294,562 47.15 5.53 23 Granted 2,891,730 42.65 Exercised (2,448,783 ) 41.45 Canceled/Forfeited (349,836 ) 49.11 Expired (1,379,276 ) 57.04 Outstanding as of April 2, 2010 17,008,397 46.36 5.58 141 Vested and expected to vest in the future as of April 2, 2010 16,772,533 46.40 5.54 138 Exercisable as of April 2, 2010 11,719,717 46.40 4.25 98 April 2, 2010 Options Outstanding Options Exercisable Range ofOption Exercise Price Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Number Exercisable Weighted Average Exercise Price $ 8.29 - $42.12 6,001,831 $ 38.27 5.48 3,371,171 $ 35.56 $ 42.21 - $48.61 5,585,191 46.37 5.20 3,972,071 45.68 $ 48.69 - $55.35 5,044,335 54.98 6.27 4,044,967 55.03 $ 56.06 - $78.94 377,040 59.80 3.74 331,508 59.96 17,008,397 11,719,717 The total intrinsic value of options exercised during fiscal 2010, fiscal 2009, and fiscal 2008 was $30 million, $4 million, and $35 million, respectively.The total intrinsic value of stock options is based on the difference between the fair market value of the Companys common stock less the applicable exercise price.The total grant date fair value of stock options vested during fiscal 2010, fiscal 200

Other

Other (Income)/Expense
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Other Expense/(Income)	Note 13 Other (Income)/Expense For fiscal years 2010, 2009, and 2008, the components of Other (income)/expense were as follows: (Amounts in millions) April 2, 2010 April 3, 2009 March 28, 2008 Foreign currency losses/(gains) $ 4 $ 25 $ (31 ) Equity in earnings of unconsolidated affiliates (14 ) (15 ) (12 ) Other (gains)/losses (10 ) (2 ) (17 ) Total Other (Income)/Expense $ (20 ) $ 8 $ (60 )Foreign currency losses/(gains) are due to the impact of movement in foreign currency exchange rates on certain of the Companys foreign currency denominated assets and liabilities, the related hedges, and the cost of the Companys hedging program.The costs of the Companys hedging program for fiscal years 2010, 2009 and 2008 were $8 million, $15 million and $6 million, respectively.In addition, the Company realized gains of $10 million in fiscal 2010 from settled option contracts. Other (gains)/losses for fiscal 2010 primarily include a gain of $6 million related to the sale of the former corporate headquarters in El Segundo, California and a gain of $6 million associated with a previously sold business.For fiscal 2008, the gains were comprised primarily from the sale of a building in Austin, Texas of $11 million and from the sale of available-for-sale securities of $4 million. Equity in earnings of unconsolidated affiliates is primarily within the Companys NPS segment.

Segment and Geographic Informat

Segment and Geographic Information
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Segment Information	Note 14Segment and Geographic 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: 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. 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. 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: NPS MSS BSS Corporate Eliminations Total (Amounts in millions)

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Commitments and Contingencies	Note 15Commitments and Contingencies Commitments The Company has operating leases for the use of certain real estate and equipment. Substantially all operating leases are non-cancelable or cancelable only by the payment of penalties. All lease payments are based on the lapse of time but include, in some cases, payments for insurance, maintenance and property taxes. There are no purchase options on operating leases at favorable terms, but most real estate leases have one or more renewal options. Certain leases on real estate are subject to annual escalations for increases in utilities and property taxes. Lease rental expense amounted to $296 million, $313 million, and $321 million for the years ended April 2, 2010, April 3, 2009, and March 28, 2008, respectively. In addition, the Company also has $22 million of sublease income to be received through 2017. Minimum fixed rentals required for the next five years and thereafter under operating leases in effect at April 2, 2010, are as follows: Fiscal Year (Amounts in millions) Real Estate Equipment 2011 $ 237 $ 54 2012 191 34 2013 158 15 2014 122 5 2015 72 1 Thereafter 94 - $ 874 $ 109 The Company has signed long-term purchase agreements with certain software, hardware, telecommunication and other service providers to obtain favorable pricing and terms for services and products that are necessary for the operations of business activities. Under the terms of these agreements, the Company is contractually committed to purchase specified minimums over periods ranging from one to five years. If the Company does not meet the specified minimums, the Company would have an obligation to pay the service provider all or a portion of the shortfall. Minimum purchase commitments are $252 million in fiscal 2011, $133 million in fiscal 2012, and $3 million in fiscal 2013, with none thereafter. 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 April 2, 2010, the Company had$12million of accounts receivable, $7million of allowance for doubtful accounts, and $1million of other assets with customers involved in bankruptcy proceedings. In the normal course of business, th

