Exhibit 12.1
DXC TECHNOLOGY COMPANY
Computation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(unaudited)
| DXC Technology Company | ||||||||||||||||||||||||
| Three months | Historical Computer Sciences Corporation | |||||||||||||||||||||||
| ended | Fiscal years ended | |||||||||||||||||||||||
(in millions, except ratios) | June 30, 2017 | March 31, 2017 | April 1, 2016 | April 3, 2015 | March 28, 2014 | March 29, 2013 | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investees | $ | 185 | $ | (174 | ) | $ | 10 | $ | (671 | ) | $ | 694 | $ | (249 | ) | |||||||||
Fixed charges | 173 | 166 | 271 | 172 | 193 | 235 | ||||||||||||||||||
Less: Preference security dividend requirements of consolidated subsidiaries | (1 | ) | (1 | ) | (2 | ) | (3 | ) | (2 | ) | — | |||||||||||||
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Earnings as adjusted | $ | 357 | $ | (9 | ) | $ | 279 | $ | (502 | ) | $ | 885 | $ | (14 | ) | |||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense(a) | $ | 76 | $ | 117 | $ | 123 | $ | 126 | $ | 128 | $ | 165 | ||||||||||||
Loss on early extinguishment of debt(b) | — | — | 97 | — | — | — | ||||||||||||||||||
Portion of rental expense representative of the interest factor(c) | 97 | 49 | 51 | 46 | 65 | 70 | ||||||||||||||||||
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Fixed Charges | $ | 173 | $ | 166 | $ | 271 | $ | 172 | $ | 193 | $ | 235 | ||||||||||||
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Combined fixed charges and preference dividends: | ||||||||||||||||||||||||
Interest expense(a) | $ | 76 | $ | 117 | $ | 123 | $ | 126 | $ | 128 | $ | 165 | ||||||||||||
Loss on early extinguishment of debt(b) | — | — | 97 | — | — | — | ||||||||||||||||||
Portion of rental expense representative of the interest factor(c) | 97 | 49 | 51 | 46 | 65 | 70 | ||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 1 | 1 | 2 | 3 | 2 | — | ||||||||||||||||||
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Combined fixed charges and preference dividends | $ | 174 | $ | 167 | $ | 273 | $ | 175 | $ | 195 | $ | 235 | ||||||||||||
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Ratios: | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 2.1 | — | (d) | 1.0 | — | (f) | 4.6 | — | (h) | |||||||||||||||
Ratio of earnings to combined fixed charges and preference dividends | 2.1 | — | (e) | 1.0 | — | (g) | 4.5 | — | (h) | |||||||||||||||
| (a) | Interest expense includes amortization of debt discount and deferred loan costs. |
| (b) | The fiscal 2016 loss on early extinguishment of debt is related to the Company’s redemption of all outstanding 6.50% term notes due March 2018. |
| (c) | One-third of the rent expense is the portion of rental expense deemed representative of the interest factor. |
| (d) | Earnings were insufficient to cover fixed charges during fiscal 2017 by $175 million. |
| (e) | Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2017 by $176 million. |
| (f) | Earnings were insufficient to cover fixed charges during fiscal 2015 by $674 million. |
| (g) | Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2015 by $677 million. |
| (h) | Earnings were insufficient to cover both fixed charges and combined fixed charges and preference dividends during fiscal 2013 by $249 million. |
