Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 11, 2018 | Sep. 29, 2017 | |
Document Information [Abstract] | |||
Entity Registrant Name | DXC TECHNOLOGY CORPORATION | ||
Entity Central Index Key | 1,688,568 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 284,792,350 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 24,415,505,112 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 2,648 | $ 1,263 | |
Receivables, net of allowance for doubtful accounts of $40 and $26 | 5,913 | 1,643 | |
Prepaid expenses | 571 | 223 | |
Other current assets | 485 | 118 | |
Total current assets | 9,617 | 3,247 | |
Intangible assets, net of accumulated amortization of $3,457 and $2,293 | 8,091 | 1,794 | |
Goodwill | 9,652 | 1,855 | |
Deferred income taxes, net | 373 | 381 | |
Property and equipment, net of accumulated depreciation of $3,752 and $2,816 | 3,646 | 903 | |
Other assets | 2,542 | 483 | |
Total Assets | 33,921 | 8,663 | |
Current liabilities: | |||
Short-term debt and current maturities of long-term debt | 2,073 | 738 | |
Accounts payable | 1,708 | 410 | |
Accrued payroll and related costs | 766 | 248 | |
Accrued expenses and other current liabilities | 3,466 | 998 | |
Deferred revenue and advance contract payments | 1,694 | 518 | |
Income taxes payable | 145 | 38 | |
Total current liabilities | 9,852 | 2,950 | |
Long-term debt, net of current maturities | 6,306 | 2,225 | |
Non-current deferred revenue | 802 | 286 | |
Non-current pension obligations | 879 | 342 | |
Non-current income tax liabilities and deferred tax liabilities | 1,329 | 423 | |
Other long-term liabilities | 916 | 271 | |
Total Liabilities | 20,084 | 6,497 | |
Commitments and contingencies | |||
DXC stockholders’ equity: | |||
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued as of March 31, 2018 and March 31, 2017 | 0 | 0 | |
Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 286,393,147 as of March 31, 2018 and 141,298,797 as of March 31, 2017 | 3 | 1 | |
Additional paid-in capital | 12,210 | 2,219 | |
Retained earnings (accumulated deficit) | 1,301 | (170) | |
Accumulated other comprehensive income (loss) | 58 | (162) | |
Treasury stock, at cost, 1,016,947 and 0 shares as of March 31, 2018 and March 31, 2017 | (85) | 0 | |
Total DXC stockholders’ equity | 13,487 | 1,888 | |
Non-controlling interest in subsidiaries | 350 | 278 | |
Total Equity | 13,837 | 2,166 | |
Total Liabilities and Equity | $ 33,921 | $ 8,663 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | [1] |
Current assets: | |||
Allowance for doubtful accounts | $ 40 | $ 26 | |
Accumulated amortization | 3,457 | 2,293 | |
Accumulated depreciation | $ 3,752 | $ 2,816 | |
CSC stockholders' equity: | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 | |
Common stock, issued (in shares) | 286,393,147 | 141,298,797 | |
Common stock in treasury, at cost (in shares) | 1,016,947 | 0 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 24,556 | $ 7,607 | $ 7,106 |
Costs of services (excludes depreciation and amortization and restructuring costs) | 17,944 | 5,545 | 5,185 |
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 2,010 | 1,279 | 1,059 |
Depreciation and amortization | 1,964 | 647 | 658 |
Restructuring costs | 803 | 238 | 23 |
Interest expense | 335 | 117 | 123 |
Interest income | (89) | (35) | (38) |
Debt extinguishment costs | 0 | 0 | 95 |
Other income, net | (82) | (10) | (9) |
Total costs and expenses | 22,885 | 7,781 | 7,096 |
Income (loss) from continuing operations, before taxes | 1,671 | (174) | 10 |
Income tax benefit | (111) | (74) | (62) |
Income (loss) from continuing operations | 1,782 | (100) | 72 |
Income from discontinued operations, net of taxes | 0 | 0 | 191 |
Net income (loss) | 1,782 | (100) | 263 |
Less: net income attributable to non-controlling interest, net of tax | 31 | 23 | 12 |
Net income (loss) attributable to DXC common stockholders | $ 1,751 | $ (123) | $ 251 |
Income (loss) per common share - Basic: | |||
Continuing operations (in dollars per share) | $ 6.15 | $ (0.88) | $ 0.51 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.31 |
Basic EPS (in dollars per share) | 6.15 | (0.88) | 1.82 |
Income (loss) per common share - Diluted: | |||
Continuing operations (in dollars per share) | 6.04 | (0.88) | 0.50 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.28 |
Diluted EPS (in dollars per share) | 6.04 | (0.88) | 1.78 |
Cash dividend per common share (in dollars per share) | $ 0.72 | $ 0.56 | $ 2.99 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,782 | $ (100) | $ 263 |
Other comprehensive loss, net of taxes: | |||
Foreign currency translation adjustments, net of tax expense of $75, $5 and $4 | 197 | (75) | (83) |
Cash flow hedges adjustment, net of tax (benefit) expense of $(3), $12 and $0 | (11) | 21 | 1 |
Available-for-sale securities, net of tax expense of $2, $0 and $0 | 9 | 0 | 0 |
Pension and other post-retirement benefit plans, net of tax: | |||
Prior service credit, net of tax expense of $8, $0 and $1 | 38 | 0 | 2 |
Amortization of transition obligation, net of tax expense of $0, $0, and $0 | 1 | 1 | 0 |
Amortization of prior service cost, net of tax benefit of $4, $5 and $10 | (14) | (12) | (20) |
Foreign currency exchange loss, net of tax benefit of $0, $1 and $0 | 0 | (2) | (1) |
Pension and other post-retirement benefit plans, net of tax | 25 | (13) | (19) |
Other comprehensive income (loss), net of taxes | 220 | (67) | (101) |
Comprehensive income (loss) | 2,002 | (167) | 162 |
Less: comprehensive income attributable to non-controlling interest | 31 | 7 | 12 |
Comprehensive income (loss) attributable to DXC common stockholders | $ 1,971 | $ (174) | $ 150 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax expense | $ 75 | $ 5 | $ 4 |
Foreign currency forward contracts, tax (benefit) expense | (3) | 12 | 0 |
Available-for-sale securities, tax expense | 2 | 0 | 0 |
Prior service credit, tax benefit (expense) | 8 | 0 | 1 |
Amortization of transition obligation, tax expense | 0 | 0 | 0 |
Amortization of prior service cost, tax benefit | 4 | 5 | 10 |
Foreign currency exchange (loss) gain, tax benefit | $ 0 | $ 1 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,782 | $ (100) | $ 263 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 2,014 | 658 | 767 |
Pension & other post-employment benefits, actuarial & settlement (gains) losses | (220) | 87 | 92 |
Share-based compensation | 93 | 75 | 45 |
Deferred tax benefit | (842) | (92) | (37) |
Loss (gain) on dispositions | 4 | 6 | (41) |
Provision for losses on accounts receivable | 45 | 4 | 6 |
Unrealized foreign currency exchange losses | 22 | 24 | 43 |
Impairment losses and contract write-offs | 41 | 8 | 2 |
Debt extinguishment costs | 0 | 0 | 95 |
Amortization of debt issuance costs and discount (premium) | (4) | 17 | 0 |
Cash surrender value in excess of premiums paid | (11) | (7) | (10) |
Other non-cash charges, net | 4 | 0 | 0 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||
Decrease in receivables | 202 | 586 | 129 |
Decrease (increase) in deferred purchase price receivable | 19 | (252) | 0 |
Increase in prepaid expenses and other current assets | (205) | (29) | (15) |
(Decrease) increase in accounts payable and accruals | (96) | 54 | (357) |
SEC settlement related charges | 0 | 0 | (190) |
Increase (decrease) in income taxes payable and income tax liability | 303 | (32) | 58 |
Increase (decrease) in advance contract payments and deferred revenue | 130 | (67) | (37) |
Other operating activities, net | (38) | 38 | (11) |
Net cash provided by operating activities | 3,243 | 978 | 802 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (224) | (246) | (356) |
Payments for outsourcing contract costs | (328) | (101) | (101) |
Short-term investing | 0 | 0 | (70) |
Software purchased and developed | (211) | (140) | (184) |
Cash acquired through HPES Merger | 938 | 0 | 0 |
Payments for acquisitions, net of cash acquired | (203) | (434) | (554) |
Business dispositions | 0 | 3 | 37 |
Proceeds from sale of assets | 58 | 57 | 61 |
Restricted cash | (67) | (1) | 0 |
Other investing activities, net | 4 | (64) | (13) |
Net cash used in investing activities | (33) | (926) | (1,180) |
Cash flows from financing activities: | |||
Borrowings of commercial paper | 2,413 | 2,191 | 821 |
Repayments of commercial paper | (2,297) | (2,086) | (263) |
Borrowings under lines of credit | 0 | 920 | 2,206 |
Repayment of borrowings under lines of credit | (737) | (789) | (1,825) |
Borrowings on long-term debt, net of discount | 621 | 159 | 928 |
Principal payments on long-term debt | (1,547) | (168) | (1,800) |
Payments on capital leases and borrowings for asset financing | (1,060) | (145) | (69) |
Proceeds from bond issuance | 989 | 0 | 0 |
Proceeds from structured sale of facility | 0 | 85 | 0 |
Proceeds from stock options and other common stock transactions | 138 | 54 | 82 |
Taxes paid related to net share settlements of share-based compensation awards | (76) | (13) | (48) |
Debt extinguishment costs | 0 | 0 | (95) |
Repurchase of common stock and advance payment for accelerated share repurchase | (132) | 0 | (73) |
Dividend payments | (174) | (78) | (430) |
Borrowings for CSRA spin transaction | 0 | 0 | 1,508 |
Transfers of cash to CSRA upon Separation | 0 | 0 | (1,440) |
Other financing activities, net | (28) | (37) | 13 |
Net cash (used in) provided by financing activities | (1,890) | 93 | (485) |
Effect of exchange rate changes on cash and cash equivalents | 65 | (60) | (57) |
Net increase (decrease) in cash and cash equivalents | 1,385 | 85 | (920) |
Cash and cash equivalents at beginning of year | 1,263 | 1,178 | 2,098 |
Cash and cash equivalents at end of year | $ 2,648 | $ 1,263 | $ 1,178 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total CSC Equity | Non-Controlling Interest | |||
Balance (in shares) (As Previously Reported) at Apr. 03, 2015 | 148,374,000 | ||||||||||
Balance (in shares) at Apr. 03, 2015 | 148,374,000 | ||||||||||
Balance (As Previously Reported) at Apr. 03, 2015 | $ 2,965 | $ 148 | $ 2,286 | $ 928 | $ 21 | $ (446) | $ 2,937 | $ 28 | |||
Balance (Adjustment) at Apr. 03, 2015 | [1] | 0 | (147) | 147 | |||||||
Balance at Apr. 03, 2015 | 2,965 | $ 1 | 2,433 | 928 | 21 | (446) | 2,937 | 28 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 263 | 251 | 251 | 12 | |||||||
Other comprehensive Income (loss) | (101) | (101) | (101) | ||||||||
Share-based compensation expense | 45 | 45 | 45 | ||||||||
Acquisition of treasury stock | (39) | (39) | (39) | ||||||||
Share repurchase program (in shares) | [1] | (3,750,000) | |||||||||
Share repurchase program | [1] | (74) | 32 | (106) | (74) | ||||||
Stock option exercises and other common stock transactions (in shares) | [1] | 4,123,000 | |||||||||
Stock option exercises and other common stock transactions | [1] | 77 | 77 | 77 | |||||||
Dividends declared | (104) | (104) | (104) | ||||||||
Special dividend | (317) | (317) | (317) | ||||||||
Noncontrolling interest distributions and other | (9) | (9) | |||||||||
Noncontrolling interest from acquisition and capital contributions | 6 | 6 | |||||||||
Divestiture of NPS | (680) | (619) | (31) | (650) | (30) | ||||||
Balance (in shares) (As Previously Reported) at Apr. 01, 2016 | 148,747,000 | ||||||||||
Balance (in shares) at Apr. 01, 2016 | 148,747,000 | ||||||||||
Balance (As Previously Reported) at Apr. 01, 2016 | 2,032 | $ 149 | 2,439 | 33 | (111) | (485) | 2,025 | 7 | |||
Balance (Adjustment) at Apr. 01, 2016 | [2] | (148) | 148 | ||||||||
Balance at Apr. 01, 2016 | 2,032 | $ 1 | 2,587 | 33 | (111) | (485) | 2,025 | 7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | (100) | (123) | (123) | 23 | |||||||
Other comprehensive Income (loss) | (67) | (51) | (51) | (16) | |||||||
Share-based compensation expense | 73 | 73 | 73 | ||||||||
Acquisition of treasury stock | (12) | (12) | (12) | ||||||||
Stock option exercises and other common stock transactions (in shares) | [2] | 3,185,000 | |||||||||
Stock option exercises and other common stock transactions | [2] | 56 | 56 | 56 | |||||||
Dividends declared | (80) | (80) | (80) | ||||||||
Noncontrolling interest distributions and other | (17) | (17) | |||||||||
Noncontrolling interest from acquisition and capital contributions | [3] | 281 | 281 | ||||||||
Balance (in shares) (As Previously Reported) at Mar. 31, 2017 | 151,932,000 | ||||||||||
Balance (in shares) (Adjustment) at Mar. 31, 2017 | [2],[4] | (10,633,000) | |||||||||
Balance (in shares) at Mar. 31, 2017 | 141,299,000 | ||||||||||
Balance (As Previously Reported) at Mar. 31, 2017 | 2,166 | $ 152 | 2,565 | (170) | (162) | (497) | [5] | 1,888 | 278 | ||
Balance (Adjustment) at Mar. 31, 2017 | [4] | 0 | (151) | (346) | 497 | [5] | |||||
Balance at Mar. 31, 2017 | 2,166 | [6] | 1 | 2,219 | (170) | (162) | 0 | [5] | 1,888 | 278 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance, prior par value | As Previously Reported | 2,166 | 1 | 2,716 | (170) | (162) | (497) | 1,888 | 278 | |||
Balance, prior par value | Adjustment | [2] | $ 0 | $ 0 | (497) | 497 | ||||||
Treasury shares | [6] | 0 | |||||||||
Business acquired in purchase, net of issuance costs (in shares) | [7] | 141,741,000 | |||||||||
Business acquired in purchase, net of issuance costs | [7] | $ 9,900 | $ 2 | 9,848 | 9,850 | 50 | |||||
Net (loss) income | 1,782 | 1,751 | 1,751 | 31 | |||||||
Other comprehensive Income (loss) | 220 | 220 | 220 | ||||||||
Share-based compensation expense | 92 | 92 | 92 | ||||||||
Acquisition of treasury stock | (85) | (85) | [5] | (85) | |||||||
Share repurchase program (in shares) | (1,538,000) | ||||||||||
Share repurchase program | (137) | (66) | (71) | (137) | |||||||
Stock option exercises and other common stock transactions (in shares) | 4,891,000 | ||||||||||
Stock option exercises and other common stock transactions | 117 | 117 | 117 | ||||||||
Dividends declared | (209) | (209) | (209) | ||||||||
Noncontrolling interest distributions and other | (9) | (9) | |||||||||
Balance (in shares) at Mar. 31, 2018 | 286,393,000 | ||||||||||
Balance at Mar. 31, 2018 | $ 13,837 | $ 3 | $ 12,210 | $ 1,301 | $ 58 | $ (85) | [5] | $ 13,487 | $ 350 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Treasury shares | 1,016,947 | ||||||||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||
[2] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||
[3] | See Note 2 - "Acquisitions" | ||||||||||
[4] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||
[5] | 1,016,947 treasury shares as of March 31, 2018 | ||||||||||
[6] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||
[7] | See Note 2 - "Acquisitions" |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business DXC Technology Company ("DXC" or the "Company") is the world's leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company's technology independence, global talent and extensive partner network deliver transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. Merger with HPES On April 1, 2017, Computer Sciences Corporation ("CSC") completed its previously announced combination with the Enterprise Services business of Hewlett Packard Enterprise Company ("HPES"), which resulted in CSC becoming a wholly owned subsidiary of DXC (the "HPES Merger"). DXC common stock began regular-way trading under the symbol "DXC" on the New York Stock Exchange on April 3, 2017. See Note 2 - " Acquisitions " for further information. USPS Separation and Mergers On October 11, 2017, DXC announced that it had entered into an Agreement and Plan of Merger with Perspecta Inc., Ultra First VMS Inc., Ultra Second VMS LLC, Ultra KMS Inc., Vencore Holding Corp. (“Vencore”), KGS Holding Corp (“KeyPoint”), The SI Organization Holdings LLC and KGS Holding LLC (the “Perspecta Merger Agreement”). The Perspecta Merger Agreement provides that the DXC will spin off its U.S. public sector business and combine it with Vencore and KeyPoint to form a separate, independent publicly traded company to serve U.S. public sector clients; Perspecta Inc (the "USPS Separation and Mergers"). Basis of Presentation In order to make this report easier to read, DXC refers throughout to (i) the Consolidated Financial Statements as the “Financial Statements,” (ii) the Consolidated Statements of Operations as the “Statements of Operations,” (iii) the Consolidated Statement of Comprehensive Income (loss) as the "Statements of Comprehensive Income," (iv) the Consolidated Balance Sheets as the “Balance Sheets,” and (v) the Consolidated Statements of Cash Flows as the “Statements of Cash Flows.” In addition, references throughout to numbered “Notes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted. The accompanying financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission for annual reports and accounting principles generally accepted in the United States ("GAAP"). The financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations, and comprehensive income attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated. In connection with the HPES Merger, CSC was deemed the accounting acquirer of HPES for accounting purposes under GAAP, therefore, CSC is considered DXC's predecessor and the historical financial statements of CSC prior to April 1, 2017, are reflected in this Annual Report on Form 10-K as DXC's historical financial statements. Accordingly, the financial results of DXC as of and for any periods ending prior to April 1, 2017 do not include the financial results of HPES, and therefore, are not directly comparable. Additionally, CSC used to report its results based on a fiscal year convention that comprises four thirteen-week quarters. However, effective April 1, 2017, DXC's fiscal year was modified to end on March 31 of each year with each quarter ending on the last calendar day. As a result of the HPES Merger, DXC now has a separate operating segment, USPS, and changed its primary segment performance measure to segment profit from the previously reported consolidated segment operating income. See Note 18 - " Segment and Geographic Information " for more information. In addition, DXC effected a recapitalization of its common stock and preferred stock (the “Recapitalization”). The Recapitalization, which converted DXC's historical share price from par value $1.00 per share to par value $0.01 per share, resulted in no change to DXC's total stockholders’ equity or earnings per share. During fiscal 2016, CSC completed the separation of its U.S. public sector business ("NPS") and combination of NPS with SRA International, Inc. to form a new independent publicly traded Company; CSRA Inc. (the "NPS Separation"). As a result of the NPS Separation, the statement of operations and related financial information reflect NPS's operations as discontinued operations for fiscal 2016. However, the cash flows and comprehensive income of NPS have not been segregated and are included in the statement of cash flows and statement of comprehensive income for fiscal 2016. Certain prior year amounts have been reclassified to conform to the current year presentation, specifically, within the balance sheets, "prepaid expenses" and "other current assets" previously aggregated within "prepaid expenses and other current assets" have been separately disclosed and, within the statements of operations, "separation costs" have been aggregated within "selling, general and administrative." Use of Estimates The preparation of the financial statements in accordance with GAAP requires the Company's management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax benefits, valuation allowances on deferred tax assets, loss accruals for litigation and obligations related to our pension plans. In the opinion of the Company's management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. Revenue Recognition The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the client, the sales price is fixed or determinable, and collectability is reasonably assured. For non-software arrangements that include multiple-elements, revenue recognition involves the identification of separate units of accounting after consideration of combining and/or segmenting contracts and allocation of the arrangement consideration to the units of accounting on the basis of their relative selling price. Revenue under such contracts is recognized based upon the level of services delivered in the periods in which they are provided. These contracts often include upfront fees billed for activities to familiarize DXC with the client's operations, take control over their administration and operation, and adapt them to DXC's solutions. These activities typically do not qualify as separate units of accounting, and the related revenues are deferred until service commencement and recognized ratably over the period of performance during the period in which DXC provides the related service, which is typically the life of the contract. Costs are expensed as incurred, except for direct and incremental set-up costs which are capitalized and amortized on a straight-line basis over the life of the contract, which are described in more detail under the heading of intangible assets below. Software transactions that include multiple elements are described below within Multiple-element software sales. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and multiple-element software sales for which revenue is recognized in the following manner: Time and materials contracts - Revenue is recorded at agreed-upon billing rates at the time services are provided. Unit-price contracts. Revenue is recognized based on unit metrics multiplied by the agreed upon contract unit price or when services are delivered. Fixed-price contracts. For certain fixed-price contracts, revenue is recognized under the percentage-of-completion method as described below; these include certain software development projects and all long-term construction-type contracts. For other fixed-price contracts, revenue is recognized based on the proportion of the services delivered to date as a percentage of the total services to deliver over the contract term. If output or input measures are not available or cannot be reasonably estimated, revenue is recognized ratably over the contract term. Under the percentage-of-completion method, progress towards completion is measured based on either achievement of specified contract milestones, costs incurred as a proportion of estimated total costs, or other measures of progress when appropriate. Profit in a given period is reported at the estimated profit margin to be achieved on the overall contract. This method can result in the recognition of unbilled receivables, the deferral of costs as work in process, or deferral of profit on these contracts. Contracts that require estimates at completion using the percentage-of-completion method accounted for approximately 3% of the Company's revenues for fiscal 2018 . Management regularly reviews project profitability and underlying estimates. Revisions to the estimates at completion are reflected in results of operations as a change in accounting estimate in the period in which the facts that give rise to the revision become known by management. Provisions for estimated losses at completion, if any, are recognized in the period in which the loss becomes evident. The provision includes estimated costs in excess of estimated revenue and any profit margin previously recognized. Multiple-element software sales. For multiple-element arrangements that involve the sale of DXC proprietary software, post contract customer support, and other software-related services, vendor-specific objective evidence ("VSOE") of fair value is required to allocate and recognize revenue for each element. VSOE of fair value is determined based on the price charged where each deliverable is sold separately. In situations where VSOE of fair value exists for all undelivered elements but not a delivered element (typically the software license element), the residual method is used. This method allocates revenue to the undelivered elements equal to their VSOE value with the remainder allocated to the delivered element. If significant customization is required, and VSOE is available to support accounting for the software as a separate unit of account, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. In situations where VSOE of fair value does not exist for all of the undelivered software-related elements, revenue is deferred until only one undelivered element remains and then recognized following the pattern of delivery of the final undelivered element. Pension and Other Benefit Plans The Company accounts for its pension, other post-retirement benefit ("OPEB"), defined contribution and deferred compensation plans using the guidance of ASC 710 "Compensation - General" and ASC 715 "Compensation - Retirement Benefits". The Company recognizes actuarial gains and losses and changes in fair value of plan assets in earnings at the time of plan remeasurement as a component of net periodic benefit expense. Typically plan remeasurement occurs annually during the fourth quarter of each fiscal year. The remaining components of pension and OPEB expense, primarily current period service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Inherent in the application of the actuarial methods are key assumptions, including, but not limited to, discount rates, expected long-term rates of return on plan assets, mortality rates, rates of compensation increases, and medical cost trend rates. Company management evaluates these assumptions annually and updates assumptions as necessary. The fair value of assets is determined based on the prevailing market prices or estimated fair value of investments when quoted prices are not available. Software Development Costs After establishing technological feasibility, and until such time as the software products are available for general release to customers, the Company capitalizes costs incurred to develop commercial software products to be sold, leased or otherwise marketed. Costs incurred to establish technological feasibility are charged to expense as incurred. Enhancements to software products are capitalized where such enhancements extend the life or significantly expand the marketability of the products. Amortization of capitalized software development costs is determined separately for each software product. Annual amortization expense is calculated based on the greater of the ratio of current gross revenues for each product to the total of current and anticipated future gross revenues for the product or the straight-line amortization method over the estimated useful life of the product. Unamortized capitalized software costs associated with commercial software products are periodically evaluated for impairment on a product-by-product basis by comparing the unamortized balance to the product’s net realizable value. The net realizable value is the estimated future gross revenues from that product reduced by the related estimated future costs. When the unamortized balance exceeds the net realizable value, the unamortized balance is written down to the net realizable value and an impairment charge is recorded. The Company capitalizes costs incurred to develop internal-use computer software during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. Capitalized costs associated with internal-use software are amortized on a straight-line basis over the estimated useful life of the software. Purchased software is capitalized and amortized over the estimated useful life of the software. Internal-use software assets are evaluated for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Share-Based Compensation Share-based awards are accounted for under the fair value method. The Company provides different forms of share-based compensation to its employees and non-employee directors. This includes stock options and restricted stock units ("RSUs"), including performance-based restricted stock units ("PSUs"). The fair value of the awards is determined on the grant date, based on the Company's closing stock price. For awards settled in shares, the Company recognizes compensation expense based on the grant-date fair value net of estimated forfeitures over the vesting period. For awards settled in cash, the Company recognizes compensation expense based on the fair value at each reporting date net of estimated forfeitures. The Company uses the Black-Scholes-Merton model to compute the estimated fair value of options granted. This model includes assumptions regarding expected term, risk-free interest rates, expected volatility and dividend yields which are periodically evaluated. The expected term is calculated based on the Company’s historical experience with respect to its stock plan activity and an estimate of when vested and unexercised option shares will be exercised. The expected term of options is based on job tier classifications, which have different historical exercise behavior. The risk-free interest rate is based on the zero-coupon interest rate of U.S. government issued treasury STRIPS with a period commensurate with the expected term of the options. Expected volatility is based on a blended approach, which uses a two-thirds weighting for historical volatility and one-third weighting for implied volatility. The Company’s historical volatility calculation is based on employee class and historical closing prices of the Company's peer group, in order to better align this factor with the expected terms of the stock options. DXC’s implied stock price volatility is derived from the price of exchange traded options on DXC’s stock with the longest remaining contractual term. Implied volatility is a prospective, forward looking measure representing market participants’ expectations of DXC's future stock price volatility. The dividend yield assumption is based on the respective fiscal year dividend payouts. Forfeitures are estimated based on historical experience. Business Combinations Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's statements of operations. For contingent consideration recorded as a liability, the Company initially measures the amount at fair value as of the acquisition date and adjusts the liability, if needed, to fair value each reporting period. