Revenues by Segment
Consolidated Statements of Income
Selected Balance Sheet Data
Consolidated Statements of Cash Flows
Non-GAAP Financial Measures
Earnings per Share Reconciliation


Computer Sciences Corporation
  
June 13, 2007
  
   
   
 
(unaudited)
  
   
   
Fourth Quarter Ended
  
   
March 30,
  
March 31,
  
% of Total
  
(In millions)
  
2007
  
2006
  
Fiscal 2007
  
Fiscal 2006
  
       
(As Restated)
      
(As Restated)
  
                   
   U.S. Commercial
  
$
991.1
  
$
1,021.4
    
24
%
  
26
%
   Europe
    
1,234.7
    
1,135.0
    
31
    
29
  
   Other International
    
388.5
    
369.0
    
10
    
9
  
Global Commercial sector
    
2,614.3
    
2,525.4
    
65
    
65
  
                           
   Department of Defense
    
978.4
    
919.5
    
24
    
24
  
   Civil agencies
    
415.1
    
417.9
    
10
    
10
  
   Other (1)
    
38.0
    
28.9
    
1
    
1
  
North American Public sector
    
1,431.5
    
1,366.3
    
35
    
35
  
                           
   
$
4,045.8
  
$
3,891.7
    
100
%
  
100
%
 

   
Twelve Months Ended
  
   
March 30,
  
March 31,
  
% of Total
  
(In millions)
  
2007
  
2006
  
Fiscal 2007
  
Fiscal 2006
  
       
(As Restated)
      
(As Restated)
  
                   
   U.S. Commercial
  
$
3,872.9
  
$
4,047.7
    
26
%
  
28
%
   Europe
    
4,146.3
    
4,176.8
    
28
    
28
  
   Other International
    
1,487.1
    
1,360.5
    
10
    
9
  
Global Commercial sector
    
9,506.3
    
9,585.0
    
64
    
65
  
                           
   Department of Defense
    
3,593.8
    
3,368.9
    
24
    
23
  
   Civil agencies
    
1,600.1
    
1,544.3
    
11
    
11
  
   Other (1)
    
156.4
    
140.8
    
1
    
1
  
North American Public sector
    
5,350.3
    
5,054.0
    
36
    
35
  
                           
   
$
14,856.6
  
$
14,639.0
    
100
%
  
100
%
                           


   
(1)
Other revenues consist of state, local and foreign government as well as commercial contracts performed by the North American Public reporting sector.

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Computer Sciences Corporation
June 13, 2007
 
 
(unaudited)

   
Fourth Quarter Ended
  
Twelve Months Ended
  
(In millions except per-share amounts)
  
March 30,
  
March 31,
  
March 30,
  
March 31,
  
   
2007
  
2006
  
2007
  
2006
  
       
(As Restated)
  
 
  
(As Restated)
  
 
Revenues
  
$
4,045.8
  
$
3,891.7
  
$
14,856.6
  
$
14,639.0
  
                           
Costs of services
    
3,135.3
    
3,067.9
    
11,817.8
    
11,724.0
  
Selling, general and administrative
    
233.0
    
229.2
    
916.4
    
862.5
  
Depreciation and amortization
    
284.4
    
279.5
    
1,073.6
    
1,091.8
  
Interest expense
    
46.4
    
33.8
    
175.2
    
120.9
  
Interest income
    
(7.6
)
  
(12.7
)
  
(49.5
)
  
(40.8
)
Special items
    
36.2
    
25.3
    
316.1
    
77.3
  
                           
Total costs and expenses
    
3,727.7
    
3,623.0
    
14,249.6
    
13,835.7
  
                           
Income before taxes
    
318.1
    
268.7
    
607.0
    
803.3
  
Taxes on income
    
68.4
    
105.6
    
218.2
    
332.2
  
                           
Income from continuing operations
    
249.7
    
163.1
    
388.8
    
471.1
  
                           
Gain on the sale of discontinued operations, net of taxes
                      
61.3
  
                           
Discontinued operations, net of taxes
                      
61.3
  
Cumulative effect of change in accounting principle, net of taxes
          
(4.3
)
        
