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Goodwill
 9 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of December 31, 2019.

(in millions)
 
GBS
 
GIS
 
Total
Goodwill, gross
 
$
5,300

 
$
5,068

 
$
10,368

Accumulated impairment losses
 
(701
)
 
(2,061
)
 
(2,762
)
Balance as of March 31, 2019, net
 
$
4,599

 
$
3,007

 
$
7,606


 
 
 
 
 
 
Acquisitions
 
1,271

 
65

 
1,336

Foreign currency translation
 
1

 
—

 
1

Impairment losses(1)
 
(2,675
)
 
(265
)
 
(2,940
)
 
 
 
 
 
 
 
Goodwill, gross
 
6,572

 
5,133

 
11,705

Accumulated impairment losses
 
(3,376
)
 
(2,326
)
 
(5,702
)
Balance as of December 31, 2019, net
 
$
3,196

 
$
2,807

 
$
6,003

        

(1) While preparing the fiscal 2020 third quarter financial statements, DXC recorded out-of-period corrections for previously unrecognized tax effects on tax deductible goodwill balances impaired during the fiscal 2020 second quarter. As a result, the balance sheet at December 31, 2019 includes reclassifications to reduce goodwill and increase deferred income taxes by $53 million. The income statement for the fiscal 2020 third quarter includes reclassifications that increase goodwill impairment losses and increase income tax benefit by $53 million. Based on an analysis of quantitative and qualitative factors, DXC determined that the out-of-period corrections are immaterial to the prior reporting periods affected.

The additions to goodwill were due to the acquisitions described in Note 3 - "Acquisitions" including goodwill of some insignificant acquisitions. The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances.

Goodwill Impairment Analyses

The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

The Company performed its annual goodwill impairment assessment as of July 1, 2019. Subsequent to the measurement date, the Company experienced a decline in its stock price and market capitalization that represented an indicator of impairment as the observed declines were substantial and sustained. As a result, the Company performed a quantitative goodwill impairment test for all of its reporting units, consistent with its policy described in Note 1 - "Summary of Significant Accounting Policies.” As part of the reconciliation to the Company’s market capitalization, the Company concluded that the carrying values of its reporting units exceeded their estimated fair values and recognized a non-cash impairment charge of $2,940 million, consisting of $2,675 million and $265 million in its GBS and GIS segments, respectively. Further declines in DXC’s share price or other impairment indicators could result in additional impairment charges in the future. The goodwill impairment charge does not have an impact on the calculation of the Company's financial covenants under the Company's debt arrangements.