Debt

3 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

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

(in millions)	Interest Rates	Fiscal Year Maturities	June 30, 2023(1)		March 31, 2023(1)
Short-term debt and current maturities of long-term debt
Commercial paper(2)	3.56% - 4.03%	2024	$	349	$	109
Current maturities of long-term debt	Various	2024 - 2025	137		176
Current maturities of finance lease liabilities	0.00% - 14.59%	2024 - 2025	208		215
Short-term debt and current maturities of long-term debt			$	694	$	500
Long-term debt, net of current maturities
€650 million Senior notes	1.75%	2026	707		704
$700 million Senior notes	1.80%	2027	696		696
€750 million Senior notes	0.45%	2028	814		810
$650 million Senior notes	2.375%	2029	645		645
€600 million Senior notes	0.95%	2032	649		646
Finance lease liabilities	0.00% - 14.59%	2024 - 2029	475		502
Borrowings for assets acquired under long-term financing	0.00% - 9.78%	2024 - 2029	248		285
Other borrowings	Various	2024	2		3
Long-term debt			4,236		4,291
Less: current maturities			345		391
Long-term debt, net of current maturities			$	3,891	$	3,900

(1)The carrying amounts of the senior notes as of June 30, 2023 and March 31, 2023, include the remaining principal outstanding of $3,532 million and $3,523 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $21 million and $22 million, respectively.

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

Term Loan

During the second quarter of fiscal 2023, the Company entered into a $500 million term loan credit agreement (as amended, the “USD Term Loan”) with certain unaffiliated financial institutions. The USD Term Loan is required to be drawn down by September 1, 2023 or the facility will terminate. The Company did not draw on the USD Term Loan as of June 30, 2023.

Fair Value of Debt

The estimated fair value of the Company’s long-term debt, excluding finance lease liabilities, was $3.2 billion and $3.3 billion as of June 30, 2023 and March 31, 2023, respectively, compared with carrying value of $3.8 billion and $3.8 billion as of June 30, 2023 and March 31, 2023, respectively.