Special Items

Special Items
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Special Items	Note 16Special Items There are no special items for fiscal years 2010 or 2009. Special items totaling $156 million were recorded during fiscal year 2008, and consisted of: (1) a $134 million restructuring charge (see discussion below), and (2) a $22 million charge related to the retirement of the Companys chairman and chief executive officer recorded during the first quarter of fiscal 2008. Restructuring In April 2006, the Company announced a restructuring plan to be carried out during fiscal 2007 and 2008.The objectives of the plan were to (1) streamline CSCs worldwide operations, and (2) leverage the increased use of lower cost global resources.Restructuring charges consist predominantly of severance and related employee payments resulting from terminations. During fiscal 2008, workforce reductions, including some voluntary terminations,were approximately 1,400 and termination-related charges were $111 million.Other costs, which were primarily related to vacant space, of $23 million were also recorded during fiscal 2008.The restructuring charge in fiscal 2008 was incurred in the Managed Services Sector and Business Solutions and Services. A majority of the planned headcount reductions took place in Europe.For fiscal 2008, European headcount decreased by approximately 900 and approximately 300 reductions were made in North America. The balance of the reductions occurred in Australia and Asia. Restructuring-related pre-tax cash payments of approximately $68 million were made in fiscal 2009, compared to restructuring-related pre-tax cash payments of approximately $180 million in fiscal 2008.Included in the restructuring charges are pension benefit augmentations that are due to certain employees in accordance with legal or contractual obligations, which will be paid out over several years as part of normal pension distributions. Such liabilities are included in the consolidated pension liability account. See the following table for a summary of fiscal 2010 and 2009 activity: Liability as of April 3, 2009 Less Payments Other(1) Liability as of April 2, 2010 Workforce reductions $ 2 $ (4 ) $ 2 $ - Other, principally leases 18 (4 ) - 14 Total $ 20 $ (8 ) $ 2 $ 14 Liability as of March 28, 2008 Less Payments Other(1) Liability as of April 3, 2009 Workforce reductions $ 61 $ (57 ) $ (2 ) $ 2 Other, principally leases 33 (11 ) (4 ) 18 Total $ 94 $ (68 ) $ (6 ) $ 20 (1) Primarily consist of foreign currency translation adjustments.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Apr. 02, 2010
Notes To Financial Statements [Abstract]
Quarterly Financial Information	Quarterly Financial Information (Unaudited) Fiscal 2010(3) (Amounts in millions, except per-share amount) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues $ 3,898 $ 4,041 $ 3,953 $ 4,236 Cost of services (excluding depreciation and amortization) 3,156 3,215 3,105 3,321 Income before taxes 185 260 291 302 Net Income 131 216 211 259 Earnings per common share(3) Basic $ 0.86 $ 1.42 $ 1.38 $ 1.69 Diluted $ 0.85 $ 1.40 $ 1.36 $ 1.66 Fiscal 2009(3) 1st Quarter 2nd Quarter(2) 3rd Quarter 4th Quarter(1)(2) Revenues $ 4,437 $ 4,239 $ 3,952 $ 4,112 Cost of services (excluding depreciation and amortization) 3,601 3,407 3,083 3,169 Income before taxes 173 185 260 331 Net Income 121 452 161 382 Earnings per common share(3) Basic $ 0.80 $ 2.98 $ 1.06 $ 2.52 Diluted $ 0.79 $ 2.95 $ 1.06 $ 2.51 Includes goodwill impairment of $19 million as discussed in Note 6. Includes tax benefits of $371 million in the 2nd quarter of fiscal 2009 associated with the IRS settlement and $169 million in the 4th quarter of fiscal 2009 primarily associated with state and foreign audit. Also included in the 4th quarter is a charge of $18 million for prior year's income tax-related amounts. Quarterly earnings per share (EPS) amounts may not total to the full year EPS. EPS is calculated based on weighted average shares outstanding for the period. Quarterly weighted average shares may not be equal for the fiscal year.

SCHEDULE II, VALUATION AND QUAL

SCHEDULE II, VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Apr. 02, 2010
Schedule To Financial Statements [Abstract]
SCHEDULE II, VALUATION AND QUALIFYING ACCOUNTS	COMPUTER SCIENCES CORPORATION AND SUBSIDIARIES SCHEDULE II, VALUATION AND QUALIFYING ACCOUNTS Twelve Months Ended April 2, 2010, April 3, 2009, and March 28, 2008 (Amounts in millions) Balance, beginning of period Charged to cost and expenses Other(1) Deductions Balance, end of period Twelve months ended April 2, 2010 $ 55 $ 23 $ 1 $ (32 ) $ 47 Allowance for doubtful receivables Twelve months ended April 3, 2009 43 33 (8 ) (13 ) 55 Allowance for doubtful receivables Twelve months ended March 28, 2008 58 3 2 (20 ) 43 Allowance for doubtful receivables (1) Includes balances from acquisitions, changes in balances due to foreign currency exchange rates and recovery of prior-year charges.

Document Information

Document Information
	12 Months Ended Apr. 02, 2010
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2010-04-02
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Apr. 02, 2010	May. 03, 2010	Oct. 02, 2009
Entity [Text Block]
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	No
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$7,719,508,961
Entity Common Stock, Shares Outstanding		154,240,124
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	FY