UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)



x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended ~~April~~March 131, ~~2016~~2017



o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No.: 1-4850



	COMPUTER SCIENCES CORPORATION
	(Exact name of Registrant as specified in its charter)

Nevada	95-2043126
(State of incorporation or organization)	(I.R.S. Employer Identification No.)
1775 Tysons Boulevard
Tysons, Virginia	22102
(Address of principal executive offices)	(zip code)
Registrant's telephone number, including area code: (703) 876-1000
Registrant's telephone number, including area code: (703) 245-9700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:	Name of each exchange on which registered
Common Stock, $1.00 par value per share	New York Stock Exchange
Preferred Stock Purchase Rights
Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. o Yes x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. o Yes x No

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ox

~~Large~~Indicate by check mark whether the registrant is a large accelerated filer, xan ~~Accelerated~~accelerated filer, oa ~~Non~~non-accelerated filer, oa ~~Smaller~~smaller reporting company, oor an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one).

Large Accelerated Filer x Accelerated Filer o

Non-accelerated Filer o (do not check if a smaller reporting company)

Smaller reporting company o Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

As of ~~October~~September 230, ~~2015~~2016, the aggregate market value of the Registrant's stock held by non-affiliates of the Registrant was approximately $87,~~609~~317,~~679~~368,~~934~~463.

~~There~~As ~~were~~of ~~138~~May 18,~~523~~ 2017,~~516~~ 1,000 shares of ~~the~~Computer ~~Registrant’s~~Sciences Corporation common stock, par value $0.01 per share, were outstanding asall of ~~May~~which 13are held by parent company, ~~2016.~~DXC Technology Company.

~~DOCUMENTS~~Computer ~~INCORPORATED~~Sciences BYCorporation ~~REFERENCE~~meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore filing portions of this Form 10-K with the reduced disclosure format specified in General Instruction I(2) of Form 10-K.

Portions of the Registrant’s definitive Proxy Statement for its 2016 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after April 1, 2016, are incorporated by reference into Part III hereof.

TABLE OF CONTENTS

Item		Page
	PART I
1.	Business	12
1A.	Risk Factors	75
1B.	Unresolved Staff Comments	1416
2.	Properties	1517
3.	Legal Proceedings	1618
4.	Mine Safety Disclosures	1618
	PART II
5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	1719
6.	Selected Financial Data	1921
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2022
7A.	Quantitative and Qualitative Disclosures about Market Risk	4946
8.	Financial Statements and Supplementary Data	5148
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	~~132~~119
9A.	Controls and Procedures	~~132~~119
9B.	Other Information	~~137~~122
	PART III
10.	Directors, Executive Officers and Corporate Governance	~~138~~122
11.	Executive Compensation	~~138~~122
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~139~~122
13.	Certain Relationships and Related Transactions, and Director Independence	~~139~~122
14.	Principal Accountant Fees and Services	~~139~~122
	PART IV
15.	Exhibits, Financial Statement Schedules	~~139~~123

~~PART~~EXPLANATORY INOTE

~~Item~~As previously disclosed, effective April 1, 2017, Computer Sciences Corporation (“CSC” or the “Company”) became a wholly owned subsidiary of DXC Technology Company (“DXC”), an independent public company formed in connection with the spin-off and combination with CSC of the enterprise services business of the Hewlett Packard Enterprise Company ("HPE"). ~~Business~~DXC common stock began regular-way trading under the symbol “DXC” on the New York Stock Exchange on April 3, 2017.

~~INTRODUCTION~~This ~~AND~~report ~~HISTORY~~is the Annual Report on Form 10-K for the fiscal year ended March 31, 2017 solely of CSC and not of DXC or the Enterprise Services business of HPE (this “Annual Report”). As a result, except as otherwise specifically noted herein, the consolidated financial statements, other financial information and the business information set forth herein only relates to CSC and its subsidiaries, as of and for the three years ended March 31, 2017, which periods predate the April 1, 2017 effective date of the previously disclosed merger transaction involving CSC. This Annual Report does not include the financial results of DXC or the Enterprise Services business of HPE ("HPES") for any periods. Accordingly, unless the context otherwise requires, references herein to “CSC,” the “Company,” “we,” “us” or “our” refer only to CSC and its pre-combination subsidiaries and not to DXC, HPES or their pre-combination subsidiaries.

~~General~~Beginning with the Quarterly Report on Form 10-Q for the quarter ending June 30, 2017, DXC will report on a consolidated basis, representing the combined operations of CSC and HPES and their respective subsidiaries. Because CSC is deemed the acquirer in this combination for accounting purposes under U.S. Generally Accepted Accounting Principles ("GAAP"), CSC is considered DXC's predecessor, and the historical financial statements of CSC prior to April 1, 2017 will be reflected in DXC's future quarterly annual reports as DXC's historical financial statements.

~~Computer~~CAUTIONARY ~~Sciences~~STATEMENT ~~Corporation~~REGARDING ~~(CSC, the Company, we, our, us), is a next~~FORWARD-~~generation~~LOOKING global provider of information technology (IT) services and solutions. CSC helps lead its clients through their digital transformations to meet new business demands and customer expectations in a market of escalating complexity, interconnectivity, mobility, and opportunity.STATEMENTS

OnAll ~~November~~statements ~~27,~~and ~~2015,~~assumptions ~~the~~contained ~~Company~~in ~~completed~~this ~~the~~Annual ~~previously~~Report ~~announced~~and ~~separation~~in ~~of CSRA Inc. (CSRA) (~~the ~~Separation)~~documents ~~and~~incorporated ~~accelerated~~by ~~its~~reference ~~transformation.~~that ~~CSC~~do isnot ~~creating~~directly anand ~~industry-leading~~exclusively ~~organization~~relate ~~focused on streamlined offerings~~ to ~~address~~historical ~~market~~facts ~~shifts~~constitute ~~and~~“forward-looking ~~client needs while leveraging its partnership ecosystem~~statements.” ~~CSRA's~~Forward-looking ~~assets~~statements ~~and~~often ~~business~~include ~~primarily~~words ~~consist~~such ~~of those that the Company previously reported~~ as ~~its~~“anticipates,” ~~North~~“believes,” ~~American~~“estimates,” ~~Public~~“expects,” ~~Sector~~“forecast,” ~~(NPS)~~“goal,” ~~segment.~~“intends,” ~~Under~~“objective,” ~~the terms of the Separation agreement~~“plans,” ~~on November 27~~“projects,” ~~2015~~“strategy,” ~~stockholders~~“target” ~~who~~and ~~held~~“will” ~~CSC~~and ~~common~~words ~~stock~~and atterms ~~the close~~ of ~~business~~similar onsubstance ~~November~~in ~~18,~~discussions ~~2015 (the Record Date), received a distribution~~ of ~~one~~future ~~CSRA~~operating ~~common~~or ~~share~~financial ~~for every one share of CSC common stock~~performance. AsThese astatements ~~result~~represent ofcurrent ~~the~~expectations ~~Separation~~and beliefs, ~~CSRA~~and isno ~~now~~assurance ancan ~~independent~~be ~~public~~given ~~company~~that ~~trading under~~ the ~~symbol~~results ~~"CSRA"~~described onin ~~the~~such ~~New~~statements ~~York~~will ~~Stock~~be ~~Exchange~~achieved.

~~On May~~Forward-looking 24statements include, ~~2016~~among ~~we announced~~other ~~that~~things, ~~our~~statements ~~Board~~with ofrespect ~~Directors unanimously approved entering into an agreement~~ to ~~merge~~our ~~CSC~~financial ~~with~~condition, ~~the~~results ~~Enterprise~~of ~~Services~~operations, ~~segment~~cash offlows, ~~Hewlett~~business ~~Packard~~strategies, ~~Enterprise~~operating ~~(HPE)~~efficiencies ~~other~~or ~~than~~synergies, ~~certain~~competitive ~~excluded~~position, ~~portions.~~growth ~~The~~opportunities, ~~merger~~plans isand ~~expected~~objectives toof bemanagement ~~completed~~and byother ~~the~~matters. ~~end~~Such ofstatements ~~March~~are ~~2017,~~ subject to ~~shareholder~~numerous ~~and~~assumptions, ~~regulatory~~risks, ~~reviews~~uncertainties and ~~approvals.~~other ~~Following~~factors ~~the~~that ~~transaction,~~could ~~CSC~~cause ~~and~~actual ~~HPE~~results ~~shareholders~~to ~~will~~differ ~~each~~materially ~~own~~from ~~approximately~~those 50described ~~percent~~in ofsuch ~~the~~statements, ~~new~~many ~~company’s~~of ~~shares.~~which ~~The~~are ~~transaction~~outside isof ~~intended~~our tocontrol. beImportant ~~tax-free~~factors tothat ~~CSC~~could ~~and~~cause ~~HPE~~actual ~~and~~results ~~their~~to ~~respective~~differ ~~shareholders~~materially ~~for~~from ~~federal~~those ~~income~~described ~~tax~~in ~~purposes.~~forward-looking Westatements ~~believe~~include, ~~the~~but ~~merger~~are ~~should~~ not ~~adversely~~limited ~~affect the tax treatment of the Separation.~~to:

~~CSC’s~~• ~~strategy~~the isintegration ~~to lead our clients on their digital journey~~ with aDXC’s ~~new~~other ~~generation of offerings by leveraging partners~~businesses, ~~industry~~operations IP and ~~domain~~culture ~~expertise~~and ~~across~~ the ~~globe.~~ability ~~We strive~~ to beoperate aas ~~trusted~~effectively ~~IT partner through providing next-generation IT services which include applications modernization, cloud infrastructure, cyber security, big data~~ and ~~mobility.~~efficiently ~~Current~~as and prospective clients are changing how they buy and consume IT services. Clients are looking for greater operational agility from their IT services and they are looking to benefit from the insights provided by mobilityexpected, ~~social media,~~ and ~~big data analytics. At~~ the ~~same~~combined ~~time,~~company's ~~they~~ability ~~continue~~ to ~~seek~~successfully ~~significant~~manage ~~cost~~and ~~reductions~~integrate byacquisitions ~~migrating from traditional IT infrastructure to the cloud.~~generally;

~~This~~• ~~change~~the inability ~~client~~to ~~preferences~~realize isthe ~~creating~~synergies ~~a market opportunity for CSC. The Company is responding by assembling key assets~~ and ~~forming~~benefits ~~strategic~~expected ~~partnerships~~to ~~with~~result ~~technology~~from ~~leaders.~~the ~~CSC~~Merger ~~has~~(defined ~~built~~herein) awithin ~~highly~~the ~~secure,~~anticipated ~~flexible,~~time ~~private~~frame ~~cloud~~or ~~infrastructure~~in ~~offering~~the ~~BizCloud~~anticipated ~~for our clients.~~ amounts;

~~CSC~~• ~~has~~other ~~developed~~risks ~~global~~related ~~alliances~~ to ~~enhance cloud infrastructure, specialized consulting and applications expertise with AT&T’s highly secure network and cloud infrastructure platform to help global businesses move more quickly to~~ the ~~cloud.~~Merger Through this alliance, CSC can assist in reducing capital intensity and create the global scale necessary to run modernized application workloads. CSC acquired one of the leading providers of enterprise cloud management software, ServiceMesh, to facilitate the orchestration of enterprise applications across multi-vendor hybrid clouds including ~~Amazon~~anticipated ~~Web~~tax ~~Services~~treatment, ~~VMware~~unforeseen ~~and~~liabilities ~~Microsoft. Additionally, ServiceMesh provides our clients with advanced capabilities such as tiered service levels, different levels of security, self-service options, governance, policy~~ and ~~real-time~~future ~~monitoring.~~capital ~~CSC is also creating a Cloud Center of Excellence using services from Amazon, to accelerate the development of cloud solutions for enterprise and public sector customers.~~ expenditures;

~~CSC’s~~• ~~strategic~~changes ~~partnership~~in ~~with~~governmental ~~HCL~~regulations ~~Technologies~~or ~~(HCL)~~the ~~aims~~adoption ~~to create a world-class application modernization delivery network. The Company expects to offer our commercial customers a global footprint~~ of ~~delivery~~new ~~capabilities~~laws ~~for~~or ~~modernizing~~regulations ~~their~~that ~~legacy~~may ~~applications~~make ~~and~~it ~~moving~~more ~~them~~difficult toor ~~the~~expensive ~~cloud. HCL and CSC will also jointly create a Banking Center of Excellence~~ to ~~accelerate~~operate ~~and expand~~ our ~~core banking and card services solutions by leveraging our global banking expertise which includes CSC’s Hogan and Celeriti offerings.~~ business;


•	changes in senior management, the loss of key employees or the ability to retain and hire key personnel and maintain relationships with key business partners;


•	business interruptions in connection with our technology systems;


•	the competitive pressures faced by our business;


•	the effects of macroeconomic and geopolitical trends and events;


•	the need to manage third-party suppliers and the effective distribution and delivery of our products and services;


•	the protection of our intellectual property assets, including intellectual property licensed from third parties;


•	the risks associated with international operations;

~~The~~• ~~Company's~~the ~~mission~~development isand totransition ~~enable~~of ~~superior~~new ~~returns~~products onand ~~our~~services ~~clients' technology investments through best-in-class vertical industry solutions, domain expertise, strategic partnerships with key technology leaders~~ and ~~global~~the ~~scale.~~enhancement ~~CSC~~of ~~generally~~existing ~~does~~products ~~not operate through exclusive agreements with hardware or software providers~~ and ~~believes~~services ~~this independence enables the Company~~ to ~~better~~meet ~~identify~~customer needs and ~~manage~~respond ~~solutions specifically tailored~~ to ~~each~~emerging ~~client’s~~technological ~~needs.~~trends;

~~CSC's~~• ~~service~~the ~~contracts~~execution ~~vary in duration, scope, terms~~ and ~~conditions.~~performance ~~CSC's~~of contracts ~~typically contain provisions~~ by ~~which~~us ~~customers may terminate the contract prior to completion, though such instances are infrequent due to the differentiated services provided, complex transition of personnel, assets, methodologies~~ and ~~processes~~our ~~involved. If a contract is terminated early for convenience~~suppliers, ~~the Company seeks to recover tangible assets~~customers, ~~investments~~clients and other intangible assets through stated contract terms or negotiation. If a contract is terminated early due to CSC's default, the Company may have additional liability and its ability to compete for future business with that customer could also be adversely impacted. See Risk Factor number 16 under Item 1A "Risk Factors" in this Annual Report for further discussion.partners;

~~CSC~~• ~~was founded in 1959 and incorporated in~~ the ~~state~~resolution of ~~Nevada~~pending ~~and~~investigations, isclaims ~~listed~~and ondisputes; ~~the New York Stock Exchange under the symbol “CSC.”~~and

~~Services~~• ~~and~~the ~~Sectors~~other factors described under “Risk Factors.”

~~The~~No ~~Company's~~assurance ~~reportable~~can ~~segments~~be ~~are~~given ~~Global~~that ~~Business~~any ~~Services~~goal ~~(GBS)~~or ~~and~~plan ~~Global~~set ~~Infrastructure~~forth ~~Services~~in ~~(GIS).~~any ~~Geographically,~~forward-looking ~~CSC~~statement ~~has~~can ~~significant~~or ~~operations~~will ~~throughout~~be ~~North America~~achieved, ~~Europe,~~and ~~Asia~~readers ~~and~~are ~~Australia.~~cautioned ~~Segment~~not ~~and~~to ~~geographic~~place ~~information~~undue isreliance ~~included~~on insuch ~~Note~~statements 19which speak only as of the ~~Notes~~date tothey ~~the~~are ~~Consolidated~~made. ~~Financial~~We ~~Statements,~~do innot ~~Part~~undertake ~~II,~~any ~~Item~~obligation 8to ofupdate ~~this~~or ~~Annual~~release ~~Report.~~any ~~For~~revisions ato ~~discussion~~any offorward-looking ~~risks~~statement ~~associated~~or ~~with~~to ~~our~~report ~~foreign~~any ~~operations,~~events ~~see~~or ~~Risk~~circumstances ~~Factor~~after ~~number~~the 11date ~~under~~of ~~Item~~this 1AAnnual ~~"Risk~~Report ~~Factors~~or to reflect the occurrence of unanticipated events," inexcept ~~this~~as ~~Annual~~required ~~Report~~by law.

~~GBS~~PART I

~~GBS~~ITEM ~~provides innovative technology solutions including consulting, applications services, and software, which address key business challenges within the customer’s industry~~1. ~~GBS~~BUSINESS strives to help clients understand and exploit industry trends of IT modernization and virtualization of the IT portfolio (hardware, software, networking, storage and computing assets). GBS has four primary growth areas: end-to-end applications services, consulting services, big data services, and industry aligned next-generation software and solutions. Applications services optimize and modernize clients' business and technical environments, enabling clients to capitalize on emerging services such as cloud, mobility, and big data within new commercial models such as the "as a Service" and digital economies. The consulting services business helps organizations innovate, transform, and create sustainable competitive advantage through a combination of industry, business process, technology, systems integration and change management expertise. The industry aligned next-generation software and solutions growth is focused in the insurance, banking, healthcare and life sciences, manufacturing and other diversified industries. Activities are primarily related to vertical alignment of software solutions and process-based intellectual property that power mission-critical transaction engines. Key competitive differentiators for GBS include its global scale, solution objectivity, depth of industry expertise, strong partnerships, vendor and product independence and end-to-end solutions and capabilities. Changing business issues such as globalization, fast-developing economies, government regulation, and growing concerns around risk, security, and compliance drive demand for these GBS offerings.

~~GIS~~Computer Sciences Corporation is a next-generation global provider of information technology services and solutions. We help lead our clients through their digital transformations to meet new business demands and customer expectations in a market of escalating complexity, interconnectivity, mobility and opportunity. CSC was founded in 1959, incorporated in the state of Nevada and was listed on the New York Stock Exchange under the symbol “CSC” prior to the Merger (as defined below).

~~GIS~~CSC’s ~~provides~~mission ~~managed~~is ~~and~~to ~~virtual~~enable ~~desktop~~superior ~~solutions,~~returns ~~unified~~on ~~communications~~our ~~and collaboration services, data center management, cyber security, compute and managed storage solutions to commercial~~ clients' ~~globally.~~technology ~~GIS~~investments ~~also~~through ~~delivers CSC's next~~best-~~generation~~in-class ~~cloud~~vertical ~~offerings,~~industry ~~including Infrastructure as a Service (IaaS)~~solutions, ~~private~~domain ~~cloud solutions~~expertise, ~~CloudMail~~strategic ~~and~~partnerships ~~Storage~~with askey atechnology ~~Service.~~leaders ~~GIS provides a portfolio of standard offerings that have predictable outcomes~~ and ~~measurable~~global ~~results~~scale. ~~while~~We ~~reducing~~generally ~~business~~do ~~risk~~not ~~and~~operate ~~operational~~through ~~costs~~exclusive ~~for~~agreements ~~clients. To provide clients~~ with ~~differentiated~~hardware ~~offerings,~~or ~~GIS~~software ~~maintains~~providers ~~a select number of key alliance partners to make investments in developing unique offerings~~ and ~~go-to-market~~believe ~~strategies.~~this ~~This~~independence ~~collaboration~~enables ~~helps~~us ~~CSC determine the best technology, road map and opportunities~~ to ~~differentiate~~better ~~solutions,~~identify ~~expand market reach, augment capabilities,~~ and ~~jointly~~manage ~~deliver impactful~~ solutions. ~~GIS~~specifically ~~seeks~~tailored to ~~capitalize~~each onclient’s ~~the emerging market trend with a rebundled IT portfolio of virtualized infrastructure~~needs.

2Current and prospective clients are changing how they purchase and consume IT services. Clients today are seeking greater operational agility from their IT services and want to benefit from the insights provided by mobility, social media and big data analytics. As they do so, they continue to seek cost efficiencies by migrating from traditional IT infrastructure to the cloud. We strive to be a trusted IT partner to our clients by addressing these requirements and providing next-generation IT services that include applications modernization, cloud infrastructure, cyber security and big data solutions.

~~During~~Merger ~~the~~with ~~last three fiscal years, the Company’s revenue mix by line of business was as follows:~~ HPES

	2016		2015		2014
Global Business Services	51	%	50	%	49	%
Global Infrastructure Services	49		50		51
Total Revenue	100	%	100	%	100	%

DXC was formed by the spin-off of the Enterprise Services business of Hewlett Packard Enterprise Company on March 31, 2017 and merger of CSC with a wholly owned subsidiary of DXC on April 1, 2017 (the "Merger"). As a result of the Merger, CSC became a wholly owned subsidiary of DXC. DXC common stock began regular-way trading under the symbol “DXC” on the New York Stock Exchange on April 3, 2017.

~~Fiscal~~The ~~2016~~strategic ~~Overview~~combination of the two complementary businesses created a leading independent, end-to-end IT services company, which is expected to have annual revenues of approximately $25 billion and nearly 6,000 public and private sector enterprise clients across 70 countries. DXC will focus on leading clients on their digital transformation journeys and helping clients thrive on significant business and market changes.

Total revenue of $7.1 billion decreased by 12.5% year over year, reflecting certain trends in its commercial infrastructure outsourcing business, the repositioning of its consulting business, and the impact of restructured contracts and price-downs.

Overall market demand for IT services was in transition in fiscal 2016 as organizations sought to use technology to improve enterprise efficiency, agility and productivity. In response to this transition, the Company expanded its sales force and invested in sales tools, next-generation offerings, internal systems and workforce optimization. During fiscal 2016, GBS contract awards were $4.3 billion as compared to $4.7 billion in the prior fiscal year. GIS contract awards were $4.3 billion in fiscal 2016 as compared to $4.1 billion in the prior fiscal year. Due to the general industry decline in the number and total value of large contract awards valued at more than $100 million, the Company is targeting smaller contract awards of $100 million or less.

Acquisitions and Divestitures

~~Acquisitions~~During the fiscal year ended March 31, 2017 ("fiscal 2017"), we completed the acquisition of Xchanging plc ("Xchanging"), a provider of technology-enabled business solutions to organizations in global insurance and financial services, healthcare, manufacturing, real estate and the public sector, for total cash consideration of $492 million, net of cash acquired. The acquisition expanded our market coverage in the global insurance industry.

During the fourth quarter of fiscal 2016, CSC acquired UXC Limited (UXC), an Australian publicly owned IT services company who is a leading provider of enterprise application capabilities, for total purchase consideration of $289 million (net of cash acquired of $13 million). The acquisition further advances CSC’s process of rebalancing its offering portfolio, strengthens CSC’s next-generation delivery model, and expands its client base among mid-sized enterprises. UXC has components in both the Company's GBS and GIS segments. 2

~~During~~Segments ~~the third quarter of fiscal 2016, CSC acquired Axon Puerto Rico, Inc. (Axon), an ITAR-compliant provider of enterprise application~~ and ~~infrastructure managed services to aerospace and defense, and other commercial industries. Axon is a component of the Company's GBS segment.~~Services

~~During~~Our ~~the~~reportable ~~second~~segments ~~quarter~~are ofGlobal ~~fiscal~~Business ~~2016,~~Services ~~CSC~~("GBS") ~~acquired~~and ~~Fixnetix,~~Global ~~Limited~~Infrastructure Services (~~Fixnetix~~"GIS"). Geographically, awe ~~privately~~have ~~held~~significant ~~provider~~operations ofthroughout ~~front-office~~North ~~managed~~America, ~~trading solutions for capital markets~~Europe, ~~for~~Asia ~~total~~and ~~estimated~~Australia. ~~purchase~~Segment ~~consideration~~and ofgeographic ~~$112~~information ~~million~~is ~~(net~~included ofin $1Note ~~million~~18 of- ~~cash~~"Segment ~~acquired).~~and ~~This~~Geographic ~~acquisition~~Information" ~~enhances CSC's ability~~ to ~~offer~~the ~~capital~~consolidated ~~market~~financial ~~clients~~statements. anFor ~~expanded~~a ~~range~~discussion of ~~as-a-service~~risks ~~front~~associated ~~office~~with ~~capabilities~~our ~~and~~foreign ~~address growing demand for greater efficiency and innovation in trading~~operations, ~~market~~see ~~data,~~Part ~~hosting~~I, ~~infrastructure,~~Item ~~connectivity~~1A ~~and~~"Risk ~~risk~~Factors" ~~management. Fixnetix is a component~~ of ~~the~~this ~~Company's~~Annual ~~GIS segment~~Report.

~~During~~Global ~~the~~Business second quarter of fiscal 2016, CSC also acquired Fruition Partners (Fruition), a privately-held company that is a leading provider of technology-enabled solutions for the service management sector and the largest exclusively ServiceNow-focused service management consulting firm, for cash consideration of $148 million (net of cash acquired of $2 million). The acquisition bolsters CSC's ability to offer enterprise and emerging clients an expanded range of cloud-based service-management solutions to improve their business through organizational efficiency and lower operating costs, and is a component of the Company's GBS segment.Services

~~Subsequent~~GBS toprovides ~~fiscal~~innovative ~~2016~~technology solutions including digital applications and applications services and software, ~~the~~which ~~Company~~address ~~completed~~key business challenges within the ~~previously~~customer’s ~~announced~~industry. ~~acquisition~~GBS strives to help clients understand and take advantage of ~~Xchanging~~industry ~~plc~~trends ~~(Xchanging)~~of ~~for~~IT ~~total~~modernization ~~consideration~~and virtualization of ~~approximately~~the ~~$633~~IT ~~million~~portfolio (hardware, software, networking, storage and computing assets). ~~Xchanging~~GBS ~~provides~~has ~~technology~~three primary focus areas: industry aligned next-~~enabled~~generation software and solutions ("IS&S"); digital applications, our consulting and applications business, and big data services. Industry aligned next-generation software and solutions is centered on the insurance, banking, healthcare and life sciences industries, as well as manufacturing and other diversified industries. Activities are primarily related to ~~organizations~~vertical alignment of software solutions and process-based intellectual property that power mission-critical transaction engines, in ~~global~~addition ~~insurance~~to the provision of tailored business processing services. The digital applications business helps organizations innovate, transform and ~~financial~~create sustainable competitive advantage through a combination of industry, business process, technology, systems integration and change management expertise, while optimizing and modernizing clients' business and technical environments, enabling clients to capitalize on emerging services such as cloud and mobility as well as big data within new commercial models including "as a Service." Key competitive differentiators for GBS include its global scale, ~~healthcare~~solution objectivity, ~~real~~depth ~~estate~~of industry expertise, strong partnerships, vendor and product independence and end-to-end solutions and capabilities. Changing business issues such as globalization, fast-developing economies, government regulation and growing concerns around risk, security and compliance drive demand for these GBS offerings. Contract awards are estimated at the ~~public~~time ~~sector~~of contract signing based on then existing projections of service volumes and currency exchange rates and include approved option years. During fiscal 2017, GBS had contract awards of $4.9 billion compared to $4.3 billion in the fiscal year ended April 1, 2016 ("fiscal 2016").

~~During~~Global ~~fiscal~~Infrastructure 2015, CSC acquired Autonomic Resources, LLC (Autonomic), and a privately held entity. Autonomic and the privately held entity were components of the Company's former NPS segment which was separated from CSC during the third quarter of fiscal 2016. Services

GIS provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, computed and managed storage solutions to commercial clients globally. GIS also delivers CSC's next-generation cloud offerings, including Infrastructure as a Service ("IaaS"), private cloud solutions and Storage as a Service. GIS provides a portfolio of standard offerings that have predictable outcomes and measurable results while reducing business risk and operational costs for clients. To provide clients with differentiated offerings, GIS maintains a select number of key alliance partners to make investments in developing unique offerings and go-to-market strategies. This collaboration helps us determine the best technology, develop road maps and enhance opportunities to differentiate solutions, expand market reach, augment capabilities and jointly deliver impactful solutions. During fiscal 2017, GIS had contract awards of $3.7 billion compared to $4.3 billion during fiscal 2016.

Our revenues mix by line of business was as follows:



	Fiscal Years Ended
	March 31, 2017		April 1, 2016		April 3, 2015
Global Business Services	55	%	51	%	50	%
Global Infrastructure Services	45		49		50
Total Revenues	100	%	100	%	100	%

Trademarks and Service Marks

We own or have rights to various trademarks, logos, service marks and trade names that are used in the operation of our business. We also own or have the rights to copyrights that protect the content of our products. Solely for convenience, the trademarks, service marks, trade names and copyrights referred to in this Annual Report are listed without the ™, ®

~~During~~and ~~fiscal~~© ~~2014~~symbols, ~~CSC~~but ~~acquired~~such ~~ServiceMesh~~omission ~~Inc.,~~does anot ~~privately-held~~waive ~~enterprise~~any ~~cloud~~rights ~~services~~that ~~management~~might ~~company~~be associated with ~~operations in~~ the ~~United~~respective ~~States~~trademarks, ~~Australia~~service ~~and the United Kingdom~~marks, ~~for~~trade ~~total~~names ~~purchase~~and ~~consideration~~copyrights ofincluded ~~$282~~or ~~million.~~referred ~~The acquisition enhances CSC's ability~~ to assist its clients in migrating their applications into cloud computing environments and to automate the deployment and management of enterprise applications and platforms across private, public and hybrid cloud environmentsherein. ~~ServiceMesh is a component of the Company's GIS segment.~~

Additionally, during fiscal 2014, CSC acquired Infochimps, Inc. complementing CSC’s existing Big Data business by providing a flexible, scalable, platform-as-a-service offering.

Divestitures

During the third quarter of fiscal 2016, CSC completed the Separation of CSRA. Under the terms of the Separation agreements, on November 27, 2015, stockholders who held CSC common stock at the Record Date received a distribution of one CSRA common share for every one share of CSC common stock. As a result of the Separation, CSRA is now an independent public company trading under the symbol "CSRA" on the New York Stock Exchange. The historical results of CSRA have been adjusted to present as discontinued operations consistent with fiscal year 2016 presentation in the Company's Consolidated Statements of Operations.

Additionally, during fiscal 2016, 2015 and 2014, the Company divested certain non-core businesses as a part of its service portfolio optimization initiative to focus on next-generation technology services. Certain of the divestitures met the criteria for presentation as discontinued operations, and consequently, their historical results have been presented as discontinued operations in the Company's Consolidated Statements of Operations.

During the first quarter of fiscal 2016, CSC divested its wholly-owned subsidiary, Welkin Associates Limited (Welkin) to a strategic investor. The Welkin business was part of the NPS segment. At the time of disposition, the divestiture did not qualify to be presented as discontinued operations. Subsequent to the disposition of Welkin, CSC completed the Separation, which included the operating results of the Welkin business as discontinued operations.

During the second quarter of fiscal 2015, CSC completed the sale of a German software business to a strategic investor. The historical results of this business have been presented as discontinued operations in the Company's Consolidated Statements of Operations.

During the second quarter of fiscal 2014, CSC completed the sale of its base operations, aviation and ranges services business unit, Applied Technology Division (ATD) within its NPS Segment, to a strategic investor for cash consideration of $178 million plus a net working capital adjustment receivable of $6 million. The pre-tax gain on disposal was $77 million, representing the excess of the sale price over the carrying value of the net assets of the divested business, less transaction costs, and is presented as discontinued operations in the Company's Consolidated Statements of Operations.

