QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices and zip code) | ||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||
x | Accelerated Filer | o | ||||||||||||||||||||||||
Non-accelerated Filer | o | Smaller reporting company | ||||||||||||||||||||||||
Emerging growth company |
Item | Page | ||||||||||
1. | |||||||||||
2. | |||||||||||
3. | |||||||||||
4. | |||||||||||
1. | |||||||||||
1A. | |||||||||||
2. | |||||||||||
3. | |||||||||||
4. | |||||||||||
5. | |||||||||||
6. |
Page | |||||
Three Months Ended | ||||||||||||||
(in millions, except per-share amounts) | June 30, 2024 | June 30, 2023 | ||||||||||||
Revenues | $ | $ | ||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | ||||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Restructuring costs | ||||||||||||||
Interest expense | ||||||||||||||
Interest income | ( | ( | ||||||||||||
Loss on disposition of businesses | ||||||||||||||
Other income, net | ( | ( | ||||||||||||
Total costs and expenses | ||||||||||||||
Income before income taxes | ||||||||||||||
Income tax expense | ||||||||||||||
Net income | ||||||||||||||
Less: net (loss) income attributable to non-controlling interest, net of tax | ( | |||||||||||||
Net income attributable to DXC common stockholders | $ | $ | ||||||||||||
Income per common share: | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||
Other comprehensive income, net of taxes: | ||||||||||||||||||||
Foreign currency translation adjustments, net of tax expense of $ | ||||||||||||||||||||
Cash flow hedges adjustments, net of tax expense of $ | ||||||||||||||||||||
Pension and other post-retirement benefit plans, net of tax: | ||||||||||||||||||||
Amortization of prior service cost, net of tax benefit of $ | ( | ( | ||||||||||||||||||
Pension and other post-retirement benefit plans, net of tax | ( | ( | ||||||||||||||||||
Other comprehensive income, net of taxes | ||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||
Less: comprehensive (loss) income attributable to non-controlling interest | ( | |||||||||||||||||||
Comprehensive income attributable to DXC common stockholders | $ | $ |
As of | ||||||||||||||
(in millions, except per-share and share amounts) | June 30, 2024 | March 31, 2024 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Receivables and contract assets, net of allowance of $ | ||||||||||||||
Prepaid expenses | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Intangible assets, net of accumulated amortization of $ | ||||||||||||||
Operating right-of-use assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Deferred income taxes, net | ||||||||||||||
Property and equipment, net of accumulated depreciation of $ | ||||||||||||||
Other assets | ||||||||||||||
Assets held for sale - non-current | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
LIABILITIES and EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt and current maturities of long-term debt | ||||||||||||||
Accounts payable | ||||||||||||||
Accrued payroll and related costs | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Deferred revenue and advance contract payments | ||||||||||||||
Income taxes payable | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, net of current maturities | ||||||||||||||
Non-current deferred revenue | ||||||||||||||
Non-current operating lease liabilities | ||||||||||||||
Non-current income tax liabilities and deferred tax liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total Liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
DXC stockholders’ equity: | ||||||||||||||
Preferred stock, par value $ | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock, at cost, | ( | ( | ||||||||||||
Total DXC stockholders’ equity | ||||||||||||||
Non-controlling interest in subsidiaries | ||||||||||||||
Total Equity | ||||||||||||||
Total Liabilities and Equity | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Operating right-of-use expense | ||||||||||||||
Share-based compensation | ||||||||||||||
Deferred taxes | ( | ( | ||||||||||||
Gain on dispositions | ( | ( | ||||||||||||
Provision for losses on accounts receivable | ||||||||||||||
Unrealized foreign currency exchange loss | ||||||||||||||
Impairment losses and contract write-offs | ||||||||||||||
Other non-cash charges, net | ( | |||||||||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
Decrease in assets | ||||||||||||||
Decrease in operating lease liability | ( | ( | ||||||||||||
Decrease in other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||
Payments for transition and transformation contract costs | ( | ( | ||||||||||||
Software purchased and developed | ( | ( | ||||||||||||
Business dispositions | ( | |||||||||||||
Proceeds from sale of assets | ||||||||||||||
Proceeds from short-term investing | ( | |||||||||||||
Other investing activities, net | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Borrowings of commercial paper | ||||||||||||||
Repayments of commercial paper | ( | ( | ||||||||||||
Payments on finance leases and borrowings for asset financing | ( | ( | ||||||||||||
Taxes paid related to net share settlements of share-based compensation awards | ( | ( | ||||||||||||
Repurchase of common stock | ( | ( | ||||||||||||
Other financing activities, net | ( | |||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | |||||||||||||
Cash and cash equivalents at beginning of year | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(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, 2024 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||
Net income | ( | |||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||||||
Acquisition of treasury stock | ( | ( | ( | |||||||||||||||||||||||||||||
Stock option exercises and other common stock transactions | — | — | ||||||||||||||||||||||||||||||
Non-controlling interest distributions and other | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
(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, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||||||
Acquisition of treasury stock | ( | ( | ( | |||||||||||||||||||||||||||||
Share repurchase program (2) | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Stock option exercises and other common stock transactions | — | — | ||||||||||||||||||||||||||||||
Non-controlling interest distributions and other | ( | ( | ||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||
Date Issued and ASU | DXC Effective Date | Description | Impact | ||||||||
November 2023 ASU 2023-07, “Improvements to Reportable Segment Disclosures” | Fiscal 2025 | This update requires disclosure of significant segment expenses used by the Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources, disclose the title and position of the CODM and modifies other segment disclosures and the frequency thereof. Early adoption of this update is permitted. | The Company is in the process of assessing the impacts and method of adoption. This ASU will impact the Company’s segment disclosures, but not its consolidated financial statements. | ||||||||
December 2023 ASU 2023-09, “Improvements to Income Tax Disclosures” | Fiscal 2026 | The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Early adoption of this update is permitted. | The Company is in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not its consolidated financial statements. | ||||||||
Three Months Ended | ||||||||||||||
(in millions, except per-share amounts) | June 30, 2024 | June 30, 2023 | ||||||||||||
Net income attributable to DXC common shareholders: | $ | $ | ||||||||||||
Common share information: | ||||||||||||||
Weighted average common shares outstanding for basic EPS | ||||||||||||||
Dilutive effect of stock options and equity awards | ||||||||||||||
Weighted average common shares outstanding for diluted EPS | ||||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ |
Three Months Ended | ||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
Stock Options | ||||||||||||||
Restricted Stock Units | ||||||||||||||
Performance Stock Units | ||||||||||||||
As of | ||||||||||||||
(in millions) | June 30, 2024 | March 31, 2024 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Provisions for losses on accounts receivable | ||||||||||||||