(4.3
)
                           
Net income
  
$
249.7
  
$
158.8
  
$
388.8
  
$
528.1
  
                           
Earnings per share:
                          
   Continuing operations
  
$
1.44
  
$
0.87
  
$
2.21
  
$
2.54
  
   Discontinued operations
                      
0.33
  
   Cumulative effect of change in accounting principle, net of taxes
          
(0.02
)
        
(0.02
)
      Basic*
  
$
1.44
  
$
0.85
  
$
2.21
  
$
2.84
  
                           
   Continuing operations
  
$
1.42
  
$
0.86
  
$
2.16
  
$
2.51
  
   Discontinued operations
                      
0.33
  
   Cumulative effect of change in accounting principle, net of taxes
          
(0.02
)
        
(0.02
)
      Diluted*
  
$
1.42
  
$
0.84
  
$
2.16
  
$
2.81
  
                           
Average common shares outstanding for:
                          
    Basic EPS
    
173.062
 
 
186.711
 
 
176.263
 
 
185.693
  
    Diluted EPS
    
176.397
 
 
189.683
 
 
179.733
 
 
187.984
  
                           
Earnings before special, interest, taxes
  
$
393.2
  
$
315.1
  
$
1,048.8
  
$
960.7
  
                           
*Amounts may not add due to rounding.

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Computer Sciences Corporation
  
June 13, 2007
  
   
   
 
(unaudited)
          
           
   
March 30,
  
March 31,
  
(In millions)
  
2007
  
2006
  
       
(As Restated)
  
Assets
          
   Cash and cash equivalents
$
1,050.1
  
$
1,290.7
  
   Receivables, net of allowance for doubtful accounts
  
4,184.3
    
3,732.6
  
   Prepaid expenses and other current assets
  
1,472.0
    
1,268.9
  
      Total current assets
  
6,706.4
    
6,292.2
  
             
   Property and equipment, net
 
2,539.1
    
2,320.1
  
   Outsourcing contract costs, net
 
1,029.5
    
1,175.3
  
   Software, net
 
513.3
    
453.3
  
   Goodwill, net
  
2,505.2
    
2,306.3
  
   Other assets
  
437.0
    
474.5
  
      Total assets
$
13,730.5
  
$
13,021.7
  
             
             
Liabilities
            
   Short-term debt and current maturities of long-term debt
$
93.7
  
$
85.3
  
   Accounts payable
  
855.7
    
705.1
  
   Accrued payroll and related costs
  
732.5
    
707.5
  
   Other accrued expenses
  
1,799.3
    
1,442.7
  
   Deferred revenue
  
1,025.5
    
634.3
  
   Federal, state and foreign income taxes
  
752.9
    
793.7
  
      Total current liabilities
  
5,259.6
    
4,368.6
  
             
   Long-term debt, net
 
1,412.2
    
1,376.8
  
   Other long-term liabilities
  
1,173.2
    
770.9
  
             
      Stockholders' Equity
  
5,885.5
    
6,505.4
  
             
      Total liabilities and stockholders' equity
$
13,730.5
  
$
13,021.7
  
             

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Computer Sciences Corporation
  
June 13, 2007
  
   
   
     
(unaudited)
      
       
   
Twelve Months Ended
  
(In millions)
  
March 30,
  
March 31,
  
   
2007
  
2006
  
       
(As Restated)
  
Cash flows from operating activities:
          
   Net income
$
388.8
  
$
528.1
  
   Adjustments to reconcile net income to net
            
     cash provided by operating activities:
            
      Depreciation and amortization and other non-cash charges
  
1,164.5
    
1,446.5
  
      Gain on dispositions, net of taxes
  
(23.2
)
  
