A reconciliation of non-GAAP results to the respective most directly comparable financial measure calculated and presented in accordance with GAAP or on a proforma basis is as follows:
| Three months ended June 30, 2017 | |||||||||||||||||||||||||
| (in millions, except per-share amounts) | As reported |
Restructuring
|
Transaction
|
Amortization
|
Non-GAAP
|
||||||||||||||||||||
| Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 4,788 | $ | — | $ |
— |
$ |
— |
$ | 4,788 | |||||||||||||||
| Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 410 | — | (124 | ) |
— |
|
|
286 |
|||||||||||||||||
| Income before income taxes | 185 | 190 | 124 | 120 | 619 | ||||||||||||||||||||
| Income tax expense | 12 | 45 | 41 | 46 | 144 | ||||||||||||||||||||
| Net income | $ | 173 | $ | 145 | $ | 83 | $ | 74 | $ | 475 | |||||||||||||||
| Less: net income attributable to noncontrolling interest, net of tax | 14 | — | — | — | 14 | ||||||||||||||||||||
| Net income attributable to DXC common stockholders | $ | 159 | $ | 145 | $ | 83 | $ | 74 | $ | 461 | |||||||||||||||
| Effective tax rate | 6.5 | % | 23.3 | % | |||||||||||||||||||||
| Basic EPS | $ | 0.56 | $ | 0.51 | $ | 0.29 | $ | 0.26 | $ | 1.62 | |||||||||||||||
| Diluted EPS | $ | 0.55 | $ | 0.50 | $ | 0.29 | $ | 0.26 | $ | 1.59 | |||||||||||||||
| Weighted average common shares outstanding for: | |||||||||||||||||||||||||
| Basic EPS | 283.83 | 283.83 | 283.83 | 283.83 | 283.83 | ||||||||||||||||||||
| Diluted EPS | 289.47 | 289.47 | 289.47 | 289.47 | 289.47 | ||||||||||||||||||||
| Pro forma combined company three months ended July 1, 2016 | ||||||||||||||||||||||||||||||||||||||||
| (in millions, except per-share amounts) |
Pro forma
|
Restructuring
|
Transaction
|
Amortization
|
Pension
|
Certain
|
Tax
|
Non-GAAP
|
||||||||||||||||||||||||||||||||
| Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 5,270 | $ | — | $ | — | $ | — | $ | (150 | ) | $ | — | $ | — | $ | 5,120 | |||||||||||||||||||||||
| Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 710 | — | (86 | ) | — | (48 | ) | (37 | ) | — | 539 | |||||||||||||||||||||||||||||
| (Loss) income before income taxes | (322 | ) | 131 | 86 | 113 | 198 | 37 | — | 243 | |||||||||||||||||||||||||||||||
| Income tax (benefit) expense | (41 | ) | — | — | — | — | — | 108 | 67 | |||||||||||||||||||||||||||||||
| Net (loss) income | $ | (281 | ) | $ | 131 | $ | 86 | $ | 113 | $ | 198 | $ | 37 | $ | (108 | ) | $ | 176 | ||||||||||||||||||||||
| Less: net income attributable to noncontrolling interest, net of tax | 2 | — |
— |
— |
— | — | — | 2 | ||||||||||||||||||||||||||||||||
| Net (loss) income attributable to DXC common stockholders | $ | (283 | ) | $ | 131 | $ | 86 | $ | 113 | $ | 198 | $ | 37 | $ | (108 | ) | $ | 174 | ||||||||||||||||||||||
| Effective Tax Rate | 12.7 | % | 27.6 | % | ||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | (1.00 | ) | $ | 0.46 | $ | 0.30 | $ | 0.40 | $ | 0.70 | $ | 0.13 | $ | (0.38 | ) | $ | 0.61 | ||||||||||||||||||||||
| Diluted EPS | $ | (1.00 | ) | $ | 0.46 | $ | 0.30 | $ | 0.39 | $ | 0.69 | $ | 0.13 | $ | (0.38 | ) | $ | 0.61 | ||||||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||
| Basic EPS | 283.16 | 283.16 | 283.16 | 283.16 | 283.16 | 283.16 | 283.16 | 283.16 | ||||||||||||||||||||||||||||||||
| Diluted EPS | 283.16 | 286.61 | 286.61 | 286.61 | 286.61 | 286.61 | 286.61 | 286.61 | ||||||||||||||||||||||||||||||||