Other adjustments to allowance and write-offs | ( | ( | ||||||||||||
Ending balance | $ | $ |
(in millions) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Short-term lease cost | ||||||||||||||
Variable lease cost | ||||||||||||||
Sublease income | ( | ( | ||||||||||||
Total operating costs | $ | $ | ||||||||||||
(in millions) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows | $ | $ | ||||||||||||
ROU assets obtained in exchange for operating lease liabilities(1) | $ | $ | ||||||||||||
As of | ||||||||||||||||||||
(in millions) | Balance Sheet Line Item | June 30, 2024 | March 31, 2024 | |||||||||||||||||
ROU operating lease assets | Operating right-of-use assets, net | $ | $ | |||||||||||||||||
Operating lease liabilities | Current operating lease liabilities | $ | $ | |||||||||||||||||
Operating lease liabilities | Non-current operating lease liabilities | |||||||||||||||||||
Total operating lease liabilities | $ | $ | ||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
Operating lease payments | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Less: imputed interest | ( | |||||||||||||||||||||||||||||||||||||||||||
Total operating lease liabilities | $ | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
Amortization of right-of-use assets | $ | $ | ||||||||||||
Interest on lease liabilities | ||||||||||||||
Total finance lease cost | $ | $ | ||||||||||||
(in millions) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
Interest paid for finance lease liabilities – Operating cash flows | $ | $ | ||||||||||||
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows | ||||||||||||||
Total cash paid in the measurement of finance lease obligations | $ | $ | ||||||||||||
Capital expenditures through finance lease obligations(1) | $ | $ |
As of | ||||||||||||||||||||
(in millions) | Balance Sheet Line Item | June 30, 2024 | March 31, 2024 | |||||||||||||||||
ROU finance lease assets | $ | $ | ||||||||||||||||||
Finance lease | $ | $ | ||||||||||||||||||
Finance lease | ||||||||||||||||||||
Total finance lease liabilities(1) | $ | $ | ||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
Finance lease payments | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Less: imputed interest | ( | |||||||||||||||||||||||||||||||||||||||||||
Total finance lease liabilities | $ | |||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Foreign currency remeasurement(1) | $ | $ | ( | |||||||||||
Undesignated foreign currency forward contracts(2) | ( | ( | ||||||||||||
Total - Foreign currency loss (gain) | $ | $ | ( |
As of June 30, 2024 | As of March 31, 2024 | |||||||||||||||||||||||||||||||||||||
(in millions) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||||
Software | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Customer related intangible assets | ||||||||||||||||||||||||||||||||||||||
Other intangible assets | ||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Intangible asset amortization | $ | $ | ||||||||||||
Transition and transformation contract cost amortization(1) | ||||||||||||||
Total amortization expense | $ | $ |
Fiscal Year | (in millions) | |||||||
Remainder of 2025 | $ | |||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 | ||||||||
Thereafter | ||||||||
Total | $ |
(in millions) | GBS | GIS | Total | |||||||||||||||||
Balance as of March 31, 2024, net | $ | $ | $ | |||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||
Balance as of June 30, 2024, net | $ | $ | $ | |||||||||||||||||
Goodwill, gross | ||||||||||||||||||||
Accumulated impairment losses | ( | ( | ( | |||||||||||||||||
Balance as of June 30, 2024, net | $ | $ | $ | |||||||||||||||||
(in millions) | Interest Rates | Fiscal Year Maturities | June 30, 2024(1) | March 31, 2024(1) | ||||||||||||||||||||||
Short-term debt and current maturities of long-term debt | ||||||||||||||||||||||||||
Commercial paper(2) | 2025 | $ | $ | |||||||||||||||||||||||
Current maturities of long-term debt | Various | 2025 - 2026 | ||||||||||||||||||||||||
Current maturities of finance lease liabilities | 2025 - 2026 | |||||||||||||||||||||||||
Short-term debt and current maturities of long-term debt | $ | $ | ||||||||||||||||||||||||
Long-term debt, net of current maturities | ||||||||||||||||||||||||||
€ | 2026 | |||||||||||||||||||||||||
$ | 2027 | |||||||||||||||||||||||||
€ | 2028 | |||||||||||||||||||||||||
$ | 2029 | |||||||||||||||||||||||||
€ | 2032 | |||||||||||||||||||||||||
Finance lease liabilities | 2025 - 2030 | |||||||||||||||||||||||||
Borrowings for assets acquired under long-term financing | 2025 - 2029 | |||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Less: current maturities | ||||||||||||||||||||||||||
Long-term debt, net of current maturities | $ | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
United States | $ | $ | ||||||||||||
United Kingdom | ||||||||||||||
Other Europe | ||||||||||||||
Australia | ||||||||||||||
Other International | ||||||||||||||
Total Revenues | $ | $ |
As of | ||||||||||||||||||||
(in millions) | Balance Sheet Line Item | June 30, 2024 | March 31, 2024 | |||||||||||||||||
Trade receivables, net | Receivables and contract assets, net of allowance for doubtful accounts | $ | $ | |||||||||||||||||
Contract assets | Receivables and contract assets, net of allowance for doubtful accounts | $ | $ | |||||||||||||||||
Contract liabilities | Deferred revenue and advance contract payments and Non-current deferred revenue | $ | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Balance, beginning of period | $ | $ | ||||||||||||
Deferred revenue | ||||||||||||||
Recognition of deferred revenue | ( | ( | ||||||||||||
Currency translation adjustment | ( | |||||||||||||
Other | ( | ( | ||||||||||||
Balance, end of period | $ | $ |
As of | ||||||||||||||
(in millions) | June 30, 2024 | March 31, 2024 | ||||||||||||
Accrued expenses and other current liabilities | $ | $ | ||||||||||||
Other long-term liabilities | ||||||||||||||
Total | $ | $ |
Restructuring Liability as of March 31, 2024 | Costs Expensed, Net of Reversals | Costs Not Affecting Restructuring Liability(1) | Cash Paid | Other(2) | Restructuring Liability as of June 30, 2024 | |||||||||||||||||||||||||||||||||
Fiscal 2025 Plan | ||||||||||||||||||||||||||||||||||||||
Workforce Reductions | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Facilities Costs | ( | |||||||||||||||||||||||||||||||||||||
( | ( | |||||||||||||||||||||||||||||||||||||
Fiscal 2024 Plan | ||||||||||||||||||||||||||||||||||||||
Workforce Reductions | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Facilities Costs | ( | |||||||||||||||||||||||||||||||||||||
( | ( | |||||||||||||||||||||||||||||||||||||
Other Prior Year and Acquired Plans | ||||||||||||||||||||||||||||||||||||||
Workforce Reductions | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||
Facilities Costs | ( | ( | ||||||||||||||||||||||||||||||||||||
( | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Service cost | $ | $ | ||||||||||||
Interest cost | ||||||||||||||
Expected return on assets | ( | ( | ||||||||||||
Amortization of prior service credit | ( | ( | ||||||||||||
Net periodic pension income | $ | ( | $ | ( |
Fiscal 2024 | ||||||||||||||||||||
Fiscal Period | Number of Shares Repurchased | Average Price Per Share | Amount (in millions) | |||||||||||||||||
1st Quarter | ||||||||||||||||||||
Open market purchases | $ | $ | ||||||||||||||||||
Total | $ | $ |
(in millions) | Foreign Currency Translation Adjustments | Cash Flow Hedges | Pension and Other Post-retirement Benefit Plans | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income before reclassifications | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | ||||||||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | $ | $ | ( |
(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 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Other comprehensive income before reclassifications | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | ||||||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | $ | ( |
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, 2024 | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Settled | ( | $ | $ | |||||||||||||||||||||||