Additionally, during the first quarter of fiscal 2014, CSC completed the divestiture of its flood insurance-related business process outsourcing practice, within CSC's GBS segment, to a financial investor for cash consideration of $43 million plus a net working capital adjustment receivable of $4 million. The pre-tax gain on disposal was $25 million, representing the excess of the net proceeds over the carrying value of the net assets of the divested business and the related transaction costs, and is presented as discontinued operations in the Company's Consolidated Statements of Operations.

For further discussion of these acquisitions and divestitures, see Notes 3 and 4 of the Notes to the Company's Consolidated Financial Statements.

Competition

The IT and professional services markets in which ~~CSC~~we ~~competes~~compete are not dominated by a single company or a small number of companies. A substantial number of companies offer services that overlap and are competitive with those ~~offered~~we ~~by CSC~~offer. In addition, the increased importance of offshore labor centers has brought aseveral ~~number of~~ foreign-based firms into competition with ~~CSC~~us. Offshore IT outsourcers selling directly to end-users have captured an increasing share of the market as they compete directly with U.S. domestic suppliers of these services. ~~The~~We ~~Company~~continue ~~continues~~ to increase resources in offshore locations to mitigate this market development.

4More recently, the accelerating demand for multi-tenant infrastructure services, commonly referred to as cloud computing offerings, is continuing to alter the landscape of competition. New entrants to our markets are offering service models that change the decision criteria and contracting expectations of our target customers. Major competitors in this area include large and well-funded technology companies that are increasingly using social, mobile, analytics and cloud technologies to create agile new business models. Smaller and more nimble companies also continue to enter and disrupt markets with innovations in cloud computing and other areas which could emerge as significant competitors to us.

~~More~~We ~~recently,~~have ~~the~~responded ~~accelerating~~to ~~demand~~these ~~for~~changing ~~multi-tenant~~market ~~infrastructure~~conditions ~~services,~~with ~~commonly~~new ~~referred~~capabilities, topartnerships asand ~~cloud computing~~ offerings, isthat ~~continuing~~are intended to ~~alter~~position ~~the~~us ~~landscape~~favorably ofin ~~competition.~~high-growth ~~New entrants to our~~ markets ~~are~~for ~~offering~~next-generation ~~service~~IT ~~models~~services ~~that change the decision criteria~~ and ~~contracting expectations of our target customers~~solutions. ~~Amazon~~For ~~Web Services, for~~ example, ~~has~~our ~~emerged~~acquisition asof aUXC ~~strong~~in ~~competitor~~fiscal in2016 ~~cloud~~strengthened ~~computing,~~our ~~and~~next-generation ~~other~~delivery ~~major~~model. ~~competitors~~We inalso ~~this~~expanded ~~area~~our ~~include~~range ~~large~~of ~~and~~cloud-based ~~well~~service-~~funded~~management ~~technology~~solutions ~~companies~~through ~~that~~our ~~are~~acquisition ~~increasingly~~of ~~using~~Fruition ~~social,~~and ~~mobile~~Aspediens, ~~analytics~~ and ~~cloud~~strategic ~~technologies~~investments toin ~~create~~Virtual ~~agile~~Clarity ~~new~~and ~~business models~~eBecs. ~~Smaller~~Our ~~and~~strategic ~~more~~partnerships ~~nimble~~with ~~companies~~AT&T ~~also continue to enter~~ and ~~disrupt~~HCL ~~markets~~Technologies ~~with~~similarly ~~innovations~~enable inexpanded cloud, ~~computing~~applications modernization and other ~~areas~~next-generation ~~which~~technology ~~could emerge as significant competitors to CSC~~services.

~~The~~Our ~~Company~~ability ~~has responded~~ to ~~these~~obtain ~~changing market conditions with~~ new ~~capabilities,~~business ~~partnerships~~ and ~~offerings~~retain ~~that~~existing ~~are~~business ~~intended~~is todependent ~~position~~upon ~~CSC~~our ~~favorably~~ability into ~~high-growth~~offer ~~markets~~improved ~~for~~strategic ~~next-generation~~frameworks ~~IT services~~ and technical solutions., ~~For~~better ~~example~~value, ~~CSC's~~quicker ~~acquisition~~responses, ofincreased ~~UXC~~flexibility, ~~strengthened~~superior ~~the~~quality, ~~Company's~~a ~~next-generation~~higher ~~delivery~~level ~~model~~of experience, ~~and~~or ~~CSC's~~a ~~acquisition~~combination of ~~ServiceMesh~~these ~~allowed~~factors. ~~the~~Management ~~Company~~believes tothat ~~deliver~~our ~~new~~lines ~~offerings~~of ~~with~~business ~~partners~~are ~~like~~positioned ~~VMware~~to ~~and~~compete ~~Microsoft~~effectively ~~and~~in tothe ~~integrate~~GBS ~~with~~and ~~other~~GIS ~~cloud~~markets ~~computing~~based ~~providers.~~on ~~CSC~~our ~~also~~technology ~~expanded~~and ~~its~~systems ~~range~~expertise ofand ~~cloud-based~~large ~~service-~~project management ~~solutions~~skills. ~~through~~Management ~~the~~believes ~~Company's~~that ~~acquisition~~our ofcompetitive ~~Fruition.~~position ~~The~~is ~~addition~~enhanced ofby ~~big~~the ~~data~~full ~~service~~spectrum ~~provider~~of ~~Infochimps,~~IT ~~Inc.~~and ~~allowed~~professional ~~for~~services ~~advanced~~we ~~analytics~~provide ~~delivered~~including asconsulting, asoftware ~~service~~and tosystems ~~customers.~~design, ~~The~~implementation ~~Company’s~~and ~~strategic~~integration, ~~partnerships~~IT ~~with AT&T~~ and ~~HCL~~business ~~Technologies~~process ~~similarly~~outsourcing ~~enable~~and ~~expanded~~technical ~~cloud,~~services ~~applications~~delivered ~~modernization~~to ~~and~~a ~~other~~broad ~~next-generation~~commercial ~~technology~~customer ~~services~~base.

CSC’s ability to obtain new business and retain existing business is dependent upon its ability to offer improved strategic concepts and technical solutions, better value, a quicker response, increased flexibility, superior quality, a higher level of experience, or a combination of these factors. In the opinion of the Company’s management, CSC’s lines of business are positioned to compete effectively in the GBS and GIS markets based on its technology and systems expertise and large project management skills. CSC management believes that its competitive position is enhanced by the full spectrum of IT and professional services it provides, including consulting, software and systems design, implementation and integration, IT and business process outsourcing, and technical services delivered to a broad commercial customer base.

Employees

~~The~~We ~~Company~~have ~~has~~ offices worldwide, and as of ~~April~~March 131, ~~2016~~2017, had approximately 5960,000 employees in more than 6050 countries. ~~As a result of the Xchanging acquisition in May 2016 we added an additional 7,000 employees.~~ The services ~~provided~~we byprovide ~~CSC~~ require proficiency in many fields, comprising but not limited to computer sciences, programming, telecommunications networks, mathematics, physics, engineering, ~~astronomy, geology,~~ operations, research, finance, economics, statistics and business administration.

~~U.S.~~Available ~~Securities and Exchange Commission Reports~~Information

~~All~~Following of the ~~Company~~Merger, CSC is a wholly owned subsidiary of DXC. DXC’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and ~~all~~ amendments to ~~those~~ reports, ~~and other materials required to be~~ filed ~~with~~ or furnished to the U.S. Securities and Exchange Commission ~~(SEC)~~, are available free of charge ~~through~~on ~~the Company’~~DXC's ~~Internet~~ website, www.~~csc~~dxc.~~com,~~technology oras through the CSC Investor Relations Office at 1-703-245-9700. The content on any website referred to in this Annual Report on Form 10-K is not incorporated by reference into this report, unless expressly noted otherwise. As soon as reasonably ~~practical~~practicable after the ~~Company~~reports ~~has~~and amendments are electronically filed ~~such material~~ with or furnished it to the SEC,. ~~these~~DXC’s ~~items~~corporate ~~can~~governance beguidelines, ~~read~~Board ~~and~~of ~~copied~~Directors' atcommittee ~~the~~charters ~~SEC’s~~(including ~~Public~~the ~~Reference~~charters ~~Room~~of atthe ~~100~~Audit ~~F Street~~Committee, ~~NE,~~Compensation ~~Washington,~~Committee DCand ~~20549.~~Nominating/Corporate ~~Periodic~~Governance ~~reports,~~Committee) ~~proxy~~and ~~statements,~~code ~~information~~of ~~statements,~~ethics ~~and~~entitled ~~other~~"Code ~~information~~of ~~filed~~Business ~~with~~Conduct" orare ~~furnished~~also byavailable ~~the~~on ~~Company~~DXC's towebsite. ~~the~~CSC’s SEC filings are also available on ~~the SEC~~DXC’s website~~, www~~.~~sec.gov,~~ The orinformation on DXC's website is not incorporated by ~~calling~~reference ~~the~~into ~~SEC~~and atis ~~1-800-SEC-0330~~not ~~(1-800-732-0330).~~a part of this report.

~~Forward-looking and Cautionary Statements~~4

~~All~~Item statements and assumptions contained in this Annual Report and in the documents attached or incorporated by reference that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended1A. ~~These~~RISK ~~statements represent current expectations and beliefs of CSC, and no assurance can be given that the results described in such statements will be achieved.~~ FACTORS

Any of the following risks could materially and adversely affect our business, financial condition and results of operations and the actual outcome of matters as to which forward-looking statements are made in this Annual Report. Additional risks and uncertainties not currently known or that are currently expected to be immaterial may also materially and adversely affect our business, financial condition, results of operations or the price of our common stock in the future. Past performance may not be a reliable indicator of future financial performance, and historical trends should not be used to anticipate results or trends in future periods. Unless the context otherwise requires, as used in this section "Risk Factors," "we," "our" and "us" refers to CSC and the combined company for periods following the consummation of the Merger.

Risks Relating to Our Business

Achieving our growth objectives may prove unsuccessful. We may be unable to identify future attractive acquisitions and strategic partnerships, which may adversely affect our growth. In addition, if we are unable to consummate acquisition or other agreements we enter into or fail to achieve anticipated revenue improvements and cost reductions, our profitability may be materially and adversely affected.

We may fail to complete strategic transactions. Closing strategic transactions is subject to uncertainties and risks, including the risk that we will be unable to satisfy conditions to closing such as regulatory and financing conditions and the absence of material adverse changes to our business. In addition, our inability to successfully integrate the operations we acquire and leverage these operations to generate substantial cost savings could have a material adverse effect on our results of operations, cash flows and financial position. In order to achieve successful acquisitions, we will need to:


•	successfully integrate the operations, as well as the accounting, financial controls, management information, technology, human resources and other administrative systems, of acquired businesses with existing operations and systems;


•	maintain third-party relationships previously established by acquired companies;


•	attract and retain senior management and other key personnel at acquired businesses; and


•	successfully manage new business lines, as well as acquisition-related workload.

We may not be successful in meeting these challenges or any others encountered in connection with historical and future acquisitions. In addition, the anticipated benefits of one or more acquisitions may not be realized and future acquisitions could require dilutive issuances of equity securities and/or the assumption of contingent liabilities. The occurrence of any of these events could adversely affect our business, financial condition and results of operations.

We have also entered into and intend to identify and enter into additional strategic partnerships with other industry participants that will allow us to expand our business. However, we may be unable to identify attractive strategic partnership candidates or complete these partnerships on terms favorable to us. In addition, if we are unable to successfully implement our partnership strategies or our strategic partners do not fulfill their obligations or otherwise prove disadvantageous to our business, our investments in these partnerships and our anticipated business expansion could be adversely affected.

Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends may impact our future growth. If we are not successful in meeting these business challenges, our results of operations and cash flows may be materially and adversely affected.

Our ability to implement solutions for our customers, to incorporate new developments and improvements in technology that translate into productivity improvements for our customers and to develop service offerings that meet current and prospective customers' needs are critical to our success. The markets we serve are highly competitive. Our competitors may develop solutions or services that make our offerings obsolete. Our ability to develop and implement up to date solutions utilizing new technologies that meet evolving customer needs in cloud, consulting, industry software and solutions and application services markets will impact our future revenues growth and earnings.

~~Forward-looking~~Our ~~information~~ability ~~contained~~to compete in ~~these~~certain ~~statements~~markets ~~include,~~we ~~among~~serve ~~other~~is ~~things,~~dependent ~~statements~~on ~~with~~our ~~respect~~ability to ~~CSC’s~~continue ~~financial~~to ~~condition,~~expand ~~results~~our ofcapacity ~~operations,~~in ~~cash~~certain ~~flows,~~offshore ~~business~~locations. ~~strategies~~However, ~~operating~~as ~~efficiencies~~our orpresence ~~synergies,~~in ~~competitive~~these ~~position,~~locations ~~growth opportunities~~increases, ~~plans~~we ~~and objectives of management, and other matters. Such statements~~ are ~~subject~~exposed to ~~numerous assumptions,~~ risks, ~~uncertainties~~inherent ~~and~~to ~~other~~these ~~factors,~~locations ~~many of~~ which ~~are~~may ~~outside~~adversely ofimpact ~~CSC’s~~our ~~control,~~revenues ~~which~~and ~~could cause actual results to differ materially from the results described in such statements~~profitability. ~~These factors include without limitation those listed below under Item 1A. "Risk Factors" in this Annual Report.~~

~~Forward-looking~~A ~~statements~~significant inportion ~~this~~of ~~Annual~~our ~~Report~~application ~~speak~~outsourcing ~~only~~and assoftware ofdevelopment ~~the~~activities ~~date~~have ofbeen ~~this~~shifted ~~Annual~~to ~~Report,~~India and ~~forward-looking~~we ~~statements~~plan to continue to expand our presence there and in ~~documents~~other ~~attached~~lower orcost ~~incorporated~~locations. byAs ~~reference~~a ~~speak~~result, ~~only~~we are exposed to the risks inherent to operating in India including (1) a highly competitive labor market for skilled workers which may result in significant increases in labor costs as well as shortages of qualified workers in the ~~date~~future ofand ~~those~~(2) ~~documents~~the possibility that the U.S. ~~CSC~~federal ~~does~~government ~~not~~or ~~undertake~~the ~~any~~European ~~obligation~~Union tomay ~~update~~enact orlegislation ~~release~~that ~~any~~provides ~~revisions~~significant disincentives for customers to ~~any~~locate ~~forward-looking~~certain ~~statement~~of ortheir tooperations ~~report~~offshore, ~~any~~which ~~events~~would orreduce ~~circumstances~~the ~~after~~demand for the ~~date~~services we provide in India and may adversely impact our cost structure and profitability. In addition, India has experienced civil unrest and acts of ~~this~~terrorism ~~Annual~~and ~~Report~~has orbeen involved in confrontations with Pakistan. If India continues to ~~reflect~~experience ~~the~~this ~~occurrence~~civil ofunrest ~~unanticipated~~or ~~events~~if its conflicts with Pakistan escalate, ~~except~~our asoperations ~~required~~in byIndia ~~law.~~could be adversely affected.

~~Many~~The ~~factors~~Foreign ~~could~~Corrupt ~~cause~~Practices ~~actual~~Act ~~results~~("FCPA") toand ~~differ~~similar ~~materially~~anti-bribery ~~from~~laws ~~such~~in ~~forward~~other jurisdictions prohibit U.S.-~~looking~~based ~~statements~~companies ~~with~~and ~~respect~~their tointermediaries ~~the~~from ~~agreement~~making improper payments to ~~merge~~non-U.S. ~~CSC~~officials ~~with~~for the ~~Enterprise~~purpose ~~Services~~of ~~segment~~obtaining ofor ~~HPE~~retaining ~~including~~business. ~~risks~~We ~~relating~~pursue toopportunities ~~the~~in ~~completion~~certain parts of the ~~transaction~~world onthat ~~anticipated~~experience ~~timing~~government corruption and in certain circumstances, ~~including~~compliance ~~obtaining~~with ~~shareholder~~anti-bribery laws may conflict with local customs and ~~regulatory~~practices. ~~approvals,~~Our ~~anticipated~~internal ~~tax~~policies ~~treatment~~mandate compliance with all applicable anti-bribery laws. We require our employees, ~~unforeseen~~partners, ~~liabilities~~subcontractors, ~~future~~agents ~~capital~~and ~~expenditures~~others who work for us or on our behalf to comply with the FCPA and other anti-bribery laws. There is no assurance that our policies or procedures will protect us against liability under the FCPA or other laws for actions taken by our employees, ~~inability~~partners, subcontractors, agents and other intermediaries. If we are found to ~~achieve~~be ~~expected~~liable ~~synergies~~for FCPA violations (either due to our own acts or our inadvertence, ~~loss~~or due to the acts or inadvertence of ~~revenues~~others), ~~and~~we ~~delay~~could suffer severe criminal or civil penalties or other sanctions, which could have a material adverse effect on our reputation, business, ~~disruption~~results ~~caused~~of byoperations ~~difficulties~~or incash ~~integrating~~flows. ~~the~~In ~~businesses~~addition, detecting, investigating and resolving actual or alleged violations of ~~CSC~~the FCPA or other anti-bribery violations is expensive and ~~Enterprise~~could ~~Services~~consume significant time and attention of our senior management.

~~Executive~~Security ~~Officers~~breaches, ofcyber ~~the~~attacks ~~Registrant~~or service interruptions could expose us to liability or impair our reputation, which could cause significant financial loss.

Name	Age	Year First Elected asan Officer	Term as anOfficer	Position Held With the Registrant as of the filing date	FamilyRelationship
J. Michael Lawrie	62	2012	Indefinite	Chairman, President and Chief Executive Officer	None
Paul N. Saleh	59	2012	Indefinite	Executive Vice President and Chief Financial Officer	None
William L. Deckelman, Jr.	58	2008	Indefinite	Executive Vice President, General Counsel and Secretary	None
Stephen Hilton	46	2015	Indefinite	Executive Vice President and General Manager, Global Infrastructure Services	None
James R. Smith	49	2013	Indefinite	Executive Vice President and General Manager, Global Business Services	None

As a provider of information technology services to customers operating in a number of regulated industries and countries, we store and process increasingly large amounts of sensitive data for our clients. At the same time, the continued occurrence of high-profile data breaches provides evidence of an external environment increasingly hostile to information security. We rely on internal and external information and technological systems to manage our operations and are exposed to risk of loss resulting from breaches in the security or other failures of these systems. We collect and store certain personal and financial information from customers and employees. Security breaches could expose us to a risk of loss of this information, regulatory scrutiny, actions and penalties, extensive contractual liability litigation, reputational harm and a loss of customer confidence that could potentially have an adverse impact on future business with current and potential customers.

~~Business~~Experienced ~~Experience~~computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of ~~Executive~~third ~~Officers~~parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and deploy viruses, worms and other malicious software programs that attack our products or otherwise exploit any security vulnerabilities of these products. In addition, sophisticated hardware and operating system software and applications produced or procured from third parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of the system. The costs to eliminate or alleviate cyber or other security problems, including bugs, viruses, worms, malicious software programs and other security vulnerabilities, could be significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing or potential customers that may impede the combined company’s sales, manufacturing, distribution or other critical functions.

J.Advances ~~Michael~~in ~~Lawrie~~computer ~~joined CSC as President and Chief Executive Officer on March 19~~capabilities, ~~2012~~new ~~and~~discoveries ~~as a member of its Board of Directors~~ in ~~February 2012. On December 15, 2015, Mr. Lawrie was appointed chairman of~~ the ~~board~~field of ~~directors.~~cryptography ~~Prior~~or toother ~~joining~~events ~~CSC,~~or hedevelopments ~~served~~may asresult ~~the~~in ~~Chief Executive Officer of U.K.-based Misys plc,~~ a ~~leading~~compromise ~~global~~or ITbreach ~~solutions~~of ~~provider to~~ the ~~financial~~algorithms ~~services~~that ~~industry,~~we ~~from~~use ~~November 2006~~ to ~~March~~protect ~~2012.~~sensitive ~~Mr.~~customer ~~Lawrie~~transaction ~~also served as the Executive Chairman of Allscripts-Misys Healthcare Solutions, Inc~~data., ~~from~~A ~~October~~party ~~2008~~who tois ~~August~~able ~~2010. From 2005~~ to ~~2006,~~circumvent ~~Mr.~~our ~~Lawrie~~security ~~was~~measures acould ~~general~~misappropriate ~~partner~~proprietary ~~with~~information ~~ValueAct~~or Capital, a San Francisco-based private investment firm. He also served as Chief Executive Officer of Siebel Systems, Inc., an international software and solutions company, from 2004 to 2005. Mr. Lawrie also spent 27 years with IBM where he rose to Senior Vice President and Group Executive, responsible for sales and distribution of all IBM products and services worldwide. From 1998 to 2001, Mr. Lawrie was General Manager for IBM's business in Europe, the Middle East and Africa, which included operations in 124 countries and 90,000 employees. Prior to that, Mr. Lawrie served as General Manager of Industries for IBM's business operations in Asia Pacific, based in Tokyo. Mr. Lawrie is a Trustee of Drexel University, Philadelphia.

Paul N. Saleh joined CSC as Vice President and Chief Financial Officer on May 23, 2012. His current CSC job title is Executive Vice President and Chief Financial Officer. On March 16, 2016, Mr. Saleh was appointed as CSC's principal accounting officer until a new corporate controller is appointed. Prior to joining the Company, Mr. Saleh served as the Chief Financial Officer of Gannett Co. from 2010 to 2012. Prior to his tenure at Gannett Co., from 2008 to 2010, Mr. Saleh was a Managing Partner at Menza Partners, an operational and financial advisory group focusing on media, telecommunications, and technology industries. Prior to that, he served as Chief Financial Officer of Sprint Nextel Communications from 2001 to 2007 and as Interim Chief Executive Officer of Sprint Nextel until 2008. He served as Senior Vice President and Chief Financial Officer of Walt Disney International where he also held various other senior positions from 1997 to 2001.

~~William~~cause L.interruption ~~Deckelman,~~in Jrour operations. ~~was~~We ~~appointed~~are ~~Executive~~required ~~Vice~~to ~~President,~~expend ~~General~~capital ~~Counsel~~ and ~~Secretary~~other inresources ~~August~~to ~~2014.~~protect ~~Mr.~~against ~~Deckelman~~attempted ~~joined~~security ~~CSC~~breaches inor ~~January~~cyber-attacks ~~2008~~or ~~and~~to ~~served~~alleviate asproblems ~~Vice~~caused ~~President,~~by ~~General~~successful ~~Counsel~~breaches ~~and~~or ~~Secretary~~attacks. ~~from~~Our ~~2008~~security measures are designed to ~~2012,~~identify and asprotect ~~Executive~~against ~~Vice~~security ~~President~~breaches and ~~General~~cyber-attacks ~~Counsel~~and ~~from~~no ~~2012~~threat toincident ~~August~~identified ~~2014. Prior~~ to ~~joining~~date ~~CSC,~~has ~~Mr.~~resulted ~~Deckelman~~in ~~served~~a asmaterial ~~Executive~~adverse ~~Vice~~effect ~~President~~on ~~and~~us ~~General~~or ~~Counsel~~our ofcustomers. ~~Affiliated~~However, ~~Computer~~our ~~Services~~failure ~~Inc.~~to detect, ~~since~~prevent ~~March~~or ~~2000,~~adequately ~~and~~respond ~~served~~to as a ~~director~~future ~~from~~threat ~~2000~~incident could subject us to ~~2003~~liability, ~~holding~~damage ~~various~~our ~~executive~~reputation ~~positions~~and ~~there~~have ~~since~~a ~~1989~~material adverse effect on our business.

~~Stephen~~Increasing ~~Hilton~~data isprivacy ~~the~~and ~~Executive~~information ~~Vice~~security ~~President~~obligations could also impose additional regulatory pressures on our customers’ businesses and ~~General~~indirectly, ~~Manager~~on our operations. In response, ~~Global~~some ~~Infrastructure~~of ~~Services~~our customers have sought and may continue to seek, to contractually impose certain strict data privacy and information security obligations on us. HeSome ~~joined~~of ~~CSC~~our incustomer ~~March~~contracts ~~2015~~may not contractually limit our liability for the loss of confidential information. ~~Prior~~If we are unable to ~~joining~~adequately ~~CSC~~address these concerns, ~~from~~our ~~2006~~business toand ~~2014,~~results ~~Mr.~~of ~~Hilton~~operations ~~served~~could assuffer. ~~Managing~~Compliance ~~Director~~with new privacy and ~~Chief~~security ~~Information~~laws, ~~Officer~~requirements and regulations, ~~Technology~~where ~~Infrastructure~~required ~~Services~~or undertaken by us, ~~and~~may asresult ~~Head~~in ofcost ~~Corporate~~increases ~~Real~~due ~~Estate~~to &potential ~~Services~~systems atchanges, ~~Credit~~the ~~Suisse.~~development ~~Prior~~of toadditional ~~his~~administrative ~~tenure~~processes atand ~~Credit~~increased ~~Suisse~~enforcement actions, ~~Mr.~~fines ~~Hilton~~and ~~served~~penalties. ~~from~~While ~~2003~~we strive to ~~2006~~comply inwith anall ~~Information~~applicable ~~Technology~~data ~~leadership~~protection ~~role~~laws atand JPregulations ~~Morgan~~as ~~Chase.~~well ~~Prior~~as toour ~~that~~own posted privacy policies, ~~from~~any ~~1996~~failure or perceived failure to ~~2003~~comply or any misappropriation, ~~Mr.~~loss ~~Hilton~~or ~~worked~~other atunauthorized ~~CSC~~disclosure asof asensitive ~~service~~or ~~delivery~~confidential ~~executive~~information may result in proceedings or actions against us by government or other entities or private lawsuits against us, ~~technical~~including ~~architect~~class ~~and~~actions, ~~business~~which ~~development/sales~~could ~~director~~potentially ~~and~~have ~~was~~an ~~based~~adverse ineffect ~~London~~on our business, ~~Singapore~~reputation and ~~New~~results ~~York~~of operations.

~~James~~Portions R.of ~~Smith~~our isinfrastructure ~~the~~also ~~Executive~~may ~~Vice~~experience ~~President~~interruptions, ~~and~~delays ~~General~~or ~~Manager,~~cessations ~~Global~~of ~~Business~~service ~~Services~~or produce errors in connection with systems integration or migration work that takes place from time to time. HeWe ~~joined~~may ~~CSC~~not be successful in ~~August~~implementing ~~2013.~~new ~~Prior~~systems toand ~~joining~~transitioning ~~CSC~~data, ~~Mr.~~which ~~Smith~~could ~~served~~cause asbusiness ~~Chief~~disruptions ~~Executive~~and ~~Officer~~be ofmore ~~Motricity~~expensive, atime-consuming, ~~provider~~disruptive ofand ~~cloud-based~~resource ~~mobile~~intensive. ~~enterprise~~Such ~~and~~disruptions ~~analytics~~could ~~solutions~~adversely ~~from~~impact ~~2009~~our ability to ~~2012.~~respond ~~Prior~~ to ~~that,~~customer herequests ~~held~~and ~~various~~interrupt ~~executive~~other ~~leadership~~processes. ~~positions~~Delayed atsales, ~~Avaya~~lower margins or lost customers resulting from ~~2001~~these todisruptions ~~2008.~~could ~~Prior~~reduce toour ~~that~~revenues, heincrease ~~was~~our anexpenses, ~~Associate~~damage ~~Partner~~our atreputation ~~Accenture~~and adversely affect our stock price.

~~Item~~Our ~~1A.~~ability ~~Risk~~to ~~Factors~~raise additional capital for future needs may impact our ability to compete in the markets we serve.

~~Past~~We ~~performance~~currently ~~may~~maintain ~~not~~investment begrade acredit ~~reliable~~ratings ~~indicator~~with ofMoody's ~~future~~Investors ~~financial~~Service, ~~performance~~Standard & Poor's Ratings Services and Fitch Rating Services. ~~Future~~Our ~~performance~~credit ratings are based upon information furnished by us or obtained by a rating agency from its own sources and ~~historical~~are ~~trends~~subject ~~may~~to berevision, ~~adversely~~suspension ~~affected~~or withdrawal by one or more rating agencies at any time. Rating agencies may review the ~~following~~ratings ~~factors~~assigned to us due to developments that are beyond our control, including as ~~well~~a asresult ~~other~~of ~~variables,~~new standards requiring the agencies to reassess rating practices and ~~should~~methodologies. ~~not~~If bechanges ~~relied~~in ~~upon~~our credit ratings were to ~~project~~occur, it could result in higher interest costs under certain of our credit facilities. It would also cause our future ~~period~~borrowing ~~results~~costs to increase and limit our access to capital markets. Any downgrades could negatively impact the perception of the combined company by lenders and other third parties. In addition, certain of our major contracts provide customers with a right of termination in certain circumstances in the event of a rating downgrade below investment grade.

~~Risks~~On ~~Relating~~March to6, ~~Our~~2017 ~~Business~~Moody's and Fitch Ratings took ratings action in anticipation of the Merger. Moody's assigned DXC a Baa2 long-term rating with a "Stable" outlook, affirmed the Baa2 long-term rating with a "Stable" outlook for CSC and affirmed the P-2 short term rating of CSC's European Commercial Paper program. Fitch Ratings upgraded CSC and assigned both DXC and CSC a BBB+ long-term rating with a "Stable" outlook and affirmed the short-term rating for DXC and CSC at F-2. On March 13, 2017 Standard & Poor's assigned DXC a BBB long-term rating with a "Negative" outlook, removed CSC from credit watch, affirmed the BBB long-term rating with a "Negative" outlook for CSC and affirmed the short-term rating for CSC at A-2.

1. Our business may be adversely impacted as a result of changes in demand, both globally and in individual market segments, for consulting, industry software & solutions, application services and next-generation cloud offerings. In addition, worldwide economic weakness and uncertainty could adversely affect our revenue and expenses.

Current weakness in worldwide economic conditions and political uncertainty may adversely impact our customers' demand for our services in the markets in which we compete, including our customers' demand for consulting, industry software & solutions, application services and next-generation cloud offerings and other IT services.

2. Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends will impact our future growth. If we are not successful in meeting these business challenges, our results of operations and cash flows will be materially and adversely affected.

Our ability to implement solutions for our customers incorporating new developments and improvements in technology which translate into productivity improvements for our customers and to develop service offerings that meet current and prospective customers' needs are critical to our success. The markets we serve are highly competitive. Our competitors may develop solutions or services that make our offerings obsolete. Our ability to develop and implement up to date solutions utilizing new technologies which meet evolving customer needs in cloud, consulting, industry software and solutions and application services markets will impact our future revenue growth and earnings.

