DXC Technology Co 10-Q for FY2022 Q3

DXC Technology Co (DXC)

10-Q 2022-02-03 For: 2021-12-31

Added on April 07, 2026

About this 10-Q

DXC Technology Co filed this 10-Q on February 3, 2022, covering the quarter ended December 31, 2021 (FY2022 Q3).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.09B; down 4.6% from $4.29B a year earlier
Net income: $98M; down 91.1% from net income of $1.1B a year earlier
Diluted EPS: $0.38; down 91.1% from $4.29 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	66
4.	Controls and Procedures	66

	PART II – OTHER INFORMATION

1.	Legal Proceedings	68
1A.	Risk Factors	68
2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
3.	Defaults Upon Senior Securities	69
4.	Mine Safety Disclosures	69
5.	Other Information	69
6.	Exhibits	70



			Page
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2021 and December 31, 2020 (unaudited)			2

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2021 and December 31, 2020 (unaudited)			3

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

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2021 and December 31, 2020 (unaudited)			5

Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended December 31, 2021 and December 31, 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 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				Nine Months Ended
(in millions, except per-share amounts)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020

Revenues	$	4,089	$	4,288	$	12,257	$	13,344

Costs of services (excludes depreciation and amortization and restructuring costs)	3,179		3,333		9,522		10,525
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	340		517		1,093		1,595
Depreciation and amortization	424		475		1,294		1,492
Restructuring costs	36		104		248		441
Interest expense	38		82		161		284
Interest income	(15)		(28)		(51)		(76)
Debt extinguishment costs	2		—		311		—
(Gain) loss on disposition of businesses	4		(2,046)		(373)		(2,046)
Other income, net	(85)		(127)		(290)		(318)
Total costs and expenses	3,923		2,310		11,915		11,897

Income before income taxes	166		1,978		342		1,447
Income tax expense	64		875		145		789
Net income	102		1,103		197		658
Less: net income attributable to non-controlling interest, net of tax	4		5		9		9
Net income attributable to DXC common stockholders	$	98	$	1,098	$	188	$	649

Income per common share:
Basic	$	0.39	$	4.32	$	0.74	$	2.55
Diluted	$	0.38	$	4.29	$	0.73	$	2.54


			Three Months Ended				Nine Months Ended
(in millions)			December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Net income			$	102	$	1,103	$	197	$	658
Other comprehensive income (loss), net of taxes:
	Foreign currency translation adjustments, net of tax (1)		99		170		(75)		200
	Cash flow hedges adjustments, net of tax (2)		1		—		9		18
	Available-for-sale securities, net of tax (3)		—		(11)		—		(6)
	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)		(6)		(12)
	Pension and other post-retirement benefit plans, net of tax		(2)		(3)		(6)		(13)
Other comprehensive income (loss), net of taxes			98		156		(72)		199
Comprehensive income			200		1,259		125		857
	Less: comprehensive income attributable to non-controlling interest		5		6		20		12
Comprehensive income attributable to DXC common stockholders			$	195	$	1,253	$	105	$	845