Canceled/Forfeited | ( | $ | $ | |||||||||||||||||||||||
Outstanding as of June 30, 2024 | $ | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Total share-based compensation cost | $ | $ | ||||||||||||
Related income tax benefit | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Cash paid for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Taxes on income, net of refunds (1) | $ | $ | ||||||||||||
Non-cash activities: | ||||||||||||||
Operating: | ||||||||||||||
ROU assets obtained in exchange for lease, net (2) | $ | $ | ||||||||||||
Prepaid assets acquired under long-term financing | $ | $ | ||||||||||||
Investing: | ||||||||||||||
Capital expenditures in accounts payable and accrued expenses | $ | $ | ||||||||||||
Capital expenditures through finance lease obligations | $ | $ | ||||||||||||
Assets acquired under long-term financing | $ | $ | ||||||||||||
Financing: | ||||||||||||||
Shares repurchased but not settled in cash (3) | $ | $ | ||||||||||||
(in millions) | GBS | GIS | Total Reportable Segments | All Other | Totals | |||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Depreciation and amortization(1) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Depreciation and amortization(1) | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Profit | ||||||||||||||
Total profit for reportable segments | $ | $ | ||||||||||||
All other loss | ( | ( | ||||||||||||
Subtotal | $ | $ | ||||||||||||
Interest income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Restructuring costs | ( | ( | ||||||||||||
Transaction, separation and integration-related costs | ( | ( | ||||||||||||
Amortization of acquired intangible assets | ( | ( | ||||||||||||
Merger related indemnification | ( | |||||||||||||
Loss on disposition of businesses | ( | |||||||||||||
Impairment losses | ( | |||||||||||||
Income before income taxes | $ | $ |
Fiscal year | Minimum Purchase Commitment | |||||||
(in millions) | ||||||||
Remainder of 2025 | $ | |||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 | ||||||||
Thereafter | ||||||||
Total | $ |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | Percentage Change | Constant Currency June 30, 2024(1) | Percentage Change in Constant Currency(1) | |||||||||||||||||||||||||||
Geographic Market | ||||||||||||||||||||||||||||||||
United States | $ | 897 | $ | 1,002 | (10.5) | % | $ | 897 | (10.5) | % | ||||||||||||||||||||||
United Kingdom | 448 | 465 | (3.7) | % | 445 | (4.3) | % | |||||||||||||||||||||||||
Other Europe | 1,030 | 1,064 | (3.2) | % | 1,040 | (2.3) | % | |||||||||||||||||||||||||
Australia | 299 | 342 | (12.6) | % | 302 | (11.7) | % | |||||||||||||||||||||||||
Other International | 562 | 573 | (1.9) | % | 601 | 4.9 | % | |||||||||||||||||||||||||
Total Revenues | $ | 3,236 | $ | 3,446 | (6.1) | % | $ | 3,285 | (4.7) | % | ||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||||||
GBS | $ | 1,673 | $ | 1,703 | (1.8) | % | $ | 1,703 | — | % | ||||||||||||||||||||||
GIS | 1,563 | 1,743 | (10.3) | % | 1,582 | (9.3) | % | |||||||||||||||||||||||||
Total Revenues | $ | 3,236 | $ | 3,446 | (6.1) | % | $ | 3,285 | (4.7) | % |
Dollar Amount | ||||||||||||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | Dollar | Percent | ||||||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 2,526 | $ | 2,719 | $ | (193) | (7.1) | % | ||||||||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 301 | 327 | (26) | (8.0) | % | |||||||||||||||||||||
Depreciation and amortization | 326 | 344 | (18) | (5.2) | % | |||||||||||||||||||||
Restructuring costs | 39 | 20 | 19 | 95.0 | % | |||||||||||||||||||||
Interest expense | 72 | 66 | 6 | 9.1 | % | |||||||||||||||||||||
Interest income | (51) | (49) | (2) | 4.1 | % | |||||||||||||||||||||
Loss on disposition of businesses | — | 5 | (5) | (100.0) | % | |||||||||||||||||||||
Other income, net | (45) | (64) | 19 | (29.7) | % | |||||||||||||||||||||
Total costs and expenses | $ | 3,168 | $ | 3,368 | $ | (200) | (5.9) | % |
Three Months Ended | ||||||||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | Dollar Change | |||||||||||||||||
Non-service cost components of net periodic pension income | $ | (40) | $ | (37) | $ | (3) | ||||||||||||||
Foreign currency loss (gain) | 1 | (8) | 9 | |||||||||||||||||
(Gain) loss on sales of assets | (6) | (21) | 15 | |||||||||||||||||
Other loss (gain) | — | 2 | (2) | |||||||||||||||||
Total | $ | (45) | $ | (64) | $ | 19 |
Dollar Amount | ||||||||||||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | Dollar | Percent | ||||||||||||||||||||||
Income before income taxes | $ | 68 | $ | 78 | $ | (10) | (12.8) | % | ||||||||||||||||||
Non-GAAP income before income taxes | $ | 201 | $ | 207 | $ | (6) | (2.9) | % | ||||||||||||||||||
Net income | $ | 25 | $ | 42 | $ | (17) | (40.5) | % | ||||||||||||||||||
Adjusted EBIT | $ | 222 | $ | 224 | $ | (2) | (0.9) | % |
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Non-GAAP Results | |||||||||||||||||||||||||||
Income before income taxes | $ | 68 | $ | 39 | $ | 7 | $ | 87 | $ | 201 | ||||||||||||||||||||||
Income tax expense | 43 | 7 | 1 | 15 | 66 | |||||||||||||||||||||||||||
Net income | 25 | 32 | 6 | 72 | 135 | |||||||||||||||||||||||||||
Less: net loss attributable to non-controlling interest, net of tax | (1) | — | — | — | (1) | |||||||||||||||||||||||||||
Net income attributable to DXC common stockholders | $ | 26 | $ | 32 | $ | 6 | $ | 72 | $ | 136 | ||||||||||||||||||||||
Effective Tax Rate | 63.2 | % | 32.8 | % | ||||||||||||||||||||||||||||
Basic EPS | $ | 0.14 | $ | 0.18 | $ | 0.03 | $ | 0.40 | $ | 0.76 | ||||||||||||||||||||||
Diluted EPS | $ | 0.14 | $ | 0.17 | $ | 0.03 | $ | 0.39 | $ | 0.74 | ||||||||||||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||
Basic EPS | 179.66 | 179.66 | 179.66 | 179.66 | 179.66 | |||||||||||||||||||||||||||
Diluted EPS | 182.93 | 182.93 | 182.93 | 182.93 | 182.93 |
Three Months Ended June 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 Adjustments | Non-GAAP Results | |||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 78 | $ | 20 | $ | 1 | $ | 89 | $ | 11 | $ | 5 | $ | 3 | $ | — | $ | 207 | ||||||||||||||||||||||||||||||||||||||
Income tax expense | 36 | 5 | — | 21 | 11 | — | 1 | (3) | 71 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 42 | 15 | 1 | 68 | — | 5 | 2 | 3 | 136 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: net income attributable to non-controlling interest, net of tax | 6 | — | — | — | — | — | (4) | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to DXC common stockholders | $ | 36 | $ | 15 | $ | 1 | $ | 68 | $ | — | $ | 5 | $ | 6 | $ | 3 | $ | 134 | ||||||||||||||||||||||||||||||||||||||
Effective Tax Rate | 46.2 | % | 34.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 0.17 | $ | 0.07 | $ | 0.00 | $ | 0.32 | $ | 0.00 | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.64 | ||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 0.17 | $ | 0.07 | $ | 0.00 | $ | 0.32 | $ | 0.00 | $ | 0.02 | $ | 0.03 | $ | 0.01 | $ | 0.63 | ||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic EPS | 210.11 | 210.11 | 210.11 | 210.11 | 210.11 | 210.11 | 210.11 | 210.11 | 210.11 | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS | 213.75 | 213.75 | 213.75 | 213.75 | 213.75 | 213.75 | 213.75 | 213.75 | 213.75 |
Three Months Ended | ||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
Total revenue growth | (6.1) | % | (7.0) | % | ||||||||||
Foreign currency | 1.4 | % | 0.7 | % | ||||||||||
Acquisition and divestitures | 0.3 | % | 2.7 | % | ||||||||||
Organic revenue growth | (4.4) | % | (3.6) | % | ||||||||||
GBS revenue growth | (1.8) | % | (3.1) | % | ||||||||||
Foreign currency | 1.8 | % | 0.8 | % | ||||||||||
Acquisition and divestitures | 0.5 | % | 5.6 | % | ||||||||||
GBS organic revenue growth | 0.5 | % | 3.3 | % | ||||||||||
GIS revenue growth | (10.3) | % | (10.6) | % | ||||||||||
Foreign currency | 1.0 | % | 0.7 | % | ||||||||||
Acquisition and divestitures | — | % | — | % | ||||||||||
GIS organic revenue growth | (9.3) | % | (9.9) | % |
Three Months Ended | ||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | ||||||||||||
Net income | $ | 25 | $ | 42 | ||||||||||
Income tax expense | 43 | 36 | ||||||||||||
Interest income | (51) | (49) | ||||||||||||
