COMPUTER SCIENCES CORP | 2013 | FY | 3

The impact of the adjustments on income (loss) from continuing operations before taxes is attributable to the following prior fiscal years:
 
 
Increase/(Decrease)
(Amounts in millions)
 
Fiscal 2008 &
Prior (unaudited)
 
Fiscal 2009 (unaudited)
 
Fiscal 2010
 
Fiscal 2011
 
Total
Intentional irregularities
 
$
10

 
$
(7
)
 
$
(4
)
 
$
1

 
$
—

Other Errors
 
(7
)
 
(16
)
 
3

 
(3
)
 
(23
)
 
 
$
3

 
$
(23
)
 
$
(1
)
 
$
(2
)
 
$
(23
)
The amounts noted below also include certain adjustments that only impacted quarters (unaudited) within fiscal 2013, but had no net impact on the full year fiscal 2013 results:
 
 
Fiscal 2013
 
 
 
 
Quarter Ended
 
 
(Amounts in millions)
 
June 29, 2012
 
September 28, 2012
 
December 28, 2012
 
March 29, 2013
 
Total
NHS adjustments
 
$
—

 
$
(9
)
 
$
—

 
$
—

 
$
(9
)
Other adjustments
 
3

 
12

 
4

 
(4
)
 
15

Effect on income from continuing operations before taxes
 
3

 
3

 
4

 
(4
)
 
6

Taxes on income
 
(2
)
 
(1
)
 
(4
)
 
(1
)
 
(8
)
Other income tax adjustments
 
(2
)
 
—

 
(2
)
 
(1
)
 
(5
)
Effect on income from discontinued operations, net of taxes
 
—

 
—

 
(28
)
 
28

 
—

Effect on net income attributable to CSC common shareholders
 
$
(1
)
 
$
2

 
$
(30
)
 
$
22

 
$
(7
)
The following table summarizes the cumulative effect on the fiscal 2011 net income attributable to CSC common shareholders of the consolidated out of period adjustments recorded during fiscal 2011, 2012 and 2013. The amounts noted below also include certain adjustments that only impacted quarters (unaudited) within fiscal 2011, but had no net impact on the full year fiscal 2011 results:
 
 
Fiscal 2011
 
 
 
 
Quarter Ended
 
 
(Amounts in millions)
 
July 2,
2010
 
October 1,
2010
 
December 31,
2010
 
April 1,
2011
 
Total
Operating costs inappropriately capitalized
 
$
15

 
$
38

 
$
8

 
$
6

 
$
67

Misapplication of US GAAP
 
4

 
3

 
6

 
(1
)
 
12

Miscellaneous errors
 
1

 
(1
)
 
9

 
(2
)
 
7

Total Nordic adjustments
 
20

 
40

 
23

 
3

 
86

Operating costs inappropriately capitalized
 
—

 
(1
)
 
(1
)
 
—

 
(2
)
Misapplication of US GAAP
 
—

 
1

 
3

 
(1
)
 
3

Miscellaneous errors
 
(4
)
 
5

 
(2
)
 
(3
)
 
(4
)
Total Australia adjustments
 
(4
)
 
5

 
—

 
(4
)
 
(3
)
NHS adjustments
 
(10
)
 
(2
)
 
(5
)
 
(5
)
 
(22
)
NPS adjustments
 
4

 
2

 
(10
)
 
(7
)
 
(11
)
Other adjustments
 
(9
)
 
(8
)
 
(18
)
 
(14
)
 
(49
)
Effect on income from continuing operations before taxes
 
1

 
37

 
(10
)
 
(27
)
 
1

Taxes on income
 
4

 
1

 
9

 
10

 
24

Other income tax adjustments
 
(1
)
 
(13
)
 
(6
)
 
18

 
(2
)
Effect on net income attributable to CSC common shareholders
 
$
4

 
$
25

 
$
(7
)
 
$
1

 
$
23

The rollover impact on income (loss) from continuing operations before taxes of the recorded out of period adjustments in fiscal 2013, 2012 and 2011 is attributable to the following prior fiscal years:
 
