We generally provide services under time and materials contracts, unit-price contracts, fixed-price contracts, and multiple-element software sales. In many of our contracts, we bear the risk of cost overruns, completion delays, resource requirements, wage inflation and adverse movements in exchange rates in connection with these contracts. Certain, but not all, of these contracts provide for price adjustments for inflation or abnormal escalation. However, if one or more raw materials or components for our products (e.g., semiconductors) were to experience an isolated price increase without inflationary impacts on the broader economy, we may not be entitled to inflation protection under those contracts.

Additionally, inflation has risen worldwide and the United States has recently experienced historically high levels of inflation. If the inflation rate continues to increase, it can also push up the costs of labor and our employee compensation expenses. Moreover, the United States is experiencing a workforce shortage, which in turn, has created a hyper-competitive wage environment that may increase our operating costs. There is no assurance that our revenues will increase at the same rate to maintain the same level of profitability.

Inflation and government efforts to combat inflation, such as raising benchmark interest rate, could increase market volatility and have an adverse effect on the financial market and general economic conditions. In a time of uncertainty, our customers may reduce spending or have difficulty in budgeting for external IT services, delay procurement of products and services from us or delay their payment for products and services we have already provided, and we may have difficulty closing new deals in the event of an economic slowdown, all of which could adversely affect our profitability, results of operations and cash flow.

Our international operations are exposed to risks, including fluctuations in exchange rates, which may be beyond our control.

Our exposure to currencies other than the U.S. dollar may impact our results, as they are expressed in U.S. dollars. Currency variations also contribute to variations in sales of products and services in affected jurisdictions. For example, in the event that one or more European countries were to replace the Euro with another currency, sales in that country or in Europe generally may be adversely affected until stable exchange rates are established. While historically we have partially mitigated currency risk, including exposure to fluctuations in currency exchange rates by matching costs with revenues in a given currency, our exposure to fluctuations in other currencies against the U.S. dollar increases, as revenue in currencies other than the U.S. dollar ~~increases and as more of the services we provide are shifted to lower cost regions of the world.~~increases. Approximately ~~66%~~70% of revenues earned during fiscal ~~2021~~2023 were derived from sales denominated in currencies other than the U.S. dollar and are expected to continue to represent a significant portion of our revenues. Also, we believe that our ability to match revenues and expenses in a given currency will decrease as more work is performed at offshore ~~locations.~~locations that use a different currency from where we generate our revenue.

We may use forward and option contracts to protect against currency exchange rate risks. The effectiveness of these hedges will depend on our ability to accurately forecast future cash flows, which may be particularly difficult during periods of uncertain demand and highly volatile exchange rates. We may incur significant losses from our hedging activities due to factors such as demand volatility and currency variations. In addition, certain or all of our hedging activities may be ineffective, may expire and not be renewed or may not offset the adverse financial impact resulting from currency variations. Losses associated with hedging activities may also impact our revenues and to a lesser extent our cost of sales and financial condition.

The U.K. withdrew from the European Union on January 31, 2020 (“Brexit”). In connection with Brexit, the U.K. and the European Union agreed on the Trade and Cooperation Agreement (“TCA”) that governs the future trading relationship between the U.K. and the European Union in specified ~~areas. The TCA took effect on January 1,~~areas, which became effective in 2021. The U.K. is no longer in the European Union customs union and is outside of the European Union single market. The TCA addresses trade, economic arrangements, law enforcement, judicial cooperation and a governance, ~~framework including procedures for dispute resolution,~~ among other things. Because the agreement merely sets forth a framework in many respects and ~~will require~~requires complex additional bilateral negotiations between the U.K. and the European Union, ~~as both parties continue to work on the rules for implementation,~~ significant ~~political and economic~~ uncertainty remains about whether the terms of the relationship will differ materially from the terms before withdrawal. Uncertainty surrounding the effect of Brexit, as well as any potential impact on tax laws and trade policy in the U.S. and elsewhere may adversely impact our operations.

Our future business and financial performance could suffer due to a variety of international factors, including:

•ongoing instability or changes in a country’s or region’s economic or geopolitical and security conditions, including inflation, recession, interest rate fluctuations, and actual or anticipated military or political conflict, civil unrest, crime, political instability, human rights concerns, and terrorist activity;

•natural or man-made disasters, industrial accidents, public health issues, cybersecurity incidents, interruptions of service from utilities, transportation or telecommunications providers, or other catastrophic events;

•longer collection cycles and financial instability among customers;

•trade regulations and procedures and actions affecting production, pricing and marketing of products, including policies adopted by countries that may champion or otherwise favor domestic companies and technologies over foreign competitors;

•local labor conditions and regulations;

•managing our geographically dispersed workforce;

•changes in the international, national or local regulatory and legal environments;

•differing technology standards or customer requirements;

•difficulties associated with repatriating earnings generated or held abroad in a tax-efficient manner and

•changes in tax laws.

Our business operations are subject to various and changing federal, state, local and foreign laws and regulations that could result in costs or sanctions that adversely affect our business and results of operations. Social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands, may adversely affect our relationships with customers and investors.

We operate in approximately 70 countries in an increasingly complex regulatory environment. Among other things, we provide complex ~~industry specific~~industry-specific insurance processing in the U.K., which is regulated by authorities in the U.K. and elsewhere, such as the U.K.’s Financial Conduct Authority and ~~Her~~His Majesty’s Treasury and the U.S. Department of Treasury, which increases our exposure to compliance risk. For example, in February 2017, CSC submitted an initial notification of voluntary disclosure to the U.S. Department of Treasury's Office of Foreign Assets Control (“OFAC”) regarding certain possible violations of U.S. sanctions laws pertaining to insurance premium data and claims data processed by two partially-owned joint ventures of Xchanging, which CSC acquired during the first quarter of fiscal 2017. A copy of the disclosure was also provided to Her Majesty’s Treasury Office of Financial Sanctions Implementation in the U.K. Our related internal investigation is substantially complete, and we provided supplemental information to OFAC on January 31, 2020 and continue to work with OFAC on these issues. Our retail investment account management business in Germany is another example of a regulated business, which must maintain a banking license, is regulated by the German Federal Financial Supervisory Authority and the European Central Bank and must comply with German banking laws and regulations.

In addition, businesses in the countries in which we operate are subject to local, legal and political environments and regulations including with respect to employment, tax, statutory supervision and reporting and trade restriction, along with industry regulations such as regulation by bank regulators in the U.S. and Europe. These regulations and environments are also subject to change.

Adjusting business operations to changing environments and regulations may be costly and could potentially render the particular business operations uneconomical, which may adversely affect our profitability or lead to a change in the business operations. Notwithstanding our best efforts, we may not be in compliance with all regulations in the countries in which we operate at all times and may be subject to sanctions, penalties or fines as a result. These sanctions, penalties or fines may materially and adversely impact our profitability.

Our operations are also subject to a broad array of domestic and international environmental, health, and safety laws and regulations, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, and the clean-up of contaminated sites. Environmental costs and accruals are presently not material to our operations, cash flows or financial position; and, we do not currently anticipate material capital expenditures for environmental control facilities. However, our failure to comply with these laws or regulations can result in civil, criminal or regulatory penalties, fines, and legal liabilities; suspension, delay or alterations of our operations; damage to our reputation; and restrictions on our operations or sales. Our business could also be affected if new environmental legislation is passed which impacts our current operations and business. For example, if we are unable to comply with fast-moving regulatory requirements, we could be disqualified from requests for proposal processes, leading to a loss of sales.

In addition, as climate change laws, regulations, treaties and national and global initiatives are adopted and implemented regionally or throughout the world, we may be required to comply or potentially face market access limitations, fines or reputational injury. ~~Such~~For example, the SEC has published proposed rules that would require companies to provide significantly expanded climate-related disclosures in their periodic reporting, which may require us to incur significant additional costs to comply and impose increased oversight obligations on our management and board of directors. Other laws, regulations, treaties or initiatives in response to climate change, including, but not limited to, the introduction of a carbon tax, could result in increased operational costs associated with air pollution requirements and increased compliance and energy costs, which could harm our business and results of operations by increasing our expenses or requiring us to alter our business operations. Moreover, we may experience loss of market share if we are unable to provide competitive products and services that incorporate climate-change mitigations, and if we are unable to achieve and sustain a carbon-neutral business model in a meaningful time frame, we could lose stockholder confidence, resulting in loss of business and loss of access to the financial markets.

We are also subject to risks associated with ~~environmental, social and governance (“ESG”)~~ESG regulations. Governmental bodies, investors, clients and businesses are increasingly focused on prioritizing ESG practices, which has resulted in and may in the future continue to result in the adoption of new laws and ~~regulations.~~regulations that could impact our results of operations. Our inability to keep pace with any ESG regulations, trends and developments or failure to meet the expectations, including, but not limited to, any expectations resulting from goals we have established, or interests of our clients and investors, could adversely affect our business and ~~reputation.~~reputation and could result in undesirable investor actions or customer or talent retention and attraction issues. For more information, see our risk factor “Increased scrutiny of, and evolving expectations for, sustainability and ESG initiatives could increase our costs, harm our reputation, or otherwise adversely impact our business."

We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business.

We have implemented several restructuring plans to realign our cost structure due to the changing nature of our business and to achieve operating efficiencies to reduce our costs. We may not be able to obtain the costs savings and benefits that were initially anticipated in connection with our restructuring plans. Furthermore, even if we are successful with our cost-takeout efforts, we may not see the benefits of such efforts on our financial condition, results of operations and cash flows. Additionally, as a result of our restructuring, we may experience a loss of continuity, loss of accumulated knowledge and/or inefficiency during transitional periods. Reorganization and restructuring can require a significant amount of management and other employees' time and focus, which may divert attention from operating and growing our business. There are also significant costs associated with restructuring which can have a significant impact on our earnings and cash flow. If we fail to achieve some or all of the expected benefits of restructuring, it could have a material adverse effect on our competitive position, business, financial condition, results of operations and cash flows. For more information about our restructuring plans, see Note 2213 - "Restructuring Costs."

In the course of providing services to customers, we may inadvertently infringe on the intellectual property rights of others and be exposed to claims for damages.

The solutions we provide to our customers may inadvertently infringe on the intellectual property rights of third parties, resulting in claims for damages against us or our customers. Our contracts generally indemnify our customers from claims for intellectual property infringement for the services and equipment we provide under the applicable contracts. We also indemnify certain vendors and customers against claims of intellectual property infringement made by third parties arising from the use by such vendors and customers of software products and services and certain other matters. Some of the applicable indemnification arrangements may not be subject to maximum loss clauses. The expense and time of defending against these claims may have a material and adverse impact on our profitability. If we lose our ability to continue using any such services and solutions because they are found to infringe the rights of others, we will need to obtain substitute solutions or seek alternative means of obtaining the technology necessary to continue to provide such services and solutions. Our inability to replace such solutions, or to replace such solutions in a timely or cost-effective manner, could materially adversely affect our results of operations. Additionally, the publicity resulting from infringing intellectual property rights may damage our reputation and adversely impact our ability to develop new business.

Our inability to procure third-party licenses required for the operation of our products and service offerings may result in decreased revenue or increased costs.

Many of our products and service offerings depends on the continued performance and availability of software licensed from third-party vendors under our contractual arrangements. Because of the nature of these licenses and arrangements, there can be no assurance that we would be able to retain all of these intellectual property rights upon renewal, expiration or termination of such licenses or that we will be able to procure, renew or extend such licenses on commercially reasonable terms which may result in increased costs. Certain of our licenses are concentrated in one or more third-party licensors where multiple licenses are up for renewal at the same time, which could decrease our ability to negotiate reasonable license fees and could result in our loss of rights under such licenses.

Disruption of our supply chain could adversely impact our business.

We are experiencing, and may continue to experience, delays and shortages of certain necessary components to the services and solutions we offer our clients resulting from issues with the global supply chain, the economic downturns, the rising inflation, the COVID-19 pandemic, the conflict between Russia and Ukraine, and any disruptions at our suppliers. This shortage may increase component delivery lead times and costs to source available components and delay the delivery of our hardware products and services, which may adversely affect our ability to comply with our contracts and our ability to support our existing customers and our growth through sales to new customers. In the event of a component shortage or interruptions at a supplier, we may not be able to develop alternate sources quickly, cost effectively, or at all. Supply chain interruptions could harm our relationships with our customers, prevent us from acquiring new customers, and materially and adversely affect our business.

We may be exposed to negative publicity and other potential risks if we are unable to ~~achieve and~~ maintain effective disclosure controls and internal controls over financial reporting.

The Sarbanes-Oxley Act of 2002 and the related regulations require we maintain effective disclosure controls and procedures and require our management to report on, and our independent registered public accounting firm to attest to, the effectiveness of our internal control over financial reporting. Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. However, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There can be no assurance that all control issues or fraud will be detected. ~~As we continue to grow our business, our internal controls continue to become more complex and require more resources.~~

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Any failure to maintain effective controls could prevent us from timely and reliably reporting financial results and may harm our operating results. In addition, if we are unable to conclude that we have effective internal control over financial reporting or, if our independent registered public accounting firm is unable to provide an unqualified report as to the effectiveness of our internal control over financial reporting, as of each fiscal year end, we may be exposed to negative publicity, which could cause investors to lose confidence in our reported financial information. Any failure to maintain effective internal controls and any such resulting negative publicity may negatively affect our business and stock price.

Additionally, the existence of any material weaknesses or significant deficiencies would require management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting could also result in errors in our financial statements that could require us to restate our financial statements, cause us to fail to meet our reporting obligations, subject us to litigation or regulatory scrutiny and cause stockholders to lose confidence in our reported financial information, all of which could materially and adversely affect us and the market price of our common stock.

We have identified a material weakness in our internal control over financial reporting. Without effective internal control over financial reporting, we may fail to detect or prevent a material misstatement in our financial statements, which could materially harm our business, our reputation and our stock price.

During the third quarter of fiscal 2020, our management identified a material weakness in our internal control over financial reporting as of December 31, 2019 related to reassessing policies and procedures to determine their continued relevance, as impacted by complex transactions and processes. See "Item 9A. Controls and Procedures." Without effective internal control over financial reporting, we may fail to detect or prevent a material misstatement in our financial statements. In that event, we may be required to restate our financial statements. A restatement or an unremediated material weakness could result in a loss of confidence in us by our investors, customers, regulators and/or counterparties. In addition, our remediation efforts are still ongoing and if we are unable to promptly remediate the material weakness identified above, or if we were to conclude in the future that we have one or more additional weaknesses, our investors, regulators, customers and/or counterparties may lose confidence in our reported financial information. Additionally, management may be required to devote significant time and incur significant expense to remediate the material weakness, and management may not be able to complete such remediation in a timely manner. Any of the foregoing could materially harm our business, our reputation and the market price of our common stock.