Interest expense | 72 | 66 | ||||||||||||
EBIT | 89 | 95 | ||||||||||||
Restructuring costs | 39 | 20 | ||||||||||||
Transaction, separation and integration-related costs | 7 | 1 | ||||||||||||
Amortization of acquired intangible assets | 87 | 89 | ||||||||||||
Merger related indemnification | — | 11 | ||||||||||||
Loss on disposition of businesses | — | 5 | ||||||||||||
Impairment losses | — | 3 | ||||||||||||
Adjusted EBIT | $ | 222 | $ | 224 |
Three Months Ended | ||||||||||||||||||||
(in millions) | June 30, 2024 | June 30, 2023 | Change | |||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 238 | $ | 127 | $ | 111 | ||||||||||||||
Investing activities | (188) | (199) | 11 | |||||||||||||||||
Financing activities | 41 | (210) | 251 | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 2 | — | 2 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 93 | $ | (282) | $ | 375 | ||||||||||||||
Cash and cash equivalents at beginning of year | 1,224 | 1,858 | ||||||||||||||||||
Cash and cash equivalents at the end of period | $ | 1,317 | $ | 1,576 |
Three Months Ended | ||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||
Days of sales outstanding in accounts receivable | 68 | 68 | ||||||||||||
Days of purchases outstanding in accounts payable | (54) | (48) | ||||||||||||
Cash conversion cycle | 14 | 20 |
As of | ||||||||||||||||||||
(in millions) | June 30, 2024 | March 31, 2024 | Change | |||||||||||||||||
Short-term debt and current maturities of long-term debt | $ | 381 | $ | 271 | $ | 110 | ||||||||||||||
Long-term debt, net of current maturities | 3,766 | 3,818 | (52) | |||||||||||||||||
Total debt | $ | 4,147 | $ | 4,089 | $ | 58 | ||||||||||||||
Rating Agency | Long Term Ratings | Short Term Ratings | Outlook | |||||||||||||||||
Fitch | BBB | F-2 | Stable | |||||||||||||||||
Moody’s | Baa2 | P-2 | Negative | |||||||||||||||||
S&P | BBB- | - | Stable |
Exhibit Number | Description of Exhibit | ||||
10.1* | Seventeenth Amendment to the Receivables Purchase Agreement dated as of July 26, 2024, 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 | ||||
31.1* | |||||
31.2* | |||||
32.1** | |||||
32.2** | |||||
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) |
DXC TECHNOLOGY COMPANY | |||||||||||
Dated: | August 8, 2024 | By: | /s/ Christopher A. Voci | ||||||||
Name: | Christopher A. Voci | ||||||||||
Title: | Senior Vice President, Corporate Controller and Principal Accounting Officer |
2 |
3 |
4 |
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 |
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 |
THE BANK OF NOVA SCOTIA, as a Committed Purchaser By:/s/ Nick Mantas Name: Nick Mantas Title: Director | |||||
THE BANK OF NOVA SCOTIA, as Group Agent for its Purchaser Group By:/s/ Nick Mantas Name: Nick Mantas Title: Director LIBERTY STREET FUNDING, LLC, as a Conduit Purchaser By:/s/ Kevin Corrigan Name: Kevin Corrigan Title: Senior Vice President |
MIZUHO BANK, LTD., as a Committed Purchaser By: /s/ Jeremy Ebrahim Name: Jeremy Ebrahim Title: Managing Director | |||||
MIZUHO BANK, LTD., as Group Agent for its Purchaser Group By: /s/ Jeremy Ebrahim Name: Jeremy Ebrahim Title: Managing Director |
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/ Linda Ma Name: Linda Ma Title: Vice President |
768365009 16518096 |
768365009 16518096 |
768187296 16518096 |
768187296 16518096 |
8 |
768187296 16518096 |
9 |
768187296 16518096 |
12 |
768187296 16518096 |
14 |
768187296 16518096 |
15 |
768187296 16518096 |
16 |
768187296 16518096 |
17 |
768187296 16518096 |
18 |
768187296 16518096 |
19 |
768187296 16518096 |
22 |
768187296 16518096 |
23 |
768187296 16518096 |
25 |
768187296 16518096 |
26 |
768187296 16518096 |
27 |
768187296 16518096 |
29 |
768187296 16518096 |
30 |
768187296 16518096 |
31 |
768187296 16518096 |
32 |
768187296 16518096 |
33 |
768187296 16518096 |
34 |
768187296 16518096 |
35 |
768187296 16518096 |
48 |
768187296 16518096 |
49 |
768187296 16518096 |
67 |
768187296 16518096 |
72 |
768187296 16518096 |
75 |
768187296 16518096 |
79 |
768187296 16518096 |
83 |
768187296 16518096 |
98 |
768187296 16518096 |
111 |
768187296 16518096 |
112 |
768187296 16518096 |
120 |
768187296 16518096 |
121 |
768187296 16518096 |
S-4 |
768187296 16518096 |
768187296 16518096 |
Schedule 3V-1 |
768187296 16518096 |
Schedule 4V-1 |
768187296 16518096 |
Date: | August 8, 2024 | /s/ Raul Fernandez | ||||||||||||
Raul Fernandez President and Chief Executive Officer |
Date: | August 8, 2024 | /s/ Rob Del Bene | ||||||||||||
Rob Del Bene Executive Vice President and Chief Financial Officer |
Dated: | August 8, 2024 | /s/ Raul Fernandez | |||||||||
Raul Fernandez President and Chief Executive Officer |
Dated: | August 8, 2024 | /s/ Rob Del Bene | |||||||||
Rob Del Bene Executive Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Statement [Abstract] | ||
Revenues | $ 3,236 | $ 3,446 |
Costs of services (excludes depreciation and amortization and restructuring costs) | 2,526 | 2,719 |
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 301 | 327 |
Depreciation and amortization | 326 | 344 |
Restructuring costs | 39 | 20 |
Interest expense | 72 | 66 |
Interest income | (51) | (49) |
Loss on disposition of businesses | 0 | 5 |
Other income, net | (45) | (64) |
Total costs and expenses | 3,168 | 3,368 |
Income before income taxes | 68 | 78 |
Income tax expense | 43 | 36 |
Net income | 25 | 42 |
Less: net (loss) income attributable to non-controlling interest, net of tax | (1) | 6 |
Net income attributable to DXC common stockholders | $ 26 | $ 36 |
Income per common share: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.17 |
Diluted (in dollars per share) | $ 0.14 | $ 0.17 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 25 | $ 42 |
Other comprehensive income, net of taxes: | ||
Foreign currency translation adjustments, net of tax expense of $1 and $0 | 3 | 34 |
Cash flow hedges adjustments, net of tax expense of $1 and $1 | 3 | 3 |
Pension and other post-retirement benefit plans, net of tax: | ||
Amortization of prior service cost, net of tax benefit of $0 and $0 | (1) | (2) |
Pension and other post-retirement benefit plans, net of tax | (1) | (2) |
Other comprehensive income, net of taxes | 5 | 35 |
Comprehensive income | 30 | 77 |
Less: comprehensive (loss) income attributable to non-controlling interest | (1) | 6 |
Comprehensive income attributable to DXC common stockholders | $ 31 | $ 71 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, net of tax expense (benefit) | $ 1 | $ 0 |
Cash flow hedges adjustments, tax expense (benefit) | 1 | 1 |
Amortization of prior service cost, net of tax benefit | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Receivables and contract assets, net of allowance | $ 40 | $ 35 |
Accumulated Amortization | 5,945 | 5,792 |
Property and equipment, net of accumulated depreciation | $ 3,497 | $ 3,515 |
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) | 186,267,057 | 183,430,878 |
Treasury shares (in shares) | 5,491,373 | 4,591,340 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) shares in Thousands, $ in Millions |
Total |
Total DXC Equity |
Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Non- Controlling Interest |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Mar. 31, 2023 | 218,058 | ||||||||||||
Beginning balance at Mar. 31, 2023 | $ 3,820 | $ 3,497 | $ 2 | $ 9,121 | $ (4,665) | $ (774) | $ (187) | $ 323 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 42 | 36 | 36 | 6 | |||||||||
Other comprehensive income | 35 | 35 | 35 | ||||||||||
Share-based compensation expense | 22 | 22 | 22 | ||||||||||
Acquisition of treasury stock | (30) | (30) | (30) | ||||||||||
Share repurchase program (in shares) | [1] | (10,976) | |||||||||||
Stock repurchase program | [1] | (282) | (282) | (466) | 184 | ||||||||
Stock option exercises and other common stock transactions (in shares) | 3,502 | ||||||||||||
Non-controlling interest distributions and other | (4) | 0 | (4) | ||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 210,584 | ||||||||||||
Ending balance at Jun. 30, 2023 | 3,603 | 3,278 | $ 2 | 8,677 | (4,445) | (739) | (217) | 325 | |||||
Beginning balance (in shares) at Mar. 31, 2024 | 183,431 | ||||||||||||