 
Increase/(Decrease)
 
 
(Amounts in millions)
 
Fiscal 2011 Adjustments
 
Fiscal 2012 Adjustments
 
 Fiscal 2013 Adjustments
 
Total Adjustments
Fiscal 2013
 
$
—

 
$
—

 
$
6

 
$
6

Fiscal 2012
 
—

 
79

 
7

 
86

Fiscal 2011
 
52

 
(29
)
 
(22
)
 
1

Fiscal 2010
 
(48
)
 
(9
)
 
14

 
(43
)
Prior fiscal years (unaudited)
 
(4
)
 
(41
)
 
(4
)
 
(49
)
Out of period adjustments recorded during fiscal 2011, 2012 and 2013 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended April 1, 2011 under the rollover method:
 
 
Twelve Months Ended April 1, 2011
(Amounts in millions, except per-share amounts)
 
As Reported
 
Adjustments
Increase/
(Decrease)
 
Amount Adjusted
for Removal
of Errors
Revenues
 
$
15,582

 
$
1

 
$
15,583

Costs of services (excludes depreciation and amortization)
 
12,578

 
(4
)
 
12,574

Selling, general and administrative
 
949

 
1

 
950

Depreciation and amortization
 
1,068

 
3

 
1,071

Interest expense
 
167

 
—

 
167

Other (income) expense
 
(21
)
 
—

 
(21
)
Income from continuing operations before taxes
 
878

 
1

 
879

Taxes on income
 
202

 
(22
)
 
180

Income from continuing operations
 
676

 
23

 
699

Income from discontinued operations, net of taxes
 
83

 
—

 
83

Net income attributable to CSC common shareholders
 
740

 
23

 
763

EPS – Diluted
 
 
 
 
 
 
Continuing operations
 
$
4.20

 
$
0.15

 
$
4.35

Discontinued operations
 
0.53

 
—

 
0.53

Total
 
$
4.73

 
$
0.15

 
$
4.88

The impact on income (loss) from continuing operations before taxes of the out of period adjustments identified in fiscal 2013 related to the Company's NHS contract is attributable to the following prior fiscal years:
 
 
Increase/(Decrease)
(Amounts in millions)
 
Fiscal 2013 Adjustments
Fiscal 2013
 
$
(9
)
Fiscal 2012
 
10

Fiscal 2011
 
(15
)
Fiscal 2010
 
18

Prior fiscal years (unaudited)
 
(4
)
The impact on income (loss) from continuing operations before taxes of the $25 million of out of period adjustments identified in fiscal 2012 related to the Company's NHS contract is attributable to the following prior fiscal years:
 
Increase/(Decrease)
(Amounts in millions)
Fiscal 2012 Adjustments
Fiscal 2012
$
25

Fiscal 2011
(7
)
Fiscal 2010
(4
)
Prior fiscal years (unaudited)
(14
)
Out of period adjustments recorded in fiscal 2013 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended March 29, 2013 under the rollover method:
 
 
Twelve Months Ended March 29, 2013
(Amounts in millions, except per-share amounts)
 
As Reported
 
Adjustments
Increase/
(Decrease)
 
Amount Adjusted
for Removal
of Errors
Revenues
 
$
14,993

 
14

 
$
15,007

Costs of services (excludes depreciation and amortization and restructuring costs)
 
11,851

 
6

 
11,857

Selling, general and administrative (excluding restructuring costs)
 
1,195

 
(1
)
 
1,194

Depreciation and amortization
 
1,076

 
(2
)
 
1,074

Restructuring costs
 
264

 
5

 
269

Interest expense
 
183

 
—

 
183

Other (income) expense
 
(34
)
 
—

 
(34
)
Income from continuing operations before taxes
 
480

 
6

 
486

Taxes on income
 
(35
)
 
13

 
(22
)
Income from continuing operations
 
515

 
(7
)
 
508

Income from discontinued operations, net of taxes
 
464

 
—

 
464

Net income attributable to CSC common shareholders
 
961

 
(7
)
 
