Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

DXC Technology Reports Fourth Quarter and Fiscal 2020 Results


DXC Technology (NYSE: DXC) today reported results for the three and twelve months ended March 31, 2020.

"I am very proud of how our team at DXC has navigated this world crisis, with an industry leading 99% of our people enabled to work virtually from home," said Mike Salvino, president and CEO. "If COVID-19 taught us anything, it reinforces that what we do is incredibly relevant to today's market. Our people have done a phenomenal job taking care of themselves and their families, while helping our customers enable their employees to work from home, fix needed upgrades to their IT infrastructure estates, stand-up cloud environments, deal with sudden surges of demand, and innovate. I am pleased with where we ended FY20. We have taken steps to ensure a strong financial position and enhance our financial flexibility. We are making good progress with our transformation journey to deliver and build stronger relationships with our customers, optimize our costs to better serve our customers, and capture a unique market opportunity by cross-selling the services that we do every day for our customers. The actions we are taking set up a solid foundation for growth."

Financial Highlights - Fourth Quarter Fiscal 2020

Financial Highlights - Fiscal 2020

Global Business Services (GBS)

GBS revenue was $2,308 million in the quarter compared to $2,191 million for the prior year. GBS revenues increased 5.3% year-over-year, reflecting the contribution from the Luxoft acquisition which was closed in June 2019. GBS profit margin in the quarter was 9.7%, down from 20.4% in the prior year, reflecting the impact of the resolution of certain customer disputes, the profit impact of lower revenue in our traditional applications business, and higher cost-take out activities in the prior year. New business awards for GBS were $2,185 million in the fourth quarter.

Global Infrastructure Services (GIS)

GIS revenue was $2,507 million in the quarter compared to $3,089 million for the prior year. GIS revenues decreased 18.8% year-over-year. The GIS revenue reflects the run-off and termination of certain accounts,. GIS profit margin in the quarter was 7.7%, down from 14.1% in the prior year, primarily driven by the profit impact from lower revenue. New business awards for GIS were $2,183 million in the fourth quarter.

Returning Capital to Shareholders; Suspension of Dividend

During the fourth quarter, DXC Technology returned $53 million to shareholders in the form of common stock dividends. To enhance the company's financial flexibility under current uncertain market conditions the company has elected to suspend payment of a quarterly dividend. This decision will be reevaluated by the Board of DXC Technology as market conditions stabilize.

Earnings Conference Call and Webcast

DXC Technology senior management will host a conference call and webcast today at 4:45 p.m. EDT. The dial-in number for domestic callers is (800) 368-1029. Callers who reside outside of the United States should dial +1 (334) 777-6981. The passcode for all participants is 145605. The webcast audio and any presentation slides will be available on DXC Technology's Investor Relations website.

A replay of the conference call will be available from approximately two hours after the conclusion of the call until June 4, 2020. The replay passcode is 7889820.

Non-GAAP Measures

In an effort to provide investors with supplemental financial information, in addition to the preliminary and unaudited financial information presented on a GAAP basis, we have also disclosed in this press release preliminary non-GAAP information including: constant currency, earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted EBIT margin, adjusted free cash flow, and non-GAAP results including non-GAAP income from continuing operations before taxes, non-GAAP income from continuing operations and non-GAAP EPS from continuing operations.

About DXC Technology

DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world's largest companies trust DXC to deploy our enterprise technology stack to deliver new levels of performance, competitiveness and customer experiences. Learn more about the DXC story and our focus on people, customers and operational execution at www.dxc.technology.

All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements." These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the recent outbreak of the novel coronavirus ("COVID-19") pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled "Risk Factors" in DXC's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2019, September 30, 2019, December 31, 2019 and any updating information in subsequent SEC filings, including DXC's upcoming Form 10-K for the fiscal year ended March 31, 2020. No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events except as required by law.

