(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
, | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Exhibit No. | Description |
99.1 |
DXC TECHNOLOGY COMPANY | |||
Dated: | May 28, 2020 | By: | /s/ Paul N. Saleh |
Name: | Paul N. Saleh | ||
Title: | Executive Vice President and Chief Financial Officer |
Moved on Business Wire | |
May 28, 2020 |
• | Q4 earnings per share from continuing operations was $(13.79), including the cumulative impact of certain items of $(14.99) per share, reflecting goodwill impairment, restructuring costs, transaction, separation and integration-related costs, amortization of acquired intangible assets, pension and OPEB actuarial and settlement gains, and a tax adjustment |
• | Q4 non-GAAP earnings per share was $1.20 |
• | FY20 earnings per share from continuing operations was $(20.76), including the cumulative impact of certain items of $(26.34) |
• | FY20 non-GAAP earnings per share from continuing operations was $5.58 |
• | Q4 net cash from operating activities was $288 million and FY20 net cash from operating activities was $2,350 million |
• | Q4 adjusted free cash flow was $131 million and FY20 adjusted free cash flow was $1,341 million |
• | FY20 capital returned to shareholders was $214 million in dividends and $736 million in share repurchases |
• | Diluted earnings per share from continuing operations was $(13.79) in the fourth quarter, including $(0.01) per share of restructuring costs, $(0.28) per share of transaction, separation and integration-related costs, $(0.45) per share of amortization of acquired intangible assets, $(15.00) per share of goodwill impairment, $0.76 per share of pension and OPEB actuarial and settlement gains, and $0.02 per share of tax adjustment. This compares with $1.01 in the year ago period. |
• | Non-GAAP diluted earnings per share from continuing operations was $1.20. |
• | Revenue in the fourth quarter was $4,815 million compared with $5,280 million in the year ago period. |
• | Loss from continuing operations before income taxes was $(3,562) million for the fourth quarter, including $(4) million of restructuring costs, $(92) million of transaction, separation and integration-related costs, $(148) million of amortization of acquired intangibles, $(3,854) million of goodwill impairment, and $244 million of pension and OPEB actuarial and settlement gains. This compares with $354 million in the year ago period. |
• | Non-GAAP income from continuing operations before income taxes was $292 million compared with $778 million in the year ago period. |
• | Net loss was $(3,501) million for the fourth quarter, including $(2) million of restructuring costs, $(72) million of transaction, separation and integration-related costs, $(114) million of amortization of acquired intangibles, $(3,812) million of goodwill impairment, $193 million of pension and OPEB actuarial and settlement gains, and $6 million of tax adjustment. This compares with $271 million in the prior year period. |
• | Non-GAAP net income was $300 million. |
• | Adjusted EBIT was $352 million in the fourth quarter compared with $827 million in the prior year. Adjusted EBIT margin was 7.3% compared with 15.7% in the year ago quarter. |
• | Net cash provided by operating activities was $288 million in the fourth quarter, compared with $748 million in the year ago period. |
• | Adjusted free cash flow was $131 million in the fourth quarter. |
