10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2023

OR

☐ 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.: 001-38033

DXC TECHNOLOGY COMPANY

(Exact name of registrant as specified in its charter)

Nevada	61-1800317
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
20408 Bashan Drive, Suite 231
Ashburn, Virginia 20147
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (703) 972-7000

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	DXC	The New York Stock Exchange
1.750% Senior Notes Due 2026	DXC 26	The New York Stock Exchange

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  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes  o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or 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.

Large Accelerated Filer	x	Accelerated Filer	o
Non-accelerated Filer	o	Smaller reporting company		☐
		Emerging growth company		☐

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).

       ☐ Yes  x   No

193,643,560 shares of common stock, par value $0.01 per share, were outstanding on October 23, 2023.

TABLE OF CONTENTS

Item		Page
	PART I – FINANCIAL INFORMATION
1.	Financial Statements (unaudited)	1
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
3.	Quantitative and Qualitative Disclosures About Market Risk	50
4.	Controls and Procedures	50
	PART II – OTHER INFORMATION
1.	Legal Proceedings	51
1A.	Risk Factors	51
2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
3.	Defaults Upon Senior Securities	52
4.	Mine Safety Disclosures	52
5.	Other Information	52
6.	Exhibits	53

PART I

ITEM 1. FINANCIAL STATEMENTS

Index to Condensed Consolidated Financial Statements

	Page
Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2023 and September 30, 2022 (unaudited)	2
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2023 and September 30, 2022 (unaudited)	3
Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023 (unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2023 and September 30, 2022 (unaudited)	5
Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended September 30, 2023 and September 30, 2022 (unaudited)	6
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1–Summary of Significant Accounting Policies	8
Note 2–Divestitures	10
Note 3–Earnings Per Share	10
Note 4–Receivables	11
Note 5–Leases	11
Note 6–Fair Value	14
Note 7–Derivative Instruments	15
Note 8–Intangible Assets	18
Note 9–Goodwill	19
Note 10–Debt	20
Note 11–Revenue	21
Note 12–Restructuring Costs	22
Note 13–Pension and Other Benefit Plans	23
Note 14–Income Taxes	23
Note 15–Stockholders’ Equity	25
Note 16–Stock Incentive Plans	25
Note 17–Cash Flows	26
Note 18–Segment Information	27
Note 19–Commitments and Contingencies	30

1

DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended				Six Months Ended
(in millions, except per-share amounts)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Revenues	$	3,436	$	3,566	$	6,882	$	7,273
Costs of services (excludes depreciation and amortization and restructuring costs)	2,633		2,775		5,352		5,705
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	328		324		655		673
Depreciation and amortization	361		380		705		769
Restructuring costs	35		53		55		86
Interest expense	78		44		144		81
Interest income	(53)		(28)		(102)		(48)
Loss on disposition of businesses	2		32		7		3
Other income, net	(76)		(68)		(140)		(172)
Total costs and expenses	3,308		3,512		6,676		7,097
Income before income taxes	128		54		206		176
Income tax expense	29		26		65		45
Net income	99		28		141		131
Less: net income attributable to non-controlling interest, net of tax	—		1		6		2
Net income attributable to DXC common stockholders	$	99	$	27	$	135	$	129
Income per common share:
Basic	$	0.49	$	0.12	$	0.66	$	0.56
Diluted	$	0.49	$	0.12	$	0.65	$	0.55

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

			Three Months Ended				Six Months Ended
(in millions)			September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income			$	99	$	28	$	141	$	131
Other comprehensive loss, net of taxes:
	Foreign currency translation adjustments, net of tax (1)		(40)		(165)		(6)		(341)
	Cash flow hedges adjustments, net of tax (2)		4		2		7		2
	Pension and other post-retirement benefit plans, net of tax:
		Amortization of prior service cost, net of tax (3)	—		(2)		(2)		(4)
	Pension and other post-retirement benefit plans, net of tax		—		(2)		(2)		(4)
Other comprehensive loss, net of taxes			(36)		(165)		(1)		(343)
Comprehensive income (loss)			63		(137)		140		(212)
	Less: comprehensive (loss) income attributable to non-controlling interest		(1)		(3)		5		(2)
Comprehensive income (loss) attributable to DXC common stockholders			$	64	$	(134)	$	135	$	(210)

(1) Tax expense related to foreign currency translation adjustments was $2 and $2 for the three and six months ended September 30, 2023, respectively, and $4 and $9 for the three and six months ended September 30, 2022, respectively.

(2) Tax expense (benefit) related to cash flow hedges adjustments was $1 and $2 for the three and six months ended September 30, 2023, respectively, and $0 and $(1) for the three and six months ended September 30, 2022, respectively.

(3) Tax benefit related to amortization of prior service costs was $1 and $1 for the three and six months ended September 30, 2023, respectively, and $0 and $4 for the three and six months ended September 30, 2022, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	As of
(in millions, except per-share and share amounts)	September 30, 2023		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,412	$	1,858
Receivables and contract assets, net of allowance of $56 and $47	3,146		3,441
Prepaid expenses	559		565
Other current assets	232		255
Assets held for sale	—		5
Total current assets	5,349		6,124
Intangible assets, net of accumulated amortization of $5,751 and $5,670	2,436		2,569
Operating right-of-use assets, net	809		909
Goodwill	530		539
Deferred income taxes, net	542		460
Property and equipment, net of accumulated depreciation of $3,874 and $4,111	1,810		1,979
Other assets	3,229		3,247
Assets held for sale - non-current	4		18
Total Assets	$	14,709	$	15,845
LIABILITIES and EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	672		500
Accounts payable	618		782
Accrued payroll and related costs	600		569
Current operating lease liabilities	295		317
Accrued expenses and other current liabilities	1,569		1,836
Deferred revenue and advance contract payments	872		1,054
Income taxes payable	98		120
Liabilities related to assets held for sale	—		9
Total current liabilities	4,724		5,187
Long-term debt, net of current maturities	3,791		3,900
Non-current deferred revenue	706		788
Non-current operating lease liabilities	571		648
Non-current income tax liabilities and deferred tax liabilities	581		587
Other long-term liabilities	869		912
Liabilities related to assets held for sale - non-current	—		3
Total Liabilities	11,242		12,025
Commitments and contingencies
DXC stockholders’ equity:
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, none issued as of September 30, 2023 and March 31, 2023	—		—
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 200,789,520 issued as of September 30, 2023 and 218,058,482 issued as of March 31, 2023	2		2
Additional paid-in capital	8,280		9,121
Accumulated deficit	(4,143)		(4,665)
Accumulated other comprehensive loss	(774)		(774)
Treasury stock, at cost, 4,541,145 and 3,333,592 shares as of September 30, 2023 and March 31, 2023	(218)		(187)
Total DXC stockholders’ equity	3,147		3,497
Non-controlling interest in subsidiaries	320		323
Total Equity	3,467		3,820
Total Liabilities and Equity	$	14,709	$	15,845

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

DXC TECHNOLOGY COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash flows from operating activities:
Net income	$	141	$	131
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	719		786
Operating right-of-use expense	181		214
Share-based compensation	47		55
Deferred taxes	(102)		(103)
Gain on dispositions	(39)		(32)
Provision for losses on accounts receivable	2		—
Unrealized foreign currency exchange loss	22		69
Impairment losses and contract write-offs	14		21
Other non-cash charges, net	—		(2)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease (increase) in assets	223		(185)
Decrease in operating lease liability	(181)		(214)
Decrease in other liabilities	(652)		(365)
Net cash provided by operating activities	375		375
Cash flows from investing activities:
Purchases of property and equipment	(108)		(146)
Payments for transition and transformation contract costs	(110)		(114)
Software purchased and developed	(141)		(110)
Business dispositions	—		51
Proceeds from sale of assets	65		109
Other investing activities, net	10		17
Net cash used in investing activities	(284)		(193)
Cash flows from financing activities:
Borrowings of commercial paper	1,098		710
Repayments of commercial paper	(841)		(657)
Principal payments on long-term debt	—		(1)
Payments on finance leases and borrowings for asset financing	(231)		(274)
Proceeds from stock options and other common stock transactions	—		1
Taxes paid related to net share settlements of share-based compensation awards	(34)		(14)
Repurchase of common stock and advance payment for accelerated share repurchase	(505)		(272)
Other financing activities, net	(8)		(6)
Net cash used in financing activities	(521)		(513)
Effect of exchange rate changes on cash and cash equivalents	(16)		(91)
Net decrease in cash and cash equivalents including cash classified within current assets held for sale	(446)		(422)
Cash classified within current assets held for sale	—		10
Net decrease in cash and cash equivalents	(446)		(412)
Cash and cash equivalents at beginning of year	1,858		2,672
Cash and cash equivalents at end of period	$	1,412	$	2,260

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

	Three Months Ended September 30, 2023
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock(1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at June 30, 2023	210,584	$	2	$	8,677	$	(4,445)	$	(739)	$	(217)	$	3,278	$	325	$	3,603
Net Income						99						99				99
Other comprehensive loss								(35)				(35)		(1)		(36)
Share-based compensation expense				23								23				23
Acquisition of treasury stock										(1)		(1)				(1)
Share repurchase program(2)	(9,958)			(420)		204						(216)				(216)
Stock option exercises and other common stock transactions	164											—				—
Non-controlling interest distributions and other						(1)						(1)		(4)		(5)
Balance at September 30, 2023	200,790	$	2	$	8,280	$	(4,143)	$	(774)	$	(218)	$	3,147	$	320	$	3,467
	Three Months Ended September 30, 2022
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at June 30, 2022	232,995	$	2	$	9,708	$	(4,239)	$	(563)	$	(183)	$	4,725	$	324	$	5,049
Net income						27						27		1		28
Other comprehensive loss								(161)				(161)		(4)		(165)
Share-based compensation expense				25								25				25
Acquisition of treasury stock										(2)		(2)				(2)
Stock option exercises and other common stock transactions	283											—				—
Non-controlling interest distributions and other						1						1				1
Balance at September 30, 2022	233,278	$	2	$	9,733	$	(4,211)	$	(724)	$	(185)	$	4,615	$	321	$	4,936

6

	Six Months Ended September 30, 2023
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock(1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at March 31, 2023	218,058	$	2	$	9,121	$	(4,665)	$	(774)	$	(187)	$	3,497	$	323	$	3,820
Net income						135						135		6		141
Other comprehensive loss												—		(1)		(1)
Share-based compensation expense				45								45				45
Acquisition of treasury stock										(31)		(31)				(31)
Share repurchase program(2)	(20,934)			(886)		388						(498)				(498)
Stock option exercises and other common stock transactions	3,666											—				—
Non-controlling interest distributions and other						(1)						(1)		(8)		(9)
Balance at September 30, 2023	200,790	$	2	$	8,280	$	(4,143)	$	(774)	$	(218)	$	3,147	$	320	$	3,467
	Six Months Ended September 30, 2022
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at March 31, 2022	240,508	$	3	$	10,057	$	(4,450)	$	(385)	$	(173)	$	5,052	$	323	$	5,375
Net income						129						129		2		131
Other comprehensive loss								(339)				(339)		(4)		(343)
Share-based compensation expense				49								49				49
Acquisition of treasury stock										(12)		(12)				(12)
Share repurchase program	(8,851)	(1)		(374)		109						(266)				(266)
Stock option exercises and other common stock transactions	1,621			1								1				1
Non-controlling interest distributions and other						1						1				1
Balance at September 30, 2022	233,278	$	2	$	9,733	$	(4,211)	$	(724)	$	(185)	$	4,615	$	321	$	4,936

(1) 4,541,145 treasury shares as of September 30, 2023.

(2) On August 16, 2022, the U.S. Government enacted the Inflation Reduction Act (the “IRA”) into law. The IRA imposes a 1% excise tax on

share repurchases completed after December 31, 2022. We reflect the excise tax within equity as part of the repurchase of the common

stock.

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 – Summary of Significant Accounting Policies

Business

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world’s largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness and customer experience across their IT estates.

Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) as the “statements of comprehensive income (loss),” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income (loss) attributable to non-controlling interests are presented separately in the statements of comprehensive income (loss). All intercompany transactions and balances have been eliminated. Certain amounts reported in the previous year have been reclassified to conform to the current year presentation.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (“fiscal 2023”).

8

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Use of Estimates

The preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.

Recent Accounting Pronouncements

Recently issued Accounting Standards Updates (“ASUs”) effective after September 30, 2023 are not expected to have a material effect on DXC’s condensed consolidated financial statements.

9

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 2 – Divestitures

During the first six months of fiscal 2024 and fiscal 2023, the Company sold insignificant businesses that resulted in a loss of $7 million and $3 million, respectively.

Note 3 – Earnings per Share

Basic earnings per share (“EPS”) is computed using the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS:

	Three Months Ended				Six Months Ended
(in millions, except per-share amounts)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income attributable to DXC common stockholders:	$	99	$	27	$	135	$	129
Common share information:
Weighted average common shares outstanding for basic EPS	201.72		229.96		205.90		231.21
Dilutive effect of stock options and equity awards	1.34		3.21		3.00		3.72
Weighted average common shares outstanding for diluted EPS	203.06		233.17		208.90		234.93
Earnings per share:
Basic	$	0.49	$	0.12	$	0.66	$	0.56
Diluted	$	0.49	$	0.12	$	0.65	$	0.55

Certain share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have had an anti-dilutive effect. The number of awards excluded were as follows:

	Three Months Ended		Six Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Stock Options	960,455	475,559	924,990	478,128
Restricted Stock Units	1,556,542	2,724,766	1,480,781	2,065,992
Performance Stock Units	1,700,588	1,079,287	35,604	721,803

10

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 4 – Receivables

Allowance for Doubtful Accounts

The following table presents the change in balance for the allowance for doubtful accounts:

	As of
(in millions)	September 30, 2023		March 31, 2023
Beginning balance	$	47	$	55
Provisions for losses on accounts receivable	2		(1)
Other adjustments to allowance and write-offs	7		(7)
Ending balance	$	56	$	47

Receivables Facility

The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified as of September 30, 2023, the “Receivables Facility”) with certain unaffiliated financial institutions (the “Purchasers”) for the sale of commercial accounts receivable in the United States up to a maximum amount of $400 million. The Receivables Facility was amended on July 28, 2023 extending the termination date to July 26, 2024.

As of September 30, 2023, the total availability under the Receivables Facility was $384 million and the amount sold to the Purchasers was $378 million, which was derecognized from the Company’s balance sheet. As of September 30, 2023, the Company recorded an asset of $6 million within accounts receivable because the amount of cash proceeds received by the Company under the Receivables Facility was less than the total availability.

The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.

Note 5 – Leases

The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	91	$	108	$	181	$	214
Short-term lease cost	9		11		16		19
Variable lease cost	16		17		31		39
Sublease income	(6)		(6)		(10)		(10)
Total operating costs	$	110	$	130	$	218	$	262

11

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	181	$	214
ROU assets obtained in exchange for operating lease liabilities(1)	$	95	$	117

(1) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU operating lease assets	Operating right-of-use assets, net	$	809	$	909
Operating lease liabilities	Current operating lease liabilities	$	295	$	317
Operating lease liabilities	Non-current operating lease liabilities	571		648
Total operating lease liabilities		$	866	$	965

The weighted-average operating lease term was 4.0 years and 3.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average operating lease discount rate was 4.4% and 3.9% as of September 30, 2023 and March 31, 2023, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	169	$	285	$	196	$	112	$	89	$	103	$	954
Less: imputed interest													(88)
Total operating lease liabilities													$	866

12

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Finance Leases

The components of finance lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization of right-of-use assets	$	37	$	55	$	79	$	116
Interest on lease liabilities	3		4		7		9
Total finance lease expense	$	40	$	59	$	86	$	125

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)	Six Months Ended September 30, 2023		Six Months Ended September 30, 2022
Interest paid for finance lease liabilities – Operating cash flows	$	7	$	9
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	124		168
Total cash paid in the measurement of finance lease obligations	$	131	$	177
Capital expenditures through finance lease obligations(1)	$	41	$	44

(1) See Note 17 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU finance lease assets	Property and Equipment, net	$	327	$	424
Finance lease	Short-term debt and current maturities of long-term debt	$	196	$	215
Finance lease	Long-term debt, net of current maturities	259		287
Total finance lease liabilities(1)		$	455	$	502

(1) See Note 10 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average finance lease discount rate was 3.8% and 3.4% as of September 30, 2023 and March 31, 2023, respectively.

13

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following maturity analysis presents expected undiscounted cash payments for finance leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	108	$	173	$	110	$	64	$	21	$	4	$	480
Less: imputed interest													(25)
Total finance lease liabilities													$	455

Note 6 – Fair Value

Fair Value Measurements on a Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding pension assets and derivative assets and liabilities. See Note 7 – “Derivative Instruments” for information about derivative assets and liabilities. Note 10 – “Debt” includes information about the estimated fair value of the Company’s long-term debt. There were no transfers between any of the levels during the periods presented.

	Fair Value Hierarchy
(in millions)	September 30, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	32	$	32	$	—	$	—
Time deposits(1)	136		136		—		—
Other securities(2)	46		—		44		2
Total assets	$	214	$	168	$	44	$	2

	March 31, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	75	$	75	$	—	$	—
Time deposits(1)	37		37		—		—
Other securities(2)	48		—		46		2
Total assets	$	160	$	112	$	46	$	2
Liabilities:
Contingent consideration(3)	$	2	$	—	$	—	$	2
Total liabilities	$	2	$	—	$	—	$	2

(1) Cost basis approximated fair value due to the short period of time to maturity.

(2) Other securities include available-for-sale equity security investments with Level 2 inputs that have a cost basis of $51 million and $52 million as of September 30, 2023 and March 31, 2023, respectively. For the periods presented, gains and losses are insignificant and are included in other income, net in the Company’s statements of operations.

(3) During the first six months of fiscal 2024, the Company completed the payment for its contingent consideration obligation.

14

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 7 – Derivative Instruments

In the normal course of business, the Company is exposed to interest rate and foreign exchange rate fluctuations. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not use derivative instruments for trading or any speculative purposes.

Derivatives Designated for Hedge Accounting

Cash flow hedges

The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Euro and Indian Rupee-denominated obligations and forecasted transactions. The notional amounts of foreign currency forward contracts designated as cash flow hedges as of September 30, 2023 and March 31, 2023 were $889 million and $842 million, respectively. As of September 30, 2023, the related forecasted transactions extend through September 2025.

During the three and six months ended September 30, 2023 and September 30, 2022, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

See Note 15 - “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting. As of September 30, 2023, $1 million of the existing amount of gain related to the cash flow hedge reported in accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

Derivatives Not Designated for Hedge Accounting

The derivative instruments not designated as hedges for purposes of hedge accounting include certain short-term foreign currency forward contracts. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates.

Foreign currency forward contracts

The Company manages the exposure to fluctuations in foreign currencies by using short-term foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions. The net notional amounts of the foreign currency forward contracts outstanding as of September 30, 2023 and March 31, 2023 were $2.4 billion and $2.5 billion, respectively.

15

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following table presents the foreign currency (gain) loss to Other income, net:

	For the Three Months Ended				For the Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign currency remeasurement (1)	$	25	$	40	$	21	$	76
Undesignated foreign currency forward contracts (2)	(26)		(41)		(30)		(79)
Total - Foreign currency gain	$	(1)	$	(1)	$	(9)	$	(3)

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.

(2) Movements from hedges used to manage the Company’s foreign currency remeasurement exposure, and the associated costs of the hedging program.

Fair Value of Derivative Instruments

All derivative instruments are recorded at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables present the fair values of derivative instruments included in the balance sheets:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
Derivatives designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	9	$	6
	Accrued expenses and other current liabilities	$	6	$	13
Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	35	$	15
	Accrued expenses and other current liabilities	$	13	$	16

The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates and is based on the period-end foreign currency exchange rates and forward points that are classified as Level 2 inputs.

Other Risks for Derivative Instruments

The Company is exposed to the risk of losses in the event of non-performance by the counterparties to its derivative contracts. The amount subject to credit risk related to derivative instruments is generally limited to the amount, if any, by which a counterparty’s obligations exceed the obligations of the Company with that counterparty. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. With respect to its foreign currency derivatives, as of September 30, 2023, there were six counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $21 million.

The Company also enters into enforceable master netting arrangements with some of its counterparties. However, for financial reporting purposes, it is the Company’s policy not to offset derivative assets and liabilities despite the existence of enforceable master netting arrangements. The potential effect of such netting arrangements on the Company’s balance sheets is not material for the periods presented.

16

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Non-Derivative Financial Instruments Designated for Hedge Accounting

The Company applies hedge accounting for foreign currency-denominated debt used to manage foreign currency exposures on its net investments in certain non-U.S. operations. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged.

Net Investment Hedges

DXC seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain non-U.S. operations with foreign currency-denominated debt. For foreign currency-denominated debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates. For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation. Gains or losses on individual net investments in non-U.S. operations are reclassified to earnings from accumulated other comprehensive income (loss) when such net investments are sold or substantially liquidated.

As of September 30, 2023 and March 31, 2023, DXC had $265 million and $272 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S. subsidiaries. For the three and six months ended September 30, 2023, the pre-tax gain on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive loss was $8 million and $7 million, respectively.

17

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 8 – Intangible Assets

Intangible assets consisted of the following:

	As of September 30, 2023						As of March 31, 2023
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	3,993	$	3,205	$	788	$	4,009	$	3,290	$	719
Customer related intangible assets	3,887		2,409		1,478		3,927		2,260		1,667
Other intangible assets	307		137		170		303		120		183
Total intangible assets	$	8,187	$	5,751	$	2,436	$	8,239	$	5,670	$	2,569

The components of amortization expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Intangible asset amortization	$	195	$	198	$	378	$	397
Transition and transformation contract cost amortization(1)	54		53		102		105
Total amortization expense	$	249	$	251	$	480	$	502

(1)Transaction and transformation contract costs are included within other assets on the balance sheets.

Estimated future amortization related to intangible assets as of September 30, 2023 is as follows:

Fiscal Year	(in millions)
Remainder of 2024	$	402
2025	656
2026	588
2027	406
2028	170
Thereafter	214
Total	$	2,436

18

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 9 – Goodwill

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of September 30, 2023.

(in millions)	GBS		GIS		Total
Balance as of March 31, 2023, net	$	539	$	—	$	539
Foreign currency translation	(9)		—		(9)
Balance as of September 30, 2023, net	$	530	$	—	$	530
Goodwill, gross	5,020		5,066		10,086
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of September 30, 2023, net	$	530	$	—	$	530

The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances.

Goodwill Impairment Analyses

The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

The Company concluded that, as a result of its qualitative assessment performed on July 1, 2023, it remained more likely than not that the fair value of the GBS reporting unit exceeds its carrying amount.

As of September 30, 2023, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators and therefore, it was unnecessary to perform an interim goodwill impairment test as of September 30, 2023.

19

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 10 – Debt

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

(in millions)	Interest Rates	Fiscal Year Maturities	9/30/2023(1)		3/31/2023(1)
Short-term debt and current maturities of long-term debt
Commercial paper(2)	4.08% - 4.33%	2024	$	348	$	109
Current maturities of long-term debt	Various	2024 - 2025	128		176
Current maturities of finance lease liabilities	0.00% - 14.59%	2024 - 2025	196		215
Short-term debt and current maturities of long-term debt			$	672	$	500
Long-term debt, net of current maturities
€650 million Senior notes	1.75%	2026	687		704
$700 million Senior notes	1.80%	2027	696		696
€750 million Senior notes	0.45%	2028	790		810
$650 million Senior notes	2.375%	2029	646		645
€600 million Senior notes	0.95%	2032	630		646
Finance lease liabilities	0.00% - 14.59%	2024 - 2029	455		502
Borrowings for assets acquired under long-term financing	0.00% - 9.78%	2024 - 2029	209		285
Other borrowings	Various	2024	2		3
Long-term debt			4,115		4,291
Less: current maturities			324		391
Long-term debt, net of current maturities			$	3,791	$	3,900

(1)The carrying amounts of the senior notes as of September 30, 2023 and March 31, 2023, include the remaining principal outstanding of $3,468 million and $3,523 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $19 million and $22 million, respectively.

(2)At DXC’s option, DXC can borrow up to a maximum of €1 billion or its equivalent in £ and $.

Term Loan

During the second quarter of fiscal 2023, the Company entered into a $500 million term loan credit agreement (as amended, the “USD Term Loan”) with certain unaffiliated financial institutions. The USD Term Loan was required to be drawn down by September 1, 2023. The Company did not draw on the USD Term Loan and the facility has been terminated during the second quarter of fiscal 2024.

Fair Value of Debt

The estimated fair value of the Company’s long-term debt, excluding finance lease liabilities, was $3.1 billion and $3.3 billion as of September 30, 2023 and March 31, 2023, respectively, compared with carrying value of $3.7 billion and $3.8 billion as of September 30, 2023 and March 31, 2023, respectively.

20

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 11 – Revenue

Revenue Recognition

The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
United States	$	1,002	$	1,093	$	2,004	$	2,224
United Kingdom	460		452		925		925
Other Europe	1,051		1,064		2,115		2,202
Australia	330		371		672		762
Other International	593		586		1,166		1,160
Total Revenues	$	3,436	$	3,566	$	6,882	$	7,273

The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 18 – “Segment Information” for the Company’s segment disclosures.

Remaining Performance Obligations

As of September 30, 2023, approximately $18.5 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 24% of these remaining performance obligations in fiscal 2024, with the remainder of the balance recognized thereafter.

Contract Balances

The following table provides information about the balances of the Company’s trade receivables and contract assets and contract liabilities:

	As of
(in millions)	September 30, 2023		March 31, 2023
Trade receivables, net	$	2,081	$	2,269
Contract assets	$	377	$	366
Contract liabilities	$	1,578	$	1,842

Change in contract liabilities were as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Balance, beginning of period	$	1,842	$	1,915
Deferred revenue	873		1,075
Recognition of deferred revenue	(1,085)		(1,145)
Currency translation adjustment	(23)		(168)
Other	(29)		(21)
Balance, end of period	$	1,578	$	1,656

21

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 12 – Restructuring Costs

The composition of restructuring liabilities by financial statement line item is as follows:

	As of
(in millions)	September 30, 2023		March 31, 2023
Accrued expenses and other current liabilities	$	60	$	105
Other long-term liabilities	15		22
Total	$	75	$	127

Summary of Restructuring Plans

Fiscal 2024 Plan

During fiscal 2024, management approved global cost savings initiatives designed to better align the Company’s facilities and data centers (the “Fiscal 2024 Plan”).

