DXC Technology Co 10-Q for FY2021 Q3

DXC Technology Co (DXC)

10-Q 2021-02-05 For: 2020-12-31

Added on April 07, 2026

About this 10-Q

DXC Technology Co filed this 10-Q on February 5, 2021, covering the quarter ended December 31, 2020 (FY2021 Q3).

Headline figures

Quarter ended December 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.29B; down 14.6% from $5.02B a year earlier
Net income: $1.1B; up 1239.0% from net income of $82M a year earlier
Diluted EPS: $4.29; up 1240.6% from $0.32 a year earlier

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Item		Page
	PART I - FINANCIAL INFORMATION

1.	Financial Statements (unaudited)	1
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
3.	Quantitative and Qualitative Disclosures About Market Risk	69
4.	Controls and Procedures	69

	PART II - OTHER INFORMATION

1.	Legal Proceedings	72
1A.	Risk Factors	72
2.	Unregistered Sales of Equity Securities and Use of Proceeds	72
3.	Defaults Upon Senior Securities	73
4.	Mine Safety Disclosure	73
5.	Other Information	73
6.	Exhibits	73



			Page
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2020 and December 31, 2019 (unaudited)			2

Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended December 31, 2020 and December 31, 2020 (unaudited)			3

Condensed Consolidated Balance Sheets as of December 31, 2020 and March 31, 2020 (unaudited)			4

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2020 and December 31, 2019 (unaudited)			5

Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended December 31, 2020 and December 31, 2019 (unaudited)			6

Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1–Summary of Significant Accounting Policies			8
Note 2–Recent Accounting Pronouncements			10
Note 3–Acquisitions			11
Note 4–Divestitures			12

Note 5–Earnings (Loss) Per Share			14
Note 6–Receivables			14
Note 7–Leases			17
Note 8–Fair Value			20
Note 9–Derivative and Hedging Activities			22
Note 10–Intangible Assets			25
Note 11–Goodwill			26
Note 12–Debt			27
Note 13–Revenue			28
Note 14–Restructuring Costs			30
Note 15–Pension and Other Benefit Plans			32
Note 16–Income Taxes			34
Note 17–Stockholders' Equity			35
Note 18–Stock Incentive Plans			36
Note 19–Cash Flows			38
Note 20–Segment Information			39
Note 21–Commitments and Contingencies			42


	Three Months Ended				Nine Months Ended
(in millions, except per-share amounts)	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019

Revenues	$	4,288	$	5,021	$	13,344	$	14,762

Costs of services (excludes depreciation and amortization and restructuring costs)	3,333		3,827		10,525		11,128
Selling, general, and administrative (excludes depreciation and amortization and restructuring costs)	517		518		1,595		1,514
Depreciation and amortization	475		479		1,492		1,416
Goodwill impairment losses	—		53		—		2,940
Restructuring costs	104		74		441		248
Interest expense	82		93		284		288
Interest income	(28)		(33)		(76)		(130)
Gain on disposition of businesses	(2,046)		—		(2,046)		—
Gain on arbitration award	—		—		—		(632)
Other income, net	(127)		(117)		(318)		(344)
Total costs and expenses	2,310		4,894		11,897		16,428

Income (loss) before income taxes	1,978		127		1,447		(1,666)
Income tax expense	875		37		789		191


Net income (loss)	1,103		90		658		(1,857)
Less: net income attributable to non-controlling interest, net of tax	5		8		9		17
Net income (loss) attributable to DXC common stockholders	$	1,098	$	82	$	649	$	(1,874)

Earnings (loss) per common share:
Basic	$	4.32	$	0.32	$	2.55	$	(7.20)
Diluted	$	4.29	$	0.32	$	2.54	$	(7.20)


			Three Months Ended				Nine Months Ended
(in millions)			December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019

Net income (loss)			$	1,103	$	90	$	658	$	(1,857)

Other comprehensive income, net of taxes:
	Foreign currency translation adjustments, net of tax (1)		170		293		200		87