We could suffer additional losses due to asset impairment charges.

We acquired substantial goodwill and other intangibles as a result of the HPES Merger and the Luxoft Acquisition, increasing our exposure to this risk. We test our goodwill for impairment during the second quarter of every year and on an interim date should events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. If the fair value of a reporting unit is revised downward due to declines in business performance or other factors or if the Company suffers further declines in share price, an impairment could result and a non-cash charge could be required. We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment of the recoverability of finite-lived intangible assets could result in an impairment and a non-cash charge could be required. We also test certain equipment and deferred cost balances associated with contracts when the contract is materially underperforming or is expected to materially underperform in the future, as compared to the original bid model or budget. If the projected cash flows of a particular contract are not adequate to recover the unamortized cost balance of the asset group, the balance is adjusted in the tested period based on the contract's fair value. Either of these impairments could materially affect our reported net earnings.

We may not be able to pay dividends or repurchase shares of our common stock in accordance with our announced intent or at all.

Our Board may authorize share repurchases from time to time. On April 3, 2017, we announced the establishment of a share repurchase plan approved by the Board of Directors with an initial authorization of up to $2.0 billion for future repurchases of outstanding shares of our common stock. On November 8, 2018,May 18, 2023, DXC announced that its Board ~~of Directors~~ approved an incremental ~~$2.0~~$1.0 billion share repurchase authorization. However, we are not obligated to make any purchases of our shares, and our decision to repurchase our shares, as well as the timing of such repurchases, will depend on a variety of factors as determined by our management and Board.

In addition, while we paid quarterly cash dividends to our stockholders starting fiscal 2018 in accordance with our announced dividend policy, we suspended the payment of quarterly dividends starting in fiscal 2021 to enhance our financial flexibility. WeAt this time, we do not intend to ~~continue to suspend~~reinstate our quarterly cash ~~dividends for fiscal 2022.~~dividends. The declaration and payment of future dividends, the amount of any such dividends, and the establishment of record and payment dates for dividends, if any, are subject to final determination by our Board ~~of Directors~~ after review of our current strategy and financial performance and position, among other things.

The ~~Board of Directors’~~Board’s determinations regarding dividends and share repurchases will depend on a variety of factors, including net income, cash flow generated from operations, amount and location of our cash and investment balances, overall liquidity position and potential alternative uses of cash, such as acquisitions, as well as economic conditions and expected future financial results. There can be no guarantee that we will achieve our financial goals in the amounts or within the expected time frame, or at all. Our ability to declare future dividends or repurchase shares will depend on our future financial performance, which in turn depends on the successful implementation of our strategy and on financial, competitive, regulatory and other factors, general economic conditions, demand and prices for our services and other factors specific to our industry or specific projects, many of which are beyond our control. Therefore, our ability to generate cash flow depends on the performance of our operations and could be limited by decreases in our profitability or increases in costs, regulatory changes, capital expenditures or debt servicing requirements.

Any failure to achieve our financial goals could negatively impact our reputation, harm investor confidence in us, and cause the market price of our common stock to decline.

We are defendants in pending litigation that may have a material and adverse impact on our profitability and liquidity.

As noted in Note 2321 - "Commitments and Contingencies," we are currently party to a number of disputes that involve or may involve litigation or arbitration, including ~~putative~~ securities ~~class actions pending in both state and federal courts and other lawsuits~~litigation in which we and certain of our current or former officers and directors have been named as defendants. The result of these ~~lawsuits~~ and any other future legal proceedings cannot be predicted with certainty. Regardless of their subject matter or merits, such legal proceedings may result in significant cost to us, including in the form of legal fees and/or damages, which may not be covered by insurance, may divert the attention of management or may otherwise have an adverse effect on our business, financial condition and results of operations. Negative publicity from litigation, whether or not resulting in a substantial cost, could materially damage our reputation and could have a material adverse effect on our business, financial condition, results of operations, and the price of our common stock. In addition, such legal proceedings may make it more difficult to finance our operations.

We are also subject to continuous examinations of our income tax returns by tax authorities. Although we believe our tax estimates are reasonable, the final results of any tax examination or related litigation could be materially different from our related historical income tax provisions and accruals. Adverse developments in an audit, examination or litigation related to previously filed tax returns, or in the relevant jurisdiction’s tax laws, regulations, administrative practices, principles and interpretations could have a material effect on our results of operations and cash flows in the period or periods for which that development occurs, as well as for prior and subsequent periods. For more ~~detail,~~details, including on current tax examinations of our income tax returns by tax authorities, see Note 1315 – “Income Taxes.”

We may be adversely affected by disruptions in the credit markets, including disruptions that reduce our customers' access to credit and increase the costs to our customers of obtaining credit.

The credit markets have historically been volatile and therefore it is not possible to predict the ability of our customers to access short-term financing and other forms of capital. If a disruption in the credit markets were to occur, it could pose a risk to our business if customers or suppliers are unable to obtain financing to meet payment or delivery obligations to us. In the event that one or more customers or suppliers' defaults on its payment or delivery obligations, we could incur significant losses, which may harm our business, reputation, results of operations, cash flows and financial condition. In addition, customers may decide to downsize, defer or cancel contracts, which could negatively affect our revenues.

~~Further, as of March 31, 2021, we have $0.7 billion of floating interest rate debt. Accordingly, a spike in interest rates could adversely affect our results of operations and cash flows.~~

Our hedging program is subject to counterparty default risk.

We enter into foreign currency forward contracts and interest rate swaps with a number of counterparties. As a result, we are subject to the risk that the counterparty to one or more of these contracts defaults on its performance under the contract. During an economic downturn, the counterparty's financial condition may deteriorate rapidly and with little notice and we may be unable to take action to protect our exposure. In the event of a counterparty default, we could incur significant losses, which may harm our business and financial condition. In the event that one or more of our counterparties becomes insolvent or files for bankruptcy, our ability to eventually recover any losses suffered as a result of that counterparty's default may be limited by the liquidity of the counterparty.

We derive significant revenues and profit from contracts awarded through competitive bidding processes, which can impose substantial costs on us and we may not achieve revenue and profit objectives if we fail to bid on these projects effectively.

We derive significant revenues and profit from government contracts that are awarded through competitive bidding processes. We expect that most of the non-U.S. government business we seek in the foreseeable future will be awarded through competitive bidding. Competitive bidding is expensive and presents a number of risks, including:

•the substantial cost and managerial time and effort that we spend to prepare bids and proposals for contracts that may or may not be awarded to us;

•the need to estimate accurately the resources and costs that will be required to service any contracts we are awarded, sometimes in advance of the final determination of their full scope and design;

•the expense and delay that may arise if our competitors protest or challenge awards made to us pursuant to competitive bidding;

•the requirement to resubmit bids protested by our competitors and in the termination, reduction, or modification of the awarded contracts; and

•the opportunity cost of not bidding on and winning other contracts we might otherwise pursue.

If our customers experience financial difficulties, we may not be able to collect our receivables, which would materially and adversely affect our profitability and cash flows from operations.

Over the course of a contract term, a customer's financial condition may decline and limit its ability to pay its obligations. This could cause our cash collections to decrease and bad debt expense to increase. While we may resort to alternative methods to pursue claims or collect receivables, these methods are expensive and time consuming and successful collection is not guaranteed. Failure to collect our receivables or prevail on claims would have an adverse effect on our profitability and cash flows.

If we are unable to maintain and grow our customer relationships over time, our operating results and cash flows will suffer. Failure to comply with customer contracts or government contracting regulations or requirements could adversely affect our business, results of operations and cash flows.

We devote significant resources to establish relationships with our customers and implement our offerings and related services, particularly in the case of large enterprises that often request or require specific features or functions specific to their particular business profile. Accordingly, our ~~operating~~ results of operations depend in substantial part on our ability to deliver a successful customer experience and persuade customers to maintain and grow their relationship with us over time. If we are not successful in implementing an offering or delivering a successful customer experience, including achieving cost and staffing levels that meet our customers’ expectations, customers could terminate or elect not to renew their agreements with us and our operating results may suffer.

Contracts with customers may include unique and specialized performance requirements. In particular, our contracts with federal, state, provincial, and local governmental customers are generally subject to various procurement regulations, contract provisions, and other requirements relating to their formation, administration, and performance, including the maintenance of necessary security clearances. ~~Contracts~~Our customers' contracts with U.S. government agencies are also subject to audits and investigations, which may include a review of performance on contracts, pricing practices, cost structure, and compliance with applicable laws and regulations.

Any failure on our part to comply with the specific provisions in customer contracts or any violation of government contracting regulations or other requirements could result in the imposition of various civil and criminal penalties, which may include termination of contracts, forfeiture of profits, suspension of payments, and, in the case of government contracts, fines and suspension from future government contracting. Such failures could also cause reputational damage to our business. In addition, we may be subject to qui tam litigation brought by private individuals on behalf of the government relating to government contracts, which could include claims for treble damages. Further, any negative publicity with respect to customer contracts or any related proceedings, regardless of accuracy, may damage our business by harming our ability to compete for new contracts.

~~Contracts~~Our customers' contracts with the U.S. federal government and related agencies are also subject to issues with respect to federal budgetary and spending limits or matters. Any changes to the fiscal policies of the U.S. federal government may decrease overall government funding, result in delays in the procurement of products and services due to lack of funding, cause the U.S. federal government and government agencies to reduce their purchases under existing contracts, or cause them to exercise their rights to terminate contracts ~~at will~~at-will or to abstain from exercising options to renew contracts, any of which would have an adverse effect on our business, financial condition, results of operations and/or cash flows. Additionally, any future impasse impacting the U.S. federal government’s ability to reach an agreement on the federal budget, debt ceiling or any future U.S. federal government shut downs could result in material payment delays, payment reductions or contract terminations by the U.S. federal government, which in turn may adversely impact the results of operations and financial condition of our government contractor customers and cause those customers to become unable to meet their obligations under contracts with us, or reduce their demand for our products and services, which could have an adverse effect on our financial condition, results of operations and/or cash flows.

If our customer contracts are terminated, if we are suspended or disbarred from government work, or our ability to compete for new contracts is adversely affected, our financial performance could suffer.

~~Recent~~Our strategic transactions may prove unsuccessful and our profitability may be materially and adversely affected.

At any given time, we may be engaged in discussions or negotiations with respect to one or more transactions, including acquisitions, divestitures or spin-offs, strategic partnerships or other transaction involving one or more of our businesses. Any of these transactions could be material to our business, financial condition, results of operations and cash flows. We may ultimately determine not to proceed with any transaction for commercial, financial, strategic or other reasons. As a result, we may not realize benefits expected from exploring one or more strategic transactions, may realize benefits further in the future or those benefits may ultimately be significantly smaller than anticipated, which could adversely affect our business, financial condition, results of operations and cash flows.

In addition, we may fail to complete transactions. Closing transactions is subject to uncertainties and risks, including the risk that we may be unable to satisfy conditions to closing, such as regulatory and financing conditions and the absence of material adverse changes to our business.

For acquisitions, our inability to successfully integrate the operations we acquire and leverage these operations to generate substantial cost savings, as well as our inability to avoid revenue erosion and earnings decline, could have a material adverse effect on our results of operations, cash flows and financial position. In order to achieve successful acquisitions, we will need to:

•integrate the operations and business cultures, as well as the accounting, financial controls, management information, technology, human resources and other administrative systems, of acquired businesses with existing operations and systems;

•maintain third-party relationships previously established by acquired companies;

•attract and retain senior management and key personnel at acquired businesses; and

•manage new business lines, as well as acquisition-related workload.

Existing contractual restrictions may limit our ability to engage in certain integration activities for varying periods. We may not be successful in meeting these or any other challenges encountered in connection with historical and future acquisitions. Even if we successfully integrate, we cannot predict with certainty if or when these cost and revenue synergies, growth opportunities and benefits will occur, nor the extent to which they actually will be achieved. In addition, the quantification of previously announced synergies expected to result from an acquisition is based on significant estimates and assumptions that are subjective in nature and inherently uncertain. Realization of any benefits and synergies could be affected by a number of factors beyond our control, including, without limitation, general economic conditions, increased operating costs, regulatory developments and other risks. In addition, future acquisitions could require dilutive issuances of equity securities and/or the assumption of contingent liabilities. The occurrence of any of these events could adversely affect our business, financial condition and results of operations.

Divestiture transactions also involve significant challenges and risks, including:

•the potential loss of key customers, suppliers, vendors and other key business partners;

•declining employee morale and retention issues affecting employees, which may result from changes in compensation, or changes in management, reporting relationships, future prospects or perceived expectations;

•difficulty in making new and strategic hires of new employees;

•diversion of management time and a shift of focus from operating the businesses to transaction execution considerations;

•customers delaying or deferring decisions or ending their relationships with us;

•the need to provide transition services, which may result in stranded costs and the diversion of resources and focus;

•the need to separate operations, systems (including accounting, management, information, human resources and other administrative systems), technologies, products and personnel, which is an inherently risky and potentially lengthy and costly process;

•the inefficiencies and lack of control that may result if such separation is delayed or not implemented effectively, and unforeseen difficulties and expenditures that may arise as a result including potentially significant stranded costs;

•our desire to maintain an investment grade credit rating may cause us to use cash proceeds, if any, from any divestitures or other strategic transactions that we might otherwise have used for other purposes in order to reduce our financial leverage;

•the inability to obtain necessary regulatory approvals or otherwise satisfy conditions required in order consummate any such transactions;

•our dependence on accounting, financial reporting, operating metrics and similar systems, controls and processes of divested businesses could lead to challenges in preparing our consolidated financial statements or maintaining effective financial control over financial reporting; and

•contractual terms limiting our ability to compete for or perform certain contracts or services.

We have also entered into and intend to identify and enter into additional strategic partnerships with other industry participants that will allow us to expand our business. However, we may be unable to identify attractive strategic partnership candidates or complete these partnerships on terms favorable to us. In addition, if we are unable to successfully implement our partnership strategies or our strategic partners do not fulfill their obligations or otherwise prove disadvantageous to our business, our investments in these partnerships and our anticipated business expansion could be adversely affected.

Changes in U.S. tax legislation may materially affect our financial condition, results of operations and cash flows.