3. Our ~~primary~~indebtedness ~~markets,~~may ~~consulting,~~adversely ~~industry~~affect ~~software~~our ~~and solutions~~business, ~~application~~financial ~~services,~~condition and ~~next-generation~~results ~~cloud~~of operations, ~~are~~as ~~highly~~well ~~competitive~~as ~~markets.~~our Ifability ~~we are unable~~ to ~~compete~~meet inour ~~these~~payment ~~highly~~obligations ~~competitive~~under ~~markets,~~ our ~~results of operations will be materially and adversely affected~~debt.

~~Our~~In ~~competitors~~addition ~~include~~to ~~large,~~our ~~technically~~current ~~competent~~total ~~and~~carrying ~~well capitalized companies~~debt, ~~some~~we ofwill ~~which~~be ~~have~~incurring ~~emerged~~significant indebtedness as a result of ~~industry~~the ~~consolidation, as well as “pure play” companies that have a single product focus~~Merger. ~~The~~We ~~competition created by these companies~~ may ~~place~~incur ~~downward~~substantial ~~pressure~~additional onindebtedness ~~operating margins~~ in ~~our~~the ~~industry,~~future ~~particularly~~ for ~~technology~~many ~~outsourcing~~reasons, ~~contract~~including ~~extensions~~to orfund ~~renewals~~acquisitions. AsThis acollective ~~result,~~amount weof ~~may~~debt ~~not~~could behave ~~able~~important toadverse ~~maintain~~consequences ~~our~~to ~~current~~us ~~operating~~and ~~margins,~~our ~~or achieve favorable operating margins~~investors, ~~for~~including: ~~technology outsourcing contracts extended or renewed in the future.~~

~~Any~~• ~~reductions~~making init ~~margins~~more ~~will~~difficult ~~require~~for ~~that~~us ~~we effectively manage our cost structure. If we fail~~ to ~~effectively~~satisfy ~~manage~~ our ~~cost~~debt ~~structure~~obligations ~~during~~and ~~periods~~other ~~with~~ongoing ~~declining~~business ~~margins~~obligations, ~~our~~which ~~results~~may ofresult ~~operations~~in ~~will be adversely affected.~~defaults;

4.• ~~Our~~experiencing ~~ability~~events of default if we fail to ~~raise~~comply ~~additional~~with ~~capital~~the ~~for~~financial ~~future~~and ~~needs~~other ~~will~~covenants ~~impact~~contained in the agreements governing our ~~ability~~debt toinstruments, ~~compete~~which could result in ~~the~~all ~~markets~~of weour ~~serve.~~debt becoming immediately due and payable or require us to negotiate an amendment to financial or other covenants that could cause us to incur additional fees and expenses;

~~Our~~• ~~credit~~subjecting ~~ratings are based upon information furnished by~~ us orto ~~obtained~~the byrisk aof ~~rating~~increased ~~agency~~sensitivity ~~from its own sources and are subject~~ to ~~revision,~~interest ~~suspension~~rate orincreases ~~withdrawal~~in byour ~~one~~outstanding orindebtedness ~~more~~that ~~rating~~bears ~~agencies~~interest at ~~any~~variable ~~time.~~rates ~~Rating~~and ~~agencies~~could ~~may~~cause ~~review the ratings assigned to us due to developments that are beyond~~ our ~~control,~~debt ~~including~~service asobligations ~~a result of new standards requiring the agencies~~ to ~~reassess~~increase ~~rating practices and methodologies.~~ significantly;

~~Subsequent~~• toincreasing ~~our~~the ~~announcement~~risk toof ~~separate~~a ~~into~~future ~~two publicly traded companies, all three~~ credit ~~rating agencies took~~ ratings ~~action.~~downgrade ~~Fitch Ratings formally reaffirmed its existing credit ratings~~ of ~~BBB~~our ~~with "Stable" outlook. On July 30~~debt, ~~2015,~~which ~~Moody’s~~could ~~confirmed~~increase ~~its~~future ~~existing~~debt ~~credit~~costs ~~ratings~~and oflimit ~~Baa2~~the ~~with~~future ~~“Stable”~~availability ~~outlook.~~for Ondebt ~~February 26, 2016, S&P downgraded our BBB+ rating to BBB with "Stable" outlook, which is an investment grade rating.~~ financing;

~~Shortly~~• ~~after~~reducing ~~we announced~~ the ~~execution~~availability of aour ~~merger~~cash ~~agreement~~flow ~~with Hewlett Packard Enterprise Company (HPE) relating~~ to ~~the~~fund ~~Enterprise~~working ~~Services business of HPE~~capital, ~~Fitch~~capital ~~Ratings reaffirmed its existing credit ratings for CSC of BBB with "Stable" outlook~~expenditures, ~~Moody's~~acquisitions ~~reaffirmed its existing credit ratings for CSC of Baa2 with "Stable" outlook~~ and ~~S&P~~other ~~placed~~general ~~all~~corporate ~~of its CSC ratings~~purposes, ~~including~~and ~~its'~~limiting ~~BBB~~our ~~rating,~~ability ~~on CreditWatch status. S&P indicated that it intends~~ to ~~resolve~~obtain ~~the~~additional ~~CreditWatch~~financing ~~status~~for ~~once~~these ~~the merger has closed, at which time they have indicated they will likely lower CSC's commercial paper rating to A-3.~~purposes;

If• ~~changes~~limiting in our ~~credit~~flexibility ~~ratings~~in ~~were~~planning ~~to occur~~for, itor ~~could~~reacting ~~result in higher interest costs under certain of our credit facilities. It would also cause our future borrowing costs~~ to, ~~increase~~ and ~~limit~~increasing our ~~access~~vulnerability to, ~~capital~~changes ~~markets.~~in ~~Any~~our ~~downgrades~~business, ~~could negatively impact~~ the ~~perception~~industries ofin ~~the~~which ~~Company~~we byoperate, ~~lenders~~ and ~~other third parties. In addition, certain of~~ the ~~Company's~~overall ~~major contracts provide customers with a right of termination in certain circumstances in the event of a rating downgrade below investment grade.~~ economy;

5.• ~~Achieving~~placing ~~our~~us ~~growth~~at ~~objectives~~a ~~may~~competitive ~~prove~~disadvantage ~~unsuccessful.~~compared ~~We may be unable~~ to ~~identify~~any ~~future~~of ~~attractive acquisitions and strategic partnerships, which may adversely affect~~ our ~~growth.~~competitors Inthat ~~addition,~~have ~~our~~less ~~ability~~debt to consummate agreements we enter into, including the transactions contemplated by the merger agreement we recently signed with Hewlett Packard Enterprise Company (HPE) involving HPE’s Enterprise Services business, or toare ~~integrate~~less ~~acquisitions~~leveraged; ~~we consummate~~ and ~~implement our strategic partnerships may materially and adversely affect our profitability if we fail to achieve anticipated revenue improvements and cost reductions.~~

We• ~~may~~increasing ~~fail~~our tovulnerability ~~complete transactions we sign. For example, we recently signed a merger agreement with HPE relating~~ to ~~HPE’s Enterprise Services business. Closing this or other strategic transactions is subject to uncertainties and risks, including~~ the ~~risk~~impact ~~that we will be unable to satisfy conditions to closing such as regulatory and financing conditions and the absence~~ of ~~material~~ adverse ~~changes~~economic ~~to our business. In addition, our inability to successfully integrate the operations we acquire~~ and ~~leverage~~industry these operations to generate substantial cost savings as well as our inability to avoid revenue erosion and earnings decline could have a material adverse effect on our results of operations, cash flows and financial positionconditions. Integrating acquired operations is a significant challenge and there is no assurance that we will be able to manage these integrations successfully particularly given the larger scale of HPE’s Enterprise Services business in comparison to our own.

Our ability to meet our payment and other obligations under our debt instruments depends on our ability to generate significant cash flow in the future. This, to some extent, is subject to general economic, financial, competitive, legislative and regulatory factors as well as other factors that are beyond our control. There can be no assurance that our business will generate sufficient cash flow from operations or that current or future borrowings will be sufficient to meet our current debt obligations and other liquidity needs.

Our business may be adversely impacted as a result of changes in demand for our services, both globally and in individual market segments.

Current weakness in worldwide economic conditions and political uncertainty may adversely impact our customers' demand for our services in the markets in which we compete, including our customers' demand for consulting, industry software and solutions, application services and next-generation cloud offerings and other IT services.

Our primary markets are highly competitive. If we are unable to compete in these highly competitive markets, our results of operations may be materially and adversely affected.

Our competitors include large, technically competent and well capitalized companies, some of which have emerged as a result of industry consolidation, as well as “pure play” companies that have a single product focus. If we are unable to renew or extend our current technology contracts due to this competition, we may experience downward pressure on operating margins in our technology outsourcing contract. As a result, we may not be able to maintain our current operating margins, or achieve favorable operating margins, for technology outsourcing contracts extended or renewed in the future. Any reductions in margins will require that we effectively manage our cost structure. If we fail to effectively manage our cost structure during periods with declining margins, our results of operations may be adversely affected.

We encounter aggressive competition from numerous and varied competitors. Our competitiveness is based on factors including technology, innovation, performance, price, quality, reliability, brand, reputation, range of products and services, account relationships, customer training, service and support and security. If we are unable to compete based on such factors, our results of operations and business prospects could be harmed. CSC, together with DXC, has a large portfolio services and allocates financial, personnel and other resources across services while competing with companies that have smaller portfolios or specialize in one or more of our

service Welines. ~~have~~As ~~also~~a ~~entered into~~result, ~~and~~we ~~intend~~may toinvest ~~identify~~less ~~and~~in ~~enter~~certain ~~into~~business ~~additional~~areas ~~strategic~~than ~~partnerships with other industry participants that will allow us to expand~~ our ~~business.~~competitors ~~However~~do, weand competitors may behave ~~unable~~greater tofinancial, ~~identify~~technical ~~attractive~~and ~~strategic~~marketing ~~partnership~~resources ~~candidates~~available orto ~~complete~~them ~~these~~compared ~~partnerships~~to onthe ~~terms~~resources ~~favorable~~allocated to usour services. InIndustry ~~addition,~~consolidation ifmay wealso ~~are~~affect ~~unable~~competition toby ~~successfully~~creating ~~implement~~larger, ~~our~~more ~~partnership~~homogeneous ~~strategies~~and orpotentially ~~our~~stronger ~~strategic~~competitors ~~partners~~in dothe ~~not~~markets ~~fulfill~~in ~~their~~which ~~obligations~~we oroperate. ~~otherwise~~Additionally, ~~prove~~competitors ~~advantageous~~may toaffect our business, ~~our~~by ~~investments~~entering ininto ~~these~~exclusive ~~partnerships~~arrangements ~~and~~with ~~our~~existing ~~anticipated~~or ~~business~~potential ~~expansion could be adversely affected~~customers.

6Companies with whom we have alliances in certain areas may be or become competitors in other areas. WeIn addition, companies with whom we have alliances also may acquire or form alliances with competitors, which could ~~suffer~~reduce ~~additional~~their ~~losses~~business ~~due~~with us. If we are unable to ~~asset~~effectively ~~impairment~~manage ~~charges~~these complicated relationships with alliance partners, our business and results of operations could be adversely affected.

We ~~test~~face ~~our~~aggressive ~~goodwill~~price ~~for~~competition ~~impairment~~and ~~during~~may ~~the~~have ~~second~~to ~~quarter~~lower ofprices ~~every~~to ~~year~~stay competitive, ~~and~~while onsimultaneously anseeking ~~interim~~to ~~date~~maintain ~~should events~~ or ~~changes~~improve inrevenue ~~circumstances~~and ~~indicate~~gross ~~the~~margin. ~~carrying~~In ~~value~~addition, ofcompetitors ~~goodwill~~who ~~may~~have ~~not~~a begreater ~~recoverable~~presence in ~~accordance~~some ~~with~~of ~~Accounting~~the ~~Standards~~lower-cost ~~Codification~~markets ~~(ASC)~~in ~~350~~which ~~"Goodwill~~we ~~and~~compete, ~~Other~~or ~~Intangible~~who ~~Assets".~~can Ifobtain ~~the~~better ~~fair~~pricing, ~~value~~more offavorable acontractual ~~reporting~~terms ~~unit~~and isconditions, ~~revised~~may ~~downward~~be ~~due~~able to ~~declines~~offer inlower ~~business~~prices ~~performance~~than orwe ~~other~~are ~~factors,~~able anto ~~impairment~~offer. ~~under~~Our ~~ASC~~cash ~~350~~flows, ~~could~~results ~~result~~of operations and afinancial ~~non-cash~~condition ~~charge~~may ~~could~~ be ~~required~~adversely affected by these and other industry-wide pricing pressures.

WeIf ~~also~~we ~~test~~are ~~certain~~unable ~~equipment and deferred cost balances associated with contracts when the contract is materially underperforming or is expected~~ to ~~materially~~accurately ~~underperform~~estimate in the ~~future,~~cost ~~as compared to the original bid model or budget. If the projected cash flows~~ of aservices ~~particular~~and ~~contract are not adequate to recover~~ the ~~unamortized~~timeline ~~cost~~for ~~balance~~completion of ~~the asset group~~contracts, the ~~balance~~profitability ~~is adjusted in the tested period based on the contract's fair value. Either~~ of ~~these~~our ~~impairments~~contracts ~~could~~may be materially ~~affect~~and ~~our~~adversely ~~reported net earnings~~affected.

7Our commercial contracts are typically awarded on a competitive basis. IfOur bids are based upon, among other things, the expected cost to provide the services. To generate an acceptable return on our ~~customers~~investment ~~experience~~in ~~financial~~these ~~difficulties~~contracts, orwe ~~request~~must ~~out~~be able to accurately estimate our costs to provide the services required by the contract and to complete the contracts in a timely manner. In addition, revenues from some of our contracts are recognized using the percentage-of-~~scope~~completion method, which requires estimates of total costs at completion, fees earned on the contract, or both. This estimation process, particularly due to the technical nature of the services being performed and the long-term nature of certain contracts, is complex and involves significant judgment. Adjustments to original estimates are often required as work progresses, weexperience is gained and additional information becomes known, even though the scope of the work required under the contract may not bechange. ~~able~~If we fail to ~~collect~~accurately estimate our ~~receivables~~costs or the time required to complete a contract, ~~which~~the ~~would~~profitability of our contracts may be materially and adversely ~~affect our profitability~~affected.

~~Over~~Our ~~the~~performance ~~course~~on ~~of a long-term contract~~contracts, ~~our~~including ~~customers'~~those ~~financial~~on ~~condition~~which ~~may~~we ~~decline~~have ~~and~~partnered ~~lower~~with ~~their~~third ~~ability to pay their obligations. As a result~~parties, ~~our~~may ~~cash~~be ~~collections~~adversely ~~could~~affected ~~decrease~~if ~~and our bad debt expense could increase for uncollectible receivables. While~~ we ~~may resort to other methods to pursue our claims~~ or ~~collect~~the ~~our~~third ~~receivables,~~parties ~~these~~fail ~~methods are expensive and time consuming and successful collection is not guaranteed. Failure~~ to ~~collect~~deliver ~~our receivables or prevail~~ on ~~our claims would have an adverse effect on our profitability~~commitments.

8.Our Ifcontracts are increasingly complex and, in some instances, require that we ~~are~~partner ~~unable~~with other parties, including software and hardware vendors, to ~~accurately~~provide ~~estimate~~the complex solutions required by our customers. Our ability to deliver the ~~cost~~solutions ofand provide the services required by our customers is dependent on our and ~~the~~our ~~time~~partners' ~~line~~ability ~~for~~to ~~completion~~meet ofour ~~contracts,~~customers' ~~the~~delivery ~~profitability~~schedules. ofIf we or our ~~contracts~~partners fail to deliver services or products on time, our ability to complete the contract may be ~~materially~~adversely affected, which may have a material and ~~adversely~~adverse ~~affected~~impact on our revenues and profitability.

Our ~~commercial~~primary ~~contracts~~markets are ~~typically~~highly ~~awarded on a~~ competitive ~~basis~~. ~~Our~~ ~~bids~~Achieving ~~are~~our ~~based~~stated ~~upon,~~objectives ~~among~~depends ~~other items, the cost to provide the services. To generate an acceptable return~~ on our ~~investment~~ability ~~in these contracts, we must be able~~ to ~~accurately~~attract ~~estimate our costs to provide the services required by the contract~~ and toretain ~~complete~~highly ~~the~~skilled ~~contracts~~IT inprofessionals a timely manner. In addition, revenues from some of our contracts are recognized using the percentage-of-completion method, which requires estimates of total costs at completion, fees earned on the contract, or both. This estimation process, particularly due to the technical nature of the services being performed and ~~the long-term nature of certain contracts, is complex and involves significant judgment~~executives. Adjustments to original estimates are often required as work progresses, experience is gained and additional information becomes known, even though the scope of the work required under the contract may not change. If we fail to accurately estimate our costs or the time required to complete a contract, the profitability of our contracts may be materially and adversely affected.

9Our ability to grow and provide our customers with competitive services is partially dependent on our ability to attract and retain people with the skills, knowledge and management experience to serve our customers. WeAs we noted above, the markets we serve are ~~defendants~~highly competitive. Competition for skilled employees in ~~pending~~the ~~litigation~~technology ~~that~~outsourcing ~~may~~and consulting and systems integration markets is intense around the world. Our ability to expand geographically and continue to operate our existing global businesses successfully depends, in large part, on our ability to attract and retain highly skilled IT professionals and executives. The loss of personnel could impair our ability to perform under certain of our contracts, which could have a material ~~and~~ adverse ~~impact~~effect on our ~~profitability~~reputation, goodwill, financial position, results of operations and cash flows.

As noted in Part I, Item 3, "Legal Proceedings" and Note 23 to the Consolidated Financial Statements, we are currently party to a number of disputes which involve or may involve litigation. We are not able to predict the ultimate outcome of these disputes or the actual impact of these matters on our profitability. If we agree to settle these matters or judgments are secured against us, we may incur liabilities which may have a material and adverse impact on our liquidity and earnings.

~~10.~~We ~~Our~~also ~~ability~~must tomanage ~~provide~~leadership development and succession planning throughout our ~~customers~~business. ~~with~~The ~~competitive~~loss ~~services~~of iskey ~~dependent~~personnel, oncoupled ~~our~~with ~~ability~~an inability to ~~attract~~adequately develop and ~~retain~~train ~~qualified~~ personnel and assimilate key new hires or promoted employees could adversely affect our business and results of operations.

~~Our~~In ~~ability~~addition, toas ~~grow~~a ~~and~~result ~~provide~~of ~~our~~the ~~customers~~Merger, ~~with~~uncertainty ~~competitive~~around ~~services~~future isemployment ~~partially~~opportunities, ~~dependent~~facility onlocations, organizational and reporting structures and other related concerns may impair our ability to attract and retain ~~highly~~qualified ~~motivated~~personnel. ~~people~~If ~~with~~employee ~~the~~attrition ~~skills~~is ~~necessary~~higher tothan ~~serve~~expected ~~our~~due ~~customers. As~~to wedifficulties ~~noted~~encountered ~~above,~~in the ~~markets~~integration weprocess ~~serve~~it ~~are~~may ~~highly~~adversely ~~competitive~~impact ~~and~~our ~~competition~~ability ~~for~~to ~~skilled~~realize ~~employees~~the inanticipated benefits of the ~~technology~~Merger. ~~outsourcing~~While ~~and~~we ~~consulting~~have ~~and~~put ~~systems~~in ~~integration~~place ~~markets~~certain isincentives ~~intense~~designed ~~for~~to ~~both~~retain ~~on-shore~~key ~~and~~personnel ~~offshore~~in ~~locales.~~connection ~~The~~with ~~loss~~the ofMerger, ~~personnel~~these ~~could~~incentives ~~impair~~may ~~our~~not ~~ability~~be sufficient to ~~perform~~achieve ~~under~~their ~~certain~~desired ofpurpose ~~our~~and ~~contracts,~~only ~~which~~extend ~~could~~to ~~have~~ a ~~material~~limited ~~adverse~~population ~~effect~~that onmay ~~our~~not ~~consolidated~~include ~~financial~~personnel ~~position,~~whose ~~results~~services ofare ~~operations~~important ~~and~~to ~~cash~~achieving ~~flows~~key organizational objectives.

11More generally, if we do not hire, train, motivate and effectively utilize employees with the right mix of skills and experience in the right geographic regions and for the right offerings to meet the needs of our clients, our financial performance could suffer. ~~Our~~For ~~international~~example, ~~operations~~if our employee utilization rate is too low, our profitability and the level of engagement of our employees could decrease. If that utilization rate is too high, it could have an adverse effect on employee engagement and attrition and the quality of the work performed, as well as our ability to staff projects. If we are ~~exposed~~unable to ~~risks~~hire and retain a sufficient number of employees with the skills or background needed to meet current demand, ~~including~~we ~~fluctuations~~might inneed ~~exchange~~to ~~rates~~redeploy existing personnel, increase our reliance on subcontractors or increase employee compensation levels, all of which could also negatively affect our profitability. In addition, if we have more employees than necessary to serve client demand with certain skill sets for certain offerings or in certain geographies, we may beincur ~~beyond~~increased costs as we work to rebalance our ~~control~~supply of skills and resources with client demand in those geographies.

~~For~~Our ~~fiscal~~international ~~2016,~~operations ~~approximately 57% of our recognized revenues were denominated in currencies other than the U.S. dollar. The exposure to currencies other than the U.S. dollar may impact our results as they~~ are ~~expressed~~exposed ~~in U.S. dollars. In particular, the uncertainty with respect~~ to the ability of certain European countries to continue to service their sovereign debt obligations and the related European financial restructuring efforts may cause the value of the euro to fluctuate. Currency variations also contribute to variations in sales of products and services in impacted jurisdictions. For examplerisks, in the event that one or more European countries were to replace the euro with another currency, sales in that country or in Europe generally may be adversely affected until stable exchange rates are established. While currency risk, including ~~exposure to~~ fluctuations in ~~currency~~ exchange rates, iswhich ~~partially~~may ~~mitigated~~be ~~largely~~beyond ~~by matching costs with revenues in a given currency,~~ our ~~exposure to fluctuations in other currencies against the U~~control.S. dollar increases as revenue in currencies other than the U.S. dollar increase and as more of the services we provide are shifted to lower cost regions of the world. We believe that the percentage of our revenue denominated in currencies other than the U.S. dollar will continue to represent a significant portion of our revenue. Also, we believe that our ability to match revenue and expenses in a given currency will decrease as more work is performed at offshore locations.

WeOur ~~operate~~exposure into ~~more~~currencies other than 60the ~~countries~~U.S. ~~and~~dollar may impact our ~~operations~~results, as they are expressed in ~~these~~U.S. ~~countries~~dollars. ~~are~~Currency ~~subject~~variations also contribute to ~~the~~variations ~~local,~~in ~~legal~~sales of products and ~~political~~services ~~environments~~in affected jurisdictions. ~~Our~~For ~~operations~~example, ~~are~~if ~~subject~~one or more European countries were to ~~regulations~~replace ~~including~~the ~~employment,~~euro ~~tax,~~with ~~statutory~~another ~~reporting~~currency, ~~trade~~sales ~~restriction~~in ~~and~~that ~~other~~country ~~regulations~~or in Europe generally may be adversely affected until stable exchange rates are established. ~~Notwithstanding~~While ~~our~~historically ~~best~~we ~~efforts~~have partially mitigated currency risk, weincluding ~~may~~exposure ~~not~~to befluctuations in ~~compliance~~currency exchange rates, by matching costs with ~~all~~revenues ~~regulations~~in each currency, our exposure to fluctuations in other currencies against the ~~countries~~U.S. dollar increases as revenue in ~~which~~currencies weother ~~operate~~than the U.S. dollar increase and ~~may~~as bemore ~~subject~~of the services we provide are shifted to ~~penalties~~lower ~~and/or~~cost ~~fines~~regions asof the world. We believe that the percentage of our revenues denominated in currencies other than the U.S. dollar will continue to represent a ~~result~~significant portion of our revenues. ~~These~~Also, ~~penalties~~we orbelieve ~~fines~~that ~~may~~our ~~materially~~ability to match revenues and ~~adversely~~expenses ~~impact~~in ~~our~~each ~~profitability~~currency will decrease as more work is performed at offshore locations.

12We may use forward contracts and options designated as cash flow hedges to protect against currency exchange rate risks. WeThe effectiveness of these hedges will depend on our ability to accurately forecast future cash flows, which may be ~~exposed~~particularly difficult during periods of uncertain demand and highly volatile exchange rates. We may incur significant losses from our hedging activities due to ~~negative~~factors ~~publicity~~such as demand volatility and ~~other~~currency ~~potential~~variations. ~~risks~~In ifaddition, wecertain ~~are~~or ~~unable~~all of our hedging activities may be ineffective, may expire and not be renewed or may not offset the adverse financial impact resulting from currency variations. Losses associated with hedging activities also may impact our revenues and to ~~maintain~~a ~~effective~~lesser ~~internal~~extent ~~controls~~our ~~over~~cost of sales and financial ~~reporting~~condition.

WeIn ~~are~~June ~~required~~2016, ~~under~~ the ~~Sarbanes-Oxley~~U.K. ~~Act~~held ~~of 2002 to include~~ a ~~report~~referendum ofin ~~management~~which onBritish ~~our~~citizens ~~internal~~voted ~~controls~~to ~~that~~exit ~~contains~~from ~~an assessment by management of~~ the ~~effectiveness~~European ofUnion, ~~our~~commonly ~~internal~~referred ~~control~~to ~~over~~as ~~financial reporting~~“Brexit.” In ~~addition~~March 2017, the ~~public~~UK ~~accounting~~government ~~firm~~initiated ~~auditing~~a ~~our~~process ~~financial~~to ~~statements~~withdraw ~~must~~from ~~report on~~ the ~~effectiveness~~EU ofand ~~our~~began ~~internal~~negotiating ~~control~~the ~~over~~terms ~~financial~~of ~~reporting~~its separation. We ~~Any~~face ~~failure~~risks toassociated ~~maintain~~with ~~effective~~Brexit. ~~controls~~For orexample, ~~difficulties~~Brexit ~~encountered in the effective improvement of our internal controls~~ could ~~prevent~~potentially usresult ~~from~~in ~~timely~~restrictions ~~and~~on ~~reliably~~the ~~reporting~~movement ~~our~~of ~~financial~~capital ~~results~~ and ~~may~~the ~~harm~~mobility ~~our~~of ~~operating~~personnel ~~results.~~between Inthe ~~addition,~~remaining if27 weEU ~~are~~states ~~unable~~and tothe ~~conclude that we have effective internal control over financial reporting or~~UK, ifin ~~our~~addition ~~independent registered public accounting firm is unable~~ to ~~provide~~volatility usin ~~with~~currency anexchange ~~unqualified~~rates. ~~report~~Brexit asalso tocreates ~~the~~uncertainty ~~effectiveness~~in ofareas ~~our~~currently ~~internal~~regulated ~~control~~by ~~over~~EU ~~financial~~law, ~~reporting~~such as ofcross ~~each~~border ~~fiscal~~data ~~year~~transfers. ~~end,~~Brexit weis ~~may~~also beexpected ~~exposed~~ to ~~negative~~lead ~~publicity,~~to ~~which~~short ~~could~~and ~~cause~~medium ~~investors~~term touncertainty ~~lose confidence~~ in ~~our~~future ~~reported~~trade ~~financial~~arrangements ~~information~~between U.K.-based ~~Any~~operations ~~failure to maintain effective internal controls~~ and the ~~resulting~~various ~~negative~~EU ~~publicity~~end ~~may~~markets ~~materially~~that ~~and~~they ~~adversely affect our business and stock price~~serve.

13. In the course of providing services to customers, we may inadvertently infringe on the intellectual property rights of others and be exposed to claims for damages.

The solutions we provide to our customers may inadvertently infringe on the intellectual property rights of third parties resulting in claims for damages against us or our customers. Our contracts generally indemnify our clients from claims for intellectual property infringement for the services and equipment we provide under our contracts. The expense and time of defending against these claims may have a material and adverse impact on our profitability. Additionally, the publicity we may receive as a result of infringing intellectual property rights may damage our reputation and adversely impact our ability to develop new business.

~~14.~~ Our ~~contracts~~future ~~generally~~business ~~contain~~and ~~provisions~~financial ~~under~~performance ~~which~~could asuffer ~~customer~~due ~~may terminate the contract prior~~ to ~~completion.~~a ~~Early~~variety ~~contract~~of ~~terminations~~international ~~may~~factors, ~~materially and adversely affect our revenues and profitability.~~including:

~~Our~~• ~~contracts~~ongoing ~~typically~~instability ~~contain~~or ~~provisions~~changes ~~under~~in which customers may terminate the contract prior to completion of the term of the contract. These contracts generally allow the customer to terminate the contract for convenience upon providing written notice. If a ~~contract~~country’s isor ~~terminated~~region’s ~~for~~economic ~~convenience, we seek, either by defined contract schedules~~ or ~~through~~political ~~negotiations~~conditions, ~~recovery~~including ~~of our property~~inflation, ~~plant~~recession, ~~equipment,~~interest ~~outsourcing~~rate ~~costs,~~fluctuations ~~investments,~~ and ~~other~~actual ~~intangibles.~~or ~~However,~~anticipated ~~there~~military isor nopolitical assurance we will be able to fully recover our investments. We may not be able to replace the revenue and earnings from these contracts in the short-term. In the long-term, our reputation may be harmed by the publicity generated from contract terminations.conflicts;

A• ~~termination~~longer ~~arising~~collection ~~out~~cycles ~~of our default may expose us to liability~~ and ~~have~~financial ainstability ~~material~~among adverse effect on our ability to compete for future contracts and orders. Our contracts and the services we provide under our contracts are often highly complex and may include numerous mutual performance obligations and conditions as well as terms permitting each party to issue default notices unilaterally which, assuming the notices are validated as proper under the contract and the default is not remedied within the applicable cure period, may entitle the non-defaulting party to terminate the contract. During the course of a contractual relationship one or both parties may issue default notices; however, given the nature of our services and our relationships with our customers, the parties routinely resolve these issues on commercially reasonable terms. If we are not able to negotiate a commercially reasonable resolution in a particular situation and termination rights are asserted, protracted litigation could ensue. ;

~~15.~~• ~~Our~~trade ~~ability~~regulations toand ~~compete~~procedures inand ~~certain~~actions ~~markets~~affecting ~~we serve is dependent on our ability to continue to expand our capacity in certain offshore locations. However~~production, aspricing ~~our~~and ~~presence~~marketing inof ~~these locations increases~~products, weincluding ~~are~~policies ~~exposed~~adopted toby ~~risks~~countries ~~inherent~~that tomay ~~these~~champion ~~locations~~or ~~which~~otherwise ~~may~~favor ~~adversely~~domestic ~~impact~~companies ~~our~~and ~~revenue~~technologies ~~and~~over ~~profitability.~~foreign competitors;

A• ~~significant~~local portion of our application outsourcing and software development activities have been shifted to India, and we plan to continue to expand our presence there and in other lower cost locations. As a result, we are exposed to the risks inherent to operating in India including (1) a highly competitive labor ~~market~~conditions ~~for skilled workers which may result in significant increases in labor costs as well as shortages of qualified workers in the future,~~ and (2) the possibility that the U.S. federal government or the European Union may enact legislation that provides significant disincentives for customers to locate certain of their operations offshore which would reduce the demand for the services we provide in India and may adversely impact our cost structure and profitability. In addition, India has experienced civil unrest and acts of terrorism and has been involved in confrontations with Pakistan. If India continues to experience this civil unrest or if its conflicts with Pakistan escalate, our operations in India could be adversely affected.regulations;

~~The~~• ~~Foreign~~managing Corrupt Practices Act (FCPA) and similar anti-bribery laws in other jurisdictions prohibit U.S.-based companies and their intermediaries from making improper payments to non-U.S. officials for the purpose of obtaining or retaining business. We pursue opportunities in certain parts of the world that experience government corruption, and in certain circumstances, compliance with anti-bribery laws may conflict with local customs and practices. Our internal policies mandate compliance with all applicable anti-bribery laws. We require our ~~employees,~~geographically ~~partners,~~dispersed subcontractors, agents and others who work for us or on our behalf to comply with the FCPA and other anti-bribery laws. There is no assurance that our policies or procedures will protect us against liability under the FCPA or other laws for actions taken by our agents, employees and intermediaries. If we are found to be liable for FCPA violations (either due to our own acts or our inadvertence, or due to the acts or inadvertence of others), we could suffer from severe criminal or civil penalties or other sanctions, which could have a material adverse effect on our reputation, business, results of operations or cash flows. In addition, detecting, investigating and resolving actual or alleged violations of the FCPA or other anti-bribery violations is expensive and could consume significant time and attention of our senior management.workforce;


•	changes in the international, national or local regulatory and legal environments;


•	differing technology standards or customer requirements;


•	difficulties associated with repatriating earnings generated or held abroad in a tax-efficient manner and


•	changes in tax laws.

