Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | May 23, 2022 | Sep. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-4850 | ||
Entity Registrant Name | DXC TECHNOLOGY CO | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 61-1800317 | ||
Entity Address, Address Line One | 20408 Bashan Drive | ||
Entity Address, Address Line Two | Suite 231 | ||
Entity Address, City or Town | Ashburn | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 20147 | ||
City Area Code | 703 | ||
Local Phone Number | 245-9700 | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,455,400,930 | ||
Entity Common Stock, Shares Outstanding | 230,683,660 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement relating to its 2022 Annual Meeting of Stockholders (the "2022 Proxy Statement"), which will be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after the registrant's fiscal year end of March 31, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. | ||
Entity Central Index Key | 0001688568 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $0.01 par value per share | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | DXC | ||
Security Exchange Name | NYSE | ||
1.750% Senior Notes Due 2026 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.750% Senior Notes Due 2026 | ||
Trading Symbol | DXC 26 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | McLean, Virginia |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,672 | $ 2,968 |
Receivables and contract assets, net of allowance for doubtful accounts of $55 and $91 | 3,854 | 4,156 |
Prepaid expenses | 617 | 567 |
Other current assets | 268 | 357 |
Assets held for sale | 35 | 160 |
Total current assets | 7,446 | 8,208 |
Intangible assets, net of accumulated amortization of $5,124 and $4,422 | 3,378 | 4,043 |
Operating right-of-use assets, net | 1,133 | 1,366 |
Goodwill | 617 | 641 |
Deferred income taxes, net | 221 | 289 |
Property and equipment, net of accumulated depreciation of $3,998 and $4,121 | 2,412 | 2,946 |
Other assets | 4,850 | 4,192 |
Assets held for sale - non-current | 82 | 353 |
Total Assets | 20,139 | 22,038 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 900 | 1,167 |
Accounts payable | 840 | 914 |
Accrued payroll and related costs | 570 | 698 |
Current operating lease liabilities | 388 | 418 |
Accrued expenses and other current liabilities | 2,882 | 3,358 |
Deferred revenue and advance contract payments | 1,053 | 1,079 |
Income taxes payable | 197 | 398 |
Liabilities related to assets held for sale | 23 | 118 |
Total current liabilities | 6,853 | 8,150 |
Long-term debt, net of current maturities | 4,065 | 4,345 |
Non-current deferred revenue | 862 | 622 |
Non-current operating lease liabilities | 815 | 1,038 |
Non-current pension obligations | 590 | 793 |
Non-current income tax liabilities and deferred tax liabilities | 994 | 854 |
Other long-term liabilities | 546 | 908 |
Liabilities related to assets held for sale - non-current | 39 | 20 |
Total Liabilities | 14,764 | 16,730 |
Commitments and contingencies | ||
DXC stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued as of March 31, 2022 and March 31, 2021 | 0 | 0 |
Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 240,508,348 as of March 31, 2022 and 257,052,533 as of March 31, 2021 | 3 | 3 |
Additional paid-in capital | 10,057 | 10,761 |
Accumulated deficit | (4,450) | (5,331) |
Accumulated other comprehensive loss | (385) | (302) |
Treasury stock, at cost, 2,878,079 and 2,458,027 shares as of March 31, 2022 and March 31, 2021 | (173) | (158) |
Total DXC stockholders’ equity | 5,052 | 4,973 |
Non-controlling interest in subsidiaries | 323 | 335 |
Total Equity | 5,375 | 5,308 |
Total Liabilities and Equity | $ 20,139 | $ 22,038 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 55 | $ 91 |
Accumulated amortization | 5,124 | 4,422 |
Accumulated depreciation | $ 3,998 | $ 4,121 |
DXC stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, issued (in shares) | 240,508,348 | 257,052,533 |
Common stock in treasury, at cost (in shares) | 2,878,079 | 2,458,027 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 16,265 | $ 17,729 | $ 19,577 |
Costs of services (excludes depreciation and amortization and restructuring costs) | 12,683 | 14,086 | 14,901 |
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 1,408 | 2,066 | 2,050 |
Depreciation and amortization | 1,717 | 1,970 | 1,942 |
Goodwill impairment losses | 0 | 0 | 6,794 |
Restructuring costs | 318 | 551 | 252 |
Interest expense | 204 | 361 | 383 |
Interest income | (65) | (98) | (165) |
Debt extinguishment costs | 311 | 41 | 0 |
Gain on disposition of businesses | (371) | (2,004) | 0 |
Gain on arbitration award | 0 | 0 | (632) |
Other (income) expense, net | (1,081) | 102 | (720) |
Total costs and expenses | 15,124 | 17,075 | 24,805 |
Income (loss) before income taxes | 1,141 | 654 | (5,228) |
Income tax expense | 405 | 800 | 130 |
Net income (loss) | 736 | (146) | (5,358) |
Less: net income attributable to non-controlling interest, net of tax | 18 | 3 | 11 |
Net income (loss) attributable to DXC common stockholders | $ 718 | $ (149) | $ (5,369) |
Income (loss) per common share: | |||
Basic (in dollars per share) | $ 2.87 | $ (0.59) | $ (20.76) |
Diluted (in dollars per share) | $ 2.81 | $ (0.59) | $ (20.76) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 736 | $ (146) | $ (5,358) | |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments, net of tax | [1] | (86) | 300 | (323) |
Cash flow hedges adjustments, net of tax | [2] | 11 | 19 | (17) |
Available-for-sale securities, net of tax | [3] | 0 | (9) | 0 |
Pension and other post-retirement benefit plans, net of tax: | ||||
Prior service cost, net of tax | [4] | 9 | 7 | 0 |
Amortization of prior service cost, net of tax | [5] | (6) | (13) | (8) |
Pension and other post-retirement benefit plans, net of tax | 3 | (6) | (8) | |
Other comprehensive income (loss), net of taxes | (72) | 304 | (348) | |
Comprehensive income (loss) | 664 | 158 | (5,706) | |
Less: comprehensive income attributable to non-controlling interest | 29 | 6 | 22 | |
Comprehensive income (loss) attributable to DXC common stockholders | $ 635 | $ 152 | $ (5,728) | |
[1] | Tax expense (benefit) related to foreign currency translation adjustments was $5, $(27), and $(2) for the fiscal years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively. | |||
[2] | Tax expense (benefit) related to cash flow hedge adjustments was $2, $6, and $(5) for the fiscal years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively. | |||
[3] | Tax benefit related to available-for-sale securities was $0, $1, and $0 for the fiscal years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively. | |||
[4] | Tax expense related to prior service costs was $2, $2, and $0 for the fiscal years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively. | |||
[5] | Tax benefit related to amortization of prior service costs was $2, $4, and $1 for the fiscal years ended March 31, 2022, March 31, 2021, and March 31, 2020, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax expense (benefit) | $ 5 | $ (27) | $ (2) |
Cash flow hedges adjustment, tax expense (benefit) | 2 | 6 | (5) |
Available-for-sale securities, tax benefit | 0 | 1 | 0 |
Prior service cost, tax expense | 2 | 2 | 0 |
Amortization of prior service cost, tax benefit | $ 2 | $ 4 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 736 | $ (146) | $ (5,358) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,742 | 1,988 | 1,960 |
Goodwill impairment losses | 0 | 0 | 6,794 |
Operating right-of-use expense | 484 | 616 | 698 |
Pension & other post-employment benefits, actuarial & settlement (gains) losses | (684) | 519 | (244) |
Share-based compensation | 101 | 56 | 68 |
Deferred taxes | 255 | (403) | (56) |
(Gain) loss on dispositions | (421) | (1,983) | 1 |
Provision for losses on accounts receivable | 5 | 53 | 3 |
Unrealized foreign currency exchange (gains) losses | (12) | (36) | 24 |
Impairment losses and contract write-offs | 51 | 275 | 30 |
Debt extinguishment costs | 311 | 41 | 0 |
Amortization of debt issuance costs and discount (premium) | 0 | 3 | (4) |
Cash surrender value in excess of premiums paid | (24) | (3) | (12) |
Other non-cash charges, net | 15 | 1 | 0 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||
Decrease in receivables | 228 | 257 | 269 |
Increase in prepaid expenses and other current assets | (48) | (299) | (229) |
Decrease in accounts payable and accruals | (714) | (527) | (565) |
(Decrease) increase in income taxes payable and income tax liability | (315) | 434 | (197) |
Decrease in operating lease liability | (484) | (616) | (698) |
Increase (decrease) in advance contract payments and deferred revenue | 270 | (66) | (146) |
Other operating activities, net | 5 | (40) | 12 |
Net cash provided by operating activities | 1,501 | 124 | 2,350 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (254) | (261) | (350) |
Payments for transition and transformation contract costs | (209) | (261) | (281) |
Software purchased and developed | (295) | (254) | (235) |
Proceeds (payments) for acquisitions, net of cash acquired | 0 | 184 | (1,997) |
Business dispositions | 533 | 4,947 | 0 |
Cash collections related to deferred purchase price receivable | 0 | 159 | 671 |
Proceeds from sale of assets | 100 | 164 | 73 |
Short-term investing | 0 | 0 | (75) |
Proceeds from short-term investing | 24 | 0 | 38 |
Other investing activities, net | 41 | (13) | 19 |
Net cash (used in) provided by investing activities | (60) | 4,665 | (2,137) |
Cash flows from financing activities: | |||
Borrowings of commercial paper | 1,068 | 1,486 | 4,939 |
Repayments of commercial paper | (905) | (1,852) | (5,076) |
Borrowings under lines of credit | 0 | 2,500 | 1,500 |
Repayment of borrowings under lines of credit | 0 | (4,000) | 0 |
Borrowings on long-term debt | 19 | 0 | 2,198 |
Principal payments on long-term debt | (2,872) | (3,552) | (1,039) |
Payments on finance leases and borrowings for asset financing | (990) | (930) | (865) |
Proceeds from bond issuance | 2,918 | 993 | 0 |
Proceeds from stock options and other common stock transactions | 13 | 1 | 11 |
Taxes paid related to net share settlements of share-based compensation awards | (18) | (7) | (16) |
Repurchase of common stock and advance payment for accelerated share repurchase | (628) | 0 | (736) |
Dividend payments | 0 | (53) | (214) |
Payments for debt extinguishment costs | (344) | (41) | 0 |
Other financing activities, net | (79) | (21) | (45) |
Net cash (used in) provided by financing activities | (1,818) | (5,476) | 657 |
Effect of exchange rate changes on cash and cash equivalents | 29 | 39 | (90) |
Net (decrease) increase in cash and cash equivalents including cash classified within current assets held for sale | (348) | (648) | 780 |
Cash classified within current assets held for sale | 52 | (63) | 0 |
Net (decrease) increase in cash and cash equivalents | (296) | (711) | 780 |
Cash and cash equivalents at beginning of year | 2,968 | 3,679 | 2,899 |
Cash and cash equivalents at end of year | $ 2,672 | $ 2,968 | $ 3,679 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Cumulative effect of adopting ASU 2016-13 | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative effect of adopting ASU 2016-13 | Accumulated Other Comprehensive Loss | Treasury Stock | Total DXC Equity | Total DXC EquityCumulative effect of adopting ASU 2016-13 | Non-Controlling Interest | |
Beginning balance (in shares) at Mar. 31, 2019 | 270,214 | |||||||||||
Beginning balance at Mar. 31, 2019 | $ 11,725 | $ 3 | $ 11,301 | $ 478 | $ (244) | $ (136) | [1] | $ 11,402 | $ 323 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effect of adopting ASU 2016-13 | Accounting Standards Update 2016-13 [Member] | |||||||||||
Net income (loss) | $ (5,358) | (5,369) | (5,369) | 11 | ||||||||
Other comprehensive income (loss) | (348) | (359) | (359) | 11 | ||||||||
Share-based compensation expense | 70 | 70 | 70 | |||||||||
Acquisition of treasury stock | (16) | (16) | [1] | (16) | ||||||||
Share repurchase program (in shares) | (15,934) | |||||||||||
Share repurchase program | (736) | (669) | (67) | (736) | ||||||||
Stock option exercises and other common stock transactions (in shares) | 1,394 | |||||||||||
Stock option exercises and other common stock transactions | 12 | 12 | 12 | |||||||||
Dividends declared | (219) | (219) | (219) | |||||||||
Non-controlling interest distributions and other | (1) | 0 | (1) | |||||||||
Ending balance (in shares) at Mar. 31, 2020 | 255,674 | |||||||||||
Ending balance at Mar. 31, 2020 | 5,129 | $ (4) | $ 3 | 10,714 | (5,177) | $ (4) | (603) | (152) | [1],[2] | 4,785 | $ (4) | 344 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (146) | (149) | (149) | 3 | ||||||||
Other comprehensive income (loss) | 304 | 301 | 301 | 3 | ||||||||
Share-based compensation expense | 46 | 46 | 46 | |||||||||
Acquisition of treasury stock | (6) | (6) | [2] | (6) | ||||||||
Stock option exercises and other common stock transactions (in shares) | 1,379 | |||||||||||
Stock option exercises and other common stock transactions | 1 | 1 | 1 | |||||||||
Non-controlling interest distributions and other | (16) | (1) | (1) | (15) | ||||||||
Ending balance (in shares) at Mar. 31, 2021 | 257,053 | |||||||||||
Ending balance at Mar. 31, 2021 | 5,308 | $ 3 | 10,761 | (5,331) | (302) | (158) | [2],[3] | 4,973 | 335 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 736 | 718 | 718 | 18 | ||||||||
Other comprehensive income (loss) | (72) | (83) | (83) | 11 | ||||||||
Share-based compensation expense | 80 | 80 | 80 | |||||||||
Acquisition of treasury stock | (15) | (15) | [3] | (15) | ||||||||
Share repurchase program (in shares) | (18,819) | |||||||||||
Share repurchase program | (634) | (796) | 162 | (634) | ||||||||
Stock option exercises and other common stock transactions (in shares) | 2,274 | |||||||||||
Stock option exercises and other common stock transactions | 12 | 12 | 12 | |||||||||
Non-controlling interest distributions and other | (40) | 1 | 1 | (41) | ||||||||
Ending balance (in shares) at Mar. 31, 2022 | 240,508 | |||||||||||
Ending balance at Mar. 31, 2022 | $ 5,375 | $ 3 | $ 10,057 | $ (4,450) | $ (385) | $ (173) | [3] | $ 5,052 | $ 323 | |||
[1] | 2,148,708 treasury shares as of March 31, 2020 | |||||||||||
[2] | 2,458,027 treasury shares as of March 31, 2021 | |||||||||||
[3] | 2,878,079 treasury shares as of March 31, 2022 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.84 | ||
Common stock in treasury, at cost (in shares) | 2,148,708 | 2,878,079 | 2,458,027 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business DXC Technology Company ("DXC" or the "Company") helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to deploy its Enterprise Technology Stack to deliver new levels of performance, competitiveness and customer experience. FDB Sale During the third quarter of fiscal 2022, a subsidiary of DXC entered into a purchase agreement to sell (the "FDB Sale") its German financial services subsidiary ("FDB" or the "FDB Business") to the FNZ Group ("FNZ") for €300 million (approximately $335 million as of March 31, 2022), subject to certain adjustments. The closing of the transaction is subject to certain conditions, including receipt of certain regulatory consents. At March 31, 2022, FDB held approximately $572 million in cash which primarily related to customer deposit liabilities. HPS Sale On April 1, 2021, DXC completed the sale of its healthcare provider software business ("HPS" or the "HPS Business") to Dedalus Holding S.p.A. ("Dedalus"). The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HPS Business for €468 million (approximately $551 million), subject to certain adjustments. See Note 3 - "Divestitures" for further information. HHS Sale On October 1, 2020, 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") to form Gainwell Technologies. The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business together with future services to be provided by the Company for a total enterprise value of $5.0 billion, subject to net working capital adjustments and assumed liabilities. See Note 3 - "Divestitures" for further information. Luxoft Acquisition On June 14, 2019, DXC completed its acquisition of Luxoft Holding, Inc. ("Luxoft"), a global digital strategy and software engineering firm (the "Luxoft Acquisition"). The acquisition builds on DXC’s unique value proposition as an end-to-end, mainstream IT and digital services market leader and strengthens the Company’s ability to design and deploy transformative digital solutions for customers at scale. See Note 2 - "Acquisitions" for further information. Basis of Presentation In order to make this report easier to read, DXC refers throughout to (i) the Consolidated Financial Statements as the “financial statements,” (ii) the Consolidated Statements of Operations as the “statements of operations,” (iii) the Consolidated Statement of Comprehensive Income (Loss) as the "statements of comprehensive income," (iv) the Consolidated Balance Sheets as the “balance sheets,” and (v) the Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references throughout to numbered “Notes” refer to the numbered Notes in these Notes to Consolidated Financial Statements. Use of Estimates The preparation of the financial statements, in accordance with GAAP, requires the Company's management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. The severity, magnitude and duration, as well as the economic consequences of the ongoing COVID-19 crisis, are uncertain, rapidly changing and difficult to predict. Therefore, accounting estimates and assumptions may change over time in response to the COVID-19 crisis and may change materially in future periods. Estimates are used for, but not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company's management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. Leases Effective April 1, 2019, the Company adopted ASU 2016-02, "Leases (ASC 842)" using the modified retrospective method. Refer to Note 7 - "Leases" for required disclosures. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether DXC obtains substantially all economic benefits from and has the ability to direct the use of the asset. Operating leases are included in operating right-of-use ("ROU") assets, net, current operating lease liabilities and non-current operating lease liabilities in DXC's balance sheets. Finance leases are included in property and equipment, net, short-term debt and current maturities of long-term debt and long-term debt, net of current maturities in DXC's balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating ROU assets and operating lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, DXC uses its incremental borrowing rate based on the information available at commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest that DXC would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. The rate is dependent on several factors, including the lease term, currency of the lease payments and the Company's credit ratings. Operating ROU assets also include any lease payments made and exclude lease incentives. The Company's lease terms may include options to extend or terminate the lease. Operating ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised. Lease arrangements generally do not contain any residual value guarantees or material restrictive covenants. Revenue Recognition The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenues are recognized when control of the promised goods or services is transferred to DXC's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. DXC determines revenue recognition through the five-step model as follows: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation DXC's IT outsourcing ("ITO") arrangements typically reflect a single performance obligation that comprises a series of distinct services which are substantially the same and provided over a period of time using the same measure of progress. Revenue derived from these arrangements is recognized over time based upon the level of services delivered in the distinct periods in which they are provided based on time increments. When other parties are involved in providing goods or services as part of our customer arrangements, DXC recognizes revenue on a gross basis as a principal when it controls goods or services before they are transferred to the customer. DXC's contracts often include upfront fees billed for activities to familiarize DXC with the customers' operations, take control over their administration and operation, and adapt them to DXC's solutions. Upfront fees are generally recognized ratably over the contract period, which approximates the manner in which the services are provided. These activities typically do not qualify as performance obligations, and the related revenues are allocated to the relevant performance obligations and recognized ratably over time as the performance obligation is satisfied during the period in which DXC provides the related service, which is typically the life of the contract. Software transactions that include multiple performance obligations are described below. For contracts with multiple performance obligations, DXC allocates the contract’s transaction price to each performance obligation based on the relative standalone selling price of each distinct good or service in the contract. Other than software sales involving multiple performance obligations, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. DXC's ITO arrangements may also contain embedded leases for equipment used to fulfill services. A contract with a customer includes an embedded lease when DXC grants the customer a right to control the use of an identified asset for a period of time in exchange for consideration. Embedded leases with customers are typically recognized either as sales type leases in which revenue and co st of sales is recognized upon lease commencement; or they may be recognized as operating leases in which revenue is recognized over the usage period. Where a contract contains an embedded lease, the contract’s transaction price is allocated to the contract performance obligations and the lease component based upon the relative standalone selling price. The transaction price of a contract is determined based on fixed and variable consideration. Variable consideration related to the Company’s ITO offerings often includes volume-based pricing that is allocated to the distinct days of the services to which the variable consideration pertains. However, in certain cases, estimates of variable consideration, including penalties, contingent milestone payments and rebates are necessary. The Company only includes estimates of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. These judgments involve consideration of historical and expected experience with the customer and other similar customers, and the facts and circumstances specific to the arrangement. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and software contracts for which revenue is recognized in the following manner: Time and materials contracts . Revenue is recognized over time at agreed-upon billing rates when services are provided. Unit-price contracts. Revenue is recognized over time based on unit metrics multiplied by the agreed upon contract unit price or when services are delivered. Fixed-price contracts. For certain fixed-price contracts, revenue is recognized over time using a method that measures the extent of progress towards completion of a performance obligation, generally using a cost-input method (referred to as the percentage-of-completion cost-to-cost method). Under the percentage-of-completion cost-to-cost method, revenue is recognized based on the proportion of total cost incurred to estimated total costs at completion. A performance obligation's estimate at completion includes all direct costs such as materials, labor, subcontractor costs, overhead, and a ratable portion of general and administrative costs. If output or input measures are not available or cannot be reasonably estimated, revenue is deferred until progress can be measured and costs are not deferred unless they meet the criteria for capitalization. Under the percentage-of-completion cost-to-cost method, progress towards completion is measured based on either achievement of specified contract milestones, costs incurred as a proportion of estimated total costs, or other measures of progress when appropriate. Profit in a given period is reported at the estimated profit margin to be achieved on the overall contract. Software contracts. Certain of DXC's arrangements involve the sale of DXC proprietary software, post contract customer support, and other software-related services. The standalone selling price generally is determined for each performance obligation using an adjusted market assessment approach based on the price charged where each deliverable is sold separately. In certain limited cases (typically for software licenses) when the historical selling price is highly variable, the residual approach is used. This approach allocates revenue to the performance obligation equal to the difference between the total transaction price and the observable standalone selling prices for the other performance obligations. Revenue from distinct software licenses is recognized at a point in time when the customer can first use the software license. If significant customization is required, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. Revenue for post contract customer support and other software services is recognized over time as those services are provided . Modifications. Co ntracts with our customers may be modified over the course of the contract term and may change the scope, price or both of the existing contract. Contract modifications are reviewed to determine whether they should be accounted for as part of the original contract, the termination of an existing contract and the creation of a new contract, or as a separate contract. Contract modifications are a separate contract when the modification provides additional goods and services that are distinct and the transaction price is at the standalone selling price. If the contract modification is part of the existing contract, a cumulative adjustment to revenue is recorded. If the contract modification represents the termination of the existing contract and the creation of a new contract, the modified transaction price is allocated to the prospective performance obligations and any embedded lease components. If a contract modification modifies an embedded lease component and the modification is not accounted for as a separate contract, the classification of the lease is reassessed. Practical Expedients and Exemptions DXC does not adjust the promised amount of consideration for the effects of a significant financing component when the period between when DXC transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. In addition, the Company reports revenue net of any revenue-based taxes assessed by a governmental authority that are imposed on and concurrent with specific revenue-producing transactions, such as sales taxes and value-added taxes. Contract Balances The timing of revenue recognition, billings and cash collections results in accounts receivable (billed receivables, unbilled receivables and contract assets) and deferred revenue and advance contract payments (contract liabilities) on the Company's balance sheets. In arrangements that contain an element of customized software solutions, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g. monthly) or upon achievement of certain contractual milestones. Generally, billing occurs subsequent to revenue recognition, sometimes resulting in contract assets if the related billing is conditional upon more than just the passage of time. However, the Company sometimes receives advances or deposits from customers, before revenue is recognized, which results in the generation of contract liabilities. Payment terms vary by type of product or service being provided as well as by customer, although the term between invoicing and when payment is due is generally an insignificant period of time. Costs to Obtain a Contract Certain sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The majority of sales commissions are paid based on the achievement of quota-based targets. These costs are deferred and amortized on a straight-line basis over an average period of benefit determined to be five years. The Company determined the period of benefit considering the length of its customer contracts, its technology, and other factors. The period of benefit approximates the average stated contract terms, excluding expected future renewals because sales commissions are paid upon contract renewal in a manner commensurate with the initial commissions. Some commission payments are not capitalized because they are expensed during the fiscal year as the related revenue is recognized. Capitalized sales commissions costs are classified within other assets and amortized in selling, general and administrative expenses. Costs to Fulfill a Contract Certain contract setup costs incurred upon initiation or renewal of an outsourcing contract that generate or enhance resources to be used in satisfying future performance obligations are capitalized when they are deemed recoverable. Judgment is applied to assess whether contract setup costs are capitalizable. Costs that generate or enhance resources often pertain to activities that enhance the capabilities of the services, improve customer experience, and establish a more effective and efficient IT environment. The Company recognizes these transition and transformation contract costs as other assets, which are amortized over the respective contract life. Pension and Other Benefit Plans The Company accounts for its pension, other post-retirement benefit ("OPEB"), defined contribution and deferred compensation plans using the guidance of ASC 710 "Compensation – General" and ASC 715 "Compensation – Retirement Benefits." The Company recognizes actuarial gains and losses and changes in fair value of plan assets in earnings at the time of plan remeasurement as a component of net periodic benefit expense. Typically plan remeasurement occurs annually during the fourth quarter of each fiscal year. The remaining components of pension and OPEB expense, primarily current period service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Inherent in the application of the actuarial methods are key assumptions, including, but not limited to, discount rates, expected long-term rates of return on plan assets, mortality rates, rates of compensation increases, and medical cost trend rates. Company management evaluates these assumptions annually and updates assumptions as necessary. The fair value of assets is determined based on the prevailing market prices or estimated fair value of investments when quoted prices are not available. Software Development Costs After establishing technological feasibility, and until such time as the software products are available for general release to customers, the Company capitalizes costs incurred to develop commercial software products to be sold, leased or otherwise marketed. Costs incurred to establish technological feasibility are charged to expense as incurred. Enhancements to software products are capitalized where such enhancements extend the life or significantly expand the marketability of the products. Amortization of capitalized software development costs is determined separately for each software product. Annual amortization expense is calculated based on the greater of the ratio of current gross revenues for each product to the total of current and anticipated future gross revenues for the product or the straight-line amortization method over the estimated useful life of the product. Unamortized capitalized software costs associated with commercial software products are periodically evaluated for impairment on a product-by-product basis by comparing the unamortized balance to the product’s net realizable value. The net realizable value is the estimated future gross revenues from that product reduced by the related estimated future costs. When the unamortized balance exceeds the net realizable value, the unamortized balance is written down to the net realizable value and an impairment charge is recorded. The Company capitalizes costs incurred to develop internal-use computer software during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. Capitalized costs associated with internal-use software are amortized on a straight-line basis over the estimated useful life of the software. Purchased software is capitalized and amortized over the estimated useful life of the software. Internal-use software assets are evaluated for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Share-Based Compensation Share-based awards are accounted for under the fair value method. The Company provides different forms of share-based compensation to its employees and non-employee directors. This generally includes restricted stock units ("RSUs"), including performance-based restricted stock units ("PSUs"). The fair value of the awards is determined on the grant date, based on the Company's closing stock price. For awards settled in shares, the Company recognizes compensation expense based on the grant-date fair value net of estimated forfeitures over the vesting period. For awards settled in ca sh, the Company recognizes compensation expense based on the fair value at each reporting date net of estimated forfeitures. The Company uses a Monte Carlo simulation model to compute the estimated fair value of PSUs with a market condition. This model includes assumptions regarding term, risk-free interest rates, expected volatility and dividend yields, which are evaluated each time the Company issues an award. The risk-free rate equals the yield, as of the Valuation Date on semi-annual zero-coupon U.S. Treasury rates. The dividend yield assumption is based on the respective fiscal year dividend payouts. Expected volatility is based on a historical approach, therefore the expected volatility assumption is based on the performance period of the award. Business Combinations Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's statements of operations. For contingent consideration recorded as a liability, the Company initially measures the amount at fair value as of the acquisition date and adjusts the liability, if needed, to fair value each reporting period. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recognized as income or expense. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. Goodwill Impairment Analysis The Company tests goodwill for impairment on an annual basis as of the first day of the second fiscal quarter and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company has defined its reporting units as its reportable segments. A significant amount of judgment is involved in determining whether an event indicating impairment has occurred between annual testing dates. Such indicators include: a significant decline in the Company's stock price, a significant decline in expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, the disposal of a significant component of a reporting unit and the testing for recoverability of a significant asset group within a reporting unit. The Company initially assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. This qualitative assessment considers all relevant factors specific to the reporting units, including macroeconomic conditions, industry and market considerations, overall financial performance, and relevant entity-specific events. If the Company determines that it is not more likely that the carrying amount for a reporting unit is less than its fair value, then subsequent quantitative goodwill impairment testing is not required. If the Company determines that it is more likely than not that the carrying amount for a reporting unit is greater than its fair value, then it proceeds with a subsequent quantitative goodwill impairment test. The Company has the option to bypass the initial qualitative assessment stage and proceed directly to the quantitative goodwill impairment test. The quantitative goodwill impairment test compares each reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if a reporting unit’s fair value is less than its carrying value, then an impairment charge is recorded in the amount of the excess . When the Company performs the quantitative goodwill impairment test for a reporting unit, it estimates the fair value of the reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value using a discount rate. Cash flow projections are based on management's estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of each reporting unit, the weighted-average cost of capital and its underlying forecasts. The market approach estimates fair value by applying performance-metric multiples to the reporting unit's prior and expected operating performance. The multiples are derived from comparable publicly traded companies that have operating and investment characteristics similar to those of the reporting unit. If the fair value of the reporting unit derived using one approach is significantly different from the fair value estimate using the other approach, the Company reevaluates its assumptions used in the two models. Assumptions are modified as considered appropriate under the circumstances until the two models yield similar and reasonable results. The fair values determined by the market approach and income approach, as described above, are weighted to determine the fair value for each reporting unit. The weighting ascribed to the market approach fair value assigned to each reporting unit is influenced by two primary factors: (1) the number of comparable publicly traded companies used in the market approach, and (2) the similarity of the operating and investment characteristics of the reporting units to the comparable publicly traded companies used in the market approach. If DXC performs a quantitative goodwill impairment test for all of its reporting units in conjunction with its annual goodwill testing, it also compares the sum of all of its reporting units’ fair values to the Company's market capitalization (per-share stock price multiplied by the number of shares outstanding) and calculates an implied control premium representing the excess of the sum of the reporting units’ fair values over the market capitalization. The Company evaluates the reasonableness of the control premium by comparing it to control premiums derived from recent comparable business combinations. If the implied control premium is not supported by market data, the Company reconciles its fair value estimates of the reporting units to a market capitalization supported by relevant market data. As a result, when DXC’s stock price and thus market capitalization is low relative to the sum of the estimated fair value of its reporting units, this reconciliation can result in reductions to the estimated fair values for the reporting units. Fair Value The Company applies fair value accounting for its financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The objective of a fair value measurement is to estimate the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal market for that asset or liability, or in the absence of the principal market, the most advantageous market. Assets and liabilities subject to fair value measurement disclosures are required to be classified according to a three-level fair value hierarchy with respect to the inputs used to determine fair value. The level in which an asset or liability is disclosed within the fair value hierarchy is based on the lowest level input that is significant to the related fair value measurement in its entirety. The levels of input are defined as follows: 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. Receivables The Company records receivables at their face amounts less an allowance for doubtful accounts. Receivables consist of amounts billed and currently due from customers, amounts earned but unbilled (including contracts measured under the percentage-of-completion cost-to-cost method of accounting), amounts retained by the customer until the completion of a specified contract, negotiation of contract modification and claims. Unbilled recoverable amounts under contracts in progress generally become billable upon the passage of time, the achievement of project milestones, or upon acceptance by the customer. Allowances for uncollectible billed trade receivables are estimated based on a combination of write-off history, aging analysis, any known collectability issues, and certain forward-looking information. DXC uses receivables securitization facilities or receivables sales facilities in the normal course of business as part of managing its cash flow |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 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. The AXA bank has been consolidated within FDB and will be part of the FDB sale previously disclosed. 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 combined Luxoft’s digital engineering capabilities with DXC’s expertise in IT modernization and integration. The purchase 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. |