~~Recently enacted U.S. tax legislation has~~The 2017 Tax Cuts & Jobs Act ("TCJA") significantly changed the ~~U.S.~~ federal income taxation of U.S. corporations, including by reducing the U.S. corporate income tax rate, limiting interest deductions, permitting immediate expensing of certain capital expenditures, adopting elements of a territorial tax system, imposing a one-time transition tax (or “repatriation tax”) on all undistributed earnings and profits of certain U.S.-owned foreign corporations, revising the rules governing net operating losses and the rules governing foreign tax credits, ~~and~~ introducing new anti-base erosion ~~provisions.~~provisions and the ability to expense research and experimentation costs. Many of these changes were effective immediately, without any transition periods or grandfathering for existing ~~transactions. The legislation is unclear~~transactions, while other changes, such as the requirement to capitalize research and development costs became effective for tax years beginning after December 31, 2021 and became applicable to the Company starting in many respects and could be subject to potential amendments and technical corrections, as well as interpretations and implementing regulations by the U.S. Department of the Treasury and Internal Revenue Service ("IRS"), any of which could lessen or increase certain impacts of the legislation. In addition, state and local jurisdictions continue to issue guidance on how these U.S. federal income tax changes will affect state and local taxation, which often uses federal taxable income as a starting point for computing state and local tax liabilities.fiscal year 2023.

While our analysis and interpretation of this legislation is ongoing, based on our current evaluation, we recorded a provisional reduction of our deferred income tax liabilities resulting in a material non-cash benefit to earnings during fiscal 2018, the period in which the tax legislation was enacted, which was adjusted in fiscal 2019.

~~Additionally, the~~The repatriation tax resulted in a material amount of additional U.S. tax liability, the majority of which was reflected as an income tax expense in fiscal 2018, when the tax legislation was enacted, despite the fact that the resulting tax may be paid over eight years. ~~Further, there may be other material adverse effects resulting from future guidance, including technical corrections.~~

In addition, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in respect to the recent outbreak of COVID-19. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, the ability to utilize and carryback certain net operating losses, alternative minimum tax refunds and modifications to rules regarding the deductibility of net interest expense. Subsequent to the CARES Act, additional stimulus legislation has been enacted which included additional individual and corporate tax provisions and modifications to the CARES Act.

While some of the changes made by recent tax legislation may be beneficial to the Company in one or more reporting periods and prospectively, other changes may be adverse on a going forward basis. We continue to work with our tax advisors to determine the full impact that recent tax legislation as a whole will have on us.

Changes in U.S. tax legislation, regulation and government policy as a result of the 2020 U.S. presidential and congressional elections may impact our future financial position and results of operations.

On March 31, 2021, President Biden proposed the American Jobs Plan which included provisions to increase the corporate income tax rate to 28%, create a new 15% minimum tax on “book income,” and increased taxes on foreign income. While the likelihood of these changes or others being enacted or implemented is unclear, if passed in its current form, the proposed legislation could have a negative impact on our future financial position. To the extent that such changes have a negative impact on us, our suppliers or our customers, including as a result of related uncertainty, these changes may materially and adversely impact our business, financial condition, results of operations and cash flows.

Changes in tax rates, tax laws and the timing and outcome of tax examinations could affect our future results.

Our future effective tax rates, which are largely driven by the mix of our global earnings and the differing statutory tax rates in the jurisdictions where we operate, are subject to change as a result of changes in statutory tax rates enacted in those jurisdictions, or by changes in the valuation of deferred tax assets and liabilities, or by changes in tax laws or their ~~interpretation.~~ interpretation or tax policy initiatives and reforms under consideration, such as those reflected in the OECD/G20 Inclusive Framework on Base Erosion and Profit Sharing or other projects.

In January 2019, the Organization for Economic Co-operation and Development (“OECD”) announced further work in continuation of its Base Erosion and Profit Shifting project, focusing on two “pillars.” Pillar One provides a framework for the reallocation of certain residual profits of multinational enterprises to market jurisdictions where goods or services are used or consumed. Pillar Two consists of two interrelated rules referred to as Global Anti-Base Erosion (“GloBE”) Rules, which operate to impose a minimum tax rate of 15% calculated on a jurisdictional basis. More than 135 member countries of the OECD/G20 Inclusive Framework on BEPS have signed onto a political agreement on the key parameters of the two pillars, which was reached in October 2021. This agreement targeted completion of the work by the members in 2022, and law enactment to take effect, generally, in 2023 with applicability from fiscal years beginning on or after December 31, 2023. On December 20, 2021, the OECD published model rules to implement the GloBE rules and released commentary to those rules in March 2022. The model rules and commentary allow the OECD’s Inclusive Framework members to begin implementing the GloBE rules in a manner consistent with the agreement reached in October 2021. EU Member States recently adopted a directive that implements the GloBE rules in the EU. Luxembourg as an EU Member State will be required to transpose the directive into domestic legislation by the end of 2023, with application as of 2024. Work on Pillar One is continuing and is now targeting completion by mid-2023 for entry into force as of 2024. Certain components of Pillar Two are still being worked on. These changes, if and when agreed and enacted by various countries in which we do business, may increase our taxes in these countries. The timing and ultimate impact of any such changes on our tax obligations is uncertain.

We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for taxes. There can be no assurance that the outcomes from these examinations will not have a material adverse effect on our financial condition and operating results.

Risks Related to our Completed Strategic Transactions

We could have an indemnification obligation to HPE if the stock distribution in connection with the HPES business separation (the "Distribution") were determined not to qualify for tax-free treatment, which could materially adversely affect our financial condition.

If, due to any of our representations being untrue or our covenants being breached, the Distribution was determined not to qualify for tax-free treatment under Section 355 of the Internal Revenue Code of 1986, as amended (the "Code"), HPE would generally be subject to tax as if it sold the DXC common stock in a taxable transaction, which could result in a material tax liability. In addition, each HPE stockholder who received DXC common stock in the Distribution would generally be treated as receiving a taxable Distribution in an amount equal to the fair market value of the DXC common stock received by the stockholder in the Distribution.

Under the tax matters agreement that we entered into with HPE in connection with the HPES Merger, we were required to indemnify HPE against taxes resulting from the Distribution or certain aspects of the HPES Merger arising as a result of an Everett Tainting Act (as defined in the Tax Matters Agreement). If we were required to indemnify HPE for taxes resulting from an Everett Tainting Act, that indemnification obligation would likely be substantial and could materially adversely affect our financial condition.

If the HPES Merger does not qualify as a reorganization under Section 368(a) of the Code, CSC's former stockholders may incur significant tax liabilities.

The completion of the HPES Merger was conditioned upon the receipt by HPE and CSC of opinions of counsel to the effect that, for U.S. federal income tax purposes, the HPES Merger will qualify as a "reorganization" within the meaning of Section 368(a) of the Code (the "HPES Merger Tax Opinions"). The parties did not seek a ruling from the IRS regarding such qualification. The HPES Merger Tax Opinions were based on then current law and relied upon various factual representations and assumptions, as well as certain undertakings made by HPE, HPES and CSC. If any of those representations or assumptions is untrue or incomplete in any material respect or any of those undertakings is not complied with, or if the facts upon which the HPES Merger Tax Opinions are based are materially different from the actual facts that existed at the time of the HPES Merger, the conclusions reached in the HPES Merger Tax Opinions could be adversely affected and the HPES Merger may not qualify for tax-free treatment. Opinions of counsel are not binding on the IRS or the courts. No assurance can be given that the IRS will not challenge the conclusions set forth in the HPES Merger Tax Opinions or that a court would not sustain such a challenge. If the HPES Merger were determined to be taxable, previous holders of CSC common stock would be considered to have made a taxable disposition of their shares to HPES, and such stockholders would generally recognize taxable gain or loss on their receipt of HPES common stock in the HPES Merger.

We assumed certain material pension benefit obligations in connection with the HPES Merger. These liabilities and the related future funding obligations could restrict our cash available for operations, capital expenditures and other requirements, and may materially adversely affect our financial condition and liquidity.

Pursuant to the Employee Matters Agreement entered into in connection with the HPES Merger, while HPE retained all U.S. defined benefit pension plan liabilities, DXC retained all liabilities relating to the International Retirement Guarantee (“IRG”) programs for all HPES employees. The IRG is a non-qualified retirement plan for employees who transfer internationally at the request of the HPE Group. The IRG determines the country of guarantee, which is generally the country in which an employee has spent the longest portion of his or her career with the HPE Group, and the present value of a full career benefit for the employee under the HPE defined benefit pension plan and social security or social insurance system in the country of guarantee. The IRG then offsets the present value of the retirement benefits from plans and social insurance systems in the countries in which the employee earned retirement benefits for his or her total period of HPE Group employment. The net benefit value is payable as a single sum as soon as practicable after termination or retirement. This liability could restrict cash available for our operations, capital expenditures and other requirements, and may materially affect our financial condition and liquidity.

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In addition, pursuant to the Employee Matters Agreement, DXC assumed certain other defined benefit pension liabilities in a number of non-U.S. countries (including the U.K., Germany and Switzerland). Unless otherwise agreed or required by local law, where a defined benefit pension plan was maintained solely by a member of the HPES business, DXC assumed all assets and liabilities arising out of those non-U.S. defined benefit pension plans, and where a defined benefit pension plan was not maintained solely by a member of the HPES business, DXC assumed all assets and liabilities for those eligible HPES employees in connection with the HPES Merger. These liabilities and the related future payment obligations could restrict cash available for our operations, capital expenditures and other requirements, and may materially affect our financial condition and liquidity.

The USPS Separation and Mergers and NPS Separation could result in substantial tax liability to DXC and our stockholders.

Among the closing conditions to completing the USPS Separation and Mergers, we received a legal opinion of tax counsel substantially to the effect that, for U.S. federal income tax purposes: (i) the USPS Separation qualifies as a “reorganization” within the meaning of Section 368(a)(1)(D) of the ~~Internal Revenue Code of 1986, as amended (the “Code”);~~Code; (ii) each of DXC and Perspecta is a “party to a reorganization” within the meaning of Section 368(b) of the Code with respect to the USPS Separation; (iii) the USPS distribution qualifies as (1) a tax-free spin-off, resulting in nonrecognition under Sections 355(a), 361 and 368(a) of the Code, and (2) a transaction in which the stock distributed thereby should constitute “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the Code; and (iv) none of the related mergers causes Section 355(e) of the Code to apply to the USPS distribution. If, notwithstanding the conclusions expressed in these opinions, the USPS Separation and Mergers were determined to be taxable, DXC and its stockholders could incur significant tax liabilities.

In addition, prior to the HPES Merger, CSC spun off its North American Public Sector business ("NPS") on November 27, 2015 (the "NPS Separation"). In connection with the NPS Separation, CSC received an opinion of counsel substantially to the effect that, for U.S. federal income tax purposes, the NPS Separation qualified as a tax-free transaction to CSC and holders of CSC common stock under Section 355 and related provisions of the Code. The completion of the HPES Merger was conditioned upon the receipt of CSC of an opinion of counsel to the effect that the HPES Merger should not cause Section 355(e) of the Code to apply to the NPS Separation or otherwise affect the qualification of the NPS Separation as a tax-free distribution under Section 355 of the Code. If, notwithstanding the conclusions expressed in these opinions, the NPS Separation were determined to be taxable, CSC and CSC stockholders that received CSRA ~~Inc~~Inc. ("CSRA") stock in the NPS Separation could incur significant tax liabilities.

The opinions of counsel we received were based on, among other things, various factual representations and assumptions, as well as certain undertakings made by DXC, Perspecta and CSRA. If any of those representations or assumptions is untrue or incomplete in any material respect or any of those undertakings is not complied with, the conclusions reached in the opinion could be adversely affected and the USPS Separation or the NPS Separation may not qualify for tax-free treatment. Furthermore, an opinion of counsel is not binding on the IRS or the courts. Accordingly, no assurance can be given that the IRS will not challenge the conclusions set forth in the opinions or that a court would not sustain such a challenge. If, notwithstanding our receipt of the opinions, the USPS Separation or NPS Separation is determined to be taxable, we would recognize taxable gain as if we had sold the shares of Perspecta or CSRA in a taxable sale for its fair market value, which could result in a substantial tax liability. In addition, if the USPS Separation or NPS Separation is determined to be taxable, each holder of our common stock who received shares of Perspecta or CSRA would generally be treated as receiving a taxable distribution in an amount equal to the fair market value of the shares received, which could materially increase such holder’s tax liability.

Additionally, even if the USPS Separation otherwise qualifies as a tax-free transaction, the USPS distribution could be taxable to us (but not to our shareholders) in certain circumstances if future significant acquisitions of our stock or the stock of Perspecta are deemed to be part of a plan or series of related transactions that includes the USPS distribution. In this event, the resulting tax liability could be substantial. In connection with the USPS Separation, we entered into a tax matters agreement with Perspecta, under which it agreed not to undertake any transaction without our consent that could reasonably be expected to cause the USPS Separation to be taxable to us and to indemnify us for any tax liabilities resulting from such transactions. These obligations and potential tax liabilities could be substantial.

3335

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Our corporate headquarters is located at a leased facility in ~~Tysons,~~Ashburn, VA. We own or lease numerous ~~general office facilities, global security operations centers, strategic delivery centers~~offices and data centers ~~with more than 500~~in approximately 370 locations around the world. We do not identify properties by segment, as they are interchangeable in nature and used by both segments.

We continue to reduce our space capacity at low utilization and sub-scale locations, exit ~~co-location,~~co-locations, align locations by skill type and optimize our data center footprint. Where commercially reasonable and to the extent it is not needed for future expansion, we seek to sell, lease or sublease our excess space.

The following table provides a summary of properties we owned and leased as of March 31, ~~2021:~~2023:


						Approximate Square Feet (in millions)
Geographic Area	Geographic Area	Approximate Square Feet (in millions)			Geographic Area	Owned	Leased	Total
		Owned	Leased	Total
United States	United States	5	1	6	United States	2.3	1.3	3.6
International		4	13	17
EMEA					EMEA	0.9	3.4	4.3
APAC					APAC	0.9	3.3	4.2
All other					All other	0.6	0.2	0.8
Real estate in restructuring					Real estate in restructuring	—	1.6	1.6
Inactive space					Inactive space	0.7	0.2	0.9
Sublet space					Sublet space	0.4	—	0.4
Assets held for sale					Assets held for sale	0.4	—	0.4
Total	Total	9	14	23	Total	6.2	10.0	16.2

Results of Operations

The following table ~~sets forth certain~~provides financial data for fiscal ~~2021~~2023 and ~~2020:~~2022:

Fiscal Years Ended
(In millions, except per-share amounts) March 31, 2021 March 31, 2020
Revenues $ 17,729 $ 19,577
Income (loss) from continuing operations, before taxes 654 (5,228)
Income tax expense 800 130
Net loss $ (146) $ (5,358)
Diluted loss per common share: $ (0.59) $ (20.76)

~~Fiscal 2021 Highlights~~

~~Fiscal 2021 financial highlights include the following:~~

•Fiscal 2021 revenues were $17,729 million, a decrease of 9.4% as compared to fiscal 2020. The decrease was primarily due to project terminations, the disposition of the U.S. State and Local Health and Human Services business ("HHS") business at the beginning of the third quarter of fiscal 2021, decrease in run-rate project volume, and project completions, offset by contributions from our Luxoft acquisition which was executed during the first quarter of fiscal 2020 and additional services provided to new and existing customers. Refer to the section below captioned "Revenues."