Consolidated Statements of Operations

(preliminary and unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

(in millions, except per-share amounts)

 

March 31, 2020

 

March 31, 2019

 

March 31, 2020

 

March 31, 2019

 

 

 

 

 

 

 

 

 

Revenues

 

$

4,815

 

 

$

5,280

 

 

$

19,577

 

 

$

20,753

 

 

 

 

 

 

 

 

 

 

Costs of services

 

3,773

 

 

3,836

 

 

14,901

 

 

14,946

 

Selling, general and administrative

 

536

 

 

459

 

 

2,050

 

 

1,959

 

Depreciation and amortization

 

526

 

 

505

 

 

1,942

 

 

1,968

 

Goodwill impairment losses

 

3,854

 

 

?

 

 

6,794

 

 

?

 

Restructuring costs

 

4

 

 

47

 

 

252

 

 

465

 

Interest expense

 

95

 

 

85

 

 

383

 

 

334

 

Interest income

 

(35

)

 

(36

)

 

(165

)

 

(128

)

Gain on arbitration award

 

?

 

 

?

 

 

(632

)

 

?

 

Other (income) expense, net

 

(376

)

 

30

 

 

(720

)

 

(306

)

Total costs and expenses

 

8,377

 

 

4,926

 

 

24,805

 

 

19,238

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations, before taxes

 

(3,562

)

 

354

 

 

(5,228

)

 

1,515

 

Income tax (benefit) expense

 

(61

)

 

83

 

 

130

 

 

288

 

(Loss) income from continuing operations

 

(3,501

)

 

271

 

 

(5,358

)

 

1,227

 

Income from discontinued operations, net of taxes

 

?

 

 

?

 

 

?

 

 

35

 

Net (loss) income

 

(3,501

)

 

271

 

 

(5,358

)

 

1,262

 

Less: net (loss) income attributable to non-controlling interest, net of tax

 

(6

)

 

(3

)

 

11

 

 

5

 

Net (loss) income attributable to DXC common stockholders

 

$

(3,495

)

 

$

274

 

 

$

(5,369

)

 

$

1,257

 

 

 

 

 

 

 

 

 

 

(Loss) income per common share:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(13.79

)

 

$

1.02

 

 

$

(20.76

)

 

$

4.40

 

Discontinued operations

 

?

 

 

?

 

 

?

 

 

0.13

 

 

 

$

(13.79

)

 

$

1.02

 

 

$

(20.76

)

 

$

4.53

 

Diluted:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(13.79

)

 

$

1.01

 

 

$

(20.76

)

 

$

4.35

 

Discontinued operations

 

?

 

 

?

 

 

?

 

 

0.12

 

 

 

$

(13.79

)

 

$

1.01

 

 

$

(20.76

)

 

$

4.47

 

 

 

 

 

 

 

 

 

 

Cash dividend per common share

 

$

0.21

 

 

$

0.19

 

 

$

0.84

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for:

 

 

 

 

 

 

 

 

Basic EPS

 

253.51

 

 

268.59

 

 

258.57

 

 

277.54

 

Diluted EPS

 

253.51

 

 

270.82

 

 

258.57

 

 

281.43

 

Selected Consolidated Balance Sheet Data

(preliminary and unaudited)

 

 

 

As of

(in millions)

 

March 31, 2020

 

March 31, 2019

Assets

 

 

 

 

Cash and cash equivalents

 

$

3,679

 

 

$

2,899

 

Receivables, net

 

4,392

 

 

5,181

 

Prepaid expenses

 

646

 

 

627

 

Other current assets

 

270

 

 

359

 

Total current assets

 

8,987

 

 

9,066

 

 

 

 

 

 

Intangible assets, net

 

5,731

 

 

5,939

 

Operating right-of-use assets, net

 

1,428

 

 

?

 

Goodwill

 

2,017

 

 

7,606

 

Deferred income taxes, net

 

265

 

 

355

 

Property and equipment, net

 

3,547

 

 

3,179

 

Other assets

 

4,031

 

 

3,429

 

Total Assets

 

$

26,006

 

 

$

29,574

 

 

 

 

 

 

Liabilities

 

 

 

 

Short-term debt and current maturities of long-term debt

 

$

1,276

 

 

$

1,942

 

Accounts payable

 

1,598

 

 

1,666

 

Accrued payroll and related costs

 

630

 

 

652

 

Current operating lease liabilities

 

482

 

 

?