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recognized as income or expense. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. Goodwill Impairment Analysis The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A significant amount of judgment is involved in determining whether an event indicating impairment has occurred between annual testing dates. Such indicators include: a significant decline in expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, the disposal of a significant component of a reporting unit and the testing for recoverability of a significant asset group within a reporting unit. The Company follows GAAP-prescribed rules when determining if goodwill has been impaired. Initially, an assessment of qualitative factors is conducted in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. This qualitative analysis, which is commonly referred to as step zero under ASC Topic 350 "Goodwill and Other Intangible Assets", considers all relevant factors specific to the reporting units, including macroeconomic conditions; industry and market considerations; overall financial performance and relevant entity-specific events. If the Company determines that it is not more likely that the carrying amount for a reporting unit is less than its fair value, then the subsequent two-step goodwill impairment testing process is not required. If the Company determines that it is more likely than not that the carrying amount for a reporting unit is greater than its fair value, then it proceeds with the subsequent two-step process. The Company has the option to bypass the initial qualitative assessment stage and proceed directly to perform step one of the two-step process. Step one of the process compares each reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if a reporting unit’s fair value is less than its carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. In the second step, the reporting unit’s fair value is determined and allocated to the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in order to calculate the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. When the Company performs step one of the two-step test for a reporting unit, it estimates the fair value of the reporting unit using both the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value using a discount rate. Cash flow projections are based on management's estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of each reporting unit, the weighted-average cost of capital and its underlying forecasts. The market approach estimates fair value by applying performance-metric multiples to the reporting unit's prior and expected operating performance. The multiples are derived from comparable publicly traded companies that have operating and investment characteristics similar to those of the reporting unit. If the fair value of the reporting unit derived using one approach is significantly different from the fair value estimate using the other approach, the Company reevaluates its assumptions used in the two models. Assumptions are modified as considered appropriate under the circumstances until the two models yield similar and reasonable results. The fair values determined by the market approach and income approach, as described above, are weighted to determine the fair value for each reporting unit. The weighting ascribed to the market approach fair value assigned to each reporting unit is influenced by two primary factors: 1) the number of comparable publicly traded companies used in the market approach, and 2) the similarity of the operating and investment characteristics of the reporting units to the comparable publicly traded companies used in the market approach. If DXC performs a step one analysis for all of its reporting units in conjunction with its annual goodwill testing, it also compares the sum of all of its reporting units’ fair values to the Company's market capitalization (per-share stock price multiplied by the number of shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). The Company evaluates the reasonableness of the control premium by comparing it to control premiums derived from recent comparable business combinations. If the implied control premium is not reasonable in light of the comparable business combinations, the Company reevaluates its fair value estimates of the reporting units by adjusting the discount rates and/or other assumptions. As a result, when DXC’s stock price and thus market capitalization is low relative to the sum of the estimated fair value of its reporting units, this reevaluation can result in reductions to the estimated fair values for the reporting units. Fair Value The Company applies fair value accounting for its financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The objective of a fair value measurement is to estimate the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal market for that asset or liability, or in the absence of the principal market, the most advantageous market. Assets and liabilities subject to fair value measurement disclosures are required to be classified according to a three-level fair value hierarchy with respect to the inputs used to determine fair value. The level in which an asset or liability is disclosed within the fair value hierarchy is based on the lowest level input that is significant to the related fair value measurement in its entirety. The levels of input are defined as follows: Level 1: Quoted prices unadjusted for identical assets or liabilities in an active market. Level 2: Quoted prices for similar assets or liabilities in an active market, quoted prices for identical similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that reflect the entity's own assumptions which market participants would use in pricing the asset or liability. Receivables The Company records receivables at their face amounts less an allowance for doubtful accounts. Receivables consist of amounts billed and currently due from customers, amounts earned but unbilled (including contracts measured under the percentage-of-completion method of accounting), amounts retained by the customer until the completion of a specified contract, negotiation of contract modification and claims. Unbilled recoverable amounts under contracts in progress generally become billable upon achievement of project milestones or upon acceptance by the customer. Allowances for uncollectible billed trade receivables are estimated based on a combination of write-off history, aging analysis and any known collectability issues. Unbilled amounts under contracts in progress that are recoverable do not have an allowance for credit losses. Adjustments to unbilled amounts under contracts in progress related to credit quality, should they occur, would be recorded as a reduction of revenues. DXC uses receivables securitization facilities or receivables sales facilities in the normal course of business as part of managing its cash flows. The Company accounts for receivables sold under these facilities as a sale of financial assets pursuant to ASC 860 “Transfers and Servicing” and derecognizes these receivables, as well as the related allowances, from its balance sheets. Generally, the fair value of the sold receivables approximates the book value due to the short-term nature and, as a result, no gain or loss on sale of receivables is recorded. Under the receivables securitization facility, the deferred purchase price receivable is recorded at fair value, which is determined by calculating the expected amount of cash to be received based on unobservable inputs consisting of the face amount of the receivables adjusted for anticipated credit losses. The Company reflects cash flows related to receivables facilities as operating activities in its statements of cash flows because the cash received upon both the sale and collection of the receivables is not subject to significant interest rate risk given the short-term nature of the Company’s trade receivables. Property and Equipment Property and equipment, which includes assets under capital leases, are stated at cost less accumulated depreciation. Depreciation is computed predominantly on a straight-line basis over the estimated useful lives of the assets or the remaining lease term, whichever is shorter. The estimated useful lives of DXC's property and equipment are as follows: Buildings Up to 40 years Computers and related equipment 4 to 5 years Furniture and other equipment 3 to 15 years Leasehold improvements Shorter of lease term or useful life up to 20 years Intangible Assets The Company's estimated useful lives for finite-lived intangibles are shown in the table below: Software 2 to 10 years Outsourcing contract costs Contract life, excluding option years Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable Software is amortized using predominately the straight-line method. Costs of outsourcing contracts, including costs incurred for bid and proposal activities, are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract are deferred and expensed on a straight-line basis over the contract life. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract premiums and transition/set-up costs. Contract premiums represent amounts paid to customers in excess of the fair value of assets acquired and are amortized as a reduction to revenues. Transition/set-up costs are primarily associated with assuming control over a customer's IT operations and transforming them pursuant to contract specifications. Acquired contract related and customer related intangible assets are amortized in proportion to the estimated undiscounted cash flows projected over the estimated life of the asset or on a straight-line basis if such cash flows cannot be reliably estimated. Impairment of Long-Lived Assets and Finite-Lived Intangible Assets Long-lived assets such as property and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount of such assets to the estimated future net cash flows. If estimated future net cash flows are less than the carrying amount of such assets, an expense is recorded in the amount required to reduce the carrying amount of such assets to fair value. Fair value is determined based on a discounted cash flow approach or, when available and appropriate, comparable market values. Long-lived assets to be disposed of are reported at the lower of their carrying amount or their fair value less costs to sell. Income Taxes The Company uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the results of operations in the period that includes the related enactment date. A valuation |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2018 Acquisitions HPES Merger On April 1, 2017, CSC, Hewlett Packard Enterprise Company (“HPE”), Everett SpinCo, Inc. (“Everett”), and New Everett Merger Sub Inc., a wholly-owned subsidiary of Everett (“Merger Sub”), completed the strategic combination of CSC with the Enterprise Services business of HPE to form DXC. The combination was accomplished through a series of transactions that included the transfer by HPE of its Enterprise Services business, HPES, to Everett, and spin-off by HPE of Everett on March 31, 2017, and the merger of Merger Sub with and into CSC on April 1, 2017. At the time of the HPES Merger, Everett was renamed DXC, and as a result of the HPES Merger, CSC became a direct wholly owned subsidiary of DXC. DXC common stock began regular-way trading on the New York Stock Exchange on April 3, 2017. The strategic combination of the two complementary businesses was to create a versatile global technology services business, well positioned to innovate, compete and serve clients in a rapidly changing marketplace. The transaction involving HPES and CSC is a reverse merger acquisition, in which DXC is considered the legal acquirer of the business and CSC is considered the accounting acquirer. While purchase consideration transferred in a business combination is typically measured by reference to the fair value of equity issued or other assets transferred by the accounting acquirer, CSC did not issue any consideration in the HPES Merger. CSC stockholders received one share of DXC common stock for every one share of CSC common stock held immediately prior to the HPES Merger. DXC issued a total of 141,298,797 shares of DXC common stock to CSC stockholders, representing approximately 49.9% of the outstanding shares of DXC common stock immediately following the HPES Merger. The reverse merger is deemed a capital transaction and the net assets of CSC (the accounting acquirer) are carried forward to DXC (the legal acquirer and the reporting entity) at their carrying value before the combination. The acquisition process utilizes the capital structure of the Company and the assets and liabilities of CSC, which are recorded at historical cost. The equity of the Company is the historical equity of CSC, retroactively restated to reflect the number of shares issued by DXC in the transaction. In connection with the HPES Merger, the Company entered into a number of agreements with HPE including the following: • Information Technology Services Agreement. The Company and HPE have entered into an Agreement pursuant to which the Company will provide information technology services to HPE. This agreement terminates on the fifth anniversary of its effective date, unless earlier terminated by the parties in accordance with its terms. • Preferred Vendor Agreements. The Company and HPE have entered into Preferred Vendor Agreements, pursuant to which HPE and Micro Focus International, the acquirer of HPE's software business, will: (1) make available to DXC for purchase hardware products sold by HPE and technology services provided by HPE and (2) make available to DXC for purchase and license software products sold or licensed by HPE and Micro Focus, and technology (including SaaS), support, professional and other services provided by HPE and Micro Focus. • Certain other additional agreements were entered into, including a Separation and Distribution Agreement, as amended (the "Separation Agreement"), an employee matters agreement, a tax matters agreement, a transition services agreement, an intellectual property matters agreement, and certain real estate related agreements. Subsequent to the HPES Merger, HPE settled certain obligations as required under the Separation Agreement. In accordance with the provisions of the agreement, a calculation was performed to make certain adjustments required to complete the separation and standup of legacy HPES and achieve accurate cut off for intercompany transactions with its former parent. The aggregate adjustment to settle the obligations was $203 million . In May 2016, CSC, HPE and DXC (f/k/a Everett Spinco, Inc.) entered into an agreement and plan of merger, as amended (the “Merger Agreement”), and HPE and DXC entered into a Separation Agreement, in each case relating to the combination of HPES and CSC. At the time the Merger Agreement and the Separation Agreement were executed, HPES was a party to several thousand leases with Hewlett-Packard Financial Services that were classified as capital leases. Under the terms of the Separation Agreement the balance of long-term capital leases for which HPES would be liable at the time of the spin-off was not to exceed $250 million . The Separation Agreement provided HPE an opportunity to modify the terms of the long-term leases to reduce the balance classified as capital leases. Between late May 2016 and the end of March 2017, Hewlett-Packard Financial Services entered into lease amendments that purported to modify most of the leases between HPES and Hewlett-Packard Financial Services in a manner that would cause those leases to be classified as operating leases. After the closing of the HPES Merger, the Company began assessing the terms of the leases (including the amendments described above). During the second quarter of fiscal 2018, the Company concluded that the long-term capital leases that were amended by Hewlett-Packard Financial Services did not satisfy the requirements for classification as operating leases and as a result should be classified as capital leases as of the closing of the spin-off. Accordingly, as part of the process of determining fair value of these leases as of April 1, 2017, the Company recorded a lease liability of $1.0 billion , assets under capital leases of $654 million , and a $371 million increase to goodwill. The Company is addressing this matter with HPE in a manner consistent with the terms of the Separation Agreement, with any disagreement being treated in a confidential manner under the Separation Agreement, including dispute resolution through executive escalation, mediation and binding arbitration. Under the acquisition method of accounting, total consideration exchanged was: (in millions) Amount Fair value of purchase consideration received by HPE stockholders (1) $ 9,782 Fair value of HPES options assumed by CSC (2) 68 Total consideration transferred $ 9,850 (1) Represents the fair value of consideration received by HPE stockholders to give them 50.1% ownership in the combined company. The fair value of the purchase consideration transferred was based on a total of 141,865,656 shares of DXC common stock distributed to HPE stockholders as of the close of business on the record date ( 141,741,712 after the effect of 123,944 cancelled shares) at CSC's closing price of $69.01 per share on March 31, 2017. (2) Represents the fair value of certain stock-based awards of HPES employees that were unexercised on March 31, 2017, which were converted to DXC stock-based awards. The purchase price allocation for the HPES Merger was finalized during the fourth quarter of fiscal 2018. The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the HPES Merger date is as follows: (in millions) Fair Value Cash and cash equivalents $ 938 Accounts receivable (1) 4,102 Other current assets 530 Total current assets 5,570 Property and equipment 2,581 Intangible assets 6,384 Other assets 1,571 Total assets acquired 16,106 Accounts payable, accrued payroll, accrued expenses, and other current liabilities (4,605 ) Deferred revenue (1,315 ) Long-term debt, net of current maturities (4,806 ) Long-term deferred tax liabilities and income tax payable (1,550 ) Other liabilities (1,322 ) Total liabilities assumed (13,598 ) Net identifiable assets acquired 2,508 Add: Fair value of non-controlling interests (50 ) Goodwill 7,392 Total consideration transferred $ 9,850 (1) Includes aggregate adjustments received from HPE, in accordance with the provisions of the Separation Agreement, of $203 million . As of the period ended March 31, 2018 , the Company made a number of refinements to the April 1, 2017 purchase price allocation as reported June 30, 2017 . These refinements were primarily driven by the Company recording valuation adjustments to certain estimates of fair values which resulted in a decrease in net assets of $638 million . Total assets increased by $1.1 billion , primarily driven by a $137 million increase of accounts receivable; $99 million increase in property and equipment primarily arising from the recognition of $424 million of fixed assets under capital lease, offset by a $318 million reduction in the fair value of assets related to data centers and land; and a $1.3 billion increase in the fair value assessment for customer relationships offset by a $440 million decrease related to developed technology fair value adjustments. Liabilities increased by $1.7 billion primarily driven by an increase in capital lease obligations of $1.0 billion , a $436 million adjustment to deferred revenue primarily related to a valuation adjustment for outsourcing and other customer contracts taking into account continuing performance obligations, an increase of $106 million of debt, and an increase in long-term tax related liabilities of $192 million . Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed at the HPES Merger date. The goodwill recognized with the HPES Merger was attributable to the synergies expected to be achieved by combining the businesses of CSC and HPES, expected future contracts and the acquired workforce. The cost-saving opportunities are expected to include improved operating efficiencies and asset optimization. The goodwill arising from the HPES Merger was allocated to the Company's reportable segments as $2.8 billion to the Global Business Services ("GBS") segment, $2.6 billion to the Global Infrastructure Services ("GIS") segment and $2.0 billion to the United States Public Sector ("USPS") segment. The goodwill is not deductible for tax purposes. See Note 10 - " Goodwill ." Current Assets and Liabilities The Company valued current assets and liabilities, with the exception of the current portion of deferred revenue and capital leases, using existing carrying values as the fair value of those items as of the HPES Merger date. Property and Equipment The acquired property and equipment are summarized in the following table: (in millions) Amount Land, buildings, and leasehold improvements $ 1,470 Computers and related equipment 960 Furniture and other equipment 47 Construction in progress 104 Total $ 2,581 The Company valued acquired property and equipment using predominately the market method, and in certain specific cases, the cost method. Identified Intangible Assets The acquired identifiable intangible assets are summarized in the following table: (in millions) Amount Useful Lives (Years) Customer relationships $ 5,277 10-13 Developed technology 74 2-7 Third-party purchased software 642 2-7 Outsourcing contract costs 368 Contract life Other intangible assets 23 4 Total $ 6,384 The Company valued customer relationships and developed technology using the multi-period excess earnings and relief from royalty methods, respectively. Outsourcing contract costs were recorded at fair value taking into account continuing performance obligation. Restructuring Liabilities The Company acquired $326 million of restructuring liabilities in connection with the HPES Merger, of which $256 million relates to workforce reductions and $70 million relates to facilities costs. These restructuring liabilities are expected to be paid out through 2029. Long-Term Debt Assumed indebtedness included senior notes in the principal amount of $1.5 billion issued in 2017 and $0.3 billion issued in 1999 for total principal amount of $1.8 billion ; a term loan with three tranches all borrowed on March 31, 2017 in an aggregate principal equivalent of $2.0 billion ; and capitalized lease liabilities and other debt. Subsequent to the initial purchase price allocation as reported June 30, 2017 , there was a fair value assessment of the senior notes and term loans as of the HPES Merger date, which resulted in a purchase accounting adjustment that increased debt by $94 million , including $12 million to eliminate historical deferred debt issuance costs, premiums and discounts. Converted capital leases were recorded on the balance sheet at fair value as of April 1, 2017 resulting in a total capital lease obligation of $1.7 billion . Additionally, the Company completed its fair value assessment of certain other debt with a carrying value of $87 million as of the HPES Merger date, which resulted in a purchase accounting adjustment that increased debt by $12 million . Deferred Tax Liabilities The Company valued deferred tax assets and liabilities based on statutory tax rates in the jurisdictions of the legal entities where the acquired non-current assets and liabilities are taxed. Defined Benefit Pension Plans Certain eligible employees, retirees and other former employees of HPES participated in defined benefit pension plans offered by HPE. The plans whose participants were exclusively HPES employees were acquired, while the plans whose participants included both HPES employees and HPE employees were replicated to allow separation of HPES and HPE employees. The resulting separate plans containing only HPES employees were acquired. HPES pension obligations depend on various assumptions. The Company's actuaries remeasured all of the acquired HPES plan obligations as of March 31, 2017. The following table summarizes the balance sheet impact of the pension plans assumed from HPES as a result of the HPES Merger. (in millions) Amount Other assets $ 558 Accrued expenses and other current liabilities (13 ) Other long-term liabilities (547 ) Net amount recorded $ (2 ) The following table summarizes the projected benefit obligation, fair value of the plan assets and the funded status assumed from HPES as a result of the HPES Merger. (in millions) Amount Projected benefit obligation $ (7,413 ) Fair value of plan assets 7,411 Funded status $ (2 ) The following table summarizes the plan asset allocations by asset category for HPES pension plans assumed by the Company as a result of the HPES Merger. Equity securities 22 % Debt securities (1) 72 % Alternatives 5 % Cash and other 1 % Total 100 % (1) Includes liability-driven investments Unaudited and Pro Forma Results of Operations The Company's statements of operations includes the following revenues and net income attributable to HPES since the HPES Merger date: (in millions) Fiscal Year Ended March 31, 2018 Revenues $ 17,423 Net income $ 1,772 The following table provides unaudited pro forma results of operations for the Company for the fiscal year ended March 31, 2017, as if the HPES Merger had been consummated on April 2, 2016, the first day of DXC's fiscal year ended March 31, 2017. These unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. The Company presents these unaudited pro forma results for informational purposes only, and they are not necessarily indicative of what the actual results of operations of DXC would have been if the HPES Merger had occurred at the beginning of the period presented, nor are they indicative of future results of operations. CSC reported its results based on a fiscal year convention that comprised four thirteen-week quarters. HPES reported its results on a fiscal year basis ended January 31. As a consequence of CSC and HPES having different fiscal year-end dates, all references to the unaudited pro forma statement of operations include the results of operations of CSC for the twelve months ended March 31, 2017 and of HPES for the twelve months ended January 31, 2017. (in millions, except per-share amounts) Twelve Months Ended March 31, 2017 Revenues $ 25,394 Net loss (23 ) Net loss attributable to the Company (51 ) Loss per common share: Basic $ (0.18 ) Diluted $ (0.18 ) The unaudited pro forma information above is based on events that are (i) directly attributable to the HPES Merger, (ii) factually supportable, and (iii) are expected to have a continuing impact on the results of operations of DXC. Nonrecurring transaction costs associated with the HPES Merger of $26 million for the twelve months ended March 31, 2018 are not included in the unaudited pro forma information above. Tribridge Acquisition On July 1, 2017, DXC acquired all of the outstanding capital stock of Tribridge Holdings LLC, an independent integrator of Microsoft Dynamics 365, for total consideration of $152 million . The acquisition includes the Tribridge affiliate company, Concerto Cloud Services LLC. The combination of Tribridge with DXC expands DXC’s Microsoft Dynamics 365 global systems integration business. The purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the date of acquisition as follows: $32 million to current assets, $4 million to property and equipment, $62 million to intangible assets other than goodwill, $24 million to current liabilities and $78 million to goodwill. The goodwill is primarily associated with the Company's GBS segment and is tax deductible. The amortizable lives associated with the intangible assets acquired includes customer relationships which have a 12 -year estimated useful life. Fiscal 2017 Acquisitions Xchanging Acquisition On May 5, 2016, CSC acquired Xchanging plc ("Xchanging"), a publicly owned company and a provider of technology-enabled business solutions to organizations in global insurance and financial services, healthcare, manufacturing, real estate and the public sector in a step acquisition. Total consideration paid to and on behalf of the Xchanging shareholders of $693 million (or $492 million net of cash acquired). Transaction costs associated with the acquisition of $17 million were included within Selling, general and administrative expenses. The acquisition expanded the Company's market coverage in the global insurance industry and enabled the Company to offer access to a broader, partner-enriched portfolio of services including property and casualty insurance and wealth management business processing services. The purchase price was allocated to assets acquired and liabilities assumed based upon the determination of fair value at date of acquisition as follows: $396 million to current assets, $99 million to non-current assets, $582 million to intangible assets other than goodwill, $267 million to current liabilities, $516 million to long-term liabilities, $680 million to goodwill, and $281 million to non-controlling interest. The goodwill arising from the acquisition was allocated to the Company's reportable segment of $646 million to GBS and $34 million to GIS segments and is not deductible for tax purposes. The amortizable lives associated with the intangible assets acquired includes developed technology, customer relationships and trade names, which have estimated useful lives of 7 to 8 , 15 years and 3 to 5 years, respectively. Fiscal 2016 Acquisitions UXC Acquisition On February 26, 2016, CSC acquired all of the outstanding capital stock of UXC Limited ("UXC"), a publicly owned IT services company and a leading provider of enterprise application capabilities, consulting, applications management, professional services, connect infrastructure and health services in Australia, for a total purchase consideration of $289 million (net of cash acquired of $13 million ). The acquisition continued the rebalancing of CSC's offering portfolio, strengthening it’s next-generation delivery model, and expanding its client base around the world. Transaction costs associated with the acquisition of $7 million were recorded as Selling, general and administrative expenses. The purchase price was allocated to assets acquired and liabilities assumed as follows: $125 million to current assets, $37 million to noncurrent assets, $91 million to intangible assets other than goodwill, $153 million to current liabilities, $50 million to long-term liabilities and $252 million to goodwill. The amortizable lives associated with the intangible assets acquired includes customer relationships, which have an estimated useful life of 10 years, and software and trade names, both of which have indefinite lives. The goodwill arising from the acquisition was allocated to both of the Company's reportable segments and was not deductible for tax purposes. Fixnetix Acquisition On September 24, 2015, CSC acquired all of the outstanding capital stock of Fixnetix, Limited, a privately held provider of front-office managed trading solutions for capital markets, for total purchase consideration of $112 million . The purchase consideration included cash of $88 million (net of $1 million cash acquired) paid at closing, the estimated fair value of contingent consideration as of the acquisition date of $21 million and $2 million of adjustments to the acquisition final net working capital in the fourth quarter of fiscal 2016. The fair value of the contingent consideration as of March 31, 2018 was zero . Fruition Acquisition On September 17, 2015, CSC acquired all of the outstanding capital stock of Fruition Partners, a privately held provider of technology-enabled solutions for the service management sector for cash consideration of $148 million (net of cash acquired of $2 million ). The acquisition bolstered the Company's ability to offer enterprise and emerging clients an expanded range of cloud-based service-management solutions to improve their business through organizational efficiency and lower operating costs. Pro forma financial information for the acquisitions completed during fiscal 2018, 2017 and 2016, with the exception of the HPES Merger, have not been presented because the acquisitions were neither individually, nor in the aggregate, material to the Company's financial results. |