•Fiscal 2021 net loss and diluted loss per share were $146 million and $0.59, respectively. Net loss decreased by $5,212 million during fiscal 2021 as compared to the prior fiscal year. The decrease was primarily due to goodwill impairment offset by a gain on arbitration recognized in the prior year with fiscal 2021 benefiting from a gain on disposition of the HHS business, cost optimization realized in the current year and a reduction in revenue in the current year previously mentioned. Refer to the section below captioned "Cost and Expenses." Net loss included the cumulative impact of certain items of $773 million during fiscal 2021, reflecting restructuring costs, transaction, separation and integration-related costs, amortization of acquired intangible assets, impairment losses, gains on dispositions, pension and other post-retirement benefit ("OPEB") actuarial and settlement losses, debt extinguishment costs, and tax adjustment. This compares with net loss and diluted loss per share of $5,358 million and $20.76, respectively, for fiscal 2020.

•Fiscal 2021 income tax expense increased significantly over fiscal 2020 as a result of the gain on disposition of the HHS business, which included the impact of non-tax deductible goodwill. Fiscal 2020 income tax expense also reflected the impact of non-tax deductible goodwill impairments.

•~~Our cash and cash equivalents were $2,968 million at March 31, 2021.~~

•~~We generated $124 million of cash from operations during fiscal 2021, as compared to $2,350 million during fiscal 2020.~~


	Fiscal Years Ended
(In millions, except per-share amounts)	March 31, 2023		March 31, 2022

Revenues	$	14,430	$	16,265

(Loss) income before income taxes	(885)		1,141
Income tax (benefit) expense	(319)		405
Net (loss) income	$	(566)	$	736

Diluted (loss) income per common share:	$	(2.48)	$	2.81

3839

Revenues

~~During fiscal 2021~~Our revenues by geography and ~~fiscal 2020, the distribution of our revenues across geographies was as follows:~~operating segments are provided below:


	Fiscal Years Ended						Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		Percentage Change		Constant Currency March 31, 2023(1)		Percentage Change in Constant Currency(1)
Geographic Market
United States	$	4,320	$	4,775	(9.5)	%	$	4,320	(9.5)	%
United Kingdom	1,883		2,295		(18.0)	%	2,137		(6.9)	%
Other Europe	4,429		5,117		(13.4)	%	4,849		(5.2)	%
Australia	1,449		1,549		(6.5)	%	1,566		1.1	%
Other International	2,349		2,529		(7.1)	%	2,524		(0.2)	%
Total Revenues	$	14,430	$	16,265	(11.3)	%	$	15,396	(5.3)	%

Reportable Segments
GBS	$	6,960	$	7,598	(8.4)	%	$	7,406	(2.5)	%
GIS	7,470		8,667		(13.8)	%	7,990		(7.8)	%
Total Revenues	$	14,430	$	16,265	(11.3)	%	$	15,396	(5.3)	%

(1)

Fiscal Years Ended
(in millions) March 31, 2021 March 31, 2020 Change Percent Change
GBS $ 8,336 $ 9,111 $ (775) (8.5) %
GIS 9,393 10,466 (1,073) (10.3) %
Total Revenues $ 17,729 $ 19,577 $ (1,848) (9.4) %

The decrease in revenues for fiscal 2021 compared with fiscal 2020 reflects project terminations, the disposition of the HHS business at the beginning of the third quarter of fiscal 2021, decrease in run-rate project volume, and project completions offset by contributions from our Luxoft acquisition which was executed during the first quarter of fiscal 2020 and additional services provided to new and existing customers. Fiscal 2021 revenues included a favorable foreign currency exchange rate impact of 1.7%, primarily driven by the weakening of the U.S. dollar against the Australian Dollar, Euro, and British Pound.

~~For a discussion of risks associated with our foreign operations, see Part I, Item 1A "Risk Factors" of this Annual Report.~~

As a global company, over 66% of our fiscal 2021 revenues were earned internationally. As a result, the comparison of revenues denominated in currencies other than the U.S. dollar, from period to period, is impacted by fluctuations in foreign currency exchange rates. Constant currency revenues are a non-GAAP measure calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This information is consistent with how management views our revenues and evaluates our operating performance and trends. For more information, see "Non-GAAP Financial Measures."

Total revenue for fiscal 2023 was $14.4 billion, a decrease of $1,835 million or 11.3%, as compared to the same period a year ago. The ~~table below summarizes~~11.3% decrease against the comparative period includes a 6.0% unfavorable foreign currency exchange rate impact, a 2.6% decline in revenue from the disposition of certain businesses, and a 2.7% decline in organic revenue. Organic revenue growth is a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The unfavorable foreign currency exchange rate impact is primarily driven by the strengthening of the U.S. dollar against the British Pound, Euro, and Australian Dollar.

For a discussion of risks associated with our ~~constant currency revenues:~~

Fiscal Years Ended
(in millions) Constant Currency March 31, 2021 March 31, 2020 Change Percentage Change
GBS $ 8,188 $ 9,111 $ (923) (10.1)%
GIS 9,224 10,466 (1,242) (11.9)%
Total Revenues $ 17,412 $ 19,577 $ (2,165) (11.1)%
foreign operations, see Part I, Item 1A - "Risk Factors."

Global Business Services

~~Our~~ GBS revenues were ~~$8.3~~$7.0 billion for fiscal ~~2021,~~2023, a decrease of ~~8.5%~~$638 million or 8.4% compared to fiscal ~~2020. GBS~~2022. The 8.4% decrease against the comparative period includes a 5.9% unfavorable foreign currency exchange rate impact and a 4.9% decline in revenue ~~in constant currency decreased 10.1% compared to fiscal 2020. The decrease in GBS revenues was primarily due to~~from the disposition of ~~the HHS business at the beginning of the third quarter of fiscal 2021, project completions, and decrease in run-rate project volume. The decrease in revenue for fiscal 2021 was~~certain businesses, partially offset by ~~contributions~~2.4% organic revenue growth from ~~our Luxoft acquisition which was executed during the first quarter of fiscal 2020 and~~ additional services provided to new and existing customers.

Global Infrastructure Services

~~Our~~ GIS revenues were ~~$9.4~~$7.5 billion for fiscal ~~2021,~~2023, a decrease of ~~10.3%~~$1,197 million or 13.8% compared to fiscal ~~2020. GIS~~2022. The 13.8% decrease against the comparative period includes a 6.0% unfavorable foreign currency exchange rate impact, 0.6% decline in revenue from the disposition of certain businesses, and a 7.2% decline in ~~constant currency decreased 11.9% compared to fiscal 2020. The decrease in GIS revenues reflects~~organic revenue from project completions, early terminations, and ~~decrease in run-rate project volume. The decrease in revenue for fiscal 2021 was partially offset by additional services provided to new and existing customers.~~lower resale revenue.

~~During fiscal 2021, GBS and GIS had contract awards of $11.0 billion and $8.8 billion, respectively, compared with $9.0 billion and $8.7 billion, respectively, during fiscal 2020.~~

Costs and Expenses

Our total costs and expenses were as follows:

Fiscal Years Ended
Amount Percentage of Revenues
(in millions) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Percentage Point Change
Costs of services (excludes depreciation and amortization and restructuring costs) $ 14,086 $ 14,901 79.5 % 76.0 % 3.5
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) 2,066 2,050 11.7 10.5 1.2
Depreciation and amortization 1,970 1,942 11.1 9.9 1.2
Goodwill impairment losses — 6,794 — 34.7 (34.7)
Restructuring costs 551 252 3.1 1.3 1.8
Interest expense 361 383 2.0 2.0 —
Interest income (98) (165) (0.6) (0.8) 0.2
Debt extinguishment costs 41 — 0.2 — 0.2
Gain on disposition of businesses (2,004) — (11.3) — (11.3)
Gain on arbitration award — (632) — (3.2) 3.2
Other expense (income), net 102 (720) 0.6 (3.7) 4.3
Total costs and expenses $ 17,075 $ 24,805 96.3 % 126.7 % (30.4)

The 30.4 point decrease in total costs and expenses as a percentage of revenue for fiscal 2021 primarily reflects gains net of losses on dispositions in the current year and our fiscal 2020 goodwill impairment losses, partially offset by the gain on arbitration award that didn’t occur in fiscal 2021.


	Dollar Amount
	Fiscal Years Ended				Change
(in millions)	March 31, 2023		March 31, 2022		Dollar		Percent
Costs of services (excludes depreciation and amortization and restructuring costs)	$	11,246	$	12,683	$	(1,437)	(11.3)	%
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	1,375		1,408		(33)		(2.3)
Depreciation and amortization	1,519		1,717		(198)		(11.5)
Restructuring costs	216		318		(102)		(32.1)
Interest expense	200		204		(4)		(2.0)
Interest income	(135)		(65)		(70)		107.7
Debt extinguishment costs	—		311		(311)		(100.0)
Gain on disposition of businesses	(190)		(371)		181		(48.8)
Other expense (income), net	1,084		(1,081)		2,165		(200.3)
Total costs and expenses	$	15,315	$	15,124	$	191	1.3	%

Costs of Services

~~Cost~~Costs of services, excluding depreciation and amortization and restructuring costs ("COS"), ~~was $14.1~~were $11.2 billion for fiscal ~~2021, as compared to $14.9 billion in fiscal 2020. COS decreased $0.8 billion~~2023, a decrease of $1,437 million compared to the prior fiscal year. The $1,437 million decrease in expenses was primarily due to a favorable foreign currency exchange rate impact of $761 million, a decrease in volumes from divestitures and lower revenue levels, and a reduction in professional services and contractor-related expenses from our cost optimization savings partially offset by $190 million in impairments realized during fiscal 2021. The majority of impairments were on assets pre-purchased through preferred vendor agreements, which are scheduled to expire in fiscal 2022. The remainder of impairments primarily relate to software.efforts.

Gross margin (Revenues less COS as a percentage of ~~revenue increased 3.5% as compared to the prior~~revenue) was 22.1% and 22.0% for fiscal ~~year. The increase was driven by a decline in revenue exceeding associated cost reductions that were further impacted by asset impairment during the current fiscal year.~~2023 and 2022, respectively.

Selling, General and Administrative

Selling, general and administrative expense, excluding depreciation and amortization and restructuring costs ("SG&A"), was ~~$2.1~~$1.4 billion for fiscal ~~2021, consistent with~~2023, a decrease of $33 million compared to the prior fiscal ~~2020.~~year. In fiscal 2023, SG&A as a percentage of ~~revenue increased 1.2%~~revenues was 9.5%, ~~compared~~an increase of 80 basis points against the comparative period. The $33 million decrease in SG&A expenses was primarily due to ~~fiscal 2020. The increase was driven by~~ a ~~reduction~~favorable foreign currency exchange rate impact of $68 million, lower real estate costs and other professional and contractor-related expenses, and a $10 million decrease in ~~revenue during the current fiscal year.~~

~~Transaction,~~transaction, separation and integration-related (“TSI”) costs, ~~included in SG&A, were $358~~partially offset by a $46 million ~~during fiscal 2021, as compared to $318~~charge for merger-related indemnification expenses, $29 million ~~during fiscal 2020.~~for arbitration losses, and $8 million for the SEC Matter.

Depreciation and Amortization

Depreciation expense was ~~$754~~$519 million for fiscal ~~2021, as~~2023, a decrease of $106 million compared to ~~$643 million~~the prior fiscal year. The decrease in ~~fiscal 2020. Depreciation~~depreciation expense ~~increased $111 million~~was primarily due to ~~an increase in newly capitalized assets~~lower average net property and ~~assets placed into service.~~equipment balances and a favorable foreign currency exchange rate impact of $30 million for fiscal 2023.

Amortization expense was ~~$1,216~~$1,000 million for fiscal ~~2021, as~~2023, a decrease of $92 million compared to ~~$1,299 million~~the prior fiscal year. The decrease in ~~fiscal 2020. Amortization~~amortization expense ~~decreased $83 million~~was primarily due to a decrease in ~~customer related intangibles related~~software amortization, a reduction in transition and transformation contract cost amortization due to ~~the disposition~~contract completions, and a favorable foreign currency exchange rate impact of ~~the HHS business at the beginning of the third quarter of~~$43 million for fiscal ~~2021. See Note 3 - "Divestitures" for additional information.~~2023.

~~Goodwill Impairment Losses~~

DXC recognized goodwill impairment charges totaling $6,794 million during fiscal 2020. The impairment charges were primarily the result of a sustained decline in market capitalization during the fiscal 2020. See Note 12 - "Goodwill" for additional information.

Restructuring Costs

Restructuring costs represent severance related to workforce optimization programs and expense associated with facilities and data center rationalization.

During fiscal ~~2021,~~2023, management approved global cost savings initiatives designed to better align our workforce and facility structures. Total restructuring costs recorded, net of reversals, during fiscal ~~2021 and 2020~~2023 were ~~$551~~$216 million, ~~and $252~~a decrease of $102 million ~~respectively. The net amounts recorded included $13 million and $10 million of pension benefit augmentations for~~compared to the prior fiscal ~~2021 and 2020, respectively, owed to certain employees under legal or contractual obligations. These augmentations will be paid as part of normal pension distributions over several years.~~year.

See Note 2213 - "Restructuring Costs" for additional information about our restructuring actions.

Interest Expense and Interest Income

~~Interest~~For fiscal 2023, net interest expense ~~for fiscal 2021~~(interest expense less interest income) was ~~$361~~$65 million, a decrease of $74 million as compared to ~~$383 million in~~the prior fiscal ~~2020.~~year. The decrease in net interest expense against the comparative period was primarily due to ~~lower~~higher income from notional cash pool deposits due to global interest ~~rates on finance leases,~~rate hikes, a reduction in ~~interest charges within our multicurrency cash pools,~~notes payable and ~~retirement~~term loans resulting from the Company's refinancing of its high coupon debt ~~instruments. The decrease~~in fiscal 2022, and decreases in interest expense from finance leases and borrowings for ~~fiscal 2021 was partially offset by increased amounts drawn on our revolving credit facility.~~

Interest income for fiscal 2021 was $98 million, as compared to $165 million in fiscal 2020. The year-over-year decrease in interest income was primarily driven by interest income in the second quarter of fiscal year 2020 related to arbitration discussed below under the caption “Gain on Arbitration Award" and lower income from our multicurrency cash pools and money market accounts.asset financing.

Debt Extinguishment Costs

During fiscal 2021, we recorded $41 million of debt extinguishment costs within the consolidated statement of operations, which consists primarily of costs related to the redemption of 4.00% Senior Notes due fiscal 2024. There were no debt extinguishment costs recorded infor fiscal ~~2020.~~2023.