(60.9
)
      Changes in assets and liabilities, net of effects of acquisitions:
            
         Increase in assets
  
(562.8
)
  
(454.9
)
         Decrease in liabilities
  
611.3
    
92.5
  
             
Net cash provided by operating activities
  
1,578.6
    
1,551.3
  
             
Investing activities:
            
   Purchases of property and equipment
  
(685.9
)
  
(826.9
)
   Acquisitions, net of cash acquired
  
(134.3
)
  
(44.1
)
   Dispositions
  
2.8
    
0.5
  
   Outsourcing contracts
  
(112.7
)
  
(242.5
)
   Software
 
(154.2
)
  
(151.1
)
   Other investing cash flows
  
211.6
    
140.1
  
             
Net cash used in investing activities
  
(872.7
)
  
(1,124.0
)
             
Financing activities:
            
   Borrowings (repayment) under lines of credit, net
  
(21.5
)
  
(22.4
)
   Principal payments on long-term debt
  
(40.8
)
  
(8.5
)
   Proceeds from stock option and other common stock transactions
  
94.8
    
101.1
  
   Excess tax benefit from stock-based compensation
  
12.1
        
   Repurchase of common stock/acquisition of treasury stock
  
(1,000.0
)
  
(227.7
)
   Other financing cash flows
  
(0.1
)
  
6.8
  
             
Net cash provided by financing activities
  
(955.5
)
  
(150.7
)
             
Effect of exchange rate changes on cash and cash equivalents
  
9.0
    
3.8
  
             
Net decrease in cash and cash equivalents
  
(240.6
)
  
280.4
  
Cash and cash equivalents at beginning of year
  
1,290.7
    
1,010.3
  
             
Cash and cash equivalents at end of period
$
1,050.1
  
$
1,290.7
  
             

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Computer Sciences Corporation
June 13, 2007
 
 
 
The following tables reconcile Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA); Earnings Before Interest and Taxes (EBIT); and Free Cash Flow to the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). CSC management believes that these non-GAAP financial measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide another measure of the Company's profitability and ability to service its debt, and are considered important measures by financial analysts covering CSC and its peers. Management uses earnings before special items to evaluate business unit financial performance and it is one of the measures used in assessing management performance. One of the limitations associated with the use of earnings before special items (as compared to reported earnings) is that it does not reflect the complete financial results of the Company. CSC compensates for these limitations by providing a reconciliation between earnings before special items and reported earnings.



GAAP Reconciliations
                  
(In millions)
                  
           
EBITDA / EBIT (unaudited)
  
Fourth Quarter Ended
  
Twelve Months Ended
  
   
March 30,
  
March 31,
  
March 30,
  
March 31,
  
   
2007
  
2006
  
2007
  
2006
  
       
(As Restated)
      
(As Restated)
  
 
EBITDA and special items
  
$
677.5
  
$
594.6
  
$
2,122.4
  
$
2,052.5
  
   Special items
    
36.2
    
25.3
    
316.1
    
77.3
  
EBITDA
    
641.3
    
569.3
    
1,806.3
    
1,975.2
  
   Depreciation and amortization
    
284.4
    
279.5
    
1,073.6
    
1,091.8
  
EBIT
    
356.9
    
289.8
    
732.7
    
883.4
  
   Interest, net
    
38.8
    
21.1
    
125.7
    
80.1
  
Income before taxes
    
318.1
    
268.7
    
607.0
    
803.3
  
   Taxes on income
    
68.4
    
105.6
    
218.2
    
332.2
  
Income from continuing operations
    
249.7
    
163.1
    
388.8
    
471.1
  
Discontinued operations, net of taxes
                      
61.3
  
Cumulative effect of change in accounting principle, net of taxes
          
(4.3
)
        
(4.3
)
Net income
  
$
249.7
  
$
158.8
  
$
388.8
  
$
528.1
  
                           