Restructuring Liability Reconciliations by Plan

	Restructuring Liability as of March 31, 2023		Costs Expensed, Net of Reversals		Costs Not Affecting Restructuring Liability(1)		Cash Paid		Other(2)		Restructuring Liability as of September 30, 2023
Fiscal 2024 Plan
Workforce Reductions	$	—	$	—	$	—	$	—	$	—	$	—
Facilities Costs	—		34		(27)		(1)		—		6
	—		34		(27)		(1)		—		6
Fiscal 2023 Plan
Workforce Reductions	$	79	$	2	$	—	$	(43)	$	—	$	38
Facilities Costs	1		14		(4)		(11)		1		1
	80		16		(4)		(54)		1		39
Other Prior Year and Acquired Plans
Workforce Reductions	$	45	$	(1)	$	—	$	(14)	$	(1)	$	29
Facilities Costs	2		6		(1)		(6)		—		1
	47		5		(1)		(20)		(1)		30
Total	$	127	$	55	$	(32)	$	(75)	$	—	$	75

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.

(2) Foreign currency translation adjustments.

Included in restructuring costs for the six months ended September 30, 2023 is $14 million related to amortization of the right-of-use asset and interest expense for leased facilities that have been vacated but are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.

22

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 13 – Pension and Other Benefit Plans

Defined Benefit Plans

The components of net periodic pension income were:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Service cost	$	15	$	18	$	30	$	37
Interest cost	77		63		156		130
Expected return on assets	(112)		(122)		(226)		(254)
Amortization of prior service costs	(1)		(2)		(3)		(4)
Recognition of actuarial loss	—		1		—		1
Net periodic pension income	$	(21)	$	(42)	$	(43)	$	(90)

The service cost component of net periodic pension income is presented in costs of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net.

Note 14 – Income Taxes

The Company’s effective tax rate (“ETR”) was 22.7% and 48.1% for the three months ended September 30, 2023 and September 30, 2022, respectively, and 31.6% and 25.6% for the six months ended September 30, 2023 and September 30, 2022, respectively. For the three and six months ended September 30, 2023, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, a decrease in valuation allowances on deferred tax assets, and the foreign tax credit. For the three months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and the tax impact of business divestitures. For the six months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, tax impact of business divestitures, U.S. tax on foreign income, and a decrease in unrecognized tax benefits due to income tax audit settlements and statute of limitation expirations.

The majority of our global unremitted foreign earnings have been taxed or would be exempt from U.S. tax upon repatriation. Such earnings and all current foreign earnings are not indefinitely reinvested. The following earnings are considered indefinitely reinvested: approximately $471 million that could be subject to U.S. federal tax when repatriated to the U.S. under section 1.245A-5(b) of the final Treasury regulations; and approximately $200 million of our accumulated earnings in India. A portion of these indefinitely reinvested earnings may be subject to foreign and U.S. state tax consequences when remitted. The Company will continue to evaluate its position in the future based on its future strategy and cash needs.

In connection with the merger of Computer Sciences Corporation (“CSC”) and the Enterprise Services business of Hewlett Packard Enterprise Company (the “HPES Merger”), the Company entered into a tax matters agreement with Hewlett Packard Enterprise Company (“HPE”). HPE generally will be responsible for tax liabilities arising prior to the HPES Merger, and DXC is liable to HPE for income tax receivables it receives related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $16 million tax indemnification receivable related to uncertain tax positions, a $52 million tax indemnification receivable related to other tax payables, and a $91 million tax indemnification payable related to other tax receivables.

23

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In connection with the spin-off of the Company’s former U.S. public sector business (the “USPS Separation”), the Company entered into a tax matters agreement with Perspecta Inc. (including its successors and permitted assigns, “Perspecta”). The Company generally will be responsible for tax liabilities arising prior to the USPS Separation, and Perspecta is liable to the Company for income tax receivables related to pre-spin-off periods. Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE. The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $17 million tax indemnification receivable from Perspecta related to other tax receivables and a $6 million tax indemnification payable to Perspecta related to income tax and other tax payables.

In connection with the sale of its healthcare provider software business (“HPS”), the Company entered into a tax matters agreement with Dedalus. Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of the HPS business.

The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal 2009 through the tax year ended October 31, 2018. With respect to CSC’s fiscal 2009 through 2017 federal tax returns, the Company participated in settlement negotiations with the IRS Office of Appeals. The IRS examined several issues for these tax years that resulted in various audit adjustments. The Company and the IRS Office of Appeals have settled various audit adjustments, and we disagree with the IRS’ disallowance of certain losses and deductions resulting from restructuring costs and tax planning strategies in previous years. As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the U.S. Tax Court, these matters are not fully reserved and would result in incremental federal and state tax expense and cash tax payments of approximately $491 million (including estimated interest and penalties) for the unreserved portion of these items if we do not prevail. We have received notices of deficiency with respect to fiscal 2009, 2010, 2011 and 2013 and have timely filed petitions with the U.S. Tax Court. During the first six months of fiscal 2024, some of these cases were dismissed, but the dismissals were procedural in nature only and do not impact the Company’s potential liability for the aforementioned fiscal years. We do not expect the U.S. Tax Court matters to be resolved in the next 12 months.

The Company’s fiscal years 2009, 2010, and 2013 are in the U.S. Tax Court, and consequently these years will remain open until such proceedings have concluded. The statute of limitations on assessments related to a refund claim for fiscal year 2012 is open through February 28, 2025. The Company has agreed to extend the statute of limitations for fiscal and tax return years 2014 through 2020 to September 30, 2024. The Company expects to reach resolution for fiscal and tax return years 2009 through 2020 no earlier than fiscal 2025.

The Company may settle certain other tax examinations for different amounts than the Company has accrued as uncertain tax positions. Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future. For the three months ended September 30, 2023, the Company’s liability for uncertain tax positions increased by $2 million (excluding interest and penalties and related tax attributes) primarily due to the benefit of U.S. research and development income tax credits. The Company believes the outcomes that are reasonably possible within the next 12 months to result in a reduction in its liability for uncertain tax positions, excluding interest, penalties, and tax carryforwards, would be approximately $14 million.

24

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 15 – Stockholders’ Equity

Share Repurchases

The details of shares repurchased during the six months ended September 30, 2023 and September 30, 2022 are shown below:

	Fiscal 2024					Fiscal 2023
Fiscal Period	Number of Shares Repurchased	Average Price Per Share		Amount (in millions)		Number of Shares Repurchased	Average Price Per Share		Amount (in millions)
1st Quarter	10,975,643	$	25.53	$	280	8,850,912	$	30.09	$	266
2nd Quarter	9,958,585	$	21.50	214		—	$	—	—
Total	20,934,228	$	23.61	$	494	8,850,912	$	30.09	$	266

Accumulated Other Comprehensive Loss

The following table shows the changes in accumulated other comprehensive loss, net of taxes:

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2023	$	(985)	$	(7)	$	218	$	(774)
Other comprehensive income before reclassifications	(5)		5		—		—
Amounts reclassified from accumulated other comprehensive loss	—		2		(2)		—
Balance at September 30, 2023	$	(990)	$	—	$	216	$	(774)

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2022	$	(651)	$	10	$	256	$	(385)
Other comprehensive loss before reclassifications	(337)		11		—		(326)
Amounts reclassified from accumulated other comprehensive loss	—		(9)		(4)		(13)
Balance at September 30, 2022	$	(988)	$	12	$	252	$	(724)

Note 16 – Stock Incentive Plans

Restricted Stock Units and Performance-Based Restricted Stock Units

Restricted stock units (“RSUs”) represent the right to receive one share of DXC common stock upon a future settlement date, subject to vesting and other terms and conditions of the award, plus any dividend equivalents accrued during the award period. The Company also grants performance-based restricted stock units (“PSUs”), which generally vest over a three-year period. The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified market- and performance-based criteria over the three-year vesting period. The fair value of RSUs and PSUs is based on the Company’s common stock closing price on the grant date. For PSUs with a market-based condition, DXC uses a Monte Carlo simulation model to value the grants.

25

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

	Employee Equity Plan			Director Equity Plan
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of March 31, 2023	7,449,379	$	37.11	147,487	$	35.80
Granted	5,105,366	$	25.16	124,000	$	19.35
Settled	(3,918,850)	$	23.48	(69,189)	$	31.68
Canceled/Forfeited	(718,992)	$	43.13	—	$	—
Outstanding as of September 30, 2023	7,916,903	$	35.29	202,298	$	27.13

Share-Based Compensation

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total share-based compensation cost	$	24	$	27	$	47	$	55
Related income tax benefit	$	4	$	3	$	7	$	6

Note 17 – Cash Flows

Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for:
Interest	$	135	$	74
Taxes on income, net of refunds (1)	$	235	$	230
Non-cash activities:
Operating:
ROU assets obtained in exchange for lease, net (2)	$	95	$	117
Assets acquired under long-term financing	$	4	$	37
Investing:
Capital expenditures in accounts payable and accrued expenses	$	96	$	—
Capital expenditures through finance lease obligations	$	41	$	44
Assets acquired under long-term financing	$	27	$	6
Financing:
Shares repurchased but not settled in cash (3)	$	9	$	—

(1) Income tax refunds were $18 million and $30 million for the six months ended September 30, 2023 and September 30, 2022, respectively.

(2) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively.

(3) On August 16, 2022, the U.S. government enacted the IRA into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.

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DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 18 – Segment Information

DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. DXC's chief operating decision maker ("CODM"), the chief executive officer, obtains, reviews, and manages the Company’s financial performance based on these segments. The CODM uses these results, in part, to evaluate the performance of, and allocate resources to, each of the segments.

Global Business Services (“GBS”)

GBS provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. GBS offerings include:

•Analytics and Engineering. Our portfolio of analytics services and extensive partner ecosystem help customers gain rapid insights, automate operations, and accelerate their transformation journeys. We provide software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

•Applications. We help simplify, modernize, and accelerate mission-critical applications that support business agility and growth through our Applications services. We are the engineers that enable our customers to take advantage of the latest digital platforms with both customized and pre-packaged applications, ensure resiliency, launch new products and enter new markets with minimal disruption. We help customers define, execute and manage their enterprise applications strategy.

•Insurance Software and Business Process Services. We partner with insurance clients, to modernize and run IT systems, provide proprietary modular insurance software and platforms, and operate the full spectrum of insurance business process services. We also help operate and continuously improve bank cards, payment and lending processes and operations, and customer experience operations.

Global Infrastructure Services (“GIS”)

GIS provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. GIS offerings include:

•Security. Our Security services help customers assess risk and proactively address all facets of the security environment, from threat intelligence to compliance. We leverage proven methodologies, intelligent automation and industry-leading partners to tailor security solutions to customers’ unique business needs. Our experts weave cyber resilience into IT security, operations and culture. Whether migrating to the cloud, protecting data with a Zero Trust strategy or managing a security operations center, our Security services enable our customers to focus on their business.

•Cloud Infrastructure and IT Outsourcing (“ITO”). We enable customers to do Cloud Right™, making the right investments at the right time and on the right platforms. We orchestrate hybrid cloud and multicloud environments, ensuring private and public clouds, servers and mainframes operate effectively together. We provide companies with tailored plans for cloud migration and optimization to enable successful transformation. We leverage our deep expertise in legacy IT and drive innovation with reliable, secure, mission-critical IT Outsourcing services – from compute and data center, to storage and backup, to network, to mainframe and to business continuity – providing a clear path to modernization.

•Modern Workplace. Our Modern Workplace services put the employee experience first, helping them achieve new levels of productivity, engagement and collaboration while working seamlessly and securely on any device. Organizations are empowered to deliver a consumer-like experience, centralize IT management and support services, and improve the total cost of ownership.

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DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Segment Measures

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Three Months Ended September 30, 2023
Revenues	$	1,709	$	1,727	$	3,436	$	—	$	3,436
Segment profit	$	213	$	101	$	314	$	(63)	$	251
Depreciation and amortization(1)	$	49	$	197	$	246	$	26	$	272
Three Months Ended September 30, 2022
Revenues	$	1,713	$	1,853	$	3,566	$	—	$	3,566
Segment profit	$	218	$	114	$	332	$	(63)	$	269
Depreciation and amortization(1)	$	40	$	216	$	256	$	23	$	279

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Six Months Ended September 30, 2023
Revenues	$	3,412	$	3,470	$	6,882	$	—	$	6,882
Segment profit	$	405	$	192	$	597	$	(122)	$	475
Depreciation and amortization(1)	$	94	$	381	$	475	$	52	$	527
Six Months Ended September 30, 2022
Revenues	$	3,471	$	3,802	$	7,273	$	—	$	7,273
Segment profit	$	428	$	241	$	669	$	(141)	$	528
Depreciation and amortization(1)	$	81	$	434	$	515	$	49	$	564

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $89 million and $101 million for the three months ended September 30, 2023 and 2022, respectively, and $178 million and $205 million for the six months ended September 30, 2023 and 2022, respectively.

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DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Reconciliation of Reportable Segment Profit to Consolidated Total

The Company's management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenues less cost of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on DXC's foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs generally include certain corporate function costs, stock-based compensation expense, pension and other post-retirement benefit (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs and amortization of acquired intangible assets.

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Profit
Total profit for reportable segments	$	314	$	332	$	597	$	669
All other loss	(63)		(63)		(122)		(141)
Subtotal	$	251	$	269	$	475	$	528
Interest income	53		28		102		48
Interest expense	(78)		(44)		(144)		(81)
Restructuring costs	(35)		(53)		(55)		(86)
Transaction, separation and integration-related costs	(3)		(4)		(4)		(6)
Amortization of acquired intangible assets	(89)		(101)		(178)		(205)
Merger related indemnification	(2)		—		(13)		(10)
SEC Matter	—		(8)		—		(8)
Gains (losses) on dispositions	33		(32)		28		(3)
Impairment losses	(2)		—		(5)		—
Pension and OPEB actuarial and settlement losses	—		(1)		—		(1)
Income before income taxes	$	128	$	54	$	206	$	176

Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.

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DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 19 – Commitments and Contingencies

Commitments

Minimum purchase commitments as of September 30, 2023 were as follows:

Fiscal year	Minimum Purchase Commitment
(in millions)
Remainder of 2024	$	349
2025	616
2026	536
2027	119
2028	75
Thereafter	23
Total	$	1,718

Contingencies

Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise: On August 18, 2016, this purported class and collective action was filed in the U.S. District Court for the Northern District of California, against HP and HPE alleging violations of the Federal Age Discrimination in Employment Act (“ADEA”) and California state law, in connection with workforce reductions that occurred in or after August 2012 in California, and in or after as early as December 2014 in other U.S. locations. Former business units of HPE now owned by the Company, and former business units of the Company now owned by Peraton (formerly Perspecta), may be proportionately liable for any recovery by plaintiffs in this matter.

In December 2020, Plaintiffs filed a motion for preliminary certification of the collective action, which Defendants opposed. In April 2021, the court granted Plaintiffs’ motion for preliminary certification and lifted the previously imposed stay of the action. In November 2021, notice was sent to putative members of the ADEA collectives regarding participation in the case. In February 2022, the notice period closed. In September 2023, the parties entered into a settlement agreement to resolve the matter and submitted it to the District Court for approval. In October 2023, the District Court entered an order preliminarily approving the proposed settlement.

Securities Litigation: Previously disclosed securities litigation matters have been dismissed, with one case remaining, in the Superior Court of the State of California.

On August 20, 2019, a purported class action lawsuit was filed in the Superior Court of the State of California, County of Santa Clara, against the Company, directors of the Company, and a former officer of the Company, among other defendants. The action asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, and is premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s prospects and expected performance. The putative class of plaintiffs includes former shareholders of Computer Sciences Corporation (“CSC”) who exchanged their CSC shares for the Company’s common stock pursuant to the offering documents filed with the Securities and Exchange Commission in connection with the April 2017 transaction that formed DXC.

The State of California action had been stayed pending the outcome of the substantially similar federal action filed in the United States District Court for the Northern District of California. The federal action was dismissed with prejudice in December 2021. Thereafter, the state court lifted the stay and entered an order permitting additional briefing by the parties. In March 2022, Plaintiffs filed an amended complaint, which the Company moved to dismiss. In August 2022, the Court granted the Company’s motion to dismiss, but permitted Plaintiffs to amend and refile their complaint. In September 2022, Plaintiffs filed a second amended complaint, which the Company moved to dismiss. In January 2023, the Court issued an order denying the Company’s motion to dismiss the second amended complaint. In March 2023, the Court entered a scheduling order setting a trial date for September 2025. A hearing on Plaintiffs’ motion for class certification is scheduled for January 2024. The case is otherwise in discovery.

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DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company believes that the final remaining lawsuit described above is also without merit, and intends to vigorously defend it.

Tax Examinations: The Company is under IRS examination in the U.S. on its federal income tax returns for certain fiscal years and is in disagreement with the IRS on certain tax positions, which are currently being contested in the U.S. Tax Court. For more detail, see Note 14 – “Income Taxes” for further information.

OFAC Matter: In August 2022, the Company submitted an initial notification of voluntary self-disclosure to the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) regarding potential violations of U.S. sanctions on Russia. The self-disclosure pertains to the Company’s sale of Luxoft’s Russia business to IBS Holding LLC in April 2022, as part of the Company’s exit from the Russian market following Russia’s invasion of Ukraine. The Company has also submitted an initial notification of voluntary self-disclosure to the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) regarding potential export control violations in connection with its exit from the Russian market. The Company’s review of potential sanctions violations is ongoing, and the Company may make further disclosures to relevant agencies as its review continues.

In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management’s view of the expected outcome. DXC consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

All statements and assumptions contained in this Quarterly Report on Form 10-Q and in the documents incorporated by reference that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” Forward-looking statements often include words such as “anticipates,” “believes,” “estimates,” “expects,” “forecast,” “goal,” “intends,” “objective,” “plans,” “projects,” “strategy,” “target,” and “will” and words and terms of similar substance in discussions of future operating or financial performance. These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.

Forward-looking statements include, among other things, statements with respect to our future financial condition, results of operations, cash flows, business strategies, operating efficiencies or synergies, divestitures, competitive position, growth opportunities, share repurchases, dividend payments, plans and objectives of management and other matters. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control.

Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to:

•our inability to succeed in our strategic objectives;

•the risk of liability or damage to our reputation resulting from security incidents, including breaches, and cyber-attacks to our systems and networks and those of our business partners, insider threats, disclosure of sensitive data or failure to comply with data protection laws and regulations in a rapidly evolving regulatory environment; in each case, whether deliberate or accidental;

•our inability to develop and expand our service offerings to address emerging business demands and technological trends, including our inability to sell differentiated services amongst our offerings;

•our inability to compete in certain markets and expand our capacity in certain offshore locations and risks associated with such offshore locations, such as the on-going conflict between Russia and Ukraine and the conflict between Israel and Hamas;

•failure to maintain our credit rating and ability to manage working capital, refinance and raise additional capital for future needs;

•public health crises such as the COVID-19 pandemic;

•our indebtedness;

•the competitive pressures faced by our business;

•our inability to accurately estimate the cost of services, and the completion timeline of contracts;

•execution risks by us and our suppliers, customers, and partners;

•the risks associated with climate change and natural disasters;

•increased scrutiny of, and evolving expectations for, sustainability and environmental, social and governance (“ESG”) initiatives;

•our inability to retain and hire key personnel and maintain relationships with key partners;

•the risks associated with prolonged periods of inflation or current macroeconomic conditions, including the current decline in economic growth rates in the United States and in other countries, the possibility of reduced spending by customers in the areas we serve, the success of our cost-takeout efforts, continuing unfavorable foreign exchange rate movements, and our ability to close new deals in the event of an economic slowdown;

•the risks associated with our international operations, such as risks related to currency exchange rates;

•our inability to comply with existing and new laws and regulations, including social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands;

•our inability to achieve the expected benefits of our restructuring plans;

•inadvertent infringement of third-party intellectual property rights or our inability to protect our own intellectual property assets;

•our inability to procure third-party licenses required for the operation of our products and service offerings;

•risks associated with disruption of our supply chain;

•our inability to maintain effective disclosure controls and internal control over financial reporting;

•potential losses due to asset impairment charges;

•our inability to pay dividends or repurchase shares of our common stock;

•pending investigations, claims and disputes and any adverse impact on our profitability and liquidity;

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•disruptions in the credit markets, including disruptions that reduce our customers’ access to credit and increase the costs to our customers of obtaining credit;

•counterparty default risk in our hedging program;

•our failure to bid on projects effectively;

•financial difficulties of our customers and our inability to collect receivables;

•our inability to maintain and grow our customer relationships over time and to comply with customer contracts or government contracting regulations or requirements;

•our inability to succeed in our strategic transactions;

•changes in tax rates, tax laws, and the timing and outcome of tax examinations;

•risks following the merger of Computer Sciences Corporation (“CSC”) and Enterprise Services business of Hewlett Packard Enterprise Company’s (“HPES”) businesses, including anticipated tax treatment, unforeseen liabilities, and future capital expenditures;

•risks following the spin-off of our former U.S. Public Sector business (the “USPS”) and its related mergers with Vencore Holding Corp. and KeyPoint Government Solutions in June 2018 to form Perspecta Inc. (including its successors and permitted assigns, “Perspecta”), which was acquired by Peraton in May 2021; and

•the other factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent SEC filings, including Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements, which speak only as of the date they are made. Any forward-looking statement made by us in this Quarterly Report on Form 10-Q speaks only as of the date on which this Quarterly Report on Form 10-Q was first filed. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction

The purpose of the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to present information that management believes is relevant to an assessment and understanding of our results of operations and cash flows for the second quarter and first six months of fiscal 2024 and our financial condition as of September 30, 2023. The MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and accompanying notes.

The MD&A is organized in the following sections:

•Background

•Results of Operations

•Liquidity and Capital Resources

•Critical Accounting Estimates

The following discussion includes a comparison of our results of operations and liquidity and capital resources for the second quarters and first six months of fiscal 2024 and fiscal 2023. References are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

Background

DXC helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world’s largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness, and customer experience across their IT estates.

We generate revenue by offering a wide range of information technology services and solutions primarily in North America, Europe, Asia, and Australia. We operate through two segments: Global Business Services ("GBS") and Global Infrastructure Services ("GIS"). We market and sell our services directly to customers through our direct sales offices around the world. Our customers include commercial businesses of many sizes and in many industries and public sector clients.

Key Metrics

Key metrics for the second quarter of fiscal 2024 compared to the second quarter of fiscal 2023 are included below. We have presented organic revenue and diluted earnings per share on a non-GAAP basis. For more information see “Non-GAAP Financial Measures.”

•Revenues of $3.4 billion, down 3.6% compared to prior year period, and down 3.6% on an organic basis;

•Diluted earnings per share of $0.49, compared to $0.12 in the second quarter of fiscal 2023; adjusted diluted earnings per share of $0.70, compared to $0.75 in the second quarter of fiscal 2023, a decrease of 6.7%;

•Fiscal 2024 operating cash flow of $375 million, less capital expenditures of $359 million, resulted in free cash flow of $16 million;

•Returned $214 million to shareholders through share repurchases in the second quarter of fiscal 2024.

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Results of Operations for the Second Quarter and First Six Months of Fiscal 2024 and Fiscal 2023

Revenues

Our revenue by geography and operating segment are provided below:

	Three Months Ended						Three Months Ended
(in millions)	September 30, 2023		September 30, 2022		Percentage Change		Constant Currency  September 30, 2023(1)		Percentage Change in Constant Currency(1)
Geographic Market
United States	$	1,002	$	1,093	(8.3)	%	$	1,002	(8.3)	%
U.K.	460		452		1.8	%	427		(5.5)	%
Other Europe	1,051		1,064		(1.2)	%	992		(6.8)	%
Australia	330		371		(11.1)	%	344		(7.3)	%
Other International	593		586		1.2	%	603		2.9	%
Total Revenues	$	3,436	$	3,566	(3.6)	%	$	3,368	(5.6)	%
Operating Segments
GBS	$	1,709	$	1,713	(0.2)	%	$	1,683	(1.8)	%
GIS	1,727		1,853		(6.8)	%	1,685		(9.1)	%
Total Revenues	$	3,436	$	3,566	(3.6)	%	$	3,368	(5.6)	%

	Six Months Ended						Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		Percentage Change		Constant Currency  September 30, 2023(1)		Percentage Change in Constant Currency(1)
Geographic Market
United States	$	2,004	$	2,224	(9.9)	%	$	2,004	(9.9)	%
U.K.	925		925		0.0	%	893		(3.5)	%
Other Europe	2,115		2,202		(4.0)	%	2,037		(7.5)	%
Australia	672		762		(11.8)	%	709		(7.0)	%
Other International	1,166		1,160		0.5	%	1,199		3.4	%
Total Revenues	$	6,882	$	7,273	(5.4)	%	$	6,842	(5.9)	%
Operating Segments
GBS	$	3,412	$	3,471	(1.7)	%	$	3,401	(2.0)	%
GIS	3,470		3,802		(8.7)	%	3,441		(9.5)	%
Total Revenues	$	6,882	$	7,273	(5.4)	%	$	6,842	(5.9)	%

(1)Constant currency revenues are a non-GAAP measure 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. For more information, see "Non-GAAP Financial Measures."

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For the second quarter of fiscal 2024, our total revenue was $3.4 billion, a decrease of $130 million or 3.6%, compared to the same period a year ago. The 3.6% decrease against the comparative period includes a 2.0% favorable foreign currency exchange rate impact, a 2.0% decline in revenue from the disposition of certain businesses, and a 3.6% decline in organic revenue. Organic revenue growth is a non-GAAP measure. For more information, see "Non-GAAP Financial Measures".