• | Diluted earnings per share from continuing operations was $(20.76) in fiscal 2020, including $(0.80) per share of restructuring costs, $(0.98) per share of transaction, separation and integration-related costs, $(1.73) per share of amortization of acquired intangible assets, $(25.78) per share of goodwill impairment, $2.43 per share of gain on arbitration award, $0.74 per share of pension and OPEB actuarial and settlement gains, and $(0.13) per share of tax adjustment. This compares with $4.35 in the year ago period. |
• | Non-GAAP diluted earnings per share from continuing operations was $5.58. |
• | Revenue in fiscal 2020 was $19,577 million compared with $20,753 million in the year ago period. |
• | Loss from continuing operations before income taxes was $(5,228) million for fiscal 2020, including $(252) million of restructuring costs, $(318) million of transaction, separation and integration-related costs, $(583) million of amortization of acquired intangibles, $(6,794) million of goodwill impairment, $632 million of gain on arbitration award, and $244 million of pension and OPEB actuarial and settlement gains. This compares with $1,515 million in the year ago period. |
• | Non-GAAP income from continuing operations before income taxes was $1,843 million compared with $3,063 million in the prior year. |
• | Net loss was $(5,358) million for fiscal 2020, including $(208) million of restructuring costs, $(255) million of transaction, separation and integration-related costs, $(450) million of amortization of acquired intangibles, $(6,699) million of goodwill impairment, 632 million of gain on arbitration award, $193 million of pension and OPEB actuarial and settlement gains, and $(33) million of tax adjustment. This compares with $1,262 million in the prior year period. |
• | Non-GAAP net income was $1,462 million. |
• | Adjusted EBIT was $2,061 million in fiscal 2020 compared with $3,269 million in the prior year. Adjusted EBIT margin was 10.5% compared with 15.8% in the prior year. |
• | Net cash provided by operating activities was $2,350 million in fiscal 2020, compared with $1,783 million in the prior year. |
• | Adjusted free cash flow was $1,341 million in fiscal 2020. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
(in millions, except per-share amounts) | March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | ||||||||||||
Revenues | $ | 4,815 | $ | 5,280 | $ | 19,577 | $ | 20,753 | ||||||||
Costs of services | 3,773 | 3,836 | 14,901 | 14,946 | ||||||||||||
Selling, general and administrative | 536 | 459 | 2,050 | 1,959 | ||||||||||||
Depreciation and amortization | 526 | 505 | 1,942 | 1,968 | ||||||||||||
Goodwill impairment losses | 3,854 | — | 6,794 | — | ||||||||||||
Restructuring costs | 4 | 47 | 252 | 465 | ||||||||||||
Interest expense | 95 | 85 | 383 | 334 | ||||||||||||
Interest income | (35 | ) | (36 | ) | (165 | ) | (128 | ) | ||||||||
Gain on arbitration award | — | — | (632 | ) | — | |||||||||||
Other (income) expense, net | (376 | ) | 30 | (720 | ) | (306 | ) | |||||||||
Total costs and expenses | 8,377 | 4,926 | 24,805 | 19,238 | ||||||||||||
(Loss) income from continuing operations, before taxes | (3,562 | ) | 354 | (5,228 | ) | 1,515 | ||||||||||
Income tax (benefit) expense | (61 | ) | 83 | 130 | 288 | |||||||||||
(Loss) income from continuing operations | (3,501 | ) | 271 | (5,358 | ) | 1,227 | ||||||||||
Income from discontinued operations, net of taxes | — | — | — | 35 | ||||||||||||
Net (loss) income | (3,501 | ) | 271 | (5,358 | ) | 1,262 | ||||||||||
Less: net (loss) income attributable to non-controlling interest, net of tax | (6 | ) | (3 | ) | 11 | 5 | ||||||||||
Net (loss) income attributable to DXC common stockholders | $ | (3,495 | ) | $ | 274 | $ | (5,369 | ) | $ | 1,257 | ||||||