Divestitures
Divestitures | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Fiscal 2022 Divestitures HPS Sale On April 1, 2021, DXC completed the sale of its HPS Business to Dedalus for €468 million (approximately $551 million), which includes €10 million (approximately $12 million) related to future services to be provided by the Company. The sale proceeds were used to repay the remainder of two series of 4.45% senior notes due fiscal 2023 for $154 million and $165 million. The HPS Sale resulted in a pre-tax gain on sale of $331 million, net of closing costs. The following is a summary of the assets and liabilities distributed as part of the HPS Sale on April 1, 2021: (in millions) As of April 1, 2021 Assets: Cash and cash equivalents $ 34 Accounts receivable, net 63 Prepaid expenses 7 Total current assets 104 Intangible assets, net 101 Operating right-of-use assets, net 3 Goodwill 81 Deferred income taxes, net 74 Property and equipment, net 4 Other assets 15 Total non-current assets 278 Total assets $ 382 Liabilities: Accounts payable $ 4 Accrued payroll and related costs 7 Current operating lease liabilities 1 Accrued expenses and other current liabilities 20 Deferred revenue and advance contract payments 45 Total current liabilities 77 Non-current deferred revenue 10 Long-term operating lease liabilities 2 Other long-term liabilities 3 Total long-term liabilities 15 Total liabilities $ 92 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 On October 1, 2020, DXC completed the sale of its HHS Business to Veritas Capital. The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business for a total enterprise value of $5.0 billion (including $85 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), $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 resulted in a pre-tax gain 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. Approximately $3.5 billion of the sale proceeds were used to prepay debt. 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 Sale on October 1, 2020: (in millions) As of October 1, 2020 Assets: Cash and cash equivalents $ 8 Accounts receivable, net 295 Prepaid expenses 39 Other current assets 2 Total current assets 344 Intangible assets, net 1,308 Operating right-of-use assets, net 74 Goodwill 1,354 Property and equipment, net 46 Other assets 54 Total non-current assets 2,836 Total assets $ 3,180 Liabilities: Accounts payable $ 79 Accrued payroll and related costs 13 Current operating lease liabilities 27 Accrued expenses and other current liabilities 36 Deferred revenue and advance contract payments 20 Total current liabilities 175 Non-current deferred revenue 32 Long-term operating lease liabilities 48 Other long term liabilities 2 Total long-term liabilities 82 Total liabilities $ 257 During fiscal 2021, the Company sold some insignificant businesses that resulted in a loss of $10 million. Fiscal 2022 As of March 31, 2022, the Company had entered into definitive agreements to sell insignificant businesses, which are classified as held for sale. Fiscal 2021 As of March 31, 2021, the disposition of the HPS Business met the requirements for presentation as assets held for sale under GAAP. In addition, as of March 31, 2021, the Company had entered into 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 — 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 — 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 — 10 Long-term operating lease liabilities 3 1 4 Income tax liabilities and deferred tax liabilities 1 — 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 |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Divestitures Fiscal 2022 Divestitures HPS Sale On April 1, 2021, DXC completed the sale of its HPS Business to Dedalus for €468 million (approximately $551 million), which includes €10 million (approximately $12 million) related to future services to be provided by the Company. The sale proceeds were used to repay the remainder of two series of 4.45% senior notes due fiscal 2023 for $154 million and $165 million. The HPS Sale resulted in a pre-tax gain on sale of $331 million, net of closing costs. The following is a summary of the assets and liabilities distributed as part of the HPS Sale on April 1, 2021: (in millions) As of April 1, 2021 Assets: Cash and cash equivalents $ 34 Accounts receivable, net 63 Prepaid expenses 7 Total current assets 104 Intangible assets, net 101 Operating right-of-use assets, net 3 Goodwill 81 Deferred income taxes, net 74 Property and equipment, net 4 Other assets 15 Total non-current assets 278 Total assets $ 382 Liabilities: Accounts payable $ 4 Accrued payroll and related costs 7 Current operating lease liabilities 1 Accrued expenses and other current liabilities 20 Deferred revenue and advance contract payments 45 Total current liabilities 77 Non-current deferred revenue 10 Long-term operating lease liabilities 2 Other long-term liabilities 3 Total long-term liabilities 15 Total liabilities $ 92 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 On October 1, 2020, DXC completed the sale of its HHS Business to Veritas Capital. The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business for a total enterprise value of $5.0 billion (including $85 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), $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 resulted in a pre-tax gain 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. Approximately $3.5 billion of the sale proceeds were used to prepay debt. 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 Sale on October 1, 2020: (in millions) As of October 1, 2020 Assets: Cash and cash equivalents $ 8 Accounts receivable, net 295 Prepaid expenses 39 Other current assets 2 Total current assets 344 Intangible assets, net 1,308 Operating right-of-use assets, net 74 Goodwill 1,354 Property and equipment, net 46 Other assets 54 Total non-current assets 2,836 Total assets $ 3,180 Liabilities: Accounts payable $ 79 Accrued payroll and related costs 13 Current operating lease liabilities 27 Accrued expenses and other current liabilities 36 Deferred revenue and advance contract payments 20 Total current liabilities 175 Non-current deferred revenue 32 Long-term operating lease liabilities 48 Other long term liabilities 2 Total long-term liabilities 82 Total liabilities $ 257 During fiscal 2021, the Company sold some insignificant businesses that resulted in a loss of $10 million. Fiscal 2022 As of March 31, 2022, the Company had entered into definitive agreements to sell insignificant businesses, which are classified as held for sale. Fiscal 2021 As of March 31, 2021, the disposition of the HPS Business met the requirements for presentation as assets held for sale under GAAP. In addition, as of March 31, 2021, the Company had entered into 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 — 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 — 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 — 10 Long-term operating lease liabilities 3 1 4 Income tax liabilities and deferred tax liabilities 1 — 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 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic EPS are computed using the weighted average number of common shares 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, 2022 March 31, 2021 March 31, 2020 Net income (loss) attributable to DXC common shareholders: $ 718 $ (149) $ (5,369) Common share information: Weighted average common shares outstanding for basic EPS 250.02 254.14 258.57 Dilutive effect of stock options and equity awards 5.19 — — Weighted average common shares outstanding for diluted EPS 255.21 254.14 258.57 Earnings per Share: Basic $ 2.87 $ (0.59) $ (20.76) Diluted $ 2.81 $ (0.59) $ (20.76) Certain 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 March 31, 2022 March 31, 2021 (1) March 31, 2020 (1) Stock Options 510,933 1,596,985 1,075,901 RSUs 6,500 2,768,022 2,029,567 PSUs 37,821 1,463,872 289,972 (1) Due to the Company's net loss during fiscal 2021 and fiscal 2020, stock options, RSUs and PSUs were excluded from the computation of dilutive EPS because they would have had an anti-dilutive effect. |
Receivables
Receivables | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2022 March 31, 2021 Billed trade receivables $ 1,755 $ 2,009 Unbilled receivables 1,310 1,214 Other receivables 789 933 Total $ 3,854 $ 4,156 The Company calculates expected credit losses for trade accounts receivable based on historical credit loss rates for each aging category as adjusted for the current market conditions and forecasts about future economic conditions. The following table presents the activity in allowances against trade accounts receivables: As of and for Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Beginning balance $ 91 $ 74 Impact of adoption of the Credit Loss Standard — 4 Provisions for losses on accounts receivable 5 53 Other adjustments to allowance and write-offs (41) (40) Ending balance $ 55 $ 91 Receivables Facility The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified as of March 31, 2022, the "Receivables Facility") with certain unaffiliated financial institutions (the "Purchasers") for the sale of commercial accounts receivable in the United States. The Receivables Facility has a facility limit of $400 million as of March 31, 2022. Under the Receivables Facility, certain of the Company subsidiaries (the "Sellers") sell accounts receivable to DXC Receivables LLC ("Receivables SPV"), a wholly owned bankruptcy-remote entity, in a true sale. Receivables SPV subsequently sells certain of the receivables in their entirety to the Purchasers pursuant to a receivables purchase agreement. The financial obligations of Receivables SPV to the Purchasers under the Receivables Facility are limited to the assets it owns and non-recourse to the Company. Sales of receivables by Receivables SPV occur continuously and are settled monthly. The amount available under the Receivables Facility fluctuates over time based on the total amount of eligible receivables generated during the normal course of business after deducting excess concentrations. As of March 31, 2022, the total availability under the Receivables Facility was $400 million and the amount sold to the Purchasers was $400 million, which was derecognized from the Company's balance sheet. The Receivables Facility is scheduled to terminate on July 29, 2022, but provides for one or more optional one-year extensions, if agreed to by the Purchasers. The Company uses the proceeds from Receivables SPV's sale of receivables under the Receivables Facility for general corporate purposes. The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded. While the Company guarantees certain non-financial performance obligations of the Sellers, the Purchasers bear customer credit risk associated with the receivables sold under the Receivables Facility and have recourse in the event of credit-related customer non-payment solely to the assets of the Receivables SPV. Milano Receivables Facility On October 1, 2020, and in connection with the consummation of the sale of the HHS Business, and at the direction of the purchaser of the HHS Business, the Milano Facility was terminated. For more information, refer to Note 3 - "Divestitures." German Receivables Facility On October 1, 2019, the Company executed an accounts receivable securitization facility (the “DE Receivables Facility”) with certain unaffiliated financial institutions (the “DE Purchasers”) for the sale of commercial accounts receivable in Germany. On June 30, 2021, the Company terminated the agreement governing the DE Receivables Facility. In connection with the termination of the DE Receivables Facility, the Company repaid all outstanding obligations and fees thereunder. Under the DE Receivables Facility, certain of the Company’s subsidiaries organized in Germany (the “DE Sellers”) sold accounts receivable to DXC ARFacility Designated Activity Company (“DE Receivables SPV”), a trust-owned bankruptcy-remote entity, in a true sale. DE Receivables SPV subsequently sold certain of the receivables in their entirety to the DE Purchasers pursuant to a receivables purchase agreement. Sales of receivables by DE Receivables SPV occurred continuously and were settled monthly. During the first quarter of fiscal 2021, DE Receivables SPV amended the DE Receivables Facility (the "Amendment"). Under the terms of the DE Receivables Facility, there was no longer any deferred purchase price (“DPP”) for receivables as the entire purchase price is paid in cash when the receivables are sold to the DE Purchasers. Prior to the Amendment, DPPs were realized by DE Receivables SPV upon the ultimate collection of the underlying receivables sold to the DE Purchasers. Cash receipts on the DPPs were classified as cash flows from investing activities. The DPP balance was $102 million before the Amendment was executed. Upon execution of the Amendment, the DE Purchasers extinguished the DPP balance and returned title to the applicable underlying receivables to DE Receivables SPV. The DPP extinguishment was classified as a non-cash investing activity. See Note 18 – “Cash Flows” for additional information. The following table is a reconciliation of the beginning and ending balances of the DPP: (in millions) Fiscal 2021 Beginning balance $ 103 Transfers of receivables 417 Collections (420) Change in funding availability 2 Facility amendments (102) Ending balance $ — |
Leases
Leases | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for data centers, corporate offices and certain equipment. Our leases have remaining lease terms of one one Operating Leases The components of operating lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Operating lease cost $ 484 $ 616 $ 698 Short-term lease cost 40 53 49 Variable lease cost 73 56 46 Sublease income (32) (40) (45) Total operating costs $ 565 $ 685 $ 748 Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below. For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows $ 484 $ 616 $ 698 ROU assets obtained in exchange for operating lease liabilities (1) $ 279 $ 530 $ 411 (1) There were $1,085 million, $763 million, and $216 million in modifications and terminations in fiscal 2022, 2021, and 2020, respectively, and net of $87 million change in lease classification from operating to finance lease in fiscal 2020. See Note 18 – “Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents operating lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU operating lease assets Operating right-of-use assets, net $ 1,133 $ 1,366 Operating lease liabilities Current operating lease liabilities $ 388 $ 418 Operating lease liabilities Non-current operating lease liabilities 815 1,038 Total operating lease liabilities $ 1,203 $ 1,456 The weighted-average operating lease term was 4.4 years and 4.9 years as of March 31, 2022 and March 31, 2021, respectively. The weighted-average operating lease discount rate was 3.3% and 3.8% as of March 31, 2022 and March 31, 2021, respectively. The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Operating lease payments $ 415 $ 308 $ 225 $ 133 $ 70 $ 155 $ 1,306 Less: imputed interest (103) Total operating lease liabilities $ 1,203 Finance Leases The components of finance lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 346 $ 433 $ 405 Interest on lease liabilities 27 45 65 Total finance lease cost $ 373 $ 478 $ 470 The following table provides supplemental cash flow information related to the Company’s finance leases: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Interest paid for finance lease liabilities – Operating cash flows $ 27 $ 45 $ 65 Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows 501 584 576 Total cash paid in the measurement of finance lease obligations $ 528 $ 629 $ 641 Capital expenditures through finance lease obligations (1) $ 233 $ 348 $ 605 (1) See Note 18 – ”Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents finance lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU finance lease assets Property and Equipment, net $ 602 $ 834 Finance lease Short-term debt and current maturities of long-term debt $ 289 $ 398 Finance lease Long-term debt, net of current maturities 354 496 Total finance lease liabilities (1) $ 643 $ 894 (1) See Note 14 – “Debt” for further information on finance lease liabilities. The weighted-average finance lease term was 2.8 years and 2.6 years as of March 31, 2022 and March 31, 2021, respectively. The weighted-average finance lease discount rate was 2.9% and 3.6% as of March 31, 2022 and March 31, 2021, respectively. The following maturity analysis presents expected undiscounted cash payments for finance leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Finance lease payments $ 300 $ 195 $ 108 $ 50 $ 19 $ — $ 672 Less: imputed interest (29) Total finance lease liabilities $ 643 |
Leases | Leases The Company has operating and finance leases for data centers, corporate offices and certain equipment. Our leases have remaining lease terms of one one Operating Leases The components of operating lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Operating lease cost $ 484 $ 616 $ 698 Short-term lease cost 40 53 49 Variable lease cost 73 56 46 Sublease income (32) (40) (45) Total operating costs $ 565 $ 685 $ 748 Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below. For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows $ 484 $ 616 $ 698 ROU assets obtained in exchange for operating lease liabilities (1) $ 279 $ 530 $ 411 (1) There were $1,085 million, $763 million, and $216 million in modifications and terminations in fiscal 2022, 2021, and 2020, respectively, and net of $87 million change in lease classification from operating to finance lease in fiscal 2020. See Note 18 – “Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents operating lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU operating lease assets Operating right-of-use assets, net $ 1,133 $ 1,366 Operating lease liabilities Current operating lease liabilities $ 388 $ 418 Operating lease liabilities Non-current operating lease liabilities 815 1,038 Total operating lease liabilities $ 1,203 $ 1,456 The weighted-average operating lease term was 4.4 years and 4.9 years as of March 31, 2022 and March 31, 2021, respectively. The weighted-average operating lease discount rate was 3.3% and 3.8% as of March 31, 2022 and March 31, 2021, respectively. The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Operating lease payments $ 415 $ 308 $ 225 $ 133 $ 70 $ 155 $ 1,306 Less: imputed interest (103) Total operating lease liabilities $ 1,203 Finance Leases The components of finance lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 346 $ 433 $ 405 Interest on lease liabilities 27 45 65 Total finance lease cost $ 373 $ 478 $ 470 The following table provides supplemental cash flow information related to the Company’s finance leases: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Interest paid for finance lease liabilities – Operating cash flows $ 27 $ 45 $ 65 Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows 501 584 576 Total cash paid in the measurement of finance lease obligations $ 528 $ 629 $ 641 Capital expenditures through finance lease obligations (1) $ 233 $ 348 $ 605 (1) See Note 18 – ”Cash Flows” for further information on non-cash activities affecting cash flows. The following table presents finance lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU finance lease assets Property and Equipment, net $ 602 $ 834 Finance lease Short-term debt and current maturities of long-term debt $ 289 $ 398 Finance lease Long-term debt, net of current maturities 354 496 Total finance lease liabilities (1) $ 643 $ 894 (1) See Note 14 – “Debt” for further information on finance lease liabilities. The weighted-average finance lease term was 2.8 years and 2.6 years as of March 31, 2022 and March 31, 2021, respectively. The weighted-average finance lease discount rate was 2.9% and 3.6% as of March 31, 2022 and March 31, 2021, respectively. The following maturity analysis presents expected undiscounted cash payments for finance leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Finance lease payments $ 300 $ 195 $ 108 $ 50 $ 19 $ — $ 672 Less: imputed interest (29) Total finance lease liabilities $ 643 |
Fair Value
Fair Value | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis excluding pension assets and derivative assets and liabilities. See Note 15 - "Pension and Other Benefit Plans" and Note 9 - "Derivative Instruments" for information about these excluded assets and liabilities. There were no transfers between any of the levels during the periods presented. Fair Value Hierarchy (in millions) As of March 31, 2022 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 5 $ 5 $ — $ — Time deposits (1) 51 51 — — Other securities (2) 51 — 49 2 Total assets $ 107 $ 56 $ 49 $ 2 Liabilities: Contingent consideration $ 8 $ — $ — $ 8 Total liabilities $ 8 $ — $ — $ 8 (in millions) As of March 31, 2021 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 12 $ 12 $ — $ — Time deposits (1) 78 78 — — Other securities (2) 57 — 55 2 Total assets $ 147 $ 90 $ 55 $ 2 Liabilities: Contingent consideration $ 27 $ — $ — $ 27 Total Liabilities $ 27 $ — $ — $ 27 (1) Cost basis approximated fair value due to the short period of time to maturity. (2) Other securities include available-for-sale equity security investments with Level 2 inputs that have a cost basis of $53 million and $57 million, and losses of $4 million and $2 million, as of March 31, 2022 and March 31, 2021, respectively, included in other (income) expense, net in the Company’s statements of operations. During the third quarter of fiscal 2021, previously held investments were sold and the proceeds were used to purchase new investments.The gain of $17 million from the sale was included in other (income) expense, net. The fair value of money market funds, money market deposit accounts, U.S. Treasury bills with less than three months maturity and time deposits, included in cash and cash equivalents, are based on quoted market prices. The fair value of other debt securities, included in other long-term assets, is based on actual market prices. The fair value of contingent consideration, included in other liabilities, is based on contractually defined targets of financial performance in connection with earn outs and other considerations. Other Fair Value Disclosures The carrying amounts of the Company’s financial instruments with short-term maturities, primarily accounts receivable, accounts payable, short-term debt, and financial liabilities included in other accrued liabilities approximate their market values due to their short-term nature. If measured at fair value, these financial instruments would be classified as Level 2 or Level 3 within the fair value hierarchy. The Company estimates the fair value of its long-term debt primarily by using quoted prices obtained from third-party providers such as Bloomberg and by using an expected present value technique based on observable market inputs for instruments with similar terms currently available to the Company. The estimated fair value of the Company's long-term debt excluding finance lease liabilities was $3.7 billion and $4.7 billion as of March 31, 2022 and March 31, 2021, respectively as compared with the carrying value of $4.0 billion and $4.4 billion as of March 31, 2022 and March 31, 2021, respectively. If measured at fair value, long-term debt excluding finance lease liabilities would be classified as Level 1 or Level 2 within the fair value hierarchy. Non-financial assets such as goodwill, tangible assets, intangible assets, and other contract related long-lived assets are recorded at fair value in the period they are initially recognized; and such fair value may be adjusted in subsequent periods if an event occurs or circumstances change that indicate that the asset may be impaired. The fair value measurements in such instances would be classified as Level 3 within the fair value hierarchy. Other than the goodwill impairment losses discussed in Note 12 - "Goodwill," there were no significant impairments recorded during the fiscal periods covered by this report. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is exposed to interest rate and foreign exchange rate fluctuations. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not use derivative instruments for trading or any speculative purpose. Derivatives Designated for Hedge Accounting Cash flow hedges The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Indian Rupee, Euro and British Pound-denominated intercompany obligations and forecasted transactions. The notional amounts of foreign currency forward contracts designated as cash flow hedges as of March 31, 2022 and March 31, 2021 was $727 million and $546 million, respectively. As of March 31, 2022, the related forecasted transactions extend through March 2024. For the fiscal years ended March 31, 2022 and March 31, 2021, the Company performed an assessment at the inception of the cash flow hedge transactions and determined all critical terms of the hedging instruments and hedged items matched. The Company performs an assessment of critical terms on an on-going basis throughout the hedging period. During the fiscal years ended March 31, 2022 and March 31, 2021, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur. As of March 31, 2022, $14 million of the existing amount of gain related to the cash flow hedge reported in accumulated other comprehensive income is expected to be reclassified into earnings within the next 12 months. Amounts recognized in other comprehensive income (loss) and income (loss) before income taxes The pre-tax gain on derivatives designated for hedge accounting recognized in other comprehensive income (loss) was $23 million and $19 million during the fiscal year ended March 31, 2022 and March 31, 2021, respectively. The pre-tax gain (loss) on derivatives designated for hedge accounting recognized in income (loss) before income taxes was $6 million and $(5) million during the fiscal year ended March 31, 2022 and March 31, 2021, respectively. Derivatives Not Designated For Hedge Accounting The derivative instruments not designated as hedges for purposes of hedge accounting include certain short-term foreign currency forward contracts. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Foreign currency forward contracts The Company manages the exposure to fluctuations in foreign currencies by using foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions. The notional amount of the foreign currency forward contracts outstanding as of March 31, 2022 and March 31, 2021 was $2.1 billion and $2.1 billion, respectively. The following table presents the pretax amounts impacting income related to designated and non-designated foreign currency forward contracts: Fiscal Years Ended (in millions) Statement of Operations Line Item March 31, 2022 March 31, 2021 March 31, 2020 Foreign currency forward contracts Other (income) expense, net $ 52 $ 51 $ (37) Fair Value of Derivative Instruments All derivative instruments are recorded at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables present the fair values of derivative instruments included in the balance sheets: Derivative Assets As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Derivatives designated for hedge accounting: Foreign currency forward contracts Other current assets $ 18 $ 9 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 9 $ 3 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Derivatives designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ — $ 5 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 15 $ 3 The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates and is based on the period-end foreign currency exchange rates and forward points which are classified as Level 2 inputs. Other Risks for Derivative Instruments The Company is exposed to the risk of losses in the event of non-performance by the counterparties to its derivative contracts. The amount subject to credit risk related to derivative instruments is generally limited to the amount, if any, by which a counterparty's obligations exceed the obligations of the Company with that counterparty. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. With respect to its foreign currency derivatives, as of March 31, 2022, there were twelve counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $16 million. The Company also enters into enforceable master netting arrangements with some of its counterparties. However, for financial reporting purposes, it is the Company's policy not to offset derivative assets and liabilities despite the existence of enforceable master netting arrangements. The potential effect of such netting arrangements on the Company's balance sheets is not material for the periods presented. Non-Derivative Financial Instruments Designated for Hedge Accounting The Company applies hedge accounting for foreign currency-denominated debt used to manage foreign currency exposures on its net investments in certain non-U.S. operations. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged. Net Investment Hedges DXC seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain non-U.S. operations with foreign currency-denominated debt. For foreign currency denominated debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates. For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation. Gains or losses on individual net investments in non-U.S. operations are reclassified to earnings from accumulated other comprehensive income (loss) when such net investments are sold or substantially liquidated. As of March 31, 2022, DXC had $0.3 billion of foreign currency-denominated debt designated as hedges of net investments in non-U.S. subsidiaries. For the fiscal year ended March 31, 2022, the pre-tax impact of gain on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive income (loss) was $17 million. As of March 31, 2021, DXC had $0.8 billion of foreign currency-denominated debt designated as hedges of net investments in non-U.S. subsidiaries. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of (in millions) March 31, 2022 March 31, 2021 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,089 $ 2,228 Computers and related equipment 4,117 4,596 Furniture and other equipment 203 227 Construction in progress 1 16 6,410 7,067 Less: accumulated depreciation 3,998 4,121 Property and equipment, net $ 2,412 $ 2,946 Depreciation expense for fiscal 2022, 2021 and 2020 was $625 million, $754 million and $643 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: As of March 31, 2022 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 4,063 $ 3,039 $ 1,024 Customer related intangible assets 4,148 1,995 2,153 Other intangible assets 291 90 201 Total intangible assets $ 8,502 $ 5,124 $ 3,378 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 The components of amortization expense were as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Intangible asset amortization $ 865 $ 952 $ 1,019 Transition and transformation contract cost amortization (1) 227 264 280 Total amortization expense $ 1,092 $ 1,216 $ 1,299 (1) Transition and transformation contract costs are included within other assets on the balance sheet. Estimated future amortization as of March 31, 2022 is as follows: Fiscal Year (in millions) 2023 $ 780 2024 $ 684 2025 $ 592 2026 $ 522 2027 $ 395 Thereafter $ 405 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following tables summarize the changes in the carrying amounts of goodwill, by segment, for the fiscal years ended March 31, 2022 and March 31, 2021, respectively: (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 (in millions) GBS GIS Total Balance as of March 31, 2020, net $ 2,017 $ — $ 2,017 Acquisition related adjustments 15 — 15 Divestitures (1,355) — (1,355) Assets held for sale (90) — (90) Foreign currency translation 54 — 54 Balance as of March 31, 2021, net $ 641 $ — $ 641 Goodwill, gross 5,131 5,066 10,197 Accumulated impairment losses (4,490) (5,066) (9,556) Balance as of March 31, 2021, net $ 641 $ — $ 641 The fiscal 2021 additions to goodwill were related to acquisitions described in Note 2 - "Acquisitions" and assets held for sale are described in Note 4 - "Assets Held for Sale." The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances. Goodwill Impairment Analyses Fiscal 2022 The Company’s annual goodwill impairment analysis, which was performed qualitatively as of July 1, 2021, did not result in an impairment charge. At the end of the fiscal 2022, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators, and, therefore, it was unnecessary to perform an interim goodwill impairment test as of March 31, 2022. Fiscal 2021 The Company’s annual goodwill impairment analysis, which was performed qualitatively as of July 1, 2020, did not result in an impairment charge. At the end of the fiscal 2021, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators, and, therefore, it was unnecessary to perform an interim goodwill impairment test as of March 31, 2021. Fiscal 2020 The Company performed its annual goodwill impairment assessment as of July 1, 2019. Subsequent to the measurement date, the Company experienced a decline in its stock price and market capitalization that represented an indicator of impairment as the observed declines were substantial and sustained. As a result, the Company performed quantitative goodwill impairment tests during the second and fourth quarters of fiscal 2020. Both quantitative goodwill impairment tests were performed for all of DXC's reporting units, consistent with its policy described in Note 1 - "Summary of Significant Accounting Policies.” As part of the reconciliation to the Company’s market capitalization, the Company concluded on both instances that the carrying values of its reporting units exceeded their estimated fair values and recognized total non-cash impairment charges of $6,794 million, consisting of $3,789 million and $3,005 million in its GBS and GIS segments, respectively. The goodwill impairment charges do not have an impact on the calculation of the Company's financial covenants under the Company's debt arrangements. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income (loss) from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Domestic entities $ (566) $ 975 $ (2,928) Entities outside the United States 1,707 (321) (2,300) Total $ 1,141 $ 654 $ (5,228) The income tax expense (benefit) on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Current: Federal $ (118) $ 730 $ 3 State (17) 257 16 Foreign 285 216 167 150 1,203 186 Deferred: Federal 9 (221) (125) State (9) (51) 17 Foreign 255 (131) 52 255 (403) (56) Total income tax expense $ 405 $ 800 $ 130 The current federal (benefit) and tax expense for fiscal years 2022, 2021, and 2020 includes a $(7) million, $(4) million and $(31) million transition tax benefit, respectively. The current expense (benefit) for fiscal years 2022, 2021 and 2020, includes interest and penalties of $(3) million, $2 million and $2 million, respectively, for uncertain tax positions. In connection with the HPES Merger, the Company entered into a tax matters agreement with HPE. HPE generally will be responsible for tax liabilities arising prior to the HPES Merger, and DXC is liable to HPE for income tax receivables it receives related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $27 million tax indemnification receivable related to uncertain tax positions, $72 million of tax indemnification receivable related to other tax payables and $129 million of tax indemnification payable related to other tax receivables. In connection with the spin-off of the Company's former U.S. public sector business (the "USPS Separation"), the Company entered into a tax matters agreement with Perspecta Inc. (including its successors and permitted assigns, "Perspecta"). The Company generally will be responsible for tax liabilities arising prior to the USPS Separation, and Perspecta is liable to the Company for income tax receivables related to pre-spin-off periods. Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE. The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company has recorded a tax indemnification receivable from Perspecta of $72 million related to other tax payables and a tax indemnification payable to Perspecta of $15 million related to income tax and other tax receivables. In connection with the sale of HPS business, the Company entered into a tax matters agreement with Dedalus. Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of HPS business. The major elements contributing to the difference between the U.S. federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below. Fiscal Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Statutory rate 21.0 % 21.0 % (21.0) % State income tax, net of federal tax (6.9) 10.8 (1.4) Foreign tax rate differential 151.1 (198.4) (11.9) Goodwill impairment — — 28.3 Change in valuation allowances (140.9) 239.3 12.1 Income Tax and Foreign Tax Credits (15.2) (48.7) (2.6) Arbitration Award — — (3.6) Change in uncertain tax positions 6.8 17.2 1.1 Withholding Taxes 6.2 10.3 0.9 U.S. Tax on Foreign Income 2.5 17.6 0.4 Excess tax benefits or expense for stock compensation 0.1 2.2 0.1 Capitalized transaction costs 0.2 0.5 0.1 Base Erosion and Transition Taxes 6.6 (0.7) (0.7) Impact of Business Divestitures 3.0 52.6 — Granite Trust Capital Loss — (5.7) — Other items, net 1.0 4.3 0.7 Effective tax rate 35.5 % 122.3 % 2.5 % In fiscal 2022, the ETR was primarily impacted by: • Income Tax and Foreign Tax Credits, which decreased income tax expense and decreased the ETR by $174 million and 15.2%, respectively. • Changes in Luxembourg losses that increased the ETR by $1,609 million and 141.0%, respectively, with an offsetting decrease in the ETR due to a decrease in the valuation allowance of the same amount. • Adjustments to uncertain tax positions that increased the overall income tax expense and the ETR by $78 million and 6.8%, respectively. In fiscal 2021, the ETR was primarily impacted by: • Impact of the HHS and other business divestitures, which increased tax expense and increased the ETR $344 million and 52.6%, respectively. The HHS tax gain increased tax expense and the ETR as the tax basis of assets sold, primarily goodwill, was lower than the book basis. • Continued losses in countries where we are recording a valuation allowance on certain deferred tax assets, primarily in Belgium, Denmark, Italy, France, Luxembourg, and U.S., and an impairment of the full German deferred tax asset, which increased income tax expense and increased the ETR by $1,565 million and 239.3%, respectively. • An increase in Income Tax and Foreign Tax Credits, which decreased income tax expense and decreased the ETR by $319 million and 48.7%, respectively. • Local losses on investments in Luxembourg that increased the foreign rate differential and decreased the ETR by $1,226 million and 187.5%, respectively, with an offsetting increase in the ETR due to an increase in the valuation allowance of the same amount. • The Company recognized adjustments to uncertain tax positions that increased the overall income tax expense and the ETR by $112 million and 17.2%, respectively. In fiscal 2020, the ETR was primarily impacted by: • Non-deductible goodwill impairment charge, which increased tax expense and increased the ETR by $1,482 million and 28.3%, respectively. • Non-taxable gain on the arbitration award, which decreased income tax expense and decreased the ETR by $186 million and 3.6%, respectively. • A change in the net valuation allowance on certain deferred tax assets, primarily in Australia, Brazil, China, Luxembourg, and Singapore, which increased income tax expense and increased the ETR by $631 million and 12.1%, respectively. • An increase in Income Tax and Foreign Tax Credits, primarily relating to research and development credits recognized for prior years, which decreased income tax expense and decreased the ETR by $135 million and 2.6%, respectively. • Local losses on investments in Luxembourg that increased the foreign rate differential and decreased the ETR by $637 million and 12.2%, respectively, with an offsetting increase in the ETR due to an increase in the valuation allowance of the same amount. The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2022 March 31, 2021 Deferred tax assets Investment basis differences $ — $ 32 Tax loss/credit carryforwards 2,360 4,039 Accrued interest 15 20 Operating lease liabilities 244 359 Contract accounting 132 92 Other assets 338 351 Total deferred tax assets 3,089 4,893 Valuation allowance (2,133) (3,860) Net deferred tax assets 956 1,033 Deferred tax liabilities Depreciation and amortization (430) (513) Operating right-of-use asset (227) (339) Investment basis differences (8) — Employee benefits (426) (6) Other liabilities (220) (246) Total deferred tax liabilities (1,311) (1,104) Total net deferred tax assets (liabilities) $ (355) $ (71) Income tax related assets are included in the accompanying balance sheets as follows: As of (in millions) March 31, 2022 March 31, 2021 Current: Income tax receivables and prepaid taxes $ 78 $ 67 $ 78 $ 67 Non-current: Income taxes receivable and prepaid taxes $ 130 $ 136 Deferred tax assets 221 289 $ 351 $ 425 Total $ 429 $ 492 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2022 March 31, 2021 Current: Liability for uncertain tax positions $ (34) $ (30) Income taxes payable (163) (368) $ (197) $ (398) Non-current: Deferred taxes (576) (360) Income taxes payable (39) (130) Liability for uncertain tax positions (379) (364) $ (994) $ (854) Total $ (1,191) $ (1,252) Significant management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against deferred tax assets. As of each reporting date, management weighs new evidence, both positive and negative, that could affect its view of the future realization of its net deferred tax assets. Objective verifiable evidence, which is historical in nature, carries more weight than subjective evidence, which is forward looking in nature. A valuation allowance has been recorded against deferred tax assets of approximately $2,133 million as of March 31, 2022 due to uncertainties related to the ability to utilize these assets. In assessing whether its deferred tax assets are realizable, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and adjusts the valuation allowance accordingly. 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 financial operations. In the current reporting period, the Company recorded adjustments to Luxembourg losses and corresponding adjustments to the valuation allowance. The net decrease in the valuation allowance of $1,729 million in fiscal 2022 is primarily due to changes in the Luxembourg losses of $1,609 million, other increases in the valuation allowance of $1 million and a currency translation adjustment of $121 million. The following table provides information on the Company's various tax carryforwards: As of March 31, 2022 As of March 31, 2021 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 88 $ 88 $ — N/A $ 132 $ 128 $ 4 2033 State $ 589 $ 243 $ 346 2042 $ 369 $ 6 $ 363 2041 Foreign $ 9,368 $ 5,635 $ 3,733 2039 $ 16,700 $ 6,191 $ 10,509 2041 Tax credit carryforwards Federal $ 5 $ — $ 5 2042 $ 5 $ — $ 5 2040 State $ 5 $ 2 $ 3 2037 $ — $ — $ — N/A Foreign $ — $ — $ — N/A $ — $ — $ — N/A Capital loss carryforwards Federal $ 42 $ — $ 42 2026 $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 199 $ 199 $ — N/A $ 45 $ 45 $ — N/A The Company also has federal and state 163(j) interest deduction carryforward attributes of approximately $239 million and $667 million, respectively, that have no expiration. The majority of our global unremitted foreign earnings have been taxed or would be exempt from U.S. tax upon repatriation. Such earnings and all current foreign earnings are not indefinitely reinvested. The following earnings are considered indefinitely reinvested: approximately $495 million that could be subject to U.S. federal tax when repatriated to the U.S. under section 1.245A-5(b) of the final Treasury regulations; and our accumulated earnings in India as of March 31, 2021. A portion of these indefinitely reinvested earnings may be subject to foreign and U.S. state tax consequences when remitted. The Company will continue to evaluate its position in the future based on its future strategy and cash needs. The Company accounts for income tax uncertainties in accordance with ASC 740 Income Taxes, which prescribes a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC 740 also provides guidance on the accounting for and disclosure of liabilities for uncertain tax positions, interest and penalties. In accordance with ASC 740, the Company’s liability for uncertain tax positions was as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Tax $ 422 $ 354 Interest 76 46 Penalties 20 22 Offset to receivable (104) (18) Net of tax attributes (1) (10) Total $ 413 $ 394 The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes): Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Balance at beginning of fiscal year $ 354 $ 253 $ 165 Gross increases related to prior year tax positions 61 60 74 Gross decreases related to prior year tax positions (16) (30) (9) Gross increases related to current year tax positions 93 102 15 Settlements and statute of limitation expirations (33) (36) (7) Acquisitions and Dispositions (36) 6 18 Foreign exchange and others (1) (1) (3) Balance at end of fiscal year $ 422 $ 354 $ 253 The Company’s liability for uncertain tax positions at March 31, 2022, March 31, 2021 and March 31, 2020, includes $393 million, $316 million and $210 million, respectively, related to amounts that, if recognized, would affect the effective tax rate (excluding related interest and penalties). The increase relating to the tax positions primarily relate to the Company's increase in foreign tax credits. The Company recognizes interest accrued related to uncertain tax positions and penalties as a component of income tax expense. During the year ended March 31, 2022, the Company had net decrease in interest expense of $1 million ($1 million net of tax) and net decrease in accrued expense for penalties of $2 million, and as of March 31, 2022 recognized a liability for interest of $76 million ($60 million net of tax) and penalties of $20 million. During the year ended March 31, 2021, the Company had a net increase in interest of $1 million ($(1) million net of tax) and a net increase in accrued expense for penalties of $1 million and as of March 31, 2021, recognized a liability for interest of $46 million ($39 million net of tax) and penalties of $22 million. During the year ended March 31, 2020, the Company had a net increase in interest expense of $5 million ($3 million net of tax) and a net decrease in accrued expense for penalties of $3 million and, as of March 31, 2020, recognized a liability for interest of $45 million ($40 million net of tax) and penalties of $21 million. The Company is currently under examination in several tax jurisdictions. A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are: Jurisdiction: Tax Years that Remain Subject to Examination (Fiscal Year Ending): United States – Federal 2009 and forward United States – Various States 2009 and forward Australia 2012 and forward Canada 2006 and forward France 2016 and forward Germany 2010 and forward India 2001 and forward U. K. 2018 and forward Tax Examinations The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal 2008 through the tax year ended October 31, 2018. With respect to CSC’s fiscal 2008 through 2017 federal tax returns, the Company participated in settlement negotiations with the IRS Office of Appeals. The IRS examined several issues for these tax years that resulted in various audit adjustments. The Company and the IRS Office of Appeals have an agreement in principle as to various audit adjustments, and we disagree with the IRS’ disallowance of certain losses and deductions resulting from restructuring costs and tax planning strategies in previous years. As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the IRS Office of Appeals or the U.S. Tax Court, these matters are not fully reserved and would result in a federal and state tax expense of approximately $458 million (including estimated interest and penalties) for the unreserved portion of these items and related cash cost if we do not prevail. We have received notices of deficiency with respect to fiscal 2009, 2010, 2011 and 2013 and have timely filed petitions with the U.S. Tax Court. We do not expect the U.S. Tax Court matters to be resolved in the next 12 months. The Company has agreed to extend the statute of limitations for fiscal years 2008 through 2010 to April 30, 2022, for fiscal years 2014 through fiscal 2017 to February 28, 2023, and for the tax years ended October 31, 2017 and October 31, 2018 to September 30, 2023. The statute of limitations on assessments for fiscal years 2011 through 2013 has expired, with the exception of a $6 million refund claim for 2012 for which the statute remains open. However, as previously noted, fiscal years 2011 and 2013 are in the U.S. Tax Court and consequently these years will remain open until the U.S. Tax Court proceedings have concluded. The Company expects to reach resolution with regard to disagreed items for fiscal years 2009 through 2013 no earlier than fiscal 2025, and to reach resolution for fiscal years 2014 through 2017, within 12 months. The Company may settle certain other tax examinations for different amounts than the Company has accrued as uncertain tax positions. Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future. The Company believes the outcomes that are reasonably possible within the next 12 months to result in a reduction in its liability for uncertain tax positions, excluding interest, penalties, and tax carryforwards, would be approximately $44 million. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company's debt: As of (in millions) Interest Rates Fiscal Year Maturities March 31, 2022 (1) March 31, 2021 (1) Short-term debt and current maturities of long-term debt Commercial paper (2) (0.40)% - (0.27)% 2023 $ 362 $ 213 Current maturities of long-term debt Various 2023 249 556 Current maturities of finance lease liabilities 0.23% - 12.79% 2023 289 398 Short-term debt and current maturities of long-term debt $ 900 $ 1,167 Long-term debt, net of current maturities €650 million Senior notes 1.75% 2026 720 760 $700 million Senior notes 1.80% 2027 694 — €750 Senior notes 0.45% 2028 828 — $650 million Senior notes 2.375% 2029 644 — €600 Senior notes 0.95% 2032 661 — EUR term loan 0.80% 2023 - 2024 — 469 $274 million Senior notes 4.45% 2023 — 154 $171 million Senior notes 4.45% 2023 — 165 $500 million Senior notes 4.25% 2025 — 504 $500 million Senior notes 4.13% 2026 — 496 £250 million Senior notes 2.75% 2025 — 343 $500 million Senior notes 4.75% 2028 — 506 $234 million Senior notes 7.45% 2030 — 268 Finance lease liabilities 0.23% - 12.79% 2023 - 2027 643 894 Borrowings for assets acquired under long-term financing 0.00% - 6.78% 2023 - 2026 344 672 Mandatorily redeemable preferred stock outstanding 6.00% 2023 63 63 Other borrowings Various 2023 - 2024 6 5 Long-term debt 4,603 5,299 Less: current maturities 538 954 Long-term debt, net of current maturities $ 4,065 $ 4,345 . (1) The carrying amounts of the senior term loans and notes as of March 31, 2022 and March 31, 2021, include the remaining principal outstanding of $3,575 million and $3,631 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $(28) million and $34 million, respectively. (2) At DXC's option, DXC can borrow up to a maximum of €1 billion or its equivalent in €, £, and $. Senior Notes and Term Loans During the first quarter of fiscal 2022, the Company used the proceeds from the sale of its HPS business to complete the redemption of the remaining $319 million of the two series of 4.45% senior notes due fiscal 2023. The Company also repurchased $33 million of its 4.125% senior notes due fiscal 2026 using the proceeds from the divestitures of other insignificant businesses and existing cash on hand and the remainder of these notes were subsequently redeemed in full. Euro Senior Notes Issuance During the second quarter of fiscal 2022, the Company issued (i) €750 million aggregate principal amount of its 0.450% senior notes due fiscal 2028 and (ii) €600 million aggregate principal amount of its 0.950% senior notes due fiscal 2032 (collectively, the “Euro Notes”). The proceeds from the Euro Notes were applied principally to the repayment in full of the €400 million aggregate principal amount of outstanding borrowings under its Euro-denominated term loan facility, the repayment of its U.S. dollar-denominated 4.25% senior notes due fiscal 2025 and the repayment of its Sterling-denominated 2.75% senior notes due fiscal 2025. U.S. Dollar Senior Notes Issuance During the second quarter of fiscal 2022, the Company issued (i) $700 million aggregate principal amount of its 1.80% senior notes due fiscal 2027, and (ii) $650 million aggregate principal amount of its 2.375% senior notes due fiscal 2029 (collectively, the “USD Notes”). The proceeds from the USD Notes were used for the repayment of its remaining 4.125% senior notes due fiscal 2026, its 4.750% senior notes due fiscal 2028 and its 7.45% senior notes due fiscal 2030. The interest on the Company’s $700 million senior notes due fiscal 2027 and $650 million senior notes due fiscal 2029 are payable semi-annually in arrears, while the interest on the €650 million senior notes due fiscal 2026, €750 million senior notes due fiscal 2028 and €600 million senior notes due fiscal 2032 are payable annually in arrears. Generally, the Company’s notes are redeemable at the Company’s discretion at the then-applicable redemption premium plus accrued and unpaid interest. Future Maturities of Long-term Debt Expected maturities of long-term debt, including borrowings for asset financing but excluding minimum capital lease payments, for fiscal years subsequent to March 31, 2022, are as follows: Fiscal Year (in millions) 2023 $ 249 2024 123 2025 22 2026 723 2027 697 Thereafter 2,146 Total $ 3,960 |
Pension and Other Benefit Plans
Pension and Other Benefit Plans | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Plans | Pension and Other Benefit Plans The Company offers a number of pension and OPEB plans, life insurance benefits, deferred compensation and defined contribution plans. Most of the Company's pension plans are not admitting new participants; therefore, changes to pension liabilities are primarily due to market fluctuations of investments for existing participants and changes in interest rates. Defined Benefit Plans The Company sponsors a number of defined benefit and post-retirement medical benefit plans for the benefit of eligible employees. The benefit obligations of the Company's U.S. pension, U.S. OPEB, and non-U.S. OPEB plans represent an insignificant portion of the Company's pension and other post-retirement benefit plans. As a result, the disclosures below include the Company's U.S. and non-U.S. pension plans on a global consolidated basis. Eligible employees are enrolled in defined benefit pension plans in their country of domicile. The defined benefit pension plan in the U.K. represents the largest plan. In addition, healthcare, dental and life insurance benefits are also provided to certain non-U.S. employees. A significant number of employees outside the United States are covered by government sponsored programs at no direct cost to the Company other than related payroll taxes. The Company accrued $4 million, $13 million and $10 million, for fiscal 2022, 2021 and 2020, respectively, as additional contractual termination benefits for certain employees are part of the Company's restructuring plans. These amounts are reflected in the projected benefit obligation and in the net periodic pension cost. The change in projected benefit obligation for fiscal year 2022 is primarily related to actuarial gains and foreign currency exchange rate changes. Actuarial gains were primarily due to an increase in discount rates across most plans, with partially offsetting impact of actuarial losses from an increase in inflation rates in Europe and in the United Kingdom and higher than expected benefit indexation in the United Kingdom. Projected Benefit Obligations As of (in millions) March 31, 2022 March 31, 2021 Projected benefit obligation at beginning of year $ 12,436 $ 10,150 Service cost 88 91 Interest cost 203 245 Plan participants’ contributions 30 31 Amendments (12) (9) Business/contract acquisitions/divestitures (2) 11 Contractual termination benefits 4 13 Settlement/curtailment (76) (37) Actuarial (gain) loss (831) 1,262 Benefits paid (458) (393) Foreign currency exchange rate changes (485) 1,084 Other (35) (12) Projected benefit obligation at end of year $ 10,862 $ 12,436 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2022 March 31, 2021 Discount rate 2.7 % 2.0 % Rates of increase in compensation levels 2.9 % 2.5 % Interest Crediting Rate 4.0 % 4.0 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2022 March 31, 2021 Fair value of plan assets at beginning of year $ 13,425 $ 11,090 Actual return on plan assets 441 1,401 Employer contribution 161 117 Plan participants’ contributions 30 31 Benefits paid (458) (393) Business/contract acquisitions/divestitures — — Contractual termination benefits 4 7 Plan settlement (66) (31) Foreign currency exchange rate changes (566) 1,224 Other (19) (21) Fair value of plan assets at end of year $ 12,952 $ 13,425 Funded status at end of year $ 2,090 $ 989 Selected Information As of (in millions) March 31, 2022 March 31, 2021 Other assets $ 2,718 $ 1,884 Accrued expenses and other current liabilities (23) (81) Non-current pension obligations (590) (796) Other long-term liabilities - OPEB (15) (18) Net amount recorded $ 2,090 $ 989 Accumulated benefit obligation $ 10,790 $ 12,346 Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets (in millions) March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Projected benefit obligation $ 1,795 $ 2,490 $ 1,440 $ 2,453 Accumulated benefit obligation $ 1,717 $ 2,431 $ 1,401 $ 2,402 Fair value of plan assets $ 1,167 $ 1,596 $ 830 $ 1,562 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Service cost $ 88 $ 91 $ 92 Interest cost 203 245 237 Expected return on assets (581) (659) (651) Amortization of prior service credit (8) (8) (9) Contractual termination benefit 4 13 10 Settlement/curtailment (gain) loss (20) (18) 7 Recognition of actuarial (gain) loss (664) 537 (252) Net periodic pension (income) expense $ (978) $ 201 $ (566) The service cost component of net periodic pension (income) expense is presented in cost of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net in the Company’s statements of operations. The weighted-average rates used to determine net periodic pension cost were: Fiscal Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Discount or settlement rates 2.0 % 2.4 % 2.4 % Expected long-term rates of return on assets 4.4 % 5.6 % 5.8 % Rates of increase in compensation levels 2.5 % 1.7 % 2.0 % Interest Crediting Rate 4.0 % 4.0 % — % The following is a summary of amounts in accumulated other comprehensive income, before tax effects: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Prior service cost $ (238) $ (239) Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2023 $ 88 Benefit Payments: 2023 $ 483 2024 419 2025 426 2026 434 2027 444 2028 and thereafter 2,361 Total $ 4,567 Fair Value of Plan Assets The tables below set forth the fair value of plan assets by asset category within the fair value hierarchy: As of March 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ — $ — $ — $ — Global Stocks — — — — Global/International Equity commingled funds 169 2,098 — 2,267 Global equity mutual funds — — — — U.S./North American Equity commingled funds — 5 — 5 Fixed Income: Non-U.S. Government funds — 46 — 46 Fixed income commingled funds 4 45 15 64 Fixed income mutual funds — 3 — 3 Corporate bonds 1 4,668 — 4,669 Alternatives: Other Alternatives (1) 4 3,182 1,602 4,788 Hedge Funds (2) — 12 — 12 Other Assets 278 78 31 387 Insurance contracts — 342 — 342 Cash and cash equivalents 357 12 — 369 Totals $ 813 $ 10,491 $ 1,648 $ 12,952 As of March 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ — $ — $ — $ — Global Stocks — — — — Global/International Equity commingled funds 246 2,260 — 2,506 Global equity mutual funds — — — — U.S./North American Equity commingled funds — 6 — 6 Fixed Income: Non-U.S. Government funds — — — — Fixed income commingled funds 1 42 15 58 Fixed income mutual funds — 4 — 4 Corporate bonds — 5,500 — 5,500 Alternatives: Other Alternatives (1) 1 2,706 1,930 4,637 Hedge Funds (2) — 10 1 11 Other Assets 70 65 85 220 Insurance contracts 4 380 — 384 Cash and cash equivalents 97 2 — 99 Totals $ 419 $ 10,975 $ 2,031 $ 13,425 (1) Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities. (2) Represents investments in diversified fund of hedge funds. Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows: (in millions) Balance as of March 31, 2020 $ 1,358 Actual return on plan assets held at the reporting date 233 Purchases, sales and settlements 279 Transfers in and / or out of Level 3 — Changes due to exchange rates 161 Balance as of March 31, 2021 2,031 Actual return on plan assets held at the reporting date (156) Purchases, sales and settlements (156) Transfers in and / or out of Level 3 — Changes due to exchange rates (71) Balance as of March 31, 2022 $ 1,648 Domestic and global equity accounts are categorized as Level 1 if the securities trade on national or international exchanges and are valued at their last reported closing price. Equity assets in commingled funds reporting a net asset value are categorized as Level 2 and valued using broker dealer bids or quotes of securities with similar characteristics. Fixed income accounts are categorized as Level 1 if traded on a publicly quoted exchange or as level 2 if investments in corporate bonds are primarily investment grade bonds, generally priced using model-based pricing methods that use observable market data as inputs. Broker dealer bids or quotes of securities with similar characteristics may also be used. Alternative investment fund securities are categorized as Level 1 if held in a mutual fund or in a separate account structure and actively traded through a recognized exchange, or as Level 2 if they are held in commingled or collective account structures and are actively traded. Alternative investment fund securities are classified as Level 3 if they are held in Limited Company or Limited Partnership structures or cannot otherwise be classified as Level 1 or Level 2. Other assets represent property holdings by certain pension plans. As above, the property holdings represent a master lease arrangement entered into by DXC in the U.K. and certain U.K. pension plans as a financing transaction. Insurance contracts purchased to cover benefits payable to retirees are valued using the assumptions used to value the projected benefit obligation. Cash equivalents that have quoted prices in active markets are classified as Level 1. Short-term money market commingled funds are categorized as Level 2 and valued at cost plus accrued interest which approximates fair value. Plan Asset Allocations As of Asset Category March 31, 2022 March 31, 2021 Equity securities 18 % 19 % Debt securities 37 % 42 % Alternatives 39 % 37 % Cash and other 6 % 2 % Total 100 % 100 % Plan assets are held in a trust that includes commingled funds subject to country specific regulations and invested primarily in commingled funds. For the U.K. pension plans, the Company's largest pension plans by assets and projected liabilities, a target allocation by asset class was developed to achieve their long-term objectives. Asset allocations are monitored closely and investment reviews regarding asset strategy are conducted regularly with internal and external advisors. The Company’s investment goals and risk management strategy for plan assets evaluates a number of factors, including the time horizon of the plans’ obligations. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification in order to reduce risk, yet produces a reasonable amount of return on investment over the long term. Sufficient liquidity is maintained to meet benefit obligations as they become due. Third party investment managers are employed to invest assets in both passively-indexed and actively-managed strategies. Equities are primarily invested broadly in domestic and foreign companies across market capitalizations and industries. Fixed income securities are invested broadly, primarily in government treasury, corporate credit, mortgage backed and asset backed investments. Alternative investment allocations are included in selected plans to achieve greater portfolio diversity intended to reduce the overall volatility risk of the plans. Plan asset risks include longevity, inflation, and other changes in market conditions that could reduce the value of plan assets. Also, a decline in the yield of high quality corporate bonds may adversely affect discount rates resulting in an increase in DXC's pension and other post-retirement obligations. These risks, among others, could cause the plans’ funded status to deteriorate, resulting in an increased reliance on Company contributions. Derivatives are permitted although their current use is limited within traditional funds and broadly allowed within alternative funds. Derivatives are used for inflation risk management and within the liability driven investing strategy. The Company also has investments in insurance contracts to pay plan benefits in certain countries. Return on Assets The Company consults with internal and external advisors regarding the expected long-term rate of return on assets. The Company uses various sources in its approach to compute the expected long-term rate of return of the major asset classes expected in each of the plans. DXC utilizes long-term, asset class return assumptions of typically 30 years, which are provided by external advisors. Consideration is also given to the extent active management is employed in each asset class and also to management expenses. A single expected long-term rate of return is calculated for each plan by assessing the plan's expected asset allocation strategy, the benefits of diversification therefrom, historical excess returns from actively managed traditional investments, expected long-term returns for alternative investments and expected investment expenses. The resulting composite rate of return is reviewed by internal and external parties for reasonableness. Retirement Plan Discount Rate The U.K. discount rate is based on the yield curve approach using the U.K. Aon Hewitt GBP Single Agency AA Corporates-Only Curve. Defined Contribution Plans The Company sponsors defined contribution plans for substantially all U.S. employees and certain foreign employees. For certain plans, the Company will match employee contributions.The plans allow employees to contribute a portion of their earnings in accordance with specified guidelines. During fiscal 2022, 2021 and 2020, the Company contributed $226 million, $221 million and $192 million, respectively, to its defined contribution plans. As of March 31, 2022, plan assets included 2,785,795 shares of the Company’s common stock. Deferred Compensation Plans Effective as of the HPES Merger, DXC assumed sponsorship of the Computer Sciences Corporation Deferred Compensation Plan, which was renamed the “DXC Technology Company Deferred Compensation Plan” (the “DXC DCP”), and adopted the Enterprise Services Executive Deferred Compensation Plan (the “ES DCP”). Both plans are non-qualified deferred compensation plans maintained for a select group of management, highly compensated employees and non-employee directors. The DXC DCP covers eligible employees who participated in CSC’s Deferred Compensation Plan prior to the HPES Merger. The ES DCP covers eligible employees who participated in the HPE Executive Deferred Compensation Plan prior to the HPES Merger. Both plans allow participating employees to defer the receipt of current compensation to a future distribution date or event above the amounts that may be deferred under DXC’s tax-qualified 401(k) plan, the DXC Technology Matched Asset Plan. Neither plan provides for employer contributions. As of April 3, 2017, the ES DCP does not admit new participants. Certain management and highly compensated employees are eligible to defer all, or a portion of, their regular salary that exceeds the limitation set forth in Internal Revenue Section 401(a)(17) and all or a portion of their incentive compensation. Non-employee directors are eligible to defer up to 100% of their cash compensation. The liability under the plan, which is included in other long-term liabilities in the Company's balance sheets, amounted to $36 million as of March 31, 2022 and $42 million as of March 31, 2021. The Company's expense under the Plan totaled $2 million and $8 million for fiscal 2022 and 2021 respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Description of Capital Stock The Company has authorized share capital consisting of 750,000,000 shares of common stock, par value $0.01 per share, and 1,000,000 shares of preferred stock, par value $0.01 per share. Each share of common stock is equal in all respects to every other share of common stock of the Company. Each share of common stock is entitled to one vote per share at each annual or special meeting of stockholders for the election of directors and upon any other matter coming before such meeting. Subject to all the rights of the preferred stock, dividends may be paid to holders of common stock as and when declared by the Board of Directors (the "Board"). The Company's charter requires that preferred stock must be all of one class but may be issued from time to time in one or more series, each of such series to have such full or limited voting powers, if any, and such designations, preferences and relative, participating, optional or other special rights or qualifications, limitations or restrictions as provided in a resolution adopted by the Board of Directors. Each share of preferred stock will rank on a parity with each other share of preferred stock, regardless of series, with respect to the payment of dividends at the respectively designated rates and with respect to the distribution of capital assets according to the amounts to which the shares of the respective series are entitled. Share Repurchase Program On April 3, 2017, DXC announced the establishment of a share repurchase program approved by the Board of Directors with an initial authorization of up to $2.0 billion for future repurchases of outstanding shares of DXC common stock. On November 8, 2018, DXC announced that its board of directors approved an incremental $2.0 billion share repurchase authorization. On February 2, 2022, DXC announced its intention to repurchase incrementally up to $1.0 billion of its outstanding shares of common stock in the open market. An expiration date has not been established for this repurchase plan. Share repurchases may be made from time to time through various means, including in open market purchases, 10b5-1 plans, privately-negotiated transactions, accelerated stock repurchases, block trades and other transactions, in compliance with Rule 10b-18 under the Exchange Act as well as, to the extent applicable, other federal and state securities laws and other legal requirements. The timing, volume, and nature of share repurchases pursuant to the share repurchase plan are at the discretion of management and may be suspended or discontinued at any time. The shares repurchased are retired immediately and included in the category of authorized but unissued shares. The excess of purchase price over par value of the common shares is allocated between additional paid-in capital and retained earnings. There was no share repurchase activity during fiscal 2021. The details of shares repurchased during fiscal 2022 and 2020 are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount 2022 Open market purchases 18,818,934 $33.67 $ 634 2022 Total 18,818,934 $33.67 $ 634 2020 Open market purchases 12,279,107 $43.67 $ 536 ASR 3,654,544 $54.73 $ 200 2020 Total 15,933,651 $46.21 $ 736 Treasury Stock Transactions In fiscal 2022, 2021 and 2020 the Company accepted 4,614, 4,050 and 38,902 shares of its common stock, respectively, in lieu of cash in connection with the exercise of stock options. In fiscal 2022, 2021 and 2020, the Company accepted 415,438, 305,269 and 321,148 shares of its common stock, respectively, in lieu of cash in connection with the tax withholdings associated with the release of common stock upon vesting of restricted stock and RSUs. As a result, the Company holds 2,878,079 treasury shares as of March 31, 2022. Dividends The Board of Directors (the “Board”) has suspended the Company’s cash dividend payment beginning in the first quarter of fiscal 2021 to preserve cash and enhance financial flexibility in the current environment. As of March 31, 2022 the Company does not intend to reinstate its quarterly cash dividends. During fiscal 2020, the Company declared dividends of $0.84 per common share totaling $219 million. Accumulated Other Comprehensive Loss The following table shows the changes in accumulated other comprehensive income (loss), net of taxes: (in millions) Foreign Currency Translation Adjustments Cash Flow Hedges Available-for-sale Securities Pension and Other Post-retirement Benefit Plans Accumulated Other Comprehensive Loss Balance at March 31, 2019 $ (517) $ (3) $ 9 $ 267 $ (244) Current-period other comprehensive loss (334) (15) — 0 — (349) Amounts reclassified from accumulated other comprehensive loss, net of taxes — (2) — (8) (10) Balance at March 31, 2020 $ (851) $ (20) $ 9 $ 259 $ (603) Current-period other comprehensive income (loss) 297 14 (9) — 302 Amounts reclassified from accumulated other comprehensive income (loss), net of taxes — 5 — (6) (1) Balance at March 31, 2021 $ (554) $ (1) $ — $ 253 $ (302) Current-period other comprehensive (loss) income (11) 17 — — 6 Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes (1) (86) (6) — 3 (89) Balance at March 31, 2022 $ (651) $ 10 $ — $ 256 $ (385) (1) Includes net cumulative foreign currency translation losses of $86 million upon sale of foreign entities primarily related to the HPS business divestiture. See Note 3 – “Divestitures” for additional information. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Equity Plans The Compensation Committee of the Board of Directors has broad authority to grant awards and otherwise administer the DXC Employee Equity Plan. The plan became effective March 30, 2017 and will continue in effect for a period of 10 years thereafter, unless terminated earlier by the Board. The Board has the authority to amend the plan in such respects as it deems desirable, subject to approval of DXC’s stockholders for material modifications. Restricted stock units ("RSUs") represent the right to receive one share of DXC common stock upon a future settlement date, subject to vesting and other terms and conditions of the award, plus any dividend equivalents accrued during the award period. In general, if the employee’s status as a full-time employee is terminated prior to the vesting of the RSU grant in full, then the RSU grant is automatically canceled on the termination date and any unvested shares and dividend equivalents are forfeited. Certain executives were awarded service-based "career share" RSUs for which the shares are settled over the 10 anniversaries following the executive's separation from service as a full-time employee, provided the executive complies with certain non-competition covenants during that period. The Company also grants PSUs, which generally vest over a period of three years. The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified financial performance criteria over a 3-year period. If the specified performance criteria are met, awards are settled for shares of DXC common stock and dividend equivalents upon the filing with the SEC of the Annual Report on Form 10-K for the last fiscal year of the performance period. PSU awards include the potential for up to 25% of the shares granted to be earned after the first and second fiscal years if certain of the Company's performance targets are met early, subject to vesting based on the participant's continued employment through the end of the three-year performance period. Beginning in fiscal 2021, DXC issued awards that are considered to have a market condition. A Monte Carlo simulation model was used for the valuation of the grants. Settlement of shares for these PSU awards will be made at the end of the third fiscal year subject to certain compounded annual growth rates of the stock price and continued employment through the last day of the third fiscal year. The terms of the DXC Director Equity Plan allow DXC to grant RSU awards to non-employee directors of DXC. Such RSU awards vest in full at the earlier of (i) the first anniversary of the grant date or (ii) the next annual meeting date, and are automatically redeemed for DXC common stock and dividend equivalents either at that time or, if an RSU deferral election form is submitted, upon the date or event elected by the director. Distributions made upon a director’s separation from the Board may occur in either a lump sum or in annual installments over periods of 5, 10, or 15 years, per the director’s election. In addition, RSUs vest in full upon a change in control of DXC. The DXC Share Purchase Plan allows DXC’s employees located in the U.K. to purchase shares of DXC’s common stock at the fair market value of such shares on the applicable purchase date. There were 29,391 shares purchased under this plan during fiscal 2022. The Board has reserved for issuance shares of DXC common stock, par value $0.01 per share, under each of the plans as detailed below: As of March 31, 2022 Reserved for issuance Available for future grants DXC Employee Equity Plan 51,200,000 31,331,818 DXC Director Equity Plan 745,000 361,651 DXC Share Purchase Plan 250,000 125,917 Total 52,195,000 31,819,386 The Company recognized share-based compensation expense for fiscal 2022, 2021 and 2020 as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Total share-based compensation cost $ 101 $ 56 $ 68 Related income tax benefit $ 14 $ 6 $ 12 Total intrinsic value of options exercised $ 8 $ 1 $ 8 Tax benefits from exercised stock options and awards $ 17 $ 6 $ 14 As of March 31, 2022, total unrecognized compensation expense related to unvested DXC RSUs, net of expected forfeitures was $151 million, respectively. The unrecognized compensation expense for unvested RSUs is expected to be recognized over a weighted-average period of 1.79 years. Stock Options The Company’s stock options vest one-third annually on each of the first three Number of Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2019 2,318,768 $ 30.40 4.80 $ 79 Granted — $ — Exercised (331,172) $ 31.36 $ 8 Canceled/Forfeited (2,213) $ 55.95 Expired (115,568) $ 34.97 Outstanding as of March 31, 2020 1,869,815 $ 29.92 4.27 $ — Granted — $ — Exercised (89,335) $ 16.01 $ 1 Canceled/Forfeited — $ — Expired (104,900) $ 33.53 Outstanding as of March 31, 2021 1,675,580 $ 30.43 3.61 $ 8 Granted — $ — Exercised (510,294) $ 23.27 $ 8 Canceled/Forfeited — $ — Expired (53,899) $ 35.57 Outstanding as of March 31, 2022 1,111,387 $ 33.47 3.01 $ 5 Vested and expected to vest in the future as of March 31, 2022 1,111,387 $ 33.47 3.01 $ 5 Exercisable as of March 31, 2022 1,111,347 $ 33.47 3.01 $ 5 As of March 31, 2022 Options Outstanding Options Exercisable Range of Option Exercise Price Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Number Exercisable Weighted Average Exercise Price $8.96 - $24.47 137,920 $ 19.89 1.89 137,920 $ 19.89 $25.14 - $41.92 518,356 $ 27.34 2.89 518,356 $ 27.34 $42.05 - $58.80 455,111 $ 44.59 3.49 455,111 $ 44.59 1,111,387 1,111,387 The cash received from stock options exercised during fiscal 2022, 2021 and 2020 was $12 million, $1 million and $9 million, respectively. Restricted Stock Information concerning RSUs and PSUs granted under the stock incentive plans was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of March 31, 2019 2,809,775 $ 67.27 Granted 3,166,405 $ 45.58 Released/Issued (1,039,346) $ 54.39 Canceled/Forfeited (762,358) $ 59.46 Outstanding as of March 31, 2020 4,174,476 $ 55.45 Granted 8,026,810 $ 20.92 Released/Issued (1,249,681) $ 52.82 Canceled/Forfeited (2,625,385) $ 35.16 Outstanding as of March 31, 2021 8,326,220 $ 28.98 Granted 2,972,253 $ 50.87 Released/Issued (2,141,180) $ 34.12 Canceled/Forfeited (1,680,167) $ 34.93 Outstanding as of March 31, 2022 7,477,126 $ 35.89 . Non-employee Director Incentives Information concerning RSUs granted to non-employee directors was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of March 31, 2019 75,750 $ 46.31 Granted 62,200 $ 35.90 Released/Issued (23,335) $ 60.90 Canceled/Forfeited — $ — Outstanding as of March 31, 2020 114,615 $ 37.69 Granted 118,500 $ 18.82 Released/Issued (48,455) $ 26.90 Canceled/Forfeited — $ — Outstanding as of March 31, 2021 184,660 $ 28.42 Granted 74,300 $ 35.18 Released/Issued (102,238) $ 21.43 Canceled/Forfeited — $ — Outstanding as of March 31, 2022 156,722 $ 36.18 |
Cash Flows
Cash Flows | 12 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flows | Cash Flows Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Cash paid for: Interest $ 227 $ 334 $ 371 Taxes on income, net of refunds (1) $ 394 $ 798 $ 247 Non-cash activities: Operating: ROU assets obtained in exchange for lease, net (2) $ 279 $ 530 $ 411 Prepaid assets acquired under long-term financing $ 107 $ 46 $ 99 Investing: Capital expenditures in accounts payable and accrued expenses $ 9 $ 341 $ 66 Capital expenditures through finance lease obligations $ 233 $ 348 $ 605 Assets acquired under long-term financing $ 44 $ 35 $ 376 Decrease in deferred purchase price receivable $ — $ (52) $ (205) Contingent consideration $ — $ 3 $ 18 Financing: Dividends declared but not yet paid $ — $ — $ 55 Shares repurchased but not settled in cash $ 6 $ — $ — (1) Income tax refunds were $54 million, $70 million, and $42 million for fiscal 2022, 2021, and 2020, respectively. (2) There were $1,085 million, $763 million, and $216 million in modifications and terminations in fiscal 2022, 2021, and 2020, respectively, and net of $87 million change in lease classification from operating to finance lease in fiscal 2020, |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Other (Income) Expense, Net The following table summarizes components of other (income) expense, net: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Non-service cost components of net periodic pension (income) expense $ (1,066) $ 110 $ (658) Foreign currency loss (gain) 13 14 (25) Other gain (28) (22) (37) Totals $ (1,081) $ 102 $ (720) Non-service cost components of net periodic pension expense resulted primarily from the actuarial gain of $664 million compared to the loss of $537 million prior year. See Note 15 - Pension and Other Benefit Plans. Foreign currency loss (gain) resulted from the movement of foreign currency exchange rates on the Company’s foreign currency denominated assets and liabilities, related hedges including options to manage its exposure to economic risk and the cost of the Company’s hedging program. Other gain primarily relates to gain on sale of non-operating assets. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. DXC's chief operating decision maker ("CODM"), the chief executive officer, obtains, reviews, and manages the Company’s financial performance based on these segments. The CODM uses these results, in part, to evaluate the performance of, and allocate resources to, each of the segments. Global Business Services GBS provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. GBS offerings include: • Analytics and Engineering . Our portfolio of analytics services and extensive partner ecosystem help customers gain rapid insights, automate operations, and accelerate their transformation journeys. We provide software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. • Applications. We use advanced technologies and methods to accelerate the creation, modernization, delivery and maintenance of high-quality, secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership. We support customers across all industries, including public sector, insurance, banking and capital markets, and automotive. • Business process services . We perform the integration and optimization of front and back office processes, as well as agile process automation. This helps companies to reduce cost and minimize business disruption, human error, and operational risk while improving customer experiences. Global Infrastructure Services GIS provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. GIS offerings include: • Cloud and Security. We help customers rapidly modernize by adapting legacy apps to cloud, migrate the right workloads, and effectively manage their multi-cloud environments. Our security solutions help predict attacks, proactively respond to threats, ensure compliance and protect data, applications and infrastructure. • IT Outsourcing ("ITO"). Our ITO services help customers securely and cost-effectively run mission-critical systems and IT infrastructure. We manage and simplify our customers’ existing IT investments, reduce the costs to run them and provide a path for customers to move portions of their IT estates to the cloud to drive innovation and additional savings. • Modern Workplace. We provide services to fit our customer’s employee, business and IT needs from intelligent collaboration, modern device management, digital support services, and mobility services. Our focus on the employee experience provides a consumer-like, digital experience that fits the needs of today's professional. Segment Measures The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2022 Revenues $ 7,598 $ 8,667 $ 16,265 $ — $ 16,265 Segment Profit $ 1,160 $ 475 $ 1,635 $ (260) $ 1,375 Depreciation and amortization (1) $ 180 $ 991 $ 1,171 $ 112 $ 1,283 Fiscal Year Ended March 31, 2021 Revenues $ 8,336 $ 9,393 $ 17,729 $ — $ 17,729 Segment Profit $ 1,120 $ 245 $ 1,365 $ (263) $ 1,102 Depreciation and amortization (1) $ 212 $ 1,122 $ 1,334 $ 106 $ 1,440 Fiscal Year Ended March 31, 2020 Revenues $ 9,111 $ 10,466 $ 19,577 $ — $ 19,577 Segment Profit $ 1,301 $ 1,007 $ 2,308 $ (247) $ 2,061 Depreciation and amortization (1) $ 199 $ 1,051 $ 1,250 $ 109 $ 1,359 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $434 million, $530 million, and $583 million for fiscal 2022, 2021, and 2020, respectively. Reconciliation of Reportable Segment Profit to Consolidation The Company's management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenues less cost of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on DXC's foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs and amortization of acquired intangible assets. Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Total profit for reportable segments $ 1,635 $ 1,365 $ 2,308 All other loss (260) (263) (247) Subtotal $ 1,375 $ 1,102 $ 2,061 Interest income 65 98 165 Interest expense (204) (361) (383) Restructuring costs (318) (551) (252) Transaction, separation and integration-related costs (26) (358) (318) Amortization of acquired intangibles (434) (530) (583) Gains on dispositions 341 2,004 — Pension and OPEB actuarial and settlement gains (losses) 684 (519) 244 Debt extinguishment cost (311) (41) — Impairment losses (31) (190) (6,794) Gain on arbitration award — — 632 Income (loss) before income taxes $ 1,141 $ 654 $ (5,228) Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment is not disclosed. Geographic Information See Note 21 - "Revenue" for the Company's revenue by geography. Property and equipment, net, which is based on the physical location of the assets, was as follows: As of (in millions) March 31, 2022 March 31, 2021 United States $ 975 $ 1,189 U.K. 415 465 Australia 120 149 Other Europe 460 603 Other International 442 540 Total Property and Equipment, net $ 2,412 $ 2,946 No single customer exceeded 10% of the Company’s revenues during fiscal 2022, fiscal 2021 or fiscal 2020. |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition The following table presents DXC's revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services: Twelve Months Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 United States $ 4,775 $ 5,983 $ 7,225 U.K. 2,295 2,413 2,776 Other Europe 5,117 5,129 5,121 Australia 1,549 1,529 1,487 Other International 2,529 2,675 2,968 Total Revenues $ 16,265 $ 17,729 $ 19,577 The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 20 - "Segment and Geographic Information" for the Company’s segment disclosures. Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that has not materialized and adjustments for currency. As of March 31, 2022, approximately $22 billion of revenue is expected to be recognized from remaining performance obligations. The Company expects to recognize revenue on approximately 39% of these remaining performance obligations in fiscal 2023, with the remainder of the balance recognized thereafter. Contract Balances The following table provides information about the balances of the Company's trade receivables and contract assets and contract liabilities: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Trade receivables, net Receivables and contract assets, net of allowance for doubtful accounts $ 2,694 $ 2,871 Contract assets Receivables and contract assets, net of allowance for doubtful accounts $ 371 $ 351 Contract liabilities Deferred revenue and advance contract payments and Non-current deferred revenue $ 1,915 $ 1,701 Change in contract liabilities were as follows: (in millions) Twelve Months Ended March 31, 2022 Twelve Months Ended March 31, 2021 Balance, beginning of period $ 1,701 $ 1,756 Deferred revenue 3,099 2,933 Recognition of deferred revenue (2,770) (2,922) Currency translation adjustment (43) 128 Other (1) (72) (194) Balance, end of period $ 1,915 $ 1,701 (1) For fiscal 2021, Other included contract liabilities of $52 million related to the divested HHS business and $62 million related to the HPS business and other insignificant businesses reclassified to assets held for sale. See note Note 3 - "Divestitures and Note 4 - "Assets Held for Sale" for more information. The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract: As of (in millions) March 31, 2022 March 31, 2021 Capitalized sales commission costs (1) $ 191 $ 256 Transition and transformation contract costs, net (2) $ 818 $ 888 Amortization expense of capitalized sales commission and transition and transformation contract costs were as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Capitalized sales commission costs amortization (1) $ 85 $ 70 $ 72 Transition and transformation contract cost amortization (2) $ 227 $ 264 $ 280 (1) Capitalized sales commission costs are included within other assets in the accompanying balance sheets and amortization expense related to the capitalized sales commission assets are included in selling, general, and administrative expenses in the accompanying statements of operations. (2) Transition and transformation contract costs, net reflect the Company’s setup costs incurred upon initiation of an outsourcing contract and are included within other assets in the accompanying balance sheets and amortization expense are included within depreciation and amortization in the accompanying statements of operations. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Restructuring Costs The Company recorded restructuring costs, net of reversals, of $318 million, $551 million and $252 million for fiscal 2022, 2021 and 2020, respectively. The costs recorded during fiscal 2022 were largely the result of implementing the Fiscal 2022 Plan as described below. The composition of restructuring liabilities by financial statement line items is as follows: As of (in millions) March 31, 2022 March 31, 2021 Accrued expenses and other current liabilities $ 113 $ 225 Other long-term liabilities 39 45 Total $ 152 $ 270 Summary of Restructuring Plans Fiscal 2022 Plan During fiscal 2022, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2022 Plan”). Also included in restructuring costs for the fiscal year ended March 31, 2022 is $18 million related to amortization of right-of-use assets and interest expense for leased facilities that we have vacated but that are being actively marketed for sublease, or we are in negotiations with the landlord to potentially terminate or modify those leases. Fiscal 2021 Plan During fiscal 2021, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2021 Plan”). The Fiscal 2021 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2021 Plan total $541 million, comprising $499 million in employee severance and $42 million of facilities costs. Fiscal 2020 Plan During fiscal 2020, management approved cost savings initiatives designed to reduce operating costs by re-balancing its workforce and facilities structures (the "Fiscal 2020 Plan"). The Fiscal 2020 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2020 Plan total $294 million, comprising $277 million in employee severance and $17 million of facilities costs. Other Prior Year Plans In June 2017, management approved a post-HPES Merger restructuring plan to optimize the Company’s operations in response to a continuing business contraction. Other prior year plans focus mainly on optimizing specific aspects of the global workforce, increasing the proportion of work performed in low-cost offshore locations and re-balancing the organizational structure. Additionally, these plans included global facility restructuring, including a global data center restructuring program. Costs incurred to date under other prior year plans total $1,478 million, comprising $1,141 million in employee severance and $337 million of facilities costs. Acquired Restructuring Liabilities As a result of the merger of Computer Sciences Corporation ("CSC") and HPES ("HPES Merger"), DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors. Restructuring activities, summarized by plan year, were as follows: Restructuring Liability as of March 31, 2021 Costs Expensed, Costs Not Affecting Restructuring Liability (1) Cash Paid Other (2) Restructuring Liability as of March 31, 2022 Fiscal 2022 Plan Workforce Reductions $ — $ 228 $ (5) $ (133) $ (6) $ 84 Facilities Costs — 92 (62) (30) 1 1 — $ 320 (67) (163) (5) 85 Fiscal 2021 Plan Workforce Reductions $ 180 $ (2) $ — $ (142) $ (3) $ 33 Facilities Costs 3 5 (5) (2) — 1 183 3 (5) (144) (3) 34 Fiscal 2020 Plan Workforce Reductions (3) $ 27 $ (2) $ — $ (18) $ (1) $ 6 Facilities Costs — — — — — — 27 (2) — (18) (1) 6 Other Prior Year Plans Workforce Reductions $ 19 $ 2 $ — $ (17) $ — $ 4 Facilities Costs 6 (1) 1 (4) — 2 25 1 1 (21) — 6 Acquired Liabilities Workforce Reductions $ 34 $ (4) $ — $ (7) $ (2) $ 21 Facilities Costs 1 — — (1) — — $ 35 (4) — (8) (2) 21 Total $ 270 $ 318 $ (71) $ (354) $ (11) $ 152 (1) Pension benefit augmentations recorded as a pension liability and asset impairments and restructuring costs associated with right-of-use assets. (2) Foreign currency translation adjustments. Restructuring Liability as of March 31, 2020 Costs Expensed, Net of Reversals Costs Not Affecting Restructuring Liability (1) Cash Paid Other (2) Restructuring Liability as of March 31, 2021 Fiscal 2021 Plan Workforce Reductions $ — $ 501 $ (11) $ (313) $ 3 $ 180 Facilities Costs — 37 (17) (14) (3) 3 — 538 (28) (327) — 183 Fiscal 2020 Plan Workforce Reductions (3) $ 74 $ 8 $ 1 $ (60) $ 4 $ 27 Facilities Costs 2 (4) 4 (2) — — 76 4 5 (62) 4 27 Fiscal 2019 Plan Workforce Reductions $ 25 $ (1) $ (2) $ (17) $ 2 $ 7 Facilities Costs 5 (2) 1 (1) 3 6 30 (3) (1) (18) 5 13 Other Prior Year Plans Workforce Reductions $ 24 $ 12 $ (7) $ (19) $ 2 $ 12 Facilities Costs — — — — — — 24 12 (7) (19) 2 12 Acquired Liabilities Workforce Reductions $ 39 $ 1 $ — $ (7) $ 1 $ 34 Facilities Costs 11 (1) 1 (9) (1) 1 50 — 1 (16) — 35 Total $ 180 $ 551 $ (30) $ (442) $ 11 $ 270 (1) Pension benefit augmentations recorded as a pension liability and asset impairment. (2) Foreign currency translation adjustments. (3) Fiscal 2020 workforce reductions includes a $14 million adjustment to restructuring expense related to the prior year. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company signed long-term purchase agreements with certain software, hardware, telecommunication and other service providers to obtain favorable pricing and terms for services and products that are necessary for the operations of business activities. Under the terms of these agreements, the Company is contractually committed to purchase specified minimums over periods ranging from one Fiscal year Minimum Purchase Commitment (in millions) 2023 $ 828 2024 393 2025 249 2026 239 2027 14 Total $ 1,723 In the normal course of business, the Company may provide certain customers with financial performance guarantees, and at times performance letters of credit or surety bonds. In general, the Company would only be liable for the amounts of these guarantees in the event that non-performance by the Company permits termination of the related contract by the Company’s customer. The Company believes it is in compliance with its performance obligations under all service contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on its consolidated results of operations or financial position. The Company also uses stand-by letters of credit, in lieu of cash, to support various risk management insurance policies. These letters of credit represent a contingent liability and the Company would only be liable if it defaults on its payment obligations on these policies. The following table summarizes the expiration of the Company’s financial guarantees and stand-by letters of credit outstanding as of March 31, 2022: (in millions) Fiscal 2023 Fiscal 2024 Fiscal 2025 and Thereafter Totals Surety bonds $ 86 $ 7 $ 6 $ 99 Letters of credit 77 47 575 699 Stand-by letters of credit 70 31 9 110 Totals $ 233 $ 85 $ 590 $ 908 The Company generally indemnifies licensees of its proprietary software products against claims brought by third parties alleging infringement of their intellectual property rights, including rights in patents (with or without geographic limitations), copyrights, trademarks and trade secrets. DXC’s indemnification of its licensees relates to costs arising from court awards, negotiated settlements, and the related legal and internal costs of those licensees. The Company maintains the right, at its own cost, to modify or replace software in order to eliminate any infringement. The Company has not incurred any significant costs related to licensee software indemnification. Contingencies Insurance Recovery re Kemper Litigation: The Company previously disclosed litigation with Kemper Corporate Services, Inc., in which an arbitration award was issued against the Company in October 2017. Following a series of appeals, the Company paid the balance of the judgment in February 2020, which net of insurance recovery, totaled $60 million. The Company has since recovered an additional $37 million from its insurance carriers and continues to pursue additional recovery. All material issues pertaining to this matter have concluded. Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise: On August 18, 2016, this purported class and collective action was filed in the U.S. District Court for the Northern District of California, against HP and HPE alleging violations of the Federal Age Discrimination in Employment Act (“ADEA”), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code. Former business units of HPE now owned by the Company may be proportionately liable for any recovery by plaintiffs in this matter. Plaintiffs seek to certify a nationwide class action under the ADEA comprised of all U.S. residents employed by defendants who had their employment terminated pursuant to a work force reduction (“WFR”) plan and who were 40 years of age or older at the time of termination. The class seeks to cover those impacted by WFRs on or after December 2014. Plaintiffs also seek to represent a Rule 23 class under California law comprised of all persons 40 years of age or older employed by defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. In January 2017, defendants filed a partial motion to dismiss and a motion to compel arbitration of claims by certain named and opt-in plaintiffs who had signed release agreements as part of their WFR packages. In September 2017, the Court denied the partial motion to dismiss without prejudice, but granted defendants’ motions to compel arbitration for those named and opt-in plaintiffs. The Court stayed the entire action pending arbitration for these individuals, and administratively closed the case. A mediation was held in October 2018 with the 16 named and opt-in plaintiffs who were involved in the case at that time. A settlement was reached, which included seven plaintiffs who were employed by former business units of HPE that are now owned by the Company. In June 2019, a second mediation was held with 145 additional opt-in plaintiffs who were compelled to arbitration pursuant to their release agreements. In December 2019, a settlement was reached with 142 of the opt-in plaintiffs, 35 of whom were employed by former business units of HPE that are now owned by the Company, and for which the Company was liable. In December 2020, Plaintiffs filed a motion for preliminary certification of the collective action, which Defendants opposed. In April 2021, the court granted Plaintiffs’ motion for preliminary certification and lifted the previously imposed stay of the action. In November 2021, notice was sent to putative members of the ADEA collectives regarding participation in the case. In February 2022, the notice period closed. Former business units of the Company now owned by Perspecta may be proportionately liable for any recovery by plaintiffs in this matter. Oracle America, Inc., et al. v. Hewlett Packard Enterprise Company: On March 22, 2016, Oracle filed a complaint against HPE in the Northern District of California, alleging copyright infringement, interference with contract, intentional interference with prospective economic relations, and unfair competition. The litigation relates in part to former business units of HPE that are now owned by the Company. The Company may be required to indemnify HPE for a portion of any recovery by Oracle in the litigation related to these business units. Oracle’s claims arise primarily out of HPE’s prior relationship with a third-party maintenance provider named Terix Computer Company, Inc. (“Terix”). Oracle claims that Terix infringed its copyrights while acting as HPE’s subcontractor for certain customers of HPE’s multivendor support business. Oracle claims that HPE is liable for vicarious and contributory infringement arising from the alleged actions of Terix and for direct infringement arising from HPE's own alleged conduct. On January 29, 2019, the court granted HPE’s motion for summary judgment and denied Oracle’s motion for summary judgment, resolving the matter in HPE’s favor. Oracle appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit. In August 2020, the court granted Oracle's appeal in part. The case was then remanded to the District Court for further proceedings . In January 2021, the District Court entered a scheduling order that provided for summary judgment briefing to be completed by May 2021 and a trial date in November 2021. In June 2021, the Court issued a decision denying HPE’s motion for summary judgment and granting Oracle’s motion for summary judgment on various HPE defenses. In November 2021, the court issued an order continuing the trial to May 2022. The trial is scheduled to begin on May 23, 2022. In re DXC Technology Company Securities Litigation: Previously disclosed matters have been dismissed, with one case remaining, in the Superior Court of the State of California. On August 20, 2019, a purported class action lawsuit was filed in the Superior Court of the State of California, County of Santa Clara, against the Company, directors of the Company, and a former officer of the Company, among other defendants. The action asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, and is premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s prospects and expected performance. The putative class of plaintiffs includes all persons who acquired shares of the Company’s common stock pursuant to the offering documents filed with the Securities and Exchange Commission in connection with the April 2017 transaction that formed DXC. The State of California action had been stayed pending the outcome of the substantially similar federal action filed in the United States District Court for the Northern District of California. The federal action was dismissed with prejudice in December 2021. Thereafter, the state court lifted the stay and entered an order permitting additional briefing by the parties. In March 2022, Plaintiffs filed an amended complaint. In April 2022, the Company moved to dismiss the amended complaint. A hearing on the Company’s motion to dismiss is scheduled for August 2022. The Company believes that the final remaining lawsuit described above is also without merit, and it intends to vigorously defend it. Tax Examinations: The Company is under IRS examination in the U.S. on its federal income tax returns for certain fiscal years and is in disagreement with the IRS on certain of our tax positions. For more detail, see Note 13 - "Income Taxes" for further information. In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management's view of the expected outcome. DXC consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In order to make this report easier to read, DXC refers throughout to (i) the Consolidated Financial Statements as the “financial statements,” (ii) the Consolidated Statements of Operations as the “statements of operations,” (iii) the Consolidated Statement of Comprehensive Income (Loss) as the "statements of comprehensive income," (iv) the Consolidated Balance Sheets as the “balance sheets,” and (v) the Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references throughout to numbered “Notes” refer to the numbered Notes in these Notes to Consolidated Financial Statements. |
Use of Estimates | Use of Estimates The preparation of the financial statements, in accordance with GAAP, requires the Company's management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. The severity, magnitude and duration, as well as the economic consequences of the ongoing COVID-19 crisis, are uncertain, rapidly changing and difficult to predict. Therefore, accounting estimates and assumptions may change over time in response to the COVID-19 crisis and may change materially in future periods. Estimates are used for, but not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company's management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. |