Divestitures
Divestitures | 12 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures The Company had no material divestitures during fiscal 2018 and 2017. On November 27, 2015, CSC divested its former NPS segment.The NPS Separation was made pursuant to the terms of a master separation and distribution agreement and several other agreements, including an intellectual property ("IP") agreement. Pursuant to the IP matters agreement, CSC granted CSRA Inc. ("CSRA") perpetual, royalty-free, non-assignable licenses to certain software products, trademarks and workflow and design methodologies for an annual net maintenance fee of $30 million per year for each of the five years following the NPS Separation in exchange for maintenance services. The IP matters agreement was amended in February 2017, pursuant to which CSC assigned to CSRA the IP rights CSRA had previously licensed. In exchange, CSRA paid CSC $65 million and was released from the obligation to pay the annual net maintenance fee. During fiscal 2017 and 2016, the Company recognized total revenues of $125 million and $35 million , respectively, for services rendered to CSRA under the IP matters agreement and various commercial agreements. Included in fiscal 2017 revenues was $20 million of revenues under the IP matters agreement which was recorded as deferred revenue and advance contract payments during fiscal 2016. The following is a summary of the operating results of NPS which were reclassified as discontinued operations: Fiscal Year Ended (in millions) April 1, 2016 (1) Revenues $ 2,504 Costs of services 1,935 Selling, general and administrative 52 Depreciation and amortization 90 Restructuring costs 1 Separation and merger costs 103 Interest expense 15 Other income, net (21 ) Income from discontinued operations before income taxes 329 Income tax expense (138 ) Income from discontinued operations, net of tax $ 191 (1) Results for fiscal 2016 reflect NPS's operating results through the NPS Separation date of November 27, 2015. During the fiscal year ended April 1, 2016 the Company incurred $122 million of costs in connection with the NPS Separation, primarily related to professional fees associated with preparation of regulatory filings and separation activities within finance, tax, legal and information system functions. Income from discontinued operations, net of taxes includes $103 million of these costs, and the remaining amount of $19 million was included within loss from continuing operations. As a result of the NPS Separation, no gain or loss on disposition was recognized; however, discontinued operations included the results of the fiscal 2016 sale of Welkin Associates Limited, a wholly owned subsidiary in the NPS segment to a strategic investor for consideration of $34 million on which a gain of $22 million was realized. At the time of disposition, the Welkin divestiture did not qualify to be presented as discontinued operations since it did not represent a strategic shift that would have a major effect on CSC's operations or financial results. The following selected financial information of NPS is included in the statements of cash flows: Fiscal Year Ended (in millions) April 1, 2016 (1) Depreciation $ 75 Amortization $ 15 Capital expenditures $ (75 ) Significant operating non-cash items: Net gain on disposition of business $ 22 Significant investing non-cash items: Capital expenditures through capital lease obligations $ — Capital expenditures in accounts payable $ (7 ) Disposition of assets $ (8 ) (1) Selected financial information for fiscal 2016 reflect cash flows through the Separation date of November 27, 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic EPS are computed using the weighted average number of common shares outstanding during the period. Diluted EPS reflect the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS: Fiscal Years Ended (in millions, except per-share amounts) March 31, 2018 March 31, 2017 April 1, 2016 Net income (loss) attributable to DXC common shareholders: From continuing operations $ 1,751 $ (123 ) $ 71 From discontinued operations — — 180 $ 1,751 $ (123 ) $ 251 Common share information: Weighted average common shares outstanding for basic EPS 284.93 140.39 138.28 Dilutive effect of stock options and equity awards 4.84 — 3.05 Weighted average common shares outstanding for diluted EPS 289.77 140.39 141.33 EPS: Basic Continuing operations $ 6.15 $ (0.88 ) $ 0.51 Discontinued operations — — 1.31 Total $ 6.15 $ (0.88 ) $ 1.82 Diluted Continuing operations $ 6.04 $ (0.88 ) $ 0.50 Discontinued operations — — 1.28 Total $ 6.04 $ (0.88 ) $ 1.78 Certain share based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have had an anti-dilutive effect. The number of awards excluded were as follows: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Stock Options — 3,317,041 2,064,951 RSUs 54,637 845,315 201,581 PSUs 96,029 1,540,152 — |
Receivables
Receivables | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2018 March 31, 2017 Billed trade receivables $ 3,245 $ 732 Unbilled receivables 1,478 402 Other receivables 1,190 509 Total $ 5,913 $ 1,643 The following table summarizes activity for the allowance for doubtful accounts: As of and for Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Beginning balance $ 26 $ 31 $ 26 Additions charged to costs and expenses 45 10 6 Deductions (1) (37 ) (13 ) (3 ) Other (2) 6 (2 ) 2 Ending balance $ 40 $ 26 $ 31 (1) Represents write-offs and recoveries of prior year charges. (2) Includes changes in foreign currency exchange rates and the impact of the AR securitization facility. Sale of Receivables Receivables Securitization Facility On December 21, 2016, CSC established a $250 million accounts receivable securitization facility (the "Receivables Facility") with certain unaffiliated financial institutions (the "Purchasers"). Under the Receivables Facility, the Company and certain of its subsidiaries sell billed and unbilled accounts receivable to CSC Receivables, LLC ("CSC Receivables"), a wholly owned bankruptcy-remote entity. CSC Receivables in turn sells such purchased accounts receivable in their entirety to the Purchasers pursuant to a receivables purchase agreement. Sales of receivables by CSC Receivables occur continuously and are settled on a monthly basis. The proceeds from the sale of these receivables comprise a combination of cash and a deferred purchase price receivable ("DPP"). The DPP is realized by the Company upon the ultimate collection of the underlying receivables sold to the Purchasers. The amount available under the Receivables Facility fluctuates over time based on the total amount of eligible receivables generated during the normal course of business after deducting excess concentrations. Total availability under the Receivables Facility was $188 million and $217 million as of March 31, 2018 and March 31, 2017, respectively. The Receivables Facility terminates on September 14, 2018, but provides for one or more optional one -year extensions, if agreed to by the Purchasers. The Company uses the proceeds from receivables sales under the Receivables Facility for general corporate purposes. The Company has no retained interests in the transferred receivables, other than collection and administrative services and its right to the DPP. The DPP is included in receivables at fair value on the balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature, and as a result no gain or loss on sale of receivables was recorded during fiscal 2018 and 2017. The following table reflects activity of the Receivables Facility: As of and for the Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 (1) Cash proceeds received $ 188 $ 223 Deferred purchase price receivable $ 233 $ 252 Liability recorded due to exceeded maximum funding limit $ — $ 6 (1) Represents activity from the date the Receivables Facility was established, December 21, 2016, through March 31, 2017. The Company’s risk of loss following the transfer of accounts receivable under the Receivables Facility is limited to the DPP outstanding and any short-falls in collections for specified non-credit related reasons after sale. Payment of the DPP is not subject to significant risks other than delinquencies and credit losses on accounts receivable sold under the Receivables Facility. Certain obligations of Sellers under the Receivables Facility and CSC, as initial servicer, are guaranteed by the Company under a performance guaranty, made in favor of an administrative agent on behalf of the Purchasers. However, the performance guaranty does not cover CSC Receivables’ obligations to pay yield, fees or invested amounts to the administrative agent or any of the Purchasers. The following table is a reconciliation of the beginning and ending balances of the DPP: As of and for the Fiscal Year Ended (in millions) March 31, 2018 March 31, 2017 Beginning balance $ 252 $ — Transfers of receivables 2,222 1,195 Collections (2,225 ) (943 ) Fair value adjustment (16 ) — Ending balance $ 233 $ 252 Federal Receivables Sales Facility On July 14, 2017, Enterprise Services LLC, a wholly-owned subsidiary of the Company ("Enterprise"), entered into a Master Accounts Receivable Purchase Agreement (the “Purchase Agreement”) with certain financial institutions (the "Financial Institutions"). The Purchase Agreement established a federal government obligor receivables purchase facility (the “Facility”). Concurrently, the Company entered into a guaranty made in favor of the Financial Institutions, that guarantees the obligations of the sellers and servicers of receivables under the Purchase Agreement. The guaranty does not cover any credit losses under the receivables. In connection with the USPS Separation and Mergers, the Company entered into certain amendments to the guaranty whereby the Company can request to terminate its guaranty at the time of the separation of its USPS business. In accordance with the terms of the Purchase Agreement, on January 23, 2018, the Purchase Agreement was amended to increase the facility limit from $200 million to $300 million in funding based on the availability of eligible receivables and the satisfaction of certain conditions. Under the Facility, the Company sells eligible federal government obligor receivables, including billed and certain unbilled receivables. The Company has no retained interests in the transferred receivables other than collection and administrative functions for the Financial Institutions for a servicing fee. The Facility has a one-year term but may be extended. The Company uses the proceeds from receivables sales under the Facility for general corporate purposes. The Company accounts for these receivable transfers as sales and derecognizes the sold receivables from its balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature, and as a result no gain or loss on sale on sale of receivables was recorded. The Company estimated that its servicing fee was at fair value and therefore, no servicing asset or liability related to these services was recognized as of March 31, 2018 . The following table reflects activity of the Federal Receivables Sales Facility: (in millions) As of and for the Fiscal Year Ended March 31, 2018 Transfers of receivables $ 2,090 Collections $ 1,970 Operating cash flow effect $ 120 Restricted cash (1) $ 68 Outstanding balance $ 188 (1) Represents collections not remitted to the Financial Institutions. |
Fair Value
Fair Value | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding pension assets and derivative assets and liabilities. See Note 13 - " Pension and Other Benefit Plans " and Note Note 7 - " Derivative Instruments " for information about the fair value of our pension assets and derivative assets and liabilities, respectively. There were no transfers between any of the levels during the periods presented. Fair Value Hierarchy (in millions) As of March 31, 2018 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 84 $ 84 $ — $ — Time deposits (1) 114 114 — — Other debt securities (2) 59 — 53 6 Deferred purchase price receivable 233 — — 233 Total assets $ 490 $ 198 $ 53 $ 239 Liabilities: Contingent consideration $ 5 $ — $ — $ 5 Total liabilities $ 5 $ — $ — $ 5 (1) Cost basis approximated fair value due to the short period of time to maturity. (2) Other debt securities include available-for-sale investments with Level 2 inputs that have a cost basis of $42 million and unrealized gains of $11 million . As of March 31, 2017 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 406 $ 406 $ — $ — Deferred purchase price receivable 252 — — 252 Total assets $ 658 $ 406 $ — $ 252 Liabilities: Contingent consideration $ 7 $ — $ — $ 7 Total Liabilities $ 7 $ — $ — $ 7 The fair value of money market funds and money market deposit accounts, and time deposits, reported as cash and cash equivalents, are based on quoted market prices. The fair value of other debt securities, included in other long-term assets, is based on actual market prices. Fair value of the DPP, included in receivables, net, is determined by calculating the expected amount of cash to be received and is principally based on unobservable inputs consisting primarily of the face amount of the receivables adjusted for anticipated credit losses. The fair value of contingent consideration, presented in other liabilities, is based on contractually defined targets of financial performance and other considerations. Other Fair Value Disclosures The carrying amounts of the Company’s financial instruments with short-term maturities, primarily accounts receivable, accounts payable, short-term debt, and financial liabilities included in other accrued liabilities, are deemed to approximate their market values. If measured at fair value, these financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. The Company estimates the fair value of its long-term debt, primarily by using quoted prices obtained from third party providers such as Bloomberg, and by using an expected present value technique that is based on observable market inputs for instruments with similar terms currently available to the Company. The estimated fair value of the Company's long-term debt, excluding capitalized lease liabilities, was $6.1 billion and $2.2 billion as of March 31, 2018 and March 31, 2017 , respectively, as compared with carrying value of $6.0 billion and $2.2 billion as of March 31, 2018 and March 31, 2017 , respectively. If measured at fair value, long-term debt, excluding capitalized lease liabilities would be classified in Level 1 or Level 2 of the fair value hierarchy. Non-financial assets such as goodwill, tangible assets, intangible assets and other contract related long-lived assets are recorded at fair value in the period they are initially recognized, and such fair value may be adjusted in subsequent periods if an event occurs or circumstances change that indicate that the asset may be impaired. The fair value measurements, in such instances, would be classified in Level 3. There were no significant impairments recorded during the fiscal periods covered by this report. The Company is subject to counterparty risk in connection with its derivative instruments, see Note 7 - " Derivative Instruments ." With respect to its foreign currency derivatives, as of March 31, 2018 , there were seven counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is approximately $9 million . The primary financial instruments other than derivatives that could subject the Company to concentrations of credit risk are accounts receivable. The Company periodically reviews its accounts receivable and records provisions for doubtful accounts as needed. The Company’s customer base includes Fortune 500 companies and other significant, well-known companies operating in North America, Europe, Asia and Australia. Credit risk with respect to accounts receivable is minimized because of the nature and diversification of the Company’s customer base. The Company’s credit risk could be affected by customers in bankruptcy proceedings; however, because most of these proceedings involve business reorganizations rather than liquidations, and the nature of the Company’s services are often considered essential to the operational continuity of these customers, the Company is generally able to avoid or mitigate significant adverse financial impact in these cases. As of March 31, 2018 , and March 31, 2017 , no single customer accounted for more than 10% of the Company's accounts receivable balance. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is exposed to interest rate and foreign exchange rate fluctuations. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. Derivatives Designated for Hedge Accounting Cash flow hedges The Company uses interest rate swap agreements designated as cash flow hedges to mitigate its exposure to interest rate risk associated with the variability of cash outflows for interest payments on certain floating interest rate debt, which effectively converts the debt into fixed interest rate debt. As of March 31, 2018 and March 31, 2017 , the Company had interest rate swap agreements with a total notional amount of $635 million and $607 million , respectively. For the fiscal year ended March 31, 2018 , the Company performed both retrospective and prospective hedge effectiveness analyses for these interest rate swaps. The Company applied the long-haul method outlined in ASC 815 “Derivatives and Hedging", to assess retrospective and prospective effectiveness of the interest rate swaps. A quantitative effectiveness analysis assessment of the hedging relationship was performed using regression analysis, and as of March 31, 2018 , the Company determined that the hedging relationship was highly effective. The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce risks related to certain Indian Rupee denominated intercompany obligations and forecasted transactions. The notional amounts of these foreign currency forward contracts as of March 31, 2018 and March 31, 2017 was $634 million and $486 million , respectively. As of March 31, 2018 , the related forecasted transactions extend through February 2020 . For the fiscal years ended March 31, 2018 and March 31, 2017 , the Company performed an assessment at the inception of these cash flow hedge transactions and determined that all critical terms of the hedging instruments and hedged items matched. The Company performs an assessment of critical terms on an on-going basis throughout the hedging period. During the fiscal years ended March 31, 2018 and March 31, 2017 , the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur. As of March 31, 2018 , $15 million of the existing amount of gain reported in AOCI related to these cash flow hedges is expected to be reclassified into earnings within the next 12 months. The pre-tax impact of gain (loss) on derivative instruments designated for hedge accounting recognized in other comprehensive income and net income was not material for the fiscal years ended March 31, 2018 and March 31, 2017 . Derivatives Not Designated For Hedge Accounting The derivative instruments not designated as hedges for purposes of hedge accounting include certain short-term foreign currency forward and option contracts. Derivative instruments that are not designated as hedges are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Foreign currency forward contracts The Company manages the exposure to fluctuations in foreign currencies by using short-term foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and loans. The notional amount of the foreign currency forward contracts outstanding as of March 31, 2018 and March 31, 2017 was $3.1 billion and $2.9 billion , respectively. The following table presents the pretax amounts impacting income related to foreign currency forward contracts: Fiscal Years Ended (in millions) Statement of Operations Line Item March 31, 2018 March 31, 2017 April 1, 2016 Foreign currency forward contracts Other (income) expense, net $ 118 $ (84 ) $ 19 Fair Value of Derivative Instruments All derivative instruments are recorded at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables present the fair values of derivative instruments included in the balance sheets: Derivative Assets As of (in millions) Balance Sheet Line Item March 31, 2018 March 31, 2017 Derivatives designated for hedge accounting: Interest rate swaps Other assets $ 6 $ 5 Foreign currency forward contracts Other current assets 14 27 Total fair value of derivatives designated for hedge accounting $ 20 $ 32 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 4 $ 15 Total fair value of derivatives not designated for hedge accounting $ 4 $ 15 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2018 March 31, 2017 Derivatives designated for hedge accounting: Interest rate swaps Other long-term liabilities $ — $ 1 Foreign currency forward contracts Accrued expenses and other current liabilities 3 — Total fair value of derivatives designated for hedge accounting: $ 3 $ 1 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 6 $ 12 Total fair value of derivatives not designated for hedge accounting $ 6 $ 12 The fair value of foreign currency forward contracts represents the estimated amount required to settle the contracts using current market exchange rates, and is based on the period-end foreign currency exchange rates and forward points as Level 2 inputs. The fair value of interest rate swaps is estimated based on valuation models that use interest rate yield curves as Level 2 inputs. Other risks The Company is exposed to the risk of losses in the event of non-performance by the counterparties to its derivative contracts. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. The Company also enters into enforceable master netting arrangements with some of its counterparties. However, for financial reporting purposes, it is the Company's policy not to offset derivative assets and liabilities despite the existence of enforceable master netting arrangements with some of its counterparties. The following table provides information about the potential effect of such netting arrangements on the Company's derivative instruments: Fair Value as of March 31, 2018 March 31, 2017 (in millions) Assets Liabilities Assets Liabilities Gross amount of derivative instruments recognized in the balance sheets $ 24 $ 9 $ 47 $ 13 Gross amounts not offset in the balance sheets (1) 1 2 1 2 Net amount $ 23 $ 7 $ 46 $ 11 _________________ (1) These amounts represent the fair value of derivative instruments subject to enforceable master netting arrangements that the Company has elected to not offset. The Company's derivative contracts do not require it to hold or post financial collateral. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of (in millions) March 31, 2018 March 31, 2017 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,539 $ 873 Computers and related equipment 4,431 2,695 Furniture and other equipment 349 141 Construction in progress 79 10 7,398 3,719 Less: accumulated depreciation and amortization 3,752 2,816 Property and equipment, net $ 3,646 $ 903 Depreciation expense for fiscal 2018 , 2017 and 2016 was $779 million , $338 million and $383 million , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,560 $ 1,946 $ 1,614 Outsourcing contract costs 1,593 757 836 Customer related intangible assets 6,305 735 5,570 Other intangible assets 90 19 71 Total intangible assets $ 11,548 $ 3,457 $ 8,091 As of March 31, 2017 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 2,347 $ 1,554 $ 793 Outsourcing contract costs 793 475 318 Customer related intangible assets 851 248 603 Other intangible assets 96 16 80 Total intangible assets $ 4,087 $ 2,293 $ 1,794 Total intangible assets amortization was $1,226 million , $320 million and $286 million for fiscal 2018 , 2017 and 2016 , respectively. Total intangible assets amortization included amortization of outsourcing contract cost premiums recorded as reductions of revenues of $41 million , $11 million and $11 million for fiscal 2018 , 2017 and 2016 , respectively. The increase in net and gross carrying value from fiscal 2017 to 2018 was primarily due to the HPES Merger. See Note 2 - " Acquisitions ". During fiscal 2016, the Company sold certain intangible assets with net book value of zero to a third party and recorded a gain on sale of $31 million as a reduction to GIS segment cost of services. There were no similar sales of intangible assets to a third party during fiscal 2018 and fiscal 2017. Estimated future amortization related to intangible assets as of March 31, 2018 is as follows: Fiscal Year (in millions) 2019 $ 1,211 2020 $ 1,118 2021 $ 1,002 2022 $ 858 2023 $ 794 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following tables summarize the changes in the carrying amounts of goodwill, by segment, for the fiscal years ended March 31, 2018 and March 31, 2017 , respectively. (in millions) GBS GIS USPS Total Goodwill, gross $ 2,171 $ 2,446 $ — $ 4,617 Accumulated impairment losses (701 ) (2,061 ) — (2,762 ) Balance as of March 31, 2017, net 1,470 385 — 1,855 Additions 2,889 2,609 2,010 7,508 Foreign currency translation 184 105 — 289 Goodwill, gross 5,244 5,160 2,010 12,414 Accumulated impairment losses (701 ) (2,061 ) — (2,762 ) Balance as of March 31, 2018, net $ 4,543 $ 3,099 $ 2,010 $ 9,652 (in millions) GBS GIS Total Goodwill, gross $ 1,615 $ 2,424 $ 4,039 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of April 1, 2016, net 914 363 1,277 Additions 655 34 689 Foreign currency translation (99 ) (12 ) (111 ) Goodwill, gross 2,171 2,446 4,617 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2017, net $ 1,470 $ 385 $ 1,855 As a result of the HPES Merger, the Company began to report the USPS segment, formerly a component of the HPES business, see Note 18 - " Segment and Geographic Information " for additional information. The fiscal 2018 and 2017 additions to goodwill were due primarily to the acquisitions described in Note 2 - " Acquisitions ". The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances. Goodwill Impairment Analyses Fiscal 2018 The Company’s annual goodwill impairment analysis, which was performed qualitatively as of July 1, 2017, did not result in an impairment charge. At the end of the fiscal 2018, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators, and, therefore, it was unnecessary to perform an interim goodwill impairment test as of March 31, 2018. Fiscal 2017 For the Company’s annual goodwill impairment assessment as of July 2, 2016, the Company chose to bypass the initial qualitative assessment and proceeded directly to the first step of the impairment test for all reporting units. Based on the results of the first step of the impairment test, the Company concluded that the fair value of each reporting unit exceeded its carrying value and therefore the second step of the goodwill impairment test was not required. As of March 31, 2017 , the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment. The Company determined that there have been no such indicators and therefore, it was unnecessary to perform an interim goodwill impairment test as of March 31, 2017 . Fiscal 2016 For the Company’s annual goodwill impairment assessment as of July 4, 2015, the Company chose to bypass the initial qualitative assessment and proceeded directly to the first step of the impairment test for all reporting units. Based on the results of the first step of the impairment test, the Company concluded that the fair value of each reporting unit significantly exceeded its carrying value and therefore the second step of the goodwill impairment test was not required. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income (loss) from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Domestic entities $ 821 $ (157 ) $ (222 ) Entities outside the United States 850 (17 ) 232 Total $ 1,671 $ (174 ) $ 10 On December 22, 2017, the President of the United States signed into law comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Act"). The Act makes significant changes to the Internal Revenue Code of 1986 with varying effective dates. The Act reduces the maximum corporate income tax rate to 21% effective as of January 1, 2018, requires companies to pay a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries, broadens the tax base, generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries, creates a new limitation on the deductibility of interest expense, limits the deductibility of certain executive compensation, and allows for immediate capital expensing of certain qualified property. It also requires companies to pay minimum taxes on foreign earnings and subjects certain payments from U.S. corporations to foreign related parties to additional taxes. As a fiscal year taxpayer, the Company will not be subject to many of the tax law provisions until fiscal year 2019; however, GAAP requires companies to revalue their deferred tax assets and liabilities with resulting tax effects accounted for in the reporting period of enactment including retroactive effects. Section 15 of the Internal Revenue Code stipulates that the Company's fiscal year ending March 31, 2018, has a weighted corporate U.S. federal income tax rate of 31.5% , which is based on the applicable tax rates before and after the effective date of the Act and the number of days in the Company's federal tax year ending on October 31st. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act in the reporting period of the enactment. SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740 "Income Taxes." In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Act. Based on a preliminary assessment of the Act, the Company believes that the most significant impact on the Company’s financial statements are as follows: Reduction of U.S. federal corporate income tax rate: As discussed above, the Act reduces the corporate tax rate to 21% , effective January 1, 2018. For the period ending December 31, 2017 the Company recorded a deferred income tax discrete benefit of $320 million , resulting in a $320 million decrease in net deferred tax liabilities. Based on calculating the deferred tax balances as of March 31, 2018, we recognized an additional measurement-period adjustment of $18 million , with a corresponding adjustment of $18 million to income tax benefit during the period. The effect of the additional measurement-period adjustment on the fiscal 2018 effective tax rate was not material. The Company has recorded a total provisional deferred income tax benefit of $338 million , resulting in a $338 million decrease in net deferred tax liabilities as of March 31, 2018. Due to the Company’s federal tax year ending October 31, 2018 the Company is required to determine the reversal period of the deferred tax assets and liabilities recorded as of March 31, 2018 to finalize the estimate of the rate reduction. The Company has estimated the reversal based on expected changes in the deferred tax balances. The estimate will be finalized prior to the end of the measurement period when the reversal of the deferred tax assets and liabilities is known. Deemed Repatriation Transition Tax: The deemed repatriation one-time transition tax is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of the Company's foreign subsidiaries. To determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate of the federal transition tax in the period of enactment and recorded a provisional income tax expense and related liability of $ 386 million . Based on revised E&P computations and updated non-US income tax amounts that were calculated during the reporting period, we recognized an additional measurement-period adjustment and reduced the transition tax obligation by $25 million , with a corresponding adjustment of $25 million to income tax benefit during the period. The effect of the measurement-period adjustment on the 2018 effective tax rate was not material. The total transition tax obligation to date of $361 million has been recorded, with a corresponding reduction of $361 million to income tax benefit. The transition tax obligation is payable over up to eight years. The Company is continuing to gather additional information to compute the amount of the transition tax, including further analysis regarding the amount and composition of the Company’s and HPES’s historical foreign earnings and non-US income taxes. HPES also has a federal tax year end of October 31 st and therefore the prior year federal tax return has not been finalized. Permanent reinvestment assertion: Beginning in 2018, the Act provides a 100% deduction for dividends received from 10-percent owned foreign corporations by U.S. corporate shareholders, subject to a one-year holding period. Although dividend income is now exempt from U.S. federal tax for U.S. corporate shareholders, companies must still account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries. For the period ending December 31, 2017 the Company recorded a provisional estimate for those subsidiaries for which we were able to make a reasonable estimate of the tax effects of such repatriation for withholding taxes, state taxes, and India DDT of $8 million , $27 million and $80 million , respectively. Based on actual amounts for the fiscal year, we recognized an additional measurement-period adjustment of $16 million . The effect of the measurement-period adjustment on the fiscal 2018 effective tax rate was not material. For those subsidiaries for which we were able to make a reasonable estimate of the tax effects of such repatriation, we have recorded a total provisional estimate for withholding taxes, state taxes, and India DDT of $12 million , $7 million and $80 million , respectively. The Company needs additional time to analyze the foreign tax rules for all of their foreign subsidiaries. In addition, guidance may be released by various state jurisdictions, which could also impact these estimates. Executive compensation : As a result of changes made by the Act, starting with compensation paid in fiscal 2019, Section 162(m) will limit us from deducting compensation, including performance-based compensation, in excess of $1 million paid to anyone who, starting in 2018, serves as the Chief Executive Officer or Chief Financial Officer, or who is among the three most highly compensated executive officers for any fiscal year. The only exception to this rule is for compensation that is paid pursuant to a binding contract in effect on November 2, 2017 that would have otherwise been deductible under the prior Section 162(m) rules. Accordingly, any compensation paid in the future pursuant to new compensation arrangements entered into after November 2, 2017, even if performance-based, will count towards the $1 million fiscal year deduction limit if paid to a covered executive. For the period ending December 31, 2017 the Company’s analysis was incomplete and a provisional estimate was not recorded. In the current period the Company recorded a provisional estimate of $2 million for executive compensation impact, which reduced the income tax benefit. The Company is in process of completing an analysis of the binding contract requirement on the various compensation plans to determine the impact of the law change. Capital expensing: For the period ending December 31, 2017 the Company’s analysis was incomplete and a provisional estimate was not recorded. In the current period the Company recorded a provisional benefit of $87 million based on its intent to fully expense all qualifying expenses. This resulted in a decrease of approximately $87 million to the Company's current income taxes payable and a corresponding increase in its net deferred tax liabilities. The income tax effects for this change in law require further analysis due to the volume of data required to complete the calculations. The Company's accounting for the following elements of the Act is incomplete, and it is not yet able to make reasonable estimates of the effects. Therefore, no provisional adjustments were recorded. Global intangible low taxed income (GILTI): The Act creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (CFCs) must be included currently in the gross income of the CFCs’ U.S. shareholder for taxable years of foreign corporations beginning after December 31, 2017. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Act and the application of ASC 740. Under GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company's selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be for the Company. Because whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends not only on its current structure and estimated future results of global operations, but also its intent and ability to modify its structure and business, the Company is not yet able to reasonably estimate the effect of this provision of the Act in the current reporting period. Therefore, the Company has not made any adjustments related to potential GILTI tax in its financial statements and has not made an accounting policy decision. Base Erosion and Anti-Abuse Tax (BEAT): The Act creates a new minimum tax. For tax years beginning after December 31, 2017, a corporation is potentially subject to tax under the BEAT provision if the federal tax group has sufficient gross receipts and derives a sufficient level of “base erosion tax benefits.” Under the BEAT, a corporation must pay a base erosion minimum tax amount (BEMTA) in addition to its regular tax liability after credits. The BEMTA is generally equal to the excess of (1) a fixed percentage of a corporation’s modified taxable income (taxable income determined without regard to any base erosion tax benefit related to any base erosion payment, and without regard to a portion of its NOL deduction) over (2) its regular tax liability (reduced by certain credits). The fixed percentage is generally 5 percent for taxable years beginning in 2018, 10 percent for years beginning after 2018 and before 2026, and 12.5 percent for years after 2025. The Company is evaluating the impact of this BEAT provision on our current operating model and considering making modifications to our operating model once additional formal guidance is issued by the US tax authorities that will clarify the ambiguities of the BEAT provision. Due to anticipated future guidance to be issued by the IRS, interpretation of the changes in tax law and analysis of the information required to complete the calculations, the amounts recorded as a result of the Act in the period are provisional and subject to material changes. The Company will continue to analyze the Act’s impact on its financial statements and adjust the provisional amounts recorded as our analysis is completed, no later than December 2018. The income tax benefit on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Current: Federal $ 453 $ (32 ) $ (79 ) State 31 14 (22 ) Foreign 247 36 59 731 18 (42 ) Deferred: Federal (850 ) (7 ) (39 ) State (53 ) (1 ) 48 Foreign 61 (84 ) (29 ) (842 ) (92 ) (20 ) Total income tax benefit $ (111 ) $ (74 ) $ (62 ) The current benefit for fiscal 2018 includes $332 million of non-current transition tax. The current (benefit) expense for fiscal 2018 , 2017 and 2016 , includes interest and penalties of $2 million , $(9) million and $(4) million , respectively, for uncertain tax positions. As a result of the HPES Merger and changes in U.S. cash requirements, a deferred tax liability $542 million was recorded for U.S. income taxes based on the estimated historical taxable earnings of the HPES foreign subsidiaries. In addition, the Company recorded an estimated liability of $50 million for India DDT tax based on estimated historical taxable earnings of the HPES India subsidiary. These liabilities were recorded as part of acquisition accounting. As a result of the Act, the Company changed its permanent reinvestment assertion on the remaining CSC foreign subsidiaries and will no longer consider current and accumulated earnings for all non-U.S. subsidiaries permanently reinvested, except for current year Indian earnings. A deferred tax liability of $554 million has been released and the Company's estimated liability for India DDT was increased by $30 million to $80 million to include estimated historical taxable earnings for CSC Indian subsidiaries. During the current period, the Company distributed $153 million of intercompany dividends incurring and paying $31 million of DDT upon distribution. For those investments from which the Company was not able to make a reasonable estimate, it has not recorded any deferred taxes. The Company will record the tax effects of the change in its assertion with respect to these subsidiaries and disclose any unrecognized deferred tax liability for temporary differences related to its foreign investments, if practicable, in the period that it is first able to make a reasonable estimate, no later than December 2018. In connection with the HPES Merger, the Company entered into a tax matters agreement with HPE. HPE generally will be responsible for pre-HPES Merger tax liabilities including adjustments made by tax authorities to HPES U.S. and non-U.S. income tax returns. Likewise, DXC is liable to HPE for income tax receivables and refunds which it receives related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a net payable of $27 million due to $110 million of tax indemnification receivable related to uncertain tax positions net of related deferred tax benefits, $75 million of tax indemnification receivable related to other tax payables and $212 million of tax indemnification payable related to other tax receivables. The major elements contributing to the difference between the U.S. federal statutory tax rate of 31.5% and the effective tax rate ("ETR") for continuing operations are as follows: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Statutory rate 31.5 % (35.0 )% 35.0 % State income tax, net of federal tax 2.5 (4.0 ) (145.7 ) United States Tax Reform (31.7 ) — — Change in Indefinite Reinvestment Assertion 2.6 — — Loss of attributes due to merger 4.0 — — Change in uncertain tax positions (0.1 ) (3.4 ) (685.0 ) Foreign tax rate differential (4.5 ) (41.1 ) (377.4 ) Capitalized transaction costs 1.1 12.1 22.3 Change in valuation allowances (6.0 ) 34.3 743.6 Excess tax benefits for stock compensation (2.3 ) (11.3 ) (230.0 ) Prepaid tax asset amortization 0.3 7.1 78.8 Income Tax and Foreign Tax Credits (6.0 ) (2.0 ) (58.0 ) Other items, net 2.0 0.8 (3.6 ) Effective tax rate (6.6 )% (42.5 )% (620.0 )% In fiscal 2018 , the ETR was primarily impacted by the effects of the Act: • The release of a deferred tax liability relating to the outside basis difference of foreign subsidiaries which increased the income tax benefit and decreased the ETR by $ 554 million and 33.2% , respectively. • The accrual of the one-time transition tax on estimated unremitted foreign earnings which decreased the income tax benefit and increased the ETR by $361 million and 21.6% , respectively. • The remeasurement of deferred tax assets and liabilities as a result of the Act, which increased the income tax benefit and decreased the ETR by $338 million and 20.3% , respectively. In fiscal 2017 , the ETR was primarily impacted by: • A change in the valuation allowance that primarily consists of an aggregate income tax detriment for the increase in the valuation allowances on tax attributes in the United States, Germany and Luxembourg, which decreased the overall income tax benefit and decreased the ETR by $135 million and 78% , respectively. Offset by an income tax benefit from the release of valuation allowances on tax attributes in Denmark, Japan and the United Kingdom which increased the overall income tax benefit and increased the ETR by $75 million and 43% , respectively. • An income tax detriment for transaction costs incurred that are not deductible for tax purposes, which resulted in a decrease to the overall tax benefit and decreased the ETR by $21 million and 12.1% , respectively. • An income tax benefit from excess tax benefits realized from employee share-based payment awards, which resulted in an increase in the overall income tax benefit and increased the ETR by $20 million and 11.3% , respectively. In fiscal 2016 , the ETR was primarily impacted by: • The early adoption of ASU 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” resulted in a tax benefit from the excess tax benefits realized from share options vested or exercised. This increased the overall income tax benefit and the ETR by $23 million and 230% , respectively. • Local losses on investments in Luxembourg (i) increased the valuation allowance and the ETR by $47 million and 470% , respectively, and (ii) decreased the foreign rate differential and ETR by $47 million and by 470% , respectively. • An increase in the overall valuation allowance primarily due to the divestiture of the Company's former NPS business division, which resulted in an increase in the valuation allowances related to state net operating losses and state tax credits. This decreased the overall income tax benefit and ETR by $27 million and 270% , respectively. • The release of a liability for uncertain tax positions following the closure of the U.K. tax audit for fiscal 2010 to 2012. This increased the overall income tax benefit by $58 million and the ETR by 580% . • The Company recognized adjustments to uncertain tax positions in the United States that increased the overall income tax benefit by $24 million and the ETR by 240% , respectively. The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2018 March 31, 2017 Deferred tax assets Employee benefits $ 159 $ 172 Tax loss/credit carryforwards 1,672 1,307 Accrued interest 19 16 Contract accounting 149 89 Other assets 283 83 Total deferred tax assets 2,282 1,667 Valuation allowance (1,442 ) (1,094 ) Net deferred tax assets 840 573 Deferred tax liabilities Depreciation and amortization (1,111 ) (282 ) Investment basis differences (62 ) (103 ) Other liabilities (94 ) (45 ) Total deferred tax liabilities (1,267 ) (430 ) Total net deferred tax assets (liabilities) $ (427 ) $ 143 Income tax related assets are included in the accompanying balance sheets as follows: As of (in millions) March 31, 2018 March 31, 2017 Current: Income tax receivables $ 227 $ 146 $ 227 $ 146 Non-current: Income taxes receivable and prepaid taxes $ 92 $ 50 Deferred tax assets 373 381 $ 465 $ 431 Total $ 692 $ 577 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2018 March 31, 2017 Current: Liability for uncertain tax positions $ (33 ) $ (17 ) Income taxes payable (112 ) (21 ) $ (145 ) $ (38 ) Non-current: Deferred taxes (800 ) (238 ) Income taxes payable (251 ) — Liability for uncertain tax positions (278 ) (185 ) $ (1,329 ) $ (423 ) Total $ (1,474 ) $ (461 ) Significant management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against deferred tax assets. A valuation allowance has been recorded against deferred tax assets of approximately $1.4 billion as of March 31, 2018 due to uncertainties related to the ability to utilize these assets. In assessing whether its deferred tax assets are realizable, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and adjusts the valuation allowance accordingly. In determining whether the deferred tax assets are realizable, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, taxable income in prior carryback years, projected future taxable income, tax planning strategies and recent financial operations. Valuation allowances are evaluated as of the balance sheet date and will be subject to change in each future reporting period as a result of changes in various factors. The net increase in the valuation allowance of $348 million in fiscal 2018 , is primarily due to the acquired valuation allowance balances of HPES of $289 million , current year restructuring costs and losses not benefited in non-U.S. jurisdictions including Germany, Denmark, France, and currency translation of $152 million mainly in Luxembourg; reduced by the release of valuation allowances in non-U.S. jurisdictions and certain state income tax carry-forwards and a write-off of state tax capital losses due to expiration. The release of valuation allowances is due to objectively verifiable positive evidence including improved earnings and three years of cumulative profits outweighing the negative evidence. The following table provides information on the Company's various tax carryforwards: As of March 31, 2018 As of March 31, 2017 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 41 $ — $ 41 2037 $ 65 $ — $ 65 2037 State $ 876 $ — $ 876 2038 $ 911 $ — $ 911 2037 Foreign $ 6,522 $ 6,287 $ 235 2038 $ 4,608 $ 4,537 $ 71 2036 Tax credit carryforwards Federal $ — $ — $ — N/A $ 7 $ — $ 7 2024 State $ 32 $ 7 $ 25 2038 $ 45 $ 10 $ 35 2026 Foreign $ 21 $ — $ 21 2020 $ 10 $ — $ 10 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ 289 $ — $ 289 2018 Foreign $ 240 $ 193 $ 47 2023 $ 235 $ 235 $ — N/A The Company is currently the beneficiary of tax holiday incentives in India and Malaysia, which expire in various fiscal years through 2026 . As a result of these tax holiday incentives, the Company recorded an income tax benefit of approximately $5 million , $1 million and $2 million , during fiscal 2018 , 2017 and 2016 , respectively. The per share effects were $0.02 , $0.01 and $0.02 , for fiscal 2018 , 2017 and 2016 , respectively. The Finance Act of 2012 (the "2012 Finance Act") was signed into law in India on May 28, 2012. The 2012 Finance Act provides for the taxation of indirect foreign investment in India, including on a retroactive basis. The 2012 Finance Act overrides the Vodafone NL ruling by the Supreme Court of India which held that the Indian Tax Authorities cannot assess capital gains taxes on the sale of shares of non-Indian companies that indirectly own shares in an Indian company. The retroactive nature of these changes in law has been strongly criticized and challenged in the Indian courts; however, there is no assurance that such a challenge will be successful. We have engaged in the purchase of shares of foreign companies that indirectly own shares of an Indian company and internal reorganizations involving Indian companies. The Indian tax authorities may seek to apply the provisions of the 2012 Finance Act to these prior transactions and seek to tax us directly or as a withholding agent or representative assessee of the sellers involved in prior acquisitions. We believe that the 2012 Finance Act does not apply to these prior acquisitions and that we have strong defenses against any claims that might be raised by the Indian tax authorities. The Company accounts for income tax uncertainties in accordance with Income Taxes (ASC 740), which prescribes a recognition threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC 740 also provides guidance on the accounting for and disclosure of liabilities for uncertain tax positions, interest and penalties. In accordance with ASC 740, the Company’s liability for uncertain tax positions was as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 Tax $ 270 $ 192 Interest 49 25 Penalties 25 11 Net of tax attributes (33 ) (26 ) Total $ 311 $ 202 The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes): Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Balance at beginning of fiscal year $ 192 $ 180 $ 304 Gross increases related to prior year tax positions 10 14 21 Gross decreases related to prior year tax positions (12 ) (12 ) (101 ) Gross increases related to current year tax positions 7 10 7 Settlements and statute of limitation expirations (19 ) (7 ) (48 ) Acquisitions 90 6 3 Foreign exchange and others 2 1 (6 ) Balance at end of fiscal year $ 270 $ 192 $ 180 The Company’s liability for uncertain tax positions at March 31, 2018 , March 31, 2017 and April 1, 2016 , includes $219 million , $149 million and $122 million , respectively, related to amounts that, if recognized, would affect the effective tax rate (excluding related interest and penalties). The Company recognizes interest accrued related to uncertain tax positions and penalties as a component of income tax expense. During the year ended March 31, 2018, the Company had net increase in interest expense of $2 million ( $2 million net of tax) and net increase in accrued expense for penalties of $0.2 million , and as of March 31, 2018, recognized a liability for interest of $49 million ( $43 million net of tax) and penalties of $25 million . The increase in liability in FY18 compared to FY17 is mostly related to acquired interest and penalties from the acquisition of HPES. During the year ended March 31, 2017, the Company had a net decrease in interest of $8 million (decrease of $9 million net of tax) and no change in accrued penalties and as of March 31, 2017, has recognized a liability for interest of $25 million ( $20 million net of tax) and penalties of $11 million . During the year ended April 1, 2016, the Company had a net increase in interest of $(6) million ( $(4) million net of tax) and a net decrease in accrued penalties of $2 million , and as of April 1, 2016, recognized a liability for interest of $33 million ( $29 million net of tax) and penalties of $11 million . The following table presents the change in interest and penalties from the previous reported period, as well as the liability at the end of each period presented: As of and for the Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 (in millions) Increase (Decrease) Interest $ 2 $ (8 ) $ (6 ) Interest, net of tax $ 2 $ (9 ) $ (4 ) Accrued penalties $ — $ — $ 2 Liability for interest $ 49 $ 25 $ 33 Liability for interest, net of tax $ 43 $ 20 $ 29 Liability for penalties $ 25 $ 11 $ 11 The Company is currently under examination in several tax jurisdictions. A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are: Jurisdiction: Tax Years that Remain Subject to Examination (Fiscal Year Ending): United States – Federal 2005 and forward United States – Various States 2005 and forward Australia 2012 and forward Canada 2010 and forward France 2013 and forward Germany 2010 and forward India 1998 and forward United Kingdom 2013 and forward The IRS is examining CSC's federal income tax returns for fiscal 2008 through 2016. With respect to CSC's fiscal 2008 through 2010 federal tax returns, the Company previously entered into negotiations for a resolution through settlement with the IRS Office of Appeals. The IRS examined several issues for this audit that resulted in various audit adjustments. The Company and the IRS Office of Appeals have an agreement in principle as to some but not all of these adjustments. The Company has agreed to extend the statute of limitations associated with this audit through April 30, 2019. In addition, during the first quarter of fiscal 2018, the Company received a Revenue Agent’s Report with proposed adjustments to CSC's fiscal 2011 through 2013 federal returns. The Company has filed a protest of certain of these adjustments to the IRS Office of Appeals. The IRS is also examining CSC's fiscal 2014 through 2016 federal income tax returns. The Company has not received any adjustments for this cycle. For HPES entities the IRS is examining federal income tax returns for fiscal 2008 through 2012. In addition, HPE entities have received a Revenue Agent's Report with respect to calendar years 2005 through 2008, and these adjustments were protested to the IRS Office of Appeals. The Company continues to believe that its tax positions are more-likely-than-not sustainable and that the Company will ultimately prevail. In addition, the Company may settle certain other tax examinations, have lapses in statutes of limitations, or voluntarily settle income tax positions in negotiated settlements for different amounts than the Company has accrued as uncertain tax positions. The Company may need to accrue and ultimately pay additional amounts for tax positions that previously met a more likely than not standard if such positio |