	Cash flow hedges adjustments, net of tax (2)		—		(8)		18		(6)
	Available-for-sale securities, net of tax (3)		(11)		—		(6)		2
	Pension and other post-retirement benefit plans, net of tax:
		Prior service cost, net of tax (4)	(1)		—		(1)		—

		Amortization of prior service cost, net of tax (5)	(2)		(2)		(12)		(6)

	Pension and other post-retirement benefit plans, net of tax		(3)		(2)		(13)		(6)
Other comprehensive income, net of taxes			156		283		199		77
Comprehensive income (loss)			1,259		373		857		(1,780)
	Less: comprehensive income attributable to non-controlling interest		6		39		12		26
Comprehensive income (loss) attributable to DXC common stockholders			$	1,253	$	334	$	845	$	(1,806)


	As of
(in millions, except per-share and share amounts)	December 31, 2020		March 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	3,919	$	3,679
Receivables and contract assets, net of allowance of $199 and $74	4,130		4,392
Prepaid expenses	586		646
Other current assets	470		270

Total current assets	9,105		8,987

Intangible assets, net of accumulated amortization of $4,545 and $4,347	4,019		5,731
Operating right-of-use assets, net	1,459		1,428
Goodwill	736		2,017
Deferred income taxes, net	315		265
Property and equipment, net of accumulated depreciation of $4,295 and $3,818	3,321		3,547
Other assets	4,679		4,031

Total Assets	$	23,634	$	26,006

LIABILITIES and EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$	795	$	1,276
Accounts payable	852		1,598
Accrued payroll and related costs	741		630
Current operating lease liabilities	450		482
Accrued expenses and other current liabilities	3,285		2,801
Deferred revenue and advance contract payments	1,102		1,021
Income taxes payable	1,045		87

Total current liabilities	8,270		7,895

Long-term debt, net of current maturities	5,444		8,672
Non-current deferred revenue	666		735
Non-current operating lease liabilities	1,113		1,063
Non-current income tax liabilities and deferred tax liabilities	792		1,157
Other long-term liabilities	1,354		1,355

Total Liabilities	17,639		20,877

Commitments and contingencies

DXC stockholders’ equity:
Preferred stock, par value $.01 per share, 1,000,000 shares authorized, none issued as of December 31, 2020 and March 31, 2020	—		—
Common stock, par value $.01 per share, 750,000,000 shares authorized, 256,800,719 issued as of December 31, 2020 and 255,674,040 issued as of March 31, 2020	3		3
Additional paid-in capital	10,748		10,714
Accumulated deficit	(4,533)		(5,177)
Accumulated other comprehensive loss	(407)		(603)
Treasury stock, at cost, 2,410,917 and 2,148,708 shares as of December 31, 2020 and March 31, 2020	(156)		(152)
Total DXC stockholders’ equity	5,655		4,785
Non-controlling interest in subsidiaries	340		344
Total Equity	5,995		5,129
Total Liabilities and Equity	$	23,634	$	26,006


☒			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


			DXC TECHNOLOGY COMPANY
			(Exact name of registrant as specified in its charter)


	Three Months Ended December 31, 2020
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock (1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at September 30, 2020	256,522	$	3	$	10,746	$	(5,631)	$	(562)	$	(155)	$	4,401	$	350	$	4,751

Net income						1,098						1,098		5		1,103
Other comprehensive income								155				155		1		156
Share-based compensation expense				1								1				1
Acquisition of treasury stock										(1)		(1)				(1)

Stock option exercises and other common stock transactions	279			1								1				1

Non-controlling interest distributions and other												—		(16)		(16)

Balance at December 31, 2020	256,801	$	3	$	10,748	$	(4,533)	$	(407)	$	(156)	$	5,655	$	340	$	5,995

	Three Months Ended December 31, 2019
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at September 30, 2019	257,626	$	3	$	10,793	$	(1,668)	$	(428)	$	(150)	$	8,550	$	320	$	8,870
Net income						82						82		8		90
Other comprehensive income								252				252		31		283
Share-based compensation expense				6								6				6
Acquisition of treasury stock										(1)		(1)				(1)
Share repurchase program	(2,354)			(98)		12						(86)				(86)
Stock option exercises and other common stock transactions	334											—				—
Dividends declared ($0.21 per share)						(54)						(54)				(54)
Non-controlling interest distributions and other												—		(7)		(7)