Leases | Leases Effective April 1, 2019, the Company adopted ASU 2016-02, "Leases (ASC 842)" using the modified retrospective method. Refer to Note 7 - "Leases" for required disclosures. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether DXC obtains substantially all economic benefits from and has the ability to direct the use of the asset. Operating leases are included in operating right-of-use ("ROU") assets, net, current operating lease liabilities and non-current operating lease liabilities in DXC's balance sheets. Finance leases are included in property and equipment, net, short-term debt and current maturities of long-term debt and long-term debt, net of current maturities in DXC's balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating ROU assets and operating lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, DXC uses its incremental borrowing rate based on the information available at commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest that DXC would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. The rate is dependent on several factors, including the lease term, currency of the lease payments and the Company's credit ratings. Operating ROU assets also include any lease payments made and exclude lease incentives. The Company's lease terms may include options to extend or terminate the lease. Operating ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised. Lease arrangements generally do not contain any residual value guarantees or material restrictive covenants. |
Revenue Recognition | Revenue Recognition The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenues are recognized when control of the promised goods or services is transferred to DXC's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. DXC determines revenue recognition through the five-step model as follows: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation DXC's IT outsourcing ("ITO") arrangements typically reflect a single performance obligation that comprises a series of distinct services which are substantially the same and provided over a period of time using the same measure of progress. Revenue derived from these arrangements is recognized over time based upon the level of services delivered in the distinct periods in which they are provided based on time increments. When other parties are involved in providing goods or services as part of our customer arrangements, DXC recognizes revenue on a gross basis as a principal when it controls goods or services before they are transferred to the customer. DXC's contracts often include upfront fees billed for activities to familiarize DXC with the customers' operations, take control over their administration and operation, and adapt them to DXC's solutions. Upfront fees are generally recognized ratably over the contract period, which approximates the manner in which the services are provided. These activities typically do not qualify as performance obligations, and the related revenues are allocated to the relevant performance obligations and recognized ratably over time as the performance obligation is satisfied during the period in which DXC provides the related service, which is typically the life of the contract. Software transactions that include multiple performance obligations are described below. For contracts with multiple performance obligations, DXC allocates the contract’s transaction price to each performance obligation based on the relative standalone selling price of each distinct good or service in the contract. Other than software sales involving multiple performance obligations, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. DXC's ITO arrangements may also contain embedded leases for equipment used to fulfill services. A contract with a customer includes an embedded lease when DXC grants the customer a right to control the use of an identified asset for a period of time in exchange for consideration. Embedded leases with customers are typically recognized either as sales type leases in which revenue and co st of sales is recognized upon lease commencement; or they may be recognized as operating leases in which revenue is recognized over the usage period. Where a contract contains an embedded lease, the contract’s transaction price is allocated to the contract performance obligations and the lease component based upon the relative standalone selling price. The transaction price of a contract is determined based on fixed and variable consideration. Variable consideration related to the Company’s ITO offerings often includes volume-based pricing that is allocated to the distinct days of the services to which the variable consideration pertains. However, in certain cases, estimates of variable consideration, including penalties, contingent milestone payments and rebates are necessary. The Company only includes estimates of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. These judgments involve consideration of historical and expected experience with the customer and other similar customers, and the facts and circumstances specific to the arrangement. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and software contracts for which revenue is recognized in the following manner: Time and materials contracts . Revenue is recognized over time at agreed-upon billing rates when services are provided. Unit-price contracts. Revenue is recognized over time based on unit metrics multiplied by the agreed upon contract unit price or when services are delivered. Fixed-price contracts. For certain fixed-price contracts, revenue is recognized over time using a method that measures the extent of progress towards completion of a performance obligation, generally using a cost-input method (referred to as the percentage-of-completion cost-to-cost method). Under the percentage-of-completion cost-to-cost method, revenue is recognized based on the proportion of total cost incurred to estimated total costs at completion. A performance obligation's estimate at completion includes all direct costs such as materials, labor, subcontractor costs, overhead, and a ratable portion of general and administrative costs. If output or input measures are not available or cannot be reasonably estimated, revenue is deferred until progress can be measured and costs are not deferred unless they meet the criteria for capitalization. Under the percentage-of-completion cost-to-cost method, progress towards completion is measured based on either achievement of specified contract milestones, costs incurred as a proportion of estimated total costs, or other measures of progress when appropriate. Profit in a given period is reported at the estimated profit margin to be achieved on the overall contract. Software contracts. Certain of DXC's arrangements involve the sale of DXC proprietary software, post contract customer support, and other software-related services. The standalone selling price generally is determined for each performance obligation using an adjusted market assessment approach based on the price charged where each deliverable is sold separately. In certain limited cases (typically for software licenses) when the historical selling price is highly variable, the residual approach is used. This approach allocates revenue to the performance obligation equal to the difference between the total transaction price and the observable standalone selling prices for the other performance obligations. Revenue from distinct software licenses is recognized at a point in time when the customer can first use the software license. If significant customization is required, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. Revenue for post contract customer support and other software services is recognized over time as those services are provided . Modifications. Co ntracts with our customers may be modified over the course of the contract term and may change the scope, price or both of the existing contract. Contract modifications are reviewed to determine whether they should be accounted for as part of the original contract, the termination of an existing contract and the creation of a new contract, or as a separate contract. Contract modifications are a separate contract when the modification provides additional goods and services that are distinct and the transaction price is at the standalone selling price. If the contract modification is part of the existing contract, a cumulative adjustment to revenue is recorded. If the contract modification represents the termination of the existing contract and the creation of a new contract, the modified transaction price is allocated to the prospective performance obligations and any embedded lease components. If a contract modification modifies an embedded lease component and the modification is not accounted for as a separate contract, the classification of the lease is reassessed. Practical Expedients and Exemptions DXC does not adjust the promised amount of consideration for the effects of a significant financing component when the period between when DXC transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. In addition, the Company reports revenue net of any revenue-based taxes assessed by a governmental authority that are imposed on and concurrent with specific revenue-producing transactions, such as sales taxes and value-added taxes. Contract Balances The timing of revenue recognition, billings and cash collections results in accounts receivable (billed receivables, unbilled receivables and contract assets) and deferred revenue and advance contract payments (contract liabilities) on the Company's balance sheets. In arrangements that contain an element of customized software solutions, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g. monthly) or upon achievement of certain contractual milestones. Generally, billing occurs subsequent to revenue recognition, sometimes resulting in contract assets if the related billing is conditional upon more than just the passage of time. However, the Company sometimes receives advances or deposits from customers, before revenue is recognized, which results in the generation of contract liabilities. Payment terms vary by type of product or service being provided as well as by customer, although the term between invoicing and when payment is due is generally an insignificant period of time. Costs to Obtain a Contract Certain sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The majority of sales commissions are paid based on the achievement of quota-based targets. These costs are deferred and amortized on a straight-line basis over an average period of benefit determined to be five years. The Company determined the period of benefit considering the length of its customer contracts, its technology, and other factors. The period of benefit approximates the average stated contract terms, excluding expected future renewals because sales commissions are paid upon contract renewal in a manner commensurate with the initial commissions. Some commission payments are not capitalized because they are expensed during the fiscal year as the related revenue is recognized. Capitalized sales commissions costs are classified within other assets and amortized in selling, general and administrative expenses. Costs to Fulfill a Contract Certain contract setup costs incurred upon initiation or renewal of an outsourcing contract that generate or enhance resources to be used in satisfying future performance obligations are capitalized when they are deemed recoverable. Judgment is applied to assess whether contract setup costs are capitalizable. Costs that generate or enhance resources often pertain to activities that enhance the capabilities of the services, improve customer experience, and establish a more effective and efficient IT environment. The Company recognizes these transition and transformation contract costs as other assets, which are amortized over the respective contract life. |
Pension and Other Benefit Plans | Pension and Other Benefit Plans The Company accounts for its pension, other post-retirement benefit ("OPEB"), defined contribution and deferred compensation plans using the guidance of ASC 710 "Compensation – General" and ASC 715 "Compensation – Retirement Benefits." The Company recognizes actuarial gains and losses and changes in fair value of plan assets in earnings at the time of plan remeasurement as a component of net periodic benefit expense. Typically plan remeasurement occurs annually during the fourth quarter of each fiscal year. The remaining components of pension and OPEB expense, primarily current period service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Inherent in the application of the actuarial methods are key assumptions, including, but not limited to, discount rates, expected long-term rates of return on plan assets, mortality rates, rates of compensation increases, and medical cost trend rates. Company management evaluates these assumptions annually and updates assumptions as necessary. The fair value of assets is determined based on the prevailing market prices or estimated fair value of investments when quoted prices are not available. |
Software Development Costs | Software Development Costs After establishing technological feasibility, and until such time as the software products are available for general release to customers, the Company capitalizes costs incurred to develop commercial software products to be sold, leased or otherwise marketed. Costs incurred to establish technological feasibility are charged to expense as incurred. Enhancements to software products are capitalized where such enhancements extend the life or significantly expand the marketability of the products. Amortization of capitalized software development costs is determined separately for each software product. Annual amortization expense is calculated based on the greater of the ratio of current gross revenues for each product to the total of current and anticipated future gross revenues for the product or the straight-line amortization method over the estimated useful life of the product. Unamortized capitalized software costs associated with commercial software products are periodically evaluated for impairment on a product-by-product basis by comparing the unamortized balance to the product’s net realizable value. The net realizable value is the estimated future gross revenues from that product reduced by the related estimated future costs. When the unamortized balance exceeds the net realizable value, the unamortized balance is written down to the net realizable value and an impairment charge is recorded. The Company capitalizes costs incurred to develop internal-use computer software during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. Capitalized costs associated with internal-use software are amortized on a straight-line basis over the estimated useful life of the software. Purchased software is capitalized and amortized over the estimated useful life of the software. Internal-use software assets are evaluated for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Share-Based Compensation | Share-Based Compensation Share-based awards are accounted for under the fair value method. The Company provides different forms of share-based compensation to its employees and non-employee directors. This generally includes restricted stock units ("RSUs"), including performance-based restricted stock units ("PSUs"). The fair value of the awards is determined on the grant date, based on the Company's closing stock price. For awards settled in shares, the Company recognizes compensation expense based on the grant-date fair value net of estimated forfeitures over the vesting period. For awards settled in ca sh, the Company recognizes compensation expense based on the fair value at each reporting date net of estimated forfeitures. The Company uses a Monte Carlo simulation model to compute the estimated fair value of PSUs with a market condition. This model includes assumptions regarding term, risk-free interest rates, expected volatility and dividend yields, which are evaluated each time the Company issues an award. The risk-free rate equals the yield, as of the Valuation Date on semi-annual zero-coupon U.S. Treasury rates. The dividend yield assumption is based on the respective fiscal year dividend payouts. Expected volatility is based on a historical approach, therefore the expected volatility assumption is based on the performance period of the award. |
Business Combinations | Business Combinations Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's statements of operations. For contingent consideration recorded as a liability, the Company initially measures the amount at fair value as of the acquisition date and adjusts the liability, if needed, to fair value each reporting period. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recognized as income or expense. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill Impairment Analysis | Goodwill Impairment Analysis The Company tests goodwill for impairment on an annual basis as of the first day of the second fiscal quarter and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company has defined its reporting units as its reportable segments. A significant amount of judgment is involved in determining whether an event indicating impairment has occurred between annual testing dates. Such indicators include: a significant decline in the Company's stock price, a significant decline in expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, the disposal of a significant component of a reporting unit and the testing for recoverability of a significant asset group within a reporting unit. The Company initially assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. This qualitative assessment considers all relevant factors specific to the reporting units, including macroeconomic conditions, industry and market considerations, overall financial performance, and relevant entity-specific events. If the Company determines that it is not more likely that the carrying amount for a reporting unit is less than its fair value, then subsequent quantitative goodwill impairment testing is not required. If the Company determines that it is more likely than not that the carrying amount for a reporting unit is greater than its fair value, then it proceeds with a subsequent quantitative goodwill impairment test. The Company has the option to bypass the initial qualitative assessment stage and proceed directly to the quantitative goodwill impairment test. The quantitative goodwill impairment test compares each reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if a reporting unit’s fair value is less than its carrying value, then an impairment charge is recorded in the amount of the excess . When the Company performs the quantitative goodwill impairment test for a reporting unit, it estimates the fair value of the reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value using a discount rate. Cash flow projections are based on management's estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of each reporting unit, the weighted-average cost of capital and its underlying forecasts. The market approach estimates fair value by applying performance-metric multiples to the reporting unit's prior and expected operating performance. The multiples are derived from comparable publicly traded companies that have operating and investment characteristics similar to those of the reporting unit. If the fair value of the reporting unit derived using one approach is significantly different from the fair value estimate using the other approach, the Company reevaluates its assumptions used in the two models. Assumptions are modified as considered appropriate under the circumstances until the two models yield similar and reasonable results. The fair values determined by the market approach and income approach, as described above, are weighted to determine the fair value for each reporting unit. The weighting ascribed to the market approach fair value assigned to each reporting unit is influenced by two primary factors: (1) the number of comparable publicly traded companies used in the market approach, and (2) the similarity of the operating and investment characteristics of the reporting units to the comparable publicly traded companies used in the market approach. If DXC performs a quantitative goodwill impairment test for all of its reporting units in conjunction with its annual goodwill testing, it also compares the sum of all of its reporting units’ fair values to the Company's market capitalization (per-share stock price multiplied by the number of shares outstanding) and calculates an implied control premium representing the excess of the sum of the reporting units’ fair values over the market capitalization. The Company evaluates the reasonableness of the control premium by comparing it to control premiums derived from recent comparable business combinations. If the implied control premium is not supported by market data, the Company reconciles its fair value estimates of the reporting units to a market capitalization supported by relevant market data. As a result, when DXC’s stock price and thus market capitalization is low relative to the sum of the estimated fair value of its reporting units, this reconciliation can result in reductions to the estimated fair values for the reporting units. |
Fair Value | Fair Value The Company applies fair value accounting for its financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The objective of a fair value measurement is to estimate the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal market for that asset or liability, or in the absence of the principal market, the most advantageous market. Assets and liabilities subject to fair value measurement disclosures are required to be classified according to a three-level fair value hierarchy with respect to the inputs used to determine fair value. The level in which an asset or liability is disclosed within the fair value hierarchy is based on the lowest level input that is significant to the related fair value measurement in its entirety. The levels of input are defined as follows: 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. |
Receivables | Receivables The Company records receivables at their face amounts less an allowance for doubtful accounts. Receivables consist of amounts billed and currently due from customers, amounts earned but unbilled (including contracts measured under the percentage-of-completion cost-to-cost method of accounting), amounts retained by the customer until the completion of a specified contract, negotiation of contract modification and claims. Unbilled recoverable amounts under contracts in progress generally become billable upon the passage of time, the achievement of project milestones, or upon acceptance by the customer. Allowances for uncollectible billed trade receivables are estimated based on a combination of write-off history, aging analysis, any known collectability issues, and certain forward-looking information. DXC uses receivables securitization facilities or receivables sales facilities in the normal course of business as part of managing its cash flows. The Company accounts for receivables sold under these facilities as a sale of financial assets pursuant to ASC 860 “Transfers and Servicing” and derecognizes these receivables, as well as the related allowances, from its balance sheets. Generally, the fair value of the sold receivables approximates the book value due to the short-term nature and, as a result, no gain or loss on sale of receivables is recorded. Under the receivables securitization facility, the deferred purchase price (the "DPP") receivable is recorded at fair value, which is determined by calculating the expected amount of cash to be received based on unobservable inputs consisting of the face amount of the receivables adjusted for anticipated credit losses. The Company reflects cash flows related to its beneficial interests in securitization transactions, which is the DPP recorded in connection with the Company's Receivables Securitization Facility within investing activities in its statements of cash flows. |
Property and Equipment | Property and Equipment Property and equipment, which includes 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, the Company changed its estimate of the useful lives of its computers and related equipment from an average of four four |
Intangible Assets | 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. 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 | 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. |
Income Taxes | 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 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 | 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 | 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. |
Derivative Instruments | 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 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 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 Accounting Pronouncements and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements During fiscal 2022, 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 December 2019 ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” April 1, 2021 This update is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are applied on a prospective basis. The Company determined that this standard had no material impact to its condensed consolidated financial statements following adoption. July 2021 ASU 2021-05, “Leases (Topic 842): Lessors–Certain Leases with Variable Lease Payments” Second quarter of fiscal 2022 The amendments in this update modify lease classification requirements for lessors, providing that lease contracts with variable lease payments that do not depend on a reference index or a rate should be classified as operating leases if they would have been classified as a sales-type or direct financing lease and resulted in the recognition of a selling loss at lease commencement. Upon adoption, on a prospective basis, customer leases with variable payments that would have resulted in an upfront loss when meeting sales type lease classification are classified as operating leases upon commencement or modification. Associated revenues, cost of services, or depreciation are subsequently recognized over their related lease terms or useful life. Before adopting this standard, leases with similar variable payments were classified as sales-type leases. These similar leases resulted in the recognition of upfront losses upon commencement or modification prior to the adoption, even when the overall economics of the lease arrangements were expected to be profitable. New Accounting Pronouncements Recently issued ASUs effective after March 31, 2022 are not expected to have a material effect on DXC's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives By Asset | 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 |
Schedule of Finite-Lived 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 Intangible assets consisted of the following: As of March 31, 2022 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 4,063 $ 3,039 $ 1,024 Customer related intangible assets 4,148 1,995 2,153 Other intangible assets 291 90 201 Total intangible assets $ 8,502 $ 5,124 $ 3,378 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 |
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | During fiscal 2022, 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 December 2019 ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” April 1, 2021 This update is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are applied on a prospective basis. The Company determined that this standard had no material impact to its condensed consolidated financial statements following adoption. July 2021 ASU 2021-05, “Leases (Topic 842): Lessors–Certain Leases with Variable Lease Payments” Second quarter of fiscal 2022 The amendments in this update modify lease classification requirements for lessors, providing that lease contracts with variable lease payments that do not depend on a reference index or a rate should be classified as operating leases if they would have been classified as a sales-type or direct financing lease and resulted in the recognition of a selling loss at lease commencement. Upon adoption, on a prospective basis, customer leases with variable payments that would have resulted in an upfront loss when meeting sales type lease classification are classified as operating leases upon commencement or modification. Associated revenues, cost of services, or depreciation are subsequently recognized over their related lease terms or useful life. Before adopting this standard, leases with similar variable payments were classified as sales-type leases. These similar leases resulted in the recognition of upfront losses upon commencement or modification prior to the adoption, even when the overall economics of the lease arrangements were expected to be profitable. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | 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 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | 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 |
Summary of Pro Forma Information | 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. |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations | The following is a summary of the assets and liabilities distributed as part of the HPS Sale on April 1, 2021: (in millions) As of April 1, 2021 Assets: Cash and cash equivalents $ 34 Accounts receivable, net 63 Prepaid expenses 7 Total current assets 104 Intangible assets, net 101 Operating right-of-use assets, net 3 Goodwill 81 Deferred income taxes, net 74 Property and equipment, net 4 Other assets 15 Total non-current assets 278 Total assets $ 382 Liabilities: Accounts payable $ 4 Accrued payroll and related costs 7 Current operating lease liabilities 1 Accrued expenses and other current liabilities 20 Deferred revenue and advance contract payments 45 Total current liabilities 77 Non-current deferred revenue 10 Long-term operating lease liabilities 2 Other long-term liabilities 3 Total long-term liabilities 15 Total liabilities $ 92 The following is a summary of the assets and liabilities distributed as part of the HHS Sale on October 1, 2020: (in millions) As of October 1, 2020 Assets: Cash and cash equivalents $ 8 Accounts receivable, net 295 Prepaid expenses 39 Other current assets 2 Total current assets 344 Intangible assets, net 1,308 Operating right-of-use assets, net 74 Goodwill 1,354 Property and equipment, net 46 Other assets 54 Total non-current assets 2,836 Total assets $ 3,180 Liabilities: Accounts payable $ 79 Accrued payroll and related costs 13 Current operating lease liabilities 27 Accrued expenses and other current liabilities 36 Deferred revenue and advance contract payments 20 Total current liabilities 175 Non-current deferred revenue 32 Long-term operating lease liabilities 48 Other long term liabilities 2 Total long-term liabilities 82 Total liabilities $ 257 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Assets 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 — 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 — 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 — 10 Long-term operating lease liabilities 3 1 4 Income tax liabilities and deferred tax liabilities 1 — 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 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The following table reflects the calculation of basic and diluted EPS: Fiscal Years Ended (in millions, except per-share amounts) March 31, 2022 March 31, 2021 March 31, 2020 Net income (loss) attributable to DXC common shareholders: $ 718 $ (149) $ (5,369) Common share information: Weighted average common shares outstanding for basic EPS 250.02 254.14 258.57 Dilutive effect of stock options and equity awards 5.19 — — Weighted average common shares outstanding for diluted EPS 255.21 254.14 258.57 Earnings per Share: Basic $ 2.87 $ (0.59) $ (20.76) Diluted $ 2.81 $ (0.59) $ (20.76) |
Schedule of Antidilutive Securities | The following table reflects awards excluded: Fiscal Years Ended March 31, 2022 March 31, 2021 (1) March 31, 2020 (1) Stock Options 510,933 1,596,985 1,075,901 RSUs 6,500 2,768,022 2,029,567 PSUs 37,821 1,463,872 289,972 (1) Due to the Company's net loss during fiscal 2021 and fiscal 2020, stock options, RSUs and PSUs were excluded from the computation of dilutive EPS because they would have had an anti-dilutive effect. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Transfer of Assets Accounted for as Sales, Deferred Purchase Price | Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2022 March 31, 2021 Billed trade receivables $ 1,755 $ 2,009 Unbilled receivables 1,310 1,214 Other receivables 789 933 Total $ 3,854 $ 4,156 The following table is a reconciliation of the beginning and ending balances of the DPP: (in millions) Fiscal 2021 Beginning balance $ 103 Transfers of receivables 417 Collections (420) Change in funding availability 2 Facility amendments (102) Ending balance $ — |
Summary of Allowance for Doubtful Accounts for Trade Accounts Receivable | The following table presents the activity in allowances against trade accounts receivables: As of and for Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Beginning balance $ 91 $ 74 Impact of adoption of the Credit Loss Standard — 4 Provisions for losses on accounts receivable 5 53 Other adjustments to allowance and write-offs (41) (40) Ending balance $ 55 $ 91 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information Related to Leases | The components of operating lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Operating lease cost $ 484 $ 616 $ 698 Short-term lease cost 40 53 49 Variable lease cost 73 56 46 Sublease income (32) (40) (45) Total operating costs $ 565 $ 685 $ 748 Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below. For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows $ 484 $ 616 $ 698 ROU assets obtained in exchange for operating lease liabilities (1) $ 279 $ 530 $ 411 (1) There were $1,085 million, $763 million, and $216 million in modifications and terminations in fiscal 2022, 2021, and 2020, respectively, and net of $87 million change in lease classification from operating to finance lease in fiscal 2020. See Note 18 – “Cash Flows” for further information on non-cash activities affecting cash flows. The components of finance lease expense were as follows: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Finance lease cost: Amortization of right-of-use assets $ 346 $ 433 $ 405 Interest on lease liabilities 27 45 65 Total finance lease cost $ 373 $ 478 $ 470 The following table provides supplemental cash flow information related to the Company’s finance leases: For the Fiscal Year Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Interest paid for finance lease liabilities – Operating cash flows $ 27 $ 45 $ 65 Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows 501 584 576 Total cash paid in the measurement of finance lease obligations $ 528 $ 629 $ 641 Capital expenditures through finance lease obligations (1) $ 233 $ 348 $ 605 (1) See Note 18 – ”Cash Flows” for further information on non-cash activities affecting cash flows. |
Supplemental Balance Sheet Information Related to Leases | The following table presents operating lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU operating lease assets Operating right-of-use assets, net $ 1,133 $ 1,366 Operating lease liabilities Current operating lease liabilities $ 388 $ 418 Operating lease liabilities Non-current operating lease liabilities 815 1,038 Total operating lease liabilities $ 1,203 $ 1,456 The following table presents finance lease balances: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 ROU finance lease assets Property and Equipment, net $ 602 $ 834 Finance lease Short-term debt and current maturities of long-term debt $ 289 $ 398 Finance lease Long-term debt, net of current maturities 354 496 Total finance lease liabilities (1) $ 643 $ 894 (1) See Note 14 – “Debt” for further information on finance lease liabilities. |
Maturities of Lease Liabilities | The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Operating lease payments $ 415 $ 308 $ 225 $ 133 $ 70 $ 155 $ 1,306 Less: imputed interest (103) Total operating lease liabilities $ 1,203 |
Maturities of Lease Liabilities | The following maturity analysis presents expected undiscounted cash payments for finance leases as of March 31, 2022: Fiscal Year (in millions) 2023 2024 2025 2026 2027 Thereafter Total Finance lease payments $ 300 $ 195 $ 108 $ 50 $ 19 $ — $ 672 Less: imputed interest (29) Total finance lease liabilities $ 643 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis excluding pension assets and derivative assets and liabilities. See Note 15 - "Pension and Other Benefit Plans" and Note 9 - "Derivative Instruments" for information about these excluded assets and liabilities. There were no transfers between any of the levels during the periods presented. Fair Value Hierarchy (in millions) As of March 31, 2022 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 5 $ 5 $ — $ — Time deposits (1) 51 51 — — Other securities (2) 51 — 49 2 Total assets $ 107 $ 56 $ 49 $ 2 Liabilities: Contingent consideration $ 8 $ — $ — $ 8 Total liabilities $ 8 $ — $ — $ 8 (in millions) As of March 31, 2021 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 12 $ 12 $ — $ — Time deposits (1) 78 78 — — Other securities (2) 57 — 55 2 Total assets $ 147 $ 90 $ 55 $ 2 Liabilities: Contingent consideration $ 27 $ — $ — $ 27 Total Liabilities $ 27 $ — $ — $ 27 (1) Cost basis approximated fair value due to the short period of time to maturity. (2) Other securities include available-for-sale equity security investments with Level 2 inputs that have a cost basis of $53 million and $57 million, and losses of $4 million and $2 million, as of March 31, 2022 and March 31, 2021, respectively, included in other (income) expense, net in the Company’s statements of operations. During the third quarter of fiscal 2021, previously held investments were sold and the proceeds were used to purchase new investments.The gain of $17 million from the sale was included in other (income) expense, net. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts | The following table presents the pretax amounts impacting income related to designated and non-designated foreign currency forward contracts: Fiscal Years Ended (in millions) Statement of Operations Line Item March 31, 2022 March 31, 2021 March 31, 2020 Foreign currency forward contracts Other (income) expense, net $ 52 $ 51 $ (37) |