For the first six months of fiscal 2024, our total revenue was $6.9 billion, a decrease of $391 million or 5.4%, as compared to the same period a year ago. The 5.4% decrease against the comparative period includes a 0.5% favorable foreign currency exchange rate impact, a 2.3% decline in revenue from the disposition of certain businesses, and a 3.6% decline in organic revenue.

The favorable foreign currency exchange rate impact is primarily driven by the weakening of the U.S. dollar against the Euro and British Pound.

For the discussion of risks associated with our foreign operations, see Part 1, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

Global Business Services

For the second quarter of fiscal 2024, GBS revenue was $1.7 billion, a decrease of $4 million or 0.2%, as compared to the same period a year ago. The 0.2% decrease against the comparative period includes a 4.2% decline in revenue from the disposition of certain businesses, partially offset by 2.4% organic revenue growth from additional services provided to new and existing customers and a 1.6% favorable foreign currency exchange rate impact.

For the first six months of fiscal 2024, GBS revenue was $3.4 billion, a decrease of $59 million or 1.7%, as compared to the same period a year ago. The 1.7% decrease against the comparative period includes a 4.8% decline in revenue from the disposition of certain businesses, partially offset by 2.8% organic revenue growth from additional services provided to new and existing customers, and a 0.3% favorable foreign currency exchange rate impact.

Global Infrastructure Services

For the second quarter of fiscal 2024, our GIS revenue was $1.7 billion, a decrease of $126 million or 6.8%, as compared to the same period a year ago. The 6.8% decrease against the comparative period includes a 9.1% decline in organic revenue from project completions and lower resale revenue, partially offset by a 2.3% favorable foreign currency exchange rate impact.

For the first six months of fiscal 2024, our GIS revenue was $3.5 billion, a decrease of $332 million or 8.7%, as compared to the same period a year ago. The 8.7% decrease against the comparative period includes a 9.5% decline in organic revenue from project completions and lower resale revenue, partially offset by a 0.8% favorable foreign currency exchange rate impact.

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Costs and Expenses

Our total costs and expenses are provided below:

	Dollar Amount								Dollar Amount
	Three Months Ended September 30,				Change				Six Months Ended September 30,				Change
(in millions)	2023		2022		Dollar		Percent		2023		2022		Dollar		Percent
Costs of services	$	2,633	$	2,775	$	(142)	(5.1)	%	$	5,352	$	5,705	$	(353)	(6.2)	%
Selling, general and administrative	328		324		4		1.2	%	655		673		(18)		(2.7)	%
Depreciation and amortization	361		380		(19)		(5.0)	%	705		769		(64)		(8.3)	%
Restructuring costs	35		53		(18)		(34.0)	%	55		86		(31)		(36.0)	%
Interest expense	78		44		34		77.3	%	144		81		63		77.8	%
Interest income	(53)		(28)		(25)		89.3	%	(102)		(48)		(54)		112.5	%
Loss on disposition of businesses	2		32		(30)		(93.8)	%	7		3		4		133.3	%
Other income, net	(76)		(68)		(8)		11.8	%	(140)		(172)		32		(18.6)	%
Total Costs and Expenses	$	3,308	$	3,512	$	(204)	(5.8)	%	$	6,676	$	7,097	$	(421)	(5.9)	%

Costs of Services

Costs of services, excluding depreciation and amortization and restructuring costs (“COS”), were $2.6 billion and $5.4 billion for the second quarter and first six months of fiscal 2024, respectively, a decrease of $142 million and $353 million, respectively, as compared to the same periods of the prior fiscal year.

The decrease in expense against both comparative periods was primarily due to a decrease in costs from lower revenue levels and a reduction in professional services and contractor-related expenses from our cost optimization efforts, partially offset by an unfavorable foreign currency exchange rate impact of $52 million and $29 million, respectively, for the second quarter and first six months of fiscal 2024.

Gross margin (Revenues less COS as a percentage of revenue) was 23.4% and 22.2% for the second quarter and first six months of fiscal 2024, respectively, an increase of 1.2% and 0.6% against the comparative period.

Selling, General and Administrative

Selling, general and administrative expense, excluding depreciation and amortization and restructuring costs (“SG&A”), was $328 million and $655 million for the second quarter and first six months of fiscal 2024, respectively, an increase of $4 million and a decrease of $18 million, respectively, as compared to the same periods of the prior fiscal year.

The $4 million increase in expense for the second quarter of fiscal 2024 was primarily due to an increase in professional services and other vendor-related expenses, partially offset by reductions in payroll related expenses.

The $18 million decrease in expense for the first six months of fiscal 2024 was primarily due to reductions in payroll related expenses, partially offset by an increase in professional services and other vendor-related expenses.

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Depreciation and Amortization

Depreciation expense was $112 million and $225 million for the second quarter and first six months of fiscal 2024, respectively, a decrease of $17 million and $42 million, respectively, as compared to the same periods of the prior fiscal year. The decrease in depreciation expense against both comparative periods was primarily due to lower average net property and equipment balances.

Amortization expense was $249 million and $480 million for the second quarter and first six months of fiscal 2024, respectively, a decrease of $2 million and $22 million, respectively, as compared to the same periods of the prior fiscal year. The decrease in amortization expense against both comparative periods was primarily due to lower software amortization.

Restructuring Costs

During fiscal 2024, management approved global cost savings initiatives designed to better align our facility and data center requirements. During the second quarter and first six months of fiscal 2024, total restructuring costs recorded, net of reversals, were $35 million and $55 million, respectively, a decrease of $18 million and $31 million, respectively, as compared to the same periods of the prior fiscal year.

See Note 12 – “Restructuring Costs” for additional information about our restructuring actions.

Interest Expense and Interest Income

Net interest expense (interest expense less interest income) was $25 million and $42 million for the second quarter and first six months of fiscal 2024, respectively, an increase of $9 million as compared to both periods of the prior fiscal year.

The increase in net interest expense against both comparative periods was primarily due to higher interest rates globally that increased interest expense from securitization and commercial paper, partially offset by higher income from cash deposits.

Loss on Disposition of Businesses

During the first six months of fiscal 2024 and fiscal 2023, the Company sold insignificant businesses that resulted in a loss of $7 million and $3 million, respectively.

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Other Income, Net

Other income, net comprises non-service cost components of net periodic pension income, 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.

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Non-service cost components of net periodic pension income	$	(36)	$	(60)	$	(73)	$	(127)
Foreign currency gain	(1)		(1)		(9)		(3)
Gain on sale of assets	(6)		(8)		(27)		(46)
Other (gain) loss	(33)		1		(31)		4
Total	$	(76)	$	(68)	$	(140)	$	(172)

Other income, net, was $76 million for the second quarter of fiscal 2024, an increase of $8 million against the comparative period. Other income, net, was $140 million for the first six months of fiscal 2024, a decrease of $32 million against the comparative period. The change against the comparative period was primarily due to:

•net periodic pension income decreased by $24 million and $54 million primarily due to changes in expected returns on assets and other actuarial assumptions.

•foreign currency gains were immaterially different and increased by $6 million, primarily due to movements of exchange rates on our foreign currency-denominated assets and liabilities, related hedges including forward contracts to manage our exposure to economic risk, and the cost of our hedging program.

•a decrease in gains from sales of assets of $2 million and $19 million; and

•an increase in other gains of $34 million and $35 million, primarily from the sale of a strategic investment in the second quarter of fiscal 2024.

Taxes

Our effective tax rate (“ETR”) was 22.7% and 48.1% for the three months ended September 30, 2023 and September 30, 2022, respectively, and 31.6% and 25.6% for the six months ended September 30, 2023 and September 30, 2022, respectively. For the three and six months ended September 30, 2023, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, a decrease in valuation allowances on deferred tax assets, and the foreign tax credit. For the three months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and the tax impact of business divestitures. For the six months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, tax impact of business divestitures, U.S. tax on foreign income, and a decrease in unrecognized tax benefits due to income tax audit settlements and statute of limitation expirations.

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Earnings Per Share

Diluted EPS for the second quarter and first six months of fiscal 2024 was $0.49 and $0.65, respectively, an increase of $0.37 and $0.10, respectively, as compared to the same periods of the prior fiscal year. The increase in diluted EPS against both comparative periods was primarily due to increases in net income attributable to DXC common stockholders and lower weighted average share counts from the Company’s share repurchases.

Diluted EPS for the second quarter of fiscal 2024 includes $0.13 per share of restructuring costs, $0.01 per share of transaction, separation and integration-related costs, $0.34 per share of amortization of acquired intangible assets, $(0.11) per share of net gains on dispositions, $0.01 per share of impairment losses, and $(0.17) per share of tax adjustments.

Diluted EPS for the first six months of fiscal 2024 includes $0.20 per share of restructuring costs, $0.01 per share of transaction, separation and integration-related costs, $0.66 per share of amortization of acquired intangible assets, $(0.09) per share of net gains on dispositions, $0.04 per share of impairment losses, and $(0.15) per share of tax adjustments.

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Non-GAAP Financial Measures

We present non-GAAP financial measures of performance which are derived from the statements of operations of DXC. These non-GAAP financial measures include earnings before interest and taxes (“EBIT”), adjusted EBIT, non-GAAP income before income taxes, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, non-GAAP EPS, organic revenue growth, constant currency revenues, and free cash flow.

We believe EBIT, adjusted EBIT, non-GAAP income before income taxes, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS provide investors with useful supplemental information about our operating performance after excluding certain categories of expenses.

We believe constant currency revenues provides investors with useful supplemental information about our revenues after excluding the effect of currency exchange rate fluctuations for currencies other than U.S. dollars in the periods presented. See below for a description of the methodology we use to present constant currency revenues.

One category of expenses excluded from adjusted EBIT, non-GAAP income before income tax, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS, incremental amortization of intangible assets acquired through business combinations, if included, may result in a significant difference in period over period amortization expense on a GAAP basis. We exclude amortization of certain acquired intangible assets as these non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Although DXC management excludes amortization of acquired intangible assets, primarily customer-related intangible assets, from its non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and support revenue generation. Any future transactions may result in a change to the acquired intangible asset balances and associated amortization expense.

Another category of expenses excluded from adjusted EBIT, non-GAAP income before income tax, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS is impairment losses, which, if included, may result in a significant difference in period-over-period expense on a GAAP basis. We exclude impairment losses as these non-cash amounts reflect generally an acceleration of what would be multiple periods of expense and are not expected to occur frequently. Further, assets such as goodwill may be significantly impacted by market conditions outside of management’s control.

Selected references are made to revenue growth on an “organic basis” so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates and without the impacts of acquisitions and divestitures, thereby providing comparisons of operating performance from period to period of the business that we have owned during both periods presented. Organic revenue growth is calculated by dividing the year-over-year change in GAAP revenues attributed to organic growth by the GAAP revenues reported in the prior comparable period. Organic revenue is calculated as constant currency revenue excluding the impact of mergers, acquisitions or similar transactions until the one-year anniversary of the transaction and excluding revenues of divestitures during the reporting period. This approach is used for all results where the functional currency is not the U.S. dollar. We believe organic revenue growth provides investors with useful supplemental information about our revenues after excluding the effect of currency exchange rate fluctuations for currencies other than U.S. dollars and the effects of acquisitions and divestitures in both periods presented.

Free cash flow represents cash flow from operations, less capital expenditures. Free cash flow is utilized by our management, investors, and analysts to evaluate cash available to pay debt, repurchase shares, and provide further investment in the business.

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There are limitations to the use of the non-GAAP financial measures presented in this report. 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 the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes between companies. 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-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. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Revenues.”

Certain non-GAAP financial measures and the respective most directly comparable financial measures calculated and presented in accordance with GAAP include:

	Dollar Amount								Dollar Amount
	Three Months Ended September 30,				Change				Six Months Ended September 30,				Change
(in millions)	2023		2022		Dollar		Percent		2023		2022		Dollar		Percent
Income before income taxes	$	128	$	54	$	74	137.0	%	$	206	$	176	$	30	17.0	%
Non-GAAP income before income taxes	$	226	$	253	$	(27)	(10.7)	%	$	433	$	495	$	(62)	(12.5)	%
Net income	$	99	$	28	$	71	253.6	%	$	141	$	131	$	10	7.6	%
Adjusted EBIT	$	251	$	269	$	(18)	(6.7)	%	$	475	$	528	$	(53)	(10.0)	%

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Reconciliation of Non-GAAP Financial Measures

Our non-GAAP adjustments include:

•Restructuring costs – includes costs, net of reversals, related to workforce and real estate optimization and other similar charges.

•Transaction, separation and integration-related (“TSI”) costs – includes costs related to integration, separation, planning, financing and advisory fees and other similar charges associated with mergers, acquisitions, strategic investments, joint ventures, and dispositions and other similar transactions incurred within one year of such transactions closing, except for costs associated with related disputes, which may arise more than one year after closing.

•Amortization of acquired intangible assets – includes amortization of intangible assets acquired through business combinations.

•Pension and OPEB actuarial and settlement gains and losses – pension and OPEB actuarial mark to market adjustments and settlement gains and losses.

•Merger related indemnification – in fiscal 2024, represents the Company’s current estimate of potential liability to HPE for a tax related indemnification; and in fiscal 2023, represents the Company’s estimate of potential liability to HPE for indemnification following the outcome of the Oracle v. HPE litigation in June 2022. These obligations are related to the HPES merger.

•SEC Matter - represents the Company’s liability related to a previously disclosed investigation into its historical determination and disclosure of certain “transaction, separation, and integration-related costs” as part of the Company’s non-GAAP adjustments.

•Gains and losses on dispositions – gains and losses related to dispositions of businesses, strategic assets and interests in less than wholly-owned entities.(1)

•Impairment losses – non-cash charges associated with the permanent reduction in the value of the Company’s assets (e.g., impairment of goodwill and other long-term assets including fixed assets and impairments to deferred tax assets for discrete changes in valuation allowances). Future discrete reversals of valuation allowances are likewise excluded.(2)

•Tax adjustments – discrete tax adjustments to impair or recognize certain deferred tax assets, adjustments for changes in tax legislation and the impact of merger and divestitures. Income tax expense of all other (non-discrete) non-GAAP adjustments is based on the difference in the GAAP annual effective tax rate (AETR) and overall non-GAAP provision (consistent with the GAAP methodology).

(1)During the first six months of fiscal 2024, the Company sold insignificant businesses and a strategic investment that resulted in a net gain of $28 million. During the first six months of fiscal 2023, the Company sold insignificant businesses that resulted in a net loss of $3 million.

(2)Impairment losses on dispositions for the second quarter and first six months of fiscal 2024 include a $2 million and a $5 million, respectively, of charges associated with certain strategic investments accounted for within Other income, net. Impairment losses on dispositions for the first quarter of fiscal 2024 included $4 million of Net income attributable to non-controlling interest, net of tax.

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

	Three Months Ended September 30, 2023
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization  of Acquired Intangible Assets		Merger Related Indemnification		Gains and Losses on Dispositions		Impairment Losses		Tax Adjustment		Non-GAAP Results
Income before income taxes	$	128		$	35	$	3	$	89	$	2	$	(33)	$	2	$	—	$	226
Income tax expense	29			8		1		19		1		(10)		—		35		83
Net income	99			27		2		70		1		(23)		2		(35)		143
Less: net income attributable to non-controlling interest, net of tax	—			—		—		—		—		—		—		—		—
Net income attributable to DXC common stockholders	$	99		$	27	$	2	$	70	$	1	$	(23)	$	2	$	(35)	$	143
Effective Tax Rate	22.7		%															36.7		%
Basic EPS	$	0.49		$	0.13	$	0.01	$	0.35	$	0.00	$	(0.11)	$	0.01	$	(0.17)	$	0.71
Diluted EPS	$	0.49		$	0.13	$	0.01	$	0.34	$	0.00	$	(0.11)	$	0.01	$	(0.17)	$	0.70
Weighted average common shares outstanding for:
Basic EPS	201.72			201.72		201.72		201.72		201.72		201.72		201.72		201.72		201.72
Diluted EPS	203.06			203.06		203.06		203.06		203.06		203.06		203.06		203.06		203.06

	Six Months Ended September 30, 2023
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization  of Acquired Intangible Assets		Merger Related Indemnification		Gains and Losses on Dispositions		Impairment Losses		Tax Adjustment		Non-GAAP Results
Income before income taxes	$	206		$	55	$	4	$	178	$	13	$	(28)	$	5	$	—	$	433
Income tax expense	65			13		1		40		12		(10)		1		32		154
Net income	141			42		3		138		1		(18)		4		(32)		279
Less: net income attributable to non-controlling interest, net of tax	6			—		—		—		—		—		(4)		—		2
Net income attributable to DXC common stockholders	$	135		$	42	$	3	$	138	$	1	$	(18)	$	8	$	(32)	$	277
Effective Tax Rate	31.6		%															35.6		%
Basic EPS	$	0.66		$	0.20	$	0.01	$	0.67	$	0.00	$	(0.09)	$	0.04	$	(0.16)	$	1.35
Diluted EPS	$	0.65		$	0.20	$	0.01	$	0.66	$	0.00	$	(0.09)	$	0.04	$	(0.15)	$	1.33
Weighted average common shares outstanding for:
Basic EPS	205.90			205.90		205.90		205.90		205.90		205.90		205.90		205.90		205.90
Diluted EPS	208.90			208.90		208.90		208.90		208.90		208.90		208.90		208.90		208.90

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	Three Months Ended September 30, 2022
(in millions, except per-share amounts)	As Reported			Restructuring costs		Transaction, Separation and Integration-Related Costs		Amortization  of Acquired Intangible Assets		SEC Matter		Gains and Losses on Dispositions		Pension and OPEB Actuarial and Settlement Gains and Losses		Non-GAAP Results
Income before income taxes	$	54		$	53	$	4	$	101	$	8	32		$	1	$	253
Income tax expense	26			10		1		18		1		22		—		78
Net income	28			43		3		83		7		10		1		175
Less: net income attributable to non-controlling interest, net of tax	1			—		—		—		—		—		—		1
Net income attributable to DXC common stockholders	$	27		$	43	$	3	$	83	$	7	$	10	$	1	$	174
Effective Tax Rate	48.1		%													30.8		%
Basic EPS	$	0.12		$	0.19	$	0.01	$	0.36	$	0.03	$	0.04	$	0.00	$	0.76
Diluted EPS	$	0.12		$	0.18	$	0.01	$	0.36	$	0.03	$	0.04	$	0.00	$	0.75
Weighted average common shares outstanding for:
Basic EPS	229.96			229.96		229.96		229.96		229.96		229.96		229.96		229.96
Diluted EPS	233.17			233.17		233.17		233.17		233.17		233.17		233.17		233.17

	Six Months Ended September 30, 2022
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization  of Acquired Intangible Assets		Merger Related indemnification		SEC Matter		Gains and Losses on Dispositions		Pension and OPEB Actuarial and Settlement Gains and Losses		Non-GAAP Results
Income before income taxes	$	176		$	86	$	6	$	205	$	10	$	8	$	3	$	1	$	495
Income tax expense	45			18		1		42		2		1		31		—		140
Net income	131			68		5		163		8		7		(28)		1		355
Less: net income attributable to non-controlling interest, net of tax	2			—		—		—		—		—		—		—		2
Net income attributable to DXC common stockholders	$	129		$	68	$	5	$	163	$	8	$	7	$	(28)	$	1	$	353
Effective Tax Rate	25.6		%															28.3		%
Basic EPS	$	0.56		$	0.29	$	0.02	$	0.70	$	0.03	$	0.03	$	(0.12)	$	0.00	$	1.53
Diluted EPS	$	0.55		$	0.29	$	0.02	$	0.69	$	0.03	$	0.03	$	(0.12)	$	0.00	$	1.50
Weighted average common shares outstanding for:
Basic EPS	231.21			231.21		231.21		231.21		231.21		231.21		231.21		231.21		231.21
Diluted EPS	234.93			234.93		234.93		234.93		234.93		234.93		234.93		234.93		234.93

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Reconciliations of revenue growth to organic revenue growth are as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total revenue growth	(3.6)	%	(11.4)	%	(5.4)	%	(11.0)	%
Foreign currency	(2.0)	%	7.4	%	(0.5)	%	6.7	%
Acquisition and divestitures	2.0	%	2.5	%	2.3	%	2.2	%
Organic revenue growth	(3.6)	%	(1.5)	%	(3.6)	%	(2.1)	%
GBS revenue growth	(0.2)	%	(8.5)	%	(1.7)	%	(7.7)	%
Foreign currency	(1.6)	%	7.4	%	(0.3)	%	6.7	%
Acquisition and divestitures	4.2	%	4.5	%	4.8	%	4.1	%
GBS organic revenue growth	2.4	%	3.4	%	2.8	%	3.1	%
GIS revenue growth	(6.8)	%	(14.0)	%	(8.7)	%	(13.7)	%
Foreign currency	(2.3)	%	7.5	%	(0.8)	%	6.6	%
Acquisition and divestitures	—	%	0.7	%	—	%	0.6	%
GIS organic revenue growth	(9.1)	%	(5.8)	%	(9.5)	%	(6.5)	%

Reconciliations of net income (loss) to adjusted EBIT are as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income	$	99	$	28	$	141	$	131
Income tax expense	29		26		65		45
Interest income	(53)		(28)		(102)		(48)
Interest expense	78		44		144		81
EBIT	153		70		248		209
Restructuring costs	35		53		55		86
Transaction, separation and integration-related costs	3		4		4		6
Amortization of acquired intangible assets	89		101		178		205
Merger related indemnification	2		—		13		10
SEC Matter	—		8		—		8
(Gains) losses on dispositions	(33)		32		(28)		3
Impairment losses	2		—		5		—
Pension and OPEB actuarial and settlement losses	—		1		—		1
Adjusted EBIT	$	251	$	269	$	475	$	528

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Liquidity and Capital Resources

Cash and Cash Equivalents and Cash Flows

As of September 30, 2023, our cash and cash equivalents (“cash”) were $1.4 billion, of which $0.7 billion was held outside of the U.S. As of March 31, 2023, our cash was $1.9 billion, of which $0.7 billion was held outside of the U.S. We maintain various multi-currency, multi-entity, cross-border, physical and notional cash and pool arrangements with various counterparties to manage liquidity efficiently that enable participating subsidiaries to draw on the Company’s pooled resources to meet liquidity needs.

A significant portion of the cash held by our foreign subsidiaries is not expected to be impacted by U.S. federal income tax upon repatriation. However, a portion of this cash may still be subject to foreign and U.S. state income tax consequences upon future remittance. Therefore, if additional funds held outside the U.S. are needed for our operations in the U.S., we plan to repatriate these funds not designated as indefinitely reinvested.

We have $0.1 billion in cash held by foreign subsidiaries used for local operations that is subject to country-specific limitations which may restrict or result in increased costs in the repatriation of these funds. In addition, other practical considerations may limit our use of consolidated cash. This includes cash of $0.1 billion held by majority-owned consolidated subsidiaries where third-parties or public shareholders hold minority interests.

The following table summarizes our cash flow activity:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		Change
Net cash provided by (used in):
Operating activities	$	375	$	375	$	—
Investing activities	(284)		(193)		(91)
Financing activities	(521)		(513)		(8)
Effect of exchange rate changes on cash and cash equivalents	(16)		(91)		75
Cash classified within current assets held for sale	—		10		(10)
Net decrease in cash and cash equivalents	$	(446)	$	(412)	$	(34)
Cash and cash equivalents at beginning of year	1,858		2,672
Cash and cash equivalents at the end of period	$	1,412	$	2,260

Operating cash flow

Net cash provided by operating activities during the first six months of fiscal 2024 of $375 million was flat as compared to the first six months of the prior fiscal year. Operating cash flow against the comparative period included:

•a decrease in net income, net of adjustments of $154 million;

•offset by a $154 million favorable change in working capital.

The following table contains certain key working capital metrics:

	Three Months Ended
	September 30, 2023	September 30, 2022
Days of sales outstanding in accounts receivable	65	70
Days of purchases outstanding in accounts payable	(44)	(55)
Cash conversion cycle	21	15

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Investing cash flow

Net cash used in investing activities was $284 million and $193 million, respectively, during the first six months of fiscal 2024 and fiscal 2023, reflecting a year-over-year change of $91 million. The change against the comparative period was primarily due to:

•a decrease in proceeds from sales of assets and business dispositions of $44 million and $51 million, respectively;

•a decrease in cash flows from other net investing activities of $7 million;

•partially offset by an $11 million decrease in capital expenditures.

Financing cash flow

Net cash used in financing activities was $521 million and $513 million, respectively, during the first six months of fiscal 2024 and fiscal 2023, reflecting a year-over-year change of $8 million. The change against the comparative period was primarily due to:

•a $254 million increase in cash used for share repurchase activity and related taxes paid on net share settlements; partially offset by

•a $203 million increase in cash inflows from commercial paper borrowings, net of repayments and other financing activities; and

•a $43 million decrease in payments on capital leases and borrowings for asset financings, as the Company continues reducing the volume of these financing arrangements.

Debt Financing

The following table summarizes our total debt:

	As of
(in millions)	September 30, 2023		March 31, 2023
Short-term debt and current maturities of long-term debt	$	672	$	500
Long-term debt, net of current maturities	3,791		3,900
Total debt	$	4,463	$	4,400

The $63 million increase in total debt during the first six months of fiscal 2024 was primarily attributable to the increase in borrowings of commercial paper partially offset by decreases in finance leases and borrowings for asset financing attributable to payments exceeding additions and a favorable foreign currency exchange rate of U.S. dollar against the Euro.

We were in compliance with all financial covenants associated with our borrowings as of September 30, 2023 and September 30, 2022.