Debt
Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company's debt: As of (in millions) Interest Rates Fiscal Year Maturities March 31, 2018 March 31, 2017 Short-term debt and current maturities of long-term debt Euro-denominated commercial paper (1) (0.1) - 0.02% (2) 2019 $ 863 $ 646 Current maturities of long-term debt Various 2019 439 55 Current maturities of capitalized lease liabilities 0.3% - 6.7% 2019 771 37 Short-term debt and current maturities of long term debt $ 2,073 $ 738 Long-term debt, net of current maturities GBP term loan 1.0% -1.4% (3) 2019 $ 260 $ 233 EUR term loan 1.75% (4) 2019 493 — USD term loan 1.2% - 2.3% (5) 2021 — 571 AUD term loan 2.9% - 3.1% (6) 2022 210 76 EUR term loan 0.9% (7) 2022 187 — USD term loan 2.2% - 3.1% (8) 2022 899 — $500 million Senior notes 2.875% 2020 502 — $650 million Senior notes 2.3% - 3.0% (9) 2021 646 — $274 million Senior notes (10) 4.45% 2023 278 — $171 million Senior notes (10) 4.45% 2023 173 453 $500 million Senior notes 4.25% 2025 507 — £ 250 million Senior notes 2.75% 2025 346 — $500 million Senior notes 4.75% 2028 509 — $234 million Senior notes (11) 7.45% 2030 277 — $66 million Senior notes (11) 7.45% 2030 79 — Revolving credit facility (12) 1.4% - 1.6% 2021 - 2023 — 678 Lease credit facility 1.9% - 2.9% 2020 - 2023 46 60 Capitalized lease liabilities 0.3% - 6.7% 2019 - 2023 1,525 104 Borrowings for assets acquired under long-term financing 2.3% - 4.0% 2019 - 2022 405 77 Mandatorily redeemable preferred stock outstanding 6% 2023 61 61 Other borrowings 0.5% - 14.0% 2019 - 2037 113 4 Long-term debt 7,516 2,317 Less: current maturities of long-term debt and capitalized lease liabilities 1,210 92 Long-term debt, net of current maturities $ 6,306 $ 2,225 (1) During fiscal 2017, DXC increased the maximum size from €500 million to €1 billion . (2) Approximate weighted average interest rate. (3) Three-month LIBOR rate plus 0.65% . (4) Three-month EURIBOR rate plus 1.75% . (5) At DXC's option, the USD term loan bore interest at a variable rate equal to the adjusted LIBOR for a one, two, three, or six month interest period, plus a margin between 0.75% and 1.50% based on a pricing grid consistent with the Company's outstanding revolving credit facility or the greater of the prime rate, the federal funds rate plus 0.50% , or the adjusted LIBOR for a one-month interest period plus 1.00% , in each case plus a margin of up to 0.50% , based on a pricing grid consistent with the revolving credit facility. (6) Variable interest rate equal to the bank bill swap bid rate for a one, two, three or six-month interest period plus 0.95% - 1.45% based on the published credit ratings of DXC. (7) 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 of between 0.75% and 1.35% , based on published credit ratings of DXC. (8) At DXC's option, the USD term loan bears interest at the Eurocurrency Rate for a one, two, three, or six-month interest period, plus a margin of between 1.00% and 1.75% based on published credit ratings of DXC or the Base Rate plus a margin of between 0.00% and 0.75% , based on published credit ratings of DXC. (9) Three-month LIBOR plus 0.95% . (10) During fiscal 2018, DXC completed an exchange offer, whereby $274 million aggregate principal amount of CSC notes were tendered in exchange for a like aggregate principal amount of DXC notes with like maturity and interest rate. Upon completion of the exchange, $171 million aggregate principal amount of CSC Notes remained outstanding. (11) During fiscal 2018, DXC completed an exchange offer whereby $234 million principal amount of the $300 million Senior notes (the "EDS Notes") were tendered in exchange for a like principal amount of DXC notes with like maturity and interest rate. The remaining $66 million principal amount of the EDS Notes outstanding were held by public noteholders. (12) During fiscal 2018, DXC exercised its option to extend the maturity date and also increased commitments to $3.81 billion , $70 million of which matures in January 2021 and $3.74 billion matures in January 2023 . Senior Notes and Term Loans Interest on the Company's term loans is payable monthly or quarterly in arrears at the election of the borrower. The Company fully and unconditionally guarantees term loans issued by its 100% owned subsidiaries. Interest on the Company's senior notes is payable semi-annually in arrears, except for interest on the £250 million Senior notes due 2025 which is payable annually in arrears, and interest on the $650 million Senior notes due 2021 which is payable quarterly in arrears. Generally, the Company's notes are redeemable at the Company's discretion at the then-applicable redemption premium plus accrued interest. On April 3, 2017, as a result of the HPES Merger, financial covenants were amended and CSC was replaced with DXC as the borrower and guarantor to certain outstanding debt including short-term Euro-denominated commercial paper, senior notes and term loans. In connection with the HPES Merger, DXC entered into an unsecured term loan agreement consisting of a $375 million U.S. dollar term loan maturing in 2020 , a $1.3 billion U.S. dollar term loan maturing in 2022 and a Euro-equivalent of $315 million EUR term loan maturing in 2022 . The U.S. term loan maturing in 2020 and portions of the term loans maturing in 2022 were repaid subsequent to the HPES Merger. DXC assumed pre-existing indebtedness incurred by HPES including 7.45% senior notes due 2030 which were issued at a principal amount of $300 million . During fiscal 2018, in connection with the HPES Merger, DXC completed an offering of senior notes in an aggregate principal amount of $1.5 billion consisting of 2.875% senior notes due 2020 , 4.25% senior notes due 2025 and 4.75% senior notes due 2028 . Additionally, DXC issued 2.75% senior notes due 2025 in an aggregate principal of £250 million , the proceeds of which were used to make prepayments to term loans maturing in 2022 and fully repay the borrowings under revolving credit facilities. Subsequent to March 31, 2018, DXC entered into a senior unsecured term loan credit agreement maturing on May 10, 2019, in an aggregate principal amount of €400 million , the proceeds of which were used to repay the €400 million principal amount outstanding under the EUR term loan due May 12, 2018. The Company has excluded the EUR term loan maturing on May 12, 2018 from short-term debt and current maturities of long term debt. Revolving Credit Facility In connection with the HPES Merger, the Company entered into several amendments to its revolving credit facility agreement pursuant to which DXC replaced CSC as the principal borrower and as the guarantor of borrowings by subsidiary borrowers. As of March 31, 2018 , DXC had no borrowings outstanding under the revolving credit facility. Capital Lease and Financing Obligations Capitalized lease liabilities represent obligations due under capital leases for the use of computers and other equipment. The gross amount of assets recorded under capital leases were $3.7 billion with accumulated amortization of $2.4 billion as of March 31, 2018 , and $0.7 billion with accumulated amortization of $0.6 billion as of March 31, 2017 . The future minimum lease payments required to be made under the capital leases as of March 31, 2018 , are as follows: Fiscal Year (in millions) 2019 $ 829 2020 463 2021 214 2022 104 2023 29 Thereafter — Total minimum lease payments 1,639 Less: Amount representing interest and executory costs (114 ) Present value of net minimum lease payments 1,525 Less: Current maturities of capital lease obligations (771 ) Long-term capitalized lease liabilities $ 754 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, 2018 , are as follows: Fiscal Year (in millions) 2019 $ 439 2020 1,229 2021 754 2022 1,302 2023 515 Thereafter 1,752 Total $ 5,991 |
Pension and Other Benefit Plans
Pension and Other Benefit Plans | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Plans | Pension and Other Benefit Plans The Company offers a number of pension and OPEB plans, life insurance benefits, deferred compensation and defined contribution plans. Most of the Company's pension plans are not admitting new participants; therefore, changes to pension liabilities are primarily due to market fluctuations of investments for existing participants and changes in interest rates. Defined Benefit Plans The Company sponsors a number of defined benefit and post-retirement medical benefit plans for the benefit of eligible employees. The benefit obligations of the Company's U.S. pension, U.S. OPEB, and non-U.S. OPEB plans represent an insignificant portion of the Company's pension and other post-retirement benefit plans. As a result, the disclosures below include the Company's U.S. and non-U.S. pension plans on a global consolidated basis. Eligible employees are enrolled in defined benefit pension plans in their country of domicile. The Contributory defined benefit pension plan in the United Kingdom represents the largest plan. In addition, healthcare, dental and life insurance benefits are also provided to certain non-U.S. employees. A significant number of employees outside the United States are covered by government sponsored programs at no direct cost to the Company other than related payroll taxes. During fiscal 2018, the Company adopted amendments to certain U.K. pension plans which necessitated an interim remeasurement of the plans assets and liabilities as of December 1, 2017. The remeasurement resulted in a net gain of $17 million , comprising a curtailment gain of $40 million and an actuarial loss $23 million . The net gain was recognized within costs of services and selling, general and administrative. The Company accrued $13 million , $1 million and $6 million , for fiscal 2018 , 2017 and 2016 , respectively, as additional contractual termination benefits for certain employees are part of the restructuring plans. These amounts are reflected in the projected benefit obligation and in the net periodic pension cost. Projected Benefit Obligations As of (in millions) March 31, 2018 March 31, 2017 Projected benefit obligation at beginning of year $ 3,297 $ 2,879 Benefit obligation assumed as a result of the HPES merger 7,351 — Service cost 121 23 Interest cost 249 82 Plan participants’ contributions 16 3 Amendments (44 ) — Business/contract acquisitions/divestitures 69 313 Contractual termination benefits 13 1 Settlement/curtailment (65 ) (13 ) Actuarial (gain) loss (332 ) 413 Benefits paid (447 ) (120 ) Foreign currency exchange rate changes 1,170 (283 ) Other (14 ) (1 ) Projected benefit obligation at end of year $ 11,384 $ 3,297 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2018 March 31, 2017 Discount rate 2.5 % 2.5 % Rates of increase in compensation levels 2.0 % 2.2 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2018 March 31, 2017 Fair value of plan assets at beginning of year $ 2,998 $ 2,597 Assets assumed as a result of the HPES merger 7,411 — Actual return on plan assets 371 483 Employer contribution 83 123 Plan participants’ contributions 16 3 Benefits paid (447 ) (120 ) Business/contract acquisitions/divestitures (2 ) 199 Contractual termination benefits 4 6 Plan settlement (22 ) (13 ) Foreign currency exchange rate changes 1,176 (279 ) Other (14 ) (1 ) Fair value of plan assets at end of year $ 11,574 $ 2,998 Funded status at end of year $ 190 $ (299 ) During fiscal 2017, the Company, along with the Trustee of CSC Computer Sciences Ltd. Main Pension Scheme (“CSC UK Pension”), the Trustee of the Rebus Pension Scheme (“Xchanging UK Pension”), and a financial institution (the "Institution"), entered into a multi-party arrangement whereby the Company’s corporate campus in Aldershot, U.K. (the "Property") was monetized for approximately $85 million in proceeds net of stamp duties paid. The Company concurrently contributed $ 85 million to the CSC UK Pension and Xchanging UK Pension plans as a special discretionary employer contribution. The transaction was executed by contributing the Property to a property limited partnership and all such LP interests were contributed to a Jersey Unit Trust owned 1% by the Company and 99% by the Institution. Under the structured sale transaction, the Company entered into a 15 -year master lease arrangement as master tenant, at approximately $4 million rent per year. Under U.S. GAAP, due to the continuing interest of the Company as master tenant, residual profit participation retained by the Company, Xchanging UK Pension and CSC UK Pension, and the Company's ownership of the general partner of the property limited partnership that owns the Property, the structured sale transaction resulted in accounting treatment as a financing transaction. As a consequence, the Property remains accounted for as an asset on the balance sheet of the Company at historical cost basis and accumulated depreciation thereon, with no gain or loss recorded. A corresponding $85 million liability was recorded as other long-term liabilities on the Company's balance sheet. Selected Information As of (in millions) March 31, 2018 March 31, 2017 Other assets 1,118 73 Accrued expenses and other current liabilities (28 ) (7 ) Non-current pension obligations (879 ) (342 ) Other long-term liabilities - OPEB (21 ) (23 ) Net amount recorded $ 190 $ (299 ) Accumulated benefit obligation $ 11,241 $ 3,262 Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets (in millions) March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Projected benefit obligation $ 2,488 $ 996 $ 2,250 $ 938 Accumulated benefit obligation $ 2,363 $ 963 $ 2,162 $ 913 Fair value of plan assets $ 1,552 $ 624 $ 1,338 $ 574 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Service cost $ 121 $ 23 $ 25 Interest cost 249 81 82 92 Expected return on assets (534 ) (161 ) (179 ) Amortization of transition obligation 1 1 1 Amortization of prior service costs (18 ) (17 ) (19 ) Contractual termination benefit 13 1 6 Settlement/curtailment gain (42 ) — (2 ) Recognition of actuarial (gain) loss (178 ) 87 127 Net periodic pension (income) expense $ (388 ) $ 16 $ 51 Estimated prior service credit of $16 million will be amortized from AOCI into net periodic pension cost over the next fiscal year. The weighted-average rates used to determine net periodic pension cost were: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Discount or settlement rates 2.5 % 3.1 % 3.0 % Expected long-term rates of return on assets 4.9 % 6.3 % 6.3 % Rates of increase in compensation levels 2.7 % 2.6 % 2.8 % The following is a summary of amounts in AOCI, before tax effects: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 Prior service cost (298 ) (269 ) Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2019 $ 86 Benefit Payments: 2019 $ 299 2020 $ 298 2021 $ 314 2022 $ 380 2023 $ 353 2024 and thereafter $ 2,087 Fair Value of Plan Assets The tables below set forth the fair value of plan assets by asset category within the fair value hierarchy: As of March 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Equity: Global/International Equity commingled funds $ 465 $ 1,978 $ — $ 2,443 Global equity mutual funds 8 333 — 341 U.S./North American Equity commingled funds 3 46 — 49 Fixed Income: U.S. Government funds — 1 — 1 Non-U.S. Government funds 2 54 — 56 Fixed income commingled funds 3 6,092 — 6,095 Fixed income mutual funds 3 — — 3 Alternatives: Other Alternatives (1) 4 1,228 874 2,106 Hedge Funds (2) — 2 — 2 Other Assets — — 3 3 Insurance contracts — 160 10 170 Cash and cash equivalents 300 5 — 305 Totals $ 788 $ 9,899 $ 887 $ 11,574 As of March 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Equity: Global/International Equity commingled funds $ 1 $ 710 $ — $ 711 Global equity mutual funds 1 251 — 252 U.S./North American Equity commingled funds 1 39 — 40 Fixed Income: Non-U.S. Government funds — 3 — 3 Fixed income commingled funds 1 991 — 992 Fixed income mutual funds 3 — — 3 Alternatives: Other Alternatives (1) 3 412 343 758 Hedge Funds (2) — 1 — 1 Insurance contracts — 131 5 136 Cash equivalents 94 8 — 102 Totals $ 104 $ 2,546 $ 348 $ 2,998 (1) Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities. (2) Represents investments in diversified fund of hedge funds. Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows: (in millions) Balance as of April 1, 2016 $ 315 Actual return on plan assets held at the reporting date 60 Purchases, sales and settlements 9 Changes due to exchange rates (36 ) Balance as of March 31, 2017 348 Actual return on plan assets held at the reporting date 34 Purchases, sales and settlements 443 Changes due to exchange rates 62 Balance as of March 31, 2018 $ 887 Domestic and global equity accounts are categorized as Level 1 if the securities trade on national or international exchanges and are valued at their last reported closing price. Equity assets in commingled funds reporting a net asset value are categorized as Level 2 and valued using broker dealer bids or quotes of securities with similar characteristics. Fixed income accounts are categorized as Level 1 if traded on a publicly quoted exchange or as level 2 if investments in corporate bonds are primarily investment grade bonds, generally priced using model-based pricing methods that use observable market data as inputs. Broker dealer bids or quotes of securities with similar characteristics may also be used. Alternative investment fund securities are categorized as Level 1 if held in a mutual fund or in a separate account structure and actively traded through a recognized exchange, or as Level 2 if they are held in commingled or collective account structures and are actively traded. Alternative investment fund securities are classified as Level 3 if they are held in Limited Company or Limited Partnership structures or cannot otherwise be classified as Level 1 or Level 2. Other assets represent property holdings by certain pension plans. As above, the property holdings represent a master lease arrangement entered into by DXC UK and certain UK pension plans as a financing transaction. Insurance contracts purchased to cover benefits payable to retirees are valued using the assumptions used to value the projected benefit obligation. Cash equivalents that have quoted prices in active markets are classified as Level 1. Short-term money market commingled funds are categorized as Level 2 and valued at cost plus accrued interest which approximates fair value. Plan Asset Allocations As of Asset Category March 31, 2018 March 31, 2017 Equity securities 25 % 33 % Debt securities 53 % 33 % Alternatives 18 % 25 % Cash and other 4 % 9 % Total 100 % 100 % Plan assets are held in a trust that includes commingled funds subject to country specific regulations and invested primarily in commingled funds. For the U.K. pension plans, the Company's largest pension plans by assets and projected liabilities, a target allocation by asset class was developed to achieve their long-term objectives. Asset allocations are monitored closely and investment reviews regarding asset strategy are conducted regularly with internal and external advisors. The Company’s investment goals and risk management strategy for plan assets evaluates a number of factors, including the time horizon of the plans’ obligations. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification in order to reduce risk, yet produces a reasonable amount of return on investment over the long term. Sufficient liquidity is maintained to meet benefit obligations as they become due. Third party investment managers are employed to invest assets in both passively-indexed and actively-managed strategies. Equities are primarily invested broadly in domestic and foreign companies across market capitalizations and industries. Fixed income securities are invested broadly, primarily in government treasury, corporate credit, mortgage backed and asset backed investments. Alternative investment allocations are included in selected plans to achieve greater portfolio diversity intended to reduce the overall volatility risk of the plans. Plan asset risks include longevity, inflation, and other changes in market conditions that could reduce the value of plan assets. Also, a decline in the yield of high quality corporate bonds may adversely affect discount rates resulting in an increase in DXC's pension and other post-retirement obligations. These risks, among others, could cause the plans’ funded status to deteriorate, resulting in an increased reliance on Company contributions. Derivatives are permitted although their current use is limited within traditional funds and broadly allowed within alternative funds. Derivatives are used for inflation risk management and within the liability driven investing strategy. The Company also has investments in insurance contracts to pay plan benefits in certain countries. Return on Assets The Company consults with internal and external advisors regarding the expected long-term rate of return on assets. The Company uses various sources in its approach to compute the expected long-term rate of return of the major asset classes expected in each of the plans. DXC utilizes long-term, asset class return assumptions of typically 30 years, which are provided by external advisors. Consideration is also given to the extent active management is employed in each asset class and also to management expenses. A single expected long-term rate of return is calculated for each plan by assessing the plan's expected asset allocation strategy, the benefits of diversification therefrom, historical excess returns from actively managed traditional investments, expected long-term returns for alternative investments and expected investment expenses. The resulting composite rate of return is reviewed by internal and external parties for reasonableness. Retirement Plan Discount Rate The U.K. discount rate is based on the yield curve approach using the U.K. Aon Hewitt GBP Single Agency AA Corporates-Only Curve. Defined Contribution Plans The Company sponsors defined contribution plans for substantially all U.S. employees and certain foreign employees. The plans allow employees to contribute a portion of their earnings in accordance with specified guidelines. Matching contributions are made annually in January to participants employed on December 31 of the prior year and vest in one year . However, if a participant retires from the Company or dies prior to December 31, the participant will be eligible to receive matching contributions approximately 30 days following separation from service. During fiscal 2018 , 2017 and 2016 , the Company contributed $245 million , $124 million and $132 million , respectively, to its defined contribution plans. As of March 31, 2018 , plan assets included 4,184,335 shares of the Company’s common stock. Deferred Compensation Plans Effective as of the HPES Merger, DXC assumed sponsorship of the Computer Sciences Corporation Deferred Compensation Plan, which was renamed the “DXC Technology Company Deferred Compensation Plan” (the “DXC DCP”), and adopted the Enterprise Services Executive Deferred Compensation Plan (the “ES DCP”). Both plans are non-qualified deferred compensation plans maintained for a select group of management, highly compensated employees and non-employee directors. The DXC DCP covers eligible employees who participated in CSC’s Deferred Compensation Plan prior to the HPES Merger. The ES DCP covers eligible employees who participated in the HPE Executive Deferred Compensation Plan prior to the HPES Merger. Both plans allow participating employees to defer the receipt of current compensation to a future distribution date or event above the amounts that may be deferred under DXC’s tax-qualified 401(k) plan, the DXC Technology Matched Asset Plan. Neither plan provides for employer contributions. As of April 3, 2017, the ES DCP does not admit new participants. Certain management and highly compensated employees are eligible to defer all, or a portion of, their regular salary that exceeds the limitation set forth in Internal Revenue Section 401(a)(17) and all or a portion of their incentive compensation. Non-employee directors are eligible to defer up to 100% of their cash compensation. The liability under the plan, which is included in Other long-term liabilities in the Company's balance sheets, amounted to $65 million as of March 31, 2018 and $67 million as of March 31, 2017 . The Company’s expense under the Plan totaled $4 million , $5 million and $3 million , for fiscal 2018 , 2017 and 2016 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Description of Capital Stock The Company has authorized share capital consisting of 750,000,000 shares of common stock, par value $0.01 per share, and 1,000,000 shares of preferred stock, par value $0.01 per share. Each share of common stock is equal in all respects to every other share of common stock of the Company. Each share of common stock is entitled to one vote per share at each annual or special meeting of stockholders for the election of directors and upon any other matter coming before such meeting. Subject to all the rights of the preferred stock, dividends may be paid to holders of common stock as and when declared by the Board of Directors. The Company's charter requires that preferred stock must be all of one class but may be issued from time to time in one or more series, each of such series to have such full or limited voting powers, if any, and such designations, preferences and relative, participating, optional or other special rights or qualifications, limitations or restrictions as provided in a resolution adopted by the Board of Directors. Each share of preferred stock will rank on a parity with each other share of preferred stock, regardless of series, with respect to the payment of dividends at the respectively designated rates and with respect to the distribution of capital assets according to the amounts to which the shares of the respective series are entitled. Share Repurchase Program On April 3, 2017, DXC announced the establishment of a share repurchase program approved by the Board of Directors with an initial authorization of up to $2.0 billion for future repurchases of outstanding shares of DXC common stock. An expiration date has not been established for this repurchase plan. The shares repurchased are retired immediately and included in the category of authorized but unissued shares. The excess of purchase price over par value of the common shares is allocated between additional paid-in capital and retained earnings. Shares repurchased, through both open market purchases and accelerated share repurchase ("ASR") arrangements, are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount (In millions) 2018 Open market purchases 1,537,782 $89.41 $ 137 2016 Open market purchases 3,587,224 $48.28 $ 173 ASR (1) 162,908 $0.00 — Total 3,750,132 $46.18 $ 173 (1) Reflects shares received during fiscal 2016 as settlement of a fiscal 2015 ASR arrangement. Treasury Stock Transactions In fiscal 2018 , 2017 and 2016 the Company accepted 332,558 , 72,231 and 48,416 shares of its common stock, respectively, in lieu of cash in connection with the exercise of stock options. In fiscal 2018 , 2017 and 2016 , the Company accepted 684,389 , 195,201 and 716,999 shares of its common stock, respectively, in