Schedule of Derivative Instruments | The following tables present the fair values of derivative instruments included in the balance sheets: Derivative Assets As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Derivatives designated for hedge accounting: Foreign currency forward contracts Other current assets $ 18 $ 9 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 9 $ 3 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Derivatives designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ — $ 5 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 15 $ 3 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of (in millions) March 31, 2022 March 31, 2021 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,089 $ 2,228 Computers and related equipment 4,117 4,596 Furniture and other equipment 203 227 Construction in progress 1 16 6,410 7,067 Less: accumulated depreciation 3,998 4,121 Property and equipment, net $ 2,412 $ 2,946 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Amortizable 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 Intangible assets consisted of the following: As of March 31, 2022 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 4,063 $ 3,039 $ 1,024 Customer related intangible assets 4,148 1,995 2,153 Other intangible assets 291 90 201 Total intangible assets $ 8,502 $ 5,124 $ 3,378 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 |
Schedule of Components of Amortization Expense | The components of amortization expense were as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Intangible asset amortization $ 865 $ 952 $ 1,019 Transition and transformation contract cost amortization (1) 227 264 280 Total amortization expense $ 1,092 $ 1,216 $ 1,299 (1) Transition and transformation contract costs are included within other assets on the balance sheet. |
Estimated Future Amortization of Intangible Assets | Estimated future amortization as of March 31, 2022 is as follows: Fiscal Year (in millions) 2023 $ 780 2024 $ 684 2025 $ 592 2026 $ 522 2027 $ 395 Thereafter $ 405 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Segment | The following tables summarize the changes in the carrying amounts of goodwill, by segment, for the fiscal years ended March 31, 2022 and March 31, 2021, respectively: (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 (in millions) GBS GIS Total Balance as of March 31, 2020, net $ 2,017 $ — $ 2,017 Acquisition related adjustments 15 — 15 Divestitures (1,355) — (1,355) Assets held for sale (90) — (90) Foreign currency translation 54 — 54 Balance as of March 31, 2021, net $ 641 $ — $ 641 Goodwill, gross 5,131 5,066 10,197 Accumulated impairment losses (4,490) (5,066) (9,556) Balance as of March 31, 2021, net $ 641 $ — $ 641 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Sources of Income Before Income Taxes Classified Between Domestic And Foreign Entities | The sources of income (loss) from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Domestic entities $ (566) $ 975 $ (2,928) Entities outside the United States 1,707 (321) (2,300) Total $ 1,141 $ 654 $ (5,228) |
Components of Income Tax Provision | The income tax expense (benefit) on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Current: Federal $ (118) $ 730 $ 3 State (17) 257 16 Foreign 285 216 167 150 1,203 186 Deferred: Federal 9 (221) (125) State (9) (51) 17 Foreign 255 (131) 52 255 (403) (56) Total income tax expense $ 405 $ 800 $ 130 |
Federal Statutory Tax Rate To Effective Tax Rate Reconciliation | The major elements contributing to the difference between the U.S. federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below. Fiscal Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Statutory rate 21.0 % 21.0 % (21.0) % State income tax, net of federal tax (6.9) 10.8 (1.4) Foreign tax rate differential 151.1 (198.4) (11.9) Goodwill impairment — — 28.3 Change in valuation allowances (140.9) 239.3 12.1 Income Tax and Foreign Tax Credits (15.2) (48.7) (2.6) Arbitration Award — — (3.6) Change in uncertain tax positions 6.8 17.2 1.1 Withholding Taxes 6.2 10.3 0.9 U.S. Tax on Foreign Income 2.5 17.6 0.4 Excess tax benefits or expense for stock compensation 0.1 2.2 0.1 Capitalized transaction costs 0.2 0.5 0.1 Base Erosion and Transition Taxes 6.6 (0.7) (0.7) Impact of Business Divestitures 3.0 52.6 — Granite Trust Capital Loss — (5.7) — Other items, net 1.0 4.3 0.7 Effective tax rate 35.5 % 122.3 % 2.5 % |
Components of Deferred Tax Assets and Liabilities | The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2022 March 31, 2021 Deferred tax assets Investment basis differences $ — $ 32 Tax loss/credit carryforwards 2,360 4,039 Accrued interest 15 20 Operating lease liabilities 244 359 Contract accounting 132 92 Other assets 338 351 Total deferred tax assets 3,089 4,893 Valuation allowance (2,133) (3,860) Net deferred tax assets 956 1,033 Deferred tax liabilities Depreciation and amortization (430) (513) Operating right-of-use asset (227) (339) Investment basis differences (8) — Employee benefits (426) (6) Other liabilities (220) (246) Total deferred tax liabilities (1,311) (1,104) Total net deferred tax assets (liabilities) $ (355) $ (71) |
Schedule of Deferred Tax Assets and Liabilities | Income tax related assets are included in the accompanying balance sheets as follows: As of (in millions) March 31, 2022 March 31, 2021 Current: Income tax receivables and prepaid taxes $ 78 $ 67 $ 78 $ 67 Non-current: Income taxes receivable and prepaid taxes $ 130 $ 136 Deferred tax assets 221 289 $ 351 $ 425 Total $ 429 $ 492 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2022 March 31, 2021 Current: Liability for uncertain tax positions $ (34) $ (30) Income taxes payable (163) (368) $ (197) $ (398) Non-current: Deferred taxes (576) (360) Income taxes payable (39) (130) Liability for uncertain tax positions (379) (364) $ (994) $ (854) Total $ (1,191) $ (1,252) |
Summary of Operating Loss Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2022 As of March 31, 2021 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 88 $ 88 $ — N/A $ 132 $ 128 $ 4 2033 State $ 589 $ 243 $ 346 2042 $ 369 $ 6 $ 363 2041 Foreign $ 9,368 $ 5,635 $ 3,733 2039 $ 16,700 $ 6,191 $ 10,509 2041 Tax credit carryforwards Federal $ 5 $ — $ 5 2042 $ 5 $ — $ 5 2040 State $ 5 $ 2 $ 3 2037 $ — $ — $ — N/A Foreign $ — $ — $ — N/A $ — $ — $ — N/A Capital loss carryforwards Federal $ 42 $ — $ 42 2026 $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 199 $ 199 $ — N/A $ 45 $ 45 $ — N/A |
Summary of Tax Credit Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2022 As of March 31, 2021 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 88 $ 88 $ — N/A $ 132 $ 128 $ 4 2033 State $ 589 $ 243 $ 346 2042 $ 369 $ 6 $ 363 2041 Foreign $ 9,368 $ 5,635 $ 3,733 2039 $ 16,700 $ 6,191 $ 10,509 2041 Tax credit carryforwards Federal $ 5 $ — $ 5 2042 $ 5 $ — $ 5 2040 State $ 5 $ 2 $ 3 2037 $ — $ — $ — N/A Foreign $ — $ — $ — N/A $ — $ — $ — N/A Capital loss carryforwards Federal $ 42 $ — $ 42 2026 $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 199 $ 199 $ — N/A $ 45 $ 45 $ — N/A |
Liabilities For Uncertain Tax Positions | In accordance with ASC 740, the Company’s liability for uncertain tax positions was as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Tax $ 422 $ 354 Interest 76 46 Penalties 20 22 Offset to receivable (104) (18) Net of tax attributes (1) (10) Total $ 413 $ 394 |
Summary of Income Tax Contingencies | The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes): Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Balance at beginning of fiscal year $ 354 $ 253 $ 165 Gross increases related to prior year tax positions 61 60 74 Gross decreases related to prior year tax positions (16) (30) (9) Gross increases related to current year tax positions 93 102 15 Settlements and statute of limitation expirations (33) (36) (7) Acquisitions and Dispositions (36) 6 18 Foreign exchange and others (1) (1) (3) Balance at end of fiscal year $ 422 $ 354 $ 253 |
Tax Examination Status | A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are: Jurisdiction: Tax Years that Remain Subject to Examination (Fiscal Year Ending): United States – Federal 2009 and forward United States – Various States 2009 and forward Australia 2012 and forward Canada 2006 and forward France 2016 and forward Germany 2010 and forward India 2001 and forward U. K. 2018 and forward |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of the Company's debt: As of (in millions) Interest Rates Fiscal Year Maturities March 31, 2022 (1) March 31, 2021 (1) Short-term debt and current maturities of long-term debt Commercial paper (2) (0.40)% - (0.27)% 2023 $ 362 $ 213 Current maturities of long-term debt Various 2023 249 556 Current maturities of finance lease liabilities 0.23% - 12.79% 2023 289 398 Short-term debt and current maturities of long-term debt $ 900 $ 1,167 Long-term debt, net of current maturities €650 million Senior notes 1.75% 2026 720 760 $700 million Senior notes 1.80% 2027 694 — €750 Senior notes 0.45% 2028 828 — $650 million Senior notes 2.375% 2029 644 — €600 Senior notes 0.95% 2032 661 — EUR term loan 0.80% 2023 - 2024 — 469 $274 million Senior notes 4.45% 2023 — 154 $171 million Senior notes 4.45% 2023 — 165 $500 million Senior notes 4.25% 2025 — 504 $500 million Senior notes 4.13% 2026 — 496 £250 million Senior notes 2.75% 2025 — 343 $500 million Senior notes 4.75% 2028 — 506 $234 million Senior notes 7.45% 2030 — 268 Finance lease liabilities 0.23% - 12.79% 2023 - 2027 643 894 Borrowings for assets acquired under long-term financing 0.00% - 6.78% 2023 - 2026 344 672 Mandatorily redeemable preferred stock outstanding 6.00% 2023 63 63 Other borrowings Various 2023 - 2024 6 5 Long-term debt 4,603 5,299 Less: current maturities 538 954 Long-term debt, net of current maturities $ 4,065 $ 4,345 . (1) The carrying amounts of the senior term loans and notes as of March 31, 2022 and March 31, 2021, include the remaining principal outstanding of $3,575 million and $3,631 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $(28) million and $34 million, respectively. (2) At DXC's option, DXC can borrow up to a maximum of €1 billion or its equivalent in €, £, and $. |
Schedule of Long Term Debt Expected Maturities | Expected maturities of long-term debt, including borrowings for asset financing but excluding minimum capital lease payments, for fiscal years subsequent to March 31, 2022, are as follows: Fiscal Year (in millions) 2023 $ 249 2024 123 2025 22 2026 723 2027 697 Thereafter 2,146 Total $ 3,960 |
Pension and Other Benefit Pla_2
Pension and Other Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Projected Benefit Obligations As of (in millions) March 31, 2022 March 31, 2021 Projected benefit obligation at beginning of year $ 12,436 $ 10,150 Service cost 88 91 Interest cost 203 245 Plan participants’ contributions 30 31 Amendments (12) (9) Business/contract acquisitions/divestitures (2) 11 Contractual termination benefits 4 13 Settlement/curtailment (76) (37) Actuarial (gain) loss (831) 1,262 Benefits paid (458) (393) Foreign currency exchange rate changes (485) 1,084 Other (35) (12) Projected benefit obligation at end of year $ 10,862 $ 12,436 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2022 March 31, 2021 Discount rate 2.7 % 2.0 % Rates of increase in compensation levels 2.9 % 2.5 % Interest Crediting Rate 4.0 % 4.0 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2022 March 31, 2021 Fair value of plan assets at beginning of year $ 13,425 $ 11,090 Actual return on plan assets 441 1,401 Employer contribution 161 117 Plan participants’ contributions 30 31 Benefits paid (458) (393) Business/contract acquisitions/divestitures — — Contractual termination benefits 4 7 Plan settlement (66) (31) Foreign currency exchange rate changes (566) 1,224 Other (19) (21) Fair value of plan assets at end of year $ 12,952 $ 13,425 Funded status at end of year $ 2,090 $ 989 Selected Information As of (in millions) March 31, 2022 March 31, 2021 Other assets $ 2,718 $ 1,884 Accrued expenses and other current liabilities (23) (81) Non-current pension obligations (590) (796) Other long-term liabilities - OPEB (15) (18) Net amount recorded $ 2,090 $ 989 Accumulated benefit obligation $ 10,790 $ 12,346 Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets (in millions) March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Projected benefit obligation $ 1,795 $ 2,490 $ 1,440 $ 2,453 Accumulated benefit obligation $ 1,717 $ 2,431 $ 1,401 $ 2,402 Fair value of plan assets $ 1,167 $ 1,596 $ 830 $ 1,562 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Service cost $ 88 $ 91 $ 92 Interest cost 203 245 237 Expected return on assets (581) (659) (651) Amortization of prior service credit (8) (8) (9) Contractual termination benefit 4 13 10 Settlement/curtailment (gain) loss (20) (18) 7 Recognition of actuarial (gain) loss (664) 537 (252) Net periodic pension (income) expense $ (978) $ 201 $ (566) The weighted-average rates used to determine net periodic pension cost were: Fiscal Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Discount or settlement rates 2.0 % 2.4 % 2.4 % Expected long-term rates of return on assets 4.4 % 5.6 % 5.8 % Rates of increase in compensation levels 2.5 % 1.7 % 2.0 % Interest Crediting Rate 4.0 % 4.0 % — % Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2023 $ 88 Benefit Payments: 2023 $ 483 2024 419 2025 426 2026 434 2027 444 2028 and thereafter 2,361 Total $ 4,567 |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | The following is a summary of amounts in accumulated other comprehensive income, before tax effects: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 Prior service cost $ (238) $ (239) |
Schedule of Fair Value of Financial Assets for Pension and Postretirement Benefits | The tables below set forth the fair value of plan assets by asset category within the fair value hierarchy: As of March 31, 2022 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ — $ — $ — $ — Global Stocks — — — — Global/International Equity commingled funds 169 2,098 — 2,267 Global equity mutual funds — — — — U.S./North American Equity commingled funds — 5 — 5 Fixed Income: Non-U.S. Government funds — 46 — 46 Fixed income commingled funds 4 45 15 64 Fixed income mutual funds — 3 — 3 Corporate bonds 1 4,668 — 4,669 Alternatives: Other Alternatives (1) 4 3,182 1,602 4,788 Hedge Funds (2) — 12 — 12 Other Assets 278 78 31 387 Insurance contracts — 342 — 342 Cash and cash equivalents 357 12 — 369 Totals $ 813 $ 10,491 $ 1,648 $ 12,952 As of March 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ — $ — $ — $ — Global Stocks — — — — Global/International Equity commingled funds 246 2,260 — 2,506 Global equity mutual funds — — — — U.S./North American Equity commingled funds — 6 — 6 Fixed Income: Non-U.S. Government funds — — — — Fixed income commingled funds 1 42 15 58 Fixed income mutual funds — 4 — 4 Corporate bonds — 5,500 — 5,500 Alternatives: Other Alternatives (1) 1 2,706 1,930 4,637 Hedge Funds (2) — 10 1 11 Other Assets 70 65 85 220 Insurance contracts 4 380 — 384 Cash and cash equivalents 97 2 — 99 Totals $ 419 $ 10,975 $ 2,031 $ 13,425 (1) Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities. (2) Represents investments in diversified fund of hedge funds. Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows: (in millions) Balance as of March 31, 2020 $ 1,358 Actual return on plan assets held at the reporting date 233 Purchases, sales and settlements 279 Transfers in and / or out of Level 3 — Changes due to exchange rates 161 Balance as of March 31, 2021 2,031 Actual return on plan assets held at the reporting date (156) Purchases, sales and settlements (156) Transfers in and / or out of Level 3 — Changes due to exchange rates (71) Balance as of March 31, 2022 $ 1,648 Plan Asset Allocations As of Asset Category March 31, 2022 March 31, 2021 Equity securities 18 % 19 % Debt securities 37 % 42 % Alternatives 39 % 37 % Cash and other 6 % 2 % Total 100 % 100 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Class of Treasury Stock | The details of shares repurchased during fiscal 2022 and 2020 are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount 2022 Open market purchases 18,818,934 $33.67 $ 634 2022 Total 18,818,934 $33.67 $ 634 2020 Open market purchases 12,279,107 $43.67 $ 536 ASR 3,654,544 $54.73 $ 200 2020 Total 15,933,651 $46.21 $ 736 |
Schedule of Dividends | Dividends The Board of Directors (the “Board”) has suspended the Company’s cash dividend payment beginning in the first quarter of fiscal 2021 to preserve cash and enhance financial flexibility in the current environment. As of March 31, 2022 the Company does not intend to reinstate its quarterly cash dividends. During fiscal 2020, the Company declared dividends of $0.84 per common share totaling $219 million. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in accumulated other comprehensive income (loss), net of taxes: (in millions) Foreign Currency Translation Adjustments Cash Flow Hedges Available-for-sale Securities Pension and Other Post-retirement Benefit Plans Accumulated Other Comprehensive Loss Balance at March 31, 2019 $ (517) $ (3) $ 9 $ 267 $ (244) Current-period other comprehensive loss (334) (15) — 0 — (349) Amounts reclassified from accumulated other comprehensive loss, net of taxes — (2) — (8) (10) Balance at March 31, 2020 $ (851) $ (20) $ 9 $ 259 $ (603) Current-period other comprehensive income (loss) 297 14 (9) — 302 Amounts reclassified from accumulated other comprehensive income (loss), net of taxes — 5 — (6) (1) Balance at March 31, 2021 $ (554) $ (1) $ — $ 253 $ (302) Current-period other comprehensive (loss) income (11) 17 — — 6 Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes (1) (86) (6) — 3 (89) Balance at March 31, 2022 $ (651) $ 10 $ — $ 256 $ (385) (1) Includes net cumulative foreign currency translation losses of $86 million upon sale of foreign entities primarily related to the HPS business divestiture. See Note 3 – “Divestitures” for additional information. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shares Authorized Under Stock Option Plan | The Board has reserved for issuance shares of DXC common stock, par value $0.01 per share, under each of the plans as detailed below: As of March 31, 2022 Reserved for issuance Available for future grants DXC Employee Equity Plan 51,200,000 31,331,818 DXC Director Equity Plan 745,000 361,651 DXC Share Purchase Plan 250,000 125,917 Total 52,195,000 31,819,386 As of March 31, 2022 Options Outstanding Options Exercisable Range of Option Exercise Price Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Number Exercisable Weighted Average Exercise Price $8.96 - $24.47 137,920 $ 19.89 1.89 137,920 $ 19.89 $25.14 - $41.92 518,356 $ 27.34 2.89 518,356 $ 27.34 $42.05 - $58.80 455,111 $ 44.59 3.49 455,111 $ 44.59 1,111,387 1,111,387 |
Schedule of Employee Service Share-based Compensation | The Company recognized share-based compensation expense for fiscal 2022, 2021 and 2020 as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Total share-based compensation cost $ 101 $ 56 $ 68 Related income tax benefit $ 14 $ 6 $ 12 Total intrinsic value of options exercised $ 8 $ 1 $ 8 Tax benefits from exercised stock options and awards $ 17 $ 6 $ 14 |
Schedule of Shares Outstanding | Information concerning stock options granted under stock incentive plans was as follows: Number of Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2019 2,318,768 $ 30.40 4.80 $ 79 Granted — $ — Exercised (331,172) $ 31.36 $ 8 Canceled/Forfeited (2,213) $ 55.95 Expired (115,568) $ 34.97 Outstanding as of March 31, 2020 1,869,815 $ 29.92 4.27 $ — Granted — $ — Exercised (89,335) $ 16.01 $ 1 Canceled/Forfeited — $ — Expired (104,900) $ 33.53 Outstanding as of March 31, 2021 1,675,580 $ 30.43 3.61 $ 8 Granted — $ — Exercised (510,294) $ 23.27 $ 8 Canceled/Forfeited — $ — Expired (53,899) $ 35.57 Outstanding as of March 31, 2022 1,111,387 $ 33.47 3.01 $ 5 Vested and expected to vest in the future as of March 31, 2022 1,111,387 $ 33.47 3.01 $ 5 Exercisable as of March 31, 2022 1,111,347 $ 33.47 3.01 $ 5 Number of Weighted Average Grant Date Fair Value Outstanding as of March 31, 2019 2,809,775 $ 67.27 Granted 3,166,405 $ 45.58 Released/Issued (1,039,346) $ 54.39 Canceled/Forfeited (762,358) $ 59.46 Outstanding as of March 31, 2020 4,174,476 $ 55.45 Granted 8,026,810 $ 20.92 Released/Issued (1,249,681) $ 52.82 Canceled/Forfeited (2,625,385) $ 35.16 Outstanding as of March 31, 2021 8,326,220 $ 28.98 Granted 2,972,253 $ 50.87 Released/Issued (2,141,180) $ 34.12 Canceled/Forfeited (1,680,167) $ 34.93 Outstanding as of March 31, 2022 7,477,126 $ 35.89 . Information concerning RSUs granted to non-employee directors was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of March 31, 2019 75,750 $ 46.31 Granted 62,200 $ 35.90 Released/Issued (23,335) $ 60.90 Canceled/Forfeited — $ — Outstanding as of March 31, 2020 114,615 $ 37.69 Granted 118,500 $ 18.82 Released/Issued (48,455) $ 26.90 Canceled/Forfeited — $ — Outstanding as of March 31, 2021 184,660 $ 28.42 Granted 74,300 $ 35.18 Released/Issued (102,238) $ 21.43 Canceled/Forfeited — $ — Outstanding as of March 31, 2022 156,722 $ 36.18 |
Cash Flows (Tables)
Cash Flows (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Payments for Interest on Indebtedness and for Income Taxes | Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Cash paid for: Interest $ 227 $ 334 $ 371 Taxes on income, net of refunds (1) $ 394 $ 798 $ 247 Non-cash activities: Operating: ROU assets obtained in exchange for lease, net (2) $ 279 $ 530 $ 411 Prepaid assets acquired under long-term financing $ 107 $ 46 $ 99 Investing: Capital expenditures in accounts payable and accrued expenses $ 9 $ 341 $ 66 Capital expenditures through finance lease obligations $ 233 $ 348 $ 605 Assets acquired under long-term financing $ 44 $ 35 $ 376 Decrease in deferred purchase price receivable $ — $ (52) $ (205) Contingent consideration $ — $ 3 $ 18 Financing: Dividends declared but not yet paid $ — $ — $ 55 Shares repurchased but not settled in cash $ 6 $ — $ — (1) Income tax refunds were $54 million, $70 million, and $42 million for fiscal 2022, 2021, and 2020, respectively. (2) There were $1,085 million, $763 million, and $216 million in modifications and terminations in fiscal 2022, 2021, and 2020, respectively, and net of $87 million change in lease classification from operating to finance lease in fiscal 2020, |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense, Net | The following table summarizes components of other (income) expense, net: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Non-service cost components of net periodic pension (income) expense $ (1,066) $ 110 $ (658) Foreign currency loss (gain) 13 14 (25) Other gain (28) (22) (37) Totals $ (1,081) $ 102 $ (720) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Reportable Segment | The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2022 Revenues $ 7,598 $ 8,667 $ 16,265 $ — $ 16,265 Segment Profit $ 1,160 $ 475 $ 1,635 $ (260) $ 1,375 Depreciation and amortization (1) $ 180 $ 991 $ 1,171 $ 112 $ 1,283 Fiscal Year Ended March 31, 2021 Revenues $ 8,336 $ 9,393 $ 17,729 $ — $ 17,729 Segment Profit $ 1,120 $ 245 $ 1,365 $ (263) $ 1,102 Depreciation and amortization (1) $ 212 $ 1,122 $ 1,334 $ 106 $ 1,440 Fiscal Year Ended March 31, 2020 Revenues $ 9,111 $ 10,466 $ 19,577 $ — $ 19,577 Segment Profit $ 1,301 $ 1,007 $ 2,308 $ (247) $ 2,061 Depreciation and amortization (1) $ 199 $ 1,051 $ 1,250 $ 109 $ 1,359 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $434 million, $530 million, and $583 million for fiscal 2022, 2021, and 2020, respectively. |
Reconciliation of Consolidated Operating Income to Income Before Taxes | Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Total profit for reportable segments $ 1,635 $ 1,365 $ 2,308 All other loss (260) (263) (247) Subtotal $ 1,375 $ 1,102 $ 2,061 Interest income 65 98 165 Interest expense (204) (361) (383) Restructuring costs (318) (551) (252) Transaction, separation and integration-related costs (26) (358) (318) Amortization of acquired intangibles (434) (530) (583) Gains on dispositions 341 2,004 — Pension and OPEB actuarial and settlement gains (losses) 684 (519) 244 Debt extinguishment cost (311) (41) — Impairment losses (31) (190) (6,794) Gain on arbitration award — — 632 Income (loss) before income taxes $ 1,141 $ 654 $ (5,228) |
Revenue and Property and Equipment, and Total Assets by Geographic Segment | Property and equipment, net, which is based on the physical location of the assets, was as follows: As of (in millions) March 31, 2022 March 31, 2021 United States $ 975 $ 1,189 U.K. 415 465 Australia 120 149 Other Europe 460 603 Other International 442 540 Total Property and Equipment, net $ 2,412 $ 2,946 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Geography | The following table presents DXC's revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services: Twelve Months Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 United States $ 4,775 $ 5,983 $ 7,225 U.K. 2,295 2,413 2,776 Other Europe 5,117 5,129 5,121 Australia 1,549 1,529 1,487 Other International 2,529 2,675 2,968 Total Revenues $ 16,265 $ 17,729 $ 19,577 |
Summary of Contract Assets and Liabilities | The following table provides information about the balances of the Company's trade receivables and contract assets and contract liabilities: As of (in millions) Balance Sheet Line Item March 31, 2022 March 31, 2021 Trade receivables, net Receivables and contract assets, net of allowance for doubtful accounts $ 2,694 $ 2,871 Contract assets Receivables and contract assets, net of allowance for doubtful accounts $ 371 $ 351 Contract liabilities Deferred revenue and advance contract payments and Non-current deferred revenue $ 1,915 $ 1,701 Change in contract liabilities were as follows: (in millions) Twelve Months Ended March 31, 2022 Twelve Months Ended March 31, 2021 Balance, beginning of period $ 1,701 $ 1,756 Deferred revenue 3,099 2,933 Recognition of deferred revenue (2,770) (2,922) Currency translation adjustment (43) 128 Other (1) (72) (194) Balance, end of period $ 1,915 $ 1,701 (1) For fiscal 2021, Other included contract liabilities of $52 million related to the divested HHS business and $62 million related to the HPS business and other insignificant businesses reclassified to assets held for sale. See note Note 3 - "Divestitures and Note 4 - "Assets Held for Sale" for more information. |
Summary of Capitalized Contract Costs | The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract: As of (in millions) March 31, 2022 March 31, 2021 Capitalized sales commission costs (1) $ 191 $ 256 Transition and transformation contract costs, net (2) $ 818 $ 888 Amortization expense of capitalized sales commission and transition and transformation contract costs were as follows: Fiscal Years Ended (in millions) March 31, 2022 March 31, 2021 March 31, 2020 Capitalized sales commission costs amortization (1) $ 85 $ 70 $ 72 Transition and transformation contract cost amortization (2) $ 227 $ 264 $ 280 (1) Capitalized sales commission costs are included within other assets in the accompanying balance sheets and amortization expense related to the capitalized sales commission assets are included in selling, general, and administrative expenses in the accompanying statements of operations. (2) Transition and transformation contract costs, net reflect the Company’s setup costs incurred upon initiation of an outsourcing contract and are included within other assets in the accompanying balance sheets and amortization expense are included within depreciation and amortization in the accompanying statements of operations. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring Costs [Abstract] | |
Schedule of Restructuring Expense | The composition of restructuring liabilities by financial statement line items is as follows: As of (in millions) March 31, 2022 March 31, 2021 Accrued expenses and other current liabilities $ 113 $ 225 Other long-term liabilities 39 45 Total $ 152 $ 270 |
Schedule of Restructuring Activities | Restructuring activities, summarized by plan year, were as follows: Restructuring Liability as of March 31, 2021 Costs Expensed, Costs Not Affecting Restructuring Liability (1) Cash Paid Other (2) Restructuring Liability as of March 31, 2022 Fiscal 2022 Plan Workforce Reductions $ — $ 228 $ (5) $ (133) $ (6) $ 84 Facilities Costs — 92 (62) (30) 1 1 — $ 320 (67) (163) (5) 85 Fiscal 2021 Plan Workforce Reductions $ 180 $ (2) $ — $ (142) $ (3) $ 33 Facilities Costs 3 5 (5) (2) — 1 183 3 (5) (144) (3) 34 Fiscal 2020 Plan Workforce Reductions (3) $ 27 $ (2) $ — $ (18) $ (1) $ 6 Facilities Costs — — — — — — 27 (2) — (18) (1) 6 Other Prior Year Plans Workforce Reductions $ 19 $ 2 $ — $ (17) $ — $ 4 Facilities Costs 6 (1) 1 (4) — 2 25 1 1 (21) — 6 Acquired Liabilities Workforce Reductions $ 34 $ (4) $ — $ (7) $ (2) $ 21 Facilities Costs 1 — — (1) — — $ 35 (4) — (8) (2) 21 Total $ 270 $ 318 $ (71) $ (354) $ (11) $ 152 (1) Pension benefit augmentations recorded as a pension liability and asset impairments and restructuring costs associated with right-of-use assets. (2) Foreign currency translation adjustments. Restructuring Liability as of March 31, 2020 Costs Expensed, Net of Reversals Costs Not Affecting Restructuring Liability (1) Cash Paid Other (2) Restructuring Liability as of March 31, 2021 Fiscal 2021 Plan Workforce Reductions $ — $ 501 $ (11) $ (313) $ 3 $ 180 Facilities Costs — 37 (17) (14) (3) 3 — 538 (28) (327) — 183 Fiscal 2020 Plan Workforce Reductions (3) $ 74 $ 8 $ 1 $ (60) $ 4 $ 27 Facilities Costs 2 (4) 4 (2) — — 76 4 5 (62) 4 27 Fiscal 2019 Plan Workforce Reductions $ 25 $ (1) $ (2) $ (17) $ 2 $ 7 Facilities Costs 5 (2) 1 (1) 3 6 30 (3) (1) (18) 5 13 Other Prior Year Plans Workforce Reductions $ 24 $ 12 $ (7) $ (19) $ 2 $ 12 Facilities Costs — — — — — — 24 12 (7) (19) 2 12 Acquired Liabilities Workforce Reductions $ 39 $ 1 $ — $ (7) $ 1 $ 34 Facilities Costs 11 (1) 1 (9) (1) 1 50 — 1 (16) — 35 Total $ 180 $ 551 $ (30) $ (442) $ 11 $ 270 (1) Pension benefit augmentations recorded as a pension liability and asset impairment. (2) Foreign currency translation adjustments. (3) Fiscal 2020 workforce reductions includes a $14 million adjustment to restructuring expense related to the prior year. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-term Purchase Agreements | Minimum purchase commitments as of March 31, 2022 were as follows: Fiscal year Minimum Purchase Commitment (in millions) 2023 $ 828 2024 393 2025 249 2026 239 2027 14 Total $ 1,723 |
Expiration of Financial Guarantees And Stand-by Letters Of Credit Outstanding | The following table summarizes the expiration of the Company’s financial guarantees and stand-by letters of credit outstanding as of March 31, 2022: (in millions) Fiscal 2023 Fiscal 2024 Fiscal 2025 and Thereafter Totals Surety bonds $ 86 $ 7 $ 6 $ 99 Letters of credit 77 47 575 699 Stand-by letters of credit 70 31 9 110 Totals $ 233 $ 85 $ 590 $ 908 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) € in Millions, $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021EUR (€) | Apr. 01, 2021EUR (€) | Apr. 01, 2021USD ($) | Oct. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortization period | 5 years | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | FDB Business | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Transaction consideration | $ 335 | € 300 | |||
Cash, primarily customer deposit liabilities | $ 572 | ||||
Discontinued Operations, Disposed of by Sale | HPS Business | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Transaction consideration | € 468 | $ 551 | |||
Cash, primarily customer deposit liabilities | $ 34 | ||||
Discontinued Operations, Disposed of by Sale | HHS Business | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Transaction consideration | $ 5,000 | ||||
Cash, primarily customer deposit liabilities | $ 8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2022 | Mar. 31, 2020 |
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Decrease in depreciation | $ 225 | ||
Buildings | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 40 years | ||
Computers and related equipment | Minimum | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 4 years | 4 years | 4 years |
Computers and related equipment | Maximum | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 5 years | 7 years | 7 years |
Furniture and other equipment | Minimum | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 3 years | ||
Furniture and other equipment | Maximum | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 15 years | ||
Leasehold improvements | Maximum | |||
Property, Plant, and Equipment - Useful Life [Abstract] | |||
Property, plant and equipment useful life | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets (Details) - Software | 12 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Jun. 14, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill acquired | $ 617 | $ 641 | $ 2,017 | ||
AXA Bank Germany | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 101 | ||||
Cash received in acquisition | 294 | ||||
Customer deposit liabilities acquired | 197 | ||||
Goodwill acquired | $ 2 | ||||
Luxoft | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 2,000 | ||||
Cash received in acquisition | 113 | ||||
Goodwill acquired | $ 1,262 | ||||
Percentage of business acquired | 100.00% |
Acquisitions - Luxoft, Purchase
Acquisitions - Luxoft, Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 14, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 617 | $ 641 | $ 2,017 | |
Luxoft | ||||
Business Acquisition [Line Items] | ||||
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 |
Acquisitions - Luxoft, Identifi
Acquisitions - Luxoft, Identified Intangibles (Details) - Luxoft | Jun. 14, 2019 |
Customer related intangibles | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (Years) | 10 years |
Trade names | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (Years) | 20 years |
Developed technology | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (Years) | 3 years |
Third-party purchased software | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (Years) | 3 years |
Acquisitions - Luxoft, Results
Acquisitions - Luxoft, Results of Operations (Details) - Luxoft $ in Millions | 10 Months Ended |
Mar. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 695 |
Net income (loss) | $ (25) |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) € in Millions, $ in Millions | Apr. 01, 2021USD ($) | Oct. 01, 2020USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Apr. 01, 2021EUR (€) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Repayments of debt | $ 2,872 | $ 3,552 | $ 1,039 | ||||
Gain (loss) on sale | $ 371 | 2,004 | $ 0 | ||||
Senior notes, due 2023 | Senior notes | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Effective interest rate | 0.0445% | 4.45% | 0.0445% | ||||
Repayments of debt | $ 165 | ||||||
Senior Notes, Due 2023 | Senior notes | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Effective interest rate | 0.0445% | 4.45% | 0.0445% | ||||
Repayments of debt | $ 154 | $ 319 | |||||
Series Of Insignificant Disposal Groups | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (loss) on sale | $ (10) | ||||||
Discontinued Operations, Disposed of by Sale | HPS Business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Transaction consideration | 551 | € 468 | |||||
Amount of consideration related to future services to be provided | 12 | € 10 | |||||
Gain (loss) on sale | $ 331 | ||||||
Discontinued Operations, Disposed of by Sale | Series Of Insignificant Disposal Groups | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (loss) on sale | $ 53 | ||||||
Sales price adjustment related to prior year dispositions | $ 13 | ||||||
Discontinued Operations, Disposed of by Sale | HHS Business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Transaction consideration | $ 5,000 | ||||||
Repayments of debt | 3,500 | ||||||
Gain (loss) on sale | 2,014 | ||||||
Portion of consideration related to future services to be provided | 85 | ||||||
Discontinued Operations, Disposed of by Sale | HHS Business | Milano Purchasers | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Repurchase receivables transferred | 272 | ||||||
Prepaid maintenance transferred | 12 | ||||||