Debt extinguishment costs were $311 million for fiscal 2022, for the partial and full redemption of term loans, senior notes, and extinguishment of debt associated with asset financing.

Gain on ~~Dispositions~~Disposition of Businesses

During fiscal ~~2021,~~2023, DXC sold its ~~HHS~~FDB business, ~~for $5.0 billion which~~resulting in a pre-tax gain of $215 million. During fiscal 2023, DXC also sold certain insignificant businesses that resulted in ~~an estimated~~a net loss of $25 million.

During fiscal 2022, DXC sold its HPS business resulting in a pre-tax gain on sale of ~~$2,014 million, net of closing costs. Insignificant businesses were~~$331 million. During fiscal 2022, DXC also sold ~~during fiscal 2021~~certain insignificant businesses that resulted in a ~~loss~~gain of ~~$10~~$53 million.

~~Gain on Arbitration Award~~

~~During the second quarter of fiscal 2020, DXC received final arbitration award proceeds of $666~~ This was partially offset by $13 million in sales price adjustments related to ~~the HPE Enterprise Services merger completed~~prior year dispositions, which resulted from changes in fiscal 2018. The arbitration award included $632 million in damages that were recorded as a gain. The remaining $34 million of the award related to pre-award interest. Dispute details are subject to confidentiality obligations.projected closing net working capital.

Other Expense (Income), Net

Other expense (income), net comprises non-service cost components of net periodic pension income, movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, equity earnings of unconsolidated affiliates and other miscellaneous gains and losses.

The components of other expense (income), net for fiscal ~~2021~~2023 and ~~2020 are~~2022 were as follows:


		Fiscal Years Ended					Fiscal Years Ended
(in millions)	(in millions)	March 31, 2021		March 31, 2020		(in millions)	March 31, 2023		March 31, 2022		Dollar Change
Non-service cost components of net periodic pension expense (income)	Non-service cost components of net periodic pension expense (income)	$	110	$	(658)	Non-service cost components of net periodic pension expense (income)	$	1,180	$	(1,066)	$	2,246
Foreign currency loss (gain)		14		(25)
Other gain		(22)		(37)
Foreign currency (gain) loss						Foreign currency (gain) loss	(15)		13		(28)
Gain on sale of assets						Gain on sale of assets	(90)		(88)		(2)
Other loss						Other loss	9		60		(51)
Total	Total	$	102	$	(720)	Total	$	1,084	$	(1,081)	$	2,165

Property and Equipment

Property and equipment, which ~~includes~~include assets under capital leases, are stated at cost less accumulated depreciation. Depreciation is computed predominantly on a straight-line basis over the estimated useful lives of the assets or the remaining lease term. The estimated useful lives of DXC's property and equipment are as follows:


Buildings			Up to 40 years
Computers and related equipment			4 to 7 years
Furniture and other equipment			3 to 15 years
Leasehold improvements			Shorter of lease term or useful life up to 20 years

~~In accordance with its policy, the Company reviews the estimated useful lives of its property and equipment on an ongoing basis. As a result, effective fiscal year 2020, theCompany changed its estimate of the useful lives of its computers and related equipment from an average of~~ ~~four~~ ~~to five years to an average of~~ ~~four~~ to seven years, which better reflects the estimated periods during which these assets will remain in service. This change resulted in a $225 million decrease to depreciation expense for the fiscal year ended March 31, 2020.

Intangible Assets

The Company's estimated useful lives for finite-lived intangibles are shown in the table below:


Software			2 to 10 years


Customer related intangibles			Expected customer service life
Acquired contract related intangibles			Contract life and first contract renewal, where applicable

Software is amortized using predominately the straight-line ~~method.~~method (see Software Development Costs above). Acquired contract related and customer related intangible assets are amortized in proportion to the estimated undiscounted cash flows projected over the estimated life of the asset or on a straight-line basis if such cash flows cannot be reliably estimated.

Impairment of Long-Lived Assets and Finite-Lived Intangible Assets

Long-lived assets such as property and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount of such assets to the estimated future net cash flows. If estimated future net cash flows are less than the carrying amount of such assets, an expense is recorded in the amount required to reduce the carrying amount of such assets to fair value. Fair value is determined based on a discounted cash flow approach or, when available and appropriate, comparable market values. Long-lived assets to be disposed of are reported at the lower of their carrying amount or their fair value less costs to sell.

Assets/Liabilities Held for Sale

The Company classifies assets as held for sale in the period when the following conditions are met: (i) management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); (ii) the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal group); (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; (iv) the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or

circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; (v) the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

A long-lived asset (disposal group) that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale.

The fair value of a long-lived asset (disposal group) less any costs to sell is assessed each reporting period that it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the asset (disposal group), as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale.

Income Taxes

The Company uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the results of operations in the period that includes the related enactment date.

A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the Company’s tax provision during the period in which the change occurred. In determining whether a valuation allowance is warranted, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, taxable income in prior carryback years, projected future taxable income, tax planning strategies and recent results of financial operations. The Company recognizes the tax benefit of uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination. Uncertain tax positions are measured based on the probabilities that the uncertain tax position will be realized upon final settlement.

All tax-related cash flows resulting from excess tax benefits related to the settlement of share-based awards are classified as cash flows from operating activities and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity in the statements of cash flows.

Cash and Cash Equivalents

The Company considers investments with an original maturity of three months or less to be cash equivalents. The Company’s cash equivalents consist of time deposits, money market funds and money market deposit accounts with a number of institutions that have high credit ratings.

Foreign Currency

The local currency of the Company's foreign affiliates is generally their functional currency. Accordingly, the assets and liabilities of the foreign affiliates are translated from their respective functional currency to U.S. dollars using fiscal year-end exchange rates, income and expense accounts are translated at the average rates in effect during the fiscal year and equity accounts are translated at historical rates. The resulting translation adjustment is reported in the statements of comprehensive income and recorded as part of accumulated other comprehensive ~~income ("AOCI").~~(loss) income.

Derivative Instruments

The Company designates certain derivative instruments as hedges for purposes of hedge accounting, as defined under ASC 815 “Derivatives and Hedging.” For such derivative instruments, the Company documents its risk management objectives and strategy for undertaking hedging transactions, as well as all relationships between hedging and hedged risks. The Company's derivative instruments designated for hedge accounting include interest rate swaps and foreign currency forward and option contracts. Changes in the fair value measurements of these derivative instruments are reflected as adjustments to other comprehensive (loss) income and subsequently reclassified into earnings in the period during which the hedged transactions occurred. Any ineffectiveness or excluded portion of a designated hedge is recognized in earnings.

The Company also has entered into certain net investment hedges. Changes in the fair value of net investment hedges are recorded in the currency translation adjustment section of other comprehensive (loss) income and subsequently reclassified into earnings in the period the hedged item affects earnings. The Company excludes forward points from the effectiveness assessment of its net investment hedges. Changes in fair value of the excluded component are recognized in earnings.

The derivative instruments not designated as hedges for purposes of hedge accounting include total return swaps and certain short-term foreign currency forward contracts. These instruments are recorded at their respective fair values and the change in their value is reported in current period earnings. The Company does not use derivative instruments for trading or speculative purpose. The Company reports the effective portion of its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. All cash flows associated with the Company's derivative instruments are classified as operating activities in the statements of cash flows.

~~Recently Adopted~~New Accounting Pronouncements

~~During fiscal 2021, DXC adopted the following Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board:~~


~~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.~~

~~New Accounting Pronouncements:~~

~~The following ASUs were recently issued but have not yet been adopted by DXC:~~


~~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.	~~DXC has evaluated the impact of adopting ASU 2019-12 and determined that the adoption will be immaterial to the consolidated financial statements.~~

~~Other recently~~Recently issued ASUs effective after March 31, ~~2021~~2023 are not expected to have a material effect on DXC's consolidated financial statements.

~~Note 2 - Acquisitions~~

~~Fiscal 2021 Acquisitions~~

~~AXA Bank Germany Acquisition~~

On January 1, 2021, DXC completed its acquisition of AXA Bank Germany ("AXA Bank"), a German retail bank, from AXA Group for the total consideration of $101 million. In connection with its acquisition of AXA Bank, DXC received cash of $294 million which includes customer deposit liabilities totaling $197 million. DXC recorded goodwill associated with the acquisition of AXA Bank totaling $2 million.

~~Fiscal 2020 Acquisitions~~

~~Luxoft Acquisition~~

On June 14, 2019, DXC completed the acquisition of Luxoft, a digital service provider whose offerings encompass strategic consulting, custom software development services, and digital solution engineering for total consideration of $2.0 billion. The acquisition will combine Luxoft’s digital engineering capabilities with DXC’s expertise in IT modernization and integration. The purchase agreement (“Merger Agreement”) was entered into by DXC and Luxoft on January 6, 2019 and the transaction was closed on June 14, 2019.

The transaction between DXC and Luxoft is an acquisition, with DXC as the acquirer and Luxoft as the acquiree, based on the fact that DXC acquired 100% of the equity interests and voting rights in Luxoft, and that DXC is the entity that transferred the cash consideration.

~~The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the Luxoft acquisition date is as follows:~~


~~(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~~

Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed at the acquisition date. The goodwill recognized with the acquisition was attributable to the synergies expected to be achieved by combining the businesses of DXC and Luxoft, expected future contracts and the acquired workforce. The cost-saving opportunities are expected to include improved operating efficiencies and asset optimization. The total goodwill arising from the acquisition was allocated to GBS and is not deductible for tax purposes.

The Company valued current assets and liabilities using existing carrying values as an estimate of the approximate fair value of those items at the acquisition date except for certain contract receivables for which the Company determined fair value based on a cost plus margin approach. The Company valued acquired property and equipment using predominately the direct capitalization method of the income approach and in certain specific cases, the Company determined that the net book value represents the fair value. The Company valued customer relationships using the multi-period excess earnings method under the income approach and valued trade names and developed technology using a relief from royalty method under the income approach. The Company determined that the net book value of the purchased software represents the fair value.

~~Below are the estimated useful lives of the acquired intangibles:~~


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

~~Third-party purchased software~~												3

~~The Company valued deferred tax liabilities based on statutory tax rates in the jurisdictions of the legal entities where the acquired non-current assets and liabilities are taxed.~~

~~Results of Operations~~

~~The Company's statement of operations includes the following revenues and net income attributable to Luxoft since the acquisition date:~~


~~(in millions)~~	~~Twelve Months Ended March 31, 2020(1)~~
~~Revenues~~	$	~~695~~
~~Net income (loss)~~	$	~~(25)~~

~~(1)~~ ~~Results for the fiscal year ended March 31, 2020 reflect operations subsequent to the acquisition date of June 14, 2019, not the full twelve months of fiscal 2020.~~

~~Fiscal 2019 Acquisitions~~

~~Molina Medicaid Solutions Acquisition(1)~~

On October 1, 2018, DXC completed its acquisition of Molina Medicaid Solutions ("MMS"), a Medicaid Management Information Systems business, from Molina Healthcare, Inc. for the total consideration of $233 million. The combination of MMS with DXC expands DXC’s ability to provide services to state agencies in the administration of Medicaid programs, including business processing, information technology development, and administrative services.

The purchase price for the MMS was allocated to assets acquired and liabilities assumed based upon the current determination of fair values at the date of acquisition as follows: $87 million to current assets, $112 million to intangible assets other than goodwill, $11 million to other assets, $51 million to current liabilities, $18 million to other liabilities and $92 million to goodwill. The goodwill is associated with the Company's GBS segment and is tax deductible. The intangible assets acquired include customer relationships and developed technology which have a 13-year weighted average estimated useful life.

~~(1)~~ ~~MMS was sold as part of the HHS Sale discussed in Note 3 - "Divestitures."~~

~~Other Acquisitions~~

In addition to the MMS acquisition, DXC completed 7 acquisitions to complement the Company's Microsoft Dynamics and ServiceNow offerings and to provide opportunities for future growth. The acquired businesses are included in the results for the GBS segment. The purchase consideration of $228 million included cash of $187 million and contingent consideration with an estimated fair value of $41 million. The purchase price was allocated to assets acquired and liabilities assumed based upon determination of fair values at the dates of acquisition as follows: $73 million to current assets, $71 million to intangible assets other than goodwill, $10 million to other non-current assets, $63 million to current liabilities and $137 million to goodwill. The goodwill is associated with the Company's GBS segment some of which is tax deductible.

8876

Note 32 - Divestitures

Fiscal ~~2021~~2023 Divestitures

~~HHS Sale~~

On ~~October 1, 2020,~~January 3, 2023, DXC completed the sale of its ~~HHS Business to Veritas Capital. The sale was accomplished by~~German financial services subsidiary ("FDB" or the ~~cash purchase of all equity interests and assets attributable~~"FDB Business") to the ~~HHS Business~~FNZ Group ("FNZ") for ~~a total enterprise value of $5.0 billion (including $85~~€308 million related to future services to be provided by the Company). As part of the sale of the HHS business, $272 million of repurchased receivables, previously sold under the Milano Receivables Facility ("Milano Facility') (see Note 6 - "Receivables" to the financial statements)(approximately $329 million), $12 million of prepaid maintenance, and $48 million of software licenses were transferred to the HHS Business. DXC made payment for these assets during the third quarter of fiscal 2021. The repurchase of receivables and payment on prepaid maintenance are reported as operating cash outflows, and the payment for software license is considered an investing cash outflow. The HHS Sale resultedresulting in a pre-tax gain of approximately $215 million. Included in the FDB sale was AXA Bank Germany, a German retail bank, that DXC acquired for total consideration of $101 million on ~~sale of $2,014 million, net of closing costs. The sale price is subject to adjustment based on changes in actual closing net working capital. Final potential working capital adjustments are pending.~~January 1, 2021.

Approximately $3.5 billion of the sale proceeds were used to prepay $1,250 million of Revolver Credit Facility, £600 million of GBP commercial paper (approximately $772 million), and the following term loan facilities: €350 million of Euro Term Loan due fiscal 2024 (approximately $410 million), $381 million of USD Term loan due fiscal 2025, A$500 million of AUD Term Loan due fiscal 2022 (approximately $358 million), and €250 million of Euro Term Loan due fiscal 2022 and 2023 (approximately $292 million). See Note 14 - "Debt" to the financial statements.

DXC's post-divestiture relationship with the HHS Business is governed by the Purchase Agreement, which provides for the allocation of assets, employees, liabilities and obligations (including property, employee benefits, litigation, and tax-related assets and liabilities) between DXC and the HHS Business attributable to periods prior to, at and after the divestment. In addition, DXC and the HHS Business have service and commercial contracts that generally extend through fiscal 2023.

The divestment of the HHS Business, reported as part of the GBS segment, did not meet the requirements for presentation as discontinued operations as it did not represent a strategic shift that would have a major effect on DXC's operations and financial results and was included in income from continuing operations prior to its divestment.