(Loss) income per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (13.79 | ) | $ | 1.02 | $ | (20.76 | ) | $ | 4.40 | ||||||
Discontinued operations | — | — | — | 0.13 | ||||||||||||
$ | (13.79 | ) | $ | 1.02 | $ | (20.76 | ) | $ | 4.53 | |||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (13.79 | ) | $ | 1.01 | $ | (20.76 | ) | $ | 4.35 | ||||||
Discontinued operations | — | — | — | 0.12 | ||||||||||||
$ | (13.79 | ) | $ | 1.01 | $ | (20.76 | ) | $ | 4.47 | |||||||
Cash dividend per common share | $ | 0.21 | $ | 0.19 | $ | 0.84 | $ | 0.76 | ||||||||
Weighted average common shares outstanding for: | ||||||||||||||||
Basic EPS | 253.51 | 268.59 | 258.57 | 277.54 | ||||||||||||
Diluted EPS | 253.51 | 270.82 | 258.57 | 281.43 |
As of | ||||||||
(in millions) | March 31, 2020 | March 31, 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 3,679 | $ | 2,899 | ||||
Receivables, net | 4,392 | 5,181 | ||||||
Prepaid expenses | 646 | 627 | ||||||
Other current assets | 270 | 359 | ||||||
Total current assets | 8,987 | 9,066 | ||||||
Intangible assets, net | 5,731 | 5,939 | ||||||
Operating right-of-use assets, net | 1,428 | — | ||||||
Goodwill | 2,017 | 7,606 | ||||||
Deferred income taxes, net | 265 | 355 | ||||||
Property and equipment, net | 3,547 | 3,179 | ||||||
Other assets | 4,031 | 3,429 | ||||||
Total Assets | $ | 26,006 | $ | 29,574 | ||||
Liabilities | ||||||||
Short-term debt and current maturities of long-term debt | $ | 1,276 | $ | 1,942 | ||||
Accounts payable | 1,598 | 1,666 | ||||||
Accrued payroll and related costs | 630 | 652 | ||||||
Current operating lease liabilities | 482 | — | ||||||
Accrued expenses and other current liabilities | 2,801 | 3,355 | ||||||
Deferred revenue and advance contract payments | 1,021 | 1,630 | ||||||
Income taxes payable | 87 | 208 | ||||||
Total current liabilities | 7,895 | 9,453 | ||||||
Long-term debt, net of current maturities | 8,672 | 5,470 | ||||||
Non-current deferred revenue | 735 | 256 | ||||||
Non-current operating lease liabilities | 1,063 | — | ||||||
Non-current pension obligations | 761 | 790 | ||||||
Non-current income tax liabilities and deferred tax liabilities | 1,157 | 1,184 | ||||||
Other long-term liabilities | 594 | 696 | ||||||
Total Liabilities | 20,877 | 17,849 | ||||||
Total Equity | 5,129 | 11,725 | ||||||
Total Liabilities and Equity | $ | 26,006 | $ | 29,574 |
Twelve Months Ended | ||||||||
(in millions) | March 31, 2020 | March 31, 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (5,358 | ) | $ | 1,262 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,960 | 2,023 | ||||||
Goodwill impairment losses | 6,794 | — | ||||||
Operating right-of-use expense | 698 | — | ||||||
Pension & other post-employment benefits, actuarial & settlement (gains) losses | (244 | ) | 143 | |||||
Share-based compensation | 68 | 74 | ||||||
Deferred taxes | (56 | ) | 97 | |||||
Loss (gain) on dispositions | 1 | (163 | ) | |||||
Provision for losses on accounts receivable | 3 | (10 | ) | |||||
Unrealized foreign currency exchange losses | 24 | 30 | ||||||
Impairment losses and contract write-offs | 30 | — | ||||||
Amortization of debt issuance costs and (premium) discount | (4 | ) | (10 | ) | ||||
Cash surrender value in excess of premiums paid | (12 | ) | (11 | ) | ||||
Other non-cash charges, net | — | 11 | ||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||
Decrease (increase) in receivables | 269 | (947 | ) | |||||
Increase in prepaid expenses and other current assets | (229 | ) | (632 | ) | ||||