Beginning balance at Mar. 31, 2024 | 3,066 | 2,811 | $ 2 | 7,599 | (3,839) | (732) | (219) | [2] | 255 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 25 | 26 | 26 | (1) | |||||||||
Other comprehensive income | 5 | 5 | 5 | ||||||||||
Share-based compensation expense | 23 | 23 | 23 | ||||||||||
Acquisition of treasury stock | (14) | (14) | (14) | [2] | |||||||||
Stock option exercises and other common stock transactions (in shares) | 2,836 | ||||||||||||
Non-controlling interest distributions and other | (2) | (1) | (1) | (1) | |||||||||
Ending balance (in shares) at Jun. 30, 2024 | 186,267 | ||||||||||||
Ending balance at Jun. 30, 2024 | $ 3,103 | $ 2,850 | $ 2 | $ 7,622 | $ (3,814) | $ (727) | $ (233) | [2] | $ 253 | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - shares |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Statement of Stockholders' Equity [Abstract] | ||
Treasury shares (in shares) | 5,491,373 | 4,591,340 |
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
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. Many of 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,” (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 attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated. 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, 2024 (“fiscal 2024”). 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 During fiscal 2024, the following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:
Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC’s condensed consolidated financial statements.
|
Earnings per Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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:
|
Receivables |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables Allowance for Doubtful Accounts The following table presents the change in balance for the allowance for doubtful accounts:
Receivables Facility The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified, 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 26, 2024, extending the termination date to July 25, 2025. As of June 30, 2024, the total availability under the Receivables Facility was $400 million and the amount sold to the Purchasers was $381 million, which was derecognized from the Company’s balance sheet. As of June 30, 2024, the Company recorded a $19 million asset 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.
|
Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 to 10 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 to three years. Operating Leases The components of operating lease expense were as follows:
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.
(1) Net of $237 million and $230 million in lease modifications and terminations for the three months ended June 30, 2024 and June 30, 2023, respectively. See Note 15 – “Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents operating lease balances:
The weighted-average operating lease term was 3.7 years and 3.9 years as of June 30, 2024 and March 31, 2024, respectively. The weighted-average operating lease discount rate was 4.7% and 4.6% as of June 30, 2024 and March 31, 2024, respectively. The following maturity analysis presents expected undiscounted cash payments for operating leases as of June 30, 2024:
Finance Leases The components of finance lease expense were as follows:
The following table provides supplemental cash flow information related to the Company’s finance leases:
(1) See Note 15 – ”Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents finance lease balances:
(1) See Note 8 – “Debt” for further information on finance lease liabilities. The weighted-average finance lease term was 2.8 years and 2.9 years as of June 30, 2024 and March 31, 2024, respectively. The weighted-average finance lease discount rate was 4.5% and 4.3% as of June 30, 2024 and March 31, 2024, respectively. The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2024:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of to 10 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 to three years. Operating Leases The components of operating lease expense were as follows:
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.
(1) Net of $237 million and $230 million in lease modifications and terminations for the three months ended June 30, 2024 and June 30, 2023, respectively. See Note 15 – “Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents operating lease balances:
The weighted-average operating lease term was 3.7 years and 3.9 years as of June 30, 2024 and March 31, 2024, respectively. The weighted-average operating lease discount rate was 4.7% and 4.6% as of June 30, 2024 and March 31, 2024, respectively. The following maturity analysis presents expected undiscounted cash payments for operating leases as of June 30, 2024:
Finance Leases The components of finance lease expense were as follows:
The following table provides supplemental cash flow information related to the Company’s finance leases:
(1) See Note 15 – ”Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents finance lease balances:
(1) See Note 8 – “Debt” for further information on finance lease liabilities. The weighted-average finance lease term was 2.8 years and 2.9 years as of June 30, 2024 and March 31, 2024, respectively. The weighted-average finance lease discount rate was 4.5% and 4.3% as of June 30, 2024 and March 31, 2024, respectively. The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2024:
|
Derivative Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2024 and March 31, 2024 were $838 million and $885 million, respectively. As of June 30, 2024, the related forecasted transactions extend through August 2026. During the three months ended June 30, 2024 and June 30, 2023, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur. See Note 13 – “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting. As of June 30, 2024, $5 million of gain related to cash flow hedges 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 primarily 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 June 30, 2024 and March 31, 2024 were $1.4 billion and $1.5 billion, respectively. The following table presents the pretax foreign currency loss (gain) to Other income, net:
(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. 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 June 30, 2024, there were eight counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $11 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 loss when such net investments are sold or substantially liquidated. As of June 30, 2024 and March 31, 2024, DXC had $697 million and $702 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S. subsidiaries. For the three months ended June 30, 2024, the pre-tax impact of gain on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive income was $5 million.
|
Intangible Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets consisted of the following:
The components of amortization expense were as follows:
(1)Transaction and transformation contract costs are included within other assets on the balance sheets. Estimated future amortization related to intangible assets as of June 30, 2024 is as follows:
|
Goodwill |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The following table summarizes the changes in the carrying amount of goodwill, by segment, as of June 30, 2024.
|
Debt |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following is a summary of the Company’s debt:
(1)The carrying amounts of the senior notes as of June 30, 2024 and March 31, 2024, include the remaining principal outstanding of $3,493 million and $3,509 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $15 million and $17 million, respectively. (2)At DXC’s option, DXC can borrow up to a maximum of €1 billion or its equivalent in £ and $. Fair Value of Debt The estimated fair value of the Company’s long-term debt excluding finance lease liabilities was $3.3 billion as of both June 30, 2024 and March 31, 2024, compared with carrying value of $3.6 billion and $3.7 billion as of June 30, 2024 and March 31, 2024, respectively. Long-term debt excluding finance lease liabilities are classified as Level 1 or Level 2 within the fair value hierarchy.