lieu of cash in connection with the tax withholdings associated with the release of common stock upon vesting of restricted stock and RSUs. As a result, the Company holds 1,016,947 treasury shares as of March 31, 2018. Treasury shares held before the HPES Merger were extinguished in connection with the HPES Merger. Dividends Dividends Declared (in millions, except per share amounts) Per Common Share Total Unpaid at Fiscal Year End Fiscal 2018 $ 0.72 $ 209 $ 51 Fiscal 2017 $ 0.56 $ 80 $ 20 Fiscal 2016 (1) $ 2.99 $ 421 $ 19 (1) In connection with the NPS Separation (see Note 3 - " Divestitures "), CSC paid a special cash dividend on November 30, 2015 of $2.25 per share. Payment of the special dividend was made to holders of common stock on the Record Date who received shares of CSRA common stock in the distribution. Accumulated Other Comprehensive Income (Loss) The following table shows the changes in accumulated other comprehensive income (loss), net of taxes: (in millions) Foreign Currency Translation Adjustments Cash Flow Hedges Available-for-sale Securities Pension and Other Post-retirement Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance at April 3, 2015 $ (316 ) $ (2 ) $ — $ 339 $ 21 Current-period other comprehensive (loss) income (83 ) 1 — 1 (81 ) Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — (20 ) (20 ) Transfer to CSRA — — — (31 ) (31 ) Balance at April 1, 2016 $ (399 ) $ (1 ) $ — $ 289 $ (111 ) Current-period other comprehensive (loss) income (59 ) 21 — (2 ) (40 ) Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — (11 ) (11 ) Balance at March 31, 2017 $ (458 ) $ 20 $ — $ 276 $ (162 ) Current-period other comprehensive (loss) income 197 (11 ) 9 — 195 Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — 25 25 Balance at March 31, 2018 $ (261 ) $ 9 $ 9 $ 301 $ 58 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Employee Incentives As a result of the HPES Merger, all outstanding CSC awards of stock options, stock appreciation rights, restricted stock units ("CSC RSUs"), including performance-based restricted stock units, relating to CSC common stock granted under the 2011 Omnibus Incentive Plan, the 2007 Employee Incentive Plan and the 2010 Non-Employee Director Incentive Plan (the “CSC Equity Incentive Plans”) held by CSC employees and non-employee directors were converted into an adjusted award relating to DXC common shares subject to the same terms and conditions after the HPES Merger as the terms and conditions applicable to such awards prior to the HPES Merger. Under the terms of the CSC Equity Incentive Plans and the individual award agreements, all unvested equity incentive awards, including all stock options and CSC RSUs held by all participants under the plans, including its named executive officers and directors, are subject to accelerated vesting in whole or in part upon the occurrence of a change in control or upon the participant’s termination of employment on or after the occurrence of a change in control under certain circumstances ("CIC events"). As a result of CIC events triggered by the HPES Merger, approximately 3.6 million of unvested awards vested on April 1, 2017 , and as a result, $26 million of incremental stock compensation expense was recognized. CSC options granted in fiscal 2017 vested 33% upon the HPES Merger and the remaining 67% were converted into DXC RSUs based on the accounting value of the options. These RSUs will vest on the second and third anniversaries of the original option grant date. For equity incentive awards granted by HPE under HPE equity incentive plans to HPES employees prior to the HPES Merger, outstanding options (vested and unvested) and unvested RSU awards were converted upon the HPES Merger into economically equivalent DXC option and RSU awards, with terms and conditions substantially the same as the terms of such awards prior to the HPES Merger. In March 2017, prior to the HPES Merger, the board of directors and shareholders of HPES approved DXC’s 2017 Omnibus Incentive Plan (the “DXC Employee Equity Plan”), DXC’s 2017 Non-Employee Director Incentive Plan (the “DXC Director Equity Plan”) and DXC’s 2017 Share Purchase Plan (“DXC Share Purchase Plan”). The terms of the DXC Employee Equity Plan and DXC Director Equity Plans are substantially similar to the terms of the CSC Equity Incentive Plans. The former allows DXC to grant stock options (including incentive stock options), stock appreciation rights, restricted stock, RSUs and PSUs, and cash awards intended to qualify for the performance-based compensation exemption to the $1 million deduction limit under Section 162(m) of the Internal Revenue Code (collectively the "Awards"). Awards are typically subject to vesting over the 3 -year period following the grant date. Vested stock options are generally exercisable for a term of 10 years from the grant date. All of DXC’s employees are eligible for awards under the plan. The Company issues authorized but previously unissued shares upon the granting of stock options and the settlement of RSUs and PSUs. The Compensation Committee of the Board of Directors (the "Board") has broad authority to grant awards and otherwise administer the DXC Employee Equity Plan. The plan became effective March 30, 2017 and will continue in effect for a period of 10 years thereafter, unless earlier terminated by the Board. The Board has the authority to amend the plan in such respects as it deems desirable, subject to approval of DXC’s stockholders for material modifications. The DXC Share Purchase Plan allows DXC’s employees located in the United Kingdom to purchase shares of DXC’s common stock at the fair market value of such shares on the applicable purchase date. There were 1,474 shares purchased under this plan during fiscal 2018. The Board has reserved for issuance shares of DXC common stock, par value $0.01 per share, under each of the plans as detailed below: As of March 31, 2018 Reserved for issuance Available for future grants DXC Employee Equity Plan 34,200,000 22,302,423 DXC Director Equity Plan 230,000 123,634 DXC Share Purchase Plan 250,000 248,526 Total 34,680,000 22,674,583 The Company recognized share-based compensation expense for fiscal 2018 , 2017 and 2016 as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Total share-based compensation cost $ 93 $ 75 $ 46 Related income tax benefit $ 21 $ 25 $ 17 Total intrinsic value of options exercised $ 136 $ 73 $ 46 Tax benefits from exercised stock options and awards $ 84 $ 34 $ 62 The Company uses the Black-Scholes-Merton model in determining the fair value of stock options granted. The weighted average fair values of stock options granted during fiscal 2017 and 2016 were $13.00 and $9.00 per share, respectively. There were no stock options granted during fiscal 2018. In calculating the compensation expense for its stock incentive plans, the Company used the following weighted average assumptions: Fiscal Years Ended March 31, 2017 April 1, 2016 Risk-free interest rate 1.60 % 1.81 % Expected volatility 29 % 31 % Expected term (in years) 6.09 6.23 Dividend yield 1.56 % 1.39 % As a result of the NPS Separation in the third quarter fiscal 2016, most stock awards issued by the Company were modified, including acceleration of vesting of certain awards and the issuance of new CSRA awards under the basket method, whereby awards granted prior to fiscal 2016 in CSC equity were converted into two awards: an award in an adjusted CSC equity award and a CSRA equity award. In the case of stock options, the number of options and the exercise price were adjusted for the impact of the Separation. The conversions were structured to generally preserve the intrinsic value of the awards immediately prior to the Separation. There was no incremental stock compensation expense recognized as a result of the modification of the awards. Stock Options The Company’s stock options vest one-third annually on each of the first three anniversaries of the grant date. Stock options are generally granted for a term of ten years. Information concerning stock options granted under stock incentive plans was as follows: Number of Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of April 3, 2015 5,556,309 $ 46.08 5.93 $ 107 Granted 1,052,129 $ 30.70 Issued due to NPS Separation modification 1,614,465 $ 28.40 Exercised (2,372,109 ) $ 19.27 $ 46 Canceled/Forfeited (434,578 ) $ 28.59 Expired (49,595 ) $ 20.87 Outstanding as of April 1, 2016 5,366,621 $ 24.83 7.06 $ 51 Granted 2,450,976 $ 50.91 Exercised (2,544,955 ) $ 21.84 $ 73 Canceled/Forfeited (448,505 ) $ 36.94 Expired (56,741 ) $ 14.36 Outstanding as of March 31, 2017 4,767,396 $ 38.70 8.01 $ 145 Granted — $ — HPE options converted to DXC options at HPES Merger 2,654,970 $ 46.56 CSC options converted to RSUs due to HPES Merger (1,521,519 ) $ 51.00 Exercised (2,916,045 ) $ 40.39 $ 136 Canceled/Forfeited (14,890 ) $ 69.52 Expired (36,411 ) $ 36.69 Outstanding as of March 31, 2018 2,933,501 $ 37.62 5.24 $ 185 Vested and expected to vest in the future as of March 31, 2018 2,930,263 $ 37.60 5.24 $ 184 Exercisable as of March 31, 2018 2,905,801 $ 37.43 5.23 $ 183 As of March 31, 2018 Options Outstanding Options Exercisable Range of Option Exercise Price Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Number Exercisable Weighted Average Exercise Price $10.35 - $29.70 748,574 $ 21.74 4.05 748,574 $ 21.74 $30.31 - $48.46 1,421,166 $ 36.57 5.33 1,421,166 $ 36.57 $49.24 - 86.17 763,761 $ 55.13 6.26 736,061 $ 55.03 2,933,501 2,905,801 The total fair value of stock options vested during fiscal 2018 , 2017 and 2016 was $22 million , $8 million and $13 million , respectively. The cash received from stock options exercised during fiscal 2018 , 2017 and 2016 was $98 million , $54 million and $82 million , respectively. As of March 31, 2018 , there was $1 million of unrecognized compensation expense related to unvested stock options, net of expected forfeitures. The cost is expected to be recognized over a weighted-average period of 2.18 years. Restricted Stock Units RSUs represent the right to receive one share of DXC common stock upon a future settlement date, subject to vesting and other terms and conditions of the award, plus any dividend equivalents accrued during the award period. In general, if the employee’s status as a full-time employee is terminated prior to the vesting of the RSU grant in full, then the RSU grant is automatically canceled on the termination date and any unvested shares and dividend equivalents are forfeited. Certain executives were awarded service-based "career share" RSUs for which the shares are settled over the 10 anniversaries following the executive's separation from service as a full-time employee, provided the executive complies with certain non-competition covenants during that period. The Company also grants PSUs, which generally vest over a period of three years. The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified financial performance criteria over a three -year period. If the specified performance criteria are met, awards are settled for shares of DXC common stock and dividend equivalents upon the filing with the SEC of the Annual Report on Form 10-K for the last fiscal year of the performance period. PSU awards include the potential for accelerated vesting of 25% of the shares granted after each of the first and second fiscal years if certain of the Company's performance targets are met early, and are subject to final vesting based on the participant's continued employment through the end of the three -year performance period. Compensation expense during the performance period is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria and is adjusted to the extent the expected achievement changes. In the table below, such awards are reflected at the number of shares originally granted. Information concerning RSUs (including PSUs) granted under the stock incentive plans, was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of April 3, 2015 2,579,675 $ 48.70 Granted 3,234,197 $ 27.97 Issued due to NPS Separation modification 419,160 $ 29.95 Settled (1,783,664 ) $ 28.87 Canceled/Forfeited (851,369 ) $ 40.97 Outstanding as of April 1, 2016 3,597,999 $ 29.25 Granted 1,150,185 $ 47.70 Settled (602,467 ) $ 27.29 Canceled/Forfeited (434,732 ) $ 32.86 Outstanding as of March 31, 2017 3,710,985 $ 34.86 Granted 1,828,667 $ 82.34 HPE RSUs converted to DXC RSUs due to HPES Merger 95,816 $ 69.34 Options converted to RSUs due to HPES Merger 609,416 $ 32.58 Settled (1,934,446 ) $ 35.93 Canceled/Forfeited (324,822 ) $ 59.34 Outstanding as of March 31, 2018 3,985,616 $ 54.61 As of March 31, 2018 , there was $136 million of unrecognized compensation expense related to unvested RSUs and PSUs, net of expected forfeitures. The cost is expected to be recognized over a weighted-average period of 2 years. Non-employee Director Incentives The Company has one stock incentive plan which authorizes the issuance of stock options, restricted stock and other share-based incentives to non-employee directors upon terms approved by the Company’s Board of Directors. As of March 31, 2018 , 123,634 shares of DXC common stock remained available for the grant of future RSUs or other share-based incentives to nonemployee directors. RSU awards to non-employee directors are granted at a price of $0 . For RSU awards granted in fiscal 2014 and thereafter, RSUs vest and settle at the earlier of (i) the one -year anniversary of the grant date, or (ii) the date of the Company's first Annual Meeting of the Stockholders held after the grant date. Alternatively, settlement of the RSU may be deferred per election of the non-employee director. For awards granted in fiscal 2013 and prior, vested RSUs were automatically settled for shares of DXC common stock and dividend equivalents when the non-employee director ceases to be a director of the Company. At the holder’s election, the RSUs may be settled (i) in their entirety, upon the day the holder ceases to be a director, or (ii) in substantially equal amounts upon the first five , ten or fifteen anniversaries of such termination of service. Information concerning RSUs granted to non-employee directors was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of April 3, 2015 143,986 $ 30.02 Granted 65,188 $ 31.75 Settled (107,878 ) $ 33.11 Canceled/Forfeited (12,250 ) $ 33.96 Outstanding as of April 1, 2016 89,046 $ 27.00 Granted 33,600 $ 47.35 Settled (32,080 ) $ 28.58 Canceled/Forfeited (4,800 ) $ 30.31 Outstanding as of March 31, 2017 85,766 $ 34.19 Granted 22,900 $ 84.40 Settled (39,980 ) $ 45.25 Canceled/Forfeited (2,300 ) $ 85.35 Outstanding as of March 31, 2018 66,386 $ 43.08 |
Cash Flows
Cash Flows | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flows | Cash Flows Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Cash paid for: Interest $ 288 $ 103 $ 124 Taxes on income, net of refunds $ 376 $ 63 $ 65 Non-cash activities: Operating: Prepaid assets acquired under long-term financing $ 209 $ — $ — Investing: Capital expenditures in accounts payable and accrued expenses $ 46 $ 43 $ 42 Capital expenditures through capital lease obligations $ 664 $ 52 $ 47 Assets acquired under long-term financing $ 238 $ 87 $ 1 Financing: Dividends declared but not yet paid $ 51 $ 20 $ 19 Stock issued for the acquisition of HPES $ 9,850 $ — $ — Settlement of SEC Investigation During fiscal 2016, CSC's previously disclosed agreed-upon settlement with the SEC was formally approved by the SEC. The settlement became effective on June 5, 2015 and the Company paid a penalty of $190 million on June 11, 2015. The penalty is reflected within net cash provided by operating activities in the statement of cash flows for the fiscal year ended April 1, 2016. |
Other Income_ Expense, Net
Other Income/ Expense, Net | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income/ Expense, Net | Other Income/ Expense, Net The following table summarizes components of other income, net: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Foreign currency gain $ (71 ) $ (8 ) $ (1 ) Other gain (11 ) (2 ) (8 ) Totals $ (82 ) $ (10 ) $ (9 ) Foreign currency gain resulted from the movement of foreign currency exchange rates on the Company’s foreign currency denominated assets and liabilities, related hedges including options to manage its exposure to economic risk and the cost of the Company’s hedging program. Other gain during fiscal 2018 consists of investment income and during fiscal 2016 primarily included a $6 million gain on sale of certain assets. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industry and geographic region. 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. As a result of the HPES Merger, the HPES legacy reportable segments were combined with GBS and GIS, and the HPES U.S. public sector business, USPS, is now a separate operating segment. DXC's operating segments are the same as its reportable segments: GBS, GIS, and USPS. In addition, DXC management changed its primary segment performance measure to segment profit from the previously used consolidated segment operating income. Prior periods presented have been restated to reflect this change. The accounting policies of the reportable segments are the same as those described in Note 1 - “ Summary of Significant Accounting Policies .” Global Business Services GBS provides innovative technology solutions that help its clients address key business challenges and accelerate digital transformations tailored to each client’s industry and specific objectives. GBS offerings include: • Enterprise, Cloud Applications and Consulting. GBS provides industry, business process systems integration and technical delivery experience to maximize value from enterprise application portfolios. GBS also helps clients accelerate their digital transformations and business results with industry, business, technology and complex integration services. • Application Services. GBS's comprehensive services helps clients modernize, develop, test and manage their applications. • Analytics. GBS's portfolio of analytics services and robust partner ecosystem helps clients gain rapid insights and accelerate their digital transformation journeys. • Business Process Services. GBS provides seamless digital integration and optimization of front and back office processes, including its Agile Process Automation approach. • Industry Software and Solutions. GBS's industry-specific solutions enable businesses to quickly integrate technology, transform their operations and develop new ways of doing business. GBS's vertical-specific IP includes insurance, healthcare and life sciences, travel and transportation, and banking and capital markets solutions. Global Infrastructure Services GIS provides a portfolio of offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for clients. GIS offerings include: • Cloud and Platform Services. GIS helps clients maximize their private cloud, public cloud and legacy infrastructures, as well as securely manage their hybrid environments. • Workplace and Mobility . GIS's workplace, mobility and Internet of Things ("IoT") services provides a consumer-like experience with enterprise security and instant connectivity for its clients. • Security. GIS's security solutions help predict attacks, proactively respond to threats, ensure compliance and protect data, applications, infrastructure and endpoints. United States Public Sector USPS delivers IT services and business solutions to all levels of government in the United States. USPS’s enterprise-based offerings and solutions for its U.S. government customers include: • Cloud, Platform and IT Outsourcing ("ITO Services"). Through USPS's cloud, platform and ITO solutions, USPS is able to help its public sector clients transform to hybrid infrastructure and bridge private and public cloud environments into their legacy infrastructure. • Enterprise and Cloud Applications. USPS's applications services and program excellence solutions for its U.S. government customers covers four areas: application modernization and transformation; application development; testing and digital assurance; and application management. • Enterprise Security . USPS's enterprise security solutions include building security infrastructures into the fabric of U.S. government agencies’ digital enterprises. • Mobility and Workplace . USPS offers, through three primary focus areas, a full range of services for converged mobility and workplace management: (i) Mobile Enterprise Services allows clients to manage their mobile environment as a service with solutions for procurement, provisioning, refresh, proactive Enterprise Mobility Management (“EMM”), hardware and software support, security, and business usage analytics; (ii) Virtual Desktop and Application Services untethers data and desktop applications from physical user devices to give workforces and partners secure access to desktops, applications, and data from any device, anywhere; and (iii) Workplace Device Services transforms traditional workplace environments to deliver a comprehensive, secure, flexible and configurable environment that provides lightweight management of desktops, laptops and mobile. • Analytics . USPS offers a complete portfolio of analytics services such as analytics platforms, information governance, artificial intelligence and advisory services, to rapidly provide insights and accelerate its public sector customers’ digital transformation. On October 11, 2017, DXC announced its plan to spin off its USPS business. See Note 1 - " Summary of Significant Accounting Policies ." Segment Measures The following table summarizes operating results regularly provided to the chief operating decision maker by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS USPS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2018 Revenues $ 9,254 $ 12,479 $ 2,823 $ 24,556 $ — $ 24,556 Segment Profit $ 1,563 $ 1,699 $ 417 $ 3,679 $ (180 ) $ 3,499 Depreciation and amortization (1) $ 99 $ 1,082 $ 99 $ 1,280 $ 93 $ 1,373 Fiscal Year Ended March 31, 2017 Revenues $ 4,173 $ 3,434 $ — $ 7,607 $ — $ 7,607 Segment Profit $ 492 $ 306 $ — $ 798 $ (180 ) $ 618 Depreciation and amortization (1) $ 107 $ 399 $ — $ 506 $ 64 $ 570 Fiscal Year Ended April 1, 2016 Revenues $ 3,637 $ 3,469 $ — $ 7,106 $ — $ 7,106 Segment Profit $ 417 $ 239 $ — $ 656 $ (251 ) $ 405 Depreciation and amortization (1) $ 124 $ 491 $ — $ 615 $ 43 $ 658 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $591 million , $77 million , and $0 million for fiscal 2018, 2017, and 2016, respectively. Reconciliation of Reportable Segment Profit to Consolidation The Company's management uses segment profit as the measure for assessing performance of its segments. Segment profit is defined as segment revenues less segment cost of services, selling, general and administrative, and depreciation and amortization (excluding amortization of acquired intangible assets). 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 and integration-related costs, amortization of acquired intangible assets and debt extinguishment costs. Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Profit Total profit for reportable segments $ 3,679 $ 798 $ 656 All other loss (180 ) (180 ) (251 ) Interest income 89 35 38 Interest expense (335 ) (117 ) (123 ) Restructuring costs (803 ) (238 ) (23 ) Pension and OPEB actuarial and settlement gains 220 (87 ) (99 ) Amortization of acquired intangible assets (591 ) (77 ) — Transaction and integration-related costs (408 ) (308 ) (93 ) Debt extinguishment costs — — (95 ) Income (loss) from continuing operations, before taxes $ 1,671 $ (174 ) $ 10 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 is not disclosed. Revenues by country are based on the location of the selling business unit. Property and equipment and total assets information is based on the physical location of the assets. Geographic revenues, property and equipment and total assets were as follows: Fiscal Year Ended March 31, 2018 (in millions) United States United Kingdom Australia Other Europe Other International Total Revenues $ 10,838 $ 3,392 $ 1,694 $ 5,409 $ 3,223 $ 24,556 Property and Equipment, net $ 1,553 $ 535 $ 191 $ 465 $ 902 $ 3,646 Total Assets $ 16,986 $ 9,756 $ 591 $ 4,726 $ 1,862 $ 33,921 Fiscal Year Ended March 31, 2017 United States United Kingdom Australia Other Europe Other International Total Revenues $ 2,986 $ 1,482 $ 921 $ 1,594 $ 624 $ 7,607 Property and Equipment, net $ 389 $ 235 $ 58 $ 134 $ 87 $ 903 Total Assets $ 4,925 $ 1,019 $ 978 $ 358 $ 1,383 $ 8,663 Fiscal Year Ended April 1, 2016 United States United Kingdom Australia Other Europe Other International Total Revenues $ 3,057 $ 1,570 $ 483 $ 1,474 $ 522 $ 7,106 Property and Equipment, net $ 466 $ 244 $ 63 $ 157 $ 95 $ 1,025 Total Assets $ 3,330 $ 1,053 $ 703 $ 1,580 $ 1,070 $ 7,736 No single customer exceeded 10% of the Company’s revenues during fiscal 2018 , fiscal 2017 or fiscal 2016 . |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Restructuring Costs The Company recorded restructuring costs, net of reversals, of $803 million , $238 million and $23 million for fiscal 2018 , 2017 and 2016 , respectively. The costs recorded during fiscal 2018 were largely the result of implementing the Fiscal 2018 Plan, as described below. The composition of restructuring liabilities by financial statement line items is as follows: As of (in millions) March 31, 2018 March 31, 2017 Accrued expenses and other current liabilities $ 371 $ 171 Other long-term liabilities 156 6 Total $ 527 $ 177 Summary of Restructuring Plans Fiscal 2018 Plan In June 2017, management approved a post-HPES Merger restructuring plan to optimize the Company's operations in response to a continuing business contraction (the "Fiscal 2018 Plan"). The additional restructuring initiatives are intended to reduce the company's core structure and related operating costs, improve its competitiveness, and facilitate the achievement of acceptable and sustainable profitability. The Fiscal 2018 Plan focuses mainly on optimizing specific aspects of global workforce, increasing the proportion of work performed in low cost offshore locations and re-balancing the pyramid structure. Additionally, this plan included global facility restructuring, including a global data center restructuring program. Fiscal 2017 Plan In May 2016, the Company initiated a restructuring plan to realign the Company's cost structure and resources to take advantage of operational efficiencies following recent acquisitions. During the fourth quarter of Fiscal 2017, the Company expanded the plan to strengthen the Company's competitiveness and to optimize the workforce by increasing work performed in low-cost locations (the "Fiscal 2017 Plan"). Total costs incurred to date under the Fiscal 2017 Plan total $ 216 million , comprising $ 207 million in employee severance and $ 9 million of facilities costs. Fiscal 2016 Plan In September 2015, the Company initiated a restructuring plan to optimize utilization of facilities and right-size overhead organizations as a result of CSC's separation of its former NPS segment (the "Fiscal 2016 Plan"). No additional costs are expected to be expensed under this plan. Total costs incurred to date under the Fiscal 2016 Plan total $ 57 million , comprising $ 24 million in employee severance and $ 33 million of facilities costs. Fiscal 2015 Plan In June 2014, the Company initiated a restructuring plan to optimize the workforce in high cost markets, particularly in Europe, address the Company's labor pyramid and right shore its labor mix (the "Fiscal 2015 Plan"). No additional costs are expected to be expensed under this plan. Total costs incurred to date under the Fiscal 2015 Plan total $ 228 million , comprising $ 220 million in employee severance and $ 8 million of facilities costs. Acquired Restructuring Liabilities As a result of the HPES Merger, DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors. Restructuring activities, summarized by plan year, were as follows: Restructuring Liability as of March 31, 2017 Acquired Balance Costs Expensed, (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2018 Fiscal 2018 Plans Workforce Reductions $ — n/a $ 626 $ (10 ) $ (368 ) $ 10 $ 258 Facilities Costs — n/a 214 (4 ) (108 ) 2 104 Total $ — n/a $ 840 $ (14 ) $ (476 ) $ 12 $ 362 Fiscal 2017 Plan Workforce Reductions $ 155 n/a $ (32 ) $ (2 ) $ (112 ) $ 10 $ 19 Facilities Costs 6 n/a — — (5 ) 2 3 Total $ 161 n/a $ (32 ) $ (2 ) $ (117 ) $ 12 $ 22 Fiscal 2016 Plan Workforce Reductions $ 8 n/a $ (2 ) $ 1 $ (4 ) $ — $ 3 Facilities Costs 5 n/a — — (3 ) — 2 Total $ 13 n/a $ (2 ) $ 1 $ (7 ) $ — $ 5 Fiscal 2015 Plan Workforce Reductions $ 3 n/a $ — $ — $ (2 ) $ — $ 1 Facilities Costs — n/a — — — — — Total $ 3 n/a $ — $ — $ (2 ) $ — $ 1 Acquired Liabilities Workforce Reductions n/a $ 256 $ — $ (2 ) $ (153 ) $ 9 $ 110 Facilities Costs n/a 70 (3 ) (3 ) (37 ) — 27 Total n/a $ 326 $ (3 ) $ (5 ) $ (190 ) $ 9 $ 137 (1) Costs expensed, net of reversals include $34 million , $3 million , and $3 million of costs reversed from the Fiscal 2017 Plan, Fiscal 2016 Plan and Acquired liabilities, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. Restructuring Liability as of