Segment Information

9 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. DXC’s chief operating decision maker (“CODM”), the chief executive officer, obtains, reviews, and manages the Company’s financial performance based on these segments. The CODM uses these results, in part, to evaluate the performance of, and allocate resources to, each of the segments.

Global Business Services (“GBS”)

GBS provides innovative technology solutions that help its customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. GBS offerings include:

•Analytics and Engineering. Our portfolio of analytics services and extensive partner ecosystem help customers gain rapid insights, automate operations, and accelerate their transformation journeys. We provide software engineering and solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

•Applications. We use advanced technologies and methods to accelerate the creation, modernization, delivery and maintenance of high-quality, secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership, across industries. Our vertical-specific IP includes solutions for insurance, banking and capital markets, and automotive among others.

•Business Process Services. Includes integration and optimization of front and back office processes, and agile process automation. This helps companies to reduce cost and minimize business disruption, human error, and operational risk while improving customer experiences.

Global Infrastructure Services (“GIS”)

GIS provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. GIS offerings include:

•Cloud and Security. We help customers to rapidly modernize by adapting legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments. Our security solutions help predict attacks, proactively respond to threats, ensure compliance and protect data, applications and infrastructure.

•IT Outsourcing (“ITO”). Our ITO services support infrastructure, applications, and workplace IT operations, including hardware, software, physical/virtual end-user devices, collaboration tools, and IT support services. We help customers securely optimize operations to ensure continuity of their systems and respond to new business and workplace demands while achieving cost takeout, all with limited resources, expertise, and budget.

•Modern Workplace. Services to fit our customer’s employee, business and IT needs, from intelligent collaboration, modern device management, digital support services, Internet of Things (“IoT”) and mobility services, providing a consumer-like, digital experience.

Segment Measures

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Total
Three Months Ended December 31, 2021
Revenues	$	1,946	$	2,143	$	4,089	$	—	$	4,089
Segment profit	$	315	$	102	$	417	$	(62)	$	355
Depreciation and amortization(1)	$	39	$	252	$	291	$	27	$	318
Three Months Ended December 31, 2020
Revenues	$	1,921	$	2,367	$	4,288	$	—	$	4,288
Segment profit	$	273	$	88	$	361	$	(61)	$	300
Depreciation and amortization(1)	$	53	$	281	$	334	$	27	$	361

(in millions)	GBS		GIS		Total Reportable Segments		All Other		Total
Nine Months Ended December 31, 2021
Revenues	$	5,706	$	6,551	$	12,257	$	—	$	12,257
Segment profit	$	885	$	351	$	1,236	$	(203)	$	1,033
Depreciation and amortization(1)	$	130	$	755	$	885	$	84	$	969
Nine Months Ended December 31, 2020
Revenues	$	6,337	$	7,007	$	13,344	$	—	$	13,344
Segment profit	$	805	$	147	$	952	$	(179)	$	773
Depreciation and amortization(1)	$	162	$	839	$	1,001	$	77	$	1,078

(1) Depreciation and amortization, as presented excludes amortization of acquired intangible assets of $106 million and $114 million for the three months ended December 31, 2021 and 2020, respectively, and $325 million and $414 million for the nine months ended December 31, 2021 and 2020, respectively.

Reconciliation of Reportable Segment Profit to Consolidated Total

The Company’s management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenues less costs of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on DXC’s foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation and integration-related costs and amortization of acquired intangible assets.

	Three Months Ended				Nine Months Ended
(in millions)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Profit
Total profit for reportable segments	$	417	$	361	1,236		$	952
All other loss	(62)		(61)		(203)		(179)
Interest income	15		28		51		76
Interest expense	(38)		(82)		(161)		(284)
Restructuring costs	(36)		(104)		(248)		(441)
Transaction, separation and integration-related costs	(11)		(96)		(23)		(307)
Amortization of acquired intangible assets	(106)		(114)		(325)		(414)
Gains and (losses) on dispositions	(4)		2,046		343		2,046
Impairment losses	—		—		(10)		—
Debt extinguishment costs	(2)		—		(311)		—
Pension and OPEB actuarial and settlement losses	(7)		—		(7)		(2)
Income before income taxes	$	166	$	1,978	$	342	$	1,447

Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.