DXC Technology Co 10-Q for FY2022 Q2

DXC Technology Co (DXC)

10-Q 2021-11-04 For: 2021-09-30

Added on April 07, 2026

About this 10-Q

DXC Technology Co filed this 10-Q on November 4, 2021, covering the quarter ended September 30, 2021 (FY2022 Q2).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.03B; down 11.6% from $4.55B a year earlier
Net loss: $188M; compared with a net loss of $244M a year earlier
Diluted EPS: -$0.74; compared with -$0.96 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	47
3.	Quantitative and Qualitative Disclosures About Market Risk	65
4.	Controls and Procedures	65

	PART II – OTHER INFORMATION

1.	Legal Proceedings	67
1A.	Risk Factors	67
2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
3.	Defaults Upon Senior Securities	68
4.	Mine Safety Disclosures	68
5.	Other Information	68
6.	Exhibits	69



			Page
Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2021 and September 30, 2020 (unaudited)			2

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2021 and September 30, 2020 (unaudited)			3

Condensed Consolidated Balance Sheets as of September 30, 2021 and March 31, 2021 (unaudited)			4

Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2021 and September 30, 2020 (unaudited)			5

Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended September 30, 2021 and Septe mber 30, 2020 (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			10
Note 4–Divestitures			11
Note 5–Earnings (Loss) Per Share			14
Note 6–Receivables			15
Note 7–Leases			17
Note 8–Fair Value			19
Note 9–Derivative and Hedging Activities			21
Note 10–Intangible Assets			24
Note 11–Goodwill			25
Note 12–Debt			26
Note 13–Revenue			27
Note 14–Restructuring Costs			29
Note 15–Pension and Other Benefit Plans			31
Note 16–Income Taxes			32
Note 17–Stockholders’ Equity			33
Note 18–Stock Incentive Plans			34
Note 19–Cash Flows			36
Note 20–Segment Information			37
Note 21–Commitments and Contingencies			40


	Three Months Ended				Six Months Ended
(in millions, except per-share amounts)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020

Revenues	$	4,027	$	4,554	$	8,168	$	9,056

Costs of services (excludes depreciation and amortization and restructuring costs)	3,088		3,563		6,343		7,192
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	370		539		753		1,078
Depreciation and amortization	448		525		870		1,017
Restructuring costs	145		265		212		337
Interest expense	61		96		123		202
Interest income	(16)		(25)		(36)		(48)
Debt extinguishment costs	281		—		309		—
Gain on disposition of businesses	—		—		(377)		—
Other income, net	(102)		(103)		(205)		(191)
Total costs and expenses	4,275		4,860		7,992		9,587

(Loss) income before income taxes	(248)		(306)		176		(531)
Income tax (benefit) expense	(61)		(60)		81		(86)
Net (loss) income	(187)		(246)		95		(445)
Less: net income (loss) attributable to non-controlling interest, net of tax	1		(2)		5		4
Net (loss) income attributable to DXC common stockholders	$	(188)	$	(244)	$	90	$	(449)

(Loss) income per common share:
Basic	$	(0.74)	$	(0.96)	$	0.35	$	(1.77)
Diluted	$	(0.74)	$	(0.96)	$	0.35	$	(1.77)


			Three Months Ended				Six Months Ended
(in millions)			September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net (loss) income			$	(187)	$	(246)	$	95	$	(445)
Other comprehensive (loss) income, net of taxes:
	Foreign currency translation adjustments, net of tax (1)		(62)		33		(174)		30
	Cash flow hedges adjustments, net of tax (2)		9		7		8		18
	Available-for-sale securities, net of tax (3)		—		1		—		5
	Pension and other post-retirement benefit plans, net of tax:
		Amortization of prior service cost, net of tax (4)	(2)		(1)		(4)		(10)
	Pension and other post-retirement benefit plans, net of tax		(2)		(1)		(4)		(10)
Other comprehensive (loss) income, net of taxes			(55)		40		(170)		43
Comprehensive (loss)			(242)		(206)		(75)		(402)
	Less: comprehensive income attributable to non-controlling interest		2		1		15		6
Comprehensive (loss) attributable to DXC common stockholders			$	(244)	$	(207)	$	(90)	$	(408)