Our credit ratings are as follows:

Rating Agency	Long Term Ratings	Short Term Ratings	Outlook
Fitch	BBB	F-2	Stable
Moody’s	Baa2	P-2	Stable
S&P	BBB-	-	Stable

For information on the risks of ratings downgrades, see Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

48

Liquidity

We expect our existing cash and cash equivalents, together with cash generated from operations, will be sufficient to meet our normal operating requirements for the next 12 months. We expect to continue using cash generated by operations as a primary source of liquidity; however, should we require funds greater than that generated from our operations to fund discretionary investment activities, such as business acquisitions, we have the ability to raise capital through debt financing, including the issuance of capital market debt instruments such as commercial paper, term loans, and bonds. In addition, we currently utilize, and further utilize accounts receivables, sales facilities, and our cross-currency cash pool for liquidity needs. However, there is no guarantee that we will be able to obtain debt financing, if required, on terms and conditions acceptable to us, if at all, in the future.

Our exposure to operational liquidity risk is primarily from long-term contracts that require significant investment of cash during the initial phases of the contracts. The recovery of these investments is over the life of the contracts and is dependent upon our performance as well as customer acceptance.

Our total liquidity of $4.4 billion as of September 30, 2023, includes $1.4 billion of cash and cash equivalents and $3.0 billion of available borrowings under our revolving credit facility. On November 1, 2023, the Company extended the term and increased its available borrowings under our revolving credit facility to $3.2 billion.

Share Repurchases

See Note 15 – “Stockholders’ Equity.”

Dividends

To maintain our financial flexibility, we continue to suspend payment of quarterly dividends for fiscal 2024.

49

Off-Balance Sheet Arrangements

In the normal course of business, we are a party to arrangements that include guarantees, the receivables securitization facility and certain other financial instruments with off-balance sheet risk, such as letters of credit and surety bonds. We also use performance letters of credit to support various risk management insurance policies. No liabilities related to these arrangements are reflected in our condensed consolidated balance sheets. There have been no material changes to our off-balance-sheet arrangements reported under Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, other than as disclosed in Note 4 – “Receivables” and Note 19 – “Commitments and Contingencies”.

Cash Commitments

There have been no material changes, outside the ordinary course of business, to our cash commitments since March 31, 2023. For further information see “Cash Commitments” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

For our minimum purchase cash commitments as of September 30, 2023, in connection with our long-term purchase agreements with certain software, hardware, telecommunication, and other service providers, see Note 19 – “Commitments and Contingencies.”

Critical Accounting Estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosure of contingent assets and liabilities. These estimates may change in the future if underlying assumptions or factors change. Accordingly, actual results could differ materially from our estimates under different assumptions, judgments or conditions. We consider the following policies to be critical because of their complexity and the high degree of judgment involved in implementing them: revenue recognition, income taxes, business combinations, defined benefit plans and valuation of assets. We have discussed the selection of our critical accounting policies and the effect of estimates with the Audit Committee of our Board of Directors. During the three months ended September 30, 2023, there were no changes to our critical accounting policies and estimates from those described in our fiscal 2023 Annual Report on Form 10-K except as mentioned in Note 1 – “Summary of Significant Accounting Policies.”

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures about market risk affecting DXC, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Our exposure to market risk has not changed materially since March 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2023.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

ITEM 1. LEGAL PROCEEDINGS

See Note 19 – “Commitments and Contingencies” to the financial statements in this Quarterly Report on Form 10-Q under the caption “Contingencies” for information regarding legal proceedings in which we are involved.

ITEM 1A. RISK FACTORS

Our operations and financial results are subject to various risks and uncertainties, which may 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 Quarterly Report on Form 10-Q. In such case, the trading price for DXC common stock could decline, and you could lose all or part of your investment. 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. Future performance and historical trends may be adversely affected by the aforementioned risks, and other variables and risks and uncertainties not currently known or that are currently expected to be immaterial may also materially and adversely affect our business, financial condition, and results of operations or the price of our common stock in the future. There have been no material changes in the three months ended September 30, 2023 to the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

None during the period covered by this report.

Use of Proceeds

Not applicable.

Issuer Purchases of Equity Securities

The following table provides information on a monthly basis for the quarter ended September 30, 2023, with respect to the Company’s purchase of equity securities:

Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
July 1, 2023 to July 31, 2023	1,441,799	$27.74	1,441,799	$1,155,108,589
August 1, 2023 to August 31, 2023	5,604,720	$20.36	5,604,720	$1,041,023,618
September 1, 2023 to September 30, 2023	2,912,066	$20.60	2,912,066	$981,025,570

On April 3, 2017, we announced the establishment of a share repurchase plan approved by the Board of Directors with an initial authorization of $2.0 billion for future repurchases of outstanding shares of our common stock. On November 8, 2018, our Board of Directors approved an incremental $2.0 billion share repurchase authorization. During the first six months of fiscal 2024, DXC completed the remaining share repurchases under the above authorizations.

51

On May 18, 2023, DXC announced that its Board approved an incremental $1.0 billion share repurchase authorization. Share repurchases may be made from time to time through various means, including in open market purchases, 10b5-1 plans, privately-negotiated transactions, accelerated stock repurchases, block trades and other transactions, in compliance with Rule 10b-18 under the Exchange Act, as well as, to the extent applicable, other federal and state securities laws and other legal requirements. The timing, volume, and nature of share repurchases pursuant to the share repurchase plan are at the discretion of management and may be suspended or discontinued at any time.

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (the "IRA") into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. We reflect the excise tax within equity as part of the repurchase of the common stock.

See Note 15 - "Stockholders’ Equity" for further information.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the three months ended September 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

52

ITEM 6. EXHIBITS

Exhibit Number	Description of Exhibit
10.1	Fifteenth Amendment to the Receivables Purchase Agreement dated as of July 28, 2023, among DXC Receivables LLC (f/k/a CSC Receivables LLC), as Seller, DXC Technology Company, as Servicer, PNC Bank, National Association, as Administrative Agent, and the persons from time to time party thereto as Purchasers and Group Agents (incorporated by reference to Exhibit 10.1 to DXC Technology Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (filed August 3, 2023) (file no. 001-38033))
10.2*	Sixteenth Amendment to the Receivables Purchase Agreement dated as of September 27, 2023, among DXC Receivables LLC (f/k/a CSC Receivables LLC), as Seller, DXC Technology Company, as Servicer, PNC Bank, National Association, as Administrative Agent, and the persons from time to time party thereto as Purchasers and Group Agents
10.3*	First Incremental Assumption Agreement dated as of November 1, 2023, which supplements that certain Revolving Credit Agreement dated as of November 1, 2021 among DXC Technology Company, the lenders from time to time party thereto and Citibank, N.A., as administrative agent.
10.4*	Separation Agreement with Kenneth Sharp dated May 16, 2023
31.1*	Section 302 Certification of the Chief Executive Officer
31.2*	Section 302 Certification of the Chief Financial Officer
32.1**	Section 906 Certification of Chief Executive Officer
32.2**	Section 906 Certification of Chief Financial Officer
101.INS	Interactive Data Files
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

    * Filed herewith

    ** Furnished herewith

53

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			DXC TECHNOLOGY COMPANY
Dated:	November 1, 2023	By:	/s/ Christopher A. Voci
		Name:	Christopher A. Voci
		Title:	Senior Vice President, Corporate Controller and Principal Accounting Officer

54

EX-10.2

Exhibit 10.2

SIXTEENTH AMENDMENT TO THE
RECEIVABLES PURCHASE AGREEMENT

This SIXTEENTH AMENDMENT TO THE RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of September 27, 2023, is entered into by and among the following parties:

(i)DXC RECEIVABLES LLC (F/K/A CSC RECEIVABLES LLC), a Delaware limited liability company, as Seller (the “Seller”);

(ii)DXC TECHNOLOGY COMPANY, a Nevada corporation, as Servicer (the “Servicer”);

(iii)PNC BANK, NATIONAL ASSOCIATION (“PNC”), as a Committed Purchaser, as Group Agent for its Purchaser Group and as Administrative Agent (in such capacity, the “Administrative Agent”);

(iv)MUFG BANK, LTD. (F/K/A THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.) (“MUFG”), as a Committed Purchaser and as Group Agent for its Purchaser Group;

(v)GOTHAM FUNDING CORPORATION (“Gotham”), as a Conduit Purchaser in MUFG’s Purchaser Group;

(vi)THE BANK OF NOVA SCOTIA (“BNS”), as a Committed Purchaser and as Group Agent for its Purchaser Group;

(vii)MIZUHO BANK, LTD. (“Mizuho”), as a Committed Purchaser and as Group Agent for its Purchaser Group;

(viii)THE TORONTO DOMINION BANK (“TD Bank”), as a Committed Purchaser and as Group Agent for its Purchaser Group; and

(ix)BANNER TRUST (“Banner Trust”), as a Conduit Purchaser in TD Bank’s Purchaser Group.

Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Receivables Purchase Agreement described below.

BACKGROUND

A.    The parties hereto have entered into a Receivables Purchase Agreement, dated as of December 21, 2016 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Purchase Agreement”).

B.    Concurrently herewith, the Administrative Agent, the Group Agents, the Seller and the Servicer are entering into that certain second amended and restated letter agreement re: Excluded Obligors, dated as of the date hereof (the “Letter Agreement”), whereby the Administrative Agent and the Group Agents agree to modify the definition of “Excluded Obligors” for purposes of the Receivables Purchase Agreement and the other Transaction Documents.    

C.    The parties hereto desire to amend the Receivables Purchase Agreement as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.Amendment to the Receivables Purchase Agreement. The definition of “Excluded Obligor Letter Agreement” set forth in Section 1.01 of the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows:

“Excluded Obligor Letter Agreement” means that certain second amended and restated letter agreement re: Excluded Obligors, dated as of September 27, 2023, among the Seller, the Servicer, the Group Agents and the Administrative Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.

SECTION 2.Authorization to File Financing Statements. Upon the effectiveness of this Amendment, each of DXC Technology Services LLC and the Seller hereby authorizes the Administrative Agent to file (at the expense of the Seller) one or more UCC-3 financing statements in the form of Exhibit A hereto.

SECTION 3.Representations and Warranties of the Seller and Servicer. Each of the Seller and the Servicer hereby represents and warrants, as to itself, to the Administrative Agent, each Purchaser and each Group Agent, as follows:

(a)Representations and Warranties. Immediately after giving effect to this Amendment, the representations and warranties made by such Person in the Transaction Documents to which it is a party are true and correct as of the date hereof (unless stated to relate solely to an earlier date, in which case such representations or warranties were true and correct as of such earlier date).

(b)Enforceability. This Amendment and each other Transaction Document to which it is a party, as amended hereby, constitute the legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or at law.

(c)No Termination Event. No event has occurred and is continuing, or would result from the transactions contemplated hereby, that constitutes an Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event.

SECTION 4.Effect of Amendment. All provisions of the Receivables Purchase Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the Receivables Purchase Agreement (or in any other Transaction Document) to “this Receivables Purchase Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Receivables Purchase Agreement shall be deemed to be references to the Receivables Purchase Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Receivables Purchase Agreement other than as set forth herein.

SECTION 5.Effectiveness. This Amendment shall become effective as of the date hereof upon receipt by the Administrative Agent of (i) counterparts of this Amendment duly

2

executed by each of the parties hereto, (ii) counterparts of the Letter Agreement duly executed by each of the parties thereto and (iii) a pro forma Information Package, prepared after giving effect to this Amendment and the Letter Agreement.

SECTION 6.Counterparts. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION 7.GOVERNING LAW. THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

SECTION 8.Severability. If any one or more of the agreements, provisions or terms of this Amendment shall for any reason whatsoever be held invalid or unenforceable, then such agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions and terms of this Amendment and shall in no way affect the validity or enforceability of the provisions of this Amendment or the Receivables Purchase Agreement.

SECTION 9.Section Headings. The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Receivables Purchase Agreement or any provision hereof or thereof.

SECTION 10.Reaffirmation. After giving effect to this Amendment and the transactions contemplated by this Amendment, all of the provisions of the Performance Guaranty shall remain in full force and effect the Performance Guarantor hereby ratifies and affirms the Performance Guaranty and acknowledges that the Performance Guaranty has continued and shall continue in full force and effect in accordance with its terms.

[Signature Pages Follow.]

3

IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

DXC RECEIVABLES LLC,
as Seller


By: /s/ Ceyhun Cetin
Name: Ceyhun CetinTitle: President, Secretary and Treasurer    

DXC TECHNOLOGY COMPANY,
as Servicer


By: /s/ Ceyhun Cetin
Name: Ceyhun CetinTitle: Vice President and Treasurer

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-1

PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent


By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

PNC BANK, NATIONAL ASSOCIATION,
as a Committed Purchaser

By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

PNC BANK, NATIONAL ASSOCIATION,
as Group Agent for its Purchaser Group

By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-2

MUFG BANK, LTD.,
as a Committed Purchaser

By: /s/ Eric Williams
Name: Eric Williams
Title: Managing Director

MUFG BANK, LTD.,
as Group Agent for its Purchaser Group

By: /s/ Eric Williams
Name: Eric Williams
Title: Managing Director

GOTHAM FUNDING CORPORATION,
as a Conduit Purchaser

By: /s/ Kevin J. Corrigan
Name: Kevin J. Corrigan
Title: Vice President

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-3

THE BANK OF NOVA SCOTIA,
as a Committed Purchaser

By: /s/ Doug Noe
Name: Doug Noe
Title: Managing Director

THE BANK OF NOVA SCOTIA,
as Group Agent for its Purchaser Group

By: /s/ Doug Noe
Name: Doug Noe
Title: Managing Director

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-4

MIZUHO BANK, LTD.,
as a Committed Purchaser

By: /s/ Richard A. Burke
Name: Richard A. Burke
Title: Managing Director

MIZUHO BANK, LTD.,
as Group Agent for its Purchaser Group

By: /s/ Richard A. Burke
Name: Richard A. Burke
Title: Managing Director

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-5

THE TORONTO DOMINION BANK,
as a Committed Purchaser

By: /s/ Brad Purkis
Name: Brad Purkis
Title: Managing Director

THE TORONTO DOMINION BANK,
as Group Agent for its Purchaser Group

By: /s/ Brad Purkis
Name: Brad Purkis
Title: Managing Director

COMPUTERSHARE TRUST COMPANY OF CANADA,

in its capacity as Trustee of BANNER TRUST,

by its Financial Services Agent, TD SECURITIES, INC.,

as a Conduit Purchaser

By: /s/ Brad Purkis
Name: Brad Purkis
Title: Managing Director

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-6

ACKNOWLEDGE AND AGREED TO BY:

DXC TECHNOLOGY COMPANY,

as the Performance Guarantor

By: /s/ Ceyhun Cetin
Name: Ceyhun CetinTitle: Vice President and Treasurer

Sixteenth Amendment to the

Receivables Purchase Agreement

(DXC Receivables LLC)

S-7

Exhibit A

UCC-3 Financing Statement to be filed

Exhibit A

EX-10.3

Exhibit 10.3

EXECUTION COPY

FIRST INCREMENTAL ASSUMPTION AGREEMENT

FIRST INCREMENTAL ASSUMPTION AGREEMENT, dated as of November 1, 2023 (this “Agreement”), by and among DXC Technology Company, a Nevada corporation (the “Company”), and the incremental lenders party hereto (in such capacity, collectively, the “Incremental Lenders” and each, individually, an “Incremental Lender”) and consented to by the Swing Line Banks party hereto and consented to and accepted by Citibank, N.A., as administrative agent (the “Agent”) for the Lenders party to the Credit Agreement referred to below.

W I T N E S S E T H:

WHEREAS, the Company, each lender from time to time party thereto (the “Lenders”) and the Agent are parties to that certain Revolving Credit Agreement dated as of November 1, 2021 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”) (capitalized terms not otherwise defined in this Agreement have the same meanings assigned thereto in the Credit Agreement); and

WHEREAS, the Company has, by notice to the Agent delivered pursuant to Section 2.20 of the Credit Agreement, requested incremental commitments (the “Incremental Commitments”) in an aggregate principal amount of $230,000,000.

WHEREAS, on September 18, 2023, the Company has, by notice to the Agent delivered pursuant to Section 2.16 of the Credit Agreement, requested that the latest Commitment Termination Date be extended for a period of one year, expiring November 1, 2028 (such extension, the “Extension”).

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of all of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.Incremental Lenders and the Incremental Commitments. Pursuant to Section 2.20 of the Credit Agreement and subject to the satisfaction or waiver of the conditions to effectiveness of this Agreement set forth in Section 4 of this Agreement:

(a)Each Incremental Lender severally agrees to provide Incremental Commitments in the principal amount for such Incremental Lender set forth on Schedule A hereto. The aggregate principal amount of the Incremental Commitments being provided by all of the Incremental Lenders pursuant to this Agreement is $230,000,000.

(b)The Incremental Commitments set forth on Schedule A hereto shall have terms identical to the terms of the Revolving Commitments outstanding under the Credit Agreement on the Effective Date (as defined below) that have a Commitment Termination Date of November 1, 2028 (including, without limitation, with respect to the maturity date, pricing, mandatory prepayments and voluntary prepayments) and shall otherwise be subject to the provisions of the Credit Agreement and the other Loan Documents. On and after the Effective Date, each reference to (x) a “Revolving Commitment” or “Revolving Commitments” or (y) a “Revolving Advance” or “Revolving Advances” in the Credit Agreement or herein shall be deemed to include the Incremental Commitments and any Incremental Advances made in respect of the Incremental Commitments established pursuant to this Agreement and all other related terms will have correlative meanings.

(c)For the avoidance of doubt, each Incremental Lender hereby notifies the Company and the Agent of its willingness to accept the Company’s request for the Extension such that the Commitment Termination Date with respect to its Incremental Commitment shall be November 1, 2028.

(d)Each of the parties hereto hereby agrees that the Agent may take any and all action as may be reasonably necessary, including the effecting of notional assignments between the

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#97475594v2    

Incremental Lenders and the other Revolving Lenders of outstanding Revolving Advances to ensure that, after giving effect to this Agreement, all Incremental Advances, when originally made, are included in each Borrowing of outstanding Advances under the Revolving Facility on a pro rata basis.

SECTION 2.Amendment to the Credit Agreement.

(a)From and after the Effective Date, Schedule I to the Credit Agreement is hereby replaced in its entirety with Schedule I hereto.

SECTION 3.Representations and Warranties. By its execution of this Agreement, the Company hereby represents and warrants to the Incremental Lenders that:

(a)the representations and warranties set forth in Article 4 of the Credit Agreement are correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) on and as of the Effective Date, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case it was correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) as of such earlier date; and

(b)on and as of the Effective Date, no Event of Default or Potential Event of Default shall have occurred and be continuing or would result from the effectiveness of the Incremental Commitments.

SECTION 4.Conditions of Effectiveness of the Incremental Commitments. This Agreement shall become effective on the date (the “Effective Date”) when (unless otherwise agreed among the Incremental Lenders and the Company, and consented to by the Agent (such consent not to be unreasonably withheld or delayed)) the Agent shall have received:

(a)an executed counterpart of this Agreement from the Company, the Agent, each Swing Line Bank and each Incremental Lender;

(b)copies of the resolutions of the Board of Directors of the Company, approving this Agreement, certified as of the Effective Date by the Secretary or an Assistant Secretary of the Company;

(c)a favorable opinion of Zafar Hasan, Senior Vice President, Deputy General Counsel and Board Secretary of the Company, dated as of the Effective Date;

(d)a certificate of an authorized officer of the Company, dated the Effective Date, stating that the representations and warranties of the Company contained in Section 3 of this Agreement are correct;

(e)a notice from the Company requesting the Incremental Commitments and satisfying the requirements set forth in Section 2.20(a) of the Credit Agreement; and

(f)upon the request of any Incremental Lender, in the case of any Borrower that qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230, a duly executed and completed certification regarding beneficial ownership as required by 31 C.F.R. § 1010.230 in relation to such Borrower.

SECTION 5.Acknowledgment of Incremental Lenders. Each of the Incremental Lenders (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be a Lender under Section 9.07(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 9.07(b)(iii) of the Credit Agreement), (iii) from and after the Effective

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#97475594v2    

Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of its Incremental Commitments, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by its Incremental Commitments and either it, or the Person exercising discretion in making its decision to provide its Incremental Commitments, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received, or has been accorded the opportunity to receive, copies of the most recent financial statements delivered pursuant to Section 5.01(b) thereof and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Agreement and to provide its Incremental Commitments and (vi) it has, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and to provide its Incremental Commitments; and (b) agrees that (i) it will, independently and without reliance on the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

SECTION 6.Reference to and Effect on the Credit Agreement and the other Loan Documents.

(a)On and after the Effective Date, each reference in the Credit Agreement to (i) “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in any other Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Agreement and (ii) each Incremental Lender (x) shall become a “Lender” for all purposes of the Credit Agreement and the other Loan Documents and (y) shall have a “Revolving Commitment” under the Credit Agreement.

(b)The Credit Agreement and each of the other Loan Documents, as specifically amended by this Agreement, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c)The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.

(d)On and after the Effective Date, this Agreement is subject to the provisions of Section 9.01 of the Credit Agreement and constitutes a Loan Document.

SECTION 7.Costs and Expenses. The Company agrees to pay promptly on demand all reasonable costs and out-of-pocket expenses of the Agent (in its capacity as such) in connection with the preparation, execution, delivery and administration, modification and amendment of this Agreement (including, without limitation, the reasonable fees and out-of-pocket expenses of a single counsel for the Agent with respect thereto and with respect to advising the Agent as to its rights and responsibilities hereunder) in accordance with the terms of Section 9.04 of the Credit Agreement.

SECTION 8.Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by email or other electronic transmission of a duly executed counterpart copy hereof will be as effective as delivery of an original executed counterpart of this Agreement. The words “execution,” “signed,” “signature,” and words of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National

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Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 9.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 10.Headings. Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

DXC TECHNOLOGY COMPANY, as the Company
By:	/s/ Ceyhun Cetin
	Name:    Ceyhun Cetin
	Title:    Vice President and Treasurer

[Signature Page to DXC First Incremental Assumption Agreement]

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Canadian Imperial Bank of Commerce, New York Branch, as an Incremental Lender
By:	/s/ Kelly Petit de Mange
	Name:    Kelly Petit de Mange
	Title: Executive Director and           Authorized Signatory

[Signature Page to DXC Sixth Incremental Assumption Agreement]

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HSBC BANK USA, N.A., as an Incremental Lender
By:	/s/ Jack Kelly
	Name:    Jack Kelly
	Title: Senior Vice President #23204

[Signature Page to DXC Sixth Incremental Assumption Agreement]

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ICICI Bank Limited, New York Branch, as an Incremental Lender
By:	/s/ Kishan Kunal
	Name:    Kishan Kunal
	Title: Team Lead, Corporate Banking

[Signature Page to DXC Sixth Incremental Assumption Agreement]

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Consented to and accepted by:

CITIBANK, N.A., as Agent and a Swing Line Bank
By:	/s/ Susan Olsen
	Name:    Susan Olsen
	Title: Vice President

[Signature Page to DXC Sixth Incremental Assumption Agreement]

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Consented to by:

BANK OF AMERICA, N.A.,as a Swing Line Bank
By:	/s/ Arti Dighe
	Name:    Arti Dighe
	Title:    Director

JPMORGAN CHASE BANK, N.A.,as a Swing Line Bank
By:	/s/ Ryan M. Becker
	Name:    Ryan M. Becker
	Title:    Vice President
MIZUHO BANK, LTD.,as a Swing Line Bank
By:	/s/ Tracy Rahn
	Name:    Tracy Rahn
	Title:    Executive Director
MUFG BANK, LTD.,as a Swing Line Bank
By:	/s/ Lillian Kim
	Name:    Lillian Kim
	Title:    Director

[Signature Page to DXC Sixth Incremental Assumption Agreement]

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[Signature Page to DXC Sixth Incremental Assumption Agreement]

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SCHEDULE A

INCREMENTAL COMMITMENTS

Name of Incremental Lender	Incremental Commitments
Canadian Imperial Bank of Commerce, New York Branch	US$110,000,000
HSBC Bank USA, N.A.	US$60,000,000
ICICI Bank Limited, New York Branch	US$60,000,000
Total	US$230,000,000

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Schedule I

LENDERS’ COMMITMENTS

	Lender	Revolving Commitment	Swing Line Commitment
1	Citibank, N.A.	US$238,000,000	US$50,000,000
2	Bank of America, N.A.	US$238,000,000	US$50,000,000
3	JPMorgan Chase Bank, N.A.	US$238,000,000	US$50,000,000
4	Mizuho Bank, Ltd.	US$238,000,000	US$50,000,000
5	MUFG Bank, Ltd.	US$238,000,000	US$50,000,000
6	Lloyds Bank Corporate Markets plc	US$160,000,000	N/A
7	National Westminster Bank plc	US$160,000,000	N/A
8	PNC Bank, National Association	US$160,000,000	N/A
9	Sumitomo Mitsui Banking Corporation1	US$160,000,000	N/A
10	TD Bank, N.A.	US$160,000,000	N/A
11	The Bank of Nova Scotia	US$160,000,000	N/A
12	BNP Paribas	US$110,000,000	N/A
13	Commerzbank AG, New York Branch	US$110,000,000	N/A
14	Credit Agricole Corporate and Investment Bank	US$110,000,000	N/A
15	Danske Bank A/S	US$110,000,000	N/A
16	Wells Fargo Bank, National Association2	US$110,000,000	N/A
17	ING Bank N.V., Dublin Branch	US$60,000,000	N/A
18	KBC Bank NV, New York Branch	US$60,000,000	N/A
19	Raiffeisen Bank International AG	US$60,000,000	N/A
20	Standard Chartered Bank	US$60,000,000	N/A

1 Commitment Termination Date is November 1, 2026.

2 Commitment Termination Date is November 1, 2027.

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21	U.S. Bank National Association	US$60,000,000	N/A
22	Canadian Imperial Bank of Commerce, New York Branch	US$110,000,000	N/A
23	HSBC Bank USA, N.A.	US$60,000,000	N/A
24	ICICI Bank Limited, New York Branch	US$60,000,000	N/A
	Total Commitments:	US$3,230,000,000.00	US$250,000,000.00

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EX-10.4

Exhibit 10.4

May 10, 2023

Ken Sharp

Dear Ken:

    This letter sets forth the agreement (“Agreement”) between you and DXC Technology Company and its subsidiaries and affiliates (“DXC”) regarding the terms of your separation of employment. We enter into this Agreement to resolve all issues and obligations that exist or may exist between you, DXC, and related parties noted below, including concerning your employment and termination of that employment.

