Segment Profit |
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Three Months Ended | ||||||||||||||||||
(in millions) | September 30, 2017 |
Historical CSC
|
Pro Forma
|
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Profit | ||||||||||||||||||
GBS profit | $ | 380 | $ | 105 | $ | 265 | ||||||||||||
GIS profit | 469 | 66 | 156 | |||||||||||||||
USPS profit | 109 | — | 68 | |||||||||||||||
All other profit (loss) | (82 | ) | (51 | ) | (160 | ) | ||||||||||||
Interest Income | 16 | 8 | 20 | |||||||||||||||
Interest expense | (78 | ) | (29 | ) | (89 | ) | ||||||||||||
Restructuring costs | (192 | ) | (25 | ) | (301 | ) | ||||||||||||
Transaction and integration-related costs | (66 | ) | (53 | ) | (70 | ) | ||||||||||||
Amortization of acquired intangible assets | (169 | ) | (22 | ) | (120 | ) | ||||||||||||
Income (loss) before income taxes | $ | 387 | $ | (1 | ) | $ | (231 | ) | ||||||||||
Segment profit margins | ||||||||||||||||||
GBS | 16.4 | % | 10.1 | % | 11.1 | % | ||||||||||||
GIS | 14.9 | % | 7.9 | % | 4.7 | % | ||||||||||||
USPS | 15.4 | % | — | % | 10.1 | % | ||||||||||||
Segment Profit |
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Six Months Ended | ||||||||||||||||||
(in millions) | September 30, 2017 |
Historical CSC
|
Pro Forma
|
|||||||||||||||
Profit | ||||||||||||||||||
GBS profit | $ | 662 | $ | 215 | $ | 551 | ||||||||||||
GIS profit | 759 | 117 | 223 | |||||||||||||||
USPS profit | 186 | — | 149 | |||||||||||||||
All other profit (loss) | (52 | ) | (106 | ) | (321 | ) | ||||||||||||
Interest Income | 32 | 18 | 41 | |||||||||||||||
Interest expense | (154 | ) | (54 | ) | (177 | ) | ||||||||||||
Restructuring costs | (382 | ) | (82 | ) | (432 | ) | ||||||||||||
Transaction and integration-related costs | (190 | ) | (109 | ) | (156 | ) | ||||||||||||
Amortization of acquired intangible assets | (289 | ) | (36 | ) | (233 | ) | ||||||||||||
Pension and OPEB actuarial and settlement losses | — | — | (198 | ) | ||||||||||||||
Income (loss) before income taxes | $ | 572 | $ | (37 | ) | $ | (553 | ) | ||||||||||
Segment profit margins | ||||||||||||||||||
GBS | 14.5 | % | 10.3 | % | 11.4 | % | ||||||||||||
GIS | 12.4 | % | 6.8 | % | 3.4 | % | ||||||||||||
USPS | 13.4 | % | — | % | 10.8 | % | ||||||||||||
DXC Technology Delivers Strong Second Quarter Results with Growth in Earnings per Share, Margins, and Cash Flow
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We define segment profit as segment revenues less cost of services,
segment selling, general and administrative, and depreciation and
amortization (excluding amortization of acquired intangible assets). We
do not allocate to our 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 and integration-related costs and amortization of acquired
intangible assets. The following table presents our segment profit and
segment profit margins:
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