EX-12.1 11 fy1810-kex121v2.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1



DXC TECHNOLOGY COMPANY

Calculation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(unaudited)

 
 
 
Fiscal Years Ended (a)
(in millions, except ratios)
 
March 31, 2018
 
March 31, 2017
 
April 1, 2016
 
April 3, 2015
 
March 28, 2014
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations before adjustment for income or loss from equity investees
 
$
1,671

 
$
(174
)
 
$
10

 
$
(671
)
 
$
694

 
Fixed charges
 
615

 
166

 
271

 
172

 
193

 
Less: Preference security dividend requirements of consolidated subsidiaries
 
(2
)
 
(1
)
 
(2
)
 
(3
)
 
(2
)
 
Earnings as adjusted
 
$
2,284

 
$
(9
)
 
$
279

 
$
(502
)
 
$
885

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
 
$
335

 
$
117

 
$
123

 
$
126

 
$
128

 
Loss on early extinguishment of debt(c)
 
—

 
—

 
97

 
—

 
—

 
Portion of rental expense representative of the interest factor (c)
 
280

 
49

 
51

 
46

 
65

 
Fixed Charges
 
$
615

 
$
166

 
$
271

 
$
172

 
$
193

 
 
 
 
 
 
 
 
 
 
 
 
Combined fixed charges and preference dividends:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
 
$
335

 
$
117

 
$
123

 
$
126

 
$
128

 
Loss on early extinguishment of debt(c)
 
—

 
—

 
97

 
—

 
—

 
Portion of rental expense representative of the interest factor (c)
 
280

 
49

 
51

 
46

 
65

 
Preference security dividend requirements of consolidated subsidiaries
 
2

 
1

 
2

 
3

 
2

 
Combined fixed charges and preference dividends
 
$
617

 
$
167

 
$
273

 
$
175

 
$
195

 
 
 
 
 
 
 
 
 
 
 
 
Ratios:
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
3.7

 
—

(e) 
1.0

 
—

(g) 
4.6

 
Ratio of earnings to combined fixed charges and preference dividends
 
3.7

 
—

(f) 
1.0

 
—

(h) 
4.5



(a)
The ratios presented are for (i) DXC for fiscal 2018 and (ii) CSC for fiscal 2017 and each preceding fiscal year.
(b)
Interest expense includes amortization of debt discount and deferred loan costs.
(c)
The fiscal 2016 loss on early extinguishment of debt is related to the Company's redemption of all outstanding 6.50% term notes due March 2018.
(d)
One-third of the rent expense is the portion of rental expense deemed representative of the interest factor.
(e)
Earnings were insufficient to cover fixed charges during fiscal 2017 by $175 million.
(f)
Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2017 by $176 million.
(g)
Earnings were insufficient to cover fixed charges during fiscal 2015 by $674 million.
(h)
Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2015 by $677 million.