Balance at December 31, 2019	255,606	$	3	$	10,701	$	(1,628)	$	(176)	$	(151)	$	8,749	$	352	$	9,101


	Nine Months Ended December 31, 2020
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock (1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at March 31, 2020	255,674	$	3	$	10,714	$	(5,177)	$	(603)	$	(152)	$	4,785	$	344	$	5,129
Cumulative effect of adopting ASU 2016-13						(4)						(4)				(4)
Net income						649						649		9		658
Other comprehensive income								196				196		3		199
Share-based compensation expense				33								33				33
Acquisition of treasury stock										(4)		(4)				(4)

Stock option exercises and other common stock transactions	1,127			1								1				1

Non-controlling interest distributions and other						(1)						(1)		(16)		(17)

Balance at December 31, 2020	256,801	$	3	$	10,748	$	(4,533)	$	(407)	$	(156)	$	5,655	$	340	$	5,995

	Nine Months Ended December 31, 2019
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at March 31, 2019	270,214	$	3	$	11,301	$	478	$	(244)	$	(136)	$	11,402	$	323	$	11,725
Net loss						(1,874)						(1,874)		17		(1,857)
Other comprehensive income								68				68		9		77
Share-based compensation expense				55								55				55
Acquisition of treasury stock										(15)		(15)				(15)
Share repurchase program	(15,934)			(669)		(67)						(736)				(736)
Stock option exercises and other common stock transactions	1,326			14								14				14
Dividends declared ($0.63 per share)						(165)						(165)				(165)
Non-controlling interest distributions and other												—		3		3

Balance at December 31, 2019	255,606	$	3	$	10,701	$	(1,628)	$	(176)	$	(151)	$	8,749	$	352	$	9,101


Date Issued and ASU	Date Adopted and Method	Description	Impact
June 2016 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”	April 1, 2020 Modified Retrospective	This update requires the measurement and recognition of expected credit losses using the current expected credit loss model for financial assets held at amortized cost, which includes the Company’s trade accounts receivable, certain financial instruments and contract assets. It replaces the existing incurred loss impairment model with an expected loss methodology. The recorded credit losses are adjusted each period for changes in expected lifetime credit losses. The standard requires a cumulative effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective.	The Company adopted this standard using the modified retrospective approach and recorded an immaterial cumulative effect adjustment in retained earnings as of April 1, 2020.
August 2018 ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract"	April 1, 2020 Prospective	This update helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. Entities have the option to apply this standard prospectively to all implementation costs incurred after the date of adoption or retrospectively.	The Company adopted this standard using the prospective method and determined that the adoption of ASU 2018-15 had no material impact to its condensed consolidated financial statements.


Date Issued and ASU	DXC Effective Date	Description	Impact
December 2019 ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes"	Fiscal 2022	This update is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. Early adoption of this update is permitted.	The Company is currently evaluating the potential impact this standard may have on its financial statements in future reporting periods.


(in millions)	Fair Value
Cash and cash equivalents	$	113
Accounts receivable	233
Other current assets	15
Total current assets	361
Property and equipment	31
Intangible assets	577
Other assets	99
Total assets acquired	1,068
Accounts payable, accrued payroll, accrued expenses, and other current liabilities	(121)
Deferred revenue	(8)
Long-term deferred tax liabilities and income tax payable	(106)
Other liabilities	(72)
Total liabilities assumed	(307)
Net identifiable assets acquired	761

Goodwill	1,262
Total consideration transferred	$	2,023


						Estimated Useful Lives (Years)
Customer related intangibles						10
Trade names						20
Developed technology						3

Third-party purchased software						3


(in millions)
Assets:
Cash and cash equivalents	$	8
Accounts receivable, net	295
Prepaid expenses	39
Other current assets	2
Total current assets	344
Intangible assets, net	1,308
Operating right-of-use assets, net	74
Goodwill	1,354
Property and equipment, net	46
Other assets	54
Total non-current assets	2,836
Total assets	$	3,180