Software licenses transferred | $ 48 |
Divestitures - Assets and Liabi
Divestitures - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Apr. 01, 2021 | Mar. 31, 2021 | Oct. 01, 2020 |
Assets: | ||||
Total current assets | $ 35 | $ 160 | ||
Total non-current assets | 82 | 353 | ||
Liabilities: | ||||
Total current liabilities related to assets held for sale | 23 | 118 | ||
Total long-term liabilities | $ 39 | $ 20 | ||
HPS Business | Discontinued Operations, Disposed of by Sale | ||||
Assets: | ||||
Cash and cash equivalents | $ 34 | |||
Accounts receivable, net | 63 | |||
Prepaid expenses | 7 | |||
Total current assets | 104 | |||
Intangible assets, net | 101 | |||
Operating right-of-use assets, net | 3 | |||
Goodwill | 81 | |||
Deferred income taxes, net | 74 | |||
Property and equipment, net | 4 | |||
Other assets | 15 | |||
Total non-current assets | 278 | |||
Total assets | 382 | |||
Liabilities: | ||||
Accounts payable | 4 | |||
Accrued payroll and related costs | 7 | |||
Current operating lease liabilities | 1 | |||
Accrued expenses and other current liabilities | 20 | |||
Deferred revenue and advance contract payments | 45 | |||
Total current liabilities related to assets held for sale | 77 | |||
Non-current deferred revenue | 10 | |||
Long-term operating lease liabilities | 2 | |||
Other long-term liabilities | 3 | |||
Total long-term liabilities | 15 | |||
Total liabilities | $ 92 | |||
HHS Business | Discontinued Operations, Disposed of by Sale | ||||
Assets: | ||||
Cash and cash equivalents | $ 8 | |||
Accounts receivable, net | 295 | |||
Prepaid expenses | 39 | |||
Other current assets | 2 | |||
Total current assets | 344 | |||
Intangible assets, net | 1,308 | |||
Operating right-of-use assets, net | 74 | |||
Goodwill | 1,354 | |||
Property and equipment, net | 46 | |||
Other assets | 54 | |||
Total non-current assets | 2,836 | |||
Total assets | 3,180 | |||
Liabilities: | ||||
Accounts payable | 79 | |||
Accrued payroll and related costs | 13 | |||
Current operating lease liabilities | 27 | |||
Accrued expenses and other current liabilities | 36 | |||
Deferred revenue and advance contract payments | 20 | |||
Total current liabilities related to assets held for sale | 175 | |||
Non-current deferred revenue | 32 | |||
Long-term operating lease liabilities | 48 | |||
Other long-term liabilities | 2 | |||
Total long-term liabilities | 82 | |||
Total liabilities | $ 257 |
Assets Held for Sale - Schedule
Assets Held for Sale - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Assets: | ||
Total current assets | $ 35 | $ 160 |
Total non-current assets | 82 | 353 |
Liabilities: | ||
Total current liabilities related to assets held for sale | 23 | 118 |
Total long-term liabilities | $ 39 | 20 |
Discontinued Operations - Held for sale | ||
Assets: | ||
Cash and cash equivalents | 63 | |
Accounts receivable, net | 81 | |
Prepaid expenses | 11 | |
Other current assets | 5 | |
Total current assets | 160 | |
Intangible assets, net | 117 | |
Operating right-of-use assets, net | 23 | |
Goodwill | 89 | |
Deferred income taxes, net | 43 | |
Property and equipment, net | 56 | |
Other assets | 25 | |
Total non-current assets | 353 | |
Total assets | 513 | |
Liabilities: | ||
Accounts payable | 12 | |
Accrued payroll and related costs | 9 | |
Current operating lease liabilities | 19 | |
Accrued expenses and other current liabilities | 26 | |
Deferred revenue and advance contract payments | 52 | |
Total current liabilities related to assets held for sale | 118 | |
Non-current deferred revenue | 10 | |
Long-term operating lease liabilities | 4 | |
Income tax liabilities and deferred tax liabilities | 1 | |
Other long term liabilities | 5 | |
Total long-term liabilities | 20 | |
Total liabilities | 138 | |
HPS Business | Discontinued Operations - Held for sale | ||
Assets: | ||
Cash and cash equivalents | 28 | |
Accounts receivable, net | 64 | |
Prepaid expenses | 6 | |
Other current assets | 0 | |
Total current assets | 98 | |
Intangible assets, net | 101 | |
Operating right-of-use assets, net | 5 | |
Goodwill | 80 | |
Deferred income taxes, net | 43 | |
Property and equipment, net | 4 | |
Other assets | 16 | |
Total non-current assets | 249 | |
Total assets | 347 | |
Liabilities: | ||
Accounts payable | 4 | |
Accrued payroll and related costs | 7 | |
Current operating lease liabilities | 2 | |
Accrued expenses and other current liabilities | 13 | |
Deferred revenue and advance contract payments | 46 | |
Total current liabilities related to assets held for sale | 72 | |
Non-current deferred revenue | 10 | |
Long-term operating lease liabilities | 3 | |
Income tax liabilities and deferred tax liabilities | 1 | |
Other long term liabilities | 3 | |
Total long-term liabilities | 17 | |
Total liabilities | 89 | |
Other | Discontinued Operations - Held for sale | ||
Assets: | ||
Cash and cash equivalents | 35 | |
Accounts receivable, net | 17 | |
Prepaid expenses | 5 | |
Other current assets | 5 | |
Total current assets | 62 | |
Intangible assets, net | 16 | |
Operating right-of-use assets, net | 18 | |
Goodwill | 9 | |
Deferred income taxes, net | 0 | |
Property and equipment, net | 52 | |
Other assets | 9 | |
Total non-current assets | 104 | |
Total assets | 166 | |
Liabilities: | ||
Accounts payable | 8 | |
Accrued payroll and related costs | 2 | |
Current operating lease liabilities | 17 | |
Accrued expenses and other current liabilities | 13 | |
Deferred revenue and advance contract payments | 6 | |
Total current liabilities related to assets held for sale | 46 | |
Non-current deferred revenue | 0 | |
Long-term operating lease liabilities | 1 | |
Income tax liabilities and deferred tax liabilities | 0 | |
Other long term liabilities | 2 | |
Total long-term liabilities | 3 | |
Total liabilities | $ 49 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net income attributable to CSC common shareholders: [Abstract] | |||
Net income (loss) attributable to DXC common shareholders: | $ 718 | $ (149) | $ (5,369) |
Common share information: | |||
Weighted average common shares outstanding for basic EPS (in shares) | 250,020 | 254,140 | 258,570 |
Dilutive effect of stock options and equity awards (in shares) | 5,190 | 0 | 0 |
Weighted average common shares outstanding for diluted EPS (in shares) | 255,210 | 254,140 | 258,570 |
Earnings per Share: | |||
Basic (in dollars per share) | $ 2.87 | $ (0.59) | $ (20.76) |
Diluted (in dollars per share) | $ 2.81 | $ (0.59) | $ (20.76) |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Antidilutive Shares (Details) - shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 510,933 | 1,596,985 | 1,075,901 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,500 | 2,768,022 | 2,029,567 |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 37,821 | 1,463,872 | 289,972 |
Receivables - Receivables, Net
Receivables - Receivables, Net of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 3,854 | $ 4,156 |
Billed trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,755 | 2,009 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,310 | 1,214 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 789 | $ 933 |
Receivables - Allowance for Dou
Receivables - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 91 | $ 74 |
Provisions for losses on accounts receivable | 5 | 53 |
Other adjustments to allowance and write-offs | (41) | (40) |
Ending balance | 55 | 91 |
Impact of adoption of the Credit Loss Standard | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 | 4 |
Ending balance | $ 0 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) | 12 Months Ended | |||
Mar. 31, 2022USD ($)extension | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 30, 2020USD ($) | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Extension term | 1 year | |||
Purchasers | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Receivables facility, amount | $ 400,000,000 | |||
Availability under receivable facility | 400,000,000 | |||
Drawn amount | $ 400,000,000 | |||
Number of extensions | extension | 1 | |||
Gain (loss) on sale of receivables | $ 0 | |||
DE Purchasers | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Deferred purchase price for receivables | $ 0 | $ 103,000,000 | $ 102,000,000 |
Receivables - Schedule of DPP (
Receivables - Schedule of DPP (Details) - DE Purchasers $ in Millions | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Transfer of Financial Assets Accounted for as Sales, Deferred Purchase Price [Roll Forward] | |
Beginning balance | $ 103 |
Transfers of receivables | 417 |
Collections | (420) |
Change in funding availability | 2 |
Facility amendments | (102) |
Ending balance | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |
Renewal term, operating leases | 10 years |
Renewal term, finance leases | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term, operating leases | 1 year |
Remaining lease term, finance leases | 1 year |
Termination term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term, operating leases | 11 years |
Remaining lease term, finance leases | 11 years |
Termination term | 3 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating lease expense | |||
Operating lease cost | $ 484 | $ 616 | $ 698 |
Short-term lease cost | 40 | 53 | 49 |
Variable lease cost | 73 | 56 | 46 |
Sublease income | (32) | (40) | (45) |
Total operating costs | 565 | 685 | 748 |
Finance lease expense | |||
Amortization of right-of-use assets | 346 | 433 | 405 |
Interest on lease liabilities | 27 | 45 | 65 |
Total finance lease cost | $ 373 | $ 478 | $ 470 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Leases, Supplemental Cash Flow Information [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows | $ 484 | $ 616 | $ 698 |
ROU assets obtained in exchange for operating lease liabilities | 279 | 530 | 411 |
Lease modifications and terminations | 1,085 | 763 | 216 |
Change in lease classification from operating to finance lease | 87 | ||
Finance Leases, Supplemental Cash Flow Information [Abstract] | |||
Interest paid for finance lease liabilities – Operating cash flows | 27 | 45 | 65 |
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows | 501 | 584 | 576 |
Total cash paid in the measurement of finance lease obligations | 528 | 629 | 641 |
Capital expenditures through finance lease obligations | $ 233 | $ 348 | $ 605 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Operating Lease, Supplemental Balance Sheet Information [Abstract] | ||
Operating right-of-use assets, net | $ 1,133 | $ 1,366 |
Current operating lease liabilities | 388 | 418 |
Non-current operating lease liabilities | 815 | 1,038 |
Total operating lease liabilities | $ 1,203 | $ 1,456 |
Weighted-average operating lease term | 4 years 4 months 24 days | 4 years 10 months 24 days |
Weighted-average operating lease discount rate | 3.30% | 3.80% |
Finance Lease, Supplemental Balance Sheet Information [Abstract] | ||
Property and Equipment, net | Property and equipment, net of accumulated depreciation of $3,998 and $4,121 | Property and equipment, net of accumulated depreciation of $3,998 and $4,121 |
Short-term debt and current maturities of long-term debt | Short-term debt and current maturities of long-term debt | Short-term debt and current maturities of long-term debt |
Long-term debt, net of current maturities | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities |
ROU finance lease assets | $ 602 | $ 834 |
Finance lease, liability, current | 289 | 398 |
Finance lease, liability, noncurrent | 354 | 496 |
Total finance lease liabilities | $ 643 | $ 894 |
Weighted-average finance lease term | 2 years 9 months 18 days | 2 years 7 months 6 days |
Weighted-average finance lease discount rate | 2.90% | 3.60% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Operating Leases | ||
2023 | $ 415 | |
2024 | 308 | |
2025 | 225 | |
2026 | 133 | |
2027 | 70 | |
Thereafter | 155 | |
Operating lease payments | 1,306 | |
Less: imputed interest | (103) | |
Total operating lease liabilities | 1,203 | $ 1,456 |
Finance Leases | ||
2023 | 300 | |
2024 | 195 | |
2025 | 108 | |
2026 | 50 | |
2027 | 19 | |
Thereafter | 0 | |
Finance lease payments | 672 | |
Less: imputed interest | (29) | |
Total finance lease liabilities | $ 643 | $ 894 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Other Debt Securities | ||
Liabilities: | ||
Available-for-sale, cost basis | $ 53 | $ 57 |
Available-for-sale, unrealized loss | 4 | 2 |
Recurring | ||
Assets: | ||
Money market funds and money market deposit accounts | 5 | 12 |
Time deposits | 51 | 78 |
Other debt securities | 51 | 57 |
Total assets | 107 | 147 |
Liabilities: | ||
Contingent consideration | 8 | 27 |
Total liabilities | 8 | 27 |
Recurring | Level 1 | ||
Assets: | ||
Money market funds and money market deposit accounts | 5 | 12 |
Time deposits | 51 | 78 |
Other debt securities | 0 | 0 |
Total assets | 56 | 90 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Money market funds and money market deposit accounts | 0 | 0 |
Time deposits | 0 | 0 |
Other debt securities | 49 | 55 |
Total assets | 49 | 55 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 2 | Other Income, Net | ||
Liabilities: | ||
Available-for-sale, unrealized gain | 17 | |
Recurring | Level 3 | ||
Assets: | ||
Money market funds and money market deposit accounts | 0 | 0 |
Time deposits | 0 | 0 |
Other debt securities | 2 | 2 |
Total assets | 2 | 2 |
Liabilities: | ||
Contingent consideration | 8 | 27 |
Total liabilities | $ 8 | $ 27 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | $ 4,065 | $ 4,345 |
Impairment of tangible assets | 0 | 0 |
Impairment of intangible assets | 0 | 0 |
Impairment of long-lived assets | 0 | 0 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | 3,700 | 4,700 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | $ 4,000 | $ 4,400 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |
Mar. 31, 2022USD ($)counterparty | Mar. 31, 2021USD ($) | |
Derivative [Line Items] | ||
Number of counterparties | counterparty | 12 | |
Maximum exposure to loss | $ 16 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign currency cash flow hedge gain to be reclassified into earnings during next 12 months | 14 | |
Pretax gain on derivatives designated for hedge accounting included other comprehensive income (loss) | 23 | $ 19 |
Pretax gain (loss) on derivative instruments | 6 | (5) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount of derivative | 2,100 | 2,100 |
Cash Flow Hedges | Designated as Hedging Instrument | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount of derivative | 727 | 546 |
Net Investment Hedging | Designated as Hedging Instrument | Foreign currency-denominated debt | ||
Derivative [Line Items] | ||
Notional amount of derivative | 300 | $ 800 |
Pretax gain on derivatives designated for hedge accounting included other comprehensive income (loss) | $ 17 |
Derivative Instruments - Nondes
Derivative Instruments - Nondesignated Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign currency forward contracts | Other (income) expense, net | |||
Derivative [Line Items] | |||
Pretax gain (loss) on derivative instruments | $ 52 | $ 51 | $ (37) |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value (Details) - Foreign currency forward contracts - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 18 | $ 9 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 5 |
Not Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 9 | 3 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 15 | $ 3 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment — gross | $ 6,410 | $ 7,067 | |
Less: accumulated depreciation | 3,998 | 4,121 | |
Property and equipment, net | 2,412 | 2,946 | |
Depreciation | 625 | 754 | $ 643 |
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment — gross | 2,089 | 2,228 | |
Computers and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment — gross | 4,117 | 4,596 | |
Furniture and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment — gross | 203 | 227 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment — gross | $ 1 | $ 16 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 8,502 | $ 8,465 |
Accumulated Amortization | 5,124 | 4,422 |
Net Carrying Value | 3,378 | 4,043 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,063 | 4,014 |
Accumulated Amortization | 3,039 | 2,733 |
Net Carrying Value | 1,024 | 1,281 |
Customer related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,148 | 4,212 |
Accumulated Amortization | 1,995 | 1,641 |
Net Carrying Value | 2,153 | 2,571 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 291 | 239 |
Accumulated Amortization | 90 | 48 |
Net Carrying Value | $ 201 | $ 191 |
Intangible Assets - Components
Intangible Assets - Components of Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 1,092 | $ 1,216 | $ 1,299 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2023 | 780 | ||
2024 | 684 | ||
2025 | 592 | ||
2026 | 522 | ||
2027 | 395 | ||
Thereafter | 405 | ||
Intangible asset | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | 865 | 952 | 1,019 |
Transition and transformation contract costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 227 | $ 264 | $ 280 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, beginning balance | $ 641 | $ 2,017 |
Acquisition related adjustments | 15 | |
Divestitures | (2) | (1,355) |
Assets held for sale | (6) | (90) |
Foreign currency translation | (16) | 54 |
Goodwill, gross | 10,173 | 10,197 |
Accumulated impairment losses | (9,556) | (9,556) |
Goodwill, ending balance | 617 | 641 |
GBS | ||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, beginning balance | 641 | 2,017 |
Acquisition related adjustments | 15 | |
Divestitures | (2) | (1,355) |
Assets held for sale | (6) | (90) |
Foreign currency translation | (16) | 54 |
Goodwill, gross | 5,107 | 5,131 |
Accumulated impairment losses | (4,490) | (4,490) |
Goodwill, ending balance | 617 | 641 |
GIS | ||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Acquisition related adjustments | 0 | |
Divestitures | 0 | 0 |
Assets held for sale | 0 | 0 |
Foreign currency translation | 0 | 0 |
Goodwill, gross | 5,066 | 5,066 |
Accumulated impairment losses | (5,066) | (5,066) |
Goodwill, ending balance | $ 0 | $ 0 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill impairment losses | $ 0 | $ 0 | $ 6,794 |
GBS | |||
Goodwill [Line Items] | |||
Goodwill impairment losses | 3,789 | ||
GIS | |||
Goodwill [Line Items] | |||
Goodwill impairment losses | $ 3,005 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) from Continuing Operations, before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic entities | $ (566) | $ 975 | $ (2,928) |
Entities outside the United States | 1,707 | (321) | (2,300) |
Income (loss) before income taxes | $ 1,141 | $ 654 | $ (5,228) |
Income Taxes - Tax Expense (Ben
Income Taxes - Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | |||
Federal | $ (118) | $ 730 | $ 3 |
State | (17) | 257 | 16 |
Foreign | 285 | 216 | 167 |
Total Current | 150 | 1,203 | 186 |
Deferred: | |||
Federal | 9 | (221) | (125) |
State | (9) | (51) | 17 |
Foreign | 255 | (131) | 52 |
Total Deferred | 255 | (403) | (56) |
Total income tax expense | $ 405 | $ 800 | $ 130 |
Income Taxes - Tax Expense (B_2
Income Taxes - Tax Expense (Benefit), Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 01, 2017 | |
Income Tax Contingency [Line Items] | ||||
Transition tax benefit | $ 7 | $ 4 | $ 31 | |
Interest and penalties for uncertain tax positions included in current expenses (benefits) | (3) | $ 2 | $ 2 | |
Hewlett Packard Enterprise Services | ||||
Income Tax Contingency [Line Items] | ||||
Tax indemnification receivable related to net uncertain tax positions | $ 27 | |||
Tax indemnification receivable related to other tax payables | 72 | |||
Tax indemnification payable related to other tax receivables | $ 129 | |||
Discontinued Operations | USPS Separation | ||||
Income Tax Contingency [Line Items] | ||||
Tax indemnification receivable related to disposal | 72 | |||
Tax indemnification payable related to disposal | $ 15 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
State income tax, net of federal tax | (6.90%) | 10.80% | 1.40% |
Foreign tax rate differential | 151.10% | (198.40%) | 11.90% |
Goodwill impairment | 0.00% | 0.00% | (28.30%) |
Change in valuation allowances | (140.90%) | 239.30% | (12.10%) |
Income Tax and Foreign Tax Credits | (15.20%) | (48.70%) | 2.60% |
Arbitration Award | 0.00% | 0.00% | 3.60% |
Change in uncertain tax positions | 6.80% | 17.20% | (1.10%) |
Withholding Taxes | 6.20% | 10.30% | (0.90%) |
U.S. Tax on Foreign Income | 2.50% | 17.60% | (0.40%) |
Excess tax benefits or expense for stock compensation | 0.10% | 2.20% | (0.10%) |
Capitalized transaction costs | 0.20% | 0.50% | (0.10%) |
Base Erosion and Transition Taxes | 6.60% | (0.70%) | 0.70% |
Impact of Business Divestitures | 3.00% | 52.60% | 0.00% |
Granite Trust Capital Loss | 0.00% | (5.70%) | 0.00% |
Other items, net | 1.00% | 4.30% | (0.70%) |
Effective tax rate | 35.50% | 122.30% | (2.50%) |
Income Taxes - Effective Tax _2
Income Taxes - Effective Tax Rate Reconciliation, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, change in tax credits, amount | $ 174 | $ 319 | $ 135 |
Effective income tax rate reconciliation, decrease from tax credits, percent | 15.20% | 48.70% | (2.60%) |
Effective income tax rate reconciliation, uncertain tax positions, amount | $ 78 | $ 112 | |
Effective income tax rate reconciliation, uncertain tax positions, percent | 6.80% | 17.20% | (1.10%) |
Effective income tax rate reconciliation, divestiture of business, amount | $ 344 | ||
Effective income tax rate reconciliation, divestiture of business, percent | 3.00% | 52.60% | 0.00% |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 1,565 | $ 631 | |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, percent | (140.90%) | 239.30% | (12.10%) |
Effective income tax rate reconciliation, goodwill impairment charge, amount | $ 1,482 | ||
Effective income tax rate reconciliation, goodwill impairment charge, percent | 0.00% | 0.00% | (28.30%) |
Effective income tax rate reconciliation, non-taxable gain on arbitration award, amount | $ 186 | ||
Effective income tax rate reconciliation, non-taxable gain on arbitration award, percent | 0.00% | 0.00% | (3.60%) |
Luxembourg | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, loss on investments, amount | $ 1,609 | $ 1,226 | $ 637 |
Effective income tax rate reconciliation, loss on investments, percent | 141.00% | 187.50% | 12.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets | ||
Investment basis differences | $ 0 | $ 32 |
Tax loss/credit carryforwards | 2,360 | 4,039 |
Accrued interest | 15 | 20 |
Operating lease liabilities | 244 | 359 |
Contract accounting | 132 | 92 |
Other assets | 338 | 351 |
Total deferred tax assets | 3,089 | 4,893 |
Valuation allowance | (2,133) | (3,860) |
Net deferred tax assets | 956 | 1,033 |
Deferred tax liabilities | ||
Depreciation and amortization | (430) | (513) |
Operating right-of-use asset | (227) | (339) |
Investment basis differences | (8) | 0 |
Employee benefits | (426) | (6) |
Other liabilities | (220) | (246) |
Total deferred tax liabilities | (1,311) | (1,104) |
Total net deferred tax assets (liabilities) | $ (355) | $ (71) |
Income Taxes - Income Tax Relat
Income Taxes - Income Tax Related Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Current assets: | ||
Income tax receivables and prepaid taxes | $ 78 | $ 67 |
Non-current: | ||
Income taxes receivable and prepaid taxes | 130 | 136 |
Deferred tax assets | 221 | 289 |
Deferred tax assets, noncurrent | 351 | 425 |
Deferred tax assets, total | 429 | 492 |
Current liabilities: | ||
Liability for uncertain tax positions | (34) | (30) |
Income taxes payable | (163) | (368) |
Deferred tax liabilities, current | (197) | (398) |
Non-current: | ||
Deferred taxes | (576) | (360) |
Income taxes payable | (39) | (130) |
Liability for uncertain tax positions | (379) | (364) |
Deferred tax liabilities, noncurrent | (994) | (854) |
Deferred tax liabilities, total | (1,191) | (1,252) |
Income Tax Rate Reconciliation [Line Items] | ||
Valuation allowance | 2,133 | $ 3,860 |
Net decrease in deferred tax asset valuation allowance | 1,729 | |
Other increase in valuation allowance | 1 | |
Net decrease in deferred tax asset valuation allowance for currency translation | 121 | |
Foreign | ||
Income Tax Rate Reconciliation [Line Items] | ||
Net decrease in deferred tax asset valuation allowance for changes to foreign losses | $ 1,609 |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 88 | $ 132 |
Net operating loss carryforward with no expiration | 88 | 128 |
Net operating loss carryforward with expiration | 0 | 4 |
Tax credit carryforwards | 5 | 5 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 5 | 5 |
Capital loss carryforwards | 42 | 0 |
Capital loss carryforwards with no expiration | 0 | 0 |
Capital loss carryforwards with expiration | 42 | 0 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 589 | 369 |
Net operating loss carryforward with no expiration | 243 | 6 |
Net operating loss carryforward with expiration | 346 | 363 |
Tax credit carryforwards | 5 | 0 |
Tax credit carryforwards with no expiration | 2 | 0 |
Tax credit carryforwards with expiration | 3 | 0 |
Capital loss carryforwards | 0 | 0 |
Capital loss carryforwards with no expiration | 0 | 0 |
Capital loss carryforwards with expiration | 0 | 0 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 9,368 | 16,700 |
Net operating loss carryforward with no expiration | 5,635 | 6,191 |
Net operating loss carryforward with expiration | 3,733 | 10,509 |
Tax credit carryforwards | 0 | 0 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 0 | 0 |
Capital loss carryforwards | 199 | 45 |
Capital loss carryforwards with no expiration | 199 | 45 |
Capital loss carryforwards with expiration | $ 0 | $ 0 |
Income Taxes - Income Tax Conti
Income Taxes - Income Tax Contingency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Other foreign earnings not indefinitely reinvested | $ 495 | ||
Liability For Uncertain Tax Positions [Abstract] | |||
Tax | 422 | $ 354 | $ 253 |
Interest | 76 | 46 | 45 |
Penalties | 20 | 22 | 21 |
Offset to receivable | (104) | (18) | |
Net of tax attributes | (1) | (10) | |
Total | 413 | 394 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of fiscal year | 354 | 253 | 165 |
Gross increases related to prior year tax positions | 61 | 60 | 74 |
Gross decreases related to prior year tax positions | (16) | (30) | (9) |
Gross increases related to current year tax positions | 93 | 102 | 15 |
Settlements and statute of limitation expirations | (33) | (36) | (7) |
Acquisitions and Dispositions | (36) | ||
Acquisitions and Dispositions | 6 | 18 | |
Foreign exchange and others | (1) | (1) | (3) |
Balance at end of fiscal year | 422 | 354 | 253 |
Liability for uncertain tax positions that if recognized would affect the effective tax rate | 393 | 316 | 210 |
Interest Accrued Related to Uncertain Tax Positions and Penalties [Abstract] | |||
Increase (decrease) in interest expense | (1) | 1 | 5 |
Tax expense on interest | 1 | (1) | 3 |
Increase (decrease) in accrued expense for penalties | (2) | 1 | (3) |
Liability recognized for accrued interest | 76 | 46 | 45 |
Liability recognized for accrued interest, tax | 60 | 39 | 40 |
Liability recognized for accrued penalties | 20 | $ 22 | $ 21 |
Potential federal and state cost from tax examinations | 458 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Interest deduction carryforwards with no expiration | 239 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Interest deduction carryforwards with no expiration | 667 | ||
Settlement with Taxing Authority | |||
Interest Accrued Related to Uncertain Tax Positions and Penalties [Abstract] | |||
Reasonably possible reduction in liability for uncertain tax positions in next twelve months | $ 44 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) | Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Mar. 31, 2022GBP (£) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Jun. 30, 2021 | Apr. 01, 2021 | Mar. 31, 2021USD ($) |
Short-term debt and current maturities of long-term debt | ||||||||
Commercial paper | $ 362,000,000 | $ 213,000,000 | ||||||
Current maturities of long-term debt | 249,000,000 | 556,000,000 | ||||||
Current maturities of finance lease liabilities | 289,000,000 | 398,000,000 | ||||||
Short-term debt and current maturities of long-term debt | 900,000,000 | 1,167,000,000 | ||||||
Long-term debt, net of current maturities | ||||||||
Finance lease liabilities | 643,000,000 | 894,000,000 | ||||||
Long-term debt | 4,603,000,000 | 5,299,000,000 | ||||||
Less: current maturities | 538,000,000 | 954,000,000 | ||||||
Long-term debt, net of current maturities | 4,065,000,000 | 4,345,000,000 | ||||||
Senior notes | ||||||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | 3,575,000,000 | 3,631,000,000 | ||||||
Unamortized debt (discount) premiums and deferred debt issuance costs | (28,000,000) | (34,000,000) | ||||||
Borrowings for assets acquired under long-term financing | ||||||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 344,000,000 | 672,000,000 | ||||||
Mandatorily redeemable preferred stock outstanding | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 6.00% | 6.00% | 6.00% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 63,000,000 | 63,000,000 | ||||||
Other borrowings | ||||||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 6,000,000 | 5,000,000 | ||||||
Minimum | Finance lease liabilities | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 0.23% | 0.23% | 0.23% | |||||
Minimum | Borrowings for assets acquired under long-term financing | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 0.00% | 0.00% | 0.00% | |||||
Maximum | Finance lease liabilities | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 12.79% | 12.79% | 12.79% | |||||
Maximum | Borrowings for assets acquired under long-term financing | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 6.78% | 6.78% | 6.78% | |||||
Senior notes, EUR, due 2026 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | € | € 650,000,000 | |||||||
Effective interest rate | 1.75% | 1.75% | 1.75% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 720,000,000 | 760,000,000 | ||||||
Senior notes, due 2027 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 700,000,000 | $ 700,000,000 | ||||||
Effective interest rate | 1.80% | 1.80% | 1.80% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 694,000,000 | 0 | ||||||
Senior notes, EUR, due 2028 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | € | € 750,000,000 | € 750,000,000 | ||||||
Effective interest rate | 0.45% | 0.45% | 0.45% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 828,000,000 | 0 | ||||||
Senior notes, due 2029 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 650,000,000 | $ 650,000,000 | ||||||
Effective interest rate | 2.375% | 2.375% | 2.375% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 644,000,000 | 0 | ||||||
Senior notes, EUR, due 2032 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | € | € 600,000,000 | € 600,000,000 | ||||||
Effective interest rate | 0.95% | 0.95% | 0.95% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 661,000,000 | 0 | ||||||
Term loan payable, EUR, due 2023-2024 | Loans payable | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 0.80% | 0.80% | 0.80% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 469,000,000 | ||||||
Senior notes, due 2023 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 274,000,000 | |||||||
Effective interest rate | 4.45% | 4.45% | 4.45% | |||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 154,000,000 | ||||||
Senior notes, due 2023 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 171,000,000 | |||||||
Effective interest rate | 4.45% | 4.45% | 4.45% | 0.0445% | ||||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 165,000,000 | ||||||
Senior notes, due 2025 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 500,000,000 | |||||||
Effective interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 504,000,000 | ||||||
Senior notes, due 2026 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 500,000,000 | |||||||
Effective interest rate | 4.13% | 4.13% | 4.13% | 4.125% | 4.125% | 4.125% | ||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 496,000,000 | ||||||
Senior notes, pound sterling, due 2025 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | ÂŁ | ÂŁ 250,000,000 | |||||||
Effective interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | |||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 343,000,000 | ||||||
Senior notes, due 2028 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 500,000,000 | |||||||
Effective interest rate | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | 506,000,000 | ||||||
Senior notes, due 2030 | Senior notes | ||||||||
Debt Information [Abstract] | ||||||||
Face amount | $ 234,000,000 | |||||||
Effective interest rate | 7.45% | 7.45% | 7.45% | 7.45% | 7.45% | |||
Long-term debt, net of current maturities | ||||||||
Long-term debt, net of current maturities | $ 0 | $ 268,000,000 | ||||||
Commercial paper | ||||||||
Long-term debt, net of current maturities | ||||||||
Amount of multi-year committed revolving credit facility | € | € 1,000,000,000 | |||||||
Commercial paper | Minimum | ||||||||
Debt Information [Abstract] | ||||||||
Weighted average interest rate | (0.40%) | (0.40%) | (0.40%) | |||||
Commercial paper | Maximum | ||||||||
Debt Information [Abstract] | ||||||||
Weighted average interest rate | (0.27%) | (0.27%) | (0.27%) | |||||
Current maturities of finance lease liabilities | Minimum | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 0.23% | 0.23% | 0.23% | |||||
Current maturities of finance lease liabilities | Maximum | ||||||||
Debt Information [Abstract] | ||||||||
Effective interest rate | 12.79% | 12.79% | 12.79% |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Apr. 01, 2021USD ($) | Sep. 30, 2021EUR (€) | Jun. 30, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2022EUR (€) | Mar. 31, 2022GBP (£) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) |
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 2,872,000,000 | $ 3,552,000,000 | $ 1,039,000,000 | |||||||
Senior Notes, Due 2023 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 154,000,000 | $ 319,000,000 | ||||||||
Effective interest rate | 0.0445% | 4.45% | ||||||||
Senior notes, due 2026 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 4.125% | 4.13% | 4.13% | 4.13% | 4.125% | 4.125% | ||||
Debt repurchased | $ 33,000,000 | |||||||||
Face amount | $ 500,000,000 | |||||||||
Euro Senior Notes Due 2028 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 0.45% | 0.45% | ||||||||
Face amount | € | € 750 | |||||||||
Euro Senior Notes Due 2032 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 0.95% | 0.95% | ||||||||
Face amount | € | € 600 | |||||||||
Euro Senior Notes | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | € | € 400 | |||||||||
Senior notes, due 2025 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||||
Face amount | $ 500,000,000 | |||||||||
Senior notes, pound sterling, due 2025 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | |||||
Face amount | ÂŁ | ÂŁ 250,000,000 | |||||||||
U.S. Dollar Senior Notes Due 2027 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 1.80% | 1.80% | ||||||||
Face amount | $ 700,000,000 | |||||||||
U.S. Dollar Senior Notes Due 2029 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 2.375% | 2.375% | ||||||||
Face amount | $ 650,000,000 | |||||||||
Senior notes, due 2028 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||||
Face amount | $ 500,000,000 | |||||||||
Senior notes, due 2030 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 7.45% | 7.45% | 7.45% | 7.45% | 7.45% | |||||
Face amount | $ 234,000,000 | |||||||||
Senior notes, due 2027 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 1.80% | 1.80% | 1.80% | |||||||
Face amount | $ 700,000,000 | $ 700,000,000 | ||||||||
Senior notes, due 2029 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 2.375% | 2.375% | 2.375% | |||||||
Face amount | $ 650,000,000 | $ 650,000,000 | ||||||||
Senior Notes, Due 2026 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount | € | € 650 | |||||||||
Senior notes, EUR, due 2028 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 0.45% | 0.45% | 0.45% | |||||||
Face amount | € | € 750 | 750 | ||||||||
Senior notes, EUR, due 2032 | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 0.95% | 0.95% | 0.95% | |||||||
Face amount | € | € 600 | € 600 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term Debt (Details) $ in Millions | Mar. 31, 2022USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2023 | $ 249 |
2024 | 123 |
2025 | 22 |
2026 | 723 |
2027 | 697 |
Thereafter | 2,146 |
Total | $ 3,960 |
Pension and Other Benefit Pla_3
Pension and Other Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contractual termination benefits | $ 4 | $ 13 | $ 10 |
Measurement period used to calculate long-term rate of return on assets | 30 years | ||
Defined contribution plan contribution | $ 226 | 221 | $ 192 |
Shares of company common stock held in defined contribution plan assets (in shares) | 2,785,795 | ||