Decrease in accounts payable and accruals | (565 | ) | (52 | ) | ||||
Decrease in income taxes payable and income tax liability | (197 | ) | (107 | ) | ||||
Decrease in operating lease liability | (698 | ) | — | |||||
(Decrease) increase in advance contract payments and deferred revenue | (146 | ) | (74 | ) | ||||
Other operating activities, net | 12 | 149 | ||||||
Net cash provided by operating activities | 2,350 | 1,783 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (350 | ) | (297 | ) | ||||
Payments for transition and transformation contract costs | (281 | ) | (394 | ) | ||||
Software purchased and developed | (235 | ) | (261 | ) | ||||
Payments for acquisitions, net of cash acquired | (1,997 | ) | (365 | ) | ||||
Business dispositions | — | (65 | ) | |||||
Cash collections related to deferred purchase price receivable | 671 | 1,084 | ||||||
Proceeds from sale of assets | 73 | 357 | ||||||
Short-term investing | (75 | ) | — | |||||
Proceeds from short-term investing | 38 | — | ||||||
Other investing activities, net | 19 | 10 | ||||||
Net cash (used in) provided by investing activities | (2,137 | ) | 69 | |||||
Cash flows from financing activities: | ||||||||
Borrowings of commercial paper | 4,939 | 2,747 | ||||||
Repayments of commercial paper | (5,076 | ) | (2,840 | ) | ||||
Borrowings under lines of credit | 1,500 | — | ||||||
Borrowings on long-term debt, net of discount | 2,198 | 1,646 | ||||||
Principal payments on long-term debt | (1,039 | ) | (2,625 | ) | ||||
Payments on finance leases and borrowings for asset financing | (865 | ) | (944 | ) | ||||
Borrowings for USPS spin transaction | — | 1,114 | ||||||
Proceeds from bond issuance | — | 753 | ||||||
Proceeds from stock options and other common stock transactions | 11 | 47 | ||||||
Taxes paid related to net share settlements of share-based compensation awards | (16 | ) | (54 | ) | ||||
Repurchase of common stock and advance payment for accelerated share repurchase | (736 | ) | (1,344 | ) | ||||
Dividend payments | (214 | ) | (210 | ) | ||||
Other financing activities, net | (45 | ) | 47 | |||||
Net cash provided by (used in) financing activities | 657 | (1,663 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (90 | ) | (19 | ) | ||||
Net increase in cash and cash equivalents | 780 | 170 | ||||||
Cash and cash equivalents at beginning of year | 2,899 | 2,729 | ||||||
Cash and cash equivalents at end of year | $ | 3,679 | $ | 2,899 |
Segment Revenue | ||||||||||||||
Three Months Ended | ||||||||||||||
(in millions) | March 31, 2020 | March 31, 2019 | % Change | % Change in Constant Currency | ||||||||||
GBS | $ | 2,308 | $ | 2,191 | 5.3 | % | 7.3 | % | ||||||
GIS | 2,507 | 3,089 | (18.8 | )% | (16.9 | )% | ||||||||
Total Revenues | $ | 4,815 | $ | 5,280 | (8.8 | )% | (6.9 | )% |
Segment Revenue | ||||||||||||||
Twelve Months Ended | ||||||||||||||
(in millions) | March 31, 2020 | March 31, 2019 | % Change | % Change in Constant Currency | ||||||||||
GBS | $ | 9,111 | $ | 8,684 | 4.9 | % | 7.0 | % | ||||||
GIS | 10,466 | 12,069 | (13.3 | )% | (11.1 | )% | ||||||||
Total Revenues | $ | 19,577 | $ | 20,753 | (5.7 | )% | (3.5 | )% |
Segment Profit | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
(in millions) | March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | ||||||||||||
GBS profit | $ | 223 | $ | 447 | $ | 1,301 | $ | 1,645 | ||||||||
GIS profit | 192 | 436 | 1,007 | 1,911 | ||||||||||||
All other loss | (63 | ) | (56 | ) | (247 | ) | (287 | ) | ||||||||
Interest income | 35 | 36 | 165 | 128 | ||||||||||||
Interest expense | (95 | ) | (85 | ) | (383 | ) | (334 | ) | ||||||||