Liabilities:
Accounts payable	$	79
Accrued payroll and related costs	13
Current operating lease liabilities	27
Accrued expenses and other current liabilities	36
Deferred revenue and advance contract payments	20
Total current liabilities	175
Non-current deferred revenue	32
Long-term operating lease liabilities	48
Other long term liabilities	2
Total long-term liabilities	82
Total liabilities	$	257


(in millions)	As of and for the Nine Months Ended
	December 31, 2019
Beginning balance	$	574
Transfers of receivables	1,214
Collections	(1,265)
Change in funding availability	2
Facility amendments	(525)

Ending balance	$	—


(in millions)	As of and for the Nine Months Ended December 31, 2020
Beginning balance	$	103
Transfers of receivables	417
Collections	(420)
Change in funding availability	2
Facility amendments	(102)

Ending balance	$	—


	As of
	December 31, 2020		March 31, 2020
Weighted Average remaining lease term:	Years
Operating leases	4.8		4.8
Finance leases	2.7		2.7

Weighted average remaining discount rate:	Rate
Operating leases	4.0	%	4.0	%
Finance leases	3.8	%	6.4	%


Fiscal year	Operating Leases
(in millions)	Real Estate		Equipment		Finance Leases
Remainder of 2021	$	117	$	15	$	128
2022	412		42		419
2023	337		24		275
2024	262		11		139
2025	192		5		48
Thereafter	297		3		6
Total lease payments	1,617		100		1,015
Less: imputed interest	(151)		(3)		(39)
Total payments	$	1,466	$	97	$	976


		As of
(in millions)	Balance Sheet Line Item	December 31, 2020		March 31, 2020
Assets:
ROU operating lease assets	Operating right-of-use assets, net	$	1,459	$	1,428
ROU finance lease assets	Property and Equipment, net	971		1,220
Total		$	2,430	$	2,648

Liabilities:
Current
Operating lease	Current operating lease liabilities	$	450	$	482
Finance lease	Short-term debt and current maturities of long-term debt	431		444
Total		$	881	$	926

Non-current
Operating lease	Non-current operating lease liabilities	$	1,113	$	1,063
Finance lease	Long-term debt, net of current maturities	545		602
Total		$	1,658	$	1,665


	Fair Value Hierarchy
(in millions)	December 31, 2020
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	262	$	262	$	—	$	—
U.S. treasury bills(1)	250		250		—		—
Time deposits(1)	349		349		—		—
Other debt securities(2)	62		—		59		3

Total assets	$	923	$	861	$	59	$	3

Liabilities:
Contingent consideration	$	40	$	—	$	—	$	40
Total liabilities	$	40	$	—	$	—	$	40


		For the Three Months Ended			For the Nine Months Ended
(in millions)	Statement of Operations Line Item		December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019

Foreign currency forward contracts	Other expense (income), net		$	16	$	1	$	74	$	(21)


	Derivative Assets
		As of
(in millions)	Balance Sheet Line Item	December 31, 2020		March 31, 2020

Derivatives designated for hedge accounting:

Foreign currency forward contracts	Other current assets	$	9	$	—
Total fair value of derivatives designated for hedge accounting		$	9	$	—

Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	6	$	16
Total fair value of derivatives not designated for hedge accounting		$	6	$	16


	Derivative Liabilities
					As of
(in millions)					Balance Sheet Line Item	December 31, 2020		March 31, 2020

Derivatives designated for hedge accounting:

Foreign currency forward contracts					Accrued expenses and other current liabilities	$	5	$	20
Total fair value of derivatives designated for hedge accounting:	$	5	$	20

Derivatives not designated for hedge accounting:
Foreign currency forward contracts					Accrued expenses and other current liabilities	$	17	$	12
Total fair value of derivatives not designated for hedge accounting	$	17	$	12


	As of December 31, 2020
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	4,001	$	2,891	$	1,110
Customer related intangible assets	4,296		1,606		2,690
Other intangible assets	267		48		219
Total intangible assets	$	8,564	$	4,545	$	4,019