April 1, 2016 Costs Expensed, Net of Reversals (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2017 Fiscal 2017 Plan Workforce Reductions $ — $ 239 $ (6 ) $ (79 ) $ 1 $ 155 Facilities Costs — 9 — (3 ) — 6 Total $ — $ 248 $ (6 ) $ (82 ) $ 1 $ 161 Fiscal 2016 Plan Workforce Reductions $ 29 $ (3 ) $ — $ (17 ) $ (1 ) $ 8 Facilities Costs 30 (4 ) — (20 ) (1 ) 5 Total $ 59 $ (7 ) $ — $ (37 ) $ (2 ) $ 13 Fiscal 2015 Plan Workforce Reductions $ 29 $ (3 ) $ — $ (22 ) $ (1 ) $ 3 Facilities Costs — — — — — — Total $ 29 $ (3 ) $ — $ (22 ) $ (1 ) $ 3 (1) Costs expensed, net of reversals include $7 million and $3 million of costs reversed from the Fiscal 2016 Plan and Fiscal 2015 Plan, respectively. (2) Pension benefit augmentations recorded as a pension liability. (3) Foreign currency translation adjustments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has operating leases for the use of certain real estate and equipment. Substantially all operating leases are non-cancelable or cancelable only through payment of penalties. Lease payments are typically based upon the period of the lease but may include payments for insurance, maintenance and property taxes. There are no purchase options on operating leases at favorable terms. Most real estate leases have one or more renewal options. Certain leases on real estate are subject to annual escalations for increases in utilities and property taxes. Lease rental expense amounted to $841 million , $146 million and $152 million , for the fiscal years ended March 31, 2018 , March 31, 2017 and April 1, 2016 , respectively. Minimum fixed rentals required for the next five years and thereafter under operating leases in effect at March 31, 2018 , were as follows: Fiscal year (in millions) Real Estate Equipment 2019 $ 374 $ 331 2020 281 242 2021 225 80 2022 234 7 2023 146 1 Thereafter 763 — Minimum fixed rentals 2,023 661 Less: Sublease rental income (187 ) — Totals $ 1,836 $ 661 The Company signed long-term purchase agreements with certain software, hardware, telecommunication and other service providers to obtain favorable pricing and terms for services and products that are necessary for the operations of business activities. Under the terms of these agreements, the Company is contractually committed to purchase specified minimums over periods ranging from 1 to 6 years. If the Company does not meet the specified minimums, the Company would have an obligation to pay the service provider all, or a portion, of the shortfall. Minimum purchase commitments as of March 31, 2018 were as follows: Fiscal year Minimum Purchase Commitment (1) (in millions) 2019 $ 1,946 2020 1,913 2021 390 2022 237 2023 202 Thereafter 54 Total $ 4,742 (1) A significant portion of the minimum purchase commitments in fiscal 2019 and 2020 relate to the amounts committed under the HPE preferred vendor agreements. In the normal course of business, the Company may provide certain clients with financial performance guarantees, and at times performance letters of credit or surety bonds. In general, the Company would only be liable for the amounts of these guarantees in the event that non-performance by the Company permits termination of the related contract by the Company’s client. The Company believes it is in compliance with its performance obligations under all service contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on its consolidated results of operations or financial position. The Company also uses stand-by letters of credit, in lieu of cash, to support various risk management insurance policies. These letters of credit represent a contingent liability and the Company would only be liable if it defaults on its payment obligations on these policies. The following table summarizes the expiration of the Company’s financial guarantees and stand-by letters of credit outstanding as of March 31, 2018 : (in millions) Fiscal 2019 Fiscal 2020 Fiscal 2021 and Thereafter Totals Surety bonds $ 308 $ 19 $ 18 $ 345 Letters of credit 170 41 313 524 Stand-by letters of credit 13 16 7 36 Totals $ 491 $ 76 $ 338 $ 905 The Company generally indemnifies licensees of its proprietary software products against claims brought by third parties alleging infringement of their intellectual property rights, including rights in patents (with or without geographic limitations), copyrights, trademarks and trade secrets. DXC’s indemnification of its licensees relates to costs arising from court awards, negotiated settlements, and the related legal and internal costs of those licensees. The Company maintains the right, at its own cost, to modify or replace software in order to eliminate any infringement. The Company has not incurred any significant costs related to licensee software indemnification. Contingencies Vincent Forcier v. Computer Sciences Corporation and The City of New York: On October 27, 2014, the United States Attorney’s Office for the Southern District of New York and the Attorney General for the State of New York filed complaints-in-intervention on behalf of the United States and the State of New York, respectively, against CSC and The City of New York. This action arose out of a qui tam complaint originally filed under seal in 2012 by Vincent Forcier, a former employee of CSC. The complaints allege that from 2008 to 2012 New York City and CSC, in its role as fiscal agent for New York City’s Early Intervention Program ("EIP"), a federal program that provides services for infants and toddlers with manifest or potential developmental delays, violated the federal and state False Claims Acts and various common law standards by allegedly orchestrating a billing fraud against Medicaid through the misapplication of default billing codes and the failure to exhaust private insurance coverage before submitting claims to Medicaid. The New York Attorney General’s complaint also alleges that New York City and CSC failed to reimburse Medicaid in certain instances where insurance had paid a portion of the claim. The lawsuits seek treble statutory damages, other civil penalties and attorneys’ fees and costs. On January 26, 2015, CSC and the City of New York moved to dismiss Forcier’s amended qui tam complaint as well as the federal and state complaints-in-intervention. In June 2016, the Court dismissed Forcier’s amended complaint in its entirety. With regard to the complaints-in-intervention, the Court dismissed the federal claims alleging misuse of default diagnosis codes when the provider had entered an invalid code, and the state claims alleging failure to reimburse Medicaid when claims were subsequently paid by private insurance. The Court denied the motions to dismiss with respect to the federal and state claims relating to (i) submission of insurance claims with a code signifying that the patient’s policy ID was unknown, and (ii) submission of claims to Medicaid after the statutory deadline for payment by private insurance had passed, and state common law claims. In accordance with the ruling, the United States and the State of New York each filed amended complaints-in-intervention on September 6, 2016. In addition to reasserting the claims upheld by the Court, the amended complaints assert new claims alleging that the compensation provisions of CSC’s contract with New York City rendered it ineligible to serve as a billing agent under state law. On November 9, 2016, CSC filed motions to dismiss the amended complaints in their entirety. On August 10, 2017, the Court granted in part and denied in part the motions to dismiss, allowing the remaining causes of action to proceed. On January 9, 2018, the Company answered the complaints, and asserted a counterclaim against the State of New York on a theory of contribution and indemnification. On January 30, 2018, the State of New York filed a motion to dismiss the Company’s counterclaim. The motion is fully briefed and under consideration by the Court. The Parties participated in a non-binding mediation on November 29, 2017, and settlement discussions are continuing. Commencement of discovery has been deferred by the parties pending settlement negotiations. The Company believes that these claims are without merit and intends to continue to defend itself vigorously. Washington, DC Navy Yard Litigation: In December 2013, a wrongful death action was filed in U.S. District Court for the Middle District of Florida against HP Enterprise Services, LLC, now known as Enterprise Services, LLC (“ES”) and others in connection with the September 2013 Washington, DC Navy Yard shooting that resulted in the deaths of 12 individuals. The perpetrator was an employee of The Experts, ES’s now terminated subcontractor on ES’s IT services contract with the U.S. Navy (a contract served by USPS). A total of 15 lawsuits arising out of the shooting have been filed. All have been consolidated in the U.S. District Court for the District of Columbia. ES filed motions to dismiss, which the Court has granted in part and denied in part. Fact discovery is closed. The parties are exploring settlement avenues. Strauch Fair Labor Standards Act Collective Action: On July 1, 2014, plaintiffs Joseph Strauch, Timothy Colby, Charles Turner, and Vernon Carre filed an action in the U.S. District Court for the District of Connecticut on behalf of themselves and a putative nationwide collective of CSC system administrators, alleging CSC’s failure to properly classify these employees as non-exempt under the federal Fair Labor Standards Act ("FLSA"). Plaintiffs allege similar state-law Rule 23 class claims pursuant to Connecticut and California statutes, including the Connecticut Minimum Wage Act, the California Unfair Competition Law, California Labor Code, California Wage Order No. 4-2001 and the California Private Attorneys General Act. Plaintiffs claim double overtime damages, liquidated damages, pre- and post-judgment interest, civil penalties, and other state-specific remedies. In 2015 the Court entered an order granting conditional certification under the FLSA of the collective of over 4,000 system administrators, and notice of the right to participate in the FLSA collective action was mailed to the system administrators. Approximately 1,000 system administrators, prior to the announced deadline, filed consents with the Court to participate in the FLSA collective. On June 30, 2017, the Court granted Rule 23 certification of a Connecticut state-law class and a California state-law class consisting of professional system administrators and associate professional system administrators. Senior professional system administrators were found not to qualify for Rule 23 certification under the state-law claims. On July 14, 2017, the Company petitioned the Second Circuit Court of Appeals for permission to file an appeal of the Rule 23 decision. That petition was denied on November 21, 2017. As a result of the Court's findings in its Rule 23 certification order, the parties entered into a stipulation to decertify the senior professional system administrators from the FLSA collective. On August 2, 2017, the Court approved the stipulation, and the FLSA collective action is currently made up of approximately 700 individuals who held the title of associate professional or professional system administrator. A jury trial commenced on December 11, 2017. On December 20, 2017, the jury returned a verdict in favor of plaintiffs, finding that the Company had misclassified the class of employees as exempt under federal and state laws, and finding that it had done so willfully. The Court will determine damages and address post-trial motions in further proceedings. The Company disagrees with the verdict and intends to continue to defend itself vigorously, including by appealing the verdict and the final judgment of the Court. Computer Sciences Corporation v. Eric Pulier, et al.: On May 12, 2015, CSC and its wholly owned subsidiary, ServiceMesh Inc. ("SMI"), filed a civil complaint in the Court of Chancery of the State of Delaware against Eric Pulier, the former CEO of SMI, which had been acquired by CSC on November 15, 2013. Following the acquisition, Mr. Pulier signed a retention agreement with SMI pursuant to which he received a grant of restricted stock units of CSC and agreed to be bound by CSC’s rules and policies, including CSC’s Code of Business Conduct. Mr. Pulier resigned from SMI on April 22, 2015 amid allegations that he had engaged in fraudulent transactions with two employees of the Commonwealth Bank of Australia Ltd. (“CBA”). The original complaint against Mr. Pulier asserted claims for fraud, breach of contract and breach of fiduciary duty. In an amended complaint, CSC named TechAdvisors, LLC and Shareholder Representative Services LLC ("SRS") as additional defendants. In ruling on a motion to dismiss filed by Mr. Pulier, the Court dismissed CSC’s claim for breach of the implied covenant of good faith, but allowed substantially all of the remaining claims to proceed. Mr. Pulier asserted counter-claims for breach of contract, fraud, negligent representation, rescission, and violations of the California Blue Sky securities law. With the exception of the claim for breach of his retention agreement, the Court dismissed in whole or in part each of Mr. Pulier’s counterclaims. On December 17, 2015, CSC entered into a settlement agreement with the majority of the former equityholders of SMI, as well as with SRS acting in its capacity as the agent and attorney-in-fact for the settling equityholders. Pursuant to the settlement agreement, CSC received $16.5 million , which amount was equal to the settling equityholders’ pro rata share of the funds remaining in escrow from the transaction, which was recorded as an offset to selling, general and administrative costs in CSC’s statements of operations for the fiscal year ended March 31, 2016. On February 20, 2017, CSC, SRS and the former equityholders of SMI who remain named defendants entered into a partial settlement agreement by which CSC received payment of some of the funds remaining in escrow. On July 20, 2017, the Court granted a motion by the United States for a 90-day stay of discovery pending the completion of a criminal investigation. On September 27, 2017, a grand jury empaneled by the United States District Court for the Central District of California returned an indictment against Pulier, charging him with conspiracy, securities and wire fraud, obstruction of justice, and other violations of federal law (United States v. Eric Pulier, CR 17-599-AB). The Government sought an extension of the stay which the Delaware Court granted on November 3, 2017. The civil action is now stayed pending resolution of the criminal case. Law enforcement officials in Australia have brought bribery-related charges against the two former CBA employees. One of these has since pled guilty, and in 2016 received a sentence of imprisonment. In 2016, the United States Attorney’s Office for the Central District of California announced similar criminal charges against this same CBA employee for securities fraud and wire fraud. In April 2018 the other former CBA employee was committed to stand trial in the Australian criminal courts. The Company is cooperating with and assisting the Australian and U.S. authorities in their investigations. On February 17, 2016, Mr. Pulier filed a complaint in Delaware Chancery Court against CSC and its subsidiary - CSC Agility Platform, Inc., formerly known as SMI - seeking advancement of his legal fees and costs. On May 12, 2016, the Court ruled that CSC Agility Platform - as the successor to SMI - is liable for advancing 80% of Mr. Pulier’s fees and costs in the underlying civil action. Mr. Pulier has also filed a complaint for advancement of the legal fees and costs incurred in connection with his defense of criminal investigations by the U.S. Government and other entities. On March 30, 2017, Mr. Pulier filed a motion for judgment on the pleadings in this fee advancement matter. Mr. Pulier's motion for judgment on the pleadings and other advancement-related issues were argued before the Court on August 2, 2017, and, on August 7, 2017, the Court ruled substantially in Mr. Pulier's favor. On January 30, 2018, the Court reduced the Company’s advancement obligation to only 80% of the criminal defense fees and costs sought by Mr. Pulier. In undertakings previously provided to SMI, Mr. Pulier agreed to repay all amounts advanced to him if it should ultimately be determined that he is not entitled to indemnification. Cisco Systems Inc. and Cisco Systems Capital Corporation v. Hewlett-Packard Co.: On August 24, 2015, Cisco Systems, Inc. (“Cisco”) and Cisco Systems Capital Corporation (“Cisco Capital”) filed an action against Hewlett Packard Co., now known as HP Inc. ("HP") in California Superior Court, Santa Clara County, for declaratory judgment and breach of contract in connection with a contract to utilize Cisco products and services, and to finance the services through Cisco Capital. HP terminated the contract, and the parties dispute the calculation of the proper cancellation credit. On December 18, 2015, Cisco filed an amended complaint that abandoned the claim for breach of contract set forth in the original complaint, and asserted a single cause of action for declaratory relief concerning the proper calculation of the cancellation credit. On January 19, 2016, HP answered the complaint and filed a counterclaim for breach of contract and declaratory judgment. A court-ordered mediation took place on August 30, 2017, and a second on February 13, 2018, but no resolution was achieved. Discovery is completed, and the trial is scheduled to begin on June 11, 2018. DXC is the party in interest in this matter pursuant to the Separation and Distribution Agreement between the then Hewlett-Packard Co. and HPE and the subsequent Separation and Distribution Agreement between HPE and DXC. Kemper Corporate Services, Inc. v. Computer Sciences Corporation: In October 2015, Kemper Corporate Services, Inc. (“Kemper”) filed a demand for arbitration against CSC with the American Arbitration Association (“AAA”), alleging that CSC breached the terms of a 2009 Master Software License and Services Agreement and related Work Orders (the “Agreement”) by failing to complete a software translation and implementation plan by certain contractual deadlines. Kemper claimed breach of contract, seeking approximately $100 million in damages measured in part by the amount of the fees paid under the contract, as well as pre-judgment interest, and in the alternative claimed rescission of the Agreement. CSC answered the demand for arbitration denying Kemper’s claims and asserting a counterclaim for unpaid invoices for services rendered by CSC. A single arbitrator conducted an evidentiary hearing on the merits of the claims and counterclaims in April 2017. Oral argument took place on August 28, 2017. On October 2, 2017, the arbitrator issued a partial final award, finding for Kemper on its breach of contract theory, awarding Kemper $84.2 million in compensatory damages plus prejudgment interest, denying Kemper’s claim for rescission as moot, and denying CSC’s counterclaim. Kemper moved on October 10, 2017, in federal district court in Texas to confirm the award. On November 16, 2017, the arbitrator issued a Final Award which reiterated his findings of fact and law, calculated the amount of prejudgment interest, and awarded Kemper its costs of arbitration including reasonable attorneys’ fees and expenses. On December 6, 2017, the Company filed a motion to vacate the award in federal district court in New York. A week later, the New York court stayed the action in deference to the Texas court’s decision as to which venue was more appropriate to address the vacatur arguments. On January 12, 2018, the Company appeared in the Texas action seeking a stay of the confirmation proceedings or a transfer of venue to New York. On March 2, 2018, the Texas court denied the venue transfer motion. The pending vacatur motion was accordingly transferred to the Texas court, and a new memorandum of law in support of the motion was filed in that jurisdiction on March 30, 2018. According to the briefing schedule set by the Court, the motion will be fully submitted by May 29, 2018. The Company disagrees with the decision of the arbitrator and intends to continue to defend itself vigorously. The Company is also pursuing coverage for the full scope of the award, interest, and legal fees and expenses, under the Company's applicable insurance policies. Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise: This purported class and collective action was filed on August 18, 2016 in the U.S. District Court for the Northern District of California, against HP and HPE alleging violations of the Federal Age Discrimination in Employment Act (“ADEA”), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code. Former business units of HPE now owned by the Company will be proportionately liable for any recovery by plaintiffs in this matter. Plaintiffs filed an amended complaint on December 19, 2016. Plaintiffs seek to certify a nationwide class action under the ADEA comprised of all U.S. residents employed by defendants who had their employment terminated pursuant to a work force reduction (“WFR”) plan on or after December 9, 2014 (deferral states) and April 8, 2015 (non-deferral states), and who were 40 years of age or older at the time of termination. Plaintiffs also seek to represent a Rule 23 class under California law comprised of all persons 40 years or older employed by defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. On January 30, 2017, defendants filed a partial motion to dismiss and a motion to compel arbitration of claims by opt-in plaintiffs who signed releases as part of their WFR packages. On September 20, 2017, the Court denied the partial motion to dismiss without prejudice, but granted defendants’ motions to compel arbitration. Accordingly, the Court has stayed the entire action pending arbitration, and administratively closed the case. Plaintiffs filed a motion for reconsideration as well as a notice of appeal to the Ninth Circuit (which has been denied as premature). The reconsideration motion was denied without oral argument. In that same decision, the Court held that a collective arbitration was permissible. The Company subsequently sought and obtained leave of Court to file a motion for reconsideration arguing that collective arbitration is not permitted under the relevant employee agreements. The Court denied the motion on April 17, 2018, ruling that interpretation of the employee agreements is an issue delegated to the arbitrator. The American Arbitration Association, which was designated to manage the arbitration process, has initiated the process to select an arbitrator to handle a collective arbitration in San Francisco, California. Pursuant to the contract, however, mediation is a precondition to arbitration, and details of such mediation are still under negotiation. Voluntary Disclosure of Certain Possible Sanctions Law Violations: On February 2, 2017, CSC submitted an initial notification of voluntary disclosure to the U.S. Department of Treasury, Office of Foreign Assets Control ("OFAC") regarding certain possible violations of U.S. sanctions laws pertaining to insurance premium data and claims data processed by two partially-owned joint ventures of Xchanging, which CSC acquired during the first quarter of fiscal 2017. A copy of the disclosure was also provided to Her Majesty’s Treasury Office of Financial Sanctions Implementation in the United Kingdom. The Company’s related internal investigation is continuing, and the Company has undertaken to cooperate with and provide a full report of its findings to OFAC when completed. In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management's view of the expected outcome. DXC consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events No events, other than those described in these notes, have occurred that would require recognition or disclosure in the consolidated financial statements. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In order to make this report easier to read, DXC refers throughout to (i) the Consolidated Financial Statements as the “Financial Statements,” (ii) the Consolidated Statements of Operations as the “Statements of Operations,” (iii) the Consolidated Statement of Comprehensive Income (loss) as the "Statements of Comprehensive Income," (iv) the Consolidated Balance Sheets as the “Balance Sheets,” and (v) the Consolidated Statements of Cash Flows as the “Statements of Cash Flows.” In addition, references throughout to numbered “Notes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted. The accompanying financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission for annual reports and accounting principles generally accepted in the United States ("GAAP"). The financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations, and comprehensive income attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the financial statements in accordance with GAAP requires the Company's management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax benefits, valuation allowances on deferred tax assets, loss accruals for litigation and obligations related to our pension plans. In the opinion of the Company's management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. |
Revenue Recognition | Revenue Recognition The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the client, the sales price is fixed or determinable, and collectability is reasonably assured. For non-software arrangements that include multiple-elements, revenue recognition involves the identification of separate units of accounting after consideration of combining and/or segmenting contracts and allocation of the arrangement consideration to the units of accounting on the basis of their relative selling price. Revenue under such contracts is recognized based upon the level of services delivered in the periods in which they are provided. These contracts often include upfront fees billed for activities to familiarize DXC with the client's operations, take control over their administration and operation, and adapt them to DXC's solutions. These activities typically do not qualify as separate units of accounting, and the related revenues are deferred until service commencement and recognized ratably over the period of performance during the period in which DXC provides the related service, which is typically the life of the contract. Costs are expensed as incurred, except for direct and incremental set-up costs which are capitalized and amortized on a straight-line basis over the life of the contract, which are described in more detail under the heading of intangible assets below. Software transactions that include multiple elements are described below within Multiple-element software sales. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and multiple-element software sales for which revenue is recognized in the following manner: Time and materials contracts - Revenue is recorded at agreed-upon billing rates at the time services are provided. Unit-price contracts. Revenue is recognized based on unit metrics multiplied by the agreed upon contract unit price or when services are delivered. Fixed-price contracts. For certain fixed-price contracts, revenue is recognized under the percentage-of-completion method as described below; these include certain software development projects and all long-term construction-type contracts. For other fixed-price contracts, revenue is recognized based on the proportion of the services delivered to date as a percentage of the total services to deliver over the contract term. If output or input measures are not available or cannot be reasonably estimated, revenue is recognized ratably over the contract term. Under the percentage-of-completion method, progress towards completion is measured based on either achievement of specified contract milestones, costs incurred as a proportion of estimated total costs, or other measures of progress when appropriate. Profit in a given period is reported at the estimated profit margin to be achieved on the overall contract. This method can result in the recognition of unbilled receivables, the deferral of costs as work in process, or deferral of profit on these contracts. Contracts that require estimates at completion using the percentage-of-completion method accounted for approximately 3% of the Company's revenues for fiscal 2018 . Management regularly reviews project profitability and underlying estimates. Revisions to the estimates at completion are reflected in results of operations as a change in accounting estimate in the period in which the facts that give rise to the revision become known by management. Provisions for estimated losses at completion, if any, are recognized in the period in which the loss becomes evident. The provision includes estimated costs in excess of estimated revenue and any profit margin previously recognized. Multiple-element software sales. For multiple-element arrangements that involve the sale of DXC proprietary software, post contract customer support, and other software-related services, vendor-specific objective evidence ("VSOE") of fair value is required to allocate and recognize revenue for each element. VSOE of fair value is determined based on the price charged where each deliverable is sold separately. In situations where VSOE of fair value exists for all undelivered elements but not a delivered element (typically the software license element), the residual method is used. This method allocates revenue to the undelivered elements equal to their VSOE value with the remainder allocated to the delivered element. If significant customization is required, and VSOE is available to support accounting for the software as a separate unit of account, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. In situations where VSOE of fair value does not exist for all of the undelivered software-related elements, revenue is deferred until only one undelivered element remains and then recognized following the pattern of delivery of the final undelivered element. |