Restructuring costs | (4 | ) | (47 | ) | (252 | ) | (465 | ) | ||||||||
Transaction, separation and integration-related costs | (92 | ) | (96 | ) | (318 | ) | (401 | ) | ||||||||
Amortization of acquired intangibles | (148 | ) | (138 | ) | (583 | ) | (539 | ) | ||||||||
Goodwill impairment losses | (3,854 | ) | — | (6,794 | ) | — | ||||||||||
Gain on arbitration award | — | — | 632 | — | ||||||||||||
Pension and OPEB actuarial and settlement gains (losses) | 244 | (143 | ) | 244 | (143 | ) | ||||||||||
(Loss) income from continuing operations before taxes | $ | (3,562 | ) | $ | 354 | $ | (5,228 | ) | $ | 1,515 | ||||||
Segment profit margins | ||||||||||||||||
GBS | 9.7 | % | 20.4 | % | 14.3 | % | 18.9 | % | ||||||||
GIS | 7.7 | % | 14.1 | % | 9.6 | % | 15.8 | % |
• | Restructuring costs - reflects restructuring costs, net of reversals, related to workforce optimization and real estate charges. |
• | Transaction, separation and integration-related costs - reflects costs related to integration planning, financing, and advisory fees associated with the HPES merger and other acquisitions and costs related to the separation of USPS. |
• | Amortization of acquired intangible assets - reflects amortization of intangible assets acquired through business combinations. |
• | Goodwill impairment losses - reflects impairment losses on goodwill. |
• | Gain on arbitration award - reflects a gain related to the HPES merger arbitration award. |
• | Pension and OPEB actuarial and settlement gains and losses - reflects pension and OPEB actuarial and settlement gains and losses. |
• | Tax adjustment - Fiscal 2020 includes the impact of an adjustment to the Transition Tax and tax liabilities related to prior restructuring charges. Fiscal 2019 reflects the estimated non-recurring benefit of the Tax Cuts and Jobs Act of 2017. Fiscal 2018 reflects the application of an approximate 28% tax rate, which is within the targeted effective tax rate range for fiscal year 2018. Income tax expense of other non-GAAP adjustments is computed by applying the jurisdictional tax rate to the pre-tax adjustments on a jurisdictional basis. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
(in millions) | March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | ||||||||||||
Net (loss) income | $ | (3,501 | ) | $ | 271 | $ | (5,358 | ) | $ | 1,262 | ||||||
Income from discontinued operations, net of taxes | — | — | — | (35 | ) | |||||||||||
Income tax (benefit) expense | (61 | ) | 83 | 130 | 288 | |||||||||||
Interest income | (35 | ) | (36 | ) | (165 | ) | (128 | ) | ||||||||
Interest expense | 95 | 85 | 383 | 334 | ||||||||||||
EBIT | (3,502 | ) | 403 | (5,010 | ) | 1,721 | ||||||||||
Restructuring costs | 4 | 47 | 252 | 465 | ||||||||||||
Transaction, separation and integration-related costs | 92 | 96 | 318 | 401 | ||||||||||||
Amortization of acquired intangible assets | 148 | 138 | 583 | 539 | ||||||||||||
Goodwill impairment losses | 3,854 | — | 6,794 | — | ||||||||||||
Gain on arbitration award | — | — | (632 | ) | — | |||||||||||
Pension and OPEB actuarial and settlement (gains) losses | (244 | ) | 143 | (244 | ) | 143 | ||||||||||
Adjusted EBIT | $ | 352 | $ | 827 | $ | 2,061 | $ | 3,269 | ||||||||
Adjusted EBIT margin | 7.3 | % | 15.7 | % | 10.5 | % | 15.8 | % | ||||||||
EBIT margin | (72.7 | )% | 7.6 | % | (25.6 | )% | 8.3 | % |
Three Months Ended | Twelve Months Ended | |||||||
(in millions) | March 31, 2020 | March 31, 2020 | ||||||
Net cash provided by operating activities | $ | 288 | $ | 2,350 | ||||
Net cash used in investing activities (1) | (53 | ) | (2,100 | ) | ||||