	As of
(in millions, except per-share and share amounts)	September 30, 2021		March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	2,699	$	2,968
Receivables and contract assets, net of allowance of $87 and $91	3,821		4,156
Prepaid expenses	534		567
Other current assets	330		517
Total current assets	7,384		8,208
Intangible assets, net of accumulated amortization of $4,816 and $4,422	3,691		4,043
Operating right-of-use assets, net	1,174		1,366
Goodwill	631		641
Deferred income taxes, net	255		289
Property and equipment, net of accumulated depreciation of $4,073 and $4,121	2,691		2,946
Other assets	4,289		4,545
Total Assets	$	20,115	$	22,038
LIABILITIES and EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	745		1,167
Accounts payable	724		914
Accrued payroll and related costs	645		698
Current operating lease liabilities	392		418
Accrued expenses and other current liabilities	3,120		3,476
Deferred revenue and advance contract payments	933		1,079
Income taxes payable	260		398
Total current liabilities	6,819		8,150
Long-term debt, net of current maturities	4,363		4,345
Non-current deferred revenue	775		622
Non-current operating lease liabilities	862		1,038
Non-current income tax liabilities and deferred tax liabilities	711		854
Other long-term liabilities	1,502		1,721
Total Liabilities	15,032		16,730
Commitments and contingencies
DXC stockholders’ equity:
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, none issued as of September 30, 2021 and March 31, 2021	—		—
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 255,003,243 issued as of September 30, 2021 and 257,052,533 issued as of March 31, 2021	3		3
Additional paid-in capital	10,646		10,761
Accumulated deficit	(5,225)		(5,331)
Accumulated other comprehensive loss	(482)		(302)
Treasury stock, at cost, 2,774,484 and 2,458,027 shares as of September 30, 2021 and March 31, 2021	(170)		(158)
Total DXC stockholders’ equity	4,772		4,973
Non-controlling interest in subsidiaries	311		335
Total Equity	5,083		5,308
Total Liabilities and Equity	$	20,115	$	22,038


☒			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 September 30, 2021
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock(1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at June 30, 2021	256,681	$	3	$	10,713	$	(5,045)	$	(426)	$	(168)	$	5,077	$	309	$	5,386
Net loss						(188)						(188)		1		(187)
Other comprehensive loss								(56)				(56)		1		(55)
Share-based compensation expense				22								22				22
Acquisition of treasury stock										(2)		(2)				(2)
Share repurchase program	(2,112)			(89)		6						(83)				(83)
Stock option exercises and other common stock transactions	434			3								3				3
Non-controlling interest distributions and other				(3)		2						(1)		—		(1)

Balance at September 30, 2021	255,003	$	3	$	10,646	$	(5,225)	$	(482)	$	(170)	$	4,772	$	311	$	5,083


	Three Months Ended September 30, 2020
(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at June 30, 2020	256,383	$	3	$	10,729	$	(5,386)	$	(599)	$	(154)	$	4,593	$	349	$	4,942

Net loss						(244)						(244)		(2)		(246)
Other comprehensive income								37				37		3		40
Share-based compensation expense				17								17				17
Acquisition of treasury stock										(1)		(1)				(1)
Stock option exercises and other common stock transactions	139											—				—
Non-controlling interest distributions and other						(1)						(1)				(1)
Balance at September 30, 2020	256,522	$	3	$	10,746	$	(5,631)	$	(562)	$	(155)	$	4,401	$	350	$	4,751