Free Cash Flow (unaudited)
  
Twelve Months Ended
  
   
March 30,
  
March 31,
  
   
2007
  
2006
  
       
(As Restated)
  
 
Free cash flow
  
$
671.5
  
$
462.9
  
Net cash used in investing activities
    
872.7
    
1,124.0
  
Acquisitions, net of cash acquired
    
(134.3
)
  
(44.1
)
Dispositions
   
2.8
    
0.5
  
Proceeds from redemption of preferred stock
    
126.5
        
Capital lease payments
    
39.4
    
8.0
  
Net cash provided by operating activities
  
$
1,578.6
  
$
1,551.3
  

 
Note:
Capital lease payments and proceeds from the sale of property and equipment (included in investing activities) are included in the calculation of free cash flow. Prior periods have been adjusted to conform with this presentation. Proceeds from the redemption of DynCorp preferred stock is included in other investing activities and is being excluded from the calculation of free cash flow.
 
The free cash flow for fiscal 2007 is net of $207 million of cash payments related to restructuring.

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Computer Sciences Corporation
June 13, 2007
 
 
Non-GAAP Financial Measures (continued)
 
 
The following table is presented to illustrate the impact of the special items on earnings per share. It also provides a reconciliation of the earnings per share amount relating this item to earnings per share for continuing operations. The earnings per share amounts presented below include non-GAAP measures. This table should be read in conjunction with the Consolidated Statements of Income within this release on which the GAAP earnings per share measures are presented. Earnings per share before special items provides a basis for comparing current operating performance to past and future operating performance. CSC management believes that these non-GAAP financial measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide another measure of the Company's profitability and ability to service its debt, and are considered important measures by financial analysts covering CSC and its peers. Management uses earnings before special items to evaluate business unit financial performance and it is one of the measures used in assessing management performance. One of the limitations associated with the use of earnings before special items (as compared to reported earnings) is that it does not reflect the complete financial results of the Company. CSC compensates for these limitations by providing a reconciliation between earnings before special items and reported earnings.

   
Fourth Quarter Ended
  
   
March 30, 2007
  
March 31, 2006
  
           
(As Restated)
  
       
EPS
      
EPS
  
   
Amount
  
(diluted)
  
Amount
  
(diluted)
  
 
Net income and EPS (diluted), as reported
  
$
249.7
  
$
1.42
  
$
158.8
  
$
0.84
  
Add: Cumulative change in accounting principle
                
4.3
    
0.02
  
                           
Income from total operations
    
249.7
    
1.42
    
163.1
    
0.86
  
Add back: Special items
    
25.0
    
0.14
    
15.2
    
0.08
  
Income from continuing operations before special items
  
$
274.7
  
$
1.56
  
$
178.3
  
$
0.94
  
                           
Average common shares outstanding for diluted EPS
  
176.397
 
 
 
 
 
189.683
  

   
Twelve Months Ended
  
   
March 30, 2007
  
March 31, 2006
  
           
(As Restated)
  
       
EPS
      
EPS
  
   
Amount
  
(diluted)
  
Amount
  
(diluted)
  
 
Net income and EPS (diluted), as reported
  
$
388.8
  
$
2.16
  
$
528.1
  
$
2.81
  
Less: Gain on discontinued operations
                
61.3
    
0.33
  
Add: Cumulative change in accounting principle
                
4.3
    
0.02
  
                           
Income from total operations
    
388.8
    
2.16
    
471.1
    
2.51
  
Add back: Special items
    
262.0
    
1.46
    
48.3
    
0.26
  
Income from continuing operations before special items
  
$
650.8
  
$
3.62
  
$
519.4
  
$
2.76
  
                           
Average common shares outstanding for diluted EPS
  
179.733
 
 
 
 
 
187.984
 

Notes:
All amounts are net of taxes.
 
Amounts are in millions except per-share amounts.
 
Per share amounts may not add due to rounding.

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