	As of March 31, 2020
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	4,048	$	2,614	$	1,434
Customer related intangible assets	5,795		1,697		4,098
Other intangible assets	235		36		199
Total intangible assets	$	10,078	$	4,347	$	5,731


(in millions)	GBS		GIS		Total
Goodwill, gross	$	6,507	$	5,066	$	11,573
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of March 31, 2020, net	$	2,017	$	—	$	2,017

Acquisition related adjustments	18		—		18
Divestitures	(1,355)		—		(1,355)
Assets held for sale	(4)		—		(4)
Foreign currency translation	60		—		60


Goodwill, gross	5,226		5,066		10,292
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of December 31, 2020, net	$	736	$	—	$	736


(in millions)	Interest Rates	Fiscal Year Maturities	December 31, 2020		March 31, 2020
Short-term debt and current maturities of long-term debt
Commercial paper(1)	(0.22)% - 0.44%	2021 - 2022	$	112	$	542
Current maturities of long-term debt	Various	2021 - 2022	252		290
Current maturities of finance lease liabilities	0.62% - 18.47%	2021 - 2022	431		444
Short-term debt and current maturities of long-term debt			$	795	$	1,276

Long-term debt, net of current maturities
AUD term loan	0.94% - 0.96%	2022	—		489
GBP term loan	0.88% - 1.46%	2022	—		556
EUR term loan	0.65%	2022 - 2023	—		822
EUR term loan	0.80%(2)	2023 - 2024	488		821
USD term loan	1.40% - 2.24%	2025	—		480


$274 million Senior notes	4.45%	2023	276		276
$171 million Senior notes	4.45%	2023	172		172
$500 million Senior notes	4.25%	2025	504		505
$500 million Senior notes	4.00%	2024	497		—
$500 million Senior notes	4.13%	2026	496		—
£250 million Senior notes	2.75%	2025	339		307
€650 million Senior notes	1.75%	2026	792		709
$500 million Senior notes	4.75%	2028	507		507
$234 million Senior notes	7.45%	2030	269		271

Revolving credit facility	1.26% - 2.08%	2024 - 2025	—		1,500
Lease credit facility	1.15% - 1.99%	2021 - 2023	—		11
Finance lease liabilities	0.62% - 18.47%	2021 - 2027	976		1,046
Borrowings for assets acquired under long-term financing	0.00% - 6.39%	2021 - 2027	742		802
Mandatorily redeemable preferred stock outstanding	6.00%	2023	63		62
Other borrowings	Various	2021 - 2022	6		70
Long-term debt			6,127		9,406
Less: current maturities			683		734
Long-term debt, net of current maturities			$	5,444	$	8,672


	Nine Months Ended
(in millions)	December 31, 2020(1)		December 31, 2019
Balance, beginning of period	$	1,756	$	1,886
Deferred revenue	2,111		2,091
Recognition of deferred revenue	(2,137)		(2,137)
Currency translation adjustment	146		12
Other	(108)		(36)
Balance, end of period	$	1,768	$	1,816


	Restructuring Liability as of March 31, 2020		Costs Expensed, Net of Reversals(1)		Costs Not Affecting Restructuring Liability(2)		Cash Paid		Other(3)		Restructuring Liability as of December 31, 2020
Fiscal 2021 Plan
Workforce Reductions	$	—	$	416	$	(9)	$	(210)	$	9	$	206
Facilities Costs	—		25		(9)		(11)		(1)		4
Total	$	—	$	441	$	(18)	$	(221)	$	8	$	210

Fiscal 2020 Plan
Workforce Reductions (4)	$	74	$	7	$	2	$	(49)	$	5	$	39
Facilities Costs	2		(4)		4		(2)		—		—
Total	$	76	$	3	$	6	$	(51)	$	5	$	39

Fiscal 2019 Plan
Workforce Reductions	$	25	$	(2)	$	(3)	$	(13)	$	2	$	9
Facilities Costs	5		(3)		2		—		1		5
Total	$	30	$	(5)	$	(1)	$	(13)	$	3	$	14






