| Consolidated Statements of Operations | ||||||||||||
|
(preliminary and unaudited) |
||||||||||||
| Three months ended | ||||||||||||
| (in millions, except per-share amounts) | June 30, 2017 | July 1, 2016 | ||||||||||
| Revenues | $ | 5,913 | $ | 1,930 | ||||||||
| Costs of services | 4,788 | 1,421 | ||||||||||
| Selling, general and administrative | 410 | 305 | ||||||||||
| Depreciation and amortization | 361 | 166 | ||||||||||
| Restructuring costs | 190 | 57 | ||||||||||
| Interest expense | 76 | 25 | ||||||||||
| Interest income | (16 | ) | (10 | ) | ||||||||
| Other (income) expense, net | (81 | ) | 2 | |||||||||
| Total costs and expenses | 5,728 | 1,966 | ||||||||||
| Income (loss) before income taxes | 185 | (36 | ) | |||||||||
| Income tax expense (benefit) | 12 | (16 | ) | |||||||||
| Net income (loss) | 173 | (20 | ) | |||||||||
| Less: net income attributable to non-controlling interest, net of tax | 14 | 1 | ||||||||||
| Net income (loss) attributable to DXC common stockholders | $ | 159 | $ | (21 | ) | |||||||
| Income (loss) per common share: | ||||||||||||
| Basic: | 0.56 | (0.15 | ) | |||||||||
| Diluted: | 0.55 | (0.15 | ) | |||||||||
| Cash dividend per common share | $ | 0.18 | $ | 0.14 | ||||||||
| Weighted average common shares outstanding for: | ||||||||||||
| Basic EPS | 283.83 | 138.98 | ||||||||||
| Diluted EPS | 289.47 | 138.98 | ||||||||||
| Selected Consolidated Balance Sheet Data | |||||||||||
|
(preliminary and unaudited) |
|||||||||||
| As of | |||||||||||
| (in millions) | June 30, 2017 | March 31, 2017 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 2,517 | $ | 1,263 | |||||||
| Receivables, net | 5,776 | 1,643 | |||||||||
| Prepaid expenses | 641 | 223 | |||||||||
| Other current assets | 641 | 118 | |||||||||
| Total current assets | 9,575 | 3,247 | |||||||||
| Intangible assets, net | 6,850 | 1,794 | |||||||||
| Goodwill | 8,774 | 1,855 | |||||||||
| Deferred income taxes, net | 445 | 381 | |||||||||
| Property and equipment, net | 3,334 | 903 | |||||||||
| Other assets | 2,238 | 483 | |||||||||
| Total Assets | $ | 31,216 | $ | 8,663 | |||||||
| Liabilities | |||||||||||
| Short-term debt and current maturities of long-term debt | $ | 1,203 | $ | 738 | |||||||
| Accounts payable | 1,961 | 410 | |||||||||
| Accrued payroll and related costs | 912 | 248 | |||||||||
| Accrued expenses and other current liabilities | 2,725 | 998 | |||||||||
| Deferred revenue and advance contract payments | 1,164 | 518 | |||||||||
| Income taxes payable | 126 | 38 | |||||||||
| Total current liabilities | 8,091 | 2,950 | |||||||||
| Long-term debt, net of current maturities | 6,249 | 2,225 | |||||||||
| Non-current deferred revenue | 641 | 286 | |||||||||
| Non-current income tax liabilities and deferred tax liabilities | 1,979 | 423 | |||||||||
| Other long-term liabilities | 1,911 | 613 | |||||||||
| Total Liabilities | 18,871 | 6,497 | |||||||||
| Total Equity | 12,345 | 2,166 | |||||||||
| Total Liabilities and Equity | $ | 31,216 | $ | 8,663 | |||||||
| Consolidated Statements of Cash Flows | ||||||||||||
|
(preliminary and unaudited) |
||||||||||||
| Three months ended | ||||||||||||
| (in millions) | June 30, 2017 | July 1, 2016 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income (loss) | $ | 173 | $ | (20 | ) | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 363 | 169 | ||||||||||
| Share-based compensation | 40 | 14 | ||||||||||
| Unrealized foreign currency exchange losses | (132 | ) | 12 | |||||||||
| Other non-cash charges, net | 13 | (2 | ) | |||||||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||
| Increase in assets | (27 | ) | (42 | ) | ||||||||
| Increase (decrease) in liabilities | 104 | (81 | ) | |||||||||
| Net cash provided by operating activities | 534 | 50 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property and equipment | (69 | ) | (58 | ) | ||||||||
| Payments for outsourcing contract costs | (23 | ) | (27 | ) | ||||||||
| Software purchased and developed | (47 | ) | (36 | ) | ||||||||
| Cash acquired through Merger | 974 | — | ||||||||||
| Payments for acquisitions, net of cash acquired | — | (423 | ) | |||||||||
| Proceeds from sale of assets | 9 | 5 | ||||||||||
| Other investing activities, net | 15 | (10 | ) | |||||||||
| Net cash provided by (used in) investing activities | 859 | (549 | ) | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Borrowings of commercial paper | 611 | 511 | ||||||||||
| Repayments of commercial paper | (553 | ) | (511 | ) | ||||||||
| Borrowings under lines of credit | — | 920 | ||||||||||
| Repayment of borrowings under lines of credit | — | (453 | ) | |||||||||
| Borrowings on long-term debt, net of discount | — | 13 | ||||||||||
| Principal payments on long-term debt | (151 | ) | (120 | ) | ||||||||
| Proceeds from stock options and other common stock transactions | 25 | 36 | ||||||||||
| Taxes paid related to net share settlements of share-based compensation awards | (62 | ) | (6 | ) | ||||||||
| Repurchase of common stock | (14 | ) | — | |||||||||
| Dividend payments | (20 | ) | (19 | ) | ||||||||
| Other financing activities, net | (4 | ) | (17 | ) | ||||||||
| Net cash (used in) provided by financing activities | (168 | ) | 354 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 29 | (33 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents | 1,254 | (178 | ) | |||||||||
| Cash and cash equivalents at beginning of year | 1,263 | 1,178 | ||||||||||
| Cash and cash equivalents at end of period | $ | 2,517 | $ | 1,000 | ||||||||
