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, 2019		March 31, 2018 ⁽¹⁾		March 31, 2017 ⁽¹⁾
United States	$	7,677	$	8,015	$	2,986
United Kingdom	3,175		3,392		1,482
Australia	1,582		1,694		921
Other Europe	5,294		5,409		1,594
Other International	3,025		3,223		624
Total Revenues	$	20,753	$	21,733	$	7,607


⁽¹⁾	Prior period amounts have not been recast under the modified retrospective transition method.

The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 18 - "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, 2019, approximately $28.9 billion of revenue is expected to be recognized from remaining performance obligations. The Company expects to recognize revenue on approximately 40% of these remaining performance obligations in Fiscal 2020, 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)	March 31, 2019		April 1, 2018
Trade receivables, net	$	3,232	$	3,937
Contract assets	$	390	$	444
Contract liabilities	$	1,886	$	2,053

Change in contract liabilities were as follows:



(in millions)	Twelve Months Ended March 31, 2019
ASC 605 Balance, beginning of period	$	2,434
Adjustment related to Topic 606 adoption	(381		)
ASC 606 Balance, beginning of period	2,053
Deferred revenue	2,681
Recognition of deferred revenue	(2,664		)
Currency translation adjustment	(167		)
Other	(17		)
Balance, end of period	$	1,886

The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract:



(in millions)	As of March 31, 2019
Capitalized sales commission cost ⁽¹⁾	$	228
Transition and transformation contract costs, net ⁽²⁾	$	966


⁽¹⁾	Capitalized sales commission costs are included within other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019, amortization expense of $62 million related to the capitalized sales commission assets is 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 that are classified as other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019, amortization expense of $258 million is included within depreciation and amortization in the accompanying statements of operations.

Financial Statement Impact

The impact of adoption of ASC 606 on the selected captions of the Company's statements of operations and balance sheets was as follows:



Statement of Operations (Selected Captions)
	Twelve Months Ended March 31, 2019
(in millions)	As Reported			Amounts Without Adoption of ASC 606			Effect of Change Higher/(Lower)
Revenues	$	20,753		$	20,723		$	30
Costs of services	$	14,946		$	14,944		$	2
Selling, general and administrative	$	1,959		$	2,032		$	(73	)
Interest income	$	(128	)	$	(141	)	$	(13	)
Income tax expense	$	288		$	266		$	22
Net income attributable to DXC common stockholders	$	1,257		$	1,191		$	66



Balance Sheet (Selected Captions)
	As of March 31, 2019
(in millions)	As Reported			Amounts Without Adoption of ASC 606			Effect of Change Higher/(Lower)
Assets:
Receivables and contract assets, net of allowance for doubtful accounts	$	5,181		$	5,199		$	(18	)
Other current assets	$	359		$	411		$	(52	)
Deferred income taxes, net	$	355		$	376		$	(21	)
Other assets	$	3,429		$	3,451		$	(22	)

Liabilities:
Accrued expenses and other current liabilities	$	3,355		$	3,356		$	(1	)
Deferred revenue and advance contract payments	$	1,630		$	1,717		$	(87	)
Income taxes payable	$	208		$	206		$	2
Non-current deferred revenue	$	256		$	491		$	(235	)
Non-current income tax liabilities and deferred tax liabilities	$	1,184		$	1,148		$	36

Equity:
Retained earnings	$	478		$	301		$	177
Accumulated other comprehensive loss	$	(244	)	$	(239	)	$	(5	)

The adoption of ASC 606 did not materially impact the statement of cash flows.