Our business operations are subject to various and changing federal, state, local and foreign laws and regulations that could result in costs or sanctions that adversely affect our business and results of operations.

We operate in more than 50 countries in an increasingly complex regulatory environment. Among other things, we provide complex industry specific insurance processing in the U.K, which is regulated by authorities in the U.K. and elsewhere, such as the U.K.’s Financial Conduct Authority and Her Majesty’s Treasury and the U.S. Department of Treasury, which increases our exposure to compliance risk. For example, in February 2017 we submitted an initial notification of voluntary disclosure regarding certain possible violations of U.S. sanctions laws to the U.S. Department of Treasury, Office of Foreign Assets Control (“OFAC”) pertaining to insurance premium data and claims data processed by two partially-owned joint ventures of Xchanging, which we acquired during the first quarter of fiscal 2017. A copy of the disclosure was also provided to Her Majesty’s Treasury Office of Financial Sanctions Implementation in the U.K. Our related internal investigation is continuing, and we have undertaken to provide a full report of its findings to OFAC when completed. Our retail investment account management business in Germany is another example of a regulated business, which must maintain a banking license, is regulated by the German Federal Financial Supervisory Authority and the European Central Bank and must comply with German banking laws and regulations.

In addition, businesses in the countries in which we operate are subject to local, legal and political environments and regulations including with respect to employment, tax, statutory supervision and reporting and trade restriction. These regulations and environments are also subject to change.

Adjusting business operations to changing environments and regulations may be costly and could potentially render the particular business operations uneconomical, which may adversely affect our profitability or lead to a change in the business operations. Notwithstanding our best efforts, we may not be in compliance with all regulations in the countries in which we operate at all times and may be subject to sanctions, penalties or fines as a result. These sanctions, penalties or fines may materially and adversely impact the profitability of the combined company.

We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business.

Our Board of Directors has approved several restructuring plans to realign our cost structure due to the changing nature of our business and to achieve operating efficiencies to reduce our costs. We may not be able to obtain the costs savings and benefits that were initially anticipated in connection with our restructuring plans. Additionally, as a result of our restructuring, we may experience a loss of continuity, loss of accumulated knowledge and/or inefficiency during transitional periods. Reorganization and restructuring can require a significant amount of management and other employees' time and focus, which may divert attention from operating and growing our business. If we fail to achieve some or all of the expected benefits of restructuring, it could have a material adverse effect on our competitive position, business, financial condition, results of operations and cash flows. For more information about our restructuring plans, see Note 19 - "Restructuring Costs" to the consolidated financial statements.

~~16.~~In ~~Our~~the ~~performance~~course onof ~~contracts,~~providing ~~including~~services ~~those~~to oncustomers, ~~which~~ we ~~have~~may ~~partnered~~inadvertently ~~with~~infringe ~~third~~on ~~parties,~~the ~~may~~intellectual beproperty ~~adversely~~rights ~~affected~~of ifothers weand orbe ~~the~~exposed ~~third parties fail~~ to ~~deliver~~claims onfor ~~commitments~~damages.

~~Our~~The ~~contracts~~solutions ~~are~~we ~~increasingly~~provide ~~complex~~to ~~and,~~our incustomers ~~some~~may ~~instances,~~inadvertently ~~require~~infringe ~~that~~on wethe ~~partner~~intellectual ~~with~~property ~~other~~rights ~~parties,~~of ~~including~~third ~~software~~parties ~~and~~resulting ~~hardware~~in ~~vendors,~~claims tofor ~~provide~~damages ~~the~~against ~~complex~~us ~~solutions~~or ~~required by~~ our customers. Our ~~ability~~contracts togenerally ~~deliver~~indemnify ~~the~~our ~~solutions~~clients ~~and~~from ~~provide~~claims ~~the~~for ~~services~~intellectual ~~required~~property byinfringement ~~our~~for ~~customers~~the isservices ~~dependent~~and onequipment ~~our~~we ~~and~~provide ~~our~~under ~~partners'~~the ~~ability~~applicable tocontracts. ~~meet~~The ~~our~~expense ~~customers'~~and ~~delivery~~time ~~schedules. If~~of wedefending oragainst ~~our~~these ~~partners~~claims ~~fail~~may tohave ~~deliver~~a ~~services~~material orand ~~products~~adverse impact on ~~time,~~ our ~~ability~~profitability. toAdditionally, ~~complete~~ the ~~contract~~publicity we may bereceive ~~adversely~~as ~~affected,~~a ~~which~~result of infringing intellectual property rights may ~~have~~damage aour ~~material~~reputation and ~~adverse~~adversely impact on our ~~revenue~~ability ~~and~~to ~~profitability~~develop new business.

~~17.~~We ~~Security~~may ~~breaches~~be orexposed ~~service~~to ~~interruptions~~negative ~~could~~publicity ~~expose~~and usother topotential ~~liability~~risks orif ~~impair~~we ~~our~~are ~~reputation,~~unable ~~which~~to ~~could~~achieve ~~cause~~and ~~significant~~maintain effective internal controls over financial ~~loss~~reporting.

AsWe aare ~~provider~~required ofunder ~~information~~the ~~technology~~Sarbanes-Oxley ~~services~~Act toof ~~private~~2002 ~~and~~to ~~public~~include ~~sector customers operating in~~ a ~~number~~report offrom ~~regulated~~management ~~industries~~on ~~and~~our ~~countries,~~internal wecontrols ~~store~~that ~~and~~contains ~~process~~an ~~increasingly~~assessment ~~large~~by ~~amounts~~management of ~~sensitive data for our clients. At~~ the ~~same~~effectiveness ~~time, the continued occurrence~~ of ~~high-profile~~our ~~data~~internal ~~breaches~~control ~~provides~~over ~~evidence~~financial ~~of an external environment increasingly hostile to information security~~reporting. We ~~rely~~In onaddition, ~~internal~~the ~~and~~independent ~~external~~registered ~~information~~public ~~and~~accounting ~~technological~~firm ~~systems~~auditing ~~to manage~~ our ~~operations~~financial ~~and~~statements ~~are~~must ~~exposed~~report toon ~~risk of loss resulting from breaches in~~ the ~~security~~effectiveness ~~or other failures~~ of ~~these~~our ~~systems.~~internal Wecontrol ~~collect~~over ~~and store certain personal and~~ financial ~~information from customers and employees~~reporting. ~~Security~~In ~~breaches~~our ~~could~~Form ~~expose~~10-K usfor tothe afiscal ~~risk~~year ofended ~~loss~~April ~~of this information~~1, ~~regulatory scrutiny~~2016, ~~actions~~we ~~and~~reported ~~penalties,~~a ~~extensive~~material ~~contractual~~weakness ~~liability~~over ~~litigation~~the accounting, ~~reputational harm~~presentation, and adisclosure ~~loss~~for ofincome ~~customer~~taxes, ~~confidence~~including ~~that~~the ~~could~~income ~~potentially~~tax ~~have~~provision anand ~~adverse~~related ~~impact~~tax onassets ~~future business with current~~ and ~~potential customers~~liabilities.

~~Advances~~Any infailure ~~computer~~to ~~capabilities,~~maintain ~~new~~effective ~~discoveries~~controls inor ~~the~~difficulties ~~field~~encountered ofin ~~cryptography~~the oreffective ~~other~~improvement ~~events~~of orour ~~developments~~internal ~~may~~controls, ~~result~~including inthe aremediation ~~compromise or breach~~ of the ~~algorithms~~material ~~that~~weakness wein ~~use~~accounting tofor ~~protect~~income ~~sensitive~~tax, ~~customer~~could ~~transaction~~prevent ~~data.~~us Afrom ~~party~~timely ~~who~~and isreliably ~~able~~reporting tofinancial ~~circumvent~~results ~~our~~and ~~security~~may ~~measures~~harm ~~could~~our ~~misappropriate~~operating ~~proprietary~~results. ~~information~~In oraddition, ~~cause~~if ~~interruption~~we ~~in our operations. We~~ are ~~required~~unable to ~~expend~~conclude ~~capital~~that ~~and~~we ~~other~~have ~~resources~~effective tointernal ~~protect~~control ~~against~~over ~~attempted~~financial ~~security~~reporting ~~breaches~~ or, ~~cyber-attacks~~if orour toindependent ~~alleviate~~registered ~~problems~~public ~~caused~~accounting byfirm ~~successful~~is ~~breaches~~unable orto ~~attacks.~~provide ~~Our~~an ~~security~~unqualified ~~measures~~report ~~are~~as ~~designed~~ to ~~identify~~the ~~and~~effectiveness ~~protect~~of ~~against~~our ~~security~~internal ~~breaches~~control ~~and~~over ~~cyber~~financial ~~attacks~~reporting, ~~and~~as noof ~~threat~~each ~~incident~~fiscal ~~identified~~year toend, ~~date~~we ~~has~~may ~~resulted~~be inexposed ato ~~material~~negative ~~adverse~~publicity, ~~effect~~which oncould uscause orinvestors ~~our~~to ~~customers.~~lose ~~However,~~confidence in our ~~failure~~reported tofinancial ~~detect,~~information. ~~prevent~~Any orfailure ~~adequately~~to ~~respond~~maintain toeffective ainternal ~~future~~controls ~~threat~~and ~~incident~~any ~~could~~such ~~subject~~resulting usnegative topublicity ~~liability,~~may ~~damage~~materially affect our ~~reputation~~business and ~~have~~stock ~~a material adverse effect on our business~~price.

~~Increasing~~Effective ~~data~~internal ~~privacy~~controls ~~and~~are ~~information~~necessary ~~security~~for ~~obligations~~us ~~could~~to ~~also~~provide ~~impose~~reliable ~~additional~~financial ~~regulatory~~reports ~~pressures~~and oneffectively ~~our~~prevent ~~customers’~~fraud. ~~businesses~~However, ~~and~~a ~~indirectly~~control system, onno ~~our~~matter ~~operations. In~~how ~~response,~~well ~~some~~conceived ofand ~~our~~operated ~~customers~~can ~~have~~provide ~~sought~~only reasonable, ~~and~~not ~~may continue to seek~~absolute, toassurance ~~contractually~~that ~~impose~~the ~~certain~~objectives ~~strict~~of ~~data~~the ~~privacy~~control ~~and~~system ~~information~~are ~~security~~met. ~~obligations~~There oncan usbe ~~and~~no ~~some~~assurance ofthat ~~our~~all ~~customer~~control ~~contracts~~issues ~~may~~or ~~not~~fraud ~~contractually~~will ~~limit~~be ~~our~~detected. ~~liability~~In ~~for~~connection with the ~~loss~~Merger ofand ~~confidential~~as ~~information.~~the Ifcombined wecompany ~~are~~continues ~~unable~~ to ~~adequately~~grow ~~address~~its ~~these concerns~~businesses, ~~our~~its ~~business~~internal ~~and~~controls ~~results~~will ofbecome ~~operations~~more ~~could~~complex ~~suffer.~~and ~~Compliance~~will ~~with~~require ~~new~~more ~~privacy~~resources ~~and~~for ~~security~~internal ~~laws~~controls. Additionally, ~~requirements~~the ~~and~~existence ~~regulations,~~of ~~where~~any ~~required~~material weaknesses or ~~undertaken~~significant bydeficiencies ~~us,~~would ~~may~~require ~~result~~management into ~~cost~~devote ~~increases~~significant ~~due~~time toand ~~potential~~incur ~~systems~~significant ~~changes,~~expense ~~the~~to ~~development~~remediate ofany ~~additional~~such ~~administrative~~material ~~processes~~weaknesses or significant deficiencies and ~~increased~~management ~~enforcement~~may ~~actions,~~not ~~fines~~be ~~and~~able ~~penalties.~~to ~~While~~remediate weany ~~strive~~such tomaterial ~~comply~~weaknesses ~~with~~or ~~all~~significant ~~applicable~~deficiencies ~~data~~in ~~protection~~a ~~laws~~timely ~~and~~manner. ~~regulations~~The asexistence ~~well~~of asany ~~our~~material ~~own~~weakness ~~posted~~in ~~privacy~~the ~~policies,~~combined ~~any~~company’s ~~failure~~internal orcontrol ~~perceived~~over ~~failure~~financial toreporting ~~comply~~could oralso ~~any~~result ~~misappropriation,~~in ~~loss~~errors orin ~~other~~its ~~unauthorized~~financial ~~disclosure~~statements ofthat ~~sensitive~~could orrequire ~~confidential~~the ~~information~~combined ~~may~~company ~~result~~to inrestate ~~proceedings~~its orfinancial ~~actions~~statements, ~~against~~cause usit byto ~~government~~fail orto ~~other~~meet ~~entities,~~its ~~private~~reporting ~~lawsuits~~obligations ~~against~~and uscause ~~including~~stockholders ~~class~~to ~~actions~~lose orconfidence ~~the~~in ~~loss~~its ofreported ~~customers~~financial information, all of which could ~~potentially~~materially ~~have~~and anadversely ~~adverse~~affect ~~effect~~the oncombined ~~our~~company ~~business,~~and ~~reputation~~the ~~and~~market ~~results~~price of ~~operations~~its common stock.

~~18.~~We ~~Changes~~could insuffer ~~our~~additional ~~tax~~losses ~~rates~~due ~~could~~to ~~affect~~asset ~~our~~impairment ~~future results~~charges.

~~Our~~We ~~future~~test ~~effective~~our ~~tax~~goodwill ~~rates~~for ~~could~~impairment beduring ~~affected~~the bysecond quarter of every year and on an interim date should events or changes in ~~the~~circumstances ~~mix~~indicate ofthat ~~earnings~~the incarrying ~~countries~~value ~~with~~of ~~differing~~goodwill ~~statutory~~may ~~tax~~not ~~rates,~~be ~~changes~~recoverable. inIf the ~~valuation~~fair value of ~~deferred~~a ~~tax~~reporting ~~assets~~unit ~~and~~is ~~liabilities,~~revised ordownward bydue ~~changes~~to declines in ~~tax~~business ~~laws~~performance or ~~their~~other ~~interpretation.~~factors, Wean ~~are~~impairment ~~subject~~could toresult ~~the~~and ~~continuous~~a ~~examination~~non-cash ofcharge ~~our~~could ~~income~~be ~~tax~~required. ~~returns~~We bytest ~~the~~intangible ~~U.S.~~assets ~~Internal~~with ~~Revenue~~finite ~~Service~~lives ~~(IRS)~~for ~~and~~impairment ~~other~~whenever ~~tax~~events ~~authorities.~~or Wechanges ~~regularly~~in ~~assess~~circumstances indicate that the ~~likelihood~~carrying amount of ~~adverse~~an ~~outcomes~~asset ~~resulting~~may ~~from~~not ~~these~~be ~~examinations~~recoverable. toThis ~~determine~~assessment ~~the~~of ~~adequacy~~recoverability of ~~our~~finite-lived ~~provision~~intangible ~~for~~assets ~~taxes.~~could ~~There~~result ~~can~~in an impairment and a non-cash charge could be norequired. ~~assurance~~We ~~that~~acquired ~~the~~a ~~outcomes~~substantial ~~from~~quantity ~~these~~of ~~examinations~~goodwill ~~will~~and ~~not~~other ~~have~~intangibles as a ~~material~~result ~~adverse~~of ~~effect~~the onMerger, increasing our ~~financial~~exposure ~~condition~~to ~~and~~this ~~operating results~~risk.

~~19.~~ We ~~may~~also betest ~~adversely~~certain ~~impacted~~equipment byand ~~disruptions~~deferred incost balances associated with contracts when the ~~credit~~contract ~~markets,~~is ~~including~~materially ~~disruptions~~underperforming ~~that~~or ~~reduce~~is ~~our~~expected ~~customers'~~to ~~access~~materially underperform in the future, as compared to ~~credit~~the ~~and~~original ~~increase~~bid model or budget. If the ~~costs~~projected cash flows of a particular contract are not adequate to ~~our~~recover ~~customers~~the unamortized cost balance of ~~obtaining~~the ~~credit~~asset group, the balance is adjusted in the tested period based on the contract's fair value. Either of these impairments could materially affect our reported net earnings.

~~The~~We ~~credit~~are ~~markets~~defendants ~~have~~in ~~historically~~pending ~~been~~litigation ~~volatile~~that ~~and~~may ~~therefore~~have ita ismaterial ~~not possible for us to predict the ability of our clients~~ and ~~customers~~adverse toimpact ~~access~~on ~~short-term financing and other forms of capital. If a disruption in the credit markets were to occur, it could also pose a risk to~~ our ~~business~~profitability ~~if customers~~ and ~~suppliers are unable to obtain financing to meet payment or delivery obligations to us~~liquidity. ~~In addition, customers may decide to downsize, defer or cancel contracts which could negatively affect our revenue.~~

20As noted in Note 21 - "Commitments and Contingencies" to the consolidated financial statements, we are currently party to a number of disputes that involve or may involve litigation. ~~Our~~We ~~hedging~~are ~~program~~not isable ~~subject~~to predict the ultimate outcome of these disputes or the actual impact of these matters on our profitability. If we agree to ~~counterparty~~settle ~~default~~these ~~risk~~matters or judgments are secured against us, we may incur liabilities that may have a material and adverse impact on our liquidity and earnings.

WeChanges ~~enter~~in into foreign currency forward contracts and options and interest rate swaps with a number of counterparties. As a result, we are subject to the risk that the counterparty to one or more of these contracts defaults on its performance under the contract. During an economic downturn, the counterparty's financial condition may deteriorate rapidly and with little notice and we may be unable to take action to protect our ~~exposure.~~tax Inrates ~~the event of a counterparty default, we~~ could ~~incur~~affect ~~significant losses, which may harm~~ our ~~business~~future ~~and financial condition~~results. In the event that one or more of our counterparties becomes insolvent or files for bankruptcy, our ability to eventually recover any losses suffered as a result of that counterparty's default may be limited by the liquidity of the counterparty.

~~21.~~Our Wefuture ~~derive~~effective ~~significant~~tax ~~revenue~~rates ~~and~~could ~~profit~~be ~~from~~affected ~~contracts~~by ~~awarded~~changes ~~through~~in ~~competitive~~the ~~bidding~~mix ~~processes,~~of ~~which~~earnings ~~can~~in ~~impose~~countries ~~substantial~~with ~~costs~~differing onstatutory ustax rates, changes in the valuation of deferred tax assets and weliabilities, ~~will~~or ~~not~~by ~~achieve~~changes ~~revenue~~in tax laws or their interpretation. We are subject to the continuous examination of our income tax returns by the IRS and ~~profit~~other ~~objectives~~tax ifauthorities. weWe ~~fail~~regularly assess the likelihood of adverse outcomes resulting from these examinations to ~~bid~~determine onthe adequacy of our provision for taxes. There can be no assurance that the outcomes from these ~~projects~~examinations ~~effectively~~will not have a material adverse effect on our financial condition and operating results.

We ~~derive~~may ~~significant~~be ~~revenue~~adversely ~~and~~impacted ~~profit~~by ~~from~~disruptions ~~government~~in ~~contracts~~the ~~that~~credit ~~are~~markets, ~~awarded~~including ~~through~~disruptions ~~competitive bidding processes. We expect~~ that ~~most~~reduce ofour ~~the~~customers' ~~non-U.S.~~access ~~government~~to ~~business~~credit weand ~~seek~~increase in the ~~foreseeable~~costs ~~future~~to ~~will~~our becustomers ~~awarded through competitive bidding. Competitive bidding is expensive and presents a number~~ of ~~risks,~~obtaining ~~including:~~ credit.

The credit markets have historically been volatile and therefore it is not possible for us to predict the ability of our clients and customers to access short-term financing and other forms of capital. If a disruption in the credit markets were to occur, it could also pose a risk to our business if customers and suppliers are unable to obtain financing to meet payment or delivery obligations to us. In addition, customers may decide to downsize, defer or cancel contracts which could negatively affect our revenues.

Our hedging program is subject to counterparty default risk.

We enter into foreign currency forward contracts and options and interest rate swaps with a number of counterparties. As a result, we are subject to the risk that the counterparty to one or more of these contracts defaults on its performance under the contract. During an economic downturn, the counterparties financial condition may deteriorate rapidly and with little notice and we may be unable to take action to protect our exposure. In the event of a counterparty default, we could incur significant losses, which may harm our business and financial condition. In the event that one or more of our counterparties becomes insolvent or files for bankruptcy, our ability to eventually recover any losses suffered as a result of a counterparty's default may be limited by the liquidity of the counterparty.

We derive significant revenues and profit from contracts awarded through competitive bidding processes, which can impose substantial costs on us and we may not achieve revenue and profit objectives if we fail to bid on these projects effectively.

We derive significant revenues and profit from government contracts that are awarded through competitive bidding processes. We expect that most of the non-U.S. government business we seek in the foreseeable future will be awarded through competitive bidding. Competitive bidding is expensive and presents a number of risks, including:


•	the substantial cost and managerial time and effort that we spend to prepare bids and proposals for contracts that may or may not be awarded to us;


•	the need to estimate accurately the resources and costs that will be required to service any contracts we are awarded, sometimes in advance of the final determination of their full scope and design;


•	the expense and delay that may arise if our competitors protest or challenge awards made to us pursuant to competitive bidding;

• the requirement to resubmit bids protested by our competitors, and in the termination, reduction, or modification of the awarded contracts; and


•	the opportunity cost of not bidding on and winning other contracts we might otherwise pursue.

~~22.~~If ~~Catastrophic~~our ~~events~~customers experience financial difficulties or ~~climate~~request ~~conditions~~out-of-scope work, we may ~~disrupt~~not be able to collect our ~~business~~receivables, which would materially and adversely affect our profitability.

WeOver ~~and~~the ~~our~~course ~~customers~~of ~~are~~a ~~subject~~long-term ~~to various federal~~contract, ~~state,~~a ~~local~~customer's ~~and~~financial ~~foreign~~condition ~~government~~may ~~requirements~~decline ~~relating~~and toreduce ~~the~~its ~~protection~~ability ofto ~~the~~pay ~~environment~~its obligations. ~~Our~~This ~~revenues~~would ~~and~~cause ~~results~~our ofcash ~~operations~~collections ~~may~~to bedecrease ~~adversely affected by the passage of climate change~~ and ~~other~~bad ~~environmental~~debt ~~legislation~~expense ~~and~~to ~~regulations~~increase. ~~For~~ ~~example,~~While ~~new~~we ~~legislation or regulations~~ may ~~result~~resort into ~~increased~~alternative ~~costs~~methods ~~directly relating~~ to ~~our~~pursue ~~compliance~~claims or ~~indirectly~~collect toreceivables, ~~the~~these ~~extent~~methods ~~that~~are ~~new~~expensive ~~requirements~~and ~~increase~~time ~~prices~~consuming ~~charged~~and tosuccessful uscollection byis ~~vendors~~not ~~because of increased compliance costs~~guaranteed. At ~~this~~Failure ~~point, we are unable~~ to ~~determine~~collect ~~the~~our ~~impact~~receivables ~~that~~or ~~climate~~prevail ~~change~~on ~~and~~claims ~~other~~would ~~environmental~~have ~~legislation~~an ~~and~~adverse ~~regulations~~effect ~~could have~~ on our ~~overall~~profitability ~~business~~and cash flows.

13Risks Related to the Merger

~~23.~~ The ~~Separation~~combined ~~could~~company ~~result~~may innot ~~substantial~~realize ~~tax~~the ~~liability~~anticipated tobenefits ~~CSC~~from ~~and~~the ~~our shareholders~~Merger.

~~Among~~There ~~the~~can ~~conditions~~be tono ~~completing~~assurance ~~the~~that ~~Separation~~we ~~was~~will ~~our~~be ~~receipt~~able ofto arealize ~~legal~~the ~~opinion~~intended benefits of ~~tax~~the ~~counsel~~Merger ~~substantially~~or tothat the ~~effect~~combined ~~that,~~company ~~for~~resulting ~~U.S.~~from ~~federal income tax purposes,~~ the ~~Separation~~Merger will ~~qualify~~perform ~~for tax-free treatment~~ as aanticipated. ~~spin-off~~Specifically, ~~under Section 355 of~~ the ~~Internal~~Merger ~~Revenue~~could ~~Code.~~cause ~~The~~disruptions ~~legal~~in ~~opinions~~the wecombined ~~received~~company's ~~were based on~~business, ~~among~~including ~~other~~by ~~things,~~disrupting ~~various~~operations ~~assumptions~~or ~~and~~causing ~~representations~~customers ~~we provided~~ to ~~counsel.~~delay ~~If any of those assumptions~~ or ~~representations~~to ~~turn~~defer ~~out~~decisions to bepurchase ~~inaccurate~~products or ~~incomplete,~~renew wecontracts ~~may~~or ~~not be able~~ to ~~rely~~end ontheir ~~the opinion~~relationships. ~~Furthermore~~Similarly, ait ~~legal opinion of counsel~~ is ~~not~~possible ~~binding~~that oncurrent ~~the IRS~~ or ~~the~~prospective ~~courts.~~employees ~~Accordingly, the IRS or the courts may challenge the conclusions stated in the opinion and~~ could ~~prevail.~~experience ~~If,~~uncertainty ~~notwithstanding~~about ~~receipt~~their offuture ~~the~~roles ~~opinion,~~with the ~~Separation~~combined ~~is determined to be taxable~~company, wewhich could beharm ~~subject to a substantial tax liability. In addition, there could be a tax liability for~~ our ~~investors~~ability ~~based~~to onattract ~~the~~and ~~fair~~retain ~~market~~key ~~value of the CSRA shares received~~personnel.

~~Even~~As ifpreviously ~~the~~disclosed, ~~Separation~~we ~~otherwise~~expect ~~qualifies~~that asthe aMerger ~~tax-free~~will ~~spin~~produce first-~~off~~year ~~transaction,~~synergies for the ~~distribution~~combined ~~could~~company beof ~~taxable~~approximately to$1.0 usbillion, ~~(but~~with ~~not~~a torun ~~our~~rate ~~shareholders)~~of in$1.5 ~~certain~~billion ~~circumstances~~by ifthe ~~future~~end ~~significant~~of ~~acquisitions~~year one. The anticipated $1.0 billion of ~~our~~post-closing ~~stock~~synergies orand $1.5 billion run rate at the ~~stock~~end of year one were each calculated by estimating the ~~new~~expected ~~company~~value ~~are~~of ~~deemed~~harmonizing topolicies beand ~~part~~benefits between CSC and HPES and supply chain and procurement benefits from expected economies of scale such as volume discounts, as well as cost synergies expected from workforce optimization such as elimination of duplicative roles and other duplicative general, administrative and overhead costs. The combined company’s success in realizing cost and revenues synergies, growth opportunities, and other financial and operating benefits as a ~~plan~~result orof ~~series~~the Merger, and the timing of ~~related~~their ~~transactions~~realization, ~~that~~depends ~~include~~on the ~~spin-off~~successful integration of the combined company's business operations. InEven ~~this~~if ~~event~~we successfully integrate, we cannot predict with certainty if or when these cost and revenue synergies, growth opportunities and benefits will occur, or the ~~resulting~~extent ~~tax~~to ~~liability~~which ~~could~~they actually will be ~~substantial~~achieved. InFor ~~connection~~example, ~~with~~the benefits from the ~~Separation,~~Merger wemay ~~entered~~be ~~into~~offset aby ~~tax~~costs ~~matters~~incurred ~~agreement~~in ~~with~~integrating ~~CSRA~~CSC and HPES or in required capital expenditures related to the acquisition of HPES. In addition, ~~under~~the ~~which~~quantification itof ~~agreed~~synergies ~~not~~expected to ~~enter~~result ~~into~~from ~~any~~the ~~transaction~~Merger ~~without~~is ~~our~~based ~~consent~~on significant estimates and assumptions that ~~could~~are ~~cause~~subjective ~~any~~in ~~portion~~nature and inherently uncertain. Realization of ~~the~~any ~~Separation~~benefits toand synergies could be ~~taxable~~affected toby usa number of factors beyond our control, including, without limitation, general economic conditions, increased operating costs, regulatory developments and toother ~~indemnify~~risks. usThe ~~for~~amount of synergies actually realized, if any, ~~tax~~and ~~liabilities~~the ~~resulting~~time ~~from~~periods in which any such ~~transactions~~synergies are realized, could differ materially from the expected synergies, regardless of whether the two business operations are combined successfully. ~~These~~If ~~obligations~~the integration is unsuccessful or if the combined company is unable to realize the anticipated synergies and ~~potential~~other ~~tax~~benefits ~~liabilities~~of ~~may~~the ~~discourage~~Merger, ~~delay~~there orcould ~~prevent~~be a ~~change~~material ofadverse ~~control~~effect ofon usthe orcombined company’s business, financial condition and results of ~~CSRA~~operations.

~~24.~~ The ~~announcement~~integration ~~and~~following ~~pendency~~the ~~of our proposed~~ Merger ~~with~~may ~~HPE’s~~present ~~Enterprise~~significant ~~Services business could adversely affect our business, financial results and operations~~challenges.