1.Under this Agreement, your last day of employment with DXC will be September 15, 2023, unless terminated prior by you or by DXC. Your last day of employment will be your “Separation Date”. As of June 1, 2023, you will no longer serve as CFO, and you will be moved into a transitional role reporting to the CEO and in such case you will no longer say or do anything purporting to bind DXC. While in the transitional role you will only perform such duties and transition support as directed by the Chief Human Resources Officer or her designee. You agree that movement to a transitional role or any other action by DXC will not be deemed “Good Reason” under your Offer Letter dated November 2, 2020 (“Offer”) and you waive claims for Good Reason. You will fully cooperate with DXC in withdrawing or resigning from any positions, offices, or board memberships you may hold related to your work for DXC. Your participation in all benefit plans will cease as of the Separation Date, but you shall be entitled to all rights under the Consolidated Omnibus Benefits Reconciliation Act ("COBRA").

2.In consideration of your acceptance of this Agreement by signing it and returning it to DXC and provided you continue to comply with its terms and do not revoke it in accordance with section 11 below, DXC will not terminate your employment before September 15, 2023, other than for Cause (defined in the Offer) as determined by DXC in its discretion. You will not be eligible for FY24 ICP or any further LTI awards.

aIf you do not resign and if your employment is not terminated for Cause, and if you sign and return to DXC the Certificate of Release attached to this Agreement as Exhibit A (“Certificate”) on or within 21 days after the Separation Date and do not revoke it, subject to your continued compliance with the terms of this Agreement:

i.DXC will pay you a severance payment in the amount of One Million, Six-Hundred and Thirty-One Thousand, Two Hundred and Fifty Dollars ($1,631,250.00), less applicable deductions and withholdings (“Severance Payment”) in a single lump sum. The Severance Payment will be made within 60 days after you execute and deliver the Certificate to DXC (which must be on or within 21 days following your Separation Date); provided you do not revoke it, and provided further that if the 60-day period spans two calendar years, payment will be made in the second calendar year;

ii.DXC will pay the employer portion of your COBRA premiums, while you remain eligible for healthcare continuation coverage, for up to 12 months (“COBRA Premiums”); and

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Exhibit 10.4

iii.through the Separation Date you will receive your base salary, you will be eligible for FY 23 ICP, and you will continue vesting in your equity, all of which will be subject to the benefits and limitations/conditions set forth in the applicable plans, agreements, and related policies, terms and conditions.

bIf you resign or your employment is terminated for Cause, through the Separation Date, subject to your continued compliance with the terms of this Agreement, you will receive your base salary, you will be eligible for FY23 ICP, and you will continue vesting in your equity, all of which will be subject to the benefits and limitations/conditions set forth in the applicable plans, agreements, and related policies, terms and conditions. You will not receive the Severance Payment or the COBRA Premiums.

This offer is made in lieu of any claim for severance pay, notice period, pay in lieu of notice, bonus or commission or any other amounts and is in consideration of the releases and other agreements described herein. You acknowledge the above payments constitute an amount of compensation in addition to that which you would otherwise be entitled to receive. You expressly agree that you are not entitled to any additional compensation or benefit other than as provided in this Agreement and have received all compensation and benefits you are owed. In accordance with the terms of the applicable plans, agreements, and related policies, terms and conditions, all vesting of equity will cease as of the Separation Date and all unvested shares will be forfeited.

3.On behalf of yourself, your agents, heirs, successors, legal representatives and assigns, you hereby knowingly and voluntarily, irrevocably and unconditionally, release and forever discharge DXC and its current and/or former predecessors, successors, parents, subsidiaries, assigns, affiliates, and representatives and all of its and their officers, agents, directors, employees, representatives, and all persons acting by, through, under, or in concert with any of them (collectively the “Releasees”) from any and all actions, causes of action, suits, debts, charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, and expenses, including attorney fees, of any nature whatsoever, in law or in equity, known or unknown, suspected or unsuspected (hereinafter referred to as “Claim” or “Claims”) which you at any time had or claimed to have against any Releasees or which you may have or claim to have regarding events that have occurred as of the date you sign this Agreement, including, without limitation, any and all Claims related or in any manner incidental to your employment or the events preceding and/or leading to your employment and the termination of said employment. You expressly waive any and all rights under any applicable statute or principle of law restricting the right to release claims that you do not know or suspect to exist at the time of executing a release, which claims, if known, may have materially affected your decision to give such release. You acknowledge that you may hereafter discover claims currently unknown or unsuspected, or facts in addition to or different from those that are now believed to be true with respect to the matters released herein. Nevertheless, it is your intention that this Agreement settles each and every claim, dispute and controversy, known or unknown, fixed or contingent that you have or may have against the Releasees, including, but not limited to any claims arising under federal, state or local statute, rule, executive order, law or ordinance, tort, express or implied contract, public policy or other obligations. All of your releases herein should be construed broadly to the maximum extent permissible under applicable law. It is expressly understood by you that among the various rights and claims being waived by you in this release are those arising under the Age Discrimination in Employment Act.

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Exhibit 10.4

Specifically, but not by way of limitation, you release the Releasees from, and covenant not to sue Releasees for, any and all Claims, including without limitation (i) Claims which are or may be related to any employment relationship; (ii) Claims arising under any federal or state fair employment practices act, anti-discrimination law, and/or any law, ordinance, or regulation promulgated by any county, municipality, or other state subdivision (including, without limitation, the Age Discrimination in Employment Act, 29 U.S.C. §§621, et seq; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§2000e, et seq.; 42 U.S.C. §1981; the Employee Retirement Income Security Act, 29 U.S.C. §§1001, et seq.; the Family and Medical Leave Act, 29 U.S.C. §§2601 et seq.; the Americans With Disabilities Act of 1990 as amended, 42 U.S.C. §§126, et seq; (iii) Claims for breach of duty and/or implied covenant of good faith and fair dealing; (iv) Claims for interference with and/or breach of contract (express or implied, in fact or in law, oral or written); (v) Claims for retaliatory, constructive, or wrongful discharge of any kind; (vi) Claims for intentional or negligent infliction of emotional distress or mental anguish; (vii) Claims for breach of duty, fraud, fraudulent inducement, misrepresentation, breach of or invasion of right of privacy, libel, slander, defamation, or tortuous conduct of any kind; (viii) any and all other Claims arising under law or in equity; and (ix) any and all other Claims asserted or which could have been asserted by you.

Nothing contained in this Agreement is a waiver of any rights or claims (including any which may arise under the Age Discrimination in Employment Act) that may arise after the date of execution by you or which, as a matter of law, cannot be released, except with respect to your future termination of employment. Further, nothing in this Agreement prevents you from filing a lawsuit limited to challenging the validity of your waiver of the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, or from filing claims with government agencies as provided in section 9 below. Nothing in this Agreement waives any rights to enforce this Agreement.

4.Neither this Agreement nor any consideration given hereunder constitutes an admission nor is to be construed as an admission of liability on the part of DXC or Releasees, and in fact the parties expressly deny any violation of any law, tortious conduct, breach of contract, or other legally actionable wrongdoing.

5.You agree and covenant not to seek future employment or other remunerative relationships with DXC or Releasees and that you may be denied such without violating any statutory or common law principle.

6.You agree not to issue any communications, whether written or oral, which would in any way disparage or reflect adversely on DXC or the Releasees regarding your separation of employment or their conduct at any time during the period of your employment or thereafter. Disparaging remarks include any type of remark that could be reasonably construed as being detrimental to the business interests or reputations of the Releasees, including, without limitation, remarks concerning the character, personal qualities, or any actions or perceived omissions of the Releasees, regarding any matter connected with your employment and/or the cessation of that relationship or thereafter.

7.You agree to fully cooperate and assist DXC to respond to reasonable requests for information concerning matters involving facts or events relating to DXC that may be within your knowledge, and to cooperate with and assist as reasonably requested with respect to any pending and future litigation, arbitration or other dispute resolution. This cooperation shall include, without limitation, providing assistance to DXC’s counsel, experts and consultants, and providing truthful testimony in pretrial and trial or hearing proceedings. You will provide timely notice to DXC’s general counsel as to any subpoenas or other compulsory process related to DXC or facts, documents, or information gained by you during your employment with DXC so that DXC may intervene and object if appropriate. DXC will reimburse you for

3

Exhibit 10.4

all reasonable and appropriate out-of-pocket expenses incurred by you in connection with such cooperation upon reasonable substantiation.

8.You agree and acknowledge that you have returned, or will by the Separation Date return, all originals and copies of DXC documents and all DXC property, including without limitation, computer files, database information, client information, telephones, computers, badges, and keys no later than the Separation Date. You also reaffirm and agree to comply with your post-employment obligations under your Non-Competition, Non-Solicitation, Confidentiality and Intellectual Property Agreement, the post-employment provisions in your equity agreements, and other such agreements with DXC.

9.You further agree that information relating to the subject matter of this Agreement, including the terms and amount of any payment hereunder, shall be held in confidence and you shall not disclose or cause to be disclosed the terms of this Agreement to any person (other than your spouse or domestic/civil union partner, attorney and tax advisor), except pursuant to a lawful subpoena, as set forth in the Reports to Government Entities clause below, or as otherwise permitted by law.

Reports to Government Entities. Nothing in this Agreement, including the restrictions on disclosure or release of claims clauses, restricts or prohibits you from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General (collectively, the "Regulators"), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. However, to the maximum extent permitted by law, you are waiving your right to receive any individual monetary relief from DXC or any other Releasees covered by the Release of Claims resulting from such claims or conduct, regardless of whether you or another party has filed them, and in the event you obtain such monetary relief DXC or the Releasees will be entitled to an offset for the payments made pursuant to this Agreement. This Agreement does not limit your right to receive an award from any Regulator that provides awards for providing information relating to a potential violation of law. You do not need the prior authorization of DXC to engage in conduct protected by this paragraph, and you do not need to notify DXC that you have engaged in such conduct.

Please take notice that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

In addition, you recognize and agree that, in connection with any such activity outlined above, you must inform the Regulators, your attorney, a court or a government official that the information you are providing is confidential. Despite the foregoing, you are not permitted to reveal to any third-party, including any governmental, law enforcement, or regulatory authority, information you came to learn during the course of your employment with DXC that is protected from disclosure by any applicable privilege, including but not limited to the attorney client privilege and/or attorney work product doctrine. DXC does not waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product, and other privileged information.

10.Payments pursuant to this Agreement are intended to comply with or be exempt from Section 409A of the Internal Revenue Code (“Code”) and accompanying regulations and other binding guidance promulgated

4

Exhibit 10.4

thereunder (“Section 409A”), and the provisions of this Agreement will be administered, interpreted and construed accordingly. The Parties intend that any amounts payable or provided to you under this Agreement be paid or provided in compliance with Section 409A such that there will be no adverse tax consequences, interest or penalties for you under Section 409A as a result of the payments and benefits so paid or provided to you. Notwithstanding any provision of this Agreement to the contrary, you agree that any benefit or benefits under this Agreement that DXC determines are subject to the suspension period under Section 409A(a)(2)(B) of the Code shall not be paid or commence until the first business day next following the earlier of (i) the date that is six (6) months and one day following the date of your separation from service, (ii) the date of your death or (iii) such earlier date as complies with the requirements of Section 409A. The Parties agree to modify this Agreement, or the timing (but not the amount) of any payment of the severance, or both, to the extent necessary to comply with Section 409A.

11.With respect to your execution of this Agreement, you agree and covenant that:

a.You have carefully reviewed this Agreement and that all questions concerning it have been answered to your satisfaction. You affirm that this Agreement is written in a manner you understand, and that the consideration set forth in section 2 is sufficient for your entering into this Agreement and consists of benefits to which you are not otherwise entitled.

b.Prior to execution of this Agreement, you were and hereby are advised and encouraged to consult with and review it with your attorney(s).

c.You further acknowledge and agree that you were informed that you have twenty-one (21) days to consider and reflect upon the terms of this Agreement, and that any changes to this Agreement subsequently agreed upon by the parties, whether material or immaterial, does not restart this period for consideration; that you knowingly and voluntarily executed it after deliberate consideration of its terms; and that you were not coerced, pressured, or forced in any way to accept the terms of this Agreement.

d.You also acknowledge a complete understanding that you may be giving up certain legal rights by entering into this Agreement and that you have seven (7) days to revoke this Agreement following its execution by sending notice of revocation by certified mail, return receipt requested, or by Federal Express, to Mary Finch at 20408 Bashan Drive, Suite 231, Ashburn, VA 20147, with confirmation email to Mary Finch at mfinch.chro@dxc.com and Zafar Hasan at zhasan2@dxc.com.

e.If you revoke this Agreement, it shall not be effective or enforceable and you will not receive the consideration described herein. Moreover, you further agree that in the event you attempt to revoke or rescind this Agreement after the seven (7) day revocation period, you shall immediately return to and/or reimburse DXC for any and all of the benefits described above that may have been provided to you, and that the return to and/or reimbursement is a contractual prerequisite to any administrative or legal action brought or sought by you.

f.If you do not revoke this Agreement within seven (7) days of signing it, then this Agreement becomes final, binding and effective on the eighth (8th) day after you sign it.

12.    This Agreement supersedes any and all prior oral and/or written agreements between you and DXC regarding the subject matter described herein, and sets forth the entire agreement regarding the subject matter described herein; provided, however, for purposes of clarification, this Agreement does not

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Exhibit 10.4

supersede or eliminate any post-employment obligations you may have to DXC including but not limited to those arising from your Non-Competition, Non-Solicitation, Confidentiality and Intellectual Property Agreement, the post-employment provisions in your equity agreements, and other such agreements with DXC and predecessor employers, post-employment provisions in any equity agreements, and other such agreements. No modifications hereof shall be deemed valid unless reduced to writing and signed by the parties. The parties agree that the rule of construction that ambiguities are resolved against the drafting party will be subordinated to the principle that the terms of this Agreement will be construed fairly as to all parties and not in favor of or against any party. Any failure or delay on the part of either party to exercise any remedy or right under this Agreement shall not operate as a waiver.

13.    This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Virginia. Any action arising out of or relating to any of the provisions of this Agreement may, at the election of either party, be brought and prosecuted only in the courts of, or located in, the Commonwealth of Virginia, and in the event of such election, the Parties consent to the jurisdiction and venue of said courts. The terms of this Agreement are severable, and if for any reason any part hereof shall be found to be unenforceable the remaining terms and conditions shall be enforced in full.

If the foregoing terms and conditions are acceptable to you, please confirm your acceptance of this Agreement by signing and returning to our attention the enclosed copy of this letter.

Very truly yours,

By:     _/s/ Mary Finch

     Mary Finch

The foregoing terms and conditions, including specifically the releases set forth above, are hereby accepted as of the date signed below, subject to the terms hereof.

By:_/s/ Ken Sharp    Date: May 16, 2023

Ken Sharp

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Exhibit 10.4

EXHIBIT A TO SEPARATION AGREEMENT

Certificate of Release

DXC Technology Company, including its subsidiaries and affiliates (“DXC”) and Ken Sharp (“Employee” or “You”) entered into a separation agreement dated May 10, 2023 (the “Agreement”), with this Exhibit A as an attachment thereto. This Exhibit A is made a part of the Agreement. Pursuant to this Certificate of Release, You hereby reaffirm the provisions of the Agreement, including Section 3, which contains a full and complete release of all claims against Releasees (as defined in the Agreement) and by this Certificate of Release agree that such release extends through the date of signing of this Certificate of Release.

You acknowledge and agree that You were informed that You have twenty-one (21) days after your Separation Date to consider and reflect upon the terms of this Exhibit A, that You knowingly and voluntarily executed it after deliberate consideration of its terms, and that You were not coerced, pressured, or forced in any way to accept the terms of this Exhibit A. Prior to execution of this Exhibit A, You were advised and encouraged to review it with your attorney(s) and have in fact done so to the extent desired. You also acknowledge a complete understanding that You may be giving up certain legal rights by entering into this Exhibit A, and an understanding that You have seven (7) days to revoke this Exhibit A following its execution by sending notice of revocation by certified mail, return receipt requested, or by Federal Express, to Mary Finch at 20408 Bashan Drive, Suite 231, Ashburn, VA 20147, with confirmation email to Mary Finch at mfinch.chro@dxc.com and Zafar Hasan at zhasan2@dxc.com. If You revoke this Exhibit A, it shall not be effective or enforceable and You will not receive the Severance Payment or COBRA Premiums described in Section 2 of the Agreement. If You do not revoke this Exhibit A within seven (7) days of signing it, then this Exhibit A becomes final, binding and effective. Refusing to sign or signing and revoking this Exhibit A does not impact the validity or enforceability of the Agreement.

The foregoing terms and conditions, including specifically the releases set forth above, are hereby accepted as of the date signed below, subject to the terms hereof.

By: /s/ Ken Sharp            Date: 09/15/23    
Ken Sharp

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Salvino, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of DXC Technology Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2023	/s/ Michael J. Salvino
		Michael J. Salvino Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Rob Del Bene, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of DXC Technology Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

Date:	November 1, 2023	/s/ Rob Del Bene
		Rob Del Bene Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Michael J. Salvino, Chairman, President and Chief Executive Officer of DXC Technology Company (the "Company"), hereby certify that, to my knowledge:

(1)The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 1, 2023	/s/ Michael J. Salvino
		Michael J. Salvino Chairman, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Rob Del Bene, Executive Vice President and Chief Financial Officer of DXC Technology Company (the "Company"), hereby certify that, to my knowledge:

(1)The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 1, 2023	/s/ Rob Del Bene
		Rob Del Bene Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Sep. 30, 2023	Oct. 23, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38033
Entity Registrant Name	DXC TECHNOLOGY COMPANY
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	61-1800317
Entity Address, Address Line One	20408 Bashan Drive, Suite 231
Entity Address, City or Town	Ashburn
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20147
City Area Code	703
Local Phone Number	972-7000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		193,643,560
Entity Central Index Key	0001688568
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock, $0.01 par value per share
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	DXC
Security Exchange Name	NYSE
1.750% Senior Notes Due 2026
Entity Information [Line Items]
Title of 12(b) Security	1.750% Senior Notes Due 2026
Trading Symbol	DXC 26
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 3,436	$ 3,566	$ 6,882	$ 7,273
Costs of services (excludes depreciation and amortization and restructuring costs)	2,633	2,775	5,352	5,705
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	328	324	655	673
Depreciation and amortization	361	380	705	769
Restructuring costs	35	53	55	86
Interest expense	78	44	144	81
Interest income	(53)	(28)	(102)	(48)
Loss on disposition of businesses	2	32	7	3
Other income, net	(76)	(68)	(140)	(172)
Total costs and expenses	3,308	3,512	6,676	7,097
Income before income taxes	128	54	206	176
Income tax expense	29	26	65	45
Net income	99	28	141	131
Less: net income attributable to non-controlling interest, net of tax	0	1	6	2
Net income attributable to DXC common stockholders	$ 99	$ 27	$ 135	$ 129
Income per common share:
Basic (in dollars per share)	$ 0.49	$ 0.12	$ 0.66	$ 0.56
Diluted (in dollars per share)	$ 0.49	$ 0.12	$ 0.65	$ 0.55

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income		$ 99	$ 28	$ 141	$ 131
Other comprehensive loss, net of taxes:
Foreign currency translation adjustments, net of tax	[1]	(40)	(165)	(6)	(341)
Cash flow hedges adjustments, net of tax	[2]	4	2	7	2
Pension and other post-retirement benefit plans, net of tax:
Amortization of prior service cost, net of tax	[3]	0	(2)	(2)	(4)
Pension and other post-retirement benefit plans, net of tax		0	(2)	(2)	(4)
Other comprehensive loss, net of taxes		(36)	(165)	(1)	(343)
Comprehensive income (loss)		63	(137)	140	(212)
Less: comprehensive (loss) income attributable to non-controlling interest		(1)	(3)	5	(2)
Comprehensive income (loss) attributable to DXC common stockholders		$ 64	$ (134)	$ 135	$ (210)

[1] Tax expense related to foreign currency translation adjustments was $2 and $2 for the three and six months ended September 30, 2023, respectively, and $4 and $9 for the three and six months ended September 30, 2022, respectively.

[2] Tax expense (benefit) related to cash flow hedges adjustments was $1 and $2 for the three and six months ended September 30, 2023, respectively, and $0 and $(1) for the three and six months ended September 30, 2022, respectively.

[3] Tax benefit related to amortization of prior service costs was $1 and $1 for the three and six months ended September 30, 2023, respectively, and $0 and $4 for the three and six months ended September 30, 2022, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax expense (benefit)	$ 2	$ 4	$ 2	$ 9
Cash flow hedges adjustments, tax expense (benefit)	1	0	2	(1)
Amortization of prior service cost, tax benefit	$ 1	$ 0	$ 1	$ 4

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,412	$ 1,858
Receivables and contract assets, net of allowance of $56 and $47	3,146	3,441
Prepaid expenses	559	565
Other current assets	232	255
Assets held for sale	0	5
Total current assets	5,349	6,124
Intangible assets, net of accumulated amortization of $5,751 and $5,670	2,436	2,569
Operating right-of-use assets, net	809	909
Goodwill	530	539
Deferred income taxes, net	542	460
Property and equipment, net of accumulated depreciation of $3,874 and $4,111	1,810	1,979
Other assets	3,229	3,247
Assets held for sale - non-current	4	18
Total Assets	14,709	15,845
Current liabilities:
Short-term debt and current maturities of long-term debt	672	500
Accounts payable	618	782
Accrued payroll and related costs	600	569
Current operating lease liabilities	295	317
Accrued expenses and other current liabilities	1,569	1,836
Deferred revenue and advance contract payments	872	1,054
Income taxes payable	98	120
Liabilities related to assets held for sale	0	9
Total current liabilities	4,724	5,187
Long-term debt, net of current maturities	3,791	3,900
Non-current deferred revenue	706	788
Non-current operating lease liabilities	571	648
Non-current income tax liabilities and deferred tax liabilities	581	587
Other long-term liabilities	869	912
Liabilities related to assets held for sale - non-current	0	3
Total Liabilities	11,242	12,025
Commitments and contingencies
DXC stockholders’ equity:
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, none issued as of September 30, 2023 and March 31, 2023	0	0
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 200,789,520 issued as of September 30, 2023 and 218,058,482 issued as of March 31, 2023	2	2
Additional paid-in capital	8,280	9,121
Accumulated deficit	(4,143)	(4,665)
Accumulated other comprehensive loss	(774)	(774)
Treasury stock, at cost, 4,541,145 and 3,333,592 shares as of September 30, 2023 and March 31, 2023	(218)	(187)
Total DXC stockholders’ equity	3,147	3,497
Non-controlling interest in subsidiaries	320	323
Total Equity	3,467	3,820
Total Liabilities and Equity	$ 14,709	$ 15,845

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 56	$ 47
Intangible assets, accumulated amortization	5,751	5,670
Property and equipment, accumulated depreciation	$ 3,874	$ 4,111
DXC stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	750,000,000	750,000,000
Common stock, issued (in shares)	200,789,520	218,058,482
Treasury shares (in shares)	4,541,145	3,333,592

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 99	$ 28	$ 141	$ 131
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			719	786
Operating right-of-use expense			181	214
Share-based compensation			47	55
Deferred taxes			(102)	(103)
Gain on dispositions			(39)	(32)
Provision for losses on accounts receivable			2	0	$ (1)
Unrealized foreign currency exchange loss			22	69
Impairment losses and contract write-offs			14	21
Other non-cash charges, net			0	(2)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease (increase) in assets			223	(185)
Decrease in operating lease liability			(181)	(214)
Decrease in other liabilities			(652)	(365)
Net cash provided by operating activities			375	375
Cash flows from investing activities:
Purchases of property and equipment			(108)	(146)
Payments for transition and transformation contract costs			(110)	(114)
Software purchased and developed			(141)	(110)
Business dispositions			0	51
Proceeds from sale of assets			65	109
Other investing activities, net			10	17
Net cash used in investing activities			(284)	(193)
Cash flows from financing activities:
Borrowings of commercial paper			1,098	710
Repayments of commercial paper			(841)	(657)
Principal payments on long-term debt			0	(1)
Payments on finance leases and borrowings for asset financing			(231)	(274)
Proceeds from stock options and other common stock transactions			0	1
Taxes paid related to net share settlements of share-based compensation awards			(34)	(14)
Repurchase of common stock and advance payment for accelerated share repurchase			(505)	(272)
Other financing activities, net			(8)	(6)
Net cash used in financing activities			(521)	(513)
Effect of exchange rate changes on cash and cash equivalents			(16)	(91)
Net decrease in cash and cash equivalents including cash classified within current assets held for sale			(446)	(422)
Cash classified within current assets held for sale			0	10
Net decrease in cash and cash equivalents			(446)	(412)
Cash and cash equivalents at beginning of year			1,858	2,672	2,672
Cash and cash equivalents at end of period	$ 1,412	$ 2,260	$ 1,412	$ 2,260	$ 1,858

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) shares in Thousands, $ in Millions		Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Treasury Stock		Total DXC Equity	Non- Controlling Interest
Beginning balance (in shares) at Mar. 31, 2022			240,508
Beginning balance at Mar. 31, 2022		$ 5,375	$ 3	$ 10,057	$ (4,450)	$ (385)	$ (173)		$ 5,052	$ 323
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		131			129				129	2
Other comprehensive income (loss)		(343)				(339)			(339)	(4)
Share-based compensation expense		49		49					49
Acquisition of treasury stock		(12)					(12)		(12)
Share repurchase program (in shares)			(8,851)
Share repurchase program		(266)	$ (1)	(374)	109				(266)
Stock option exercises and other common stock transactions (in shares)			1,621
Stock option exercises and other common stock transactions		1		1					1
Non-controlling interest distributions and other		1			1				1
Ending balance (in shares) at Sep. 30, 2022			233,278
Ending balance at Sep. 30, 2022		4,936	$ 2	9,733	(4,211)	(724)	(185)		4,615	321
Beginning balance (in shares) at Jun. 30, 2022			232,995
Beginning balance at Jun. 30, 2022		5,049	$ 2	9,708	(4,239)	(563)	(183)		4,725	324
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		28			27				27	1
Other comprehensive income (loss)		(165)				(161)			(161)	(4)
Share-based compensation expense		25		25					25
Acquisition of treasury stock		(2)					(2)		(2)
Stock option exercises and other common stock transactions (in shares)			283
Non-controlling interest distributions and other		1			1				1
Ending balance (in shares) at Sep. 30, 2022			233,278
Ending balance at Sep. 30, 2022		4,936	$ 2	9,733	(4,211)	(724)	(185)		4,615	321
Beginning balance (in shares) at Mar. 31, 2023			218,058
Beginning balance at Mar. 31, 2023		3,820	$ 2	9,121	(4,665)	(774)	(187)	[1]	3,497	323
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		141			135				135	6
Other comprehensive income (loss)		(1)							0	(1)
Share-based compensation expense		45		45					45
Acquisition of treasury stock		(31)					(31)	[1]	(31)
Share repurchase program (in shares)	[2]		(20,934)
Share repurchase program	[2]	(498)		(886)	388				(498)
Stock option exercises and other common stock transactions (in shares)			3,666
Non-controlling interest distributions and other		(9)			(1)				(1)	(8)
Ending balance (in shares) at Sep. 30, 2023			200,790
Ending balance at Sep. 30, 2023		3,467	$ 2	8,280	(4,143)	(774)	(218)	[1]	3,147	320
Beginning balance (in shares) at Jun. 30, 2023			210,584
Beginning balance at Jun. 30, 2023		3,603	$ 2	8,677	(4,445)	(739)	(217)	[1]	3,278	325
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		99			99				99
Other comprehensive income (loss)		(36)				(35)			(35)	(1)
Share-based compensation expense		23		23					23
Acquisition of treasury stock		(1)					(1)	[1]	(1)
Share repurchase program (in shares)	[2]		(9,958)
Share repurchase program	[2]	(216)		(420)	204				(216)
Stock option exercises and other common stock transactions (in shares)			164
Non-controlling interest distributions and other		(5)			(1)				(1)	(4)
Ending balance (in shares) at Sep. 30, 2023			200,790
Ending balance at Sep. 30, 2023		$ 3,467	$ 2	$ 8,280	$ (4,143)	$ (774)	$ (218)	[1]	$ 3,147	$ 320

[1] 4,541,145 treasury shares as of September 30, 2023.