	As of
(in millions, except per-share and share amounts)	December 31, 2021		March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	2,919	$	2,968
Receivables and contract assets, net of allowance of $78 and $91	3,670		4,156
Prepaid expenses	600		567
Other current assets	314		517
Total current assets	7,503		8,208
Intangible assets, net of accumulated amortization of $4,997 and $4,422	3,575		4,043
Operating right-of-use assets, net	1,122		1,366
Goodwill	629		641
Deferred income taxes, net	259		289
Property and equipment, net of accumulated depreciation of $4,062 and $4,121	2,555		2,946
Other assets	4,310		4,545
Total Assets	$	19,953	$	22,038
LIABILITIES and EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$	706	$	1,167
Accounts payable	759		914
Accrued payroll and related costs	563		698
Current operating lease liabilities	386		418
Accrued expenses and other current liabilities	3,111		3,476
Deferred revenue and advance contract payments	1,001		1,079
Income taxes payable	202		398
Total current liabilities	6,728		8,150
Long-term debt, net of current maturities	4,236		4,345
Non-current deferred revenue	882		622
Non-current operating lease liabilities	805		1,038
Non-current income tax liabilities and deferred tax liabilities	779		854
Other long-term liabilities	1,436		1,721
Total Liabilities	14,866		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 December 31, 2021 and March 31, 2021	—		—
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 248,356,181 issued as of December 31, 2021 and 257,052,533 issued as of March 31, 2021	3		3
Additional paid-in capital	10,383		10,761
Accumulated deficit	(5,058)		(5,331)
Accumulated other comprehensive loss	(385)		(302)
Treasury stock, at cost, 2,807,321 and 2,458,027 shares as of December 31, 2021 and March 31, 2021	(171)		(158)
Total DXC stockholders’ equity	4,772		4,973
Non-controlling interest in subsidiaries	315		335
Total Equity	5,087		5,308
Total Liabilities and Equity	$	19,953	$	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 December 31, 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 September 30, 2021	255,003	$	3	$	10,646	$	(5,225)	$	(482)	$	(170)	$	4,772	$	311	$	5,083
Net income						98						98		4		102
Other comprehensive income								97				97		1		98
Share-based compensation expense				23								23				23
Acquisition of treasury stock										(1)		(1)				(1)
Share repurchase program	(6,756)			(286)		73						(213)				(213)
Stock option exercises and other common stock transactions	109											—				—
Non-controlling interest distributions and other						(4)						(4)		(1)		(5)

Balance at December 31, 2021	248,356	$	3	$	10,383	$	(5,058)	$	(385)	$	(171)	$	4,772	$	315	$	5,087


	Three Months Ended December 31, 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 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


	Nine Months Ended December 31, 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						188						188		9		197
Other comprehensive loss								(83)				(83)		11		(72)
Share-based compensation expense				63								63				63
Acquisition of treasury stock										(13)		(13)				(13)
Share repurchase program	(10,618)			(449)		86						(363)				(363)
Stock option exercises and other common stock transactions	1,921			11								11				11
Non-controlling interest distributions and other				(3)		(1)						(4)		(40)		(44)

Balance at December 31, 2021	248,356	$	3	$	10,383	$	(5,058)	$	(385)	$	(171)	$	4,772	$	315	$	5,087


	Nine Months Ended December 31, 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 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


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


(in millions)	As of December 31, 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	$	—


		As of
(in millions)	Balance Sheet Line Item	December 31, 2021		March 31, 2021
ROU operating lease assets	Operating right-of-use assets, net	$	1,122	$	1,366

Operating lease liabilities	Current operating lease liabilities	$	386	$	418
Operating lease liabilities	Non-current operating lease liabilities	805		1,038
Total operating lease liabilities		$	1,191	$	1,456


	Fiscal Year
(in millions)	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
Operating lease payments	$	112	$	380	$	282	$	205	$	118	$	198	$	1,295
Less: imputed interest													(104)
Total operating lease liabilities													$	1,191


	Fiscal Year
(in millions)	Remainder of 2022		2023		2024		2025		2026		Thereafter		Total
Finance lease payments	$	87	$	292	$	180	$	92	$	38	$	8	$	697
Less: imputed interest													(26)
Total finance lease liabilities													$	671


	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


Fiscal Year	(in millions)
Remainder of 2022	$	248
2023	$	774
2024	$	674
2025	$	559
2026	$	515


	Fair Value Hierarchy
(in millions)	December 31, 2021
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	14	$	14	$	—	$	—
Time deposits(1)	63		63		—		—
Other securities(2)	55		—		53		2
Total assets	$	132	$	77	$	53	$	2

Liabilities:
Contingent consideration	$	13	$	—	$	—	$	13
Total liabilities	$	13	$	—	$	—	$	13


		For the Three Months Ended				For the Nine Months Ended
(in millions)	Statement of Operations Line Item	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020

Foreign currency forward contracts	Other expense (income), net	$	(9)	$	16	$	39	$	74