Acquisitions, net of cash acquired | — | 1,997 | ||||||
Payments on capital leases and other long-term asset financings | (219 | ) | (865 | ) | ||||
Payments on transaction, separation and integration-related costs | 54 | 257 | ||||||
Payments on restructuring costs | 61 | 334 | ||||||
Gain on arbitration award | — | (632 | ) | |||||
Adjusted free cash flow | $ | 131 | $ | 1,341 |
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Goodwill Impairment Losses | Pension and OPEB Actuarial and Settlement Gains | Tax Adjustment | Non-GAAP Results | ||||||||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 3,773 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,773 | ||||||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 536 | — | (92 | ) | — | — | — | — | 444 | |||||||||||||||||||||||
(Loss) income from continuing operations, before taxes | $ | (3,562 | ) | $ | 4 | $ | 92 | $ | 148 | $ | 3,854 | $ | (244 | ) | $ | — | $ | 292 | ||||||||||||||
Income tax (benefit) expense | (61 | ) | 2 | 20 | 34 | 42 | (51 | ) | 6 | (8 | ) | |||||||||||||||||||||
Net (loss) income | $ | (3,501 | ) | $ | 2 | $ | 72 | $ | 114 | $ | 3,812 | $ | (193 | ) | $ | (6 | ) | $ | 300 | |||||||||||||
Less: net loss attributable to noncontrolling interest, net of tax | (6 | ) | — | — | — | — | — | — | (6 | ) | ||||||||||||||||||||||
Net (loss) income attributable to DXC common stockholders | $ | (3,495 | ) | $ | 2 | $ | 72 | $ | 114 | $ | 3,812 | $ | (193 | ) | $ | (6 | ) | $ | 306 | |||||||||||||
Effective tax rate | 1.7 | % | (2.7 | )% | ||||||||||||||||||||||||||||
Basic EPS | $ | (13.79 | ) | $ | 0.01 | $ | 0.28 | $ | 0.45 | $ | 15.04 | $ | (0.76 | ) | $ | (0.02 | ) | $ | 1.21 | |||||||||||||
Diluted EPS | $ | (13.79 | ) | $ | 0.01 | $ | 0.28 | $ | 0.45 | $ | 15.00 | $ | (0.76 | ) | $ | (0.02 | ) | $ | 1.20 | |||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||
Basic EPS | 253.51 | 253.51 | 253.51 | 253.51 | 253.51 | 253.51 | 253.51 | 253.51 | ||||||||||||||||||||||||
Diluted EPS | 253.51 | 254.14 | 254.14 | 254.14 | 254.14 | 254.14 | 254.14 | 254.14 |
Twelve Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Goodwill Impairment Losses | Gain on Arbitration Award | Pension and OPEB Actuarial and Settlement Gains | Tax Adjustment | Non-GAAP Results | |||||||||||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 14,901 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,901 | ||||||||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 2,050 | — | (318 | ) | — | — | — | — | — | 1,732 | ||||||||||||||||||||||||||
(Loss) income from continuing operations, before taxes | $ | (5,228 | ) | $ | 252 | $ | 318 | $ | 583 | $ | 6,794 | $ | (632 | ) | $ | (244 | ) | $ | — | $ | 1,843 | |||||||||||||||
Income tax expense (benefit) | 130 | 44 | 63 | 133 | 95 | — | (51 | ) | (33 | ) | 381 | |||||||||||||||||||||||||
Net (loss) income | $ | (5,358 | ) | $ | 208 | $ | 255 | $ | 450 | $ | 6,699 | $ | (632 | ) | $ | (193 | ) | $ | 33 | $ | 1,462 | |||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | 11 | — | — | — | — | — | — | — | 11 | |||||||||||||||||||||||||||
Net (loss) income attributable to DXC common stockholders | $ | (5,369 | ) | $ | 208 | $ | 255 | $ | 450 | $ | 6,699 | $ | (632 | ) | $ | (193 | ) | $ | 33 | $ | 1,451 | |||||||||||||||
Effective tax rate | (2.5 | )% | 20.7 | % | ||||||||||||||||||||||||||||||||
Basic EPS | $ | (20.76 | ) | $ | 0.80 | $ | 0.99 | $ | 1.74 | $ | 25.91 | $ | (2.44 | ) | $ | (0.75 | ) | $ | 0.13 | $ | 5.61 | |||||||||||||||