The following is a summary of the assets and liabilities distributed as part of the ~~HHS~~FDB Sale on ~~October 1, 2020:~~January 3, 2023:


(in millions)	As of ~~October 1, 2020~~January 3, 2023
Assets:
Cash and cash equivalents	$	8509
Accounts receivable, net	~~295~~67
Prepaid expenses	391
~~Other current assets~~	2
Total current assets	~~344~~577
Intangible assets, net	~~1,308~~
~~Operating right-of-use assets, net~~	7445
Goodwill	~~1,354~~48
Property and equipment, net	461
Other assets	5412
Total non-current assets	~~2,836~~106
Total assets	$	~~3,180~~683

Liabilities:
Accounts payable	$	79
~~Accrued payroll and related costs~~	13
~~Current operating lease liabilities~~	275
Accrued expenses and other current liabilities	36529
~~Deferred revenue and advance contract payments~~Income taxes payable	201
Total current liabilities	~~175~~535
Non-current income tax liabilities and deferred ~~revenue~~	32
~~Long-term operating lease~~tax liabilities	486
Other ~~long term~~long-term liabilities	24
Total long-term liabilities	8210
Total liabilities	$	~~257~~545

During fiscal 2023, the Company sold insignificant businesses that resulted in a net loss of $25 million. Included in this amount was the Company's primary Russian entity that the Company sold in the second quarter of fiscal 2023, in response to the ongoing sanctions against certain industry sectors and parties in Russia due to Russia's invasion of Ukraine.

As of March 31, 2023, the Company had entered into definitive agreements to sell insignificant businesses and assets, which are classified as held for sale.

Fiscal 2022 Divestitures

HPS Sale

During fiscal 2022, DXC completed the sale of its healthcare provider software business (“HPS” or the “HPS Business”) to Dedalus Holding S.p.A. (“Dedalus”) for €468 million (approximately $551 million), resulting in a pre-tax gain on sale of $331 million, net of closing costs.

During fiscal 2022, the Company sold some insignificant businesses that resulted in a gain of $53 million. This was partially offset by $13 million in sales price adjustments related to prior year dispositions, which resulted from changes in estimated net working capital.

Fiscal 2021 Divestitures

HHS Sale

During fiscal 2021, DXC completed the sale of its U.S. State and Local Health and Human Services business ("HHS" or the "HHS Business") to Veritas Capital Fund Management, L.L.C. ("Veritas Capital"), for approximately $5.0 billion, resulting in a pre-tax gain on sale of $2,014 million. Approximately $3.5 billion of the sale proceeds was used to prepay debt.

During fiscal 2021, the Company sold some insignificant businesses that resulted in a loss of $10 million.

~~Fiscal 2019 Divestitures~~

~~Separation of USPS~~

During fiscal 2019, the Company completed the separation of its U.S. Public Sector business ("USPS") (the "Separation"), and combination of USPS with Vencore Holding Corp. ("Vencore") and KeyPoint Government Solutions ("Keypoint") (the "Mergers") to form Perspecta, an independent public company.

~~Implementation of the Separation and DXC's post-Separation relationship with Perspecta is governed by several agreements, including the following:~~

•~~a Separation and Distribution Agreement;~~

•~~an Employee Matters Agreement;~~

•~~a Tax Matters Agreement;~~

•~~an Intellectual Property Matters Agreement;~~

•~~a Transition Services Agreement;~~

•~~a Real Estate Matters Agreement;~~

•~~an IT Services Agreement and,~~

•~~a Non-US Agency Agreement.~~

These agreements provide for the allocation of assets, employees, liabilities and obligations (including property, employee benefits, litigation, and tax-related assets and liabilities) between DXC and Perspecta attributable to periods prior to, at and after the Separation. In addition, DXC and Perspecta have service and commercial contracts that generally extend through fiscal 2023. Results for the twelve months ended March 31, 2021 and March 31, 2020 include $31 million and $39 million of revenue and income from continuing operations before taxes associated with the IT services agreement.

Pursuant to the Separation and Distribution Agreement, immediately prior to the Separation, Perspecta made a net cash payment of $984 million to DXC, which reflects transaction consideration of $1,050 million less $66 million in principal amount of debt that was outstanding at a subsidiary of Perspecta. Perspecta financed the payment through borrowings under a new senior secured term loan facility.

~~The following is a summary of the assets and liabilities distributed as part of the Separation of USPS on May 31, 2018:~~


~~(in millions)~~	~~As of May 31, 2018~~
~~Assets:~~
~~Cash and cash equivalents~~	$	95
~~Receivables, net~~	~~458~~
~~Prepaid expenses~~	82
~~Other current assets~~	35
~~Total current assets of discontinued operations~~	~~670~~
~~Intangible assets, net(1)~~	~~870~~
~~Goodwill~~	~~2,029~~
~~Property and equipment, net~~	~~294~~
~~Other assets(1)~~	~~169~~
~~Total non-current assets of discontinued operations~~	~~3,362~~
~~Total assets~~	$	~~4,032~~

~~Liabilities:~~
~~Short-term debt and current maturities of long-term debt~~	$	~~161~~
~~Accounts payable~~	~~165~~
~~Accrued payroll and related costs~~	17
~~Accrued expenses and other current liabilities~~	~~358~~
~~Deferred revenue and advance contract payments~~	53
~~Income tax payable~~	18
~~Total current liabilities of discontinued operations~~	~~772~~
~~Long-term debt, net of current maturities~~	~~1,320~~
~~Non-current deferred revenue~~	5
~~Non-current income tax liabilities and deferred tax liabilities~~	~~196~~
~~Other long-term liabilities~~	71
~~Total long-term liabilities of discontinued operations~~	~~1,592~~
~~Total liabilities~~	$	~~2,364~~

~~(1)~~Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation.

~~The following is a summary of the operating results of USPS which have been reflected within income from discontinued operations, net of tax:~~


~~(in millions)~~	~~Fiscal Year Ended March 31, 2019~~ ~~(1)~~
~~Revenue~~	$	~~431~~

~~Costs of services~~	~~311~~
~~Selling, general and administrative~~	50
~~Depreciation and amortization~~	33
~~Restructuring costs~~	1
~~Interest expense~~	8
~~Other (income) expense, net~~	~~(25)~~
~~Total costs and expenses~~	~~378~~
~~Total income from discontinued operations, before income taxes~~	53
~~Income tax expense~~	18
~~Total income from discontinued operations~~	$	35

~~(1)~~ ~~Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the prior period.~~

~~There was 0 gain or loss on disposition recognized as a result of the Separation.~~

~~The following selected financial information of USPS is included in the statements of cash flows:~~


~~(in millions)~~	~~Fiscal Year Ended March 31, 2019~~ ~~(1)~~
~~Depreciation~~	$	16
~~Amortization~~	$	17
~~Capital expenditures~~	$	0
~~Significant operating non-cash items:~~
~~Gain on dispositions~~	$	24

~~(1)~~ ~~Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the prior period.~~

Note ~~4 - Assets Held for Sale~~

On July 17, 2020, DXC entered into a purchase agreement to sell (the "HPS Sale") its healthcare software business ("HPS" or the "HPS Business") to Dedalus Holding S.p.A. ("Dedalus") for €462 million (approximately $543 million), which includes €10 million (approximately $12 million) related to future services to be provided by the Company. Final consideration for the HPS Sale is subject to certain adjustments. The transaction closed on April 1, 2021. See Note 24 - "Subsequent Events."

~~As of March 31, 2021, the disposition of the HPS Business, reported as part of the GBS segment, met the requirements for presentation as assets held for sale under GAAP.~~

~~In addition, as of March 31, 2021, the Company entered into a definitive agreements to sell insignificant businesses, which were also classified as held for sale.~~

~~Assets held for sale are reported at carrying value, which is less than fair value. Assets held for sale and related liabilities as of March 31, 2021 were as follows:~~

(in millions) HPS Business Other Total
Assets:
Cash and cash equivalents $ 28 $ 35 $ 63
Accounts receivable, net 64 17 81
Prepaid expenses 6 5 11
Other current assets 0 5 5
Total current assets held for sale 98 62 160
Intangible assets, net 101 16 117
Operating right-of-use assets, net 5 18 23
Goodwill 80 9 89
Deferred income taxes, net 43 0 43
Property and equipment, net 4 52 56
Other assets 16 9 25
Total non-current assets held for sale 249 104 353
Total assets held for sale $ 347 $ 166 $ 513
Liabilities:
Accounts payable $ 4 $ 8 $ 12
Accrued payroll and related costs 7 2 9
Current operating lease liabilities 2 17 19
Accrued expenses and other current liabilities 13 13 26
Deferred revenue and advance contract payments 46 6 52
Total current liabilities related to assets held for sale 72 46 118
Non-current deferred revenue 10 0 10
Long-term operating lease liabilities 3 1 4
Income tax liabilities and deferred tax liabilities 1 0 1
Other long term liabilities 3 2 5
Total long-term liabilities related to assets held for sale 17 3 20
Total liabilities related to assets held for sale $ 89 $ 49 $ 138

~~Note 5~~3 - Earnings (Loss) Per Share

Basic EPS are computed using the weighted average number of shares of common ~~shares~~stock outstanding during the period. Diluted EPS reflect the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS:

Fiscal Years Ended
(in millions, except per-share amounts) March 31, 2021 March 31, 2020 March 31, 2019
Net (loss) income attributable to DXC common shareholders:
From continuing operations $ (149) $ (5,369) $ 1,222
From discontinued operations 0 0 35
$ (149) $ (5,369) $ 1,257
Common share information:
Weighted average common shares outstanding for basic EPS 254.14 258.57 277.54
Dilutive effect of stock options and equity awards 0 0 3.89
Weighted average common shares outstanding for diluted EPS 254.14 258.57 281.43
EPS:
Basic
Continuing operations $ (0.59) $ (20.76) $ 4.40
Discontinued operations 0 0 0.13
Total $ (0.59) $ (20.76) $ 4.53
Diluted
Continuing operations $ (0.59) $ (20.76) $ 4.35
Discontinued operations 0 0 0.12
Total $ (0.59) $ (20.76) $ 4.47


	Fiscal Years Ended
(in millions, except per-share amounts)	March 31, 2023		March 31, 2022		March 31, 2021
Net (loss) income attributable to DXC common shareholders:	$	(568)	$	718	$	(149)

Common share information:
Weighted average common shares outstanding for basic EPS	228.99		250.02		254.14
Dilutive effect of stock options and equity awards	—		5.19		—
Weighted average common shares outstanding for diluted EPS	228.99		255.21		254.14

Earnings (loss) per share:
Basic	$	(2.48)	$	2.87	$	(0.59)
Diluted	$	(2.48)	$	2.81	$	(0.59)

Certain ~~share based~~share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have had an anti-dilutive effect. The following table reflects awards excluded:


		Fiscal Years Ended				Fiscal Years Ended
		March 31, 2021(1)	March 31, 2020(1)	March 31, 2019		March 31, 2023(1)	March 31, 2022	March 31, 2021(1)
Stock Options	Stock Options	1,596,985	1,075,901	0	Stock Options	523,969	510,933	1,596,985
RSUs	RSUs	2,768,022	2,029,567	46,051	RSUs	3,242,461	6,500	2,768,022
PSUs	PSUs	1,463,872	289,972	25,086	PSUs	3,380,812	37,821	1,463,872


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	DXC	~~The New York Stock Exchange~~
~~2.750% Senior Notes Due 2025~~	~~DXC 25~~	The New York Stock Exchange
1.750% Senior Notes Due 2026	DXC 26	The New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None


Item	Item		Page	Item		Page
		PART I			PART I

1.	1.	Business	2	1.	Business	3
1A.	1A.	Risk Factors	10	1A.	Risk Factors	11
1B.	1B.	Unresolved Staff Comments	34	1B.	Unresolved Staff Comments	36
2.	2.	Properties	34	2.	Properties	36
3.	3.	Legal Proceedings	34	3.	Legal Proceedings	36
4.	4.	Mine Safety Disclosures	34	4.	Mine Safety Disclosures	36

		PART II			PART II

5.	5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	35	5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	37
6.	6.	Selected Financial Data	36	6.	Reserved	38
7.	7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36	7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
7A.	7A.	Quantitative and Qualitative Disclosures about Market Risk	63	7A.	Quantitative and Qualitative Disclosures about Market Risk	57
8.	8.	Financial Statements and Supplementary Data	65	8.	Financial Statements and Supplementary Data	58
9.	9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	151	9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	119
9A.	9A.	Controls and Procedures	151	9A.	Controls and Procedures	119
9B.	9B.	Other Information	156	9B.	Other Information	121
9C.				9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	121

		PART III			PART III

10.	10.	Directors, Executive Officers and Corporate Governance	156	10.	Directors, Executive Officers and Corporate Governance	122
11.	11.	Executive Compensation	156	11.	Executive Compensation	122
12.	12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	156	12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	122
13.	13.	Certain Relationships and Related Transactions, and Director Independence	157	13.	Certain Relationships and Related Transactions, and Director Independence	123
14.	14.	Principal Accountant Fees and Services	157	14.	Principal Accountant Fees and Services	123

		PART IV			PART IV

15.	15.	Exhibits, Financial Statement Schedules	157	15.	Exhibits and Financial Statement Schedules	124
16.	16.	Form 10-K Summary	163	16.	Form 10-K Summary	129


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
January 1, 2023 to January 31, 2023	710,633	$	28.38	710,633	$	810,962,128
February 1, 2023 to February 28, 2023	4,351,381	$	28.61	4,351,381	$	686,464,022
March 1, 2023 to March 31, 2023	8,460,167	$	24.96	8,460,167	$	475,271,849
Total	13,522,181	$	26.32	13,522,181


Indexed Return
		Return 2018*		Return 2019		Return 2020		Return 2021
Company/Market/Peer Group										Company/Market/Peer Group	2019		2020		2021		2022		2023
DXC Technology Company	DXC Technology Company	48.9	%	(25.0)	%	(76.9)	%	121.5	%	DXC Technology Company	(24.6)	%	(77.7)	%	127.6	%	4.2	%	(20.7)	%
S&P 500 Index	S&P 500 Index	14.2	%	9.5	%	(7.0)	%	56.4	%	S&P 500 Index	12.0	%	(7.0)	%	56.4	%	15.6	%	(7.7)	%
S&P North American Technology Index	S&P North American Technology Index	31.4	%	15.7	%	3.8	%	72.0	%	S&P North American Technology Index	19.0	%	3.8	%	72.0	%	8.7	%	(11.7)	%


