Debt

6 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

The following is a summary of the Company’s debt:

(in millions)	Interest Rates	Fiscal Year Maturities	September 30, 2021		March 31, 2021
Short-term debt and current maturities of long-term debt
Commercial paper(1)	(0.43)% - (0.15)%	2022	$	232	$	213
Current maturities of long-term debt	Various	2022 - 2023	179		556
Current maturities of finance lease liabilities	0.35% - 17.68%	2022 - 2023	334		398
Short-term debt and current maturities of long-term debt			$	745	$	1,167
Long-term debt, net of current maturities
€750 million Senior notes	0.45%	2028	$	862	$	—
€600 million Senior notes	0.95%	2032	688		—
$700 million Senior notes	1.80%	2027	694		—
$650 million Senior notes	2.375%	2029	644		—
EUR term loan	0.80%	2023 - 2024	—		469
$274 million Senior notes	4.45%	2023	—		154
$171 million Senior notes	4.45%	2023	—		165
$500 million Senior notes	4.25%	2025	—		504
$500 million Senior notes	4.125%	2026	—		496
£250 million Senior notes	2.75%	2025	—		343
€650 million Senior notes	1.75%	2026	750		760
$500 million Senior notes	4.75%	2028	—		506
$234 million Senior notes	7.45%	2030	—		268
Finance lease liabilities	0.35% - 17.68%	2022 - 2027	729		894
Borrowings for assets acquired under long-term financing	0.00% - 6.78%	2022 - 2027	441		672
Mandatorily redeemable preferred stock outstanding	6.00%	2023	63		63
Other borrowings	Various	2022 - 2023	5		5
Long-term debt			4,876		5,299
Less: current maturities			513		954
Long-term debt, net of current maturities			$	4,363	$	4,345

(1)At DXC’s option, DXC can borrow up to a maximum of €1 billion.

Senior Notes and Term Loans

During the first quarter of fiscal 2022, the Company used the proceeds from the sale of its HPS business to complete the retirement of the remaining $319 million of the two series of 4.45% senior notes due fiscal 2023. The Company also repurchased $33 million of its 4.125% senior notes due fiscal 2026 using the proceeds from the divestitures of other insignificant businesses and existing cash on hand.

Euro Senior Notes Issuance

During the second quarter of fiscal 2022, the Company issued (i) €750 million aggregate principal amount of its 0.450% senior notes due fiscal 2028 and (ii) €600 million aggregate principal amount of its 0.950% senior notes due fiscal 2032 (collectively, the “Euro Notes”). The proceeds from the Euro Notes were applied principally to the repayment in full of the €400 million aggregate principal amount of outstanding borrowings under its Euro-denominated term loan facility, the repayment of its U.S. dollar-denominated 4.25% senior notes due fiscal 2025 and the repayment of its Sterling-denominated 2.75% senior notes due fiscal 2025.

U.S. Dollar Senior Notes Issuance

During the second quarter of fiscal 2022, the Company issued (i) $700 million aggregate principal amount of its 1.80% senior notes due fiscal 2027, and (ii) $650 million aggregate principal amount of its 2.375% senior notes due fiscal 2029 (collectively, the “USD Notes”). The proceeds from the USD Notes were used for the repayment of its remaining 4.125% senior notes due fiscal 2026, its 4.750% senior notes due fiscal 2028 and its 7.45% senior notes due fiscal 2030.

The interest on the Company’s $700 million senior notes due fiscal 2027 and $650 million senior notes due fiscal 2029 are payable semi-annually in arrears, while the interest on the €650 million senior notes due fiscal 2026, €750 million senior notes due fiscal 2028 and €600 million senior notes due fiscal 2032 are payable annually in arrears. Generally, the Company’s notes are redeemable at the Company’s discretion at the then-applicable redemption premium plus accrued and unpaid interest.