	Six Months Ended September 30, 2021
(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, 2021	257,053	$	3	$	10,761	$	(5,331)	$	(302)	$	(158)	$	4,973	$	335	$	5,308
Net income						90						90		5		95
Other comprehensive loss								(180)				(180)		10		(170)
Share-based compensation expense				40								40				40
Acquisition of treasury stock										(12)		(12)				(12)
Share repurchase program	(3,862)			(163)		13						(150)				(150)
Stock option exercises and other common stock transactions	1,812			11								11				11
Non-controlling interest distributions and other				(3)		3						—		(39)		(39)

Balance at September 30, 2021	255,003	$	3	$	10,646	$	(5,225)	$	(482)	$	(170)	$	4,772	$	311	$	5,083


	Six Months Ended September 30, 2020
(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, 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 loss						(449)						(449)		4		(445)
Other comprehensive income								41				41		2		43
Share-based compensation expense				32								32				32
Acquisition of treasury stock										(3)		(3)				(3)
Stock option exercises and other common stock transactions	848											—				—
Non-controlling interest distributions and other						(1)						(1)				(1)
Balance at September 30, 2020	256,522	$	3	$	10,746	$	(5,631)	$	(562)	$	(155)	$	4,401	$	350	$	4,751


Date Issued and ASU	Date Adopted and Method	Description	Impact
December 2019 ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”	April 1, 2021 Multiple Methods	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. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are applied on a prospective basis.	The Company determined that this standard had no material impact to its condensed consolidated financial statements following adoption.
July 2021 ASU 2021-05, “Leases (Topic 842): Lessors–Certain Leases with Variable Lease Payments”	Second quarter of fiscal 2022 Prospective	The amendments in this update modify lease classification requirements for lessors, providing that lease contracts with variable lease payments that do not depend on a reference index or a rate should be classified as operating leases if they would have been classified as a sales-type or direct financing lease and resulted in the recognition of a selling loss at lease commencement.	Upon adoption, on a prospective basis, customer leases with variable payments that would have resulted in an upfront loss when meeting sales type lease classification are classified as operating leases upon commencement or modification. Associated revenues, cost of services, or depreciation are subsequently recognized over their related lease terms or useful life. Before adopting this standard, leases with similar variable payments were classified as sales-type leases. These similar leases resulted in the recognition of upfront losses upon commencement or modification prior to the adoption, even when the overall economics of the lease arrangements were expected to be profitable.


(in millions)	As of April 1, 2021
Assets:
Cash and cash equivalents	$	34
Accounts receivable, net	62
Prepaid expenses	6

Total current assets	102
Intangible assets, net	101
Operating right-of-use assets, net	3
Goodwill	81
Deferred income taxes, net	62
Property and equipment, net	4
Other assets	15
Total non-current assets	266
Total assets	$	368

Liabilities:
Accounts payable	$	4
Accrued payroll and related costs	7
Current operating lease liabilities	1
Accrued expenses and other current liabilities	14
Deferred revenue and advance contract payments	45
Total current liabilities	71
Non-current deferred revenue	10
Long-term operating lease liabilities	2
Other long-term liabilities	3
Total long-term liabilities	15
Total liabilities	$	86


(in millions)	As of October 1, 2020
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


	Three Months Ended		Six Months Ended
	September 30, 2021(1)	September 30, 2020(1)	September 30, 2021	September 30, 2020(1)
Stock Options	745,357	1,625,591	521,967	1,735,395
Restricted Stock Units	1,990,916	2,598,301	205,014	2,554,090
Performance Stock Units	2,829,237	83,125	1,309,752	158,444


(in millions)	As of September 30, 2020
Beginning balance, as of April 1, 2020	$	103
Transfers of receivables	417
Collections	(420)
Change in funding availability	2
Facility amendments	(102)

Ending balance	$	—


	Fiscal Year
(in millions)	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
Operating lease payments	$	225	$	366	$	267	$	198	$	113	$	202	$	1,371
Less: imputed interest													(117)
Total operating lease liabilities													$	1,254


