DXC TECHNOLOGY COMPANY
Calculation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | Fiscal Years Ended (a) |
| (in millions, except ratios) | | March 31, 2018 | | March 31, 2017 | | April 1, 2016 | | April 3, 2015 | | March 28, 2014 |
| Earnings: | | | | | | | | | | |
| | Pre-tax income from continuing operations before adjustment for income or loss from equity investees | | $ | 1,671 |
| | $ | (174 | ) | | $ | 10 |
| | $ | (671 | ) | | $ | 694 |
|
| | Fixed charges | | 615 |
| | 166 |
| | 271 |
| | 172 |
| | 193 |
|
| | Less: Preference security dividend requirements of consolidated subsidiaries | | (2 | ) | | (1 | ) | | (2 | ) | | (3 | ) | | (2 | ) |
| | Earnings as adjusted | | $ | 2,284 |
| | $ | (9 | ) | | $ | 279 |
| | $ | (502 | ) | | $ | 885 |
|
| | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | |
| | Interest expense (b) | | $ | 335 |
| | $ | 117 |
| | $ | 123 |
| | $ | 126 |
| | $ | 128 |
|
| | Loss on early extinguishment of debt(c) | | — |
| | — |
| | 97 |
| | — |
| | — |
|
| | Portion of rental expense representative of the interest factor (c) | | 280 |
| | 49 |
| | 51 |
| | 46 |
| | 65 |
|
| | Fixed Charges | | $ | 615 |
| | $ | 166 |
| | $ | 271 |
| | $ | 172 |
| | $ | 193 |
|
| | | | | | | | | | | | |
| Combined fixed charges and preference dividends: | | | | | | | | | | |
| | Interest expense (b) | | $ | 335 |
| | $ | 117 |
| | $ | 123 |
| | $ | 126 |
| | $ | 128 |
|
| | Loss on early extinguishment of debt(c) | | — |
| | — |
| | 97 |
| | — |
| | — |
|
| | Portion of rental expense representative of the interest factor (c) | | 280 |
| | 49 |
| | 51 |
| | 46 |
| | 65 |
|
| | Preference security dividend requirements of consolidated subsidiaries | | 2 |
| | 1 |
| | 2 |
| | 3 |
| | 2 |
|
| | Combined fixed charges and preference dividends | | $ | 617 |
| | $ | 167 |
| | $ | 273 |
| | $ | 175 |
| | $ | 195 |
|
| | | | | | | | | | | | |
| Ratios: | | | | | | | | | | |
| | Ratio of earnings to fixed charges | | 3.7 |
| | — |
| (e) | 1.0 |
| | — |
| (g) | 4.6 |
|
| | Ratio of earnings to combined fixed charges and preference dividends | | 3.7 |
| | — |
| (f) | 1.0 |
| | — |
| (h) | 4.5 |
|
| |
| (a) | The ratios presented are for (i) DXC for fiscal 2018 and (ii) CSC for fiscal 2017 and each preceding fiscal year. |
| |
| (b) | Interest expense includes amortization of debt discount and deferred loan costs. |
| |
| (c) | 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. |
| |
| (d) | One-third of the rent expense is the portion of rental expense deemed representative of the interest factor. |
| |
| (e) | Earnings were insufficient to cover fixed charges during fiscal 2017 by $175 million. |
| |
| (f) | Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2017 by $176 million. |
| |
| (g) | Earnings were insufficient to cover fixed charges during fiscal 2015 by $674 million. |
| |
| (h) | Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2015 by $677 million. |