		Fiscal Year Ended							Fiscal Year Ended
(in millions)	(in millions)	March 31, 2021		March 31, 2020		March 31, 2019		(in millions)	March 31, 2023		March 31, 2022		Change
Net cash provided by operating activities		$	124	$	2,350	$	1,783
Net cash provided by (used in) investing activities		4,665		(2,137)		69
Net cash (used in) provided by financing activities		(5,476)		657		(1,663)
Net cash provided by (used in):								Net cash provided by (used in):
Operating activities								Operating activities	$	1,415	$	1,501	$	(86)
Investing activities								Investing activities	(635)		(60)		(575)
Financing activities								Financing activities	(1,507)		(1,818)		311
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	39		(90)		(19)		Effect of exchange rate changes on cash and cash equivalents	(97)		29		(126)
Cash classified within current assets held for sale	Cash classified within current assets held for sale	(63)		—		—		Cash classified within current assets held for sale	10		52		(42)
Net (decrease) increase in cash and cash equivalents		(711)		780		170
Net decrease in cash and cash equivalents								Net decrease in cash and cash equivalents	$	(814)	$	(296)	$	(518)

Cash and cash equivalents at beginning of year	Cash and cash equivalents at beginning of year	3,679		2,899		2,729		Cash and cash equivalents at beginning of year	2,672		2,968
Cash and cash equivalents at end of year	Cash and cash equivalents at end of year	$	2,968	$	3,679	$	2,899	Cash and cash equivalents at end of year	$	1,858	$	2,672


(Mark One)
☒			ANNUAL 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)


	Approximate Square Feet (in millions)
Type	Owned	Leased	Total
Offices	1.9	6.2	8.1
Data centers	2.8	2.0	4.8
Real estate in restructuring	—	1.6	1.6
Inactive space	0.7	0.2	0.9
Sublet space	0.4	—	0.4
Assets held for sale	0.4	—	0.4
Total	6.2	10.0	16.2


	Fiscal Years Ended
(in millions)	Constant Currency March 31, 2021		March 31, 2020		Change		Percentage Change
GBS	$	8,188	$	9,111	$	(923)	(10.1)%
GIS	9,224		10,466		(1,242)		(11.9)%
Total Revenues	$	17,412	$	19,577	$	(2,165)	(11.1)%


	Fiscal Years Ended
	Amount				Percentage of Revenues
(in millions)	March 31, 2021		March 31, 2020		March 31, 2021		March 31, 2020		Percentage Point Change
Costs of services (excludes depreciation and amortization and restructuring costs)	$	14,086	$	14,901	79.5	%	76.0	%	3.5
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)	2,066		2,050		11.7		10.5		1.2
Depreciation and amortization	1,970		1,942		11.1		9.9		1.2
Goodwill impairment losses	—		6,794		—		34.7		(34.7)
Restructuring costs	551		252		3.1		1.3		1.8
Interest expense	361		383		2.0		2.0		—
Interest income	(98)		(165)		(0.6)		(0.8)		0.2
Debt extinguishment costs	41		—		0.2		—		0.2
Gain on disposition of businesses	(2,004)		—		(11.3)		—		(11.3)
Gain on arbitration award	—		(632)		—		(3.2)		3.2
Other expense (income), net	102		(720)		0.6		(3.7)		4.3
Total costs and expenses	$	17,075	$	24,805	96.3	%	126.7	%	(30.4)


		Fiscal Year Ended March 31, 2021																							Fiscal Year Ended March 31, 2023
(in millions, except per-share amounts)	(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization of Acquired Intangible Assets		Impairment Losses		Gains and Losses on Dispositions		Pension and OPEB Actuarial and Settlement Gains and Losses		Debt Extinguishment Costs		Tax Adjustment		Non-GAAP Results			(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration-Related Costs		Amortization of Acquired Intangible Assets		Merger Related Indemnification, Arbitration Loss, and SEC Matter		Gains and Losses on Dispositions		Impairment Losses		Pension and OPEB Actuarial and Settlement Gains and Losses		Tax Adjustment		Non-GAAP Results
Costs of services (excludes depreciation and amortization and restructuring costs)		$	14,086		$	—	$	(2)	$	—	$	(190)	$	—	$	—	$	—	$	—	$	13,894
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)		2,066			—		(363)		—		—		—		—		—		—		1,703
Income from continuing operations, before taxes		654			551		358		530		190		(2,004)		519		41		—		839
Income tax expense (benefit)		800			92		87		121		49		(920)		115		10		(142)		212
(Loss) income before income taxes																								(Loss) income before income taxes	(885)			216		16		402		83		(190)		19		1,431		—		1,092
Income tax (benefit) expense																								Income tax (benefit) expense	(319)			44		3		81		31		25		4		291		120		280
Net (loss) income	Net (loss) income	(146)			459		271		409		141		(1,084)		404		31		142		627			Net (loss) income	(566)			172		13		321		52		(215)		15		1,140		(120)		812
Less: net income attributable to non-controlling interest, net of tax	Less: net income attributable to non-controlling interest, net of tax	3			—		—		—		—		—		—		—		—		3			Less: net income attributable to non-controlling interest, net of tax	2			—		—		—		—		—		—		2		—		4
Net (loss) income attributable to DXC common stockholders	Net (loss) income attributable to DXC common stockholders	$	(149)		$	459	$	271	$	409	$	141	$	(1,084)	$	404	$	31	$	142	$	624		Net (loss) income attributable to DXC common stockholders	$	(568)		$	172	$	13	$	321	$	52	$	(215)	$	15	$	1,138	(120)		$	808

Effective Tax Rate	Effective Tax Rate	122.3		%																	25.3		%	Effective Tax Rate	36.0		%																	25.6		%

Basic EPS	Basic EPS	$	(0.59)		$	1.81	$	1.07	$	1.61	$	0.55	$	(4.27)	$	1.59	$	0.12	$	0.56	$	2.46		Basic EPS	$	(2.48)		$	0.75	$	0.06	$	1.40	$	0.23	$	(0.94)	$	0.07	$	4.97	$	(0.52)	$	3.53
Diluted EPS	Diluted EPS	$	(0.59)		$	1.79	$	1.06	$	1.59	$	0.55	$	(4.22)	$	1.57	$	0.12	$	0.55	$	2.43		Diluted EPS	$	(2.48)		$	0.74	$	0.06	$	1.38	$	0.22	$	(0.92)	$	0.06	$	4.89	$	(0.52)	$	3.47

Weighted average common shares outstanding for:	Weighted average common shares outstanding for:																							Weighted average common shares outstanding for:
Basic EPS	Basic EPS	254.14			254.14		254.14		254.14		254.14		254.14		254.14		254.14		254.14		254.14			Basic EPS	228.99			228.99		228.99		228.99		228.99		228.99		228.99		228.99		228.99		228.99
Diluted EPS	Diluted EPS	254.14			256.86		256.86		256.86		256.86		256.86		256.86		256.86		256.86		256.86			Diluted EPS	228.99			232.62		232.62		232.62		232.62		232.62		232.62		232.62		232.62		232.62


	Fiscal Year Ended March 31, 2022
(in millions, except per-share amounts)	As Reported			Restructuring Costs		Transaction, Separation and Integration- Related Costs		Amortization of Acquired Intangible Assets		Impairment Losses		Gains and Losses on Dispositions		Pension and OPEB Actuarial and Settlement Gains and Losses		Debt Extinguishment Costs		Tax Adjustment		Non-GAAP Results
Income before income taxes	1,141			318		26		434		31		(341)		(684)		311		—		1,236
Income tax expense	405			65		7		90		7		(104)		(171)		73		(43)		329
Net income	736			253		19		344		24		(237)		(513)		238		43		907
Less: net income attributable to non-controlling interest, net of tax	18			—		—		—		—		—		(5)		—		—		13
Net income attributable to DXC common stockholders	$	718		$	253	$	19	$	344	$	24	$	(237)	$	(508)	$	238	$	43	$	894

Effective Tax Rate	35.5		%																	26.6		%

Basic EPS	$	2.87		$	1.01	$	0.08	$	1.38	$	0.10	$	(0.95)	$	(2.03)	$	0.95	$	0.17	$	3.58
Diluted EPS	$	2.81		$	0.99	$	0.07	$	1.35	$	0.09	$	(0.93)	$	(1.99)	$	0.93	$	0.17	$	3.50

Weighted average common shares outstanding for:
Basic EPS	250.02			250.02		250.02		250.02		250.02		250.02		250.02		250.02		250.02		250.02
Diluted EPS	255.21			255.21		255.21		255.21		255.21		255.21		255.21		255.21		255.21		255.21


	Fiscal Year 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		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 non-controlling 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


		As of				As of
		March 31, 2021	March 31, 2020	March 31, 2019		March 31, 2023	March 31, 2022	March 31, 2021
Days of sales outstanding in accounts receivable	Days of sales outstanding in accounts receivable	67	65	64	Days of sales outstanding in accounts receivable	67	69	66

Days of purchases outstanding in accounts payable	Days of purchases outstanding in accounts payable	(41)	(66)	(69)	Days of purchases outstanding in accounts payable	(50)	(45)	(40)
Cash conversion cycle	Cash conversion cycle	26	(1)	(5)	Cash conversion cycle	17	24	26


(in millions)	Less than 1 year		2-3 years		4-5 years		More than 5 years		Total
Debt(1)	$	555	$	908	$	2,173	$	737	$	4,373
Finance lease liabilities	398		425		71		—		894
Operating Leases(2)	452		629		305		208		1,594
Purchase Obligations(3)	1,487		1,650		352		15		3,504
U.S. Tax Reform - Transition Tax(4)	23		43		109		—		175
U.S. FICA payroll tax deferral	33		33		—		—		66
U.K. VAT deferral	66		—		—		—		66
Interest and preferred dividend payments(5)	132		241		162		104		639
Total(6)	$	3,146	$	3,929	$	3,172	$	1,064	$	11,311


	~~As of~~
~~(in millions)~~	~~March 31, 2021~~
~~Cash and cash equivalents~~	$	~~2,968~~
~~Available borrowings under our revolving credit facility~~	~~4,000~~

~~Total~~Our liquidity	$	~~6,968~~




			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID No.34)			6659
Consolidated Balance Sheets as of March 31, ~~2021~~2023 and March 31, ~~2020~~2022			6861
Consolidated Statements of Operations for the Fiscal Years Ended March 31, ~~2021,~~2023, March 31, ~~2020~~2022 and March 31, ~~2019~~2021			6962
Consolidated Statements of Comprehensive (Loss) Income ~~(Loss)~~ for the Fiscal Years Ended March 31, ~~2021,~~2023, March 31, ~~2020~~2022 and March 31, ~~2019~~2021			7063
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, ~~2021,~~2023, March 31, ~~2020~~2022 and March 31, ~~2019~~2021			7164
Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, ~~2021,~~2023, March 31, ~~2020~~2022 and March 31, ~~2019~~2021			7366

Notes to Consolidated Financial Statements
Note 1–Summary of Significant Accounting Policies			7567
Note 2–~~Acquisitions~~Divestitures			77
Note 3 –Earnings (Loss) Per Share			78
Note 4 –Receivables			79
Note 5 –Leases			80
Note 6 –Fair Value			83
Note 7 –Derivative Instruments			84
Note 8 –Property and Equipment			86
Note ~~3–Divestitures~~9 –Intangible Assets			87
Note 1 0 –Goodwill			87
Note 1 1 –Debt			89
Note ~~4–Assets Held For Sale~~1 2 –Revenue			90
Note 1 3 –Restructuring Costs			92
Note 1 4 –Pension and Other Benefit Plans			93
Note ~~5–Earnings (Loss) Per Share~~1 5 –Income Taxes			95100
Note ~~6–Receivables~~1			966
~~Note 7–Leases~~			98
~~Note 8–Fair Value~~			~~101~~
~~Note 9–Derivative Instruments~~			~~103~~
~~Note 10–Property and Equipment~~			~~106~~
~~Note 11–Intangible Assets~~–Stockholders' Equity			107
Note ~~12–Goodwill~~1 7 –Stock Incentive Plans			108
Note ~~13–Income Taxes~~1			~~109~~8
~~Note 14–Debt~~			~~118~~
~~Note 15–Pension and Other Benefit Plans~~			~~121~~
~~Note 16–Stockholders' Equity~~			~~128~~
~~Note 17–Stock Incentive Plans~~			~~131~~
~~Note 18–~~–Cash Flows			~~135~~112
Note 19–Other Expense (Income), Net			~~135~~113
Note ~~20–~~2 0 –Segment and Geographic Information			~~136~~113
Note ~~21–Revenue~~2			~~139~~1
~~Note 22–Restructuring Costs~~			~~140~~
~~Note 23–~~–Commitments and Contingencies			~~144~~