	Fiscal Year
(in millions)	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
Finance lease payments	$	188	$	290	$	170	$	80	$	28	$	3	$	759
Less: imputed interest													(30)
Total finance lease liabilities													$	729


	As of September 30, 2021
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	4,096	$	2,944	$	1,152
Customer related intangible assets	4,176		1,817		2,359
Other intangible assets	235		55		180
Total intangible assets	$	8,507	$	4,816	$	3,691


	As of March 31, 2021
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	4,014	$	2,733	$	1,281
Customer related intangible assets	4,212		1,641		2,571
Other intangible assets	239		48		191
Total intangible assets	$	8,465	$	4,422	$	4,043


		As of
(in millions)	Balance Sheet Line Item	September 30, 2021		March 31, 2021
ROU operating lease assets	Operating right-of-use assets, net	$	1,174	$	1,366

Operating lease liabilities	Current operating lease liabilities	$	392	$	418
Operating lease liabilities	Non-current operating lease liabilities	862		1,038
Total operating lease liabilities		$	1,254	$	1,456


	Fair Value Hierarchy
(in millions)	September 30, 2021
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	13	$	13	$	—	$	—
Time deposits(1)	83		83		—		—
Other securities(2)	58		—		55		3
Total assets	$	154	$	96	$	55	$	3

Liabilities:
Contingent consideration	$	20	$	—	$	—	$	20
Total liabilities	$	20	$	—	$	—	$	20


		For the Three Months Ended				For the Six Months Ended
(in millions)	Statement of Operations Line Item	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020

Foreign currency forward contracts	Other income, net	$	13	$	33	$	48	$	58


	Derivative Assets
		As of
(in millions)	Balance Sheet Line Item	September 30, 2021		March 31, 2021
Derivatives designated for hedge accounting:

Foreign currency forward contracts	Other current assets	$	14	$	9
Total fair value of derivatives designated for hedge accounting		$	14	$	9

Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	8	$	3
Total fair value of derivatives not designated for hedge accounting		$	8	$	3


	Derivative Liabilities
					As of
(in millions)					Balance Sheet Line Item	September 30, 2021		March 31, 2021
Derivatives designated for hedge accounting:

Foreign currency forward contracts					Accrued expenses and other current liabilities	$	1	$	5
Total fair value of derivatives designated for hedge accounting:	$	1	$	5

Derivatives not designated for hedge accounting:
Foreign currency forward contracts					Accrued expenses and other current liabilities	$	21	$	3
Total fair value of derivatives not designated for hedge accounting	$	21	$	3


(in millions)	GBS		GIS		Total
Goodwill, gross	$	5,131	$	5,066	$	10,197
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of March 31, 2021, net	$	641	$	—	$	641



Foreign currency translation	(10)		—		(10)


Goodwill, gross	5,121		5,066		10,187
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of September 30, 2021, net	$	631	$	—	$	631


(in millions)	Interest Rates	Fiscal Year Maturities	September 30, 2021		March 31, 2021
Short-term debt and current maturities of long-term debt
Commercial paper(1)	(0.43)% - (0.15)%	2022	$	232	$	213
Current maturities of long-term debt	Various	2022 - 2023	179		556
Current maturities of finance lease liabilities	0.35% - 17.68%	2022 - 2023	334		398
Short-term debt and current maturities of long-term debt			$	745	$	1,167

Long-term debt, net of current maturities
€750 million Senior notes	0.45%	2028	$	862	$	—
€600 million Senior notes	0.95%	2032	688		—
$700 million Senior notes	1.80%	2027	694		—
$650 million Senior notes	2.375%	2029	644		—
EUR term loan	0.80%	2023 - 2024	—		469
$274 million Senior notes	4.45%	2023	—		154
$171 million Senior notes	4.45%	2023	—		165
$500 million Senior notes	4.25%	2025	—		504
$500 million Senior notes	4.125%	2026	—		496
£250 million Senior notes	2.75%	2025	—		343
€650 million Senior notes	1.75%	2026	750		760
$500 million Senior notes	4.75%	2028	—		506
$234 million Senior notes	7.45%	2030	—		268