[2] On August 16, 2022, the U.S. Government enacted the Inflation Reduction Act (the “IRA”) into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. We reflect the excise tax within equity as part of the repurchase of the common stock.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - shares	Sep. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Treasury shares (in shares)	4,541,145	3,333,592

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Summary of Significant Accounting Policies

6 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Business

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world’s largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness and customer experience across their IT estates.

Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) as the “statements of comprehensive income (loss),” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income (loss) attributable to non-controlling interests are presented separately in the statements of comprehensive income (loss). All intercompany transactions and balances have been eliminated. Certain amounts reported in the previous year have been reclassified to conform to the current year presentation.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (“fiscal 2023”).

Use of Estimates

The preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.

Recent Accounting Pronouncements

Recently issued Accounting Standards Updates (“ASUs”) effective after September 30, 2023 are not expected to have a material effect on DXC’s condensed consolidated financial statements.

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Divestitures	6 Months Ended
	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Divestitures During the first six months of fiscal 2024 and fiscal 2023, the Company sold insignificant businesses that resulted in a loss of $7 million and $3 million, respectively.

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Earnings per Share

6 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

Basic earnings per share (“EPS”) is computed using the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS:

	Three Months Ended				Six Months Ended
(in millions, except per-share amounts)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income attributable to DXC common stockholders:	$	99	$	27	$	135	$	129
Common share information:
Weighted average common shares outstanding for basic EPS	201.72		229.96		205.90		231.21
Dilutive effect of stock options and equity awards	1.34		3.21		3.00		3.72
Weighted average common shares outstanding for diluted EPS	203.06		233.17		208.90		234.93
Earnings per share:
Basic	$	0.49	$	0.12	$	0.66	$	0.56
Diluted	$	0.49	$	0.12	$	0.65	$	0.55

Certain share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have had an anti-dilutive effect. The number of awards excluded were as follows:

	Three Months Ended		Six Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Stock Options	960,455	475,559	924,990	478,128
Restricted Stock Units	1,556,542	2,724,766	1,480,781	2,065,992
Performance Stock Units	1,700,588	1,079,287	35,604	721,803

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Receivables

6 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Receivables

Receivables

Allowance for Doubtful Accounts

The following table presents the change in balance for the allowance for doubtful accounts:

	As of
(in millions)	September 30, 2023		March 31, 2023
Beginning balance	$	47	$	55
Provisions for losses on accounts receivable	2		(1)
Other adjustments to allowance and write-offs	7		(7)
Ending balance	$	56	$	47

Receivables Facility

The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified as of September 30, 2023, the “Receivables Facility”) with certain unaffiliated financial institutions (the “Purchasers”) for the sale of commercial accounts receivable in the United States up to a maximum amount of $400 million. The Receivables Facility was amended on July 28, 2023 extending the termination date to July 26, 2024.

As of September 30, 2023, the total availability under the Receivables Facility was $384 million and the amount sold to the Purchasers was $378 million, which was derecognized from the Company’s balance sheet. As of September 30, 2023, the Company recorded an asset of $6 million within accounts receivable because the amount of cash proceeds received by the Company under the Receivables Facility was less than the total availability.

The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.

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Leases

6 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	91	$	108	$	181	$	214
Short-term lease cost	9		11		16		19
Variable lease cost	16		17		31		39
Sublease income	(6)		(6)		(10)		(10)
Total operating costs	$	110	$	130	$	218	$	262

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	181	$	214
ROU assets obtained in exchange for operating lease liabilities(1)	$	95	$	117

(1) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU operating lease assets	Operating right-of-use assets, net	$	809	$	909
Operating lease liabilities	Current operating lease liabilities	$	295	$	317
Operating lease liabilities	Non-current operating lease liabilities	571		648
Total operating lease liabilities		$	866	$	965

The weighted-average operating lease term was 4.0 years and 3.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average operating lease discount rate was 4.4% and 3.9% as of September 30, 2023 and March 31, 2023, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	169	$	285	$	196	$	112	$	89	$	103	$	954
Less: imputed interest													(88)
Total operating lease liabilities													$	866

Finance Leases

The components of finance lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization of right-of-use assets	$	37	$	55	$	79	$	116
Interest on lease liabilities	3		4		7		9
Total finance lease expense	$	40	$	59	$	86	$	125

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)	Six Months Ended September 30, 2023		Six Months Ended September 30, 2022
Interest paid for finance lease liabilities – Operating cash flows	$	7	$	9
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	124		168
Total cash paid in the measurement of finance lease obligations	$	131	$	177
Capital expenditures through finance lease obligations(1)	$	41	$	44

(1) See Note 17 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU finance lease assets	Property and Equipment, net	$	327	$	424
Finance lease	Short-term debt and current maturities of long-term debt	$	196	$	215
Finance lease	Long-term debt, net of current maturities	259		287
Total finance lease liabilities(1)		$	455	$	502

(1) See Note 10 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average finance lease discount rate was 3.8% and 3.4% as of September 30, 2023 and March 31, 2023, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	108	$	173	$	110	$	64	$	21	$	4	$	480
Less: imputed interest													(25)
Total finance lease liabilities													$	455

Leases

Leases

The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	91	$	108	$	181	$	214
Short-term lease cost	9		11		16		19
Variable lease cost	16		17		31		39
Sublease income	(6)		(6)		(10)		(10)
Total operating costs	$	110	$	130	$	218	$	262

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	181	$	214
ROU assets obtained in exchange for operating lease liabilities(1)	$	95	$	117

(1) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU operating lease assets	Operating right-of-use assets, net	$	809	$	909
Operating lease liabilities	Current operating lease liabilities	$	295	$	317
Operating lease liabilities	Non-current operating lease liabilities	571		648
Total operating lease liabilities		$	866	$	965

The weighted-average operating lease term was 4.0 years and 3.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average operating lease discount rate was 4.4% and 3.9% as of September 30, 2023 and March 31, 2023, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	169	$	285	$	196	$	112	$	89	$	103	$	954
Less: imputed interest													(88)
Total operating lease liabilities													$	866

Finance Leases

The components of finance lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization of right-of-use assets	$	37	$	55	$	79	$	116
Interest on lease liabilities	3		4		7		9
Total finance lease expense	$	40	$	59	$	86	$	125

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)	Six Months Ended September 30, 2023		Six Months Ended September 30, 2022
Interest paid for finance lease liabilities – Operating cash flows	$	7	$	9
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	124		168
Total cash paid in the measurement of finance lease obligations	$	131	$	177
Capital expenditures through finance lease obligations(1)	$	41	$	44

(1) See Note 17 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU finance lease assets	Property and Equipment, net	$	327	$	424
Finance lease	Short-term debt and current maturities of long-term debt	$	196	$	215
Finance lease	Long-term debt, net of current maturities	259		287
Total finance lease liabilities(1)		$	455	$	502

(1) See Note 10 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.9 years as of September 30, 2023 and March 31, 2023, respectively. The weighted-average finance lease discount rate was 3.8% and 3.4% as of September 30, 2023 and March 31, 2023, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	108	$	173	$	110	$	64	$	21	$	4	$	480
Less: imputed interest													(25)
Total finance lease liabilities													$	455

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Fair Value

6 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair Value Measurements on a Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding pension assets and derivative assets and liabilities. See Note 7 – “Derivative Instruments” for information about derivative assets and liabilities. Note 10 – “Debt” includes information about the estimated fair value of the Company’s long-term debt. There were no transfers between any of the levels during the periods presented.

	Fair Value Hierarchy
(in millions)	September 30, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	32	$	32	$	—	$	—
Time deposits(1)	136		136		—		—
Other securities(2)	46		—		44		2
Total assets	$	214	$	168	$	44	$	2

	March 31, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	75	$	75	$	—	$	—
Time deposits(1)	37		37		—		—
Other securities(2)	48		—		46		2
Total assets	$	160	$	112	$	46	$	2
Liabilities:
Contingent consideration(3)	$	2	$	—	$	—	$	2
Total liabilities	$	2	$	—	$	—	$	2

(1) Cost basis approximated fair value due to the short period of time to maturity.

(2) Other securities include available-for-sale equity security investments with Level 2 inputs that have a cost basis of $51 million and $52 million as of September 30, 2023 and March 31, 2023, respectively. For the periods presented, gains and losses are insignificant and are included in other income, net in the Company’s statements of operations.

(3) During the first six months of fiscal 2024, the Company completed the payment for its contingent consideration obligation.

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Derivative Instruments

6 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

In the normal course of business, the Company is exposed to interest rate and foreign exchange rate fluctuations. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not use derivative instruments for trading or any speculative purposes.

Derivatives Designated for Hedge Accounting

Cash flow hedges

The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Euro and Indian Rupee-denominated obligations and forecasted transactions. The notional amounts of foreign currency forward contracts designated as cash flow hedges as of September 30, 2023 and March 31, 2023 were $889 million and $842 million, respectively. As of September 30, 2023, the related forecasted transactions extend through September 2025.

During the three and six months ended September 30, 2023 and September 30, 2022, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

See Note 15 - “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting. As of September 30, 2023, $1 million of the existing amount of gain related to the cash flow hedge reported in accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

Derivatives Not Designated for Hedge Accounting

The derivative instruments not designated as hedges for purposes of hedge accounting include certain short-term foreign currency forward contracts. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates.

Foreign currency forward contracts

The Company manages the exposure to fluctuations in foreign currencies by using short-term foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions. The net notional amounts of the foreign currency forward contracts outstanding as of September 30, 2023 and March 31, 2023 were $2.4 billion and $2.5 billion, respectively.

The following table presents the foreign currency (gain) loss to Other income, net:

	For the Three Months Ended				For the Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign currency remeasurement (1)	$	25	$	40	$	21	$	76
Undesignated foreign currency forward contracts (2)	(26)		(41)		(30)		(79)
Total - Foreign currency gain	$	(1)	$	(1)	$	(9)	$	(3)

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.

(2) Movements from hedges used to manage the Company’s foreign currency remeasurement exposure, and the associated costs of the hedging program.

Fair Value of Derivative Instruments

All derivative instruments are recorded at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables present the fair values of derivative instruments included in the balance sheets:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
Derivatives designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	9	$	6
	Accrued expenses and other current liabilities	$	6	$	13
Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	35	$	15
	Accrued expenses and other current liabilities	$	13	$	16

The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates and is based on the period-end foreign currency exchange rates and forward points that are classified as Level 2 inputs.

Other Risks for Derivative Instruments

The Company is exposed to the risk of losses in the event of non-performance by the counterparties to its derivative contracts. The amount subject to credit risk related to derivative instruments is generally limited to the amount, if any, by which a counterparty’s obligations exceed the obligations of the Company with that counterparty. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. With respect to its foreign currency derivatives, as of September 30, 2023, there were six counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $21 million.

The Company also enters into enforceable master netting arrangements with some of its counterparties. However, for financial reporting purposes, it is the Company’s policy not to offset derivative assets and liabilities despite the existence of enforceable master netting arrangements. The potential effect of such netting arrangements on the Company’s balance sheets is not material for the periods presented.

Non-Derivative Financial Instruments Designated for Hedge Accounting

The Company applies hedge accounting for foreign currency-denominated debt used to manage foreign currency exposures on its net investments in certain non-U.S. operations. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged.

Net Investment Hedges

DXC seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain non-U.S. operations with foreign currency-denominated debt. For foreign currency-denominated debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates. For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation. Gains or losses on individual net investments in non-U.S. operations are reclassified to earnings from accumulated other comprehensive income (loss) when such net investments are sold or substantially liquidated.

As of September 30, 2023 and March 31, 2023, DXC had $265 million and $272 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S. subsidiaries. For the three and six months ended September 30, 2023, the pre-tax gain on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive loss was $8 million and $7 million, respectively.

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Intangible Assets

6 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consisted of the following:

	As of September 30, 2023						As of March 31, 2023
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	3,993	$	3,205	$	788	$	4,009	$	3,290	$	719
Customer related intangible assets	3,887		2,409		1,478		3,927		2,260		1,667
Other intangible assets	307		137		170		303		120		183
Total intangible assets	$	8,187	$	5,751	$	2,436	$	8,239	$	5,670	$	2,569

The components of amortization expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Intangible asset amortization	$	195	$	198	$	378	$	397
Transition and transformation contract cost amortization(1)	54		53		102		105
Total amortization expense	$	249	$	251	$	480	$	502

(1)Transaction and transformation contract costs are included within other assets on the balance sheets.

Estimated future amortization related to intangible assets as of September 30, 2023 is as follows:

Fiscal Year	(in millions)
Remainder of 2024	$	402
2025	656
2026	588
2027	406
2028	170
Thereafter	214
Total	$	2,436

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Goodwill

6 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of September 30, 2023.

(in millions)	GBS		GIS		Total
Balance as of March 31, 2023, net	$	539	$	—	$	539
Foreign currency translation	(9)		—		(9)
Balance as of September 30, 2023, net	$	530	$	—	$	530
Goodwill, gross	5,020		5,066		10,086
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of September 30, 2023, net	$	530	$	—	$	530

The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances.

Goodwill Impairment Analyses

The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

The Company concluded that, as a result of its qualitative assessment performed on July 1, 2023, it remained more likely than not that the fair value of the GBS reporting unit exceeds its carrying amount.

As of September 30, 2023, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators and therefore, it was unnecessary to perform an interim goodwill impairment test as of September 30, 2023.

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Debt

6 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

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

(in millions)	Interest Rates	Fiscal Year Maturities	9/30/2023(1)		3/31/2023(1)
Short-term debt and current maturities of long-term debt
Commercial paper(2)	4.08% - 4.33%	2024	$	348	$	109
Current maturities of long-term debt	Various	2024 - 2025	128		176
Current maturities of finance lease liabilities	0.00% - 14.59%	2024 - 2025	196		215
Short-term debt and current maturities of long-term debt			$	672	$	500
Long-term debt, net of current maturities
€650 million Senior notes	1.75%	2026	687		704
$700 million Senior notes	1.80%	2027	696		696
€750 million Senior notes	0.45%	2028	790		810
$650 million Senior notes	2.375%	2029	646		645
€600 million Senior notes	0.95%	2032	630		646
Finance lease liabilities	0.00% - 14.59%	2024 - 2029	455		502
Borrowings for assets acquired under long-term financing	0.00% - 9.78%	2024 - 2029	209		285
Other borrowings	Various	2024	2		3
Long-term debt			4,115		4,291
Less: current maturities			324		391
Long-term debt, net of current maturities			$	3,791	$	3,900

(1)The carrying amounts of the senior notes as of September 30, 2023 and March 31, 2023, include the remaining principal outstanding of $3,468 million and $3,523 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $19 million and $22 million, respectively.

(2)At DXC’s option, DXC can borrow up to a maximum of €1 billion or its equivalent in £ and $.

Term Loan

During the second quarter of fiscal 2023, the Company entered into a $500 million term loan credit agreement (as amended, the “USD Term Loan”) with certain unaffiliated financial institutions. The USD Term Loan was required to be drawn down by September 1, 2023. The Company did not draw on the USD Term Loan and the facility has been terminated during the second quarter of fiscal 2024.

Fair Value of Debt

The estimated fair value of the Company’s long-term debt, excluding finance lease liabilities, was $3.1 billion and $3.3 billion as of September 30, 2023 and March 31, 2023, respectively, compared with carrying value of $3.7 billion and $3.8 billion as of September 30, 2023 and March 31, 2023, respectively.

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Revenue

6 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Revenue Recognition

The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
United States	$	1,002	$	1,093	$	2,004	$	2,224
United Kingdom	460		452		925		925
Other Europe	1,051		1,064		2,115		2,202
Australia	330		371		672		762
Other International	593		586		1,166		1,160
Total Revenues	$	3,436	$	3,566	$	6,882	$	7,273

The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 18 – “Segment Information” for the Company’s segment disclosures.

Remaining Performance Obligations

As of September 30, 2023, approximately $18.5 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 24% of these remaining performance obligations in fiscal 2024, with the remainder of the balance recognized thereafter.

Contract Balances

The following table provides information about the balances of the Company’s trade receivables and contract assets and contract liabilities:

	As of
(in millions)	September 30, 2023		March 31, 2023
Trade receivables, net	$	2,081	$	2,269
Contract assets	$	377	$	366
Contract liabilities	$	1,578	$	1,842

Change in contract liabilities were as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Balance, beginning of period	$	1,842	$	1,915
Deferred revenue	873		1,075
Recognition of deferred revenue	(1,085)		(1,145)
Currency translation adjustment	(23)		(168)
Other	(29)		(21)
Balance, end of period	$	1,578	$	1,656

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Restructuring Costs

6 Months Ended

Sep. 30, 2023

Restructuring Costs [Abstract]

Restructuring Costs

Restructuring Costs

The composition of restructuring liabilities by financial statement line item is as follows:

	As of
(in millions)	September 30, 2023		March 31, 2023
Accrued expenses and other current liabilities	$	60	$	105
Other long-term liabilities	15		22
Total	$	75	$	127

Summary of Restructuring Plans

Fiscal 2024 Plan

During fiscal 2024, management approved global cost savings initiatives designed to better align the Company’s facilities and data centers (the “Fiscal 2024 Plan”).

Restructuring Liability Reconciliations by Plan

	Restructuring Liability as of March 31, 2023		Costs Expensed, Net of Reversals		Costs Not Affecting Restructuring Liability(1)		Cash Paid		Other(2)		Restructuring Liability as of September 30, 2023
Fiscal 2024 Plan
Workforce Reductions	$	—	$	—	$	—	$	—	$	—	$	—
Facilities Costs	—		34		(27)		(1)		—		6
	—		34		(27)		(1)		—		6
Fiscal 2023 Plan
Workforce Reductions	$	79	$	2	$	—	$	(43)	$	—	$	38
Facilities Costs	1		14		(4)		(11)		1		1
	80		16		(4)		(54)		1		39
Other Prior Year and Acquired Plans
Workforce Reductions	$	45	$	(1)	$	—	$	(14)	$	(1)	$	29
Facilities Costs	2		6		(1)		(6)		—		1
	47		5		(1)		(20)		(1)		30
Total	$	127	$	55	$	(32)	$	(75)	$	—	$	75

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.

(2) Foreign currency translation adjustments.

Included in restructuring costs for the six months ended September 30, 2023 is $14 million related to amortization of the right-of-use asset and interest expense for leased facilities that have been vacated but are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.

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Pension and Other Benefit Plans

6 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Pension and Other Benefit Plans

Pension and Other Benefit Plans

Defined Benefit Plans

The components of net periodic pension income were:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Service cost	$	15	$	18	$	30	$	37
Interest cost	77		63		156		130
Expected return on assets	(112)		(122)		(226)		(254)
Amortization of prior service costs	(1)		(2)		(3)		(4)
Recognition of actuarial loss	—		1		—		1
Net periodic pension income	$	(21)	$	(42)	$	(43)	$	(90)

The service cost component of net periodic pension income is presented in costs of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net.

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Income Taxes

6 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate (“ETR”) was 22.7% and 48.1% for the three months ended September 30, 2023 and September 30, 2022, respectively, and 31.6% and 25.6% for the six months ended September 30, 2023 and September 30, 2022, respectively. For the three and six months ended September 30, 2023, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, a decrease in valuation allowances on deferred tax assets, and the foreign tax credit. For the three months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and the tax impact of business divestitures. For the six months ended September 30, 2022, the primary drivers of the ETR were the global mix of income, tax impact of business divestitures, U.S. tax on foreign income, and a decrease in unrecognized tax benefits due to income tax audit settlements and statute of limitation expirations.

The majority of our global unremitted foreign earnings have been taxed or would be exempt from U.S. tax upon repatriation. Such earnings and all current foreign earnings are not indefinitely reinvested. The following earnings are considered indefinitely reinvested: approximately $471 million that could be subject to U.S. federal tax when repatriated to the U.S. under section 1.245A-5(b) of the final Treasury regulations; and approximately $200 million of our accumulated earnings in India. A portion of these indefinitely reinvested earnings may be subject to foreign and U.S. state tax consequences when remitted. The Company will continue to evaluate its position in the future based on its future strategy and cash needs.

In connection with the merger of Computer Sciences Corporation (“CSC”) and the Enterprise Services business of Hewlett Packard Enterprise Company (the “HPES Merger”), the Company entered into a tax matters agreement with Hewlett Packard Enterprise Company (“HPE”). HPE generally will be responsible for tax liabilities arising prior to the HPES Merger, and DXC is liable to HPE for income tax receivables it receives related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $16 million tax indemnification receivable related to uncertain tax positions, a $52 million tax indemnification receivable related to other tax payables, and a $91 million tax indemnification payable related to other tax receivables.

In connection with the spin-off of the Company’s former U.S. public sector business (the “USPS Separation”), the Company entered into a tax matters agreement with Perspecta Inc. (including its successors and permitted assigns, “Perspecta”). The Company generally will be responsible for tax liabilities arising prior to the USPS Separation, and Perspecta is liable to the Company for income tax receivables related to pre-spin-off periods. Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE. The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $17 million tax indemnification receivable from Perspecta related to other tax receivables and a $6 million tax indemnification payable to Perspecta related to income tax and other tax payables.

In connection with the sale of its healthcare provider software business (“HPS”), the Company entered into a tax matters agreement with Dedalus. Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of the HPS business.

The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal 2009 through the tax year ended October 31, 2018. With respect to CSC’s fiscal 2009 through 2017 federal tax returns, the Company participated in settlement negotiations with the IRS Office of Appeals. The IRS examined several issues for these tax years that resulted in various audit adjustments. The Company and the IRS Office of Appeals have settled various audit adjustments, and we disagree with the IRS’ disallowance of certain losses and deductions resulting from restructuring costs and tax planning strategies in previous years. As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the U.S. Tax Court, these matters are not fully reserved and would result in incremental federal and state tax expense and cash tax payments of approximately $491 million (including estimated interest and penalties) for the unreserved portion of these items if we do not prevail. We have received notices of deficiency with respect to fiscal 2009, 2010, 2011 and 2013 and have timely filed petitions with the U.S. Tax Court. During the first six months of fiscal 2024, some of these cases were dismissed, but the dismissals were procedural in nature only and do not impact the Company’s potential liability for the aforementioned fiscal years. We do not expect the U.S. Tax Court matters to be resolved in the next 12 months.

The Company’s fiscal years 2009, 2010, and 2013 are in the U.S. Tax Court, and consequently these years will remain open until such proceedings have concluded. The statute of limitations on assessments related to a refund claim for fiscal year 2012 is open through February 28, 2025. The Company has agreed to extend the statute of limitations for fiscal and tax return years 2014 through 2020 to September 30, 2024. The Company expects to reach resolution for fiscal and tax return years 2009 through 2020 no earlier than fiscal 2025.

The Company may settle certain other tax examinations for different amounts than the Company has accrued as uncertain tax positions. Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future. For the three months ended September 30, 2023, the Company’s liability for uncertain tax positions increased by $2 million (excluding interest and penalties and related tax attributes) primarily due to the benefit of U.S. research and development income tax credits. The Company believes the outcomes that are reasonably possible within the next 12 months to result in a reduction in its liability for uncertain tax positions, excluding interest, penalties, and tax carryforwards, would be approximately $14 million.