~~The~~There ~~announcement~~is ~~and~~a ~~pendency~~significant degree of ~~the~~difficulty ~~proposed~~inherent ~~Merger could cause disruptions~~ in ~~and~~the ~~create~~process uncertainty surrounding our business, including affecting our relationships with our existing and future customers, suppliers and employees, which could have an adverse effect on our business, financial results and operations, regardless of ~~whether~~integrating ~~the~~HPES ~~proposed Merger is completed. In particular, we could also potentially lose customers or suppliers,~~ and ~~new customer or supplier contracts could be delayed or decreased~~CSC. InThese ~~addition,~~difficulties ~~we have diverted, and will continue to divert, significant management resources towards the completion of the transaction, which could adversely affect our business and results of operations.~~include:

~~Item~~• ~~1B.~~integration ~~Unresolved~~activities ~~Staff~~while ~~Comments~~carrying on ongoing operations;

~~The~~• ~~Company has previously received comment letters from~~ the ~~Staff~~challenge of ~~the~~integrating ~~SEC’s Division of Corporation Finance (~~the ~~Staff)~~business ~~with~~cultures ~~respect to certain~~ of ~~the~~HPES ~~Company’s filings for its fiscal years 2011, 2012~~ and ~~2013. The Company has responded to each of these letters and believes that it has addressed the Staff’s comments. Further~~CSC, ~~the~~which ~~Company~~may ~~believes~~prove ~~that its Form 10-K/A with respect~~ to ~~fiscal~~be ~~year 2014, filed with the SEC on June 5, 2015, also addressed certain of the Staff’s prior comments.~~ incompatible;

On• ~~September 25, 2014,~~ the ~~Company~~challenge ~~received~~and acost ~~letter from the Staff~~ of ~~the~~integrating ~~SEC's~~certain Division of Corporation Finance as part of its review of the Company's Form 10-K for the fiscal year ended March 28, 2014 and the Company's Form 10-Q for the quarter ended July 4, 2014. The Staff provided comments and requested additional information ~~related~~technology tosystems ~~certain accounting disclosures, including disclosure relating to software development costs, contingencies~~ and ~~goodwill.~~other ~~The~~systems; ~~Company responded to that letter on October 16, 2014~~ and ~~believes that it has addressed the Staff's comments.~~

On• ~~May 27, 2016, we received a letter from~~ the ~~SEC's~~potential ~~Division~~difficulty ofin ~~Corporation~~retaining ~~Finance~~key ~~stating~~officers that it has completed its review of our Form 10-Ks noted above. As of the date of this annual report, the Company has not received confirmation from the Staff that its review process is complete for the Company's Form 10-Q for the quarter ended July 4, 2014. The Company intends to continue to work with the Staff and ~~respond~~other ~~to any remaining comments~~personnel.

~~Item~~The 2process of integrating operations could cause an interruption of, or loss of momentum in, the activities of one or more of the combined company’s businesses. ~~Properties~~Members of senior management may be required to devote considerable amounts of time to this integration process, which will decrease the time they will have to manage our business, service existing businesses and develop new services or strategies. In addition, certain existing contractual restrictions limit the ability to engage in certain integration activities for varying periods after the Merger. There is no assurance we will be able to manage this integration to the extent or in the time horizon anticipated, particularly given the larger scale of the HPES business in comparison to CSC's business. If senior management is not able to timely and effectively manage the integration process, or if any significant business activities are interrupted as a result of the integration process, our business could suffer. The delay or inability to achieve anticipated integration goals could have a material adverse effect on our business, financial condition and results of operations after the Merger.

~~The~~If ~~following~~the ~~tables~~Merger ~~provides~~does not qualify as a ~~summary~~reorganization ofunder ~~properties~~Section ~~owned~~368(a) ~~and~~of ~~leased~~the byCode, CSC's orformer ~~its~~stockholders ~~subsidiaries~~may asincur ofsignificant ~~April 1,~~tax ~~2016:~~liabilities.

Properties Owned	Approximate Square Footage	General Usage
Blythewood, South Carolina	456,000	Computer and General Office
Copenhagen, Denmark	368,000	Computer and General Office
Aldershot, United Kingdom	211,000	General Office
Newark, Delaware	176,000	Computer and General Office
Norwich, Connecticut	144,000	Computer and General Office
Falls Church, Virginia	127,000	General Office
Petaling Jaya, Malaysia	126,000	Computer and General Office
Meriden, Connecticut	118,000	Computer and General Office
Maidstone, United Kingdom	79,000	Computer and General Office
Jacksonville, Illinois	60,000	General Office
Chesterfield, United Kingdom	51,000	General Office
Vadodara, India	47,000	Computer and General Office
Tunbridge Wells, United Kingdom	43,000	Computer and General Office
Sterling, Virginia	41,000	General Office
Various other US and foreign locations	39,000	General Office

The completion of the Merger was conditioned upon the receipt by HPE and CSC of opinions of counsel to the effect that, for U.S. federal income tax purposes, the Merger will qualify as a "reorganization" within the meaning of Section 368(a) of the Code (the "Merger Tax Opinions"). The parties did not seek a ruling from the IRS regarding such qualification. The Merger Tax Opinions were based on current law and relied upon various factual representations and assumptions, as well as certain undertakings made by HPE, HPES and CSC. If any of those representations or assumptions is untrue or incomplete in any material respect or any of those undertakings is not complied with, or if the facts upon which the Merger Tax Opinions are based are materially different from the actual facts that existed at the time of the Merger, the conclusions reached in the Merger Tax Opinions could be adversely affected and the Merger may not qualify for tax-free treatment. Opinions of counsel are not binding on the IRS or the courts. No assurance can be given that the IRS will not challenge the conclusions set forth in the Merger Tax Opinions or that a court would not sustain such a challenge. If the Merger were determined to be taxable, previous holders of CSC common stock would be considered to have made a taxable disposition of their shares to HPES, and such stockholders would generally recognize taxable gain or loss on their receipt of HPES common stock in the Merger.

Properties Leased	Approximate Square Footage	General Usage
India	2,402,000	General Office
Australia & other Pacific Rim locations	596,000	Computer and General Office
Germany	422,000	General Office
Washington, D.C. area	230,000	General Office
Texas	200,000	General Office
France	172,000	General Office
United Kingdom	159,000	General Office
Illinois	154,000	General Office
Spain	145,000	General Office
Connecticut	135,000	Computer and General Office
Denmark	133,000	General Office
China	119,000	General Office
Puerto Rico	118,000	General Office
Sweden	117,000	General Office
Bulgaria	101,000	General Office
Various other U.S. and foreign locations	1,097,000	Computer and General Office

Risk Relating to the Separation (defined below)

WeThe ~~currently~~Separation ~~have~~could ~~facilities in excess of our needs and have entered into various sublease agreements for our unused computer and general office space. As a~~ result, ~~included~~ in ~~our~~substantial ~~accrued~~tax ~~expenses,~~liability ~~other current liabilities and other long-term liabilities are costs~~ to beus ~~incurred through 2022 related to such facilities. We believe all of the properties we own or lease are well-maintained, suitable~~ and ~~adequate~~former toCSC ~~meet~~stockholders ~~our~~that ~~current~~received ~~and~~CSRA ~~anticipated requirements~~Inc. ~~For~~stock ~~additional~~in ~~information regarding our excess space obligations, see Note 20 of~~ the ~~Notes to the Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report~~Separation.

In connection with the spin-off by CSC of its U.S. public sector business, National Public Sector ("NPS") on November 27, 2015 (the "Separation"), CSC received an opinion of counsel substantially to the effect that, for U.S. federal income tax purposes, the Separation qualified as a tax-free transaction under Section 355 and related provisions of the Internal Revenue Code. If, notwithstanding the conclusions expressed in that opinion, the Separation were determined to be taxable, we and former CSC stockholders that received CSRA stock in the Separation could incur significant tax liabilities.

Under Section 355(e) of the Internal Revenue Code, the Separation would generally be taxable to us (but not to former CSC stockholders) if one or more persons acquire a 50% or greater interest (measured by vote or value) in the stock of CSC, directly or indirectly (including through acquisition of the combined company’s stock after the completion of the Merger), as part of a plan or series of related transactions that includes the Separation. In general, an acquisition will be presumed to be part of a plan with the Separation if the acquisition occurs within two years before or after the Separation. This presumption may, however, be rebutted based upon an analysis of the facts and circumstances related to the Separation and the particular acquisition in question.

In connection with completion of the Merger, we received an opinion of counsel to the effect that the Merger should not cause Section 355(e) of the Code to apply to the Separation or otherwise affect the qualification of the Separation as a tax-free distribution under Section 355 of the Code (the “Separation Tax Opinion”). The Separation Tax Opinion was based on current law and relied upon various factual representations and assumptions, as well as certain undertakings made by us. If any of those representations or assumptions is untrue or incomplete in any material respect or any of those undertakings is not complied with, or if the facts upon

~~Approximately~~which ~~2,131,000,~~the ~~4,146,000~~Separation ~~and~~Tax ~~211,000~~Opinion ~~square~~is ~~feet~~based ofare ~~our~~materially ~~properties~~different ~~are~~from ~~used~~the byactual ~~our~~facts ~~GBS~~that ~~and~~existed ~~GIS~~at ~~segments,~~the ~~and~~time ~~Corporate,~~of ~~respectively~~the Merger, the conclusions reached in the Separation Tax Opinion could be adversely affected and ~~approximately~~the ~~1,898,000~~Separation ~~square~~may ~~feet~~not ~~support~~qualify for tax-free treatment. No assurance can be given that the ~~operations~~IRS ofwill ~~both~~not challenge the ~~GBS~~conclusions ~~and~~set ~~GIS~~forth ~~segments~~in the Separation Tax Opinion or that a court would not sustain such a challenge. ~~Upon~~Further, ~~expiration~~in light of ~~its~~the ~~leases,~~requirements of Section 355(e) of the ~~Company~~Code, ~~expects~~we might determine to ~~obtain~~forgo ~~renewals~~certain ortransactions, toincluding ~~lease~~share ~~alternative~~repurchases, ~~space.~~stock ~~Lease~~issuances, ~~expiration~~certain ~~dates~~asset ~~range~~dispositions, ~~from~~mergers, ~~fiscal~~consolidations ~~2017~~and ~~through~~other ~~fiscal~~strategic ~~2028~~transactions, for some period of time following the Merger.

~~Item~~ITEM 31B. ~~Legal~~UNRESOLVED ~~Proceedings~~STAFF COMMENTS

The information required by this Item is set forth in Note 23, Commitments & Contingencies of the Notes to the Consolidated Financial Statements under the caption “Contingencies,” contained in Item 8 of this Annual Report on Form 10-KNone. ~~Such information is incorporated herein by reference and made a part hereof.~~

Item 4. Mine Safety Disclosures

Not applicable.

~~PART~~ITEM II2. PROPERTIES

~~Item~~As 5of March 31, 2017, we owned or leased numerous general office facilities, global security operations centers, strategic delivery centers and data centers around the world totalizing approximately 8.4 ~~Market~~million ~~for~~square feet. Locations which house three or more of these types of usage are referred hereto as co-locations. We believe all of the ~~Registrant’s~~properties ~~Common~~we ~~Equity~~own or lease are well-maintained, ~~Related~~suitable ~~Stockholder~~and ~~Matters~~adequate to meet our current and ~~Issuer~~anticipated ~~Purchases~~requirements. Upon expiration of ~~Equity~~our ~~Securities~~leases, we plan to exit low utilization and sub-scale locations to optimize our data center footprint and increase site density. As part of the expected synergies from the Merger, we plan to increase co-location and decrease our occupancy footprint by approximately 30%. Lease expiration dates range from fiscal 2018 through fiscal 2028. Our corporate headquarters is a leased facility located at 1775 Tysons Blvd, Tysons, VA 22102 and is included in the Washington, D.C. area of the square footage in the table below. The space being utilized by our GIS and GBS segments and Corporate is approximately 48%, 26% and 2%, respectively. In addition, approximately 24% is being utilized by both the GBS and GIS segments.

(We have facilities in excess of our needs and have entered into various sublease agreements for our unused general office space. As a) ~~Holders~~result, included in our accrued expenses, other current liabilities and other long-term liabilities are costs net of sublease income to be incurred through 2024 related to such facilities. For additional information regarding our excess space obligations, See Note 19 - "Restructuring Costs" to the consolidated financial statements.

~~Common~~The ~~stock~~following oftables ~~Computer~~provide ~~Sciences~~a ~~Corporation~~summary isof ~~listed~~properties ~~and~~we ~~traded~~own onand ~~the~~lease ~~New~~as ~~York~~of ~~Stock~~March 31, ~~Exchange under the ticker symbol “CSC.”~~ 2017:

As of May 13, 2016, the number of registered shareholders of Computer Sciences Corporation’s common stock was 5,548. The following table shows the high and low sales prices of the Company’s common stock as reported on the New York Stock Exchange for each quarter during the last two fiscal years.



Properties Owned	Approximate Square Footage	General Usage
Blythewood, South Carolina	456,000	Delivery Center and Office
Copenhagen, Denmark	368,000	Office
Aldershot, United Kingdom	211,000	Office
Newark, Delaware	179,000	Co-location
Norwich, Connecticut	144,000	Data Center
Meriden, Connecticut	118,000	Data Center
Shimoga, India	80,000	Delivery Center and Office
Maidstone, United Kingdom	79,000	Data Center
Petaling Jaya, Malaysia	63,000	Co-location
Jacksonville, Illinois	60,000	Office
Chesterfield, United Kingdom	51,000	Delivery Center and Office
Tunbridge Wells, United Kingdom	43,000	Data Center
Sterling, Virginia	41,000	Delivery Center and Office
Various other U.S. and foreign locations	40,000	Data Center and Office

	2016(1)				2015(1)
Fiscal Quarter	High		Low		High		Low
1st	$	71.00	$	63.85	$	64.72	$	57.46
2nd	68.57		58.77		65.52		56.19
3rd	71.15		29.51		66.99		54.23
4th	34.49		24.27		73.29		59.80

(1) Historical market prices do not reflect any adjustment for the impact of the Separation of CSRA, which occurred during the third quarter of fiscal 2016.

Cash dividends declared on our common stock for each quarter of fiscal 2016 and 2015 are included in Selected Quarterly Financial Data (Unaudited) in Part II, Item 8 of this Annual Report. We expect to return excess cash flow to our stockholders from time to time through our common stock repurchase program described below or the payment of dividends. However, there can be no assurance that share repurchases will occur or future dividends will be declared or paid. Our share repurchase program and the declaration and payment of future dividends, the amount of any such share repurchases or dividends, and the establishment of record and payment dates for dividends, if any, are subject to final determination by our Board of Directors after review of our current strategy and financial performance and position, among other things.

(b) Purchases of Equity Securities

The following table provides information on a monthly basis for the fourth quarter ended April 1, 2016 with respect to the Company’s purchase of equity securities:

Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 2, 2016 to January 29, 2016	1,250,000	$	29.76	1,250,000	$	723,551,645
January 30, 2016 to February 26, 2016	518,972	$	32.06	250,000	$	715,662,670
February 27, 2016 to April 1, 2016	63,273	$	31.52	—	$	715,662,670

(1) The Company accepted 329,800 shares of its common stock in the quarter ended April 1, 2016 from employees in lieu of cash due to the Company in connection with the issuance of shares of common stock related to the settlement of restricted stock units. The Company accepted 2,445 shares of common stock in the quarter ended April 1, 2016 tendered by employees in lieu of cash due to the Company in connection with the exercise of stock options. Such shares of common stock are stated at cost and held as treasury shares to be used for general corporate purposes.

(2) During the first quarter of fiscal 2015, the Company's Board of Directors approved a share repurchase program authorizing up to $1.5 billion in share repurchases of the Company's outstanding common stock. CSC has been implementing this program through purchases made in open market transactions and accelerated share repurchase arrangements in compliance with SEC Rule 10b-18 and Rule 10b5-1, subject to market conditions, and applicable state and federal legal requirements. Share repurchases are funded with available cash. The timing, volume, and nature of share repurchases are at the discretion of management, and may be suspended or discontinued at any time. CSC’s Board of Directors has not established an end date for the repurchase program. The Company repurchased 1,500,000 shares of its common stock in the fiscal quarter ended April 1, 2016 pursuant to the share repurchase program. The approximate amount for which shares may yet be purchased under this program at April 1, 2016 is $716 million.



Properties Leased	Approximate Square Footage	General Usage
India	3,061,000	Co-location
Australia & other Pacific Rim locations	649,000	Co-location
France	263,000	Data Center and Office
Texas	180,000	Co-location
Germany	176,000	Data Center and Office
Illinois	172,000	Data Center and Office
United Kingdom	130,000	Data Center and Office
Washington, D.C. area	130,000	Data Center and Office
Spain	127,000	Delivery Center and Office
Connecticut	125,000	Co-location
Sweden	119,000	Data Center and Office
China	118,000	Co-location
Colombia	106,000	Delivery Center and Office
Denmark	101,000	Delivery Center and Office
Bulgaria	101,000	Delivery Center and Office
Various other U.S. and foreign locations	923,000	Co-location

~~The~~ITEM graph below compares the total cumulative five-year return on CSC’s common stock through our fiscal year ended April 1, 2016 to: (i) the Standard & Poor’s 500 index and (ii) the Standard & Poor’s North American Technology Index(1)3. ~~The~~LEGAL ~~graph assumes an initial investment of $100 on April 1, 2011 and that dividends have been reinvested.~~ PROCEEDINGS

OnSee ~~November~~Note ~~27,~~21 ~~2015,~~- we"Commitments ~~completed the Separation of CSRA, Inc. Our stockholders received one share of CSRA common stock for every one share of our common stock held on the Record Date~~ and aContingencies" ~~Special~~to ~~Dividend of $10.50 per share. The effect of~~ the ~~Separation~~consolidated isfinancial ~~reflected~~statements inunder the ~~cumulative~~caption ~~total~~“Contingencies” ~~return~~for asinformation aregarding ~~reinvested~~legal ~~dividend.~~proceedings ~~The comparisons~~ in ~~the~~which ~~graph~~we are ~~required by the SEC, based upon historical data and are not intended to forecast or be indicative of possible future performance of CSC common stock~~involved.

~~CSC~~ITEM ~~Total~~4. ~~Shareholder~~MINE ~~Return~~SAFETY DISCLOSURES

~~(Period~~Not ~~Ended~~applicable. ~~April 1, 2016)~~

The following table provides indexed returns assuming $100 was invested on April 1, 2011, with annual returns using CSC's fiscal year ending dates.

Indexed Return Table (2011 = 100)
	Return 2012		Return 2013		Return 2014		Return 2015		Return 2016		Compound Annual Growth Rate
CSC common stock	-37.74	%	68.31	%	24.35	%	10.04	%	23.78	%	12.42	%
S&P 500 Index	8.00	%	13.96	%	20.88	%	13.59	%	1.81	%	11.58	%
S&P North American Technology Index(1)	13.91	%	3.80	%	25.45	%	15.66	%	9.38	%	13.41	%

(1) In prior years, we used the North American Technology Services Index, which was discontinued on March 7, 2016. Accordingly, we now use the S&P North American Technology Index as a replacement for the discontinued index.

(d) Equity Compensation Plans

See Item 12, contained in Part III of this Annual Report for information regarding our equity compensation plans.

~~Item~~PART ~~6. Selected Financial Data (Unaudited)~~II

	As of
(Amounts in millions)	April 1, 2016(6)			April 3, 2015(1), (6)			March 28, 2014(1), (6)			March 29, 2013(1), (6)			March 30, 2012(1), (6)
Total assets	$	7,736		$	10,221		$	11,361		$	11,210		$	11,149
Debt
Long-term, net of current maturities	1,934			1,635			2,207			2,498			1,486
Short-term	559			—			444			—			43
Current maturities	151			883			237			234			1,211
Total	2,644			2,518			2,888			2,732			2,740
Stockholders’ equity	2,032			2,965			3,950			3,166			2,839
Net debt-to-total capitalization	31.4		%	8.1		%	6.5		%	11.5		%	29.5		%

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

	Fiscal Year Ended
(Amounts in millions, except per-share amounts)	2016(6)			2015(3), (6)			2014(3), (6)		2013(3), (6)			2012(3), (6)
Revenues	$	7,106		$	8,117		$	8,899	$	9,533		$	9,788
Costs of services (excludes depreciation and amortization and restructuring costs)	5,185			6,159			6,032		7,455			8,124
Selling, general and administrative - SEC settlement related charges(4)	—			197			—		—			—
Restructuring costs	23			256			74		251			139
Debt extinguishment costs(5)	95			—			—		—			—
Goodwill impairment(2)	—			—			—		—			232
Income (loss) from continuing operations, before taxes	10			(671		)	694		(249		)	(1,000		)
Income tax (benefit) expense	(62		)	(464		)	174		(248		)	(231		)
Income (loss) from continuing operations, net of taxes	72			(207		)	520		(1		)	(769		)
Income from discontinued operations, net of taxes	191			224			448		780			171
Net income attributable to CSC common stockholders	251			2			947		760			(613		)
Earnings (loss) per common share:
Basic:
Continuing operations	$	0.51		$	(1.45	)	$	3.52	$	(0.01	)	$	(4.98	)
Discontinued operations	1.31			1.46			2.89		4.92			1.01
	$	1.82		$	0.01		$	6.41	$	4.91		$	(3.97	)
Diluted:
Continuing operations	$	0.50		$	(1.45	)	$	3.45	$	—		$	(4.98	)
Discontinued operations	1.28			1.46			2.83		4.89			1.01
	$	1.78		$	0.01		$	6.28	$	4.89		$	(3.97	)
Cash dividend per common share	$	2.99		$	0.92		$	0.80	$	0.80		$	0.80

Prior to consummation of the Merger, CSC common stock was listed and traded on the New York Stock Exchange under the ticker symbol “CSC.” CSC common stock was suspended from trading on the New York Stock Exchange effective as of the opening of trading on April 3, 2017. The New York Stock Exchange filed a Notification of Removal from Listing and/or Registration on Form 25 to delist CSC common stock and terminate the registration of such shares. CSC filed a Form 15 with the SEC on April 18, 2017 to terminate the registration of the shares of CSC common stock.

~~(1) Fiscal~~The ~~2012~~following ~~through~~table ~~fiscal~~shows ~~2015~~the ~~have~~high ~~been~~and ~~adjusted~~low ~~for~~sales ~~the~~prices ~~adoption~~ of ~~ASU~~CSC ~~2015-17~~common ~~(Topic~~stock ~~740),~~as ~~"Balance~~reported ~~Sheet~~on ~~Classification~~the ofNew ~~Deferred~~York ~~Taxes"~~Stock ~~(see~~Exchange ~~Note~~for ~~1 of~~ the ~~Notes~~quarters ~~to the Consolidated Financial Statements)~~indicated.

(2) Fiscal 2012 goodwill impairment charge related to one reporting unit in the GBS segment.



	Fiscal 2017				Fiscal 2016⁽¹⁾
Fiscal Quarter	High		Low		High		Low
1st	$	52.55	$	32.51	$	71.00	$	63.85
2nd	53.46		45.37		68.57		58.77
3rd	63.34		50.41		71.15		29.51
4th	74.92		57.06		34.49		24.27

(31) ~~Fiscal~~ ~~2012~~Historical ~~through~~market ~~fiscal~~prices ~~2015~~do ~~have~~not ~~been~~reflect ~~adjusted~~any toadjustment ~~present discontinued operations~~ for the ~~divestiture~~impact of the ~~Company's~~Separation, ~~NPS~~which ~~segment~~occurred induring the third quarter of fiscal 2016 ~~(see Note 4 of the Notes to the Consolidated Financial Statements)~~.

~~(4) Fiscal~~CSC's ~~2015~~common ~~charge~~stock ~~related~~is tocurrently ~~the~~owned ~~settlement~~by ofDXC ~~the~~and ~~SEC~~is ~~investigation~~not ~~(see~~listed ~~Note~~for 2trading ofon ~~the~~any ~~Notes~~stock toexchange. ~~the~~As ~~Consolidated~~a ~~Financial~~result, ~~Statements)~~there is no established public trading market for CSC's common stock.

~~(5)~~Cash ~~Fiscal~~dividends ~~2016~~declared ~~debt~~on ~~extinguishment~~CSC's ~~costs~~common ~~related~~stock tofor ~~the~~each ~~Company's~~quarter ~~redemption~~ of ~~all~~fiscal ~~outstanding~~2017 ~~6.50%~~and ~~term~~2016 ~~notes~~are ~~due~~included ~~March~~in ~~2018~~Selected ~~(see~~Quarterly ~~Note~~Financial 13Data of(Unaudited) ~~the~~in ~~Notes~~Part toII, ~~the~~Item ~~Consolidated~~8 ~~Financial~~of ~~Statements)~~this Annual Report.

(6) Certain amounts in fiscal 2012 through fiscal 2016 have been restated as the Company identified certain immaterial errors in previously issued financial statements related to income tax (benefit) expense (see Notes 1 and 24 of the Notes to the consolidated Financial Statements).

~~Item~~The 7.graph ~~Management~~below compares the total cumulative five-year return on our common stock through our fiscal year ended March 31, 2017 to: (i) Standard & Poor’s ~~Discussion~~500 index and ~~Analysis~~(ii) Standard & Poor’s North American Technology Index(1). The graph assumes an initial investment of ~~Financial~~$100 ~~Condition~~on March 29, 2012 and ~~Results~~that ofdividends ~~Operations~~have been reinvested.

On November 27, 2015, we completed the Separation and our stockholders received one share of CSRA common stock for every one share of our common stock held at the close of business on November 18, 2015 (the "Record Date"), as specified under the terms of the Separation agreement. In connection with the Separation, a dividend payment of $10.50 per share was made on the Record Date to our stockholders who received CSRA common stock in the distribution. The effect of the Separation is reflected in the cumulative total return as a reinvested dividend. The comparisons in the graph are required by the SEC and are based upon historical data.

CSC Total Shareholder Return

(Period Ended March 31, 2017)

The following table provides indexed returns assuming $100 was invested on March 29, 2012, with annual returns using our fiscal year-end dates.



Indexed Return Table (2012 = 100)
	Return 2013		Return 2014		Return 2015		Return 2016		Return 2017		Compound Annual Growth Rate
CSC common stock	65.81	%	105.70	%	127.03	%	181.01	%	472.74	%	41.80	%
S&P 500 Index	14.38	%	37.64	%	57.09	%	60.95	%	87.40	%	13.40	%
S&P North American Technology Index⁽¹⁾	3.80	%	30.21	%	50.61	%	66.05	%	108.79	%	15.90	%

⁽¹⁾In prior years, we used the North American Technology Services Index, which was discontinued on March 7, 2016. Accordingly, we now use the S&P North American Technology Index as a replacement for the discontinued index.

CSC meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore filing this report with a reduced disclosure format as permitted by General Instruction I(2).

There were no issuer purchases of equity securities during the period covered by this report.

ITEM 6. SELECTED FINANCIAL DATA (UNAUDITED)



	As of
(in millions)	March 31, 2017			April 1, 2016			April 3, 2015			March 28, 2014			March 29, 2013
Total assets	$	8,663		$	7,736		$	10,221		$	11,361		$	11,210
Debt
Long-term, net of current maturities	$	2,225		$	1,934		$	1,635		$	2,207		$	2,498
Short-term	646			559			—			444			—
Current maturities	92			151			883			237			234
Total Debt	$	2,963		$	2,644		$	2,518		$	2,888		$	2,732
Stockholders’ equity	$	2,166		$	2,032		$	2,965		$	3,950		$	3,166
Net debt-to-total capitalization	33.1		%	31.4		%	8.1		%	6.5		%	11.5		%



	Fiscal Years Ended
(in millions, except per-share amounts)	2017			2016			2015			2014		2013
Revenues	$	7,607		$	7,106		$	8,117		$	8,899	$	9,533
Costs of services (excludes depreciation and amortization and restructuring costs)	5,545			5,185			6,159			6,032		7,455
Selling, general and administrative - SEC settlement related charges⁽¹⁾	—			—			197			—		—
Restructuring costs	238			23			256			74		251
Debt extinguishment costs⁽²⁾	—			95			—			—		—
(Loss) income from continuing operations, before taxes	(174		)	10			(671		)	694		(249		)
Income tax (benefit) expense	(74		)	(62		)	(464		)	174		(248		)
(Loss) income from continuing operations, net of taxes	(100		)	72			(207		)	520		(1		)
Income from discontinued operations, net of taxes	—			191			224			448		780
Net (loss) income attributable to CSC common stockholders	(123		)	251			2			947		760
(Loss) earnings per common share:
Basic:
Continuing operations	$	(0.88	)	$	0.51		$	(1.45	)	$	3.52	$	(0.01	)
Discontinued operations	—			1.31			1.46			2.89		4.92
	$	(0.88	)	$	1.82		$	0.01		$	6.41	$	4.91
Diluted:
Continuing operations	$	(0.88	)	$	0.50		$	(1.45	)	$	3.45	$	—
Discontinued operations	—			1.28			1.46			2.83		4.89
	$	(0.88	)	$	1.78		$	0.01		$	6.28	$	4.89

Cash dividend per common share	$	0.56		$	2.99		$	0.92		$	0.80	$	0.80

⁽¹⁾Fiscal 2015 charge related to the settlement of the SEC investigation (see Note 22 - "Settlement of SEC Investigation" to the consolidated financial statements).

⁽²⁾Fiscal 2016 debt extinguishment costs related to CSC's redemption of all outstanding 6.50% term notes due March 2018 (see Note 12 - "Debt" to the consolidated financial statements).

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The following discussion and analysis provides information management believes is relevant to an assessment and understanding of ~~the~~our consolidated results of operations and financial condition offor ~~the~~fiscal ~~Company~~2017. This discussion should be read in conjunction with ~~the~~our ~~Company's~~consolidated ~~Consolidated~~financial ~~Financial~~statements ~~Statements~~ and associated ~~Notes~~notes ~~as of and for the year ended April 1, 2016,~~ included in Part II, Item 8 of this Annual Report.

The three primary objectives of this discussion are to:

1. provide a narrative on the ~~Consolidated~~consolidated ~~Financial~~financial ~~Statements~~statements, as presented through the eyes of management;

2. enhance the disclosures in the ~~Consolidated~~consolidated ~~Financial~~financial ~~Statements~~statements and related ~~Notes~~notes by providing context ~~within~~to ~~which~~analyze the ~~Consolidated~~consolidated ~~Financial~~financial ~~Statements should be analyzed~~statements; and


3.	provide information to assist the reader in ascertaining the predictive value of the reported financial results.

To achieve these objectives, management's discussion and analysis is presented with the following sections:

Overview - includes a description of ~~the~~our ~~Company's~~ business, and how it earns ~~revenue~~revenues and generates cash, as well as a discussion of economic and industry factors, key business drivers, and key performance indicators. ~~and fiscal 2016~~

~~highlights~~Results of Operations - discusses year-over-year changes to operating results for fiscal 2015 through fiscal 2017, describing the factors affecting revenues on a consolidated and reportable segment basis, including new contracts, acquisitions and divestitures and currency impacts; describes the factors affecting changes in our major cost and expense categories and discusses our non-GAAP financial measures.

~~Results~~Liquidity ofand ~~Operations~~Capital Resources - discusses ~~year-over-year~~causes of changes toin ~~operating~~cash ~~results~~flows ~~for fiscal 2014 through fiscal 2016, describing the factors affecting revenue on a consolidated~~ and ~~reportable~~describes ~~segment~~our ~~basis,~~liquidity ~~including new contracts, acquisitions~~ and ~~divestitures~~available ~~and~~capital ~~currency impacts, and also describing the factors affecting changes in the Company's major cost and expense categories~~resources.