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

Foreign currency forward contracts	Other current assets	$	17	$	9


Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	10	$	3


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

Foreign currency forward contracts		Accrued expenses and other current liabilities	$	1	$	5


Derivatives not designated for hedge accounting:
Foreign currency forward contracts		Accrued expenses and other current liabilities	$	5	$	3


	As of December 31, 2021
(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	$	4,129	$	3,013	$	1,116
Customer related intangible assets	4,173		1,910		2,263
Other intangible assets	270		74		196
Total intangible assets	$	8,572	$	4,997	$	3,575


(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	(12)		—		(12)


Goodwill, gross	5,119		5,066		10,185
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of December 31, 2021, net	$	629	$	—	$	629


(in millions)	Interest Rates	Fiscal Year Maturities	December 31, 2021		March 31, 2021
Short-term debt and current maturities of long-term debt
Commercial paper(1)	(0.38)% - (0.15)%	2022 - 2023	$	222	$	213
Current maturities of long-term debt	Various	2022 - 2023	180		556
Current maturities of finance lease liabilities	0.25% - 12.60%	2022 - 2023	304		398
Short-term debt and current maturities of long-term debt			$	706	$	1,167

Long-term debt, net of current maturities
€750 million Senior notes	0.45%	2028	$	847	$	—
€600 million Senior notes	0.95%	2032	676		—
$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	736		760
$500 million Senior notes	4.75%	2028	—		506
$234 million Senior notes	7.45%	2030	—		268


Finance lease liabilities	0.25% - 12.60%	2022 - 2027	671		894
Borrowings for assets acquired under long-term financing	0.00% - 6.78%	2022 - 2027	385		672
Mandatorily redeemable preferred stock outstanding	6.00%	2023	63		63
Other borrowings	Various	2022 - 2023	4		5
Long-term debt			4,720		5,299
Less: current maturities			484		954
Long-term debt, net of current maturities			$	4,236	$	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 December 31, 2021
Fiscal 2022 Plan
Workforce Reductions	$	—	$	181	$	2	$	(91)	$	(3)	$	89
Facilities Costs	—		65		(42)		(20)		2		5
	—		246		(40)		(111)		(1)		94

Fiscal 2021 Plan
Workforce Reductions	180		—		—		(127)		(2)		51
Facilities Costs	3		6		(6)		(1)		(1)		1
	183		6		(6)		(128)		(3)		52

Fiscal 2020 Plan
Workforce Reductions	27		(1)		—		(14)		(1)		11
Facilities Costs	—		—		—		—		—		—
	27		(1)		—		(14)		(1)		11

Other Prior Year Plans
Workforce Reductions	19		1		—		(15)		1		6
Facilities Costs	6		—		—		(4)		—		2
	25		1		—		(19)		1		8

Acquired Liabilities
Workforce Reductions	34		(4)		—		(6)		(2)		22
Facilities Costs	1		—		—		(1)		—		—
	35		(4)		—		(7)		(2)		22
Total	$	270	$	248	$	(46)	$	(279)	$	(6)	$	187


	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
3rd Quarter	6,755,555	$	31.48	213
Total	10,617,767	$	34.15	$	363


(in millions)	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Post-retirement Benefit Plans		Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2021	$	(554)	$	(1)	$	253	$	(302)
Other comprehensive income before reclassifications	—		12		—		12
Amounts reclassified from accumulated other comprehensive loss(1)	(86)		(3)		(6)		(95)
Balance at December 31, 2021	$	(640)	$	8	$	247	$	(385)


	As of December 31, 2021
	Reserved for Issuance	Available for Future Grants
DXC Employee Equity Plan	51,200,000	31,106,625
DXC Director Equity Plan	745,000	361,651
DXC Share Purchase Plan	250,000	133,689
Total	52,195,000	31,601,965


	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	(450,347)	$	24.12		$	6
Canceled/Forfeited	—	$	—
Expired	(52,413)	$	36.33
Outstanding as of December 31, 2021	1,172,820	$	32.59	3.16	$	5