Other Prior Year Plans
Workforce Reductions	$	24	$	1	$	2	$	(14)	$	2	$	15
Facilities Costs	—		—		—		—		—		—
Total	$	24	$	1	$	2	$	(14)	$	2	$	15

Acquired Liabilities
Workforce Reductions	$	39	$	1	$	—	$	(7)	$	1	$	34
Facilities Costs	11		—		1		(3)		—		9
Total	$	50	$	1	$	1	$	(10)	$	1	$	43


	Fiscal 2020
Fiscal Period		Number of Shares Repurchased	Average Price Per Share		Amount (in millions)
1st Quarter
Open market purchases		5,510,415	$	54.44	$	300
Accelerated stock repurchases		1,849,194	$	54.08	100
1st Quarter Total		7,359,609	$	54.35	400
2nd Quarter
Open market purchases		4,414,840	$	33.96	150
Accelerated stock repurchases		1,805,350	$	55.39	100
2nd Quarter Total		6,220,190	$	40.18	250
3rd Quarter
Open market purchases		2,353,852	$	36.68	86
Accelerated stock repurchases		—	$	—	—
3rd Quarter Total		2,353,852	$	36.68	86
Total		15,933,651	$	46.21	$	736


(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Available-for-sale Securities		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2020	$	(851)	$	(20)	$	9	$	259	$	(603)
Current-period other comprehensive income	197		12		(6)		—		203
Amounts reclassified from accumulated other comprehensive loss	—		6		—		(13)		(7)
Balance at December 31, 2020	$	(654)	$	(2)	$	3	$	246	$	(407)


	As of December 31, 2020
	Reserved for Issuance	Available for Future Grants
DXC Employee Equity Plan	51,200,000	32,794,274
DXC Director Equity Plan	745,000	435,951
DXC Share Purchase Plan	250,000	165,185
Total	52,195,000	33,395,410


	Number of Option Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding as of March 31, 2020	1,869,815	$	29.92	4.27	$	—
Granted	—	$	—

Exercised	(39,601)	$	17.43		$	—
Canceled/Forfeited	—	$	—
Expired	(82,614)	$	31.24
Outstanding as of December 31, 2020	1,747,600	$	30.11	3.73	$	3
Vested and exercisable as of December 31, 2020	1,747,600	$	30.11	3.73	$	3


	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, 2020	4,174,476	$	55.45	114,615	$	37.69
Granted	7,576,602	$	18.67	118,500	$	18.82

Settled	(1,045,190)	$	50.65	(48,455)	$	26.90
Canceled/Forfeited	(2,042,804)	$	36.14	—	$	—
Outstanding as of December 31, 2020	8,663,084	$	28.43	184,660	$	28.42


(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Three Months Ended December 31, 2020
Revenues	$	1,921	$	2,367	$	4,288	$	—	$	4,288
Segment profit	$	273	$	88	$	361	$	(61)	$	300
Depreciation and amortization(1)	$	53	$	281	$	334	$	27	$	361

Three Months Ended December 31, 2019
Revenues	$	2,359	$	2,662	$	5,021	$	—	$	5,021
Segment profit	$	353	$	232	$	585	$	(57)	$	528
Depreciation and amortization(1)	$	61	$	244	$	305	$	28	$	333


Fiscal year	Minimum Purchase Commitment (1)
(in millions)
Remainder of 2021	$	1,339
2022	1,093
2023	817
2024	227


Total	$	3,476


(in millions)	Remainder of Fiscal 2021		Fiscal 2022		Fiscal 2023 and Thereafter		Totals
Surety bonds	$	14	$	93	$	87	$	194
Letters of credit	37		147		527		711
Stand-by letters of credit	36		41		31		108
Totals	$	87	$	281	$	645	$	1,013


	Three Months Ended
(in millions)	Constant Currency December 31, 2020		December 31, 2019		Change		Percentage Change
GBS	$	1,868	$	2,359	$	(491)	(20.8)	%
GIS	2,302		2,662		(360)		(13.5)	%

Total	$	4,170	$	5,021	$	(851)	(16.9)	%