954

EPS – Diluted
 
 
 
 
 
 
Continuing operations
 
$
3.20

 
$
(0.04
)
 
$
3.16

Discontinued operations
 
2.98

 
—

 
2.98

Total
 
$
6.18

 
$
(0.04
)
 
$
6.14

The following table summarizes the cumulative effect on the fiscal 2012 net loss attributable to CSC common shareholders of the consolidated out of period adjustments recorded during fiscal 2012 and fiscal 2013 under the rollover method. The amounts noted below also include certain adjustments that only impacted quarters (unaudited) within fiscal 2012, but had no net impact on the full year fiscal 2012 results:
 
 
Fiscal 2012
 
 
 
 
Quarter Ended
 
 
(Amounts in millions)
 
July 1,
2011
 
September 30,
2011
 
December 30,
2011
 
March 30,
2012
 
Total
Operating costs inappropriately capitalized
 
$
1

 
$
—

 
$
—

 
$
—

 
$
1

Misapplication of US GAAP
 
1

 
(1
)
 
2

 
(1
)
 
1

Miscellaneous errors
 
2

 
7

 
—

 
2

 
11

Total Nordic adjustments
 
4

 
6

 
2

 
1

 
13

Operating costs inappropriately capitalized
 
—

 
11

 
—

 
—

 
11

Misapplication of US GAAP
 
—

 
8

 
—

 
1

 
9

Miscellaneous errors
 
—

 
2

 
2

 
(1
)
 
3

Total Australia adjustments
 
—

 
21

 
2

 
—

 
23

NHS adjustments
 
(2
)
 
(2
)
 
46

 
(7
)
 
35

NPS adjustments
 
3

 
1

 
(5
)
 
11

 
10

Other adjustments
 
2

 
(11
)
 
5

 
9

 
5

Effect on income (loss) from continuing operations before taxes
 
7

 
15

 
50

 
14

 
86

Taxes on income
 
(2
)
 
(3
)
 
(2
)
 
(4
)
 
(11
)
Other income tax adjustments
 
1

 
14

 
(10
)
 
(5
)
 
—

Effect on net income (loss) attributable to CSC common shareholders
 
$
6

 
$
26

 
$
38

 
$
5

 
$
75

Out of period adjustments recorded during fiscal 2012 and fiscal 2013 had the following impact on select line items of the Consolidated Statements of Operations for the twelve months ended March 30, 2012 under the rollover method:
 
 
Twelve Months Ended March 30, 2012
(Amounts in millions, except per-share amounts)
 
As Reported
 
Adjustments
Increase/
(Decrease)
 
Amount Adjusted
for Removal
of Errors
Revenues
 
$
15,364

 
$
56

 
$
15,420

Costs of services (excludes depreciation and amortization, specified contract charge, settlement charge and restructuring costs)
 
13,019

 
(27
)
 
12,992

Cost of services – specified contract charge (excludes amount charged to revenue of $204)
 
1,281

 
3

 
1,284

Selling, general and administrative (excludes restructuring costs)
 
1,128

 
2

 
1,130

Depreciation and amortization
 
1,147

 
(2
)
 
1,145

Restructuring costs
 
140

 
(5
)
 
135

Interest expense
 
175

 
(3
)
 
172

Other (income) expense
 
(6
)
 
2

 
(4
)
Loss from continuing operations before taxes
 
(4,454
)
 
86

 
(4,368
)
Taxes on income
 
(84
)
 
11

 
(73
)
Loss from continuing operations
 
(4,370
)
 
75

 
(4,295
)
Income from discontinued operations, net of taxes
 
145

 
—

 
145

Net loss attributable to CSC common shareholders
 
(4,242
)
 
75

 
(4,167
)
EPS – Diluted
 
 
 
 
 
 
Continuing operations
 
$
(28.31
)
 
$
0.48

 
$
(27.83
)
Discontinued operations
 
0.94

 


 
0.94

Total
 
$
(27.37
)
 
$
0.48

 
$
(26.89
)

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