Vested and exercisable as of December 31, 2021	1,172,820	$	32.59	3.16	$	5


	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	2,922,936	$	51.19	74,300	$	35.18

Settled	(1,848,242)	$	33.47	(102,238)	$	21.43
Canceled/Forfeited	(1,366,605)	$	36.32	—	$	—
Outstanding as of December 31, 2021	8,034,309	$	35.83	156,722	$	36.18


(in millions)	GBS		GIS		Total Reportable Segments		All Other		Total
Three Months Ended December 31, 2021
Revenues	$	1,946	$	2,143	$	4,089	$	—	$	4,089
Segment profit	$	315	$	102	$	417	$	(62)	$	355
Depreciation and amortization(1)	$	39	$	252	$	291	$	27	$	318

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


Fiscal year	Minimum Purchase Commitment
(in millions)
Remainder of 2022	$	285
2023	968
2024	477
2025	258
2026	259
Thereafter	15
Total	$	2,262


(in millions)	Remainder of Fiscal 2022		Fiscal 2023		Fiscal 2024 and Thereafter		Total
Surety bonds	$	5	$	60	$	13	$	78
Letters of credit	18		80		585		683
Stand-by letters of credit	10		72		23		105
Total	$	33	$	212	$	621	$	866


	Three Months Ended
(in millions)	Constant Currency December 31, 2021		December 31, 2020		Change		Percentage Change
GBS	$	1,971	$	1,921	$	50	2.6	%
GIS	2,163		2,367		(204)		(8.6)	%
Total	$	4,134	$	4,288	$	(154)	(3.6)	%


	Three Months Ended
	Amount				Percentage of Revenues				Percentage Point Change
(in millions)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Costs of services (excludes depreciation and amortization and restructuring costs)	$	3,179	$	3,333	77.8	%	77.8	%	—
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	340		517		8.3		12.1		(3.8)
Depreciation and amortization	424		475		10.4		11.1		(0.7)
Restructuring costs	36		104		0.9		2.4		(1.5)
Interest expense	38		82		0.9		1.9		(1.0)
Interest income	(15)		(28)		(0.4)		(0.7)		0.3
Debt extinguishment costs	2		—		—		—		—
Loss (gain) on disposition of businesses	4		(2,046)		0.1		(47.7)		47.8
Other income, net	(85)		(127)		(2.1)		(3.0)		0.9
Total Costs and Expenses	$	3,923	$	2,310	95.9	%	53.9	%	42.0


	Three Months Ended December 31, 2021
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization of Acquired Intangible Assets		Gains and Losses on Dispositions		Debt Extinguishment Costs		Pension and OPEB Actuarial and Settlement Losses		Tax Adjustment		Non-GAAP Results
Income before income taxes	$	166		$	36	$	11	$	106	$	4	$	2	$	7	$	—	$	332
Income tax expense	64			4		1		13		—		—		1		10		93
Net income	102			32		10		93		4		2		6		(10)		239
Less: net income attributable to non-controlling interest, net of tax	4			—		—		—		—		—		—		—		4
Net income attributable to DXC common stockholders	$	98		$	32	$	10	$	93	$	4	$	2	$	6	$	(10)	$	235

Effective Tax Rate	38.6		%															28.0		%

Basic EPS	$	0.39		$	0.13	$	0.04	$	0.37	$	0.02	$	0.01	$	0.02	$	(0.04)	$	0.94
Diluted EPS	$	0.38		$	0.13	$	0.04	$	0.36	$	0.02	$	0.01	$	0.02	$	(0.04)	$	0.92

Weighted average common shares outstanding for:
Basic EPS	250.27			250.27		250.27		250.27		250.27		250.27		250.27		250.27		250.27
Diluted EPS	254.82			254.82		254.82		254.82		254.82		254.82		254.82		254.82		254.82


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
October 1, 2021 to October 31, 2021	—	$—	—	$1,637,691,401
November 1, 2021 to November 30, 2021	2,550,523	$31.95	2,550,523	$1,556,197,413
December 1, 2021 to December 31, 2021	4,205,032	$31.19	4,205,032	$1,425,052,423