 

Accrued expenses and other current liabilities

 

2,801

 

 

3,355

 

Deferred revenue and advance contract payments

 

1,021

 

 

1,630

 

Income taxes payable

 

87

 

 

208

 

Total current liabilities

 

7,895

 

 

9,453

 

 

 

 

 

 

Long-term debt, net of current maturities

 

8,672

 

 

5,470

 

Non-current deferred revenue

 

735

 

 

256

 

Non-current operating lease liabilities

 

1,063

 

 

?

 

Non-current pension obligations

 

761

 

 

790

 

Non-current income tax liabilities and deferred tax liabilities

 

1,157

 

 

1,184

 

Other long-term liabilities

 

594

 

 

696

 

Total Liabilities

 

20,877

 

 

17,849

 

 

 

 

 

 

Total Equity

 

5,129

 

 

11,725

 

 

 

 

 

 

Total Liabilities and Equity

 

$

26,006

 

 

$

29,574

 

Consolidated Statements of Cash Flows

(preliminary and unaudited)

 

 

 

Twelve Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2019

Cash flows from operating activities:

 

 

 

 

Net (loss) income

 

$

(5,358

)

 

$

1,262

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

1,960

 

 

2,023

 

Goodwill impairment losses

 

6,794

 

 

?

 

Operating right-of-use expense

 

698

 

 

?

 

Pension & other post-employment benefits, actuarial & settlement (gains)
losses

 

(244

)

 

143

 

Share-based compensation

 

68

 

 

74

 

Deferred taxes

 

(56

)

 

97

 

Loss (gain) on dispositions

 

1

 

 

(163

)

Provision for losses on accounts receivable

 

3

 

 

(10

)

Unrealized foreign currency exchange losses

 

24

 

 

30

 

Impairment losses and contract write-offs

 

30

 

 

?

 

Amortization of debt issuance costs and (premium) discount

 

(4

)

 

(10

)

Cash surrender value in excess of premiums paid

 

(12

)

 

(11

)

Other non-cash charges, net

 

?

 

 

11

 

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

 

 

 

 

Decrease (increase) in receivables

 

269

 

 

(947

)

Increase in prepaid expenses and other current assets

 

(229

)

 

(632

)

Decrease in accounts payable and accruals

 

(565

)

 

(52

)

Decrease in income taxes payable and income tax liability

 

(197

)

 

(107

)

Decrease in operating lease liability

 

(698

)

 

?

 

(Decrease) increase in advance contract payments and deferred revenue

 

(146

)

 

(74

)

Other operating activities, net

 

12

 

 

149

 

Net cash provided by operating activities

 

2,350

 

 

1,783

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(350

)

 

(297

)

Payments for transition and transformation contract costs

 

(281

)

 

(394

)

Software purchased and developed

 

(235

)

 

(261

)

Payments for acquisitions, net of cash acquired

 

(1,997

)

 

(365

)

Business dispositions

 

?

 

 

(65

)

Cash collections related to deferred purchase price receivable

 

671

 

 

1,084

 

Proceeds from sale of assets

 

73

 

 

357

 

Short-term investing

 

(75

)

 

?

 

Proceeds from short-term investing

 

38

 

 

?

 

Other investing activities, net

 

19

 

 

10

 

Net cash (used in) provided by investing activities

 

(2,137

)

 

69

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Borrowings of commercial paper

 

4,939

 

 

2,747

 

Repayments of commercial paper

 

(5,076

)

 

(2,840

)

Borrowings under lines of credit

 

1,500

 

 

?

 

Borrowings on long-term debt, net of discount

 

2,198

 

 

1,646

 

Principal payments on long-term debt

 

(1,039

)

 

(2,625

)

Payments on finance leases and borrowings for asset financing

 

(865

)

 

(944

)

Borrowings for USPS spin transaction

 

?

 

 

1,114

 

Proceeds from bond issuance

 

?