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Stockholders' Equity

6 Months Ended

Sep. 30, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchases

The details of shares repurchased during the six months ended September 30, 2023 and September 30, 2022 are shown below:

	Fiscal 2024					Fiscal 2023
Fiscal Period	Number of Shares Repurchased	Average Price Per Share		Amount (in millions)		Number of Shares Repurchased	Average Price Per Share		Amount (in millions)
1st Quarter	10,975,643	$	25.53	$	280	8,850,912	$	30.09	$	266
2nd Quarter	9,958,585	$	21.50	214		—	$	—	—
Total	20,934,228	$	23.61	$	494	8,850,912	$	30.09	$	266

Accumulated Other Comprehensive Loss

The following table shows the changes in accumulated other comprehensive loss, net of taxes:

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2023	$	(985)	$	(7)	$	218	$	(774)
Other comprehensive income before reclassifications	(5)		5		—		—
Amounts reclassified from accumulated other comprehensive loss	—		2		(2)		—
Balance at September 30, 2023	$	(990)	$	—	$	216	$	(774)

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2022	$	(651)	$	10	$	256	$	(385)
Other comprehensive loss before reclassifications	(337)		11		—		(326)
Amounts reclassified from accumulated other comprehensive loss	—		(9)		(4)		(13)
Balance at September 30, 2022	$	(988)	$	12	$	252	$	(724)

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Stock Incentive Plans

6 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Incentive Plans

Stock Incentive Plans

Restricted Stock Units and Performance-Based Restricted Stock Units

Restricted stock units (“RSUs”) represent the right to receive one share of DXC common stock upon a future settlement date, subject to vesting and other terms and conditions of the award, plus any dividend equivalents accrued during the award period. The Company also grants performance-based restricted stock units (“PSUs”), which generally vest over a three-year period. The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified market- and performance-based criteria over the three-year vesting period. The fair value of RSUs and PSUs is based on the Company’s common stock closing price on the grant date. For PSUs with a market-based condition, DXC uses a Monte Carlo simulation model to value the grants.

	Employee Equity Plan			Director Equity Plan
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of March 31, 2023	7,449,379	$	37.11	147,487	$	35.80
Granted	5,105,366	$	25.16	124,000	$	19.35
Settled	(3,918,850)	$	23.48	(69,189)	$	31.68
Canceled/Forfeited	(718,992)	$	43.13	—	$	—
Outstanding as of September 30, 2023	7,916,903	$	35.29	202,298	$	27.13

Share-Based Compensation

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total share-based compensation cost	$	24	$	27	$	47	$	55
Related income tax benefit	$	4	$	3	$	7	$	6

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Cash Flows

6 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Cash Flows

Cash Flows

Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for:
Interest	$	135	$	74
Taxes on income, net of refunds (1)	$	235	$	230
Non-cash activities:
Operating:
ROU assets obtained in exchange for lease, net (2)	$	95	$	117
Assets acquired under long-term financing	$	4	$	37
Investing:
Capital expenditures in accounts payable and accrued expenses	$	96	$	—
Capital expenditures through finance lease obligations	$	41	$	44
Assets acquired under long-term financing	$	27	$	6
Financing:
Shares repurchased but not settled in cash (3)	$	9	$	—

(1) Income tax refunds were $18 million and $30 million for the six months ended September 30, 2023 and September 30, 2022, respectively.

(2) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively.

(3) On August 16, 2022, the U.S. government enacted the IRA into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.

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Segment Information

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. DXC's chief operating decision maker ("CODM"), the chief executive officer, obtains, reviews, and manages the Company’s financial performance based on these segments. The CODM uses these results, in part, to evaluate the performance of, and allocate resources to, each of the segments.

Global Business Services (“GBS”)

GBS provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. GBS offerings include:

•Analytics and Engineering. Our portfolio of analytics services and extensive partner ecosystem help customers gain rapid insights, automate operations, and accelerate their transformation journeys. We provide software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

•Applications. We help simplify, modernize, and accelerate mission-critical applications that support business agility and growth through our Applications services. We are the engineers that enable our customers to take advantage of the latest digital platforms with both customized and pre-packaged applications, ensure resiliency, launch new products and enter new markets with minimal disruption. We help customers define, execute and manage their enterprise applications strategy.

•Insurance Software and Business Process Services. We partner with insurance clients, to modernize and run IT systems, provide proprietary modular insurance software and platforms, and operate the full spectrum of insurance business process services. We also help operate and continuously improve bank cards, payment and lending processes and operations, and customer experience operations.

Global Infrastructure Services (“GIS”)

GIS provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. GIS offerings include:

•Security. Our Security services help customers assess risk and proactively address all facets of the security environment, from threat intelligence to compliance. We leverage proven methodologies, intelligent automation and industry-leading partners to tailor security solutions to customers’ unique business needs. Our experts weave cyber resilience into IT security, operations and culture. Whether migrating to the cloud, protecting data with a Zero Trust strategy or managing a security operations center, our Security services enable our customers to focus on their business.

•Cloud Infrastructure and IT Outsourcing (“ITO”). We enable customers to do Cloud Right™, making the right investments at the right time and on the right platforms. We orchestrate hybrid cloud and multicloud environments, ensuring private and public clouds, servers and mainframes operate effectively together. We provide companies with tailored plans for cloud migration and optimization to enable successful transformation. We leverage our deep expertise in legacy IT and drive innovation with reliable, secure, mission-critical IT Outsourcing services – from compute and data center, to storage and backup, to network, to mainframe and to business continuity – providing a clear path to modernization.

•Modern Workplace. Our Modern Workplace services put the employee experience first, helping them achieve new levels of productivity, engagement and collaboration while working seamlessly and securely on any device. Organizations are empowered to deliver a consumer-like experience, centralize IT management and support services, and improve the total cost of ownership.

Segment Measures

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Three Months Ended September 30, 2023
Revenues	$	1,709	$	1,727	$	3,436	$	—	$	3,436
Segment profit	$	213	$	101	$	314	$	(63)	$	251
Depreciation and amortization(1)	$	49	$	197	$	246	$	26	$	272
Three Months Ended September 30, 2022
Revenues	$	1,713	$	1,853	$	3,566	$	—	$	3,566
Segment profit	$	218	$	114	$	332	$	(63)	$	269
Depreciation and amortization(1)	$	40	$	216	$	256	$	23	$	279

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Six Months Ended September 30, 2023
Revenues	$	3,412	$	3,470	$	6,882	$	—	$	6,882
Segment profit	$	405	$	192	$	597	$	(122)	$	475
Depreciation and amortization(1)	$	94	$	381	$	475	$	52	$	527
Six Months Ended September 30, 2022
Revenues	$	3,471	$	3,802	$	7,273	$	—	$	7,273
Segment profit	$	428	$	241	$	669	$	(141)	$	528
Depreciation and amortization(1)	$	81	$	434	$	515	$	49	$	564

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $89 million and $101 million for the three months ended September 30, 2023 and 2022, respectively, and $178 million and $205 million for the six months ended September 30, 2023 and 2022, respectively.

Reconciliation of Reportable Segment Profit to Consolidated Total

The Company's management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenues less cost of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on DXC's foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs generally include certain corporate function costs, stock-based compensation expense, pension and other post-retirement benefit (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs and amortization of acquired intangible assets.

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Profit
Total profit for reportable segments	$	314	$	332	$	597	$	669
All other loss	(63)		(63)		(122)		(141)
Subtotal	$	251	$	269	$	475	$	528
Interest income	53		28		102		48
Interest expense	(78)		(44)		(144)		(81)
Restructuring costs	(35)		(53)		(55)		(86)
Transaction, separation and integration-related costs	(3)		(4)		(4)		(6)
Amortization of acquired intangible assets	(89)		(101)		(178)		(205)
Merger related indemnification	(2)		—		(13)		(10)
SEC Matter	—		(8)		—		(8)
Gains (losses) on dispositions	33		(32)		28		(3)
Impairment losses	(2)		—		(5)		—
Pension and OPEB actuarial and settlement losses	—		(1)		—		(1)
Income before income taxes	$	128	$	54	$	206	$	176

Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.

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Commitments and Contingencies

6 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

Minimum purchase commitments as of September 30, 2023 were as follows:

Fiscal year	Minimum Purchase Commitment
(in millions)
Remainder of 2024	$	349
2025	616
2026	536
2027	119
2028	75
Thereafter	23
Total	$	1,718

Contingencies

Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise: On August 18, 2016, this purported class and collective action was filed in the U.S. District Court for the Northern District of California, against HP and HPE alleging violations of the Federal Age Discrimination in Employment Act (“ADEA”) and California state law, in connection with workforce reductions that occurred in or after August 2012 in California, and in or after as early as December 2014 in other U.S. locations. Former business units of HPE now owned by the Company, and former business units of the Company now owned by Peraton (formerly Perspecta), may be proportionately liable for any recovery by plaintiffs in this matter.

In December 2020, Plaintiffs filed a motion for preliminary certification of the collective action, which Defendants opposed. In April 2021, the court granted Plaintiffs’ motion for preliminary certification and lifted the previously imposed stay of the action. In November 2021, notice was sent to putative members of the ADEA collectives regarding participation in the case. In February 2022, the notice period closed. In September 2023, the parties entered into a settlement agreement to resolve the matter and submitted it to the District Court for approval. In October 2023, the District Court entered an order preliminarily approving the proposed settlement.

Securities Litigation: Previously disclosed securities litigation matters have been dismissed, with one case remaining, in the Superior Court of the State of California.

On August 20, 2019, a purported class action lawsuit was filed in the Superior Court of the State of California, County of Santa Clara, against the Company, directors of the Company, and a former officer of the Company, among other defendants. The action asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, and is premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s prospects and expected performance. The putative class of plaintiffs includes former shareholders of Computer Sciences Corporation (“CSC”) who exchanged their CSC shares for the Company’s common stock pursuant to the offering documents filed with the Securities and Exchange Commission in connection with the April 2017 transaction that formed DXC.

The State of California action had been stayed pending the outcome of the substantially similar federal action filed in the United States District Court for the Northern District of California. The federal action was dismissed with prejudice in December 2021. Thereafter, the state court lifted the stay and entered an order permitting additional briefing by the parties. In March 2022, Plaintiffs filed an amended complaint, which the Company moved to dismiss. In August 2022, the Court granted the Company’s motion to dismiss, but permitted Plaintiffs to amend and refile their complaint. In September 2022, Plaintiffs filed a second amended complaint, which the Company moved to dismiss. In January 2023, the Court issued an order denying the Company’s motion to dismiss the second amended complaint. In March 2023, the Court entered a scheduling order setting a trial date for September 2025. A hearing on Plaintiffs’ motion for class certification is scheduled for January 2024. The case is otherwise in discovery.

The Company believes that the final remaining lawsuit described above is also without merit, and intends to vigorously defend it.

Tax Examinations: The Company is under IRS examination in the U.S. on its federal income tax returns for certain fiscal years and is in disagreement with the IRS on certain tax positions, which are currently being contested in the U.S. Tax Court. For more detail, see Note 14 – “Income Taxes” for further information.

OFAC Matter: In August 2022, the Company submitted an initial notification of voluntary self-disclosure to the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) regarding potential violations of U.S. sanctions on Russia. The self-disclosure pertains to the Company’s sale of Luxoft’s Russia business to IBS Holding LLC in April 2022, as part of the Company’s exit from the Russian market following Russia’s invasion of Ukraine. The Company has also submitted an initial notification of voluntary self-disclosure to the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) regarding potential export control violations in connection with its exit from the Russian market. The Company’s review of potential sanctions violations is ongoing, and the Company may make further disclosures to relevant agencies as its review continues.

In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management’s view of the expected outcome. DXC consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income attributable to DXC common stockholders:	$ 99	$ 27	$ 135	$ 129

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) as the “statements of comprehensive income (loss),” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income (loss) attributable to non-controlling interests are presented separately in the statements of comprehensive income (loss). All intercompany transactions and balances have been eliminated. Certain amounts reported in the previous year have been reclassified to conform to the current year presentation.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (“fiscal 2023”).

Use of Estimates

Use of EstimatesThe preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently issued Accounting Standards Updates (“ASUs”) effective after September 30, 2023 are not expected to have a material effect on DXC’s condensed consolidated financial statements.

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Earnings per Share (Tables)

6 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) per Share

The following table reflects the calculation of basic and diluted EPS:

	Three Months Ended				Six Months Ended
(in millions, except per-share amounts)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net income attributable to DXC common stockholders:	$	99	$	27	$	135	$	129
Common share information:
Weighted average common shares outstanding for basic EPS	201.72		229.96		205.90		231.21
Dilutive effect of stock options and equity awards	1.34		3.21		3.00		3.72
Weighted average common shares outstanding for diluted EPS	203.06		233.17		208.90		234.93
Earnings per share:
Basic	$	0.49	$	0.12	$	0.66	$	0.56
Diluted	$	0.49	$	0.12	$	0.65	$	0.55

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The number of awards excluded were as follows:

	Three Months Ended		Six Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Stock Options	960,455	475,559	924,990	478,128
Restricted Stock Units	1,556,542	2,724,766	1,480,781	2,065,992
Performance Stock Units	1,700,588	1,079,287	35,604	721,803

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Receivables (Tables)

6 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Summary of Allowance for Doubtful Accounts for Trade Accounts Receivable

The following table presents the change in balance for the allowance for doubtful accounts:

	As of
(in millions)	September 30, 2023		March 31, 2023
Beginning balance	$	47	$	55
Provisions for losses on accounts receivable	2		(1)
Other adjustments to allowance and write-offs	7		(7)
Ending balance	$	56	$	47

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Leases (Tables)

6 Months Ended

Sep. 30, 2023

Leases [Abstract]

Components of Lease Expense and Supplemental Cash Flow Information Related to Leases

The components of operating lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	91	$	108	$	181	$	214
Short-term lease cost	9		11		16		19
Variable lease cost	16		17		31		39
Sublease income	(6)		(6)		(10)		(10)
Total operating costs	$	110	$	130	$	218	$	262

The components of finance lease expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amortization of right-of-use assets	$	37	$	55	$	79	$	116
Interest on lease liabilities	3		4		7		9
Total finance lease expense	$	40	$	59	$	86	$	125

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)	Six Months Ended September 30, 2023		Six Months Ended September 30, 2022
Interest paid for finance lease liabilities – Operating cash flows	$	7	$	9
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	124		168
Total cash paid in the measurement of finance lease obligations	$	131	$	177
Capital expenditures through finance lease obligations(1)	$	41	$	44

(1) See Note 17 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

Supplemental Balance Sheet Information Related to Leases

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	181	$	214
ROU assets obtained in exchange for operating lease liabilities(1)	$	95	$	117

(1) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU operating lease assets	Operating right-of-use assets, net	$	809	$	909
Operating lease liabilities	Current operating lease liabilities	$	295	$	317
Operating lease liabilities	Non-current operating lease liabilities	571		648
Total operating lease liabilities		$	866	$	965

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
ROU finance lease assets	Property and Equipment, net	$	327	$	424
Finance lease	Short-term debt and current maturities of long-term debt	$	196	$	215
Finance lease	Long-term debt, net of current maturities	259		287
Total finance lease liabilities(1)		$	455	$	502

(1) See Note 10 – “Debt” for further information on finance lease liabilities.

Maturities of Operating Lease Liabilities

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	169	$	285	$	196	$	112	$	89	$	103	$	954
Less: imputed interest													(88)
Total operating lease liabilities													$	866

Maturities of Finance Lease Liabilities

The following maturity analysis presents expected undiscounted cash payments for finance leases as of September 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	108	$	173	$	110	$	64	$	21	$	4	$	480
Less: imputed interest													(25)
Total finance lease liabilities													$	455

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Fair Value (Tables)

6 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding pension assets and derivative assets and liabilities. See Note 7 – “Derivative Instruments” for information about derivative assets and liabilities. Note 10 – “Debt” includes information about the estimated fair value of the Company’s long-term debt. There were no transfers between any of the levels during the periods presented.

	Fair Value Hierarchy
(in millions)	September 30, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	32	$	32	$	—	$	—
Time deposits(1)	136		136		—		—
Other securities(2)	46		—		44		2
Total assets	$	214	$	168	$	44	$	2

	March 31, 2023
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	75	$	75	$	—	$	—
Time deposits(1)	37		37		—		—
Other securities(2)	48		—		46		2
Total assets	$	160	$	112	$	46	$	2
Liabilities:
Contingent consideration(3)	$	2	$	—	$	—	$	2
Total liabilities	$	2	$	—	$	—	$	2

(1) Cost basis approximated fair value due to the short period of time to maturity.

(2) Other securities include available-for-sale equity security investments with Level 2 inputs that have a cost basis of $51 million and $52 million as of September 30, 2023 and March 31, 2023, respectively. For the periods presented, gains and losses are insignificant and are included in other income, net in the Company’s statements of operations.

(3) During the first six months of fiscal 2024, the Company completed the payment for its contingent consideration obligation.

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Derivative Instruments (Tables)

6 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Not Designated For Hedge Accounting

The following table presents the foreign currency (gain) loss to Other income, net:

	For the Three Months Ended				For the Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Foreign currency remeasurement (1)	$	25	$	40	$	21	$	76
Undesignated foreign currency forward contracts (2)	(26)		(41)		(30)		(79)
Total - Foreign currency gain	$	(1)	$	(1)	$	(9)	$	(3)

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.

(2) Movements from hedges used to manage the Company’s foreign currency remeasurement exposure, and the associated costs of the hedging program.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present the fair values of derivative instruments included in the balance sheets:

		As of
(in millions)	Balance Sheet Line Item	September 30, 2023		March 31, 2023
Derivatives designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	9	$	6
	Accrued expenses and other current liabilities	$	6	$	13
Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	35	$	15
	Accrued expenses and other current liabilities	$	13	$	16

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Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Amortizable Intangible Assets

Intangible assets consisted of the following:

	As of September 30, 2023						As of March 31, 2023
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	3,993	$	3,205	$	788	$	4,009	$	3,290	$	719
Customer related intangible assets	3,887		2,409		1,478		3,927		2,260		1,667
Other intangible assets	307		137		170		303		120		183
Total intangible assets	$	8,187	$	5,751	$	2,436	$	8,239	$	5,670	$	2,569

Schedule of Components of Amortization Expense

The components of amortization expense were as follows:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Intangible asset amortization	$	195	$	198	$	378	$	397
Transition and transformation contract cost amortization(1)	54		53		102		105
Total amortization expense	$	249	$	251	$	480	$	502

(1)Transaction and transformation contract costs are included within other assets on the balance sheets.

Estimated Future Amortization of Intangible Assets

Estimated future amortization related to intangible assets as of September 30, 2023 is as follows:

Fiscal Year	(in millions)
Remainder of 2024	$	402
2025	656
2026	588
2027	406
2028	170
Thereafter	214
Total	$	2,436

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Goodwill (Tables)

6 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in the Carrying Amount of Goodwill by Segment

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of September 30, 2023.

(in millions)	GBS		GIS		Total
Balance as of March 31, 2023, net	$	539	$	—	$	539
Foreign currency translation	(9)		—		(9)
Balance as of September 30, 2023, net	$	530	$	—	$	530
Goodwill, gross	5,020		5,066		10,086
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of September 30, 2023, net	$	530	$	—	$	530

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Debt (Tables)

6 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt

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

(in millions)	Interest Rates	Fiscal Year Maturities	9/30/2023(1)		3/31/2023(1)
Short-term debt and current maturities of long-term debt
Commercial paper(2)	4.08% - 4.33%	2024	$	348	$	109
Current maturities of long-term debt	Various	2024 - 2025	128		176
Current maturities of finance lease liabilities	0.00% - 14.59%	2024 - 2025	196		215
Short-term debt and current maturities of long-term debt			$	672	$	500
Long-term debt, net of current maturities
€650 million Senior notes	1.75%	2026	687		704
$700 million Senior notes	1.80%	2027	696		696
€750 million Senior notes	0.45%	2028	790		810
$650 million Senior notes	2.375%	2029	646		645
€600 million Senior notes	0.95%	2032	630		646
Finance lease liabilities	0.00% - 14.59%	2024 - 2029	455		502
Borrowings for assets acquired under long-term financing	0.00% - 9.78%	2024 - 2029	209		285
Other borrowings	Various	2024	2		3
Long-term debt			4,115		4,291
Less: current maturities			324		391
Long-term debt, net of current maturities			$	3,791	$	3,900

(1)The carrying amounts of the senior notes as of September 30, 2023 and March 31, 2023, include the remaining principal outstanding of $3,468 million and $3,523 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $19 million and $22 million, respectively.

(2)At DXC’s option, DXC can borrow up to a maximum of €1 billion or its equivalent in £ and $.

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Revenue (Tables)

6 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Summary of Revenue Disaggregated by Geography

The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
United States	$	1,002	$	1,093	$	2,004	$	2,224
United Kingdom	460		452		925		925
Other Europe	1,051		1,064		2,115		2,202
Australia	330		371		672		762
Other International	593		586		1,166		1,160
Total Revenues	$	3,436	$	3,566	$	6,882	$	7,273

Summary of Contract Assets and Liabilities

The following table provides information about the balances of the Company’s trade receivables and contract assets and contract liabilities:

	As of
(in millions)	September 30, 2023		March 31, 2023
Trade receivables, net	$	2,081	$	2,269
Contract assets	$	377	$	366
Contract liabilities	$	1,578	$	1,842

Change in contract liabilities were as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Balance, beginning of period	$	1,842	$	1,915
Deferred revenue	873		1,075
Recognition of deferred revenue	(1,085)		(1,145)
Currency translation adjustment	(23)		(168)
Other	(29)		(21)
Balance, end of period	$	1,578	$	1,656

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Restructuring Costs (Tables)

6 Months Ended

Sep. 30, 2023

Restructuring Costs [Abstract]

Schedule of Restructuring Expense

The composition of restructuring liabilities by financial statement line item is as follows:

	As of
(in millions)	September 30, 2023		March 31, 2023
Accrued expenses and other current liabilities	$	60	$	105
Other long-term liabilities	15		22
Total	$	75	$	127

Schedule of Restructuring Liability

Restructuring Liability Reconciliations by Plan

	Restructuring Liability as of March 31, 2023		Costs Expensed, Net of Reversals		Costs Not Affecting Restructuring Liability(1)		Cash Paid		Other(2)		Restructuring Liability as of September 30, 2023
Fiscal 2024 Plan
Workforce Reductions	$	—	$	—	$	—	$	—	$	—	$	—
Facilities Costs	—		34		(27)		(1)		—		6
	—		34		(27)		(1)		—		6
Fiscal 2023 Plan
Workforce Reductions	$	79	$	2	$	—	$	(43)	$	—	$	38
Facilities Costs	1		14		(4)		(11)		1		1
	80		16		(4)		(54)		1		39
Other Prior Year and Acquired Plans
Workforce Reductions	$	45	$	(1)	$	—	$	(14)	$	(1)	$	29
Facilities Costs	2		6		(1)		(6)		—		1
	47		5		(1)		(20)		(1)		30
Total	$	127	$	55	$	(32)	$	(75)	$	—	$	75

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.

(2) Foreign currency translation adjustments.

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Pension and Other Benefit Plans (Tables)

6 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plans Disclosures

The components of net periodic pension income were:

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Service cost	$	15	$	18	$	30	$	37
Interest cost	77		63		156		130
Expected return on assets	(112)		(122)		(226)		(254)
Amortization of prior service costs	(1)		(2)		(3)		(4)
Recognition of actuarial loss	—		1		—		1
Net periodic pension income	$	(21)	$	(42)	$	(43)	$	(90)

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Stockholders' Equity (Tables)

6 Months Ended

Sep. 30, 2023

Equity [Abstract]

Class of Treasury Stock

The details of shares repurchased during the six months ended September 30, 2023 and September 30, 2022 are shown below:

	Fiscal 2024					Fiscal 2023
Fiscal Period	Number of Shares Repurchased	Average Price Per Share		Amount (in millions)		Number of Shares Repurchased	Average Price Per Share		Amount (in millions)
1st Quarter	10,975,643	$	25.53	$	280	8,850,912	$	30.09	$	266
2nd Quarter	9,958,585	$	21.50	214		—	$	—	—
Total	20,934,228	$	23.61	$	494	8,850,912	$	30.09	$	266

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table shows the changes in accumulated other comprehensive loss, net of taxes:

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2023	$	(985)	$	(7)	$	218	$	(774)
Other comprehensive income before reclassifications	(5)		5		—		—
Amounts reclassified from accumulated other comprehensive loss	—		2		(2)		—
Balance at September 30, 2023	$	(990)	$	—	$	216	$	(774)

(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2022	$	(651)	$	10	$	256	$	(385)
Other comprehensive loss before reclassifications	(337)		11		—		(326)
Amounts reclassified from accumulated other comprehensive loss	—		(9)		(4)		(13)
Balance at September 30, 2022	$	(988)	$	12	$	252	$	(724)

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Stock Incentive Plans (Tables)

6 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Disclosure of Share Based Compensation Arrangements by Share Based Payment Award

	Employee Equity Plan			Director Equity Plan
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of March 31, 2023	7,449,379	$	37.11	147,487	$	35.80
Granted	5,105,366	$	25.16	124,000	$	19.35
Settled	(3,918,850)	$	23.48	(69,189)	$	31.68
Canceled/Forfeited	(718,992)	$	43.13	—	$	—
Outstanding as of September 30, 2023	7,916,903	$	35.29	202,298	$	27.13

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total share-based compensation cost	$	24	$	27	$	47	$	55
Related income tax benefit	$	4	$	3	$	7	$	6

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Cash Flows (Tables)

6 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Cash Payments for Interest on Indebtedness and for Taxes

Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

	Six Months Ended
(in millions)	September 30, 2023		September 30, 2022
Cash paid for:
Interest	$	135	$	74
Taxes on income, net of refunds (1)	$	235	$	230
Non-cash activities:
Operating:
ROU assets obtained in exchange for lease, net (2)	$	95	$	117
Assets acquired under long-term financing	$	4	$	37
Investing:
Capital expenditures in accounts payable and accrued expenses	$	96	$	—
Capital expenditures through finance lease obligations	$	41	$	44
Assets acquired under long-term financing	$	27	$	6
Financing:
Shares repurchased but not settled in cash (3)	$	9	$	—

(1) Income tax refunds were $18 million and $30 million for the six months ended September 30, 2023 and September 30, 2022, respectively.

