Debt

12 Months Ended

Mar. 31, 2021

The following is a summary of the Company's debt:


			As of
(in millions)	Interest Rates	Fiscal Year Maturities	March 31, 2021		March 31, 2020
Short-term debt and current maturities of long-term debt

Commercial paper(1)	(0.39)% - 0.44%	2022	$	213	$	542
Current maturities of long-term debt	Various	2022	556		290
Current maturities of finance lease liabilities	0.59% - 19.79%	2022	398		444
Short-term debt and current maturities of long-term debt			$	1,167	$	1,276

Long-term debt, net of current maturities
AUD term loan	0.94% - 0.96%	2022	—		489
GBP term loan	0.88% - 1.46%	2022	—		556
EUR term loan	0.65%	2022 - 2023	—		822
EUR term loan	0.80%(2)	2023 - 2024	469		821
USD term loan	1.40% - 2.24%	2025	—		480


$274 million Senior notes	4.45%	2023	154		276
$171 million Senior notes	4.45%	2023	165		172
$500 million Senior notes	4.25%	2025	504		505

$500 million Senior notes	4.13%	2026	496		—
£250 million Senior notes	2.75%	2025	343		307
€650 million Senior notes	1.75%	2026	760		709
$500 million Senior notes	4.75%	2028	506		507
$234 million Senior notes	7.45%	2030	268		271
Revolving credit facility	1.26% - 2.08%	2024 - 2025	—		1,500
Lease credit facility	1.15% - 1.99%	2022 - 2023	—		11
Finance lease liabilities	0.59% - 19.79%	2022 - 2027	894		1,046
Borrowings for assets acquired under long-term financing	0.00% - 6.39%	2022 - 2027	672		802
Mandatorily redeemable preferred stock outstanding	6.00%	2023	63		62
Other borrowings	Various	2022 - 2023	5		70
Long-term debt			5,299		9,406
Less: current maturities			954		734
Long-term debt, net of current maturities			$	4,345	$	8,672

(1)At DXC's option, DXC can borrow up to a maximum of €1 billion or its equivalent in €, £, and $.

(2) At DXC’s option, the EUR term loan bears interest at the Eurocurrency Rate for a one-, two-, three-, or six-month interest period, plus a

margin between 0.55% and 1.05%, based on published credit ratings of DXC.

Senior Notes and Term Loans

During the first quarter of fiscal 2021, the Company issued two senior notes with an aggregate principal of $1.0 billion consisting of (i) $500 million of 4.00% Senior Notes due fiscal 2024 and (ii) $500 million of 4.13% Senior Notes due fiscal 2026. The proceeds from these notes were applied towards the early prepayment of DXC's term loan facilities including prepayment of €500 million of Euro Term Loan due fiscal 2023, £150 million of GBP Term Loan due fiscal 2022, A$300 million of AUD Term Loan due fiscal 2022, and $100 million of USD Term Loan due fiscal 2025.

During the second quarter of fiscal 2021, the Company repaid the remaining £300 million GBP Term Loan due fiscal 2022.

During the third quarter of fiscal 2021, the Company used the proceeds from the sale of HHS Business to prepay approximately $1,441 million of term loan facilities detailed below under the heading "HHS Sale Use of Proceeds."

Interest on the Company's remaining term loan is payable monthly at DXC's election. The Company fully and unconditionally guarantees term loans issued by its 100% owned subsidiaries. The interest on the Company's senior notes is payable semi-annually in arrears except for interest on the £250 million Senior Notes due fiscal 2025 and the €650 million Senior Notes due fiscal 2026, which are payable annually in arrears. Generally, the Company's notes are redeemable at the Company's discretion at the then-applicable redemption premium plus accrued and unpaid interest.

During the fourth quarter of fiscal 2021, the Company repaid the $500 million of 4.00% Senior Notes due fiscal 2024 that was issued during the first quarter of fiscal 2021.

Tender Offers

On March 16, 2021, the Company announced the commencement of an offer (the "tender offers") to purchase for cash any and all of the Company's outstanding 4.45% Senior Notes due fiscal 2023 (the "DXC Notes") and any and all of the outstanding 4.45% Senior Notes due fiscal 2023 (the "CSC Notes) issued by its wholly owned subsidiary, Computer Sciences Corporation ("CSC"). On March 25, 2021, the Company settled the principal amount tendered of $121 million of the DXC Notes and $6 million of the CSC Notes. Refer to Form 8-K dated March 16, 2021 and March 23, 2021 for more information.

Revolving Credit Facility

During the first quarter of fiscal 2021, the Company borrowed the remaining $2.5 billion under the $4.0 billion credit facility agreement ("Credit Agreement") as a precautionary measure to increase its cash position and increase financial flexibility in light of continuing uncertainty in the global economy and financial capital markets resulting from COVID-19.

The Company repaid the full $4.0 billion during the first nine months of fiscal 2021, which became available under the revolving credit facility for redraw at the request of the Company.

HHS Sale Use of Proceeds

In October 2020, DXC sold the HHS business and used approximately $3.5 billion of the proceeds to prepay $1,250 million of Revolver Credit Facility, £600 million of GBP commercial paper (approximately $772 million), and the following term loan facilities: €350 million of Euro Term Loan due fiscal 2024 (approximately $410 million), $381 million of USD Term loan due fiscal 2025, A$500 million of AUD Term Loan due fiscal 2022 (approximately $358 million), and €250 million of Euro Term Loan due fiscal 2022 and 2023 (approximately $292 million).

Future Maturities of Long-term Debt

Expected maturities of long-term debt, including borrowings for asset financing but excluding minimum capital lease payments, for fiscal years subsequent to March 31, 2021, are as follows:


Fiscal Year	(in millions)
2022	$	555
2023	304
2024	615
2025	898
2026	1,278
Thereafter	756
Total	$	4,406