 

 

753

 

Proceeds from stock options and other common stock transactions

 

11

 

 

47

 

Taxes paid related to net share settlements of share-based compensation awards

 

(16

)

 

(54

)

Repurchase of common stock and advance payment for accelerated share repurchase

 

(736

)

 

(1,344

)

Dividend payments

 

(214

)

 

(210

)

Other financing activities, net

 

(45

)

 

47

 

Net cash provided by (used in) financing activities

 

657

 

 

(1,663

)

Effect of exchange rate changes on cash and cash equivalents

 

(90

)

 

(19

)

Net increase in cash and cash equivalents

 

780

 

 

170

 

Cash and cash equivalents at beginning of year

 

2,899

 

 

2,729

 

Cash and cash equivalents at end of year

 

$

3,679

 

 

$

2,899

 

 

Segment Results

The following tables summarize segment revenue for the three and twelve months ended March 31, 2020 as compared to the three and twelve months ended March 31, 2019:

Segment Revenue

 

 

Three Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2019

 

% Change

 

% Change in
Constant
Currency

GBS

 

$

2,308

 

 

$

2,191

 

 

5.3

%

 

7.3

%

GIS

 

2,507

 

 

3,089

 

 

(18.8

)%

 

(16.9

)%

Total Revenues

 

$

4,815

 

 

$

5,280

 

 

(8.8

)%

 

(6.9

)%

Segment Revenue

 

 

Twelve Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2019

 

% Change

 

% Change in
Constant
Currency

GBS

 

$

9,111

 

 

$

8,684

 

 

4.9

%

 

7.0

%

GIS

 

10,466

 

 

12,069

 

 

(13.3

)%

 

(11.1

)%

Total Revenues

 

$

19,577

 

 

$

20,753

 

 

(5.7

)%

 

(3.5

)%

Segment Profit

We define segment profit as segment revenue less costs of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on our 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 include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation and integration-related costs, goodwill impairment and amortization of acquired intangible assets.

Segment Profit

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2019

 

March 31, 2020

 

March 31, 2019

GBS profit

 

$

223

 

 

$

447

 

 

$

1,301

 

 

$

1,645

 

GIS profit

 

192

 

 

436

 

 

1,007

 

 

1,911

 

All other loss

 

(63

)

 

(56

)

 

(247

)

 

(287

)

Interest income

 

35

 

 

36

 

 

165

 

 

128

 

Interest expense

 

(95

)

 

(85

)

 

(383

)

 

(334

)

Restructuring costs

 

(4

)

 

(47

)

 

(252

)

 

(465

)

Transaction, separation and integration-related costs

 

(92

)

 

(96

)

 

(318

)

 

(401

)

Amortization of acquired intangibles

 

(148

)

 

(138

)

 

(583

)

 

(539

)

Goodwill impairment losses

 

(3,854

)

 

?

 

 

(6,794

)

 

?

 

Gain on arbitration award

 

?

 

 

?

 

 

632

 

 

?

 

Pension and OPEB actuarial and settlement gains (losses)

 

244

 

 

(143

)

 

244

 

 

(143

)

(Loss) income from continuing operations before taxes

 

$

(3,562

)

 

$

354

 

 

$

(5,228

)

 

$

1,515

 

 

 

 

 

 

 

 

 

 

Segment profit margins

 

 

 

 

 

 

 

 

GBS

 

9.7

%

 

20.4

%

 

14.3

%

 

18.9

%

GIS

 

7.7

%

 

14.1

%

 

9.6

%

 

15.8

%

Non-GAAP Financial Measures

We present non-GAAP financial measures of performance which are derived from the statements of operations of DXC. These non-GAAP financial measures include earnings before interest and taxes ("EBIT"), EBIT margin, adjusted EBIT, adjusted EBIT margin, non-GAAP income before income taxes, non-GAAP net income, non-GAAP EPS and adjusted free cash flow.

We present these non-GAAP financial measures to provide investors with meaningful supplemental financial information, in addition to the financial information presented on a GAAP basis. Non-GAAP financial measures exclude certain items from GAAP results which DXC management believes are not indicative of core operating performance. DXC management believes these non-GAAP measures allow investors to better understand the financial performance of DXC exclusive of the impacts of corporate-wide strategic decisions. DXC management believes that adjusting for these items provides investors with additional measures to evaluate the financial performance of our core business operations on a comparable basis from period to period. DXC management believes the non-GAAP measures provided are also considered important measures by financial analysts covering DXC, as equity research analysts continue to publish estimates and research notes based on our non-GAAP commentary, including our guidance around non-GAAP EPS targets.