Non-employee directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation plan, maximum deferral percentage | 100.00% | ||
Deferred compensation plan, liability | $ 36 | 42 | |
Deferred compensation plan, expense | $ 2 | $ 8 |
Pension and Other Benefit Pla_4
Pension and Other Benefit Plans - Pension Plan, Reconciliation of Changes in PBO and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 12,436 | $ 10,150 | |
Service cost | 88 | 91 | $ 92 |
Interest cost | 203 | 245 | 237 |
Plan participants’ contributions | 30 | 31 | |
Amendments | (12) | (9) | |
Business/contract acquisitions/divestitures | (2) | 11 | |
Contractual termination benefits | 4 | 13 | |
Settlement/curtailment | (76) | (37) | |
Actuarial (gain) loss | (831) | 1,262 | |
Benefits paid | (458) | (393) | |
Foreign currency exchange rate changes | (485) | 1,084 | |
Other | (35) | (12) | |
Projected benefit obligation at end of year | $ 10,862 | $ 12,436 | 10,150 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.70% | 2.00% | |
Rates of increase in compensation levels | 2.90% | 2.50% | |
Interest Crediting Rate | 4.00% | 4.00% | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 13,425 | $ 11,090 | |
Actual return on plan assets | 441 | 1,401 | |
Employer contribution | 161 | 117 | |
Plan participants’ contributions | 30 | 31 | |
Benefits paid | (458) | (393) | |
Business/contract acquisitions/divestitures | 0 | 0 | |
Contractual termination benefits | 4 | 7 | |
Plan settlement | (66) | (31) | |
Foreign currency exchange rate changes | (566) | 1,224 | |
Other | (19) | (21) | |
Fair value of plan assets at end of year | 12,952 | 13,425 | $ 11,090 |
Funded status at end of year | $ 2,090 | $ 989 |
Pension and Other Benefit Pla_5
Pension and Other Benefit Plans - Pension Plan, Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Other assets | $ 2,718 | $ 1,884 |
Accrued expenses and other current liabilities | (23) | (81) |
Non-current pension obligations | (590) | (796) |
Other long-term liabilities - OPEB | (15) | (18) |
Net amount recorded | 2,090 | 989 |
Accumulated benefit obligation | $ 10,790 | $ 12,346 |
Pension and Other Benefit Pla_6
Pension and Other Benefit Plans - Pension Plan, Assumptions and Other Selected Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | $ 1,795 | $ 2,490 |
Accumulated benefit obligation | 1,717 | 2,431 |
Fair value of plan assets | 1,167 | 1,596 |
Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | 1,440 | 2,453 |
Accumulated benefit obligation | 1,401 | 2,402 |
Fair value of plan assets | $ 830 | $ 1,562 |
Pension and Other Benefit Pla_7
Pension and Other Benefit Plans - Pension Plan, Net Periodic Costs and Other Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 88 | $ 91 | $ 92 |
Interest cost | 203 | 245 | 237 |
Expected return on assets | (581) | (659) | (651) |
Amortization of prior service credit | (8) | (8) | (9) |
Contractual termination benefits | 4 | 13 | 10 |
Settlement/curtailment (gain) loss | (20) | (18) | 7 |
Recognition of actuarial (gain) loss | (664) | 537 | (252) |
Net periodic pension (income) expense | $ (978) | $ 201 | $ (566) |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount or settlement rates | 2.00% | 2.40% | 2.40% |
Expected long-term rates of return on assets | 4.40% | 5.60% | 5.80% |
Rates of increase in compensation levels | 2.50% | 1.70% | 2.00% |
Interest Crediting Rate | 4.00% | 4.00% | 0.00% |
Employer contributions: | |||
2023 | $ 88 | ||
Benefit Payments: | |||
2023 | 483 | ||
2024 | 419 | ||
2025 | 426 | ||
2026 | 434 | ||
2027 | 444 | ||
2028 and thereafter | 2,361 | ||
Total | $ 4,567 |
Pension and Other Benefit Pla_8
Pension and Other Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Retirement Benefits [Abstract] | ||
Prior service cost | $ (238) | $ (239) |
Pension and Other Benefit Pla_9
Pension and Other Benefit Plans - Fair Value by Investment Category and Level Within Fair Value Hierarchy (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 12,952 | $ 13,425 | $ 11,090 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 813 | 419 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,491 | 10,975 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,648 | 2,031 | $ 1,358 |
US Domestic Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
US Domestic Stocks | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
US Domestic Stocks | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
US Domestic Stocks | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global Stocks | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global Stocks | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global Stocks | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global/International Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,267 | 2,506 | |
Global/International Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 169 | 246 | |
Global/International Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,098 | 2,260 | |
Global/International Equity commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global equity mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global equity mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global equity mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S./North American Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
U.S./North American Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S./North American Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
U.S./North American Equity commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Government funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 0 | |
Non-U.S. Government funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Government funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 0 | |
Non-U.S. Government funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 58 | |
Fixed income commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 1 | |
Fixed income commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 42 | |
Fixed income commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 15 | |
Fixed income mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Fixed income mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Fixed income mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,669 | 5,500 | |
Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,668 | 5,500 | |
Corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Alternatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,788 | 4,637 | |
Other Alternatives | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 1 | |
Other Alternatives | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,182 | 2,706 | |
Other Alternatives | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,602 | 1,930 | |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 11 | |
Hedge Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 10 | |
Hedge Funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 387 | 220 | |
Other Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 278 | 70 | |
Other Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 78 | 65 | |
Other Assets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31 | 85 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 342 | 384 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 4 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 342 | 380 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 369 | 99 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 357 | 97 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 2 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Benefit Pl_10
Pension and Other Benefit Plans - Reconciliation of Assets Valued Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 13,425 | $ 11,090 |
Changes due to exchange rates | 485 | (1,084) |
Fair value of plan assets at end of year | 12,952 | 13,425 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 2,031 | 1,358 |
Actual return on plan assets held at the reporting date | (156) | 233 |
Purchases, sales and settlements | (156) | 279 |
Transfers in and / or out of Level 3 | 0 | 0 |
Changes due to exchange rates | (71) | 161 |
Fair value of plan assets at end of year | $ 1,648 | $ 2,031 |
Pension and Other Benefit Pl_11
Pension and Other Benefit Plans - Asset Allocations (Details) | Mar. 31, 2022 | Mar. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 18.00% | 19.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 37.00% | 42.00% |
Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 39.00% | 37.00% |
Cash and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 6.00% | 2.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 12 Months Ended | |||||
Mar. 31, 2022vote$ / sharesshares | Mar. 31, 2021$ / sharesshares | Mar. 31, 2020shares | Feb. 02, 2022shares | Nov. 08, 2018USD ($) | Apr. 03, 2017shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Number of votes per common share | vote | 1 | |||||
Stock repurchase program, shares authorized | 2,000,000,000 | |||||
Stock repurchase program, increase (decrease) in authorized shares | $ | $ 2,000,000,000 | |||||
Number of shares to be repurchased incrementally (up to) | 1,000,000,000 | |||||
Treasury Stock Transactions [Abstract] | ||||||
Common stock in treasury, at cost (in shares) | 2,878,079 | 2,458,027 | 2,148,708 | |||
Common Stock | Shares Repurchased From Employees Related To Stock Option Plans | ||||||
Treasury Stock Transactions [Abstract] | ||||||
Accepted common stock in lieu of cash in connection with exercise of stock options (in shares) | 4,614 | 4,050 | 38,902 | |||
Accepted common stock in lieu of cash in connection with the tax withholdings associated with the vesting and release of common stock (in shares) | 415,438 | 305,269 | 321,148 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased (in shares) | 18,818,934 | 0 | 15,933,651 |
Average price per share (in dollars per share) | $ 33.67 | $ 46.21 | |
Share repurchase amount | $ 634 | $ 736 | |
Open market purchases | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased (in shares) | 18,818,934 | 12,279,107 | |
Average price per share (in dollars per share) | $ 33.67 | $ 43.67 | |
Share repurchase amount | $ 634 | $ 536 | |
ASR | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased (in shares) | 3,654,544 | ||
Average price per share (in dollars per share) | $ 54.73 | ||
Share repurchase amount | $ 200 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($)$ / shares | |
Equity [Abstract] | |
Dividends declared (in dollars per share) | $ / shares | $ 0.84 |
Dividends declared | $ | $ 219 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | $ 5,308 | $ 5,129 | $ 11,725 |
Ending balance | 5,375 | 5,308 | 5,129 |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | (554) | (851) | (517) |
Current-period other comprehensive (loss) income | (11) | 297 | (334) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | (86) | 0 | 0 |
Ending balance | (651) | (554) | (851) |
Foreign Currency Translation Adjustments | HPS Business | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 86 | ||
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | (1) | (20) | (3) |
Current-period other comprehensive (loss) income | 17 | 14 | (15) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | (6) | 5 | (2) |
Ending balance | 10 | (1) | (20) |
Available-for-sale Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | 253 | 259 | 267 |
Current-period other comprehensive (loss) income | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 3 | (6) | (8) |
Ending balance | 256 | 253 | 259 |
Pension and Other Post-retirement Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | 0 | 9 | 9 |
Current-period other comprehensive (loss) income | 0 | (9) | 0 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 0 | 0 | 0 |
Ending balance | 0 | 0 | 9 |
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | (302) | (603) | (244) |
Current-period other comprehensive (loss) income | 6 | 302 | (349) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | (89) | (1) | (10) |
Ending balance | $ (385) | $ (302) | $ (603) |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2022USD ($)anniversary$ / sharesshares | Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan term (in years) | 10 years | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Cash received from stock awards exercised during the period | $ | $ 12 | $ 1 | $ 9 |
Number of common shares available for grant at period end (in shares) | 31,819,386 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Term of options (in years) | 10 years | ||
Stock Options | 33.33% vested in year 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Stock Options | 33.33% vested in year 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Stock Options | 33.33% vested in year 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares received per RSU (in shares) | 1 | ||
Number of anniversaries following the executive's termination that the shares are redeemable | anniversary | 10 | ||
Total unrecognized compensation expense related to unvested awards, net of expected forfeitures | $ | $ 151 | ||
Weighted average period over which cost is expected to be recognized (in years) | 1 year 9 months 14 days | ||
RSUs | Five Year Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual installments (in years) | 5 years | ||
RSUs | Ten Year Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual installments (in years) | 10 years | ||
RSUs | Fifteen Year Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual installments (in years) | 15 years | ||
Performance-based Restricted Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Award vesting rights, percentage | 25.00% | ||
Performance period (in years) | 3 years | ||
DXC Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common shares available for grant at period end (in shares) | 125,917 | ||
DXC Share Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased under plan (in shares) | 29,391 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share Based Compensation Shares Authorized (Details) | Mar. 31, 2022shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 52,195,000 |
Available for future grant (in shares) | 31,819,386 |
DXC Employee Equity Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 51,200,000 |
Available for future grant (in shares) | 31,331,818 |
DXC Director Equity Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 745,000 |
Available for future grant (in shares) | 361,651 |
DXC Share Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 250,000 |
Available for future grant (in shares) | 125,917 |
Stock Incentive Plans - Sched_2
Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Total share-based compensation cost | $ 101 | $ 56 | $ 68 |
Related income tax benefit | 14 | 6 | 12 |
Total intrinsic value of options exercised | 8 | 1 | 8 |
Tax benefits from exercised stock options and awards | $ 17 | $ 6 | $ 14 |
Stock Incentive Plans - Sched_3
Stock Incentive Plans - Schedule of Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Additional Disclosures | ||||
Aggregate intrinsic value of options exercised | $ 8 | $ 1 | $ 8 | |
Stock Options | ||||
Number of Option Shares | ||||
Outstanding beginning of period (in shares) | 1,675,580 | 1,869,815 | 2,318,768 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (510,294) | (89,335) | (331,172) | |
Canceled/Forfeited (in shares) | 0 | 0 | (2,213) | |
Expired (in shares) | (53,899) | (104,900) | (115,568) | |
Outstanding end of period (in shares) | 1,111,387 | 1,675,580 | 1,869,815 | 2,318,768 |
Weighted Average Exercise Price | ||||
Weighted average exercise price - beginning of period (in dollars per share) | $ 30.43 | $ 29.92 | $ 30.40 | |
Weighted average exercise price - granted (in dollars per share) | 0 | 0 | 0 | |
Weighted average exercise price - exercised (in dollars per share) | 23.27 | 16.01 | 31.36 | |
Weighted average exercise price - canceled/forfeited (in dollars per share) | 0 | 0 | 55.95 | |
Weighted average exercise price - expired (in dollars per share) | 35.57 | 33.53 | 34.97 | |
Weighted average exercise price - end of period (in dollars per share) | $ 33.47 | $ 30.43 | $ 29.92 | $ 30.40 |
Additional Disclosures | ||||
Weighted average remaining contractual term (in years) | 3 years 3 days | 3 years 7 months 9 days | 4 years 3 months 7 days | 4 years 9 months 18 days |
Aggregate intrinsic value | $ 5 | $ 8 | $ 0 | $ 79 |
Aggregate intrinsic value of options exercised | $ 8 | $ 1 | $ 8 | |
Vested and Expected to Vest and Exercisable | ||||
Vested and expected to vest in the future as of period end (in shares) | 1,111,387 | |||
Exercisable as of period end (in shares) | 1,111,347 | |||
Weighted average exercise price vested and expected to vest as of period end (in dollars per share) | $ 33.47 | |||
Weighted average exercise price exercisable as of period end (in dollars per share) | $ 33.47 | |||
Weighted average remaining contractual life vested and expected to vest in the future as of period end (in years) | 3 years 3 days | |||
Weighted average remaining contractual life exercisable as of period end (in years) | 3 years 3 days | |||
Aggregate intrinsic value vested and expected to vest in the future as of period end | $ 5 | |||
Aggregate intrinsic value exercisable as of period end | $ 5 |
Stock Incentive Plans - Sched_4
Stock Incentive Plans - Schedule of Share Based Compensation Shares Authorized under Stock Option Plans by Exercise Price Range Table (Details) | 12 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 1,111,387 |
Number of exercisable options (in shares) | shares | 1,111,387 |
$8.96 - $24.47 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | $ 8.96 |
Range of option exercise price, maximum (in dollars per share) | $ 24.47 |
Number of options outstanding (in shares) | shares | 137,920 |
Weighted average exercise price (in dollars per share) | $ 19.89 |
Weighted average remaining contractual term (in years) | 1 year 10 months 20 days |
Number of exercisable options (in shares) | shares | 137,920 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 19.89 |
$25.14 - $41.92 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 25.14 |
Range of option exercise price, maximum (in dollars per share) | $ 41.92 |
Number of options outstanding (in shares) | shares | 518,356 |
Weighted average exercise price (in dollars per share) | $ 27.34 |
Weighted average remaining contractual term (in years) | 2 years 10 months 20 days |
Number of exercisable options (in shares) | shares | 518,356 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 27.34 |
$42.05 - $58.80 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 42.05 |
Range of option exercise price, maximum (in dollars per share) | $ 58.80 |
Number of options outstanding (in shares) | shares | 455,111 |
Weighted average exercise price (in dollars per share) | $ 44.59 |
Weighted average remaining contractual term (in years) | 3 years 5 months 26 days |
Number of exercisable options (in shares) | shares | 455,111 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 44.59 |
Stock Incentive Plans - Sched_5
Stock Incentive Plans - Schedule of RSUs (Details) - RSUs - $ / shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 8,326,220 | 4,174,476 | 2,809,775 |
Equity instruments other than options nonvested - granted (in shares) | 2,972,253 | 8,026,810 | 3,166,405 |
Equity instruments other than options nonvested - released/issued (in shares) | (2,141,180) | (1,249,681) | (1,039,346) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | (1,680,167) | (2,625,385) | (762,358) |
Equity instruments other than options nonvested - ending balance (in shares) | 7,477,126 | 8,326,220 | 4,174,476 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 28.98 | $ 55.45 | $ 67.27 |
Weighted average fair value other than options - granted (in dollars per share) | 50.87 | 20.92 | 45.58 |
Weighted average fair value other than options - released/issued (in dollars per share) | 34.12 | 52.82 | 54.39 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 34.93 | 35.16 | 59.46 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 35.89 | $ 28.98 | $ 55.45 |
Nonemployee director incentives | |||
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 184,660 | 114,615 | 75,750 |
Equity instruments other than options nonvested - granted (in shares) | 74,300 | 118,500 | 62,200 |
Equity instruments other than options nonvested - released/issued (in shares) | (102,238) | (48,455) | (23,335) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | 0 | 0 | 0 |
Equity instruments other than options nonvested - ending balance (in shares) | 156,722 | 184,660 | 114,615 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 28.42 | $ 37.69 | $ 46.31 |
Weighted average fair value other than options - granted (in dollars per share) | 35.18 | 18.82 | 35.90 |
Weighted average fair value other than options - released/issued (in dollars per share) | 21.43 | 26.90 | 60.90 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 0 | 0 | 0 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 36.18 | $ 28.42 | $ 37.69 |
Cash Flows (Details)
Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for: | |||
Interest | $ 227 | $ 334 | $ 371 |
Taxes on income, net of refunds | 394 | 798 | 247 |
Non-cash activities, operating | |||
ROU assets obtained in exchange for lease, net | 279 | 530 | 411 |
Prepaid assets acquired under long-term financing | 107 | 46 | 99 |
Non-cash activities, investing | |||
Capital expenditures in accounts payable and accrued expenses | 9 | 341 | 66 |
Capital expenditures through finance lease obligations | 233 | 348 | 605 |
Assets acquired under long-term financing | 44 | 35 | 376 |
Decrease in deferred purchase price receivable | 0 | (52) | (205) |
Contingent consideration | 0 | 3 | 18 |
Non-cash activities, financing | |||
Dividends declared but not yet paid | 0 | 0 | 55 |
Shares repurchased but not settled in cash | 6 | 0 | 0 |
Income tax refunds | 54 | 70 | 42 |
Lease modifications and terminations | $ 1,085 | $ 763 | 216 |
Change in lease classification from operating to finance lease | $ 87 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Non-service cost components of net periodic pension (income) expense | $ (1,066) | $ 110 | $ (658) |
Foreign currency loss (gain) | 13 | 14 | (25) |
Other gain | (28) | (22) | (37) |
Totals | (1,081) | 102 | (720) |
Actuarial gain (loss) | $ 664 | $ (537) | $ 252 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 16,265 | $ 17,729 | $ 19,577 |
Segment Profit | 1,375 | 1,102 | 2,061 |
Depreciation and amortization | 1,283 | 1,440 | 1,359 |
Amortization of acquired intangible assets | 434 | 530 | 583 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Subtotal | 1,375 | 1,102 | 2,061 |
Interest income | 65 | 98 | 165 |
Interest expense | (204) | (361) | (383) |
Restructuring costs | (318) | (551) | (252) |
Transaction, separation and integration-related costs | (26) | (358) | (318) |
Amortization of acquired intangibles | (434) | (530) | (583) |
Gains on dispositions | 341 | 2,004 | 0 |
Pension and OPEB actuarial and settlement gains (losses) | 684 | (519) | 244 |
Debt extinguishment cost | (311) | (41) | 0 |
Impairment losses | (31) | (190) | (6,794) |
Gain on arbitration award | 0 | 0 | 632 |
Income (loss) before income taxes | 1,141 | 654 | (5,228) |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,265 | 17,729 | 19,577 |
Segment Profit | 1,635 | 1,365 | 2,308 |
Depreciation and amortization | 1,171 | 1,334 | 1,250 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Subtotal | 1,635 | 1,365 | 2,308 |
Operating segments | GBS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,598 | 8,336 | 9,111 |
Segment Profit | 1,160 | 1,120 | 1,301 |
Depreciation and amortization | 180 | 212 | 199 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Subtotal | 1,160 | 1,120 | 1,301 |
Operating segments | GIS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,667 | 9,393 | 10,466 |
Segment Profit | 475 | 245 | 1,007 |
Depreciation and amortization | 991 | 1,122 | 1,051 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Subtotal | 475 | 245 | 1,007 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Segment Profit | (260) | (263) | (247) |
Depreciation and amortization | 112 | 106 | 109 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Subtotal | $ (260) | $ (263) | $ (247) |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic PPE (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | $ 2,412 | $ 2,946 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | 975 | 1,189 |
U.K. | ||
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | 415 | 465 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | 120 | 149 |
Other Europe | ||
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | 460 | 603 |
Other International | ||
Segment Reporting Information [Line Items] | ||
Total Property and Equipment, net | $ 442 | $ 540 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 16,265 | $ 17,729 | $ 19,577 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 4,775 | 5,983 | 7,225 |
U.K. | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 2,295 | 2,413 | 2,776 |
Other Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 5,117 | 5,129 | 5,121 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 1,549 | 1,529 | 1,487 |
Other International | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 2,529 | $ 2,675 | $ 2,968 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Billions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 22 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 39.00% |
Remaining performance obligation period | 12 months |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables, net | $ 2,694 | $ 2,871 | |
Contract assets | 371 | 351 | |
Contract liabilities | $ 1,915 | $ 1,701 | $ 1,756 |
Revenue - Change in Contract Li
Revenue - Change in Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change In Contract With Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 1,701 | $ 1,756 |
Deferred revenue | 3,099 | 2,933 |
Recognition of deferred revenue | (2,770) | (2,922) |
Currency translation adjustment | (43) | 128 |
Other | (72) | (194) |
Balance, end of period | $ 1,915 | 1,701 |
HHS Business | ||
Change In Contract With Customer, Liability [Roll Forward] | ||
Other | 52 | |
HPS Business | ||
Change In Contract With Customer, Liability [Roll Forward] | ||
Other | $ 62 |
Revenue - Capitalized Contract
Revenue - Capitalized Contract Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalized sales commission cost | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | $ 191 | $ 256 | |
Capitalized contract cost, amortization | 85 | 70 | $ 72 |
Transition and transformation contract costs, net | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | 818 | 888 | |
Capitalized contract cost, amortization | $ 227 | $ 264 | $ 280 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 318 | $ 551 | $ 252 |
Restructuring Reserve [Abstract] | |||
Accrued expenses and other current liabilities | 113 | 225 | |
Other long-term liabilities | 39 | 45 | |
Total | 152 | 270 | 180 |
Fiscal 2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 320 | ||
Amortization of right-of-use assets and interest expense for leased facilities | 18 | ||
Restructuring Reserve [Abstract] | |||
Total | 85 | 0 | |
Fiscal 2021 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 3 | 538 | |
Restructuring Reserve [Abstract] | |||
Total | 34 | 183 | 0 |
Restructuring cost incurred to date | 541 | ||
Fiscal 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | 4 | |
Restructuring Reserve [Abstract] | |||
Total | 6 | 27 | 76 |
Restructuring cost incurred to date | 294 | ||
Other Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1 | ||
Restructuring Reserve [Abstract] | |||
Total | 6 | 25 | |
Restructuring cost incurred to date | 1,478 | ||
Workforce Reductions | Fiscal 2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 228 | ||
Restructuring Reserve [Abstract] | |||
Total | 84 | 0 | |
Workforce Reductions | Fiscal 2021 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | 501 | |
Restructuring Reserve [Abstract] | |||
Total | 33 | 180 | 0 |
Restructuring cost incurred to date | 499 | ||
Workforce Reductions | Fiscal 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | 8 | |
Restructuring Reserve [Abstract] | |||
Total | 6 | 27 | 74 |
Restructuring cost incurred to date | 277 | ||
Workforce Reductions | Other Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2 | ||
Restructuring Reserve [Abstract] | |||
Total | 4 | 19 | |
Restructuring cost incurred to date | 1,141 | ||
Facilities Costs | Fiscal 2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 92 | ||
Restructuring Reserve [Abstract] | |||
Total | 1 | 0 | |
Facilities Costs | Fiscal 2021 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 5 | 37 | |
Restructuring Reserve [Abstract] | |||
Total | 1 | 3 | 0 |
Restructuring cost incurred to date | 42 | ||
Facilities Costs | Fiscal 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (4) | |
Restructuring Reserve [Abstract] | |||
Total | 0 | 0 | $ 2 |
Restructuring cost incurred to date | 17 | ||
Facilities Costs | Other Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (1) | ||
Restructuring Reserve [Abstract] | |||
Total | 2 | $ 6 | |
Restructuring cost incurred to date | $ 337 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | $ 270 | $ 180 | |
Costs Expensed, Net of Reversals | 318 | 551 | $ 252 |
Costs Not Affecting Restructuring Liability | (71) | (30) | |
Cash Paid | (354) | (442) | |
Other | (11) | 11 | |
Restructuring Liability, ending balance | 152 | 270 | 180 |
Fiscal 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Costs Expensed, Net of Reversals | 320 | ||
Costs Not Affecting Restructuring Liability | (67) | ||
Cash Paid | (163) | ||
Other | (5) | ||
Restructuring Liability, ending balance | 85 | 0 | |
Fiscal 2021 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 183 | 0 | |
Costs Expensed, Net of Reversals | 3 | 538 | |
Costs Not Affecting Restructuring Liability | (5) | (28) | |
Cash Paid | (144) | (327) | |
Other | (3) | 0 | |
Restructuring Liability, ending balance | 34 | 183 | 0 |
Fiscal 2020 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 27 | 76 | |
Costs Expensed, Net of Reversals | (2) | 4 | |
Costs Not Affecting Restructuring Liability | 0 | 5 | |
Cash Paid | (18) | (62) | |
Other | (1) | 4 | |
Restructuring Liability, ending balance | 6 | 27 | 76 |
Fiscal 2019 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 13 | 30 | |
Costs Expensed, Net of Reversals | (3) | ||
Costs Not Affecting Restructuring Liability | (1) | ||
Cash Paid | (18) | ||
Other | 5 | ||
Restructuring Liability, ending balance | 13 | 30 | |
Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 25 | ||
Costs Expensed, Net of Reversals | 1 | ||
Costs Not Affecting Restructuring Liability | 1 | ||
Cash Paid | (21) | ||
Other | 0 | ||
Restructuring Liability, ending balance | 6 | 25 | |
Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 12 | 24 | |
Costs Expensed, Net of Reversals | 12 | ||
Costs Not Affecting Restructuring Liability | (7) | ||
Cash Paid | (19) | ||
Other | 2 | ||
Restructuring Liability, ending balance | 12 | 24 | |
Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 35 | 50 | |
Costs Expensed, Net of Reversals | (4) | 0 | |
Costs Not Affecting Restructuring Liability | 0 | 1 | |
Cash Paid | (8) | (16) | |
Other | (2) | 0 | |
Restructuring Liability, ending balance | 21 | 35 | 50 |
Workforce Reductions | Fiscal 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Costs Expensed, Net of Reversals | 228 | ||
Costs Not Affecting Restructuring Liability | (5) | ||
Cash Paid | (133) | ||
Other | (6) | ||
Restructuring Liability, ending balance | 84 | 0 | |
Workforce Reductions | Fiscal 2021 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 180 | 0 | |
Costs Expensed, Net of Reversals | (2) | 501 | |
Costs Not Affecting Restructuring Liability | 0 | (11) | |
Cash Paid | (142) | (313) | |
Other | (3) | 3 | |
Restructuring Liability, ending balance | 33 | 180 | 0 |
Workforce Reductions | Fiscal 2020 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 27 | 74 | |
Costs Expensed, Net of Reversals | (2) | 8 | |
Costs Not Affecting Restructuring Liability | 0 | 1 | |
Cash Paid | (18) | (60) | |
Other | (1) | 4 | |
Restructuring Liability, ending balance | 6 | 27 | 74 |
Adjustments to restructuring expense | 14 | ||
Workforce Reductions | Fiscal 2019 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 7 | 25 | |
Costs Expensed, Net of Reversals | (1) | ||
Costs Not Affecting Restructuring Liability | (2) | ||
Cash Paid | (17) | ||
Other | 2 | ||
Restructuring Liability, ending balance | 7 | 25 | |
Workforce Reductions | Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 19 | ||
Costs Expensed, Net of Reversals | 2 | ||
Costs Not Affecting Restructuring Liability | 0 | ||
Cash Paid | (17) | ||
Other | 0 | ||
Restructuring Liability, ending balance | 4 | 19 | |
Workforce Reductions | Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 12 | 24 | |
Costs Expensed, Net of Reversals | 12 | ||
Costs Not Affecting Restructuring Liability | (7) | ||
Cash Paid | (19) | ||
Other | 2 | ||
Restructuring Liability, ending balance | 12 | 24 | |
Workforce Reductions | Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 34 | 39 | |
Costs Expensed, Net of Reversals | (4) | 1 | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | (7) | (7) | |
Other | (2) | 1 | |
Restructuring Liability, ending balance | 21 | 34 | 39 |
Facilities Costs | Fiscal 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Costs Expensed, Net of Reversals | 92 | ||
Costs Not Affecting Restructuring Liability | (62) | ||
Cash Paid | (30) | ||
Other | 1 | ||
Restructuring Liability, ending balance | 1 | 0 | |
Facilities Costs | Fiscal 2021 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 3 | 0 | |
Costs Expensed, Net of Reversals | 5 | 37 | |
Costs Not Affecting Restructuring Liability | (5) | (17) | |
Cash Paid | (2) | (14) | |
Other | 0 | (3) | |
Restructuring Liability, ending balance | 1 | 3 | 0 |
Facilities Costs | Fiscal 2020 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | 2 | |
Costs Expensed, Net of Reversals | 0 | (4) | |
Costs Not Affecting Restructuring Liability | 0 | 4 | |
Cash Paid | 0 | (2) | |
Other | 0 | 0 | |
Restructuring Liability, ending balance | 0 | 0 | 2 |
Facilities Costs | Fiscal 2019 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 6 | 5 | |
Costs Expensed, Net of Reversals | (2) | ||
Costs Not Affecting Restructuring Liability | 1 | ||
Cash Paid | (1) | ||
Other | 3 | ||
Restructuring Liability, ending balance | 6 | 5 | |
Facilities Costs | Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 6 | ||
Costs Expensed, Net of Reversals | (1) | ||
Costs Not Affecting Restructuring Liability | 1 | ||
Cash Paid | (4) | ||
Other | 0 | ||
Restructuring Liability, ending balance | 2 | 6 | |
Facilities Costs | Other Prior Year Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | 0 | |
Costs Expensed, Net of Reversals | 0 | ||
Costs Not Affecting Restructuring Liability | 0 | ||
Cash Paid | 0 | ||
Other | 0 | ||
Restructuring Liability, ending balance | 0 | 0 | |
Facilities Costs | Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 1 | 11 | |
Costs Expensed, Net of Reversals | 0 | (1) | |
Costs Not Affecting Restructuring Liability | 0 | 1 | |
Cash Paid | (1) | (9) | |
Other | 0 | (1) | |
Restructuring Liability, ending balance | $ 0 | $ 1 | $ 11 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Purchase Commitments (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2022USD ($) | |
Minimum Purchase Commitment | |
2023 | $ 828 |
2024 | 393 |
2025 | 249 |
2026 | 239 |
2027 | 14 |
Total | $ 1,723 |
Minimum | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, period | 1 year |
Maximum | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, period | 7 years |
Commitments and Contingencies_2
Commitments and Contingencies - Guarantor Obligations (Details) $ in Millions | Mar. 31, 2022USD ($) |
Guarantor Obligations [Line Items] | |
Fiscal 2023 | $ 233 |
Fiscal 2024 | 85 |
Fiscal 2025 and Thereafter | 590 |
Total | 908 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Fiscal 2023 | 86 |
Fiscal 2024 | 7 |
Fiscal 2025 and Thereafter | 6 |
Total | 99 |
Letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2023 | 77 |
Fiscal 2024 | 47 |
Fiscal 2025 and Thereafter | 575 |
Total | 699 |
Stand-by letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2023 | 70 |
Fiscal 2024 | 31 |
Fiscal 2025 and Thereafter | 9 |
Total | $ 110 |
Commitments and Contingencies_3
Commitments and Contingencies - Contingencies (Details) $ in Millions | Feb. 21, 2020USD ($) | Dec. 31, 2019plaintiff | Jun. 30, 2019plaintiff | Oct. 31, 2018plaintiff | Mar. 31, 2022USD ($) |
Kemper Corporate Services, Inc. v. Computer Sciences Corporation | |||||
Loss Contingencies [Line Items] | |||||
Payments for litigation settlement | $ | $ 60 | ||||
Insurance recoveries | $ | $ 37 | ||||
Forsyth et al. v. HP Inc. and Hewlett Packard Enterprise | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 145 | 16 | |||
Forsyth et al. v. HP Inc. and Hewlett Packard Enterprise | Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 142 | ||||
Forsyth et al. v. HP Inc. and Hewlett Packard Enterprise | Settled Litigation | Employees of Former Business Units of HPE | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 35 | 7 |