(2) Net of $557 million and $521 million in lease modifications and terminations during the first six months of fiscal 2024 and 2023, respectively.

(3) On August 16, 2022, the U.S. government enacted the IRA into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.

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Segment Information (Tables)

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Operating Results by Reportable Segment

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Three Months Ended September 30, 2023
Revenues	$	1,709	$	1,727	$	3,436	$	—	$	3,436
Segment profit	$	213	$	101	$	314	$	(63)	$	251
Depreciation and amortization(1)	$	49	$	197	$	246	$	26	$	272
Three Months Ended September 30, 2022
Revenues	$	1,713	$	1,853	$	3,566	$	—	$	3,566
Segment profit	$	218	$	114	$	332	$	(63)	$	269
Depreciation and amortization(1)	$	40	$	216	$	256	$	23	$	279

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Six Months Ended September 30, 2023
Revenues	$	3,412	$	3,470	$	6,882	$	—	$	6,882
Segment profit	$	405	$	192	$	597	$	(122)	$	475
Depreciation and amortization(1)	$	94	$	381	$	475	$	52	$	527
Six Months Ended September 30, 2022
Revenues	$	3,471	$	3,802	$	7,273	$	—	$	7,273
Segment profit	$	428	$	241	$	669	$	(141)	$	528
Depreciation and amortization(1)	$	81	$	434	$	515	$	49	$	564

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $89 million and $101 million for the three months ended September 30, 2023 and 2022, respectively, and $178 million and $205 million for the six months ended September 30, 2023 and 2022, respectively.

Reconciliation of Consolidated Operating Income to Income Before Taxes

	Three Months Ended				Six Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Profit
Total profit for reportable segments	$	314	$	332	$	597	$	669
All other loss	(63)		(63)		(122)		(141)
Subtotal	$	251	$	269	$	475	$	528
Interest income	53		28		102		48
Interest expense	(78)		(44)		(144)		(81)
Restructuring costs	(35)		(53)		(55)		(86)
Transaction, separation and integration-related costs	(3)		(4)		(4)		(6)
Amortization of acquired intangible assets	(89)		(101)		(178)		(205)
Merger related indemnification	(2)		—		(13)		(10)
SEC Matter	—		(8)		—		(8)
Gains (losses) on dispositions	33		(32)		28		(3)
Impairment losses	(2)		—		(5)		—
Pension and OPEB actuarial and settlement losses	—		(1)		—		(1)
Income before income taxes	$	128	$	54	$	206	$	176

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Commitments and Contingencies (Tables)

6 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Long-term Purchase Agreements

Minimum purchase commitments as of September 30, 2023 were as follows:

Fiscal year	Minimum Purchase Commitment
(in millions)
Remainder of 2024	$	349
2025	616
2026	536
2027	119
2028	75
Thereafter	23
Total	$	1,718

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Divestitures - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale	$ (2)	$ (32)	$ (7)	$ (3)
Series of Insignificant Disposal Groups | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale			$ (7)	$ (3)

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Earnings per Share - Schedule of Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to DXC common stockholders:	$ 99	$ 27	$ 135	$ 129
Common share information:
Weighted average common shares outstanding for basic EPS (in shares)	201,720	229,960	205,900	231,210
Dilutive effect of stock options and equity awards (in shares)	1,340	3,210	3,000	3,720
Weighted average common shares outstanding for diluted EPS (in shares)	203,060	233,170	208,900	234,930
Earnings per share:
Basic (in dollars per share)	$ 0.49	$ 0.12	$ 0.66	$ 0.56
Diluted (in dollars per share)	$ 0.49	$ 0.12	$ 0.65	$ 0.55

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Earnings per Share - Schedule of Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted EPS (in shares)	960,455	475,559	924,990	478,128
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted EPS (in shares)	1,556,542	2,724,766	1,480,781	2,065,992
Performance Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted EPS (in shares)	1,700,588	1,079,287	35,604	721,803

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Receivables - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 47	$ 55	$ 55
Provisions for losses on accounts receivable	2	$ 0	(1)
Other adjustments to allowance and write-offs	7		(7)
Ending balance	$ 56		$ 47

XML

Receivables - Narrative (Details) - Purchasers	6 Months Ended
	Sep. 30, 2023 USD ($)
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Receivables facility, amount	$ 400,000,000
Availability under receivable facility	384,000,000
Drawn amount	378,000,000
Receivables facility asset	6,000,000
Gain (loss) on sale of receivables	$ 0

XML

Leases - Narrative (Details)	6 Months Ended
	Sep. 30, 2023
Lessee, Lease, Description [Line Items]
Extension term	10 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Termination term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years
Termination term	3 years

XML

Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating lease expense
Operating lease cost	$ 91	$ 108	$ 181	$ 214
Short-term lease cost	9	11	16	19
Variable lease cost	16	17	31	39
Sublease income	(6)	(6)	(10)	(10)
Total operating costs	110	130	218	262
Finance lease expense
Amortization of right-of-use assets	37	55	79	116
Interest on lease liabilities	3	4	7	9
Total finance lease expense	$ 40	$ 59	$ 86	$ 125

XML

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating Leases, Supplemental Cash Flow Information [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$ 181	$ 214
ROU assets obtained in exchange for lease, net	95	117
Change in lease classification from operating to finance lease	557	521
Finance Leases, Supplemental Cash Flow Information [Abstract]
Interest paid for finance lease liabilities – Operating cash flows	7	9
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	124	168
Total cash paid in the measurement of finance lease obligations	131	177
Capital expenditures through finance lease obligations	$ 41	$ 44

XML

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Operating Lease, Supplemental Balance Sheet Information [Abstract]
Operating right-of-use assets, net	$ 809	$ 909
Current operating lease liabilities	295	317
Non-current operating lease liabilities	571	648
Total operating lease liabilities	$ 866	$ 965
Weighted-average operating lease term	4 years	3 years 10 months 24 days
Weighted-average operating lease discount rate	4.40%	3.90%
Finance Lease, Supplemental Balance Sheet Information [Abstract]
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net of accumulated depreciation of $3,874 and $4,111	Property and equipment, net of accumulated depreciation of $3,874 and $4,111
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Short-term debt and current maturities of long-term debt	Short-term debt and current maturities of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt, excluding finance lease liabilities	Long-term debt, excluding finance lease liabilities
ROU finance lease assets	$ 327	$ 424
Finance lease, liability, current	196	215
Finance lease, liability, noncurrent	259	287
Total finance lease liabilities	$ 455	$ 502
Weighted-average finance lease term	2 years 10 months 24 days	2 years 10 months 24 days
Weighted-average finance lease discount rate	3.80%	3.40%

XML

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Operating Leases
Remainder of 2024	$ 169
2025	285
2026	196
2027	112
2028	89
Thereafter	103
Operating lease payments	954
Less: imputed interest	(88)
Total operating lease liabilities	866	$ 965
Finance Leases
Remainder of 2024	108
2025	173
2026	110
2027	64
2028	21
Thereafter	4
Finance lease payments	480
Less: imputed interest	(25)
Total finance lease liabilities	$ 455	$ 502

XML

Fair Value - Fair Value Measurements on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
ASSETS
Other securities	$ 46	$ 48
Total assets	214	160
Liabilities:
Contingent consideration		2
Total liabilities		2
Level 1
ASSETS
Other securities	0	0
Total assets	168	112
Liabilities:
Contingent consideration		0
Total liabilities		0
Level 2
ASSETS
Other securities	44	46
Total assets	44	46
Liabilities:
Contingent consideration		0
Total liabilities		0
Cost basis	51	52
Level 3
ASSETS
Other securities	2	2
Total assets	2	2
Liabilities:
Contingent consideration		2
Total liabilities		2
Money market funds and money market deposit accounts
ASSETS
Cash and cash equivalents	32	75
Money market funds and money market deposit accounts | Level 1
ASSETS
Cash and cash equivalents	32	75
Money market funds and money market deposit accounts | Level 2
ASSETS
Cash and cash equivalents	0	0
Money market funds and money market deposit accounts | Level 3
ASSETS
Cash and cash equivalents	0	0
Time deposits
ASSETS
Cash and cash equivalents	136	37
Time deposits | Level 1
ASSETS
Cash and cash equivalents	136	37
Time deposits | Level 2
ASSETS
Cash and cash equivalents	0	0
Time deposits | Level 3
ASSETS
Cash and cash equivalents	$ 0	$ 0

XML

Derivative Instruments - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) counterparty	Mar. 31, 2023 USD ($)
Derivative [Line Items]
Foreign currency cash flow hedge gain to be reclassified during next 12 months	$ 1	$ 1
Number of counterparties with concentration of credit risk | counterparty		6
Maximum exposure to loss		$ 21
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Forward Contracts
Derivative [Line Items]
Notational amount of derivative	889	889	$ 842
Designated as Hedging Instrument | Net Investment Hedging | Foreign Currency Denominated Debt
Derivative [Line Items]
Notational amount of derivative	265	265	272
Pretax gain (loss) on derivatives designated for hedge accounting included other comprehensive income	8	7
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts
Derivative [Line Items]
Notational amount of derivative	$ 2,400	$ 2,400	$ 2,500

XML

Derivative Instruments - Non Designated Hedges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency remeasurement	$ 25	$ 40	$ 21	$ 76
Undesignated foreign currency forward contracts	(26)	(41)	(30)	(79)
Total - Foreign currency gain	$ (1)	$ (1)	$ (9)	$ (3)

XML

Derivative Instruments - Fair Value (Details) - Foreign currency forward contracts - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Designated as Hedging Instrument | Fair Value Hedging | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 9	$ 6
Designated as Hedging Instrument | Fair Value Hedging | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	6	13
Not Designated as Hedging Instrument | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	35	15
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 13	$ 16

XML

Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 8,187	$ 8,239
Accumulated Amortization	5,751	5,670
Net Carrying Value	2,436	2,569
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	3,993	4,009
Accumulated Amortization	3,205	3,290
Net Carrying Value	788	719
Customer related intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	3,887	3,927
Accumulated Amortization	2,409	2,260
Net Carrying Value	1,478	1,667
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	307	303
Accumulated Amortization	137	120
Net Carrying Value	$ 170	$ 183

XML

Intangible Assets - Components of Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 249	$ 251	$ 480	$ 502
Intangible asset amortization
Finite-Lived Intangible Assets [Line Items]
Amortization expense	195	198	378	397
Transition and transformation contract cost amortization
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 54	$ 53	$ 102	$ 105

XML

Intangible Assets - Estimated Future Amortization (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 402
2025	656
2026	588
2027	406
2028	170
Thereafter	214
Net Carrying Value	$ 2,436	$ 2,569

XML

Goodwill - Schedule of Goodwill (Details) $ in Millions	6 Months Ended
	Sep. 30, 2023 USD ($)
Changes in the carrying amount of goodwill by segment [Roll Forward]
Goodwill, beginning balance	$ 539
Foreign currency translation	(9)
Goodwill, gross	10,086
Accumulated impairment losses	(9,556)
Goodwill, ending balance	530
GBS
Changes in the carrying amount of goodwill by segment [Roll Forward]
Goodwill, beginning balance	539
Foreign currency translation	(9)
Goodwill, gross	5,020
Accumulated impairment losses	(4,490)
Goodwill, ending balance	530
GIS
Changes in the carrying amount of goodwill by segment [Roll Forward]
Goodwill, beginning balance	0
Foreign currency translation	0
Goodwill, gross	5,066
Accumulated impairment losses	(5,066)
Goodwill, ending balance	$ 0

XML

Debt - Schedule of Debt (Details) $ in Millions	Sep. 30, 2023 USD ($)	Sep. 30, 2023 EUR (€)	Mar. 31, 2023 USD ($)
Short-term debt and current maturities of long-term debt
Commercial paper	$ 348		$ 109
Current maturities of long-term debt	128		176
Current maturities of finance lease liabilities	196		215
Short-term debt and current maturities of long-term debt	672		500
Long-term debt, net of current maturities
Finance lease liabilities	455		502
Long-term debt	4,115		4,291
Less: current maturities	324		391
Long-term debt, net of current maturities	$ 3,791		3,900
Minimum
Debt Information [Abstract]
Effective interest rate	0.00%	0.00%
Maximum
Debt Information [Abstract]
Effective interest rate	14.59%	14.59%
Senior notes
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 3,468		3,523
Unamortized debt (discount) premiums and deferred debt issuance costs	$ (19)		(22)
Senior notes | Senior Notes Due 2026
Debt Information [Abstract]
Face amount | €		€ 650,000,000
Effective interest rate	1.75%	1.75%
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 687		704
Senior notes | Senior Notes Due 2027
Debt Information [Abstract]
Face amount	$ 700
Effective interest rate	1.80%	1.80%
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 696		696
Senior notes | Senior Notes Due 2028
Debt Information [Abstract]
Face amount | €		€ 750,000,000
Effective interest rate	0.45%	0.45%
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 790		810
Senior notes | Senior Notes Due 2029
Debt Information [Abstract]
Face amount	$ 650
Effective interest rate	2.375%	2.375%
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 646		645
Senior notes | Senior Notes Due 2032
Debt Information [Abstract]
Face amount | €		€ 600,000,000
Effective interest rate	0.95%	0.95%
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 630		646
Borrowings for assets acquired under long-term financing
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 209		285
Borrowings for assets acquired under long-term financing | Minimum
Debt Information [Abstract]
Effective interest rate	0.00%	0.00%
Borrowings for assets acquired under long-term financing | Maximum
Debt Information [Abstract]
Effective interest rate	9.78%	9.78%
Other borrowings
Long-term debt, net of current maturities
Long-term debt, net of current maturities	$ 2		$ 3
Commercial paper
Long-term debt, net of current maturities
Amount of multi-year committed revolving credit facility | €		€ 1,000,000,000
Commercial paper | Minimum
Debt Information [Abstract]
Weighted average interest rate	4.08%	4.08%
Commercial paper | Maximum
Debt Information [Abstract]
Weighted average interest rate	4.33%	4.33%
Current maturities of finance lease liabilities | Minimum
Debt Information [Abstract]
Effective interest rate	0.00%	0.00%
Current maturities of finance lease liabilities | Maximum
Debt Information [Abstract]
Effective interest rate	14.59%	14.59%

XML

Debt - Narrative (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Long-term debt, excluding finance lease liabilities	$ 3,791,000,000	$ 3,900,000,000
Fair value
Debt Instrument [Line Items]
Long-term debt, excluding finance lease liabilities	3,100,000,000	3,300,000,000
Carrying value
Debt Instrument [Line Items]
Long-term debt, excluding finance lease liabilities	$ 3,700,000,000	$ 3,800,000,000
USD term loan | USD Term Loan
Debt Instrument [Line Items]
Face amount			$ 500,000,000

XML

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 3,436	$ 3,566	$ 6,882	$ 7,273
United States
Disaggregation of Revenue [Line Items]
Revenues	1,002	1,093	2,004	2,224
United Kingdom
Disaggregation of Revenue [Line Items]
Revenues	460	452	925	925
Other Europe
Disaggregation of Revenue [Line Items]
Revenues	1,051	1,064	2,115	2,202
Australia
Disaggregation of Revenue [Line Items]
Revenues	330	371	672	762
Other International
Disaggregation of Revenue [Line Items]
Revenues	$ 593	$ 586	$ 1,166	$ 1,160

XML

Revenue - Narrative (Details) $ in Billions	Sep. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 18.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation percentage	24.00%
Remaining performance obligation period	6 months

XML

Revenue - Contract Balances (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Trade receivables, net	$ 2,081	$ 2,269
Contract assets	377	366
Contract liabilities	$ 1,578	$ 1,842	$ 1,656	$ 1,915

XML

Revenue - Change in Contract Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Change In Contract With Customer, Liability [Roll Forward]
Balance, beginning of period	$ 1,842	$ 1,915
Deferred revenue	873	1,075
Recognition of deferred revenue	(1,085)	(1,145)
Currency translation adjustment	(23)	(168)
Other	(29)	(21)
Balance, end of period	$ 1,578	$ 1,656

XML

Restructuring Costs - Composition of Restructuring Liability (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Restructuring Costs [Abstract]
Accrued expenses and other current liabilities	$ 60	$ 105
Other long-term liabilities	15	22
Total	$ 75	$ 127

XML

Restructuring Costs - Restructuring Liability (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			$ 127
Costs Expensed, Net of Reversals	$ 35	$ 53	55	$ 86
Costs Not Affecting Restructuring Liability			(32)
Cash Paid			(75)
Other			0
Restructuring Liability, ending balance	75		75
Fiscal 2024 Plan
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			0
Costs Expensed, Net of Reversals			34
Costs Not Affecting Restructuring Liability			(27)
Cash Paid			(1)
Other			0
Restructuring Liability, ending balance	6		6
Fiscal 2024 Plan | Workforce Reductions
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			0
Costs Expensed, Net of Reversals			0
Costs Not Affecting Restructuring Liability			0
Cash Paid			0
Other			0
Restructuring Liability, ending balance	0		0
Fiscal 2024 Plan | Facilities Costs
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			0
Costs Expensed, Net of Reversals			34
Costs Not Affecting Restructuring Liability			(27)
Cash Paid			(1)
Other			0
Restructuring Liability, ending balance	6		6
Fiscal 2023 Plan
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			80
Costs Expensed, Net of Reversals			16
Costs Not Affecting Restructuring Liability			(4)
Cash Paid			(54)
Other			1
Restructuring Liability, ending balance	39		39
Fiscal 2023 Plan | Workforce Reductions
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			79
Costs Expensed, Net of Reversals			2
Costs Not Affecting Restructuring Liability			0
Cash Paid			(43)
Other			0
Restructuring Liability, ending balance	38		38
Fiscal 2023 Plan | Facilities Costs
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			1
Costs Expensed, Net of Reversals			14
Costs Not Affecting Restructuring Liability			(4)
Cash Paid			(11)
Other			1
Restructuring Liability, ending balance	1		1
Other Prior Year and Acquired Plans
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			47
Costs Expensed, Net of Reversals			5
Costs Not Affecting Restructuring Liability			(1)
Cash Paid			(20)
Other			(1)
Restructuring Liability, ending balance	30		30
Other Prior Year and Acquired Plans | Workforce Reductions
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			45
Costs Expensed, Net of Reversals			(1)
Costs Not Affecting Restructuring Liability			0
Cash Paid			(14)
Other			(1)
Restructuring Liability, ending balance	29		29
Other Prior Year and Acquired Plans | Facilities Costs
Restructuring Reserve [Roll Forward]
Restructuring Liability, beginning balance			2
Costs Expensed, Net of Reversals			6
Costs Not Affecting Restructuring Liability			(1)
Cash Paid			(6)
Other			0
Restructuring Liability, ending balance	$ 1		$ 1

XML

Restructuring Costs - Narrative (Details) $ in Millions	6 Months Ended
	Sep. 30, 2023 USD ($)
Fiscal 2024 Plan
Restructuring Cost and Reserve [Line Items]
Amortization of right-of-use assets and interest expense for leases vacated	$ 14

XML

Pension and Other Benefit Plans - Pension Plan, Net Periodic Costs and Other Changes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Retirement Benefits [Abstract]
Service cost	$ 15	$ 18	$ 30	$ 37
Interest cost	77	63	156	130
Expected return on assets	(112)	(122)	(226)	(254)
Amortization of prior service costs	(1)	(2)	(3)	(4)
Recognition of actuarial loss	0	1	0	1
Net periodic pension income	$ (21)	$ (42)	$ (43)	$ (90)

XML

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2019	Apr. 01, 2017
Income Tax Contingency [Line Items]
Effective income tax rate	22.70%	48.10%	31.60%	25.60%
Foreign earnings not indefinitely reinvested	$ 471		$ 471
Potential federal and state cost from tax examinations			491
Liability for uncertain tax positions increase	2
Reasonably possible reduction in liability for uncertain tax positions	14		14
HPES
Income Tax Contingency [Line Items]
Tax indemnification receivable, uncertain tax positions						$ 16
Tax indemnification receivable, tax indemnification payable						52
Tax indemnification payable						$ 91
Perspecta
Income Tax Contingency [Line Items]
Tax indemnification payable					$ 6
Tax indemnification receivable					$ 17
India
Income Tax Contingency [Line Items]
Cumulative undistributed earnings of foreign subsidiaries	$ 200		$ 200

XML

Stockholders' Equity - Capital Stock and Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity [Abstract]
Number of shares repurchased (in shares)	9,958,585	10,975,643	0	8,850,912	20,934,228	8,850,912
Average price per share (in dollars per share)	$ 21.50	$ 25.53	$ 0	$ 30.09	$ 23.61	$ 30.09
Amount	$ 214	$ 280	$ 0	$ 266	$ 494	$ 266

XML

Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	$ 3,820	$ 5,375
Other comprehensive income (loss) before reclassifications	0	(326)
Amounts reclassified from accumulated other comprehensive loss	0	(13)
Ending balance	3,467	4,936
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(985)	(651)
Other comprehensive income (loss) before reclassifications	(5)	(337)
Amounts reclassified from accumulated other comprehensive loss	0	0
Ending balance	(990)	(988)
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(7)	10
Other comprehensive income (loss) before reclassifications	5	11
Amounts reclassified from accumulated other comprehensive loss	2	(9)
Ending balance	0	12
Pension and Other Post-retirement Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	218	256
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive loss	(2)	(4)
Ending balance	216	252
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(774)	(385)
Ending balance	$ (774)	$ (724)

XML

Stock Incentive Plans - Narrative (Details)	6 Months Ended
	Sep. 30, 2023 shares
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares to be received (in shares)	1
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

XML

Stock Incentive Plans - Schedule of RSUs (Details) - Restricted Stock Units	6 Months Ended
	Sep. 30, 2023 $ / shares shares
Employee Equity Plan
Number of Shares
Equity instruments other than options nonvested - beginning balance (in shares) | shares	7,449,379
Equity instruments other than options nonvested - granted (in shares) | shares	5,105,366
Equity instruments other than options nonvested - settled (in shares) | shares	(3,918,850)
Equity instruments other than options nonvested - canceled/forfeited (in shares) | shares	(718,992)
Equity instruments other than options nonvested - ending balance (in shares) | shares	7,916,903
Weighted Average Grant Date Fair Value
Weighted average fair value other than options - beginning balance (in dollars per share) | $ / shares	$ 37.11
Weighted average fair value other than options - granted (in dollars per share) | $ / shares	25.16
Weighted average fair value other than options - settled (in dollars per share) | $ / shares	23.48
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | $ / shares	43.13
Weighted average fair value other than options - ending balance (in dollars per share) | $ / shares	$ 35.29
Director Equity Plan
Number of Shares
Equity instruments other than options nonvested - beginning balance (in shares) | shares	147,487
Equity instruments other than options nonvested - granted (in shares) | shares	124,000
Equity instruments other than options nonvested - settled (in shares) | shares	(69,189)
Equity instruments other than options nonvested - canceled/forfeited (in shares) | shares	0
Equity instruments other than options nonvested - ending balance (in shares) | shares	202,298
Weighted Average Grant Date Fair Value
Weighted average fair value other than options - beginning balance (in dollars per share) | $ / shares	$ 35.80
Weighted average fair value other than options - granted (in dollars per share) | $ / shares	19.35
Weighted average fair value other than options - settled (in dollars per share) | $ / shares	31.68
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | $ / shares	0
Weighted average fair value other than options - ending balance (in dollars per share) | $ / shares	$ 27.13

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Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Total share-based compensation cost	$ 24	$ 27	$ 47	$ 55
Related income tax benefit	$ 4	$ 3	$ 7	$ 6

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Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash paid for:
Interest	$ 135	$ 74
Taxes on income, net of refunds	235	230
Operating:
ROU assets obtained in exchange for lease, net	95	117
Assets acquired under long-term financing	4	37
Investing:
Capital expenditures in accounts payable and accrued expenses	96	0
Capital expenditures through finance lease obligations	41	44
Assets acquired under long-term financing	27	6
Financing:
Shares repurchased but not settled in cash	9	0
Income tax refunds	18	30
Change in lease classification from operating to finance lease	$ 557	$ 521

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Revenues	$ 3,436	$ 3,566	$ 6,882	$ 7,273
Segment profit	251	269	475	528
Depreciation and amortization	272	279	527	564
Amortization of acquired intangible assets	89	101	178	205
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract]
Subtotal	251	269	475	528
Interest income	53	28	102	48
Interest expense	(78)	(44)	(144)	(81)
Restructuring costs	(35)	(53)	(55)	(86)
Transaction, separation and integration-related costs	(3)	(4)	(4)	(6)
Amortization of acquired intangible assets	(89)	(101)	(178)	(205)
Merger related indemnification	(2)	0	(13)	(10)
SEC Matter	0	(8)	0	(8)
Gains (losses) on dispositions	33	(32)	28	(3)
Impairment losses	(2)	0	(5)	0
Pension and OPEB actuarial and settlement losses	0	(1)	0	(1)
Income before income taxes	128	54	206	176
Operating segments
Segment Reporting Information [Line Items]
Revenues	3,436	3,566	6,882	7,273
Segment profit	314	332	597	669
Depreciation and amortization	246	256	475	515
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract]
Subtotal	314	332	597	669
All Other
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Segment profit	(63)	(63)	(122)	(141)
Depreciation and amortization	26	23	52	49
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract]
Subtotal	(63)	(63)	(122)	(141)
GBS | Operating segments
Segment Reporting Information [Line Items]
Revenues	1,709	1,713	3,412	3,471
Segment profit	213	218	405	428
Depreciation and amortization	49	40	94	81
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract]
Subtotal	213	218	405	428
GIS | Operating segments
Segment Reporting Information [Line Items]
Revenues	1,727	1,853	3,470	3,802
Segment profit	101	114	192	241
Depreciation and amortization	197	216	381	434
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract]
Subtotal	$ 101	$ 114	$ 192	$ 241

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Commitments and Contingencies - Minimum Purchase Commitments (Details) $ in Millions	Sep. 30, 2023 USD ($)
Minimum purchase commitments [Abstract]
Remainder of 2024	$ 349
2025	616
2026	536
2027	119
2028	75
Thereafter	23
Total	$ 1,718