Non-GAAP financial measures exclude certain items from GAAP results which DXC management believes are not indicative of operating performance such as the amortization of acquired intangible assets and transaction, separation and integration-related costs.

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

There are limitations to the use of the non-GAAP financial measures presented in this report. One of the limitations is that they do not reflect complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes between companies.

Reconciliation of Non-GAAP Financial Measures

Non-GAAP adjustments to our performance measures include:

EBIT and Adjusted EBIT

Reconciliations of net income to adjusted EBIT are as follows:

 

 

Three Months Ended

 

Twelve Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2019

 

March 31, 2020

 

March 31, 2019

Net (loss) income

 

$

(3,501

)

 

$

271

 

 

$

(5,358

)

 

$

1,262

 

Income from discontinued operations, net of taxes

 

?

 

 

?

 

 

?

 

 

(35

)

Income tax (benefit) expense

 

(61

)

 

83

 

 

130

 

 

288

 

Interest income

 

(35

)

 

(36

)

 

(165

)

 

(128

)

Interest expense

 

95

 

 

85

 

 

383

 

 

334

 

EBIT

 

(3,502

)

 

403

 

 

(5,010

)

 

1,721

 

Restructuring costs

 

4

 

 

47

 

 

252

 

 

465

 

Transaction, separation and integration-related costs

 

92

 

 

96

 

 

318

 

 

401

 

Amortization of acquired intangible assets

 

148

 

 

138

 

 

583

 

 

539

 

Goodwill impairment losses

 

3,854

 

 

?

 

 

6,794

 

 

?

 

Gain on arbitration award

 

?

 

 

?

 

 

(632

)

 

?

 

Pension and OPEB actuarial and settlement (gains) losses

 

(244

)

 

143

 

 

(244

)

 

143

 

Adjusted EBIT

 

$

352

 

 

$

827

 

 

$

2,061

 

 

$

3,269

 

 

 

 

 

 

 

 

 

 

Adjusted EBIT margin

 

7.3

%

 

15.7

%

 

10.5

%

 

15.8

%

EBIT margin

 

(72.7

)%

 

7.6

%

 

(25.6

)%

 

8.3

%

Adjusted Free Cash Flow

A reconciliation of net cash provided by operating activities to adjusted free cash flow is as follows:

 

 

Three Months Ended

 

Twelve Months Ended

(in millions)

 

March 31, 2020

 

March 31, 2020

Net cash provided by operating activities

 

$

288

 

 

$

2,350

 

Net cash used in investing activities (1)

 

(53

)

 

(2,100

)

Acquisitions, net of cash acquired

 

?

 

 

1,997

 

Payments on capital leases and other long-term asset financings

 

(219

)

 

(865

)

Payments on transaction, separation and integration-related costs

 

54

 

 

257

 

Payments on restructuring costs

 

61

 

 

334

 

Gain on arbitration award

 

?

 

 

(632

)

Adjusted free cash flow

 

$

131

 

 

$

1,341

 

__________________  

(1) Excludes short-term investments.

Non-GAAP Results

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

 

 

Three Months Ended March 31, 2020

(in millions, except per-share amounts)

 

As
Reported

 

Restructuring
Costs

 

Transaction,
Separation and
Integration-
Related Costs

 

Amortization of
Acquired
Intangible
Assets

 

Goodwill
Impairment
Losses

 

Pension and
OPEB
Actuarial and
Settlement
Gains

 

Tax
Adjustment

 

Non-GAAP
Results

Costs of services (excludes depreciation and
amortization and restructuring costs)

 

$

3,773

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

3,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (excludes
depreciation and amortization and
restructuring costs)

 

536

 

 

?

 

 

(92

)

 

?

 

 

?

 

 

?

 

 

?

 

 

444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations,
before taxes

 

$

(3,562

)

 

$

4

 

 

$

92

 

 

$

148

 

 

$

3,854

 

 

$

(244

)

 

$

?