Finance lease liabilities	0.35% - 17.68%	2022 - 2027	729		894
Borrowings for assets acquired under long-term financing	0.00% - 6.78%	2022 - 2027	441		672
Mandatorily redeemable preferred stock outstanding	6.00%	2023	63		63
Other borrowings	Various	2022 - 2023	5		5
Long-term debt			4,876		5,299
Less: current maturities			513		954
Long-term debt, net of current maturities			$	4,363	$	4,345


	Restructuring Liability as of March 31, 2021		Costs Expensed, Net of Reversals		Costs Not Affecting Restructuring Liability(1)		Cash Paid		Other(2)		Restructuring Liability as of September 30, 2021
Fiscal 2022 Plan
Workforce Reductions	$	—	$	163	$	(1)	$	(51)	$	(2)	$	109
Facilities Costs	—		50		(35)		(12)		—		3
Total	$	—	$	213	$	(36)	$	(63)	$	(2)	$	112

Fiscal 2021 Plan
Workforce Reductions	$	180	$	(3)	$	—	$	(105)	$	(1)	$	71
Facilities Costs	3		5		(5)		(1)		—		2
Total	$	183	$	2	$	(5)	$	(106)	$	(1)	$	73

Fiscal 2020 Plan
Workforce Reductions	$	27	$	(2)	$	—	$	(10)	$	—	$	15
Facilities Costs	—		—		—		—		—		—
Total	$	27	$	(2)	$	—	$	(10)	$	—	$	15

Other Prior Year Plans
Workforce Reductions	$	19	$	1	$	—	$	(13)	$	—	$	7
Facilities Costs	6		—		—		(3)		—		3
Total	$	25	$	1	$	—	$	(16)	$	—	$	10

Acquired Liabilities
Workforce Reductions	$	34	$	(2)	$	—	$	(5)	$	(2)	$	25
Facilities Costs	$	1	—		—		(1)		—		—
Total	$	35	$	(2)	$	—	$	(6)	$	(2)	$	25


	Fiscal 2022
Fiscal Period	Number of Shares Repurchased	Average Price Per Share		Amount (in millions)
1st Quarter	1,750,000	$	38.52	$	67
2nd Quarter	2,112,212	$	39.10	83
Total	3,862,212	$	38.84	$	150


(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Loss
Balance at March 31, 2021	$	(554)	$	(1)	$	253	$	(302)
Other comprehensive loss before reclassifications	(92)		7		(5)		(90)
Amounts reclassified from accumulated other comprehensive loss(1)	(86)		—		(4)		(90)
Balance at September 30, 2021	$	(732)	$	6	$	244	$	(482)


	As of September 30, 2021
	Reserved for Issuance	Available for Future Grants
DXC Employee Equity Plan	51,200,000	30,904,322
DXC Director Equity Plan	745,000	361,651
DXC Share Purchase Plan	250,000	147,789
Total	52,195,000	31,413,762


	Number of Option Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding as of March 31, 2021	1,675,580	$	30.43	3.61	$	8
Granted	—	$	—

Exercised	(448,416)	$	24.11		$	6
Canceled/Forfeited	—	$	—
Expired	(28,774)	$	34.97
Outstanding as of September 30, 2021	1,198,390	$	32.69	3.34	$	6

Vested and exercisable as of September 30, 2021	1,198,390	$	32.69	3.34	$	6


	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, 2021	8,326,220	$	28.98	184,660	$	28.42
Granted	2,884,460	$	51.47	74,300	$	35.18