|
Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 16 – “Segment Information” for the Company’s segment disclosures. Remaining Performance Obligations As of June 30, 2024, approximately $16.7 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 34% of these remaining performance obligations in fiscal 2025, with the remainder of the balance recognized thereafter. Contract Balances The following table provides information about the balances of the Company’s trade receivables, contract assets and contract liabilities:
Change in contract liabilities were as follows:
|
Restructuring Costs |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | Restructuring Costs The composition of restructuring liabilities by financial statement line items is as follows:
Summary of Restructuring Plans Fiscal 2025 Plan During fiscal 2025, management approved global cost savings initiatives designed to better align the Company’s workforce, facility and data center requirements (the “Fiscal 2025 Plan”). Restructuring Liability Reconciliations by Plan
(1) Restructuring costs associated with right-of-use assets. (2) Foreign currency translation adjustments. Restructuring costs for the three months ended June 30, 2024 includes $4 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.
|
Pension and Other Benefit Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Benefit Plans | Pension and Other Benefit Plans Defined Benefit Plans The components of net periodic pension income were:
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.
|
Income Taxes |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate (“ETR”) was 63.2% and 46.2% for the three months ended June 30, 2024, and June 30, 2023, respectively. For the three months ended June 30, 2024, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, a reduction in a deferred tax asset for stock based compensation, and a decrease in a deferred tax liability for estimated taxes associated with the repatriation of foreign earnings. For the three months ended June 30, 2023, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and a decrease in uncertain tax positions due to an income tax audit settlement. The majority of our global unremitted foreign earnings have been taxed or would be exempt from U.S. tax upon repatriation. Such earnings and the majority of current foreign earnings are not indefinitely reinvested. The following earnings are considered indefinitely reinvested: approximately $477 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 $349 million of earnings in foreign subsidiaries. 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 $17 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 $15 million tax indemnification receivable from Perspecta related to other tax receivables and a $4 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, foreign exchange losses, and a third-party financing transaction 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 of approximately $517 million (including estimated interest and penalties) for the unreserved portion of these items and cash tax payments of approximately $592 million 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 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. During fiscal 2024, the Company determined there were inadvertent omissions on previously filed tax returns related to gain recognition agreements and certain related tax forms and disclosures. The Company notified the IRS promptly and filed for relief under Treas. Reg. Sec. 1.367(a)-8(p) to correct the issue. 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 2021 to December 31, 2025. The Company expects to reach resolution for fiscal and tax return years 2009 through 2011, no earlier than the end of fiscal year 2026. The Company expects to reach resolution for the fiscal and tax return years 2012 and 2013 no earlier than fiscal year 2028. The Company expects to reach resolution for fiscal and tax return years 2014 through 2021 no earlier than the end of fiscal year 2026. 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 June 30, 2024, the Company’s liability for uncertain tax positions increased by $5 million (excluding interest and penalties and related tax attributes) primarily due to the benefit of the U.S. research and development income tax credit. 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 $63 million.
|
Stockholders' Equity |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program During the first quarter of fiscal 2025, there were no share repurchases under our Share Repurchase Program. The details of shares repurchased during the three months ended June 30, 2023 are shown below:
Accumulated Other Comprehensive Loss The following table shows the changes in accumulated other comprehensive loss, net of taxes:
|
Stock Incentive Plans |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 at the end of 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.
Share-Based Compensation
|
Cash Flows |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1) Income tax refunds were $16 million and $6 million for the three months ended June 30, 2024 and June 30, 2023, respectively. (2) Net of $237 million and $230 million in lease modifications and terminations for the three months ended June 30, 2024 and June 30, 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.
|
Segment Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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") provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. Global Infrastructure Services ("GIS") provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. Segment Measures The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:
(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $87 million and $89 million for the three months ended June 30, 2024 and June 30, 2023, 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.
|
Commitments and Contingencies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments Minimum purchase commitments as of June 30, 2024 were as follows:
Contingencies Securities Litigation: 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. The trial date has since been extended to February 2026. In May 2024, the Court entered an order granting Plaintiffs’ motion for class certification. In July 2024, notice was provided to potential class members. The case is otherwise in discovery. On August 2, 2024, a purported class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against the Company and certain of its current and former officers. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false and/or misleading statements regarding the Company’s transformation journey. The putative class of plaintiffs includes investors who acquired DXC stock during the period of May 26, 2021 to May 16, 2024. The Company believes that the lawsuits described above are without merit and intends to vigorously defend all claims asserted. 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 12 – “Income Taxes” for further information. TCS Litigation: In April 2019, the Company filed a lawsuit against Tata Consultancy Services Limited (“TCS”) and Tata America International Corporation alleging misappropriation of certain of the Company’s trade secrets. In November 2023, a trial was held in the United States District Court for the Northern District of Texas, and a jury found TCS liable for misappropriating the Company’s trade secrets and awarded the Company $70 million in compensatory damages and $140 million in punitive damages, for a total award of $210 million. In June 2024, the Court entered a final order in the case, affirming the jury’s verdict in the Company’s favor and revising the monetary award to $56 million in compensatory damages and $112 million in punitive damages. The Court also awarded the Company $26 million in prejudgment interest, post-judgment interest at an annual rate of 4.824%, and its attorney’s fees and costs, in an amount to be determined in a later order. The total award to the Company is $194 million, plus its attorney’s fees and costs. The Court also issued a permanent injunction enjoining TCS from, among other things, possessing, accessing, or using any of the Company’s trade secrets that were at issue in the case, and appointing a monitor to confirm, among other things, that TCS does not do so. TCS may choose to appeal the decision of the District Court. The Company has not recognized any portion of the award in its financial statements and will continue to monitor the progress of the case. 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.
|
Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 26 | $ 36 |
Insider Trading Arrangements |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
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 |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
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,” (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 attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated. 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, 2024 (“fiscal 2024”).
|
||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | 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 | Recent Accounting Pronouncements During fiscal 2024, the following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:
Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC’s condensed consolidated financial statements.
|
Accounting Policies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | During fiscal 2024, the following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:
|
Earnings per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings (loss) per share | The following table reflects the calculation of basic and diluted EPS:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of antidilutive securities excluded from computation of earnings per share | The number of awards excluded were as follows:
|
Receivables (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | The following table presents the change in balance for the allowance for doubtful accounts:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of lease expense and supplemental cash flow information related to leases | The components of operating lease expense were as follows:
The components of finance lease expense were as follows:
The following table provides supplemental cash flow information related to the Company’s finance leases:
(1) See Note 15 – ”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.