~~Financial Condition~~ Off-Balance ~~discusses~~Sheet ~~causes~~Arrangements of- ~~changes~~details inour ~~cash flows, describes the Company's liquidity and available capital resources, any~~ off -balance sheet arrangements~~, outstanding contractual obligations and dividends~~.

~~Critical~~Contractual ~~Accounting~~Obligations ~~Estimates~~ - ~~discusses~~details ~~the~~our ~~significant~~outstanding ~~accounting~~contractual ~~policies that require critical judgments and estimates~~obligations.

~~Overview~~Critical Accounting Estimates - discusses our accounting estimates based on management judgments and assumptions which could have a material impact on our financial statements.

CSC is a global provider of IT and professional services and solutions. The Company's mission is to enable superior returns on its clients' technology investments through best-in-class industry solutions, domain expertise and global scale.

The Company’s reportable segments are as follows:

• Global Business Services (GBS) – GBS provides innovative technology solutions including consulting, applications services, and software, which address key business challenges within the customer’s industry. GBS strives to help clients understand and exploit industry trends of IT modernization and virtualization of the IT portfolio (hardware, software, networking, storage and computing assets). GBS has four primary growth areas: end-to-end applications services, consulting services, big data services, and industry aligned next-generation software and solutions. Applications services optimize and modernize clients' business and technical environments, enabling clients to capitalize on emerging services such as cloud, mobility, and big data within new commercial models such as the "as a Service" and digital economies. The consulting services business helps organizations innovate, transform, and create sustainable competitive advantage through a combination of industry, business process, technology, systems integration and change management expertise. The industry aligned next-generation software and solutions growth is focused in the insurance, banking, healthcare and life sciences, manufacturing and other diversified industries. Activities are primarily related to vertical alignment of software solutions and process-based intellectual property that power mission-critical transaction engines. Key competitive differentiators for GBS include its global scale, solution objectivity, depth of industry expertise, strong partnerships, vendor and product independence and end-to-end solutions and capabilities. Changing business issues such as globalization, fast-developing economies, government regulation, and growing concerns around risk, security, and compliance drive demand for these GBS offerings.

• Global Infrastructure Services (GIS) – GIS provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, compute and managed storage solutions to commercial clients globally. GIS also delivers CSC's next-generation cloud offerings, including Infrastructure as a Service (IaaS), private cloud solutions, CloudMail and Storage as a Service. GIS provides a portfolio of standard offerings that have predictable outcomes and measurable results while reducing business risk and operational costs for clients. To provide clients with differentiated offerings, GIS maintains a select number of key alliance partners to make investments in developing unique offerings and go-to-market strategies. This collaboration helps CSC determine the best technology, road map and opportunities to differentiate solutions, expand market reach, augment capabilities, and jointly deliver impactful solutions. GIS seeks to capitalize on the emerging market trend with a rebundled IT portfolio of virtualized infrastructure.

On November 27, 2015, CSC completed the separation of CSRA through a one-for-one pro rata distribution of all shares of CSRA common stock to CSC stockholders as of the Record Date. CSRA's assets and business primarily consist of those that the Company previously reported as its North American Public Sector (NPS) segment. Beginning in the third quarter of fiscal 2016, CSRA's financial results for periods prior to the distribution have been reflected in our Consolidated Statements of Operations, retrospectively, as income from discontinued operations, net of taxes. Additionally, the related assets and liabilities associated with the discontinued operations in the prior year are classified as assets and liabilities of discontinued operations in our Consolidated Balance Sheets. Refer to Note 4 of the Notes to the Consolidated Financial Statements for additional information regarding the separation of CSRA and Note 19 of the Notes to our Consolidated Financial Statements for further information regarding CSC's reportable segments. Unless otherwise stated, financial results herein reflect continuing operations.

Economic and Industry Factors

~~The~~Management ~~Company's~~monitors ~~results~~industry offactors ~~operations~~including ~~are~~relative ~~generally~~market ~~impacted~~shares, bygrowth ~~economic conditions~~rates, ~~including~~billing ~~macroeconomic conditions. CSC monitors macroeconomic conditions~~rates, ~~credit~~staff ~~market~~utilization ~~conditions,~~rates and ~~levels~~margins ofas ~~business~~well ~~confidence,~~as ~~and~~macroeconomic ~~assesses~~indicators ~~their~~such ~~potential~~as ~~impact~~interest onrates, ~~its~~inflation ~~customers~~rates and ~~its~~foreign ~~own~~currency ~~business~~rates. AWe ~~severe~~are ~~and/or~~seeing ~~prolonged economic downturn could adversely affect~~ the ~~financial~~IT ~~condition~~services ~~and~~industry ~~the~~being ~~levels~~transformed ofby ~~business~~a ~~activities~~shift in ~~the~~customer ~~industries and geographies in which CSC operates. This may reduce~~ demand ~~for~~towards ~~CSC's~~digital services orand ~~depress~~solutions. ~~pricing~~The ofability ~~those~~to ~~services~~identify and ~~have~~capitalize ~~a material adverse effect~~ on ~~its~~these ~~new~~market ~~contract bookings~~ and ~~results~~technological ofchanges ~~operations. Particularly in light of recent economic uncertainty, CSC continues~~ to ~~monitor~~deliver ~~its~~industry-leading ~~costs~~service ~~closely~~offerings inis ~~order~~a tokey ~~respond~~driver ~~to changing conditions and to manage any impact to its results~~ of ~~operations~~our performance.

~~The~~Over ~~Company's~~the ~~results~~past offive ~~operations~~years ~~are~~we ~~also~~have ~~affected~~made bykey ~~levels~~acquisitions ofin ~~business~~hybrid ~~activity~~cloud ~~and~~solutions, ~~rates~~digital ofenterprise ~~change~~applications inand ~~the~~insurance ~~industries~~and ithealthcare ~~serves,~~ as well as bydivested ~~the~~non-core ~~pace~~businesses ofto ~~technological~~optimize ~~change~~our ~~and~~service portfolio. We have responded to the ~~type~~industry trends we identified by streamlining our service offerings and ~~level~~implementing a strategy of ~~technology~~selling ~~spending~~defined bysolutions ~~its~~that ~~clients~~require less customization. ~~The~~Such ~~ability~~solutions toinclude ~~identify~~our ~~and~~portfolio ~~capitalize~~of oncloud-based ~~these~~IaaS ~~markets~~offerings, ~~and~~managed ~~technological~~applications ~~changes~~services ~~early~~and ina ~~their~~range ~~cycles~~of isdiscrete aofferings ~~key~~for ~~driver~~computing, ofstorage, ~~CSC's~~mobility ~~performance~~and networking services.

Revenues are driven by the Company's ability to secure new contracts and to deliver solutions and services that add value to its clients. CSC's ability to add value to clients, and therefore generate revenues, depends in part on its ability to deliver market-leading service offerings and to deploy skilled teams of professionals quickly and on a global basis. 22

The GBS and GIS segment markets are affected by various economic and industry factors. The economic environment in the regions CSC serves will impact customers' decisions for discretionary spending on IT projects. CSC is in a highly competitive industry which exerts downward pressure on pricing and requires companies to continually seek ways to differentiate themselves through several factors, including service offerings and flexibility. Management monitors industry factors including relative market shares, growth rates, billing rates, staff utilization rates and margins as well as macroeconomic indicators such as interest rates, inflation rates and foreign currency rates.

Outsourcing contracts are typically long-term relationships. Long-term, complex outsourcing contracts, including their consulting components, require ongoing review of the terms and scope of work in order to meet clients' evolving business needs and performance expectations.

More recently, the Company has rationalized its service offerings and implemented a strategy of selling defined solutions that require less customization and benefit from leveraged delivery at scale. Such solutions include our portfolio of Cloud-based IaaS offerings, managed applications services and a range of discrete offerings for computing, storage, mobility and networking services.

Business Drivers

~~Revenue~~Revenues in both segments isare generated by providing services on a variety of contract types lasting from less than six months to ten years or more. Factors affecting ~~revenue~~revenues include ~~the~~our ~~Company's~~ ability to successfully:

• bid on and win new contract awards,;

• satisfy existing customers and obtain add-on business and win contract recompetes,;

• compete onwith respect to services offered, delivery models offered, technical ability and innovation, quality, flexibility, global reach, experience, and results created,; and


•	identify and integrate acquisitions and leverage them to generate new revenues.

Earnings are impacted by the above revenue factors and, inour ~~addition, the Company's~~ ability to:

• ~~control~~integrate ~~costs,~~acquisitions ~~particularly labor costs, subcontractor expenses~~ and ~~overhead~~eliminate ~~costs~~redundant ~~including healthcare, pension and general and administrative~~ costs,;

• ~~anticipate~~develop ~~talent~~offshore ~~needs~~capabilities toand ~~avoid~~migrate ~~staff~~compatible ~~shortages~~service orofferings ~~excesses,~~offshore;

• ~~accurately~~control ~~estimate~~costs, ~~various~~particularly ~~factors~~labor ~~incorporated~~costs, insubcontractor ~~contract~~expenses ~~bids~~ and ~~proposals~~overhead costs including healthcare, pension and general and administrative costs;

• ~~develop~~anticipate ~~offshore~~talent ~~capabilities~~needs ~~and~~to ~~migrate~~avoid ~~compatible~~staff ~~service~~shortages ~~offerings~~or ~~offshore, and~~excesses;

• ~~manage~~accurately ~~foreign~~estimate ~~currency~~various ~~fluctuations~~factors ~~related~~incorporated toin ~~international~~contract ~~operations.~~bids and proposals; and

~~Cash~~• ~~flows~~effectively ~~are~~manage ~~affected~~foreign bycurrency ~~the~~fluctuations ~~above~~related ~~earnings~~to ~~factors~~international ~~and,~~operations inthrough ~~addition,~~the byuse ~~the~~of ~~following~~short-term ~~factors:~~foreign currency forward and option contracts.

•Cash ~~timely~~flows ~~management~~are ofaffected ~~receivables~~by the above drivers and ~~payables,~~the following factors:

• ~~investment~~the ~~opportunities~~ability ~~available, particularly related~~ to ~~business~~efficiently ~~acquisitions,~~manage ~~dispositions~~capital resources and ~~large outsourcing contracts,~~expenditures;

• ~~tax~~timely ~~obligations,~~management of receivables and payables;

• ~~the~~investment ~~ability~~opportunities toavailable, ~~efficiently~~particularly ~~manage~~related ~~capital~~to ~~deployed~~business ~~for~~acquisitions ~~outsourcing~~and ~~contracts~~implementations, ~~software,~~dispositions and ~~property,~~large ~~plant~~outsourcing ~~and~~contracts; ~~equipment.~~and


•	tax obligations.

Key Performance Indicators

~~The~~We ~~Company~~manage ~~manages~~ and ~~assesses~~assess the performance of ~~its~~our business through various ~~means, with the primary~~ financial measures, toprimarily ~~include~~ new contract wins, ~~revenue,~~revenues ~~operating margins,~~ and ~~free~~consolidated ~~cash~~segment ~~flow~~operating margins.

New contract wins: In addition to being a primary driver of future ~~revenue~~revenues, new contract wins also provide management an assessment of ~~the~~our ~~Company's~~ ability to compete. The total level of wins tends to fluctuate from year to year depending on the timing of new or recompeted contracts, as well as numerous external factors.

~~Revenue~~Revenues: ~~Revenue~~ isAmounts ~~comprised~~recognized ofas ~~revenue~~earned ~~generated~~ from contracts won in prior periods, ~~known as backlog,~~ and additional work secured in the current year. Year-over-year revenues tend to vary less than new contract wins, and reflect performance on both new and existing contracts. Foreign currency fluctuations also impact ~~revenue~~revenues.

~~Operating~~Consolidated segment operating margins: ~~Operating~~ ~~margins~~Reflect ~~reflect the Company's~~ performance on ~~its~~our contracts and ability to control its costs. While the ratios of various cost elements as a percentage of ~~revenue~~revenues can shift as a result of changes in the mix of businesses with different cost profiles, a focus on maintaining and improving overall margins leads to improved efficiencies and profitability. Although the majority of ~~the~~our ~~Company's~~ costs are denominated in the same currency as revenues, increased use of offshore support also exposes ~~CSC~~us to additional margin fluctuations.

Free cash flow: Primary drivers of the Company's free cash flow are earnings provided by the Company's operations and the use of capital to generate those earnings. Also contributing to short-term cash flow results are movements in current asset and liability balances.

Fiscal 2016 Highlights

The key operating results for fiscal 2016 include:

•Revenues decreased $1.0 billion, or 12.5%, to $7.1 billion compared to fiscal 2015. On a constant currency

basis(1), revenues decreased $544 million, or 6.7%.

• Operating income(2) was $515 million as compared to $459 million in fiscal 2015. Operating income margins increased to 7.2% from 5.7% in fiscal 2015. Operating income was beneficially impacted by a year-over-year reduction in restructuring costs of $233 million during fiscal 2016, which more than offset the adverse impact of a reduction in revenues which exceeded the decrease in costs of services. Restructuring costs were $23 million in fiscal 2016, as compared to $256 million in fiscal 2015.

• Earnings (loss) before interest and taxes(3) (EBIT) increased to $95 million as compared to $(565) million in fiscal 2015. The EBIT margin increased to 1.3% from (7.0)% in fiscal 2015, largely as a result of the year-over-year decrease in pension and OPEB actuarial and settlement losses of $485 million, and non-recurrence of the fiscal 2015 SEC settlement related charges of $200 million.

(1) Selected references are made on a “constant currency basis” so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates, thereby providing comparisons of operating performance from period to period. Financial results on a “constant currency basis” are non-U.S. Generally Accepted Accounting Principle (GAAP) measures calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This approach is used for all results where the functional currency is not the U.S. dollar.

(2) Operating income is a non-GAAP measure used by management to assess performance of the Company's segments and on a consolidated basis. CSC presents this non-GAAP measure because management believes it assists investors by providing another measure of the Company's profitability. The Company’s definition of such measure may differ from that used by other companies. CSC defines operating income as revenue less costs of services, depreciation and amortization expense, restructuring costs and segment selling, general and administrative (SG&A) expense. Operating income, as defined by CSC, excludes corporate G&A, actuarial and settlement charges related to CSC's pension and other postemployment benefit (OPEB) plans, SEC settlement related charges, separation costs, and debt extinguishment costs. Operating margin is defined as operating income as a percentage of revenue. Management compensates for the limitations of this non-GAAP measure by also reviewing income (loss) from continuing operations before taxes.

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

	Twelve Months Ended
(Amounts in millions)	April 1, 2016			April 3, 2015			March 28, 2014
Operating income	$	515		$	459		$	852
Corporate G&A	(216		)	(230		)	(245		)
Pension & OPEB actuarial (losses) gains	(99		)	(584		)	217
SEC settlement related charges and other	—			(200		)	—
Separation costs	(19		)	—			—
Interest expense	(123		)	(126		)	(128		)
Interest income	38			20			16
Debt extinguishment costs	(95		)	—			—
Other income (expense), net	9			(10		)	(18		)
Income (loss) from continuing operations before taxes	$	10		$	(671	)	$	694

(3) EBIT is a non-GAAP measure that provides useful information to investors regarding the Company's results of operations as it provides another measure of the Company's profitability, and is considered an important measure by financial analysts covering CSC and its peers. The Company’s definition of such measure may differ from that used by other companies. CSC defines EBIT as net income less income from discontinued operations, interest expense, interest income and income tax (benefit) expense. EBIT margin is defined as EBIT as a percentage of revenue. A reconciliation of EBIT to net income is as follows:

	Twelve Months Ended
(Amounts in millions)	April 1, 2016			April 3, 2015			March 28, 2014
EBIT	$	95		$	(565	)	$	806
Interest expense	(123		)	(126		)	(128		)
Interest income	38			20			16
Income tax benefit (expense)	62			464			(174		)
Income (loss) from continuing operations	72			(207		)	520
Income from discontinued operations	191			224			448
Net income	263			17			968

• Income (loss) from continuing operations before taxes was $10 million, compared to $(671) million in fiscal 2015, an increase of $681 million. The increase in income from continuing operations was primarily due to a decrease in pension and OPEB actuarial and settlement losses of $485 million, and the SEC settlement related charges of $200 million which was unique to fiscal 2015.

• Non-GAAP income from continuing operations before taxes(4) was $425 million, compared to $407 million in fiscal 2015.

• Income from discontinued operations, net of taxes was $191 million, compared to $224 million in fiscal 2015.

Net income (loss) attributable to CSC common stockholders was $251 million, compared to $2 million in fiscal 2015.

Non-GAAP net income attributable to CSC common shareholders(4) was $542 million, compared to $535 million in fiscal 2015.

• Diluted earnings (loss) per share (EPS) from continuing operations was $0.50 as compared to $(1.45) in the prior year. Diluted EPS from discontinued operations was $1.28 as compared to $1.46 in the prior year.

• Non-GAAP diluted EPS from continuing operations(4) was $2.57 as compared to $2.24 in the prior year.

• The Company recorded debt extinguishment costs of $95 million resulting from the early redemption of certain term notes.

(4) Non-GAAP results are financial measures calculated by excluding certain significant items, which management believes are not indicative of the Company's operating performance. CSC presents these non-GAAP results because management believes they assist investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's core operating performance. Adjustments to results of operations include:

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

• U.S. Pension and OPEB - Reflects the impact of certain U.S. pension and OPEB plans historically included in CSC's financial results that have been transferred to CSRA as part of the Separation.

• Separation, restructuring, and other transaction costs - Reflects non-recurring costs related to CSC's separation of CSRA and infrequently occurring costs related to CSC's (1) certain restructuring related to workforce optimization and real estate charges, including the fiscal 2015 special restructuring, (2) previously announced acquisitions and (3) process remediation related to fiscal 2016 software implementation.

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

• Debt extinguishment costs - Reflects costs related to the fiscal 2016 redemption of all outstanding 6.50% term notes due March 2018.

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

• Reversal of contingent consideration - Reflects fiscal 2014 reversal of contingent consideration related to the acquisition of ServiceMesh.

• Tax valuation allowance & adjustments - Reflects the adoption of ASU 2016-09 as described in Note 1 of the Notes to the Consolidated Financial Statements, adjustments to tax valuation allowances in certain jurisdictions and the application of a 20% tax rate, for the first and second quarters of fiscal 2016, fiscal 2015, and fiscal 2014, which is at the low end of the prospective targeted effective tax rate range of 20% to 25% and effectively excludes the impact of discrete tax adjustments for those periods.

A reconciliation of non-GAAP results to reported results is as follows:

	Twelve Months Ended April 1, 2016
(Amounts in millions, except per-share amounts)	As reported			Certain CSRA overhead costs			U.S. Pension & OPEB		Separation, restructuring & other transaction costs			Pension & OPEB actuarial & settlement losses			SEC settlement related items			Debt extinguishment costs			Tax valuation allowance & adjustments			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	5,185		$	(41	)	$	32	$	(5	)	$	(100	)	$	—		$	—		$	—		$	5,071
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	$	1,040		$	(47	)	$	6	$	(55	)	$	1		$	(5	)	$	—		$	—		$	940
Income (loss) from continuing operations, before taxes	$	10		$	(88	)	$	38	$	(161	)	$	(99	)	$	(5	)	$	(100	)	$	—		$	425
Income tax (benefit) expense	$	(62	)	$	(34	)	$	15	$	(41	)	$	(18	)	$	(2	)	$	(40	)	$	(4	)	$	62
Income (loss) from continuing operations	$	72		$	(54	)	$	23	$	(120	)	$	(81	)	$	(3	)	$	(60	)	$	4		$	363
Net income	$	263		$	(54	)	$	23	$	(120	)	$	(81	)	$	(3	)	$	(60	)	$	4		$	554
Less: net income attributable to noncontrolling interest, net of tax	$	12		$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	12
Net income attributable to CSC common stockholders	$	251		$	(54	)	$	23	$	(120	)	$	(81	)	$	(3	)	$	(60	)	$	4		$	542
Effective Tax Rate	(620.0		)%																					14.6		%
Basic EPS from continuing operations	$	0.51		$	(0.39	)	$	0.17	$	(0.87	)	$	(0.59	)	$	(0.02	)	$	(0.43	)	$	0.03		$	2.63
Diluted EPS from continuing operations	$	0.50		$	(0.38	)	$	0.16	$	(0.85	)	$	(0.57	)	$	(0.02	)	$	(0.42	)	$	0.03		$	2.57
Weighted average common shares outstanding for:
Basic EPS	138.281			138.281			138.281		138.281			138.281			138.281			138.281			138.281			138.281
Diluted EPS	141.329			141.329			141.329		141.329			141.329			141.329			141.329			141.329			141.329

* The net periodic pension cost within income from continuing operations includes $49 million of actual return on plan assets, whereas the net periodic pension cost within non-GAAP income from continuing operations includes $179 million of expected long-term return on pension assets of defined benefit plans subject to interim remeasurement.

	Twelve Months Ended April 3, 2015
(Amounts in millions, except per-share amounts)	As reported			Certain CSRA overhead costs			U.S. Pension & OPEB		Pension & OPEB actuarial & settlement losses			SEC settlement related charges			Special restructuring costs			Tax valuation allowance & adjustments			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	6,159		$	(32	)	$	43	$	(525	)	$	—		$	—		$	—		$	5,645
Selling, general and administrative (excludes depreciation and amortization, SEC settlement related charges and restructuring costs)	$	1,220		$	(72	)	$	8	$	(59	)	$	(3	)	$	—		$	—		$	1,094
(Loss) income from continuing operations, before taxes	$	(671	)	$	(104	)	$	51	$	(584	)	$	(200	)	$	(241	)	$	—		$	407
Income tax (benefit) expense	$	(464	)	$	(40	)	$	20	$	(135	)	$	(2	)	$	(50	)	$	(338	)	$	81
(Loss) income from continuing operations	$	(207	)	$	(64	)	$	31	$	(449	)	$	(198	)	$	(191	)	$	338		$	326
Net income (loss)	$	17		$	(64	)	$	31	$	(449	)	$	(198	)	$	(191	)	$	338		$	550
Less: net income attributable to noncontrolling interest, net of tax	$	15		$	—		$	—	$	—		$	—		$	—		$	—		$	15
Net income (loss) attributable to CSC common stockholders	$	2		$	(64	)	$	31	$	(449	)	$	(198	)	$	(191	)	$	338		$	535
Effective Tax Rate	69.2		%																		19.9		%
Basic EPS from continuing operations	$	(1.45	)	$	(0.45	)	$	0.22	$	(3.15	)	$	(1.39	)	$	(1.34	)	$	2.37		$	2.29
Diluted EPS from continuing operations	$	(1.45	)	$	(0.44	)	$	0.21	$	(3.08	)	$	(1.36	)	$	(1.31	)	$	2.32		$	2.24
Weighted average common shares outstanding for:
Basic EPS	142.557			142.557			142.557		142.557			142.557			142.557			142.557			142.557
Diluted EPS	142.557			145.780			145.780		145.780			145.780			145.780			145.780			145.780

* The net periodic pension cost within income from continuing operations includes $298 million of actual return on plan assets, whereas the net periodic pension cost within non-GAAP income from continuing operations includes $223 million of expected long-term return on pension assets of defined benefit plans subject to interim remeasurement.

	Twelve Months Ended March 28, 2014
(Amounts in millions, except per-share amounts)	As reported			Certain CSRA overhead costs			U.S. Pension & OPEB		Pension & OPEB actuarial & settlement gains		Reversal of contingent consideration		Tax adjustment			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	6,032		$	(36	)	$	26	$	170	$	—	$	—		$	6,192
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	$	1,099		$	(65	)	$	4	$	47	$	21	$	—		$	1,106
Income (loss) from continuing operations, before taxes	$	694		$	(101	)	$	30	$	217	$	21	$	—		$	527
Income tax expense (benefit)	$	174		$	(40	)	$	12	$	68	$	6	$	23		$	105
Income (loss) from continuing operations	$	520		$	(61	)	$	18	$	149	$	15	$	(23	)	$	422
Net income (loss)	$	968		$	(61	)	$	18	$	149	$	15	$	(23	)	$	870
Less: net income attributable to noncontrolling interest, net of tax	$	21		$	—		$	—	$	—	$	—	$	—		$	21
Net income (loss) attributable to CSC common stockholders	$	947		$	(61	)	$	18	$	149	$	15	$	(23	)	$	849
Effective Tax Rate	25.1		%													19.9		%
Basic EPS from continuing operations	$	3.52		$	(0.41	)	$	0.12	$	1.01	$	0.10	$	(0.16	)	$	2.86
Diluted EPS from continuing operations	$	3.45		$	(0.40	)	$	0.12	$	0.99	$	0.10	$	(0.15	)	$	2.79
Weighted average common shares outstanding for:
Basic EPS	147.647			147.647			147.647		147.647		147.647		147.647			147.647
Diluted EPS	150.761			150.761			150.761		150.761		150.761		150.761			150.761

* The net periodic pension cost within income from continuing operations includes $242 million of actual return on plan assets, whereas the net periodic pension cost within non-GAAP income from continuing operations includes $186 million of expected long-term return on pension assets of defined benefit plans subject to interim remeasurement.

• The Company announced contract awards(5) of $8.6 billion, including GBS segment awards of $4.3 billion and GIS segment awards of $4.3 billion.

• Days Sales Outstanding (DSO)(6) was 83 days at April 1, 2016, an increase from 75 days at April 3, 2015.

• Net debt-to-total capitalization ratio(7) was 31.4% at the end of fiscal 2016, an increase from 8.1% at the end of fiscal 2015.

• Cash provided by operating activities was $802 million, as compared to $1.5 billion during fiscal 2015. Cash used in investing activities was $1.2 billion, as compared to $536 million during fiscal 2015. Cash used in financing activities was $485 million, as compared to $1.1 billion during fiscal 2015.

• Free cash flow(8) was $319 million, as compared to $757 million in fiscal 2015.

(5) Business awards for GBS & GIS are estimated at the time of contract signing based on then existing projections of service volumes and currency exchange rates, and include approved option years. Segment awards may not add to total awards due to rounding.

(6) DSO is calculated as total receivables at the fiscal period end divided by revenue-per-day. Revenue-per-day equals total revenues divided by the number of days in the fiscal period. Total receivables include unbilled receivables but excludes income tax receivables and long-term receivables.

(7) Net debt and Net debt-to-total capitalization are non-GAAP measures used by management to assess the Company's ability to service its debts using only its cash and cash equivalents. CSC presents these non-GAAP measures to assist investors in analyzing the Company's capital structure in a more comprehensive way compared to gross debt based ratios alone. Net debt-to-total capitalization ratio is defined as total current and long-term debt less total cash and cash equivalents divided by the sum of total debt and equity, including noncontrolling interest.

(8) Free cash flow is a non-GAAP measure and the Company's definition of such measure may differ from that used by other companies. CSC defines free cash flow as equal to the sum of (1) operating cash flows, (2) investing cash flows, excluding business acquisitions, dispositions and investments (including short-term investments and purchase or sale of available for sale securities) and (3) payments on capital leases and other long-term asset financings. Free cash flow is further adjusted for certain non-recurring cash flow items, such as (i) payments related to separation and transaction costs related to fiscal 2016 acquisitions, (ii) payments related to certain restructuring, (iii) SEC settlement related payments, (iv) benefit from the sale of accounts receivables and (v) certain CSRA overhead costs.

CSC’s free cash flow measure does not distinguish operating cash flows from investing cash flows as they are required to be presented in accordance with GAAP, and should not be considered a substitute for operating and investing cash flows as determined in accordance with GAAP. Free cash flow is one of the factors CSC management uses in reviewing the overall performance of the business. Management compensates for the limitations of this non-GAAP measure by also reviewing the GAAP measures of operating, investing and financing cash flows. CSC's free cash flow measure includes CSRA through the date of Separation. A reconciliation of free cash flow to the most directly comparable GAAP financial measure is presented below:

	Twelve Months Ended
(Amounts in millions)	April 1, 2016			April 3, 2015			March 28, 2014
Net cash provided by operating activities(a)	$	802		$	1,473		$	1,577
Net cash used in investing activities(b)	(1,126		)	(536		)	(566		)
Acquisitions, net of cash acquired	554			49			190
Business dispositions	(37		)	13			(248		)
Short-term investments	70			—			(5		)
Payments on capital leases and other long-term asset financings	(166		)	(242		)	(242		)
Payments on separation and other transaction costs	79			—			—
Payments on restructuring costs	173			—			—
SEC settlement-related payments	187			—			—
Sale of NPS accounts receivables	(239		)	—			—
Certain CSRA overhead costs	22			—			—
Free cash flow	$	319		$	757		$	706

(a) Amounts have been adjusted as a result of the adoption of ASU 2016-09 (see Note 1 of the Notes to the Consolidated Financial Statements).

(b) Excludes capital expenditures financed through CSC Finco.

Results of Operations

28We report our results based on a fiscal year convention that comprises four thirteen-week quarters. Every fifth year includes an additional week in the first three months of the fiscal year to prevent the fiscal year from moving from an approximate end of March date. Fiscal 2015 was the last year which included the additional week.

During fiscal 2016, we completed the Separation of NPS and merger of NPS with SRA International, Inc. to form a new publicly traded company, CSRA Inc. As a result of the Separation, the consolidated statements of operations and related financial information reflect NPS's operations as discontinued operations for fiscal 2016 and 2015.

The following table provides an analysis for select line items of the consolidated statements of operations:



	Fiscal Years Ended
(In millions, except per-share amounts)	March 31, 2017			April 1, 2016			April 3, 2015

Revenues	$	7,607		$	7,106		$	8,117

(Loss) income from continuing operations, before taxes	(174		)	10			(671		)
Income tax benefit	(74		)	(62		)	(464		)
(Loss) income from continuing operations	(100		)	72			(207		)
Income from discontinued operations, net of taxes	—			191			224
Net (loss) income	$	(100	)	$	263		$	17

Diluted (loss) earnings per share:
Continuing operations	$	(0.88	)	$	0.50		$	(1.45	)
Discontinued operations	—			1.28			1.46
	$	(0.88	)	$	1.78		$	0.01

Revenues

Revenues ~~for~~by ~~the~~segment ~~GBS~~are ~~and~~shown ~~GIS~~in ~~segments~~the ~~for~~tables ~~fiscal 2016, 2015, and 2014 were as follows~~below:

	Twelve Months Ended
	Fiscal Years Ended
	April 1, 2016				April 3, 2015				March 28, 2014
	March 31, 2017				April 1, 2016				April 3, 2015
(Amounts in millions)	Amount		PercentChange		Amount		Percent Change		Amount
(in millions)	Amount		PercentChange		Amount		Percent Change		Amount
GBS	$	34,~~637~~173	(914.97	)%	$	43,~~036~~637	(69.69	)%	$	4,~~321~~036
GIS	3,~~469~~434		(151.0	)%	43,~~081~~469		(1015.90	)%	4,~~578~~081
Total Revenue	$	7,106	(12.5	)%	$	8,117	(8.8	)%	$	8,899
Total Revenues	$	7,607	7.1	%	$	7,106	(12.5	)%	$	8,117

Our fiscal 2017 revenues increased $501 million as compared to fiscal 2016. The ~~major~~increase ~~factors~~was ~~impacting~~due ~~the~~to ~~percent~~growth ~~change~~in our GBS segment and revenues from our recent acquisitions. The increase in fiscal 2017 revenues ~~are~~was aspartially ~~follows:~~offset by a decrease in revenues of $317 million caused by contracts that concluded or were renewed at lower rates and a $221 million adverse impact of foreign currency movement due to the strengthening of the U.S. dollar against the British pound.