 

 

$

292

 

Income tax (benefit) expense

 

(61

)

 

2

 

 

20

 

 

34

 

 

42

 

 

(51

)

 

6

 

 

(8

)

Net (loss) income

 

$

(3,501

)

 

$

2

 

 

$

72

 

 

$

114

 

 

$

3,812

 

 

$

(193

)

 

$

(6

)

 

$

300

 

Less: net loss attributable to noncontrolling
interest, net of tax

 

(6

)

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

(6

)

Net (loss) income attributable to DXC
common stockholders

 

$

(3,495

)

 

$

2

 

 

$

72

 

 

$

114

 

 

$

3,812

 

 

$

(193

)

 

$

(6

)

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

(13.79

)

 

$

0.01

 

 

$

0.28

 

 

$

0.45

 

 

$

15.04

 

 

$

(0.76

)

 

$

(0.02

)

 

$

1.21

 

Diluted EPS

 

$

(13.79

)

 

$

0.01

 

 

$

0.28

 

 

$

0.45

 

 

$

15.00

 

 

$

(0.76

)

 

$

(0.02

)

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares
outstanding for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

253.51

 

 

253.51

 

 

253.51

 

 

253.51

 

 

253.51

 

 

253.51

 

 

253.51

 

 

253.51

 

Diluted EPS

 

253.51

 

 

254.14

 

 

254.14

 

 

254.14

 

 

254.14

 

 

254.14

 

 

254.14

 

 

254.14

 

 

 

Twelve Months Ended March 31, 2020

(in millions, except per-share amounts)

 

As
Reported

 

Restructuring
Costs

 

Transaction,
Separation and
Integration
Related Costs

 

Amortization of
Acquired
Intangible
Assets

 

Goodwill
Impairment
Losses

 

Gain on
Arbitration
Award

 

Pension
and OPEB
Actuarial
and
Settlement
Gains

 

Tax
Adjustment

 

Non-GAAP
Results

Costs of services (excludes
depreciation and amortization and
restructuring costs)

 

$

14,901

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

14,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative
(excludes depreciation and
amortization and restructuring costs)

 

2,050

 

 

?

 

 

(318

)

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

1,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing
operations, before taxes

 

$

(5,228

)

 

$

252

 

 

$

318

 

 

$

583

 

 

$

6,794

 

 

$

(632

)

 

$

(244

)

 

$

?

 

 

$

1,843

 

Income tax expense (benefit)

 

130

 

 

44

 

 

63

 

 

133

 

 

95

 

 

?

 

 

(51

)

 

(33

)

 

381

 

Net (loss) income

 

$

(5,358

)

 

$

208

 

 

$

255

 

 

$

450

 

 

$

6,699

 

 

$

(632

)

 

$

(193

)

 

$

33

 

 

$

1,462

 

Less: net income attributable to
noncontrolling interest, net of tax

 

11

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

11

 

Net (loss) income attributable to
DXC common stockholders

 

$

(5,369

)

 

$

208

 

 

$

255

 

 

$

450

 

 

$

6,699

 

 

$

(632

)

 

$

(193

)

 

$

33

 

 

$

1,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

(2.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

(20.76

)

 

$

0.80

 

 

$

0.99

 

 

$

1.74

 

 

$

25.91

 

 

$

(2.44

)

 

$

(0.75

)

 

$

0.13

 

 

$

5.61

 

Diluted EPS

 

$

(20.76

)

 

$

0.80

 

 

$

0.98

 

 

$

1.73

 

 

$

25.78

 

 

$

(2.43

)

 

$

(0.74

)

 

$

0.13

 

 

$

5.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common
shares outstanding for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

 

258.57

 

Diluted EPS

 

258.57

 

 

259.81

 

 

259.81

 

 

259.81

 

 

259.81

 

 

259.81

 

 

259.81

 

 

259.81

 

 

259.81

 

 

 

Three Months Ended March 31, 2019

(in millions, except per-share amounts)

 

As Reported

 

Restructuring
Costs

 

Transaction,
Separation and
Integration-
Related Costs

 

Amortization of
Acquired
Intangible Assets

 

Pension and
OPEB Actuarial
and Settlement
Losses

 

Non-GAAP
Results

Costs of services (excludes depreciation and amortization and
restructuring costs)

 

$

3,836

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

3,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (excludes depreciation and
amortization and restructuring costs)

 

459

 

 

?