(1) Net of $237 million and $230 million in lease modifications and terminations for the three months ended June 30, 2024 and June 30, 2023, respectively. See Note 15 – “Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents operating lease balances:
The weighted-average operating lease term was 3.7 years and 3.9 years as of June 30, 2024 and March 31, 2024, respectively. The weighted-average operating lease discount rate was 4.7% and 4.6% as of June 30, 2024 and March 31, 2024, respectively. The following table presents finance lease balances:
(1) See Note 8 – “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 June 30, 2024:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of finance lease liabilities | The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2024:
|
Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivatives not designated for hedge accounting | The following table presents the pretax foreign currency loss (gain) to Other income, net:
(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.
|
Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of amortizable intangible assets | Intangible assets consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of amortization expense | The components of amortization expense were as follows:
(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 June 30, 2024 is as follows:
|
Goodwill (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2024.
|
Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | The following is a summary of the Company’s debt:
(1)The carrying amounts of the senior notes as of June 30, 2024 and March 31, 2024, include the remaining principal outstanding of $3,493 million and $3,509 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $15 million and $17 million, respectively. (2)At DXC’s option, DXC can borrow up to a maximum of €1 billion or its equivalent in £ and $.
|
Revenue (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of contract assets and liabilities | The following table provides information about the balances of the Company’s trade receivables, contract assets and contract liabilities:
Change in contract liabilities were as follows:
|
Restructuring Costs (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restructuring expense | The composition of restructuring liabilities by financial statement line items is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restructuring liability | Restructuring Liability Reconciliations by Plan
(1) Restructuring costs associated with right-of-use assets. (2) Foreign currency translation adjustments.
|
Pension and Other Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans disclosures | The components of net periodic pension income were:
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of treasury stock | The details of shares repurchased during the three months ended June 30, 2023 are shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The following table shows the changes in accumulated other comprehensive loss, net of taxes:
|
Stock Incentive Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted stock and performance-based restricted stock units |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of employee service share-based compensation, allocation of recognized period costs | Share-Based Compensation
|
Cash Flows (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1) Income tax refunds were $16 million and $6 million for the three months ended June 30, 2024 and June 30, 2023, respectively. (2) Net of $237 million and $230 million in lease modifications and terminations for the three months ended June 30, 2024 and June 30, 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.
|
Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $87 million and $89 million for the three months ended June 30, 2024 and June 30, 2023, respectively.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of consolidated operating income to income before taxes |
|
Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term purchase agreements | Minimum purchase commitments as of June 30, 2024 were as follows:
|
Earnings per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to DXC common shareholders | $ 26 | $ 36 |
Common share information: | ||
Weighted average common shares outstanding for basic EPS (in shares) | 179,660 | 210,110 |
Dilutive effect of stock options and equity awards (in shares) | 3,270 | 3,640 |
Weighted average common shares outstanding for diluted EPS (in shares) | 182,930 | 213,750 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.17 |
Diluted (in dollars per share) | $ 0.14 | $ 0.17 |
Earnings per Share - Schedule of Antidilutive Securities (Details) - shares |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted EPS (in shares) | 927,909 | 918,608 |
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) | 1,930,605 | 1,505,292 |
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) | 160,461 | 1,287,186 |
Receivables - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2024 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 35 | $ 47 | $ 47 |
Provisions for losses on accounts receivable | 7 | $ 2 | 0 |
Other adjustments to allowance and write-offs | (2) | (12) | |
Ending balance | $ 40 | $ 35 |
Receivables - Narrative (Details) - Purchasers |
3 Months Ended |
---|---|
Jun. 30, 2024
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 | 400,000,000 |
Drawn amount | 381,000,000 |
Asset | 19,000,000 |
Gain (loss) on sale of receivables | $ 0 |
Leases - Narrative (Details) |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
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 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Operating lease expense | ||
Operating lease cost | $ 80 | $ 90 |
Short-term lease cost | 6 | 7 |
Variable lease cost | 13 | 15 |
Sublease income | (5) | (4) |
Total operating costs | 94 | 108 |
Finance lease expense | ||
Amortization of right-of-use assets | 25 | 42 |
Interest on lease liabilities | 4 | 4 |
Total finance lease cost | $ 29 | $ 46 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Operating Leases, Supplemental Cash Flow Information [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows | $ 80 | $ 90 |
ROU assets obtained in exchange for operating lease liabilities | 35 | 23 |
Change in lease classification from operating to finance lease | 237 | 230 |
Finance Leases, Supplemental Cash Flow Information [Abstract] | ||
Interest paid for finance lease liabilities – Operating cash flows | 4 | 4 |
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows | 55 | 61 |
Total cash paid in the measurement of finance lease obligations | 59 | 65 |
Capital expenditures through finance lease obligations | $ 7 | $ 17 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Operating Lease, Supplemental Balance Sheet Information [Abstract] | ||
Operating right-of-use assets, net | $ 656 | $ 731 |
Current operating lease liabilities | 258 | 282 |
Non-current operating lease liabilities | 437 | 497 |
Total operating lease liabilities | $ 695 | $ 779 |
Weighted-average operating lease term | 3 years 8 months 12 days | 3 years 10 months 24 days |
Weighted-average operating lease discount rate | 4.70% | 4.60% |
Finance Lease, Supplemental Balance Sheet Information [Abstract] | ||
Property and Equipment, net | Property and equipment, net of accumulated depreciation of $3,497 and $3,515 | Property and equipment, net of accumulated depreciation of $3,497 and $3,515 |
Short-term debt and current maturities of long-term debt | Short-term debt and current maturities of long-term debt | Short-term debt and current maturities of long-term debt |
Long-term debt, net of current maturities | Long-term debt, excluding finance lease liabilities | Long-term debt, excluding finance lease liabilities |
ROU finance lease assets | $ 233 | $ 264 |
Finance lease | 160 | 178 |
Finance lease | 218 | 242 |
Total finance lease liabilities | $ 378 | $ 420 |
Weighted-average finance lease term | 2 years 9 months 18 days | 2 years 10 months 24 days |
Weighted-average finance lease discount rate | 4.50% | 4.30% |
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Operating Leases | ||
Remainder of 2025 | $ 218 | |
2026 | 206 | |
2027 | 127 | |
2028 | 101 | |
2029 | 61 | |
Thereafter | 49 | |
Operating lease payments | 762 | |
Less: imputed interest | (67) | |
Total operating lease liabilities | 695 | $ 779 |
Finance Leases | ||
Remainder of 2025 | 139 | |
2026 | 132 | |
2027 | 85 | |
2028 | 41 | |
2029 | 13 | |
Thereafter | 0 | |
Finance lease payments | 410 | |
Less: imputed interest | (32) | |
Total finance lease liabilities | $ 378 | $ 420 |
Derivative Instruments - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024
USD ($)
counterparty
|
Mar. 31, 2024
USD ($)
|
|
Derivative [Line Items] | ||
Foreign currency cash flow hedge gain to be reclassified during next 12 months | $ 5 | |
Number of counterparties with concentration of credit risk | counterparty | 8 | |
