Restructuring Costs

9 Months Ended

Dec. 31, 2021

The Company recorded restructuring costs of $36 million and $104 million, net of reversals, for the three months ended December 31, 2021 and December 31, 2020, respectively. For the nine months ended December 31, 2021 and December 31, 2020, the Company recorded restructuring costs of $248 million and $441 million, net of reversals, respectively. The costs recorded during the three and nine months ended December 31, 2021 were largely a result of the Fiscal 2022 Plan (defined below).

The composition of restructuring liabilities by financial statement line item is as follows:


	As of
(in millions)	December 31, 2021
Accrued expenses and other current liabilities	$	143
Other long-term liabilities	44
Total	$	187

Summary of Restructuring Plans

Fiscal 2022 Plan

During fiscal 2022, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2022 Plan”). Also included in restructuring costs for the nine months ended December 31, 2021 is $12 million related to amortization of right-of-use assets and interest expense for leased facilities that we have vacated but that are being actively marketed for sublease, or we are in negotiations with the landlord to potentially terminate or modify those leases.

Fiscal 2021 Plan

During fiscal 2021, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2021 Plan”). The Fiscal 2021 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2021 Plan total $544 million, comprising $501 million in employee severance and $43 million of facilities costs.

Fiscal 2020 Plan

During fiscal 2020, management approved cost savings initiatives designed to reduce operating costs by re-balancing its workforce and facilities structures (the “Fiscal 2020 Plan”). The Fiscal 2020 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2020 Plan total $295 million, comprising $278 million in employee severance and $17 million of facilities costs.

Other Prior Year Plans

In June 2017, management approved a post-HPES Merger restructuring plan to optimize the Company’s operations in response to a continuing business contraction. Other prior year plans focus mainly on optimizing specific aspects of the global workforce, increasing the proportion of work performed in low-cost offshore locations and re-balancing the organizational structure. Additionally, these plans included global facility restructuring, including a global data center restructuring program. Costs incurred to date under other prior year plans total $1,478 million, comprising $1,140 million in employee severance and $338 million of facilities costs.

Acquired Restructuring Liabilities

As a result of the merger of Computer Sciences Corporation (“CSC”) and HPES (“HPES Merger”), DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors.

Restructuring Liability Reconciliations by Plan


	Restructuring Liability as of March 31, 2021		Costs Expensed, Net of Reversals		Costs Not Affecting Restructuring Liability(1)		Cash Paid		Other(2)		Restructuring Liability as of December 31, 2021
Fiscal 2022 Plan
Workforce Reductions	$	—	$	181	$	2	$	(91)	$	(3)	$	89
Facilities Costs	—		65		(42)		(20)		2		5
	—		246		(40)		(111)		(1)		94

Fiscal 2021 Plan
Workforce Reductions	180		—		—		(127)		(2)		51
Facilities Costs	3		6		(6)		(1)		(1)		1
	183		6		(6)		(128)		(3)		52

Fiscal 2020 Plan
Workforce Reductions	27		(1)		—		(14)		(1)		11
Facilities Costs	—		—		—		—		—		—
	27		(1)		—		(14)		(1)		11

Other Prior Year Plans
Workforce Reductions	19		1		—		(15)		1		6
Facilities Costs	6		—		—		(4)		—		2
	25		1		—		(19)		1		8

Acquired Liabilities
Workforce Reductions	34		(4)		—		(6)		(2)		22
Facilities Costs	1		—		—		(1)		—		—
	35		(4)		—		(7)		(2)		22
Total	$	270	$	248	$	(46)	$	(279)	$	(6)	$	187

(1) Pension benefit augmentations recorded as a pension liability, asset impairments and restructuring costs associated with right-of-use assets.

(2) Foreign currency translation adjustments.