Twelve Months EndedApril 1, 2016 vs. April 3, 2015	Acquisitions		ApproximateImpact ofCurrencyFluctuations		Organic Growth (Decline)		Total
GBS	1.6	%	(6.1	)%	(5.4	)%	(9.9	)%
GIS	0.9	%	(5.4	)%	(10.5	)%	(15.0	)%
Cumulative Net Percentage	1.2	%	(5.8	)%	(7.9	)%	(12.5	)%

Our fiscal 2016 revenues decreased $1.0 billion as compared to fiscal 2015. This decrease was primarily due to a reduction in revenues caused by contract terminations, conclusions and contractual price reductions of $644 million and the adverse impact of foreign currency movement of $467 million, partially offset by a $100 million increase due to acquisitions.

Twelve Months EndedApril 3, 2015 vs. March 28, 2014	Acquisitions		ApproximateImpact ofCurrency Fluctuations		Organic Growth (Decline)		Total
GBS	—	%	(1.9	)%	(4.7	)%	(6.6	)%
GIS	0.5	%	(1.5	)%	(9.9	)%	(10.9	)%
Cumulative Net Percentage	0.3	%	(1.7	)%	(7.4	)%	(8.8	)%

As a global company, historically, more than half of our revenues have been earned in currencies other than the U.S. dollar. As a result, the changes in revenues denominated in currencies other than the U.S. dollar from period to period are impacted and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. As such, the following discussion contains financial results on a constant currency basis eliminating the impact of fluctuations in foreign currency rates, thereby providing meaningful period over period comparisons of operating performance. Financial results on a constant currency basis are non-GAAP measures calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This information is consistent with how management views our revenues and evaluates our operating performance and trends.

The Company's fiscal 2016 revenue decreased $1.0 billion as compared to fiscal 2015. This decrease was primarily due to a reduction in organic revenue of $644 million and the adverse impact of foreign currency movement of $467 million, partially offset by $100 million of revenue from acquisitions. The fiscal 2016 revenue reduction was due to revenue reductions from contract terminations and conclusions and contractual price reductions more than offsetting revenues from new business and acquisitions. 24

The ~~Company's~~tables ~~fiscal~~below ~~2015~~indicate ~~revenue~~the ~~decreased~~percentage ~~$782~~change ~~million as compared to fiscal 2014. This decrease was primarily due to a reduction~~ in organic revenue of $660 million and the adverse impact of foreign currency movement of $148 million, partially offset by $26 million of revenue from acquisitions. The fiscal 2015 revenue reduction was due to revenues ~~from new business not keeping pace with revenue reductions~~ due to ~~contract~~changes ~~completion~~in ~~and~~exchange ~~termination and contractual price reductions.~~rates:



Fiscal Years Ended March 31, 2017 vs. April 1, 2016	Increase at Constant Currency		Approximate Impact of Currency Fluctuations		Total
GBS	18.0	%	(3.3	)%	14.7	%
GIS	2.0	%	(3.0	)%	(1.0	)%
Cumulative Net Percentage	10.2	%	(3.1	)%	7.1	%



Fiscal Years Ended April 1, 2016 vs. April 3, 2015	Decrease at Constant Currency		Approximate Impact of Currency Fluctuations		Total
GBS	(3.8	)%	(6.1	)%	(9.9	)%
GIS	(9.6	)%	(5.4	)%	(15.0	)%
Cumulative Net Percentage	(6.7	)%	(5.8	)%	(12.5	)%

Fiscal 2017 compared with fiscal 2016

The discussion below explains the reasons for revenue changes other than as a result of foreign currency fluctuations.

Global Business Services

~~Fiscal~~The $654 million, or 18.0%, constant currency increase for fiscal 2017 as compared to fiscal 2016 was driven by growth in next generation business processing services offerings, as well as contributions from our recent acquisitions, primarily within our Digital Applications business and our IS&S business where we continue to prioritize the development of our digital capabilities. Digital Applications, our consulting and applications business, increased over 38% in constant currency and IS&S increased over 26% in constant currency when compared to prior fiscal year. The increase was largely due to revenues from our recent acquisitions which we continue to integrate into our existing business and new business revenues increased $249 million. These increases were partially offset by a $274 million decrease in revenues from contracts that concluded and a $131 million decline from contracts renewed at lower rates.

GBS segment revenue decreased $399 million, or 9.9%, as compared to fiscal 2015. In constant currency, revenue decreased $154 million or 3.8%, which was an improvement as compared to the fiscal 2015 revenue decrease in constant currency of 4.7%. The unfavorable foreign currency impact of $245 million, or 61.4% of the year-over-year decrease, was due to the strengthening of the U.S. dollar against most currencies. The revenue decrease in constant currency included revenue from the extra week in the first quarter of fiscal 2015, which did not recur in fiscal 2016.

Included in fiscal 2016 revenue is acquisition revenue of $65 million from the acquisition of Fruition Partners, Axon, and UXC, which were completed late in the second, third, and fourth quarters of fiscal 2016, respectively.

The decrease in GBS' revenue in constant currency of $154 million was mainly due to reduced revenue within its applications and consulting businesses, partially offset by revenue increases in the Big Data offering. Reduced applications revenue resulted from contracts that concluded, which more than offset revenue from new contracts and the acquisitions mentioned above. Lower consulting revenue was due to lower project volumes and contract conclusions. Higher big data revenues resulted from increased revenues from both existing contracts and new business.

During fiscal 2016, GBS had contract awards of $4.3 billion compared to $4.7 billion in fiscal 2015.

Fiscal 2015

GBS segment revenue decreased $285 million, or 6.6%, as compared to fiscal 2014. In constant currency, revenue decreased $205 million, or 4.7%. The unfavorable foreign currency impact was due to the strengthening of the U.S. dollar against most currencies except the British pound.

The decrease in GBS' revenue in constant currency of $205 million was mainly due to lower revenue from its consulting and applications offerings. These consulting revenue decreases were primarily due to project completions not fully offset by new business. The consulting revenue was also adversely impacted by the continuing repositioning of the business from a partner-led model to a more industry-focused technology consulting model. The U.K. region, where the repositioning of the consulting business was first initiated had year-over-year revenue increases. In addition, the consulting revenues' year-over-year trend was adversely impacted by $36 million of revenue recognized in fiscal 2014 resulting from initiation of revenue recognition on a contract which had previously deferred revenue under software accounting rules. The decrease in applications business was due to contracts winding down or completed which were not fully replaced by new business. These decreases in GBS revenue were partially offset by $23 million of adverse fiscal 2014 revenue adjustments, within the industry software and solutions group, which did not repeat in fiscal 2015.

During fiscal 2015, GBS had contract awards of $4.7 billion compared to $6.1 billion in fiscal 2014.

Global Infrastructure Services

~~Fiscal~~GIS segment constant currency revenues for fiscal 2017 increased $68 million, or 2.0%, as compared to fiscal 2016. The increase was primarily due to an increase of $243 million in revenues from new business and an increase in revenues contributed from our recent acquisitions. In addition, we recognized incremental revenues of $43 million under our segment's portion of the IP matters agreement (see note 3 - "Divestitures" to the consolidated financial statements). These increases were partially offset by decreases in revenues of $335 million from contracts that concluded, $89 million from contracts renewed with scope changes and $23 million due to price-downs. We continue to take actions to mitigate the secular headwinds facing our traditional IT outsourcing business and focus GIS on the next generation digital needs of our clients.

~~GIS~~Fiscal ~~segment~~2016 ~~revenue decreased $612 million, or 15.0%, as~~ compared towith fiscal 2015. In constant currency, revenue decreased $390 million, or 9.6%. The unfavorable foreign currency impact of $222 million, or 36.3% of the year-over-year decrease, was due to the strengthening of the U.S. dollar against most currencies. The revenue decrease in constant currency included revenue from the extra week in the first quarter of fiscal 2015, which did not recur in fiscal 2016.

~~Included~~Global inBusiness ~~fiscal 2016 revenue is acquisition revenue of $35 million from the acquisitions of Fixnetix and UXC which were completed late in the second and fourth quarters of fiscal 2016, respectively.~~ Services

~~The~~GBS ~~decrease~~segment inrevenues ~~GIS'~~decreased ~~revenue~~$399 inmillion, or 9.9%, as compared to fiscal 2015. In constant currency, ofrevenues decreased $~~390~~154 million, or 3.8%, which was ~~due~~an toimprovement ~~reduced~~as ~~revenue~~compared ~~from~~to ~~contracts~~the ~~that~~fiscal ~~terminated~~2015 orrevenues ~~concluded~~decrease asin ~~well~~constant ascurrency anof 4.7%. The unfavorable foreign currency impact ~~from~~of ~~price-downs~~$245 ~~and~~million, ~~contract~~or ~~restructurings~~61.4% ~~These~~of ~~revenue~~the ~~decreases~~year-over-year ~~were~~decrease, ~~partially~~was ~~offset~~due byto anthe ~~increase~~strengthening of the U.S. dollar against most currencies. The revenue decrease in constant currency included revenues from ~~new~~the ~~contracts~~extra ~~and~~week in the ~~acquisition~~first ~~revenue~~quarter ~~mentioned~~of ~~above~~fiscal 2015, which did not recur in fiscal 2016.

~~During fiscal 2016, GIS had contract awards with a total value of $4.3 billion compared to $4.1 billion during fiscal 2015.~~ 25

~~Fiscal~~Included ~~2015~~in fiscal 2016 revenues is acquisition revenues of $65 million from the acquisition of Fruition Partners, Axon, and UXC, which were completed late in the second, third, and fourth quarters of fiscal 2016, respectively.

~~GIS~~Global ~~segment~~Infrastructure revenue decreased $497 million, or 10.9%, as compared to fiscal 2014. In constant currency, revenue decreased $429 million, or 9.4%. The unfavorable foreign currency impact was due to the strengthening of the U.S. dollar against most currencies except the British pound.Services

30GIS segment revenues decreased $612 million, or 15.0%, as compared to fiscal 2015. In constant currency, revenues decreased $390 million, or 9.6%, due to reduced revenues from contracts that terminated or concluded as well as an unfavorable impact from price-downs and contract restructurings. It also included revenues from the extra week in the first quarter of fiscal 2015, which did not recur in fiscal 2016. These revenue decreases were partially offset by an increase in revenues from new contracts and acquisitions. The increase in revenues due to acquisitions totaled $35 million from Fixnetix and UXC completed late in the second and fourth quarters, respectively. The unfavorable foreign currency impact of $222 million, or 36.3% of the year-over-year decrease, was due to the strengthening of the U.S. dollar against most currencies.

The decrease in GIS' revenue for fiscal 2015 of $429 million was due to reduced revenue of $252 million from contracts that terminated or concluded, lower revenue of $354 million due to price-downs and restructured contracts, and $31 million of lower pass-through revenue. Partially offsetting these decreases was increased revenue of $208 million from new business and net growth on existing contracts, and from the next generation cloud and cyber security offerings.

During fiscal 2015, GIS had contract awards with a total value of $4.1 billion as compared to $4.1 billion during fiscal 2014.

Costs and Expenses

~~The~~Our ~~Company’s~~ total costs and expenses were as follows:

	Twelve Months Ended								Percentage of Revenue
	Fiscal Years Ended								Percentage of Revenues
Dollars in millions	April 1, 2016			April 3, 2015			March 28, 2014		2016		2015		2014
(in millions)	March 31, 2017			April 1, 2016			April 3, 2015		2017		2016		2015
Costs of services (excludes depreciation and amortization and restructuring costs)	$	5,~~185~~545		$	65,~~159~~185		$	6,~~032~~159	7372.09	%	7673.0	%	6776.80	%
Selling, general and administrative (excludes depreciation and amortization, SEC settlement related charges and restructuring costs)	1,~~040~~279			1,~~220~~040			1,~~099~~220		1416.68		1514.06		1215.30
Selling, general and administrative - SEC settlement related charges	—			~~197~~—			—197		—		~~2.4~~—		—2.4
Depreciation and amortization	~~658~~647			~~840~~658			~~870~~840		98.35		109.3		910.83
Restructuring costs	23238			~~256~~23			74256		0.3.1		30.23		03.82
Separation costs	19—			—19			—		~~0.3~~—		—0.3		—
Interest expense, net	8582			~~106~~85			~~112~~106		1.21		1.32		1.3
Debt extinguishment costs	95—			—95			—		~~1.3~~—		—1.3		—
Other (income) expense, net	(910		)	10(9		)	1810		(0.1	)	(0.1	)	0.21
Total costs and expenses	$	7,~~096~~781		$	87,~~788~~096		$	8,~~205~~788	99102.93	%	~~108~~99.39	%	92108.23	%

The year-over-year trend of total costs has been impacted by the recognition of actuarial and pension settlement (gains) losses (see Note 14 of the Notes to the Consolidated Financial Statements). Total costs for fiscal 2016 decreased by $484 million as compared to fiscal 2015, and total costs for fiscal 2015 increased $801 million as compared to fiscal 2014, due to actuarial and pension settlement (gains) losses. Excluding the impact of actuarial and pension settlement (gains) losses and restructuring costs, the total costs as a percentage of revenue for fiscal 2016, 2015, and 2014 were 98.5%, 97.9%, and 93.8%, respectively.

Costs of services include $100 million, $525 million, and $(170) million of actuarial and pension settlement losses (gains) for fiscal 2016, 2015, and 2014, respectively. Similarly, selling, general and administrative expenses include $(1) million, $59 million, and $(47) million of actuarial and pension settlement losses (gains) for fiscal 2016, 2015, and 2014, respectively.

Costs of Services

Fiscal ~~2016~~2017 compared with fiscal 2016

~~Costs~~COS as a percentage of ~~services~~revenues ("COS ratio"), asremained aconsistent ~~percentage~~year over year. The $360 million increase in costs of ~~revenue~~services, excluding depreciation and amortization and restructuring charges ~~and~~("COS") ~~depreciation~~was ~~and~~largely ~~amortization, decreased~~related to ~~73.0%~~our ~~for~~acquisitions and a $31 million gain on the sale of certain intangible assets in our GIS segment during fiscal 2016 ~~from~~not ~~76.0%~~present ~~for~~in the current fiscal ~~2015~~year. This increase was offset by management's ongoing cost reduction initiatives and a year-over-year favorable change of $28 million to pension and other post-retirement benefit ("OPEB") actuarial and settlement losses associated with our defined benefit pension plans. The amount of restructuring charges, net of reversals, excluded from COS was $7219 million and $~~248~~7 million for fiscal ~~2016~~2017 and ~~2015~~2016, respectively.

~~The~~Fiscal ~~decrease in the COS ratio for fiscal~~ 2016 ~~was~~compared ~~primarily~~with ~~a result of the $425 million year-over-year favorable change in the recognition of actuarial and pension settlement losses. During~~ fiscal ~~2016 and~~ 2015, the Company recognized $100 million and $525 million, respectively, of actuarial and pension settlement losses in COS, resulting from the remeasurement of pension assets and liabilities associated with the Company's defined benefit pension plans.

31The net reduction in COS was a result of management's cost reduction initiatives, including reduced headcount, that sought to align our cost structure with business needs. During fiscal 2016 and 2015, we recognized $100 million and $525 million, respectively, of pension and OPEB actuarial and pension settlement losses in COS. The amount of restructuring charges, net of reversals, excluded from COS was $7 million and $248 million for fiscal 2016 and 2015, respectively.

Excluding the impact of the pension adjustments described above, the COS ratio increased 2.2% to 71.6% during fiscal 2016. The increase in the COS ratio was driven primarily by the reduction in revenue, which more than offset the decrease in COS. The net reduction in COS was a result of management's cost reduction initiatives, including reduced headcount, that sought to align the Company's cost structure with business needs. The increase in the COS ratio was partially offset by a gain of $31 million on the sale of certain intangible assets.26

~~Fiscal~~The COS ratio decreased to 73.0% for fiscal 2016 from 76.0% for fiscal 2015. The decrease in the COS ratio for fiscal 2016 was due to the reduction in revenues and the $425 million year-over-year favorable change in the recognition of actuarial and pension settlement losses. This decrease was partially offset by a gain of $31 million on the sale of certain intangible assets and other COS decreases.

COS, excluding restructuring charges of $248 million and $68 million, for fiscal 2015 and 2014, respectively, and depreciation and amortization, as a percentage of revenue increased to 76.0% for fiscal 2015 from 67.8% for fiscal 2014. The increase in the COS ratio is attributable to the year-over-year unfavorable impact of $695 million resulting from the recognition of pension and OPEB actuarial losses associated with the Company's defined benefit plans. For fiscal 2015, the Company recognized $525 million of actuarial losses, as compared to $170 million of net actuarial gains in fiscal 2014. Excluding the impact of the pension adjustments described above, the COS ratio for fiscal 2015 was 69.4%, a decrease of 0.3% points from the fiscal 2014 ratio of 69.7%.

The decrease in the COS ratio, was largely due to lower year-over-year headcount resulting from management's restructuring efforts that were directed to align resources to support business needs, and other initiatives to reduce costs. The reduction in the COS ratio due to these activities more than offset the impact of decreased revenues. In addition, the COS ratio benefited from the gain of $53 million on the sale of certain intangible assets.

Selling, General and Administrative

Fiscal 2017 compared with fiscal 2016

Selling, general and administrative expense as a percentage of revenues, excluding depreciation and amortization, SEC settlement related charges and restructuring charges ("SG&A) ~~expense~~ratio"), ~~excluding~~increased ~~restructuring~~2.2% ~~charges~~to of16.8% for fiscal 2017 from 14.6% for fiscal 2016. The increase was due to transaction and integration costs of $16305 million associated with our recent acquisitions and the Merger, an increase of $816 million ~~for~~in ~~fiscal~~the ~~2016~~recognition of pension and ~~2015,~~OPEB ~~respectively,~~actuarial and pension settlement losses and a non-recurring settlement recovery of $16 million recorded as a ~~percentage~~reduction of ~~revenue~~selling, ~~decreased~~general ~~slightly~~and toadministrative 14expense ("SG&A") during fiscal 2016, not present in the current fiscal year.6% ~~for~~These increases were partially offset by higher revenues. During fiscal 2017 and 2016, ~~from~~we recognized $15 million and $(1) million, respectively, of actuarial and pension settlement losses (gains) in SG&A.0% The amount of restructuring charges, net of adjustments, excluded from SG&A was $19 million and $16 million for fiscal ~~2015~~2017 and 2016, respectively.

~~The~~Fiscal ~~SG&A ratio for fiscal~~ 2016 ~~was~~compared ~~impacted~~with ~~by the year-over-year favorable change in the recognition of actuarial and pension settlement losses. The Company recognized no actuarial and pension settlement losses in SG&A during~~ fiscal ~~2016. Comparatively, during fiscal~~ 2015, the Company recognized $59 million of actuarial and pension settlement losses in SG&A, resulting from the remeasurement of pension assets and liabilities associated with the Company's defined benefit pension plans.

~~Excluding~~SG&A ~~the~~expense, ~~impact~~excluding restructuring charges of ~~the~~$16 ~~pension~~million ~~adjustments~~and ~~described~~$8 ~~above~~million for fiscal 2016 and 2015, ~~the~~respectively, ~~SG&A~~as ~~ratio~~a ~~increased~~percentage 0of revenues, decreased slightly to 14.36% for fiscal 2016 from 15.0% ~~The~~for ~~increase~~fiscal in2015. ~~the~~The SG&A ratio ~~was~~for ~~driven~~fiscal ~~primarily~~2016 was impacted by the ~~reduction~~year-over-year favorable change in ~~revenue,~~the ~~which~~recognition ~~more~~of ~~than~~pension ~~offset~~and ~~the~~OPEB ~~decrease~~actuarial inand ~~SG&A~~settlement losses. ~~The~~ ~~lower~~We recognized no actuarial and pension settlement losses in SG&A ~~costs~~ during fiscal 2016. ~~were~~Comparatively, ~~primarily~~during ~~the~~fiscal ~~result~~2015, we recognized $59 million of ~~management's~~actuarial ~~cost~~and ~~reduction~~pension ~~initiatives~~settlement ~~that~~losses ~~sought~~in toSG&A, ~~align~~resulting from the ~~Company's~~remeasurement ~~cost~~of ~~structure~~pension ~~with~~assets ~~business~~and ~~needs~~liabilities ~~and~~associated awith ~~settlement~~our ~~recovery~~defined ofbenefit ~~$16~~pension ~~million~~plans.

~~Corporate~~Excluding Gthe impact of the pension adjustments described above, the SG&A ratio increased 0.3% for fiscal 2016 from fiscal 2015. The increase in the SG&A ratio was ~~$216~~driven ~~million,~~primarily asby ~~compared~~the toreduction ~~$230~~in ~~million~~revenues, ~~for~~which ~~2015.~~more ~~The~~than offset the decrease in ~~Corporate~~SG&A. GThe lower SG&A ~~was~~costs ~~due~~during tofiscal ~~continuance~~2016 were primarily the result of management's ~~overhead~~cost reduction initiatives that sought to align our cost structure with business needs and a settlement recovery of $16 million.

~~Fiscal~~Selling, ~~2015~~General and Administrative - SEC Settlement Related Charges

~~SG&A~~During ~~expense~~fiscal 2015, ~~excluding~~we reached an understanding with the staff of the SEC ~~settlement~~regarding ~~related~~a ~~charges~~settlement of ~~$197~~a ~~million~~formal civil investigation by the SEC that commenced during fiscal 2012 and ~~restructuring~~covered ~~charges~~a range of $8matters ~~million~~as ~~and~~previously $6disclosed, ~~million~~including ~~for~~certain ~~fiscal~~of ~~2015~~our prior disclosures and ~~2014,~~accounting ~~respectively~~determinations. As part of our understanding with the staff of the SEC regarding terms of the settlement, aswe agreed to pay a ~~percentage~~penalty of ~~revenue,~~$190 ~~increased~~million and to 15implement a review of our compliance policies through an independent compliance consultant.0% We recorded pre-tax charges of $197 million for the penalty and related expenses in fiscal 2015. ~~from~~See ~~12.3%~~Note 22 - "Settlement of SEC Investigation" to the consolidated financial statements for ~~fiscal~~additional ~~2014~~information.

The increase in the fiscal 2015 SG&A ratio was primarily attributable to the year-over-year unfavorable $106 million impact resulting from recognition of pension and OPEB actuarial losses associated with the Company's defined benefit plans. For fiscal 2015, the Company recognized $59 million of net actuarial losses, compared to $47 million of net actuarial gains in fiscal 2014. The fiscal 2015 SG&A ratio was also unfavorably impacted by a $21 million gain recognized in fiscal 2014, resulting from reversal of contingent consideration related to the fiscal 2014 acquisition of ServiceMesh, Inc., (see Note 3 of the Notes to the Consolidated Financial Statements). Excluding the impact of the pension and OPEB adjustments and the ServiceMesh related gain, the SG&A ratio for fiscal 2015 was 14.3%, an increase of 1.2% from the fiscal 2014 ratio of 13.1%.

The higher SG&A ratio for fiscal 2015 was due to lower revenues, an increase in bid and proposal spend mainly within the GIS segment, and greater investments in the sales coverage and sales support functions. The year-over-year SG&A ratio comparison was also adversely impacted due to redirecting of certain account-focused executives, who were previously engaged in contract delivery activities and included within COS, to focus on sales activities effective the second quarter of fiscal 2014.

Corporate G&A for fiscal 2015 was $230 million, as compared to $245 million for 2014. The decrease in Corporate G&A was the result of management's overhead reduction initiatives.

Selling, general and administrative - SEC settlement related charges

During the third quarter of fiscal 2015, the Company reached an understanding with the staff of the SEC regarding a settlement of a formal civil investigation by the SEC that commenced on January 28, 2011 and covered a range of matters as previously disclosed, including certain of the Company's prior disclosures and accounting determinations. As part of the Company’s understanding with the staff of the SEC regarding terms of the settlement, the Company agreed to pay a penalty of $190 million and to implement a review of its compliance policies through an independent compliance consultant. The Company recorded pre-tax charges of $197 million for the penalty and related expenses in fiscal 2015.

During the first quarter of fiscal 2016, the agreed-upon settlement with the SEC was formally approved by the SEC and became effective on June 5, 2015 and the Company has agreed, in addition to the payment of the fine and the engagement of the compliance consultant referenced above, to cease and desist from further violations of the anti-fraud, reporting, and books-and-records provisions of the U.S. securities laws. As part of the settlement, the Company has neither admitted nor denied the SEC’s allegations concerning such matters. Further, as part of the settlement, on June 5, 2015, the Company filed its Form 10-K/A in respect of its fiscal year ended March 28, 2014 in order to restate its financial statements for fiscal 2012 and its summary financial results for fiscal 2011 and 2010 reflected in the five-year financial data table, all as previously set forth in the Company’s originally filed Form 10-K for its 2014 fiscal year. The restatement had no impact on the Company’s Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income (Loss), Statements of Cash Flows and Statements of Changes in Equity for fiscal 2013 or fiscal 2014 or on its financial statements for fiscal 2015. The independent compliance consultant completed its review of the Company's compliance policies and submitted its report to the SEC on October 2, 2015. The Company has completed implementation of the consultant's recommendations. See Note 2 of the Notes to the Consolidated Financial Statements for additional information regarding the settlement of the SEC investigation.

Depreciation and Amortization

Fiscal ~~2016~~2017 compared with fiscal 2016

Depreciation and amortization ("D&A") as a percentage of ~~revenue~~revenues decreased less than 1% to 98.35% for fiscal ~~2016~~2017 from 109.3% for fiscal ~~2015.~~2016 ~~The~~due ~~decrease~~to an increase in ~~the~~revenues ~~ratio~~for ~~was~~the ~~primarily~~GBS ~~driven~~segment byand lower D&A within the GIS segment as a result of ~~lower~~reduced capital expenditures ~~and~~from ~~due~~contract toterminations, ~~sale~~as ofwell ~~contract~~as ~~assets~~a continued focus on capital efficiency. The decrease in the D&A ratio was partially offset by an increase in amortization related to ~~customers~~our ~~where~~recent ~~contracts~~acquisitions, ~~had~~primarily ~~concluded~~within the GBS segment.

~~Fiscal 2015~~ 27

~~D&A~~Fiscal as2016 acompared ~~percentage~~with ~~of revenue increased to 10.3% for~~ fiscal 2015 ~~from 9.8% for fiscal 2014, primarily due to decreased revenues.~~

D&A as a percentage of revenues decreased to 9.3% for fiscal 2016 from 10.3% for fiscal 2015. The decrease in the ratio was primarily driven by lower D&A within the GIS segment as a result of lower capital expenditures and sale of contract assets to customers where contracts had concluded.

Restructuring Costs

During fiscal 2017, 2016 and 2015 we initiated certain restructuring actions across our segments. During fiscal 2017 we initiated restructuring actions in certain areas to realign our cost structure and resources to take advantage of operational efficiencies following recent acquisitions and in anticipation of the Merger. Total restructuring costs recorded, net of reversals, were ~~during~~largely ~~fiscal~~the ~~2016,~~result ~~2015,~~of ~~and~~implementing ~~2014~~workforce ~~were~~reductions. ~~$23~~Under ~~million,~~our ~~$256~~Fiscal ~~million,~~2016 ~~and~~Plan ~~$74~~our ~~million,~~objective ~~respectively.~~was ~~The~~to ~~net~~optimize ~~amounts~~utilization ~~recorded~~of ~~included~~facilities $7and ~~million,~~right $3size ~~million~~overhead ~~and~~organizations ~~$22~~as ~~million~~a result of ~~pension~~the ~~benefit~~Separation. ~~augmentations~~Our ~~for~~objective ~~fiscal~~under ~~2016,~~our Fiscal 2015, ~~and~~plan ~~2014,~~was ~~respectively,~~to ~~owed~~reduce headcount in order to ~~certain~~align ~~employees~~resources ~~under~~to ~~legal~~support orbusiness ~~contractual~~needs, ~~obligations.~~accelerate ~~These~~efforts ~~augmentations~~to ~~will~~optimize bethe ~~paid~~workforce asin ~~part~~high ofcost ~~normal~~markets, ~~pension~~particularly ~~distributions~~in ~~over~~Europe, ~~several~~address ~~years.~~our labor pyramid and right-shore our labor mix.

33Total restructuring costs recorded, net of reversals, during fiscal 2017, 2016 and 2015 were $238 million, $23 million and $256 million, respectively. Fiscal 2015 restructuring costs included a special restructuring charge of $241 million in the fourth quarter of fiscal 2015. The net amounts recorded included $6 million, $7 million and $3 million of pension benefit augmentations for fiscal 2017, 2016 and 2015, respectively, owed to certain employees under legal or contractual obligations. These augmentations will be paid as part of normal pension distributions over several years. The remaining liabilities under the Fiscal 2013 and Fiscal 2012 plans were paid or reversed during fiscal 2017. During fiscal 2018, as we integrate our businesses after the Merger, we plan to incur restructuring expenses of approximately $1.3 billion in fiscal 2018 and an additional $400 million in fiscal 2019.

During fiscal 2016, the Company initiated restructuring actions (the Fiscal 2016 Plan) across its business segments. The objectives of the Fiscal 2016 Plan are to optimize utilization of facilities and right size overhead organizations as a result of the separation of CSRA.

The Company initiated restructuring actions during fiscal 2015 (the Fiscal 2015 Plan) to further reduce headcount in order to align resources to support business needs. As part of this plan, the Company recorded a special restructuring charge of $241 million in the fourth quarter of fiscal 2015 to accelerate efforts to optimize the workforce in high cost markets, particularly in Europe, address its labor pyramid and right-shore its labor mix.

Under a plan that commenced during the fourth quarter of fiscal 2012 (the Fiscal 2013 Plan), the Company continued its efforts to reduce costs, resulting in additional workforce and facilities-related restructuring. These actions related primarily to reducing headcount to align resources to support business needs, including an assessment of management span of control and layers, and to further increase the use of lower off-shore resource costs.

See Note 20 of the Notes to the Consolidated Financial Statements for further discussion.

Separation Costs

Costs associated with activities relating to the Separation of ~~CSRA,~~NPS ~~which occurred~~ during the third quarter of fiscal 2016, ~~are~~of $19 million were expensed when incurred. These costs ~~are~~were comprised primarily of third-party accounting, legal and other consulting services. ~~Separation costs were $19 million for fiscal 2016.~~ There were no separation costs recorded in ~~prior~~fiscal ~~years~~2017 or fiscal 2015.