Maximum exposure to loss | $ 11 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Forward Contracts | ||
Derivative [Line Items] | ||
Notational amount of derivative | 838 | $ 885 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign Currency Denominated Debt | ||
Derivative [Line Items] | ||
Notational amount of derivative | 697 | 702 |
Pretax gain (loss) on derivatives designated for hedge accounting included other comprehensive income | 5 | |
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts | ||
Derivative [Line Items] | ||
Notational amount of derivative | $ 1,400 | $ 1,500 |
Derivative Instruments - Nondesignated Hedging (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Foreign currency remeasurement | $ 7 | $ (4) |
Undesignated foreign currency forward contracts | (6) | (4) |
Total - Foreign currency loss (gain) | $ 1 | $ (8) |
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 7,956 | $ 7,922 |
Accumulated Amortization | 5,945 | 5,792 |
Net Carrying Value | 2,011 | 2,130 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,762 | 3,721 |
Accumulated Amortization | 3,132 | 3,070 |
Net Carrying Value | 630 | 651 |
Customer related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,886 | 3,892 |
Accumulated Amortization | 2,672 | 2,588 |
Net Carrying Value | 1,214 | 1,304 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 308 | 309 |
Accumulated Amortization | 141 | 134 |
Net Carrying Value | $ 167 | $ 175 |
Intangible Assets - Components of Amortization Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 232 | $ 231 |
Intangible asset amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 179 | 183 |
Transition and transformation contract cost amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 53 | $ 48 |
Intangible Assets - Estimated Future Amortization (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2025 | $ 533 | |
2026 | 622 | |
2027 | 426 | |
2028 | 182 | |
2029 | 86 | |
Thereafter | 162 | |
Net Carrying Value | $ 2,011 | $ 2,130 |
Goodwill - Schedule of Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Changes in the carrying amount of goodwill by segment [Roll Forward] | |
Goodwill, beginning balance | $ 532 |
Foreign currency translation | (1) |
Goodwill, gross | 10,087 |
Accumulated impairment losses | (9,556) |
Goodwill, ending balance | 531 |
GBS | |
Changes in the carrying amount of goodwill by segment [Roll Forward] | |
Goodwill, beginning balance | 532 |
Foreign currency translation | (1) |
Goodwill, gross | 5,021 |
Accumulated impairment losses | (4,490) |
Goodwill, ending balance | 531 |
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 |
Debt - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt, excluding finance lease liabilities | $ 3,766 | $ 3,818 |
Fair value | ||
Debt Instrument [Line Items] | ||
Long-term debt, excluding finance lease liabilities | 3,300 | 3,300 |
Carrying value | ||
Debt Instrument [Line Items] | ||
Long-term debt, excluding finance lease liabilities | $ 3,600 | $ 3,700 |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,236 | $ 3,446 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 897 | 1,002 |
United Kingdom | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 448 | 465 |
Other Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,030 | 1,064 |
Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 299 | 342 |
Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 562 | $ 573 |
Revenue - Contract Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
---|---|---|---|---|
Revenue from Contract with Customer [Abstract] | ||||
Trade receivables, net | $ 2,036 | $ 2,195 | ||
Contract assets | 366 | 362 | ||
Contract liabilities | $ 1,381 | $ 1,537 | $ 1,757 | $ 1,842 |
Revenue - Change in Contract Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Change In Contract With Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 1,537 | $ 1,842 |
Deferred revenue | 370 | 464 |
Recognition of deferred revenue | (456) | (548) |
Currency translation adjustment | (3) | 13 |
Other | (67) | (14) |
Balance, end of period | $ 1,381 | $ 1,757 |
Restructuring Costs - Composition of Restructuring Liability (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Mar. 31, 2024 |
---|---|---|
Restructuring Costs [Abstract] | ||
Accrued expenses and other current liabilities | $ 40 | $ 40 |
Other long-term liabilities | 8 | 11 |
Total | $ 48 | $ 51 |
Restructuring Costs - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Fiscal 2025 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Amortization of right-of-use assets and interest expense for leases vacated | $ 4 |
Pension and Other Benefit Plans - Pension Plan, Net Periodic Costs and Other Changes (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 13 | $ 15 |
Interest cost | 74 | 79 |
Expected return on assets | (113) | (114) |
Amortization of prior service credit | (1) | (2) |
Net periodic pension income | $ (27) | $ (22) |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2019 |
Apr. 01, 2017 |
|
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 63.20% | 46.20% | ||
Foreign earnings not indefinitely reinvested | $ 477 | |||
Cumulative undistributed earnings of foreign subsidiaries | 349 | |||
Potential federal and state cost from tax examinations | 517 | |||
Potential cash tax payments | 592 | |||
Increase in liability for uncertain tax positions | 5 | |||
Reasonably possible reduction in liability for uncertain tax positions | $ 63 | |||
HPES | ||||
Income Tax Contingency [Line Items] | ||||
Tax indemnification receivable, uncertain tax positions | $ 17 | |||
Tax indemnification receivable, tax indemnification payable | 52 | |||
Tax indemnification payable | $ 91 | |||
Perspecta | ||||
Income Tax Contingency [Line Items] | ||||
Tax indemnification payable | $ 4 | |||
Tax indemnification receivable | $ 15 |
Stockholders' Equity - Capital Stock and Share Repurchases (Details) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
$ / shares
shares
| |
Equity, Class of Treasury Stock [Line Items] | |
Number of shares repurchased (in shares) | shares | 10,975,643 |
Average price per share (in dollars per share) | $ / shares | $ 25.53 |
Amount | $ | $ 280 |
Open market purchases | |
Equity, Class of Treasury Stock [Line Items] | |
Number of shares repurchased (in shares) | shares | 10,975,643 |
Average price per share (in dollars per share) | $ / shares | $ 25.53 |
Amount | $ | $ 280 |
Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Total share-based compensation cost | $ 23 | $ 23 |
Related income tax benefit | $ 3 | $ 3 |
Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Cash paid for: | ||
Interest | $ 57 | $ 51 |
Taxes on income, net of refunds | 52 | 52 |
Operating: | ||
ROU assets obtained in exchange for lease, net | 35 | 23 |
Prepaid assets acquired under long-term financing | 0 | 4 |
Investing: | ||
Capital expenditures in accounts payable and accrued expenses | 3 | 3 |
Capital expenditures through finance lease obligations | 7 | 17 |
Assets acquired under long-term financing | 0 | 27 |
Financing: | ||
Shares repurchased but not settled in cash (3) | 0 | 13 |
Income tax refunds | 16 | 6 |
Change in lease classification from operating to finance lease | $ 237 | $ 230 |
Commitments and Contingencies - Minimum Purchase Commitments (Details) $ in Millions |
Jun. 30, 2024
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2025 | $ 426 |
2026 | 556 |
2027 | 137 |
2028 | 83 |
2029 | 30 |
Thereafter | 5 |
Total | $ 1,237 |
Commitments and Contingencies - Contingencies (Details) - TCS Litigation - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Nov. 30, 2023 |
|
Loss Contingencies [Line Items] | ||
Proceeds from litigation settlement | $ 194 | $ 210 |
Compensatory Damages | ||
Loss Contingencies [Line Items] | ||
Proceeds from litigation settlement | 56 | 70 |
Punitive Damages | ||
Loss Contingencies [Line Items] | ||
Proceeds from litigation settlement | $ 112 | $ 140 |
Post-Judgment Interest Rate | ||
Loss Contingencies [Line Items] | ||
Settlement interest rate | 4.824% | |
Prejudgment Post-judgment Interest | ||
Loss Contingencies [Line Items] | ||
Proceeds from litigation settlement | $ 26 |
^Q6ZJ
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M1A '=I\6)Y\6_IS84RZA5@^ *R* *L^2\I2>] VQ,IL
M#G2!TS.)%#:%@H,-ZI@#BN9"H549=M0JP& =@^\
M9%[ G$J[Q!D_CN:]F9$J6XB2@S\*@?L!@^O)%
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M)P'H6DCKC56E%Z^ELB2%?IG3OP>U )V,A\PEG]
M62O$IVNP".$T[O,C,C#/Z66ORQ"RZD[F-4G1WK4!388P++6G*A)(@6[CG7B/
MRHI7RP=6)I$N$Z52*4R]+DE^&;%N,[Y0=@D?P'Q2I?;X?9OHH.^EL8 GD$'#
MTI>WERU+-]'ZML0RI#K0NT4YTK1V7CO4!L6-=T2V7:;B119JRD0) OU!V]
M?K(AAA2-$]AF%#@*+=3//ZD(TR-'>-XM5G+B20Y,=]+-=5]_
!@QSO);,CLWM74?G", -?XA;5-,O/O5S(.8%D6
M>*OOOB2VZ7ZZ)3VT6]TV5Z])^BU;4YJC[U$89]>==9YO+GN]S%_3R,LND@V-
MV2?+)(V\G)VFJUZV2:FW*)2BL$?Z?;T7>4'
P;5JJJ4LB^8@84J>$(#M(AE":3N6093C]'F,37QQP*1]/K,QH
""TB@S,@2]U"PSNJ)(;33:]"-HG9O,F3(;L@
M((\RS%UQD-$HO,/BZN5,RV>$QC:$D)*9.M\TCU C%/TBO()!3WT@;-0>G7
MFJ2M-]Q@I