 

 

(96

)

 

?

 

 

?

 

 

363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, before taxes

 

$

354

 

 

$

47

 

 

$

96

 

 

$

138

 

 

$

143

 

 

$

778

 

Income tax expense

 

83

 

 

12

 

 

30

 

 

37

 

 

27

 

 

189

 

Income from continuing operations

 

$

271

 

 

$

35

 

 

$

66

 

 

$

101

 

 

$

116

 

 

$

589

 

Income from discontinued operations, net of taxes

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

Net income

 

$

271

 

 

$

35

 

 

$

66

 

 

$

101

 

 

$

116

 

 

$

589

 

Less: net loss attributable to noncontrolling interest, net of tax

 

(3

)

 

?

 

 

?

 

 

?

 

 

?

 

 

(3

)

Net income attributable to DXC common stockholders

 

$

274

 

 

$

35

 

 

$

66

 

 

$

101

 

 

$

116

 

 

$

592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

23.4

%

 

 

 

 

 

 

 

 

 

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

1.02

 

 

$

0.13

 

 

$

0.25

 

 

$

0.38

 

 

$

0.43

 

 

$

2.20

 

Diluted EPS

 

$

1.01

 

 

$

0.13

 

 

$

0.24

 

 

$

0.37

 

 

$

0.43

 

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for:

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

268.59

 

 

268.59

 

 

268.59

 

 

268.59

 

 

268.59

 

 

268.59

 

Diluted EPS

 

270.82

 

 

270.82

 

 

270.82

 

 

270.82

 

 

270.82

 

 

270.82

 

 

 

Twelve Months Ended March 31, 2019

(in millions, except per-share amounts)

 

As
Reported

 

Restructuring
Costs

 

Transaction,
Separation
and
Integration-
Related Costs

 

Amortization of
Acquired
Intangible Assets

 

Pension and
OPEB
Actuarial and
Settlement
Losses

 

Tax
Adjustment

 

Non-GAAP
Results

Costs of services (excludes depreciation and amortization
and restructuring costs)

 

$

14,946

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

14,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (excludes depreciation
and amortization and restructuring costs)

 

1,959

 

 

?

 

 

(401

)

 

?

 

 

?

 

 

?

 

 

1,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, before taxes

 

$

1,515

 

 

$

465

 

 

$

401

 

 

$

539

 

 

$

143

 

 

$

?

 

 

$

3,063

 

Income tax expense

 

288

 

 

112

 

 

102

 

 

138

 

 

27

 

 

44

 

 

711

 

Income from continuing operations

 

$

1,227

 

 

$

353

 

 

$

299

 

 

$

401

 

 

$

116

 

 

$

(44

)

 

$

2,352

 

Income from discontinued operations, net of taxes

 

35

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

35

 

Net income

 

$

1,262

 

 

$

353

 

 

$

299

 

 

$

401

 

 

$

116

 

 

$

(44

)

 

$

2,387

 

Less: net income attributable to noncontrolling interest,
net of tax

 

5

 

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

5

 

Net income attributable to DXC common stockholders

 

$

1,257

 

 

$

353

 

 

$

299

 

 

$

401

 

 

$

116

 

 

$

(44

)

 

$

2,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

4.40

 

 

$

1.27

 

 

$

1.08

 

 

$

1.44

 

 

$

0.42

 

 

$

(0.16

)

 

$

8.46

 

Diluted EPS

 

$

4.35

 

 

$

1.25

 

 

$

1.06

 

 

$

1.42

 

 

$

0.41

 

 

$

(0.16

)

 

$

8.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

277.54

 

 

277.54

 

 

277.54

 

 

277.54

 

 

277.54

 

 

277.54

 

 

277.54

 

Diluted EPS

 

281.43

 

 

281.43

 

 

281.43

 

 

281.43

 

 

281.43

 

 

281.43

 

 

281.43

 

 


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