Settled	(1,739,285)	$	32.96	(102,238)	$	21.43
Canceled/Forfeited	(1,110,027)	$	36.74	—	$	—
Outstanding as of September 30, 2021	8,361,368	$	36.04	156,722	$	36.18


(in millions)	GBS		GIS		Total Reportable Segments		All Other		Totals
Three Months Ended September 30, 2021
Revenues	$	1,873	$	2,154	$	4,027	$	—	$	4,027
Segment profit	$	298	$	118	$	416	$	(70)	$	346
Depreciation and amortization(1)	$	51	$	257	$	308	$	30	$	338

Three Months Ended September 30, 2020
Revenues	$	2,242	$	2,312	$	4,554	$	—	$	4,554
Segment profit	$	317	$	36	$	353	$	(70)	$	283
Depreciation and amortization(1)	$	59	$	291	$	350	$	23	$	373


Fiscal year	Minimum Purchase Commitment
(in millions)
Remainder of 2022	$	631
2023	1,080
2024	828
2025	467
2026	255
Thereafter	15
Total	$	3,276


(in millions)	Remainder of Fiscal 2022		Fiscal 2023		Fiscal 2024 and Thereafter		Totals
Surety bonds	$	10	$	56	$	12	$	78
Letters of credit	139		55		528		722
Stand-by letters of credit	27		57		14		98
Totals	$	176	$	168	$	554	$	898


	Three Months Ended
(in millions)	Constant Currency September 30, 2021		September 30, 2020		Change		Percentage Change
GBS	$	1,851	$	2,242	$	(391)	(17.4)	%
GIS	2,110		2,312		(202)		(8.7)	%
Total	$	3,961	$	4,554	$	(593)	(13.0)	%


	Three Months Ended
	Amount				Percentage of Revenues				Percentage Point Change
(in millions)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Costs of services (excludes depreciation and amortization and restructuring costs)	$	3,088	$	3,563	76.7	%	78.3	%	(1.6)
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	370		539		9.2		11.8		(2.6)
Depreciation and amortization	448		525		11.1		11.5		(0.4)
Restructuring costs	145		265		3.6		5.8		(2.2)
Interest expense	61		96		1.5		2.1		(0.6)
Interest income	(16)		(25)		(0.4)		(0.5)		0.1
Debt extinguishment costs	281		—		7.0		—		7.0

Other income, net	(102)		(103)		(2.5)		(2.3)		(0.2)
Total Costs and Expenses	$	4,275	$	4,860	106.2	%	106.7	%	(0.5)


	Three Months Ended September 30, 2021
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization of Acquired Intangible Assets		Impairment Losses		Debt Extinguishment Costs		Non-GAAP Results


(Loss) income before income taxes	$	(248)		$	145	$	3	$	110	$	10	$	281	$	301
Income tax (benefit) expense	(61)			34		1		26		2		66		68
Net (loss) income	(187)			111		2		84		8		215		233
Less: net income attributable to non-controlling interest, net of tax	1			—		—		—		—		—		1
Net (loss) income attributable to DXC common stockholders	$	(188)		$	111	$	2	$	84	$	8	$	215	$	232

Effective Tax Rate	24.6		%											22.6		%

Basic EPS	$	(0.74)		$	0.44	$	0.01	$	0.33	$	0.03	$	0.85	$	0.92
Diluted EPS	$	(0.74)		$	0.43	$	0.01	$	0.33	$	0.03	$	0.84	$	0.90

Weighted average common shares outstanding for:
Basic EPS	252.40			252.40		252.40		252.40		252.40		252.40		252.40
Diluted EPS	252.40			257.20		257.20		257.20		257.20		257.20		257.20


Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
July 1, 2021 to July 31, 2021	2,112,212	$39.10	2,112,212	$1,637,691,401
August 1, 2021 to August 31, 2021	—	$—	—	$1,637,691,401
September 1, 2021 to September 30, 2021	—	$—	—	$1,637,691,401