Interest Expense and Interest Income

Fiscal ~~2016~~2017 compared with fiscal 2016

Interest expense for fiscal 2017 was $117 million as compared to $123 million in fiscal 2016. The year-over-year decrease in interest expense was due to the fourth quarter fiscal 2016 redemption of our 6.50% term notes and lower interest rates on our existing debt.

Interest income for fiscal 2017 was $35 million as compared to $38 million in fiscal 2016. The decrease in interest income was due to lower average deposit balances in our money market funds and money market deposit accounts during fiscal 2017 as compared to the prior fiscal year.

Fiscal 2016 compared with fiscal 2015

Interest expense for fiscal 2016 was $123 million as compared to $126 million in fiscal 2015. The year-over-year decrease in interest expense for fiscal 2016 was primarily due to lower interest rates than the prior year, which more than offset the increase in borrowings. Included in interest expense for fiscal 2016 is a write-off of $2 million of deferred costs and discount related to the redemption of the 6.50% term notes due March 2018 during the fourth quarter of fiscal 2016.

Interest income for fiscal 2016 was $38 million as compared to $20 million in fiscal 2015. The increase in interest income for fiscal 2016 resulted both from higher interest rates in some of the jurisdictions where ~~the~~we ~~Company~~hold ~~holds~~ balances and principally from increased payments from banks for higher compensating deposit balances in ~~the~~our ~~Company's~~ cash management operations and notional pooling arrangements that are counterbalanced by higher overdraft fees and interest expense.

~~Fiscal 2015~~28

There were no significant year-over-year changes in interest expense and interest income. Interest expense for fiscal 2015 was $126 million as compared to $128 million in fiscal 2014. Interest income for fiscal 2015 was $20 million as compared to $16 million in fiscal 2014.

Debt Extinguishment Costs

During fiscal 2016, ~~the~~we ~~Company~~ redeemed all outstanding 6.50% term notes due March 2018 at par plus redemption premiums related to a make-whole provision and accrued interest. ~~The~~We ~~Company~~ recorded $95 million of debt extinguishment costs within the consolidated statement of operations, which consists primarily of the redemption premiums mentioned above~~, within the Consolidated Statement of Operations for fiscal 2016~~. There were no debt extinguishment costs recorded in ~~prior~~fiscal ~~years~~2017 or fiscal 2015.

See Note 13 of the Notes to the Consolidated Financial Statements for further discussion.

Other (Income) Expense, Net

~~The~~Fiscal ~~components~~2017 ofcompared ~~other~~with ~~(income) expense, net for~~ fiscal 2016~~, fiscal 2015, and fiscal 2014 are:~~

	Twelve Months Ended
(Amounts in millions)	April 1, 2016			April 3, 2015			March 28, 2014
Foreign currency (gain) loss	$	(1	)	$	11		$	15
Other (gain) loss	(8		)	(1		)	3
Total other (income) expense, net	$	(9	)	$	10		$	18

Other (income) expense, net comprises movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, equity earnings of unconsolidated affiliates and other miscellaneous gains and losses. The $1 million year-over-year increase in other income was due to a $7 million year-over-year benefit of favorable movements in foreign currency exchange rates used to fair value our foreign currency forward contracts and the related foreign currency denominated assets and liabilities partially offset by a $6 million gain on sale of certain assets during fiscal 2016 not present in the current fiscal year.

Fiscal 2016 compared with fiscal 2015

Other (income) expense, net increased by $19 million primarily due to the $12 million ~~year-over-year~~ benefit of favorable movements in ~~foreign currency~~ exchange rates ~~used to fair value the Company's foreign currency option~~ and ~~forward contracts and~~ the ~~related~~aforementioned ~~foreign currency denominated assets and liabilities, and a~~ $6 million gain on sale of ~~certain~~ assets.

Fiscal 2015

Other (income) expense, net decreased by $8 million, most significantly due to a $4 million decrease in foreign currency loss resulting from a favorable movement in exchange rates between the U.S. dollar and the Indian Rupee.

Taxes

~~The~~Our ~~Company's~~ effective tax rate ("ETR") on income (loss) from continuing operations for fiscal ~~2016~~2017, ~~2015,~~2016 and ~~2014~~2015 was (~~620~~42.05)%, (69620.20)%, and 25(69.12)%, respectively. As a global enterprise, our ETR is affected by many factors, including our global mix of earnings, the extent to which those global earnings are indefinitely reinvested outside the U.S., legislation, acquisitions, dispositions, and tax characteristics of our income. Our tax returns are routinely audited and settlements of issues raised in these audits sometimes affect our tax provisions. A reconciliation of the differences between the U.S. federal statutory rate and the ETR, as well as other information about our income tax provision, is provided in Note 1211 of- ~~the~~"Income ~~Notes~~Taxes" to the ~~Consolidated~~consolidated ~~Financial~~financial ~~Statements~~statements.

In fiscal 2017, the ETR was primarily impacted by:

•

A change in the valuation allowance that primarily consists of an aggregate income tax detriment for the increase in the valuation allowances on tax attributes primarily in the U.S., Germany and Luxembourg, which decreased the overall income tax benefit and decreased the ETR by $135 million and 78%, respectively. Offset by an aggregate income tax benefit related to the release of valuation allowances on tax attributes primarily in the U.K., Denmark and Japan, which increased the overall income tax benefit and increased the ETR by $75 million and 43.0%, respectively.


•	An income tax detriment for transaction costs incurred that are not deductible for tax purposes, which resulted in a decrease to the overall tax benefit and decreased the ETR by $21 million and 12.1%, respectively.


•	An income tax benefit from excess tax benefits realized from employee share-based payment awards, which resulted in an increase in the overall income tax benefit and increased the ETR by $20 million and 11.3%, respectively.

In fiscal 2016, the ETR was primarily impacted by:

• The ~~early~~ adoption of ~~Accounting Standards Update 2016-09 "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09) resulted in~~ a ~~tax~~new ~~benefit~~accounting ~~from~~standard ~~the~~on excess tax benefits realized from share options vested or exercised. This increased the overall income tax benefit and the ETR by $23 million and 230%, respectively.

• An increase in the overall valuation allowance primarily due to the ~~divestiture~~Separation ~~of the Company's former NPS business division, which resulted in an increase in the valuation allowances~~ related to state net operating losses and state tax credits. This decreased the overall income tax benefit and ETR by $27 million and 270%, respectively.


•	The release of a liability for uncertain tax positions following the closure of the U.K. tax audit for fiscal 2010 to 2012. This increased the income tax benefit by $58 million and increased the ETR by 580%.

• ~~The~~Adjustments ~~Company recognized adjustments~~ to uncertain tax positions in the U.S. that increased the overall income tax benefit by $24 million and increased the ETR by 240%, respectively.

In fiscal 2015, the ETR was primarily impacted by:

• The ~~impact of the~~ non-deductible SEC settlement of $190 million, which decreased the income tax benefit and the ETR by $73 million and 10.9%, respectively.


•	Local losses on investments in Luxembourg increased the foreign rate differential and the ETR by $325 million and 48.4%, respectively, with an offsetting decrease in the ETR due to an increase in the valuation allowance of the same amount.


•	Changes in valuation allowances in certain jurisdictions, including a valuation allowance release in the U.K. The total impact of the valuation allowance release increased the income tax benefit and the ETR by $235 million and 35.0%, respectively. There was a net decrease in valuation allowances in fiscal 2015.

InThe Company entered into negotiations for a resolution of the fiscal ~~2014~~2008 through 2010 U.S. Federal audit through settlement with the IRS Office of Appeals. The IRS examined several issues for this audit that resulted in various audit adjustments. During the fourth quarter of fiscal 2016, the ~~ETR~~Company ~~was~~and ~~primarily~~the ~~impacted~~IRS reached an agreement in principle as to the settlement terms and the Company remeasured its uncertain tax positions. This audit cycle is now under review by: the Joint Committee on Taxation. The Company has agreed to extend the statute of limitations associated with this audit through November 30, 2017.

•As ~~The~~of ~~Company~~March ~~recorded~~31, a2017, ~~tax~~we ~~expense~~are ofundergoing ~~$10~~an ~~million~~IRS ~~related~~audit tofor the ~~previous~~fiscal ~~restructuring~~2011 through 2013 U.S. Federal tax returns. During the first quarter of anfiscal ~~operating~~2018, ~~subsidiary~~we received a Revenue Agent’s Report, which includes proposed adjustments to previously filed tax returns. ~~This~~We ~~expense~~continue ~~increased~~to ~~the~~believe ~~ETR~~that byour 1tax positions are more-likely-than-not sustainable and that we will ultimately prevail.~~5%.~~

• A net increase in uncertain tax positions across various jurisdictions of $41 million which increased the ETR by 6.0%. The primary drivers of this increase in tax expense were related to various tax issues including transfer pricing and foreign exchange losses.

• A decrease in the valuation allowance determined on a tax jurisdictional basis due to a shift in the global mix of income which decreased tax expense and the ETR by $58 million and 8.4%, respectively.

• Local income on investment recoveries in Luxembourg (i) decreased the valuation allowance and the ETR by $91 million and 13.1%, respectively, and (ii) increased the foreign rate differential and ETR by $91 million and 13.1%, respectively.

As of April 1, 2016, in accordance with ASC 740, "Income Taxes," the Company’s liability for uncertain tax positions was $193 million, including interest of $33 million, penalties of $11 million, and net of tax attributes of $31 million. During the year ended April 1, 2016, the Company had a net decrease in interest of $6 million ($4 million net of tax) and an increase in accrued penalties of $2 million.

Significant management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. A valuation allowance has been recorded against deferred tax assets of approximately $1 billion as of April 1, 2016 due to uncertainties related to the ability to utilize these assets. Valuation allowances are evaluated periodically and will be subject to change in each future reporting period as a result of changes in various factors. In determining whether the deferred tax assets are realizable, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, taxable income in prior carryback years, projected future taxable income, tax planning strategies, and recent financial operations.

The Company entered into negotiations for a resolution of the fiscal 2008 through 2010 audit through settlement with the IRS Office of Appeals. The IRS examined several issues for this audit that resulted in various audit adjustments. The Company agreed to extend the statute of limitations associated with the audit through November 30, 2016. During the fourth quarter of fiscal 2016, the Company and the IRS reached an agreement in principle as to the settlement terms and the Company remeasured its uncertain tax positions.

The Company has tax positions related to certain legislation that has historically been subject to annual extension, resulting in uncertainty related to the corresponding impact on future income tax results. For example, the Company has favorable positions related to the research & development tax credit, bonus depreciation, and the look-through rules related to Subpart F income. In 2015, Congress enacted the “Protecting Americans from Tax Hikes” (PATH) Act, which made several of these provisions permanent, or extended them for multiple years; which is favorable for the Company’s ability to forecast these impacts accurately in future years.

In May 2013, the India Finance Act 2013 introduced a share buyback tax. Additional legislation was passed effective in May 2015 that increased the share buyback tax rate to 23.07% and increased the dividend distribution tax rate to 20.36%, among other changes. The Company uses the lower undistributed tax rate to measure deferred taxes on inside basis differences, including undistributed earnings, of our India operations as these earnings are permanently reinvested. If the Company changes its intent and distributes such earnings either in the form of a dividend or a share buyback, dividend distribution tax or share buyback tax will be incurred.

The Finance Act of 2012 (the 2012 Finance Act) was signed into law in India on May 28, 2012. The Act provides for the taxation of indirect foreign investment in India, including on a retroactive basis. The Finance Act overrides the Vodafone NL ruling by the Supreme Court of India which held that the Indian Tax Authorities cannot assess capital gains taxes on the sale of shares of non-Indian companies that indirectly own shares in an Indian company. The retroactive nature of these changes in law has been strongly criticized. The 2012 Finance Act has been challenged in the Indian courts. However, there is no assurance that such a challenge will be successful. CSC has engaged in the purchase of shares of foreign companies that indirectly own shares of an Indian company and internal reorganizations. The Indian tax authorities may seek to apply the provisions of the 2012 Finance Act to these prior transactions and seek to tax CSC directly or as a withholding agent or representative assessee of the sellers involved in prior acquisitions. The Company believes that the 2012 Finance Act does not apply to these prior acquisitions and that it has strong defenses against any claims that might be raised by the Indian tax authorities.

The U.K. Finance Act 2016 (Finance Act) is expected to be enacted sometime in third quarter of fiscal 2017. When the 2016 Budget was presented on March 16, 2016, various measures were announced that could have an impact on CSC’s future financial results in the U.K. The proposed legislation will impose restrictions on the utilization of prior period losses against current period profits, limitations on interest deductions, and changes to anti-hybrid rules and an expansion in the scope of withholding taxes to certain intangible assets. As the detail of the legislation has yet to be finalized or enacted, it is difficult at this stage to determine the impact of the Finance Act on CSC’s future financial results in the U.K. at this time.

Additionally, the 2016 budget proposed a reduction in the main rate of U.K. corporation tax to 17.0% effective April 1, 2020. This legislation is due to be enacted in fiscal 2017 and is expected to reduce the value of the Company’s U.K. deferred tax assets by approximately $7 million.

The German Tax Authority audit of fiscal 2006 through 2009 was also closed during the fiscal year, resulting in a cash payment of approximately $11 million and a reduction in tax losses carried forward of $90 million. Provision for these amounts was made during fiscal 2015; and therefore, closure of this audit did not result in any tax expense or benefit in fiscal 2016.

Income from Discontinued Operations

InIncome ~~fiscal~~from ~~2016~~discontinued operations, ~~the~~net ~~Company~~of ~~completed~~taxes, ~~its~~for ~~Separation~~fiscal ~~from~~2016 ~~CSRA~~and ~~which~~2015, ~~was comprised~~ primarily ofreflects the ~~NPS~~results ~~reportable~~of ~~segment. Income from discontinued~~ operations, ~~net~~ of ~~taxes,~~our ~~for~~former ~~fiscal~~NPS ~~2016,~~segment. Fiscal 2015, ~~and~~also ~~2014,~~included ~~primarily~~the ~~reflects~~results ~~the~~of ~~Separation~~operations from ~~CSRA.~~the ~~Refer~~sale toof ~~Note~~a 4German ofsoftware business within the ~~Notes~~GBS tosegment and the ~~Consolidated~~related ~~Financial~~$18 ~~Statements~~million ~~for~~net ~~further~~loss ~~information~~recorded on its disposition.

In(Loss) ~~addition~~Earnings toPer ~~the~~Share Separation from CSRA, the Company divested certain non-core businesses as a part of its service portfolio optimization initiative to focus on next-generation technology services during fiscal 2016, 2015, and 2014,. During fiscal 2016, the Company divested its wholly owned subsidiary, Welkin, which was included within the NPS segment, and in fiscal 2015, the Company divested a German software business within the GBS segment. Fiscal 2014 divestitures included ATD from within the NPS segment and the flood insurance business from within the GBS segment. All fiscal 2016, 2015 and 2014 divestitures have been included within Income from discontinued operations, net of taxes in the Consolidated Statements of Operations.

~~The~~Fiscal ~~fiscal~~2017 ~~2016,~~compared ~~2015~~with and 2014 Income from discontinued operations, net of taxes, was $191 million, $224 million and $448 million, respectively. Income from discontinued operations, net of taxes included $(18) million and $86 million of (loss) gain on disposition, net of taxes from the sale of the businesses for fiscal ~~2015 and 2014, respectively.~~ 2016

~~Earnings~~Diluted EPS from continuing operations in fiscal 2017 decreased $1.38 per share to $(~~Loss~~0.88) ~~Per~~per ~~Share~~share primarily due to $403 million of transaction and ~~Share~~integration ~~Base~~related costs during the current fiscal year for the Merger and other acquisitions. In addition, restructuring costs increased $215 million as compared to the same period a year ago. These decreases were partially offset by the non-recurrence of fiscal 2016 debt extinguishment costs of $95 million.

~~Fiscal~~Total ~~2016~~diluted EPS for fiscal 2017 decreased $2.66 per share due to the reasons mentioned above for EPS from continuing operations and the lack of discontinued operations associated with the Separation of NPS during the current fiscal year.

~~Diluted~~Fiscal ~~EPS for fiscal~~ 2016 ~~was $1.78 which was an increase of $1.77 from fiscal 2015. Diluted EPS from continuing operations in fiscal 2016 increased $1.95 and diluted EPS from discontinued operations decreased $0.18 when~~ compared towith fiscal 2015 ~~results.~~

Diluted EPS for fiscal 2016 was $1.78, which was an increase of $1.77 from fiscal 2015. Diluted EPS from continuing operations in fiscal 2016 increased ~~primarily~~$1.95 ~~due~~and todiluted ~~the~~EPS ~~following~~from ~~items~~discontinued ~~(on~~operations ~~pre-tax~~decreased ~~basis):~~$0.18 when compared to fiscal 2015 results.

•Diluted ~~Year-over-year~~EPS ~~favorable~~from ~~change~~continuing inoperations ~~pension~~increased ~~and~~primarily ~~OPEB~~due ~~actuarial~~to ~~and~~the ~~settlement~~following ~~losses~~items of(on ~~$485~~a ~~million,~~pre-tax ~~or $3.43 per share;~~basis):


•	Favorable change in pension and OPEB actuarial and settlement losses of $485 million, or $3.43 per share;


•	Non-recurrence of fiscal 2015 special restructuring charges of $241 million, or $1.71 per share;

• Non-recurrence of fiscal 2015 SEC settlement and related charges of $200 million, or 1.42 per share; ~~and,~~


•	Partially offset by debt extinguishment costs of $95 million, or (0.67) per share.

Additionally, diluted EPS from continuing operations was adversely impacted by the non-recurrence of the fiscal 2015 tax benefit from the reversal of a valuation allowance of $264 million, or $(1.87) per share.

The decrease in diluted EPS from discontinued operations resulted primarily from a decrease in net income attributable to discontinued operations associated with the Separation of CSRA partially offset by the non-recurrence of the fiscal 2015 loss on disposition of GBS' German software business, 30

~~Fiscal~~The decrease in diluted EPS from discontinued operations resulted primarily from a decrease in net income attributable to discontinued operations associated with the Separation of NPS partially offset by the non-recurrence of the fiscal 2015 loss on disposition of GBS' German software business.

~~Diluted~~ ~~EPS~~Non-GAAP ~~for~~Financial ~~fiscal~~Measures 2015 was $0.01 which was a decrease of $6.27 compared to fiscal 2014. Diluted EPS from continuing operations for fiscal 2015 decreased $4.90, and diluted EPS from discontinued operations decreased $1.37 over fiscal 2014..

~~Diluted~~We ~~EPS~~present non-GAAP financial measures of performance which are derived from our consolidated financial information. These non-GAAP financial measures include consolidated segment operating income, consolidated segment adjusted operating income, consolidated segment adjusted operating margin, earnings before interest and taxes ("EBIT"), adjusted EBIT, non-GAAP income from continuing operations ~~decreased~~before ~~primarily~~taxes, ~~due~~non-GAAP tonet ~~the~~income ~~following~~from ~~items~~continuing ~~(on~~operations ~~pre~~and non-~~tax~~GAAP ~~basis):~~EPS from continuing operations.

•We ~~Year~~present these non-~~over-year~~GAAP ~~unfavorable~~financial ~~change~~measures to provide investors with meaningful supplemental financial information, in ~~pension~~addition ~~and~~to ~~OPEB~~the ~~actuarial~~financial ~~and~~information ~~settlement~~presented ~~losses~~on a U.S. GAAP basis. Non-GAAP financial measures exclude certain items otherwise required by U.S. GAAP which management believes are not indicative of ~~$801~~core ~~million,~~operating orperformance. ~~$(5~~We believe these non-GAAP measures allow investors to better understand our financial performance exclusive of the impacts of corporate-wide strategic decisions.~~62)~~ ~~per~~We ~~share;~~believe that adjusting for these items provides investors with additional measures to evaluate the financial performance of our core business operations on a comparable basis from period to period. We believe the non-GAAP measures provided are also considered important measures by financial analysts covering us as equity research analysts publish estimates and research notes based on our non-GAAP commentary, including our guidance around non-GAAP EPS.

•There ~~SEC~~are ~~settlement~~limitations to the use of the non-GAAP financial measures we present. One of the limitations is that they do not reflect complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and ~~related~~the ~~charges~~respective most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of ~~$200~~those ~~million~~measures for comparative purposes between companies. Consolidated segment operating income and consolidated segment adjusted operating income are useful measures in evaluating the financial performance of our core segment business operations on a more comparable basis year-over-year. However, orthese ~~$(1~~measures could limit one’s ability to assess our financial performance by excluding corporate G&A and certain other items.~~40)~~ ~~per~~To ~~share;~~compensate for this limitation, we provide a reconciliation between these measures and income from continuing operations, before taxes, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

•Non-GAAP ~~Special~~financial ~~restructuring~~measures ~~charges~~and ofthe ~~$241~~respective ~~million,~~most ordirectly ~~$(1~~comparable financial measures calculated and presented in accordance with U.~~69)~~S. ~~per~~GAAP ~~share;~~include:

• Partially offset by tax benefit from reversal of a valuation allowance of $264 million, or $1.85 per share.



	Fiscal Years Ended
(in millions)	March 31, 2017			April 1, 2016		April 3, 2015
(Loss) income from continuing operations	$	(100	)	$	72	$	(207	)
Non-GAAP income from continuing operations	$	470		$	363	$	326
Consolidated segment operating income	$	357		$	515	$	459
Net (loss) income	$	(100	)	$	263	$	17
EBIT	$	(92	)	$	95	$	(565	)

~~The~~Reconciliation ~~decrease in diluted EPS from discontinued operations resulted primarily from the Separation~~ of ~~CSRA, and the non~~Non-~~recurrence~~GAAP ofFinancial ~~the fiscal 2014 gain on disposition of NPS' ATD division and GBS' flood insurance-related business process outsourcing practice.~~Measures

Our non-GAAP adjustments include:


•	Restructuring costs - Reflects restructuring costs related to workforce optimization and real estate charges.


•	Transaction and integration-related costs - Reflects costs related to (1) the Separation, (2) integration planning, financing and advisory fees associated with the Merger and (3) acquisitions and related intangible amortization.


•	Certain overhead costs - Reflects certain fiscal 2016 and 2015 costs historically allocated to our former NPS segment but not included in discontinued operations due to accounting rules. These costs are expected to be largely eliminated on a prospective basis.


•	U.S. Pension and OPEB - Reflects the impact of certain U.S. pension and other OPEB plans historically included in CSC's financial results that have been transferred to CSRA as part of the Separation.


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


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


•	Debt extinguishment costs - Reflects costs related to the fiscal 2016 redemption of all outstanding 6.50% term notes due March 2018.

•

Tax adjustment - Reflects the adoption of a new accounting standard in fiscal 2016 changing excess tax benefits on share-based compensation to be recorded as a reduction to income tax expense, the release of tax valuation allowances in certain jurisdictions and the application of an approximate 20% tax rate for fiscal 2016 periods, which is at the low end of the prospective targeted effective tax rate range of 20% to 25% and effectively excludes the impact of discrete tax adjustments for those periods.

A reconciliation of non-GAAP income from continuing operations to reported results is as follows:



	Fiscal Year Ended March 31, 2017
(in millions, except per-share amounts)	As reported			Restructuring costs			Transaction and integration-related costs			Pension and OPEB actuarial and settlement losses			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	5,545		$	—		$	—		$	(72	)	$	5,473

Selling, general and administrative (excludes depreciation and amortization, SEC settlement related charges and restructuring costs)	1,279			—			(305		)	(15		)	959

(Loss) income from continuing operations, before taxes	(174		)	(247		)	(403		)	(87		)	563
Income tax benefit	(74		)	(39		)	(111		)	(17		)	93
(Loss) income from continuing operations	(100		)	(208		)	(292		)	(70		)	470

Net (loss) income	(100		)	(208		)	(292		)	(70		)	470
Less: net income attributable to noncontrolling interest, net of tax	23			—			—			—			23
Net (loss) income attributable to CSC common stockholders	$	(123	)	$	(208	)	$	(292	)	$	(70	)	$	447

Effective Tax Rate	42.5		%										16.5		%

Basic EPS from continuing operations	$	(0.88	)	$	(1.48	)	$	(2.08	)	$	(0.50	)	$	3.18
Diluted EPS from continuing operations	$	(0.88	)	$	(1.44	)	$	(2.02	)	$	(0.49	)	$	3.10

Weighted average common shares outstanding for:
Basic EPS	140.39			140.39			140.39			140.39			140.39
Diluted EPS	140.39			144.31			144.31			144.31			144.31

* The net periodic pension cost within income from continuing operations includes $483 million of actual return on plan assets, whereas the net periodic pension cost within non-GAAP income from continuing operations includes $161 million of expected long-term return on pension assets of defined benefit plans subject to interim remeasurement.



	Fiscal Year Ended April 1, 2016
(in millions, except per-share amounts)	As reported			Certain overhead costs			U.S. pension and OPEB		Transaction and integration-related costs			Restructuring costs			Pension & OPEB actuarial & settlement losses			SEC settlement-related items			Debt extinguishment costs			Tax adjustment			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	5,185		$	(41	)	$	32	$	(5	)	$	—		$	(100	)	$	—		$	—		$	—		$	5,071

Selling, general and administrative (excludes depreciation and amortization, SEC settlement related charges and restructuring costs)	1,040			(47		)	6		(55		)	—			1			(5		)	—			—			940

Income from continuing operations, before taxes	10			(88		)	38		(95		)	(66		)	(99		)	(5		)	(100		)	—			425
Income tax (benefit) expense	(62		)	(34		)	15		(23		)	(18		)	(18		)	(2		)	(40		)	(4		)	62
Income from continuing operations	72			(54		)	23		(72		)	(48		)	(81		)	(3		)	(60		)	4			363

Net income	263			(54		)	23		(72		)	(48		)	(81		)	(3		)	(60		)	4			554
Less: net income attributable to noncontrolling interest, net of tax	12			—			—		—			—			—			—			—			—			12
Net income attributable to CSC common stockholders	$	251		$	(54	)	$	23	$	(72	)	$	(48	)	$	(81	)	$	(3	)	$	(60	)	$	4		$	542

Effective Tax Rate	(620.0		)%																								14.6		%

Basic EPS from continuing operations	$	0.51		$	(0.39	)	$	0.17	$	(0.52	)	$	(0.35	)	$	(0.59	)	$	(0.02	)	$	(0.43	)	$	0.03		$	2.63
Diluted EPS from continuing operations	$	0.50		$	(0.38	)	$	0.16	$	(0.51	)	$	(0.34	)	$	(0.57	)	$	(0.02	)	$	(0.42	)	$	0.03		$	2.57

Weighted average common shares outstanding for:
Basic EPS	138.28			138.28			138.28		138.28			138.28			138.28			138.28			138.28			138.28			138.28
Diluted EPS	141.33			141.33			141.33		141.33			141.33			141.33			141.33			141.33			141.33			141.33



	Fiscal Year Ended April 3, 2015
(in millions, except per-share amounts)	As reported			Certain overhead costs			U.S. Pension and OPEB		Pension and OPEB actuarial and settlement losses			SEC settlement-related items			Restructuring costs			Tax adjustment			Non-GAAP results
Costs of services (excludes depreciation and amortization and restructuring costs)	$	6,159		$	(32	)	$	43	$	(525	)	$	—		$	—		$	—		$	5,645

Selling, general and administrative (excludes depreciation and amortization, SEC settlement related charges and restructuring costs)	1,220			(72		)	8		(59		)	(3		)	—			—			1,094

(Loss) income from continuing operations, before taxes	(671		)	(104		)	51		(584		)	(200		)	(241		)	—			407
Income tax benefit	(464		)	(40		)	20		(135		)	(2		)	(50		)	(338		)	81
(Loss) income from continuing operations	(207		)	(64		)	31		(449		)	(198		)	(191		)	338			326

Net income	17			(64		)	31		(449		)	(198		)	(191		)	338			550
Less: net income attributable to noncontrolling interest, net of tax	15			—			—		—			—			—			—			15
Net income attributable to CSC common stockholders	$	2		$	(64	)	$	31	$	(449	)	$	(198	)	$	(191	)	$	338		$	535

Effective Tax Rate	69.2		%																		19.9		%

Basic EPS from continuing operations	$	(1.45	)	$	(0.45	)	$	0.22	$	(3.15	)	$	(1.39	)	$	(1.34	)	$	2.37		$	2.29
Diluted EPS from continuing operations	$	(1.45	)	$	(0.44	)	$	0.21	$	(3.08	)	$	(1.36	)	$	(1.31	)	$	2.32		$	2.24

Weighted average common shares outstanding for:
Basic EPS	142.56			142.56			142.56		142.56			142.56			142.56			142.56			142.56
Diluted EPS	142.56			145.78			145.78		145.78			145.78			145.78			145.78			145.78

We define consolidated segment operating income as revenues less costs of services, associated depreciation and amortization expense, restructuring costs and segment SG&A expenses. Consolidated segment operating income excludes pension and OPEB actuarial and settlement losses and corporate G&A, which is largely associated with centrally managed overhead and shared-services functions which are not controlled by segment level leadership nor directly related to our core segment business operations. Consolidated segment adjusted operating income further excludes the impacts of corporate-wide strategic decisions, such as segment related restructuring and other transaction costs. We define consolidated segment adjusted operating margin as consolidated segment adjusted operating income as a percentage of revenues. A reconciliation of consolidated segment operating income to income from continuing operations, before taxes is as follows:



	Fiscal Years Ended
(in millions)	March 31, 2017			April 1, 2016			April 3, 2015
Consolidated segment operating income	$	357		$	515		$	459
Corporate G&A	(372		)	(216		)	(230		)
Pension and OPEB actuarial and settlement losses	(87		)	(99		)	(584		)
SEC settlement related charges & other	—			—			(200		)
Separation costs	—			(19		)	—
Interest expense	(117		)	(123		)	(126		)
Interest income	35			38			20
Debt extinguishment costs	—			(95		)	—
Other income (expense), net	10			9			(10		)
(Loss) income from continuing operations, before taxes	$	(174	)	$	10		$	(671	)

Reconciliations of consolidated segment operating income to consolidated segment adjusted operating income are as follows:



	Fiscal Year Ended March 31, 2017
(in millions)	Consolidated segment operating income			Restructuring costs			Transaction and integration-related costs			Consolidated segment adjusted operating income			Consolidated segment adjusted operating margin
Global Business Services	$	305		$	(116	)	$	(77	)	$	498		11.9	%
Global Infrastructure Services	107			(131		)	(71		)	309			9.0	%
Total Commercial	412			(247		)	(148		)	807			10.6	%
Corporate and Eliminations	(55		)	—			(3		)	(52		)	—	%
Total	$	357		$	(247	)	$	(151	)	$	755		9.9	%

Fiscal Year Ended April 1, 2016

(in millions)

Consolidated segment operating income

Certain overhead costs

U.S Pension & OPEB

Restructuring costs

Transaction and integration-related costs

Consolidated segment adjusted operating income

Consolidated segment adjusted operating margin

Global Business Services

381

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