~~Note 24–Subsequent Events~~			~~150~~116


		As of					As of
(in millions, except per share and share amounts)	(in millions, except per share and share amounts)	March 31, 2021		March 31, 2020		(in millions, except per share and share amounts)	March 31, 2023		March 31, 2022
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	2,968	$	3,679	Cash and cash equivalents	$	1,858	$	2,672
Receivables and contract assets, net of allowance for doubtful accounts of $91 and $74		4,156		4,392
Receivables and contract assets, net of allowance for doubtful accounts of $47 and $55						Receivables and contract assets, net of allowance for doubtful accounts of $47 and $55	3,441		3,854
Prepaid expenses	Prepaid expenses	567		646		Prepaid expenses	565		617
Other current assets	Other current assets	357		270		Other current assets	255		268
Assets held for sale	Assets held for sale	160		0		Assets held for sale	5		35
Total current assets	Total current assets	8,208		8,987		Total current assets	6,124		7,446
Intangible assets, net of accumulated amortization of $4,422 and $4,347		4,043		5,731
Operating right-of-use assets, net		1,366		1,428
Intangible assets, net of accumulated amortization of $5,670 and $5,124						Intangible assets, net of accumulated amortization of $5,670 and $5,124	2,569		3,378
Operating lease assets, net						Operating lease assets, net	909		1,133
Goodwill	Goodwill	641		2,017		Goodwill	539		617
Deferred income taxes, net	Deferred income taxes, net	289		265		Deferred income taxes, net	460		221
Property and equipment, net of accumulated depreciation of $4,121 and $3,818		2,946		3,547
Property and equipment, net of accumulated depreciation of $4,111 and $3,998						Property and equipment, net of accumulated depreciation of $4,111 and $3,998	1,979		2,412
Other assets	Other assets	4,192		4,031		Other assets	3,247		4,850
Assets held for sale - non-current	Assets held for sale - non-current	353		0		Assets held for sale - non-current	18		82
Total Assets	Total Assets	$	22,038	$	26,006	Total Assets	$	15,845	$	20,139
LIABILITIES and EQUITY	LIABILITIES and EQUITY					LIABILITIES and EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Short-term debt and current maturities of long-term debt	Short-term debt and current maturities of long-term debt	$	1,167	$	1,276	Short-term debt and current maturities of long-term debt	$	500	$	900
Accounts payable	Accounts payable	914		1,598		Accounts payable	782		840
Accrued payroll and related costs	Accrued payroll and related costs	698		630		Accrued payroll and related costs	569		570
Current operating lease liabilities		418		482
Operating lease liabilities						Operating lease liabilities	317		388
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities	3,358		2,801		Accrued expenses and other current liabilities	1,836		2,882
Deferred revenue and advance contract payments	Deferred revenue and advance contract payments	1,079		1,021		Deferred revenue and advance contract payments	1,054		1,053
Income taxes payable	Income taxes payable	398		87		Income taxes payable	120		197
Liabilities related to assets held for sale	Liabilities related to assets held for sale	118		0		Liabilities related to assets held for sale	9		23
Total current liabilities	Total current liabilities	8,150		7,895		Total current liabilities	5,187		6,853
Long-term debt, net of current maturities	Long-term debt, net of current maturities	4,345		8,672		Long-term debt, net of current maturities	3,900		4,065
Non-current deferred revenue	Non-current deferred revenue	622		735		Non-current deferred revenue	788		862
Non-current income tax liabilities and deferred income taxes						Non-current income tax liabilities and deferred income taxes	587		994
Non-current operating lease liabilities	Non-current operating lease liabilities	1,038		1,063		Non-current operating lease liabilities	648		815
Non-current pension obligations	Non-current pension obligations	793		761		Non-current pension obligations	463		590
Non-current income tax liabilities and deferred tax liabilities		854		1,157
Other long-term liabilities	Other long-term liabilities	908		594		Other long-term liabilities	449		546
Liabilities related to assets held for sale - non-current	Liabilities related to assets held for sale - non-current	20		0		Liabilities related to assets held for sale - non-current	3		39
Total Liabilities	Total Liabilities	16,730		20,877		Total Liabilities	12,025		14,764
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies
DXC stockholders’ equity:	DXC stockholders’ equity:					DXC stockholders’ equity:
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; NaN issued as of March 31, 2021 and March 31, 2020		0		0
Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 257,052,533 as of March 31, 2021 and 255,674,040 as of March 31, 2020		3		3
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued as of March 31, 2023 and March 31, 2022						Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued as of March 31, 2023 and March 31, 2022	—		—
Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 218,058,482 as of March 31, 2023 and 240,508,348 as of March 31, 2022						Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 218,058,482 as of March 31, 2023 and 240,508,348 as of March 31, 2022	2		3
Additional paid-in capital	Additional paid-in capital	10,761		10,714		Additional paid-in capital	9,121		10,057
Accumulated deficit	Accumulated deficit	(5,331)		(5,177)		Accumulated deficit	(4,665)		(4,450)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(302)		(603)		Accumulated other comprehensive loss	(774)		(385)
Treasury stock, at cost, 2,458,027 and 2,148,708 shares as of March 31, 2021 and March 31, 2020		(158)		(152)
Treasury stock, at cost, 3,333,592 and 2,878,079 shares as of March 31, 2023 and March 31, 2022						Treasury stock, at cost, 3,333,592 and 2,878,079 shares as of March 31, 2023 and March 31, 2022	(187)		(173)
Total DXC stockholders’ equity	Total DXC stockholders’ equity	4,973		4,785		Total DXC stockholders’ equity	3,497		5,052
Non-controlling interest in subsidiaries	Non-controlling interest in subsidiaries	335		344		Non-controlling interest in subsidiaries	323		323
Total Equity	Total Equity	5,308		5,129		Total Equity	3,820		5,375
Total Liabilities and Equity	Total Liabilities and Equity	$	22,038	$	26,006	Total Liabilities and Equity	$	15,845	$	20,139


Borrowings for USPS spin transaction		0		0		1,114
Proceeds from bond issuance		993		0		753

Proceeds from stock options and other common stock transactions	Proceeds from stock options and other common stock transactions	1		11		47		Proceeds from stock options and other common stock transactions	2		13		1
Taxes paid related to net share settlements of share-based compensation awards	Taxes paid related to net share settlements of share-based compensation awards	(7)		(16)		(54)		Taxes paid related to net share settlements of share-based compensation awards	(17)		(18)		(7)

Repurchase of common stock and advance payment for accelerated share repurchase		0		(736)		(1,344)
Repurchase of common stock								Repurchase of common stock	(669)		(628)		—
Dividend payments	Dividend payments	(53)		(214)		(210)		Dividend payments	—		—		(53)

Payments for debt extinguishment costs	Payments for debt extinguishment costs	(41)		0		0		Payments for debt extinguishment costs	—		(344)		(41)
Other financing activities, net	Other financing activities, net	(21)		(45)		47		Other financing activities, net	(6)		(79)		(21)
Net cash (used in) provided by financing activities		(5,476)		657		(1,663)
Net cash used in financing activities								Net cash used in financing activities	(1,507)		(1,818)		(5,476)
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	39		(90)		(19)		Effect of exchange rate changes on cash and cash equivalents	(97)		29		39
Net (decrease) increase in cash and cash equivalents including cash classified within current assets held for sale		(648)		780		170
Less: cash classified within current assets held for sale		(63)		0		0
Net (decrease) increase in cash and cash equivalents		(711)		780		170
Net decrease in cash and cash equivalents including cash classified within current assets held for sale								Net decrease in cash and cash equivalents including cash classified within current assets held for sale	(824)		(348)		(648)
Cash classified within current assets held for sale								Cash classified within current assets held for sale	10		52		(63)
Net decrease in cash and cash equivalents								Net decrease in cash and cash equivalents	(814)		(296)		(711)
Cash and cash equivalents at beginning of year	Cash and cash equivalents at beginning of year	3,679		2,899		2,729		Cash and cash equivalents at beginning of year	2,672		2,968		3,679
Cash and cash equivalents at end of year	Cash and cash equivalents at end of year	$	2,968	$	3,679	$	2,899	Cash and cash equivalents at end of year	$	1,858	$	2,672	$	2,968


(in millions, except shares in thousands)	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock(1)		Total DXC Equity		Non- Controlling Interest		Total Equity
	Shares	Amount
Balance at March 31, 2018	286,393	$	3	$	12,210	$	1,301	$	58	$	(85)	$	13,487	$	350	$	13,837
Cumulative effect of adopting the new revenue standard						114						114				114
Net income						1,257						1,257		5		1,262
Other comprehensive loss								(302)				(302)		(3)		(305)
Share-based compensation expense				74								74				74
Acquisition of treasury stock										(51)		(51)				(51)
Share repurchase program	(19,343)			(845)		(494)						(1,339)				(1,339)
Stock option exercises and other common stock transactions	3,164			37								37				37
Dividends declared ($0.76 per share)						(209)						(209)				(209)
Non-controlling interest distributions and other												0		(29)		(29)
Divestiture of USPS				(175)		(1,491)						(1,666)				(1,666)
Balance at March 31, 2019	270,214	$	3	$	11,301	$	478	$	(244)	$	(136)	$	11,402	$	323	$	11,725


Level 1:			Quoted prices unadjusted for identical assets or liabilities in an active market.
Level 2:			Quoted prices for similar assets or liabilities in an active market, quoted prices for identical similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
Level 3:			Unobservable inputs that reflect the entity's own assumptions which market participants would use in pricing the asset or liability.


(in millions)	HPS Business		Other		Total
Assets:
Cash and cash equivalents	$	28	$	35	$	63
Accounts receivable, net	64		17		81
Prepaid expenses	6		5		11
Other current assets	0		5		5
Total current assets held for sale	98		62		160
Intangible assets, net	101		16		117
Operating right-of-use assets, net	5		18		23
Goodwill	80		9		89
Deferred income taxes, net	43		0		43
Property and equipment, net	4		52		56
Other assets	16		9		25
Total non-current assets held for sale	249		104		353
Total assets held for sale	$	347	$	166	$	513

Liabilities:
Accounts payable	$	4	$	8	$	12
Accrued payroll and related costs	7		2		9
Current operating lease liabilities	2		17		19
Accrued expenses and other current liabilities	13		13		26
Deferred revenue and advance contract payments	46		6		52
Total current liabilities related to assets held for sale	72		46		118
Non-current deferred revenue	10		0		10
Long-term operating lease liabilities	3		1		4
Income tax liabilities and deferred tax liabilities	1		0		1
Other long term liabilities	3		2		5
Total long-term liabilities related to assets held for sale	17		3		20
Total liabilities related to assets held for sale	$	89	$	49	$	138


		As of and for Fiscal Years Ended				As of and for Fiscal Years Ended
(in millions)	(in millions)	March 31, 2021		March 31, 2020			(in millions)	March 31, 2023		March 31, 2022
Beginning balance	Beginning balance	$	74	$	60		Beginning balance	$	55	$	91
Impact of adoption of the Credit Loss Standard		4		0

Provisions for losses on accounts receivable	Provisions for losses on accounts receivable	53		3			Provisions for losses on accounts receivable	(1)		5
Other adjustments to allowance and write-off's		(40)		11
Other adjustments to allowance and write-offs							Other adjustments to allowance and write-offs	(7)		(41)
Ending balance	Ending balance	$	91	$	74		Ending balance	$	47	$	55


(in millions)	As of March 31, 2021		As of March 31, 2020
Beginning balance	$	103	$	0
Transfers of receivables	417		996
Collections	(420)		(879)
Change in funding availability	2		(14)
Facility amendments	(102)		0
Ending balance	$	0	$	103


		For the Fiscal Year Ended					For the Fiscal Year Ended
(in millions)	(in millions)	March 31, 2021		March 31, 2020		(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Operating lease cost	Operating lease cost	$	616	$	698	Operating lease cost	$	404	$	484	$	616
Short-term lease cost	Short-term lease cost	53		49		Short-term lease cost	35		40		53
Variable lease cost	Variable lease cost	56		46		Variable lease cost	73		73		56
Sublease income	Sublease income	(40)		(45)		Sublease income	(18)		(32)		(40)
Total operating costs	Total operating costs	$	685	$	748	Total operating costs	$	494	$	565	$	685

Finance lease cost:
Amortization of right-of-use assets		$	433	$	405
Interest on lease liabilities		45		65
Total finance lease cost		$	478	$	470


		As of
(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022
ROU operating lease assets	Operating right-of-use assets, net	$	909	$	1,133

Operating lease liabilities	Current operating lease liabilities	$	317	$	388
Operating lease liabilities	Non-current operating lease liabilities	648		815
Total operating lease liabilities		$	965	$	1,203


	Fiscal Year
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	334	$	272	$	181	$	88	$	68	$	94	$	1,037
Less: imputed interest													(72)
Total operating lease liabilities													$	965


Fiscal year	Operating Leases
(in millions)	Real Estate		Equipment		Finance Leases
2022	$	411	$	41	$	418
2023	335		23		290
2024	260		11		152
2025	190		5		59
2026	108		2		14
Thereafter	207		1		0
Total lease payments	1,511		83		933
Less: imputed interest	135		3		39
Total payments	$	1,376	$	80	$	894


				Fair Value Hierarchy							Fair Value Hierarchy
(in millions)	(in millions)	As of March 31, 2021								(in millions)	As of March 31, 2023
Assets:	Assets:	Fair Value		Level 1		Level 2		Level 3		Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	Money market funds and money market deposit accounts	$	12	$	12	$	0	$	0	Money market funds and money market deposit accounts	$	75	$	75	$	—	$	—

Time deposits(1)	Time deposits(1)	78		78		0		0		Time deposits(1)	37		37		—		—

Other securities(2)	Other securities(2)	57		0		55		2		Other securities(2)	48		—		46		2

Total assets	Total assets	$	147	$	90	$	55	$	2	Total assets	$	160	$	112	$	46	$	2

Liabilities:	Liabilities:									Liabilities:
Contingent consideration	Contingent consideration	$	27	$	0	$	0	$	27	Contingent consideration	$	2	$	—	$	—	$	2

Total liabilities	Total liabilities	$	27	$	0	$	0	$	27	Total liabilities	$	2	$	—	$	—	$	2


	Derivative Assets
		As of
(in millions)	Balance Sheet Line Item	March 31, 2021		March 31, 2020

Derivatives designated for hedge accounting:
Foreign currency forward contracts	Other current assets	9		0

Total fair value of derivatives designated for hedge accounting		$	9	$	0

Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Other current assets	$	3	$	16
Total fair value of derivatives not designated for hedge accounting		$	3	$	16


		Derivative Liabilities
							As of						As of
(in millions)	(in millions)						Balance Sheet Line Item	March 31, 2021		March 31, 2020		(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022

Derivatives designated for hedge accounting:	Derivatives designated for hedge accounting:					Derivatives designated for hedge accounting:
Foreign currency forward contracts	Foreign currency forward contracts						Accrued expenses and other current liabilities	$	5	$	20	Foreign currency forward contracts	Other current assets	$	6	$	18
													Accrued expenses and other current liabilities	$	13	$	—
Total fair value of derivatives designated for hedge accounting:		$	5	$	20

Derivatives not designated for hedge accounting:	Derivatives not designated for hedge accounting:					Derivatives not designated for hedge accounting:
Foreign currency forward contracts	Foreign currency forward contracts						Accrued expenses and other current liabilities	$	3	$	12	Foreign currency forward contracts	Other current assets	$	15	$	9
Total fair value of derivatives not designated for hedge accounting		$	3	$	12
													Accrued expenses and other current liabilities	$	16	$	15


	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 March 31, 2020							As of March 31, 2023						As of March 31, 2022
(in millions)	(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		(in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Software	Software	$	4,048	$	2,614	$	1,434	Software	$	4,009	$	3,290	$	719	$	4,063	$	3,039	$	1,024

Customer related intangible assets	Customer related intangible assets	5,795		1,697		4,098		Customer related intangible assets	3,927		2,260		1,667		4,148		1,995		2,153
Other intangible assets	Other intangible assets	235		36		199		Other intangible assets	303		120		183		291		90		201
Total intangible assets	Total intangible assets	$	10,078	$	4,347	$	5,731	Total intangible assets	$	8,239	$	5,670	$	2,569	$	8,502	$	5,124	$	3,378


(in millions)	GBS		GIS		Total


Balance as of March 31, 2019, net	4,599		3,007		7,606

Acquisitions	1,288		70		1,358

Impairment Losses	(3,789)		(3,005)		(6,794)
Foreign currency translation	(81)		(72)		(153)

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	$	0	$	2,017


(in millions)	GBS		GIS		Total


Balance as of March 31, 2021, net	$	641	$	—	$	641

Divestitures	(2)		—		(2)
Assets held for sale	(6)		—		(6)
Foreign currency translation	(16)		—		(16)
Balance as of March 31, 2022, net	$	617	$	—	$	617

Goodwill, gross	5,107		5,066		10,173
Accumulated impairment losses	(4,490)		(5,066)		(9,556)
Balance as of March 31, 2022, net	$	617	$	—	$	617