Diluted EPS | $ | (20.76 | ) | $ | 0.80 | $ | 0.98 | $ | 1.73 | $ | 25.78 | $ | (2.43 | ) | $ | (0.74 | ) | $ | 0.13 | $ | 5.58 | |||||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||
Basic EPS | 258.57 | 258.57 | 258.57 | 258.57 | 258.57 | 258.57 | 258.57 | 258.57 | 258.57 | |||||||||||||||||||||||||||
Diluted EPS | 258.57 | 259.81 | 259.81 | 259.81 | 259.81 | 259.81 | 259.81 | 259.81 | 259.81 |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Pension and OPEB Actuarial and Settlement Losses | Non-GAAP Results | ||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 3,836 | $ | — | $ | — | $ | — | $ | — | $ | 3,836 | ||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 459 | — | (96 | ) | — | — | 363 | |||||||||||||||||
Income from continuing operations, before taxes | $ | 354 | $ | 47 | $ | 96 | $ | 138 | $ | 143 | $ | 778 | ||||||||||||
Income tax expense | 83 | 12 | 30 | 37 | 27 | 189 | ||||||||||||||||||
Income from continuing operations | $ | 271 | $ | 35 | $ | 66 | $ | 101 | $ | 116 | $ | 589 | ||||||||||||
Income from discontinued operations, net of taxes | — | — | — | — | — | — | ||||||||||||||||||
Net income | $ | 271 | $ | 35 | $ | 66 | $ | 101 | $ | 116 | $ | 589 | ||||||||||||
Less: net loss attributable to noncontrolling interest, net of tax | (3 | ) | — | — | — | — | (3 | ) | ||||||||||||||||
Net income attributable to DXC common stockholders | $ | 274 | $ | 35 | $ | 66 | $ | 101 | $ | 116 | $ | 592 | ||||||||||||
Effective tax rate | 23.4 | % | 24.3 | % | ||||||||||||||||||||
Basic EPS | $ | 1.02 | $ | 0.13 | $ | 0.25 | $ | 0.38 | $ | 0.43 | $ | 2.20 | ||||||||||||
Diluted EPS | $ | 1.01 | $ | 0.13 | $ | 0.24 | $ | 0.37 | $ | 0.43 | $ | 2.19 | ||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||
Basic EPS | 268.59 | 268.59 | 268.59 | 268.59 | 268.59 | 268.59 | ||||||||||||||||||
Diluted EPS | 270.82 | 270.82 | 270.82 | 270.82 | 270.82 | 270.82 |
Twelve Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Pension and OPEB Actuarial and Settlement Losses | Tax Adjustment | Non-GAAP Results | |||||||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) | $ | 14,946 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,946 | ||||||||||||||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 1,959 | — | (401 | ) | — | — | — | 1,558 | ||||||||||||||||||||
Income from continuing operations, before taxes | $ | 1,515 | $ | 465 | $ | 401 | $ | 539 | $ | 143 | $ | — | $ | 3,063 | ||||||||||||||
Income tax expense | 288 | 112 | 102 | 138 | 27 | 44 | 711 | |||||||||||||||||||||
Income from continuing operations | $ | 1,227 | $ | 353 | $ | 299 | $ | 401 | $ | 116 | $ | (44 | ) | $ | 2,352 | |||||||||||||
Income from discontinued operations, net of taxes | 35 | — | — | — | — | — | 35 | |||||||||||||||||||||
Net income | $ | 1,262 | $ | 353 | $ | 299 | $ | 401 | $ | 116 | $ | (44 | ) | $ | 2,387 | |||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | 5 | — | — | — | — | — | 5 | |||||||||||||||||||||
Net income attributable to DXC common stockholders | $ | 1,257 | $ | 353 | $ | 299 | $ | 401 | $ | 116 | $ | (44 | ) | $ | 2,382 | |||||||||||||
Effective Tax Rate | 19.0 | % | 23.2 | % | ||||||||||||||||||||||||
Basic EPS | $ | 4.40 | $ | 1.27 | $ | 1.08 | $ | 1.44 | $ | 0.42 | $ | (0.16 | ) | $ | 8.46 | |||||||||||||
Diluted EPS | $ | 4.35 | $ | 1.25 | $ | 1.06 | $ | 1.42 | $ | 0.41 | $ | (0.16 | ) | $ | 8.34 | |||||||||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||
Basic EPS | 277.54 | 277.54 | 277.54 | 277.54 | 277.54 | 277.54 | 277.54 | |||||||||||||||||||||
Diluted EPS | 281.43 | 281.43 | 281.43 | 281.43 | 281.43 | 281.43 | 281.43 |
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