Pension and Other Benefit Plans | Pension and Other Benefit Plans The Company accounts for its pension, other post-retirement benefit ("OPEB"), defined contribution and deferred compensation plans using the guidance of ASC 710 "Compensation - General" and ASC 715 "Compensation - Retirement Benefits". The Company recognizes actuarial gains and losses and changes in fair value of plan assets in earnings at the time of plan remeasurement as a component of net periodic benefit expense. Typically plan remeasurement occurs annually during the fourth quarter of each fiscal year. The remaining components of pension and OPEB expense, primarily current period service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Inherent in the application of the actuarial methods are key assumptions, including, but not limited to, discount rates, expected long-term rates of return on plan assets, mortality rates, rates of compensation increases, and medical cost trend rates. Company management evaluates these assumptions annually and updates assumptions as necessary. The fair value of assets is determined based on the prevailing market prices or estimated fair value of investments when quoted prices are not available. |
Software Development Costs | Software Development Costs After establishing technological feasibility, and until such time as the software products are available for general release to customers, the Company capitalizes costs incurred to develop commercial software products to be sold, leased or otherwise marketed. Costs incurred to establish technological feasibility are charged to expense as incurred. Enhancements to software products are capitalized where such enhancements extend the life or significantly expand the marketability of the products. Amortization of capitalized software development costs is determined separately for each software product. Annual amortization expense is calculated based on the greater of the ratio of current gross revenues for each product to the total of current and anticipated future gross revenues for the product or the straight-line amortization method over the estimated useful life of the product. Unamortized capitalized software costs associated with commercial software products are periodically evaluated for impairment on a product-by-product basis by comparing the unamortized balance to the product’s net realizable value. The net realizable value is the estimated future gross revenues from that product reduced by the related estimated future costs. When the unamortized balance exceeds the net realizable value, the unamortized balance is written down to the net realizable value and an impairment charge is recorded. The Company capitalizes costs incurred to develop internal-use computer software during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. Capitalized costs associated with internal-use software are amortized on a straight-line basis over the estimated useful life of the software. Purchased software is capitalized and amortized over the estimated useful life of the software. Internal-use software assets are evaluated for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Share-Based Compensation | Share-Based Compensation Share-based awards are accounted for under the fair value method. The Company provides different forms of share-based compensation to its employees and non-employee directors. This includes stock options and restricted stock units ("RSUs"), including performance-based restricted stock units ("PSUs"). The fair value of the awards is determined on the grant date, based on the Company's closing stock price. For awards settled in shares, the Company recognizes compensation expense based on the grant-date fair value net of estimated forfeitures over the vesting period. For awards settled in cash, the Company recognizes compensation expense based on the fair value at each reporting date net of estimated forfeitures. The Company uses the Black-Scholes-Merton model to compute the estimated fair value of options granted. This model includes assumptions regarding expected term, risk-free interest rates, expected volatility and dividend yields which are periodically evaluated. The expected term is calculated based on the Company’s historical experience with respect to its stock plan activity and an estimate of when vested and unexercised option shares will be exercised. The expected term of options is based on job tier classifications, which have different historical exercise behavior. The risk-free interest rate is based on the zero-coupon interest rate of U.S. government issued treasury STRIPS with a period commensurate with the expected term of the options. Expected volatility is based on a blended approach, which uses a two-thirds weighting for historical volatility and one-third weighting for implied volatility. The Company’s historical volatility calculation is based on employee class and historical closing prices of the Company's peer group, in order to better align this factor with the expected terms of the stock options. DXC’s implied stock price volatility is derived from the price of exchange traded options on DXC’s stock with the longest remaining contractual term. Implied volatility is a prospective, forward looking measure representing market participants’ expectations of DXC's future stock price volatility. The dividend yield assumption is based on the respective fiscal year dividend payouts. Forfeitures are estimated based on historical experience. |
Business Combinations | Business Combinations Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's statements of operations. For contingent consideration recorded as a liability, the Company initially measures the amount at fair value as of the acquisition date and adjusts the liability, if needed, to fair value each reporting period. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recognized as income or expense. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill Impairment Analysis | Goodwill Impairment Analysis The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A significant amount of judgment is involved in determining whether an event indicating impairment has occurred between annual testing dates. Such indicators include: a significant decline in expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, the disposal of a significant component of a reporting unit and the testing for recoverability of a significant asset group within a reporting unit. The Company follows GAAP-prescribed rules when determining if goodwill has been impaired. Initially, an assessment of qualitative factors is conducted in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. This qualitative analysis, which is commonly referred to as step zero under ASC Topic 350 "Goodwill and Other Intangible Assets", considers all relevant factors specific to the reporting units, including macroeconomic conditions; industry and market considerations; overall financial performance and relevant entity-specific events. If the Company determines that it is not more likely that the carrying amount for a reporting unit is less than its fair value, then the subsequent two-step goodwill impairment testing process is not required. If the Company determines that it is more likely than not that the carrying amount for a reporting unit is greater than its fair value, then it proceeds with the subsequent two-step process. The Company has the option to bypass the initial qualitative assessment stage and proceed directly to perform step one of the two-step process. Step one of the process compares each reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if a reporting unit’s fair value is less than its carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. In the second step, the reporting unit’s fair value is determined and allocated to the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in order to calculate the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. When the Company performs step one of the two-step test for a reporting unit, it estimates the fair value of the reporting unit using both the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value using a discount rate. Cash flow projections are based on management's estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of each reporting unit, the weighted-average cost of capital and its underlying forecasts. The market approach estimates fair value by applying performance-metric multiples to the reporting unit's prior and expected operating performance. The multiples are derived from comparable publicly traded companies that have operating and investment characteristics similar to those of the reporting unit. If the fair value of the reporting unit derived using one approach is significantly different from the fair value estimate using the other approach, the Company reevaluates its assumptions used in the two models. Assumptions are modified as considered appropriate under the circumstances until the two models yield similar and reasonable results. The fair values determined by the market approach and income approach, as described above, are weighted to determine the fair value for each reporting unit. The weighting ascribed to the market approach fair value assigned to each reporting unit is influenced by two primary factors: 1) the number of comparable publicly traded companies used in the market approach, and 2) the similarity of the operating and investment characteristics of the reporting units to the comparable publicly traded companies used in the market approach. If DXC performs a step one analysis for all of its reporting units in conjunction with its annual goodwill testing, it also compares the sum of all of its reporting units’ fair values to the Company's market capitalization (per-share stock price multiplied by the number of shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). The Company evaluates the reasonableness of the control premium by comparing it to control premiums derived from recent comparable business combinations. If the implied control premium is not reasonable in light of the comparable business combinations, the Company reevaluates its fair value estimates of the reporting units by adjusting the discount rates and/or other assumptions. As a result, when DXC’s stock price and thus market capitalization is low relative to the sum of the estimated fair value of its reporting units, this reevaluation can result in reductions to the estimated fair values for the reporting units. |
Fair Value | Fair Value The Company applies fair value accounting for its financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The objective of a fair value measurement is to estimate the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal market for that asset or liability, or in the absence of the principal market, the most advantageous market. Assets and liabilities subject to fair value measurement disclosures are required to be classified according to a three-level fair value hierarchy with respect to the inputs used to determine fair value. The level in which an asset or liability is disclosed within the fair value hierarchy is based on the lowest level input that is significant to the related fair value measurement in its entirety. The levels of input are defined as follows: Level 1: Quoted prices unadjusted for identical assets or liabilities in an active market. Level 2: Quoted prices for similar assets or liabilities in an active market, quoted prices for identical similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that reflect the entity's own assumptions which market participants would use in pricing the asset or liability. |
Receivables | Receivables The Company records receivables at their face amounts less an allowance for doubtful accounts. Receivables consist of amounts billed and currently due from customers, amounts earned but unbilled (including contracts measured under the percentage-of-completion method of accounting), amounts retained by the customer until the completion of a specified contract, negotiation of contract modification and claims. Unbilled recoverable amounts under contracts in progress generally become billable upon achievement of project milestones or upon acceptance by the customer. Allowances for uncollectible billed trade receivables are estimated based on a combination of write-off history, aging analysis and any known collectability issues. Unbilled amounts under contracts in progress that are recoverable do not have an allowance for credit losses. Adjustments to unbilled amounts under contracts in progress related to credit quality, should they occur, would be recorded as a reduction of revenues. DXC uses receivables securitization facilities or receivables sales facilities in the normal course of business as part of managing its cash flows. The Company accounts for receivables sold under these facilities as a sale of financial assets pursuant to ASC 860 “Transfers and Servicing” and derecognizes these receivables, as well as the related allowances, from its balance sheets. Generally, the fair value of the sold receivables approximates the book value due to the short-term nature and, as a result, no gain or loss on sale of receivables is recorded. Under the receivables securitization facility, the deferred purchase price receivable is recorded at fair value, which is determined by calculating the expected amount of cash to be received based on unobservable inputs consisting of the face amount of the receivables adjusted for anticipated credit losses. The Company reflects cash flows related to receivables facilities as operating activities in its statements of cash flows because the cash received upon both the sale and collection of the receivables is not subject to significant interest rate risk given the short-term nature of the Company’s trade receivables. |
Property and Equipment | Property and Equipment Property and equipment, which includes assets under capital leases, are stated at cost less accumulated depreciation. Depreciation is computed predominantly on a straight-line basis over the estimated useful lives of the assets or the remaining lease term, whichever is shorter. The estimated useful lives of DXC's property and equipment are as follows: Buildings Up to 40 years Computers and related equipment 4 to 5 years Furniture and other equipment 3 to 15 years Leasehold improvements Shorter of lease term or useful life up to 20 years |
Intangible Assets | Intangible Assets The Company's estimated useful lives for finite-lived intangibles are shown in the table below: Software 2 to 10 years Outsourcing contract costs Contract life, excluding option years Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable Software is amortized using predominately the straight-line method. Costs of outsourcing contracts, including costs incurred for bid and proposal activities, are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract are deferred and expensed on a straight-line basis over the contract life. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract premiums and transition/set-up costs. Contract premiums represent amounts paid to customers in excess of the fair value of assets acquired and are amortized as a reduction to revenues. Transition/set-up costs are primarily associated with assuming control over a customer's IT operations and transforming them pursuant to contract specifications. Acquired contract related and customer related intangible assets are amortized in proportion to the estimated undiscounted cash flows projected over the estimated life of the asset or on a straight-line basis if such cash flows cannot be reliably estimated. |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets and Finite-Lived Intangible Assets Long-lived assets such as property and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount of such assets to the estimated future net cash flows. If estimated future net cash flows are less than the carrying amount of such assets, an expense is recorded in the amount required to reduce the carrying amount of such assets to fair value. Fair value is determined based on a discounted cash flow approach or, when available and appropriate, comparable market values. Long-lived assets to be disposed of are reported at the lower of their carrying amount or their fair value less costs to sell. |
Income Taxes | Income Taxes The Company uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the results of operations in the period that includes the related enactment date. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the Company’s tax provision during the period in which the change occurred. In determining whether a valuation allowance is warranted, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, taxable income in prior carryback years, projected future taxable income, tax planning strategies and recent financial operations. The Company recognizes uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination. Uncertain tax positions are measured based on the probabilities that the uncertain tax position will be realized upon final settlement. All tax-related cash flows resulting from excess tax benefits related to the settlement of share-based awards are classified as cash flows from operating activities and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity in the statements of cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. The Company’s cash equivalents consist of time deposits, money market funds and money market deposit accounts with a number of institutions that have high credit ratings. |
Foreign Currency | Foreign Currency The local currency of the Company's foreign affiliates is generally their functional currency. Accordingly, the assets and liabilities of the foreign affiliates are translated from their respective functional currency to U.S. dollars using fiscal year-end exchange rates, income and expense accounts are translated at the average rates in effect during the fiscal year and equity accounts are translated at historical rates. The resulting translation adjustment is reported in the statements of comprehensive income and recorded as part of accumulated other comprehensive income ("AOCI"). |
Derivative Instruments | Derivative Instruments The Company designates certain derivative instruments as hedges for purposes of hedge accounting, as defined under ASC 815 “Derivatives and Hedging.” For such derivative instruments, the Company documents its risk management objectives and strategy for undertaking hedging transactions, as well as all relationships between hedging and hedged risks. The Company's derivative instruments designated for hedge accounting consist mainly of interest rate swaps and foreign currency forward and option contracts. Changes in the fair value measurements of these derivative instruments are reflected as adjustments to other comprehensive income and subsequently reclassified into earnings in the period during which the hedged transactions occurred. Any ineffectiveness or excluded portion of a designated hedge is recognized in earnings. The derivative instruments not designated as hedges for purposes of hedge accounting include total return swaps and certain short-term foreign currency forward contracts. These instruments are recorded at their respective fair values and the change in their value is reported in current period earnings. The Company does not use derivative instruments for trading or speculative purpose. The Company reports the effective portion of its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. All cash flows associated with the Company's derivative instruments are classified as operating activities in the statements of cash flows. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements During fiscal 2018 , DXC adopted the following Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board: Date Issued and ASU Date Adopted and Method Description Impact October 2016 ASU 2016-17 Consolidation (Topic 810): Interests held through Related Parties that are under Common Control April 1, 2017 Retrospectively This update alters how a decision maker considers indirect interests in a variable interest entity ("VIE") held through an entity under common control and simplifies that analysis to require consideration of only an entity’s proportionate indirect interest in a VIE held through a common control party. The adoption of this update did not have a material impact on our financial statements. New Accounting Pronouncements: The following ASUs were recently issued but have not yet been adopted by DXC: Date Issued and ASU DXC Effective Date Description Impact May 2014 ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)" Fiscal 2019 The core principle of this update, and the subsequent amendments, is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which DXC expects to be entitled in exchange for those goods or services. The guidance also addresses the timing of recognition of certain costs incurred to obtain or fulfill a customer contract. Further, it requires the disclosure of sufficient information to enable readers of DXC’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and information regarding significant judgments and changes in judgments made. This update provides two methods of adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to all periods presented with previously disclosed periods restated under the new guidance. Under the modified retrospective method, prior periods would not be restated but rather a cumulative catch-up adjustment would be recorded on the adoption date. The Company will adopt this standard using the modified retrospective method and expects the primary accounting impacts to include the following: ● The Company’s IT and business process outsourcing arrangements comprise a series of distinct services, for which revenue is expected to be recognized as the services are provided in a manner that is generally consistent with current practices. ● The Company has certain arrangements involving the sale of proprietary software and related services for which vendor-specific objective evidence of fair value may not exist, resulting in the deferral of revenues. Under the new standard, estimates of standalone selling price will be necessary for all software performance obligations, which may result in the acceleration of revenues. However, at April 1, 2018, the net impact to retained earnings is not expected to be material. In future periods, the impact of the new standard will depend on the timing, nature and materiality of software arrangements executed. ● The Company currently does not capitalize commission costs. The new standard will require capitalization of certain commissions, which will be amortized over the period that services or goods are transferred to the customer. The Company expects to record an adjustment to retained earnings of approximately $100 million to $125 million, net of the effect of tax, related to the capitalization of commission costs. In addition, the Company is completing its implementation efforts to accumulate and report additional disclosures required by the standard that will be reported in the first quarter of Fiscal 2019. February 2016 ASU 2016-02 "Leases (Topic 842)" Fiscal 2020 This update is intended to increase transparency and comparability among organizations by recognizing virtually all lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. Early adoption of this update is permitted. This update must be adopted using a modified retrospective transition and provides for certain practical expedients. DXC is currently evaluating the effect the adoption will have on its existing accounting policies and the financial statements in future reporting periods, but expects there will be an increase in assets and liabilities on its balance sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities, which may be significant. March 2017 ASU 2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" Fiscal 2019 This update is intended to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost in an entity's financial statements by requiring the service cost component be disaggregated from other components of net benefit costs and presented in the same line item or items as other compensation costs for the employees. Additionally, only the service cost component of net benefit cost is eligible for capitalization when applicable. This update must be applied retrospectively. DXC expects to reclassify in aggregate $(509) million and $(7) million of non-service cost components of net periodic pension (income) expense from "costs of services" and "selling, general and administrative" to "other income, net" in the statements of operations for the twelve months ended March 31, 2018, and March 31, 2017, respectively. The service cost component of net periodic pension (income) expense expected to remain in "costs of services" and "selling, general and administrative" is $121 million and $23 million for the twelve months ended March 31, 2018 and March 31, 2017, respectively. August 2016 ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" Fiscal 2019 This update addressed eight cash flow classification issues that have created diversity in practice, providing definitive guidance on classification of certain cash receipts and payments. This update must be adopted retrospectively for all periods presented but may be applied prospectively if retrospective application would be impracticable DXC expects to reclassify cash flows related to its beneficial interests in securitization transactions, which is the deferred purchase price recorded in connection with the Company's Receivables Securitization Facility, from operating activities to investing activities for prior periods in its statements of cash flows. See Note 5 - "Receivables" for more information about the Receivables Securitization Facility. May 2017 ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” Fiscal 2019 This update provides clarity as to what changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. This ASU is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. DXC will consider the impact that this update may have on future stock-based payment award modifications should they occur. August 2017 ASU 2017-12, “Derivatives and Hedging (Topic 815)” Fiscal 2020 This update was issued to improve the financial reporting of hedge relationships to better portray the economic results of an entity’s risk management activities in its financial statements and to make certain improvements to simplify the application of hedge accounting. This update must be adopted by applying the standard to existing hedge instruments at the adoption date and early adoption is permitted. DXC is currently evaluating the effect the adoption of this update will have on its financial statements. June 2016 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Fiscal 2021 This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update must be adopted using a prospective transition approach for debt securities for which an other-than-temporary impairment has been recognized before the effective date DXC is currently evaluating its trade receivables and financial arrangements for the potential impact this update may have on its financial statements in future reporting periods. Other recently issued ASUs effective after March 31, 2018 are not expected to have a material effect on DXC's financial statements. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives By Asset | The estimated useful lives of DXC's property and equipment are as follows: Buildings Up to 40 years Computers and related equipment 4 to 5 years Furniture and other equipment 3 to 15 years Leasehold improvements Shorter of lease term or useful life up to 20 years |
Schedule of Finite-Lived Intangible Assets | The Company's estimated useful lives for finite-lived intangibles are shown in the table below: Software 2 to 10 years Outsourcing contract costs Contract life, excluding option years Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,560 $ 1,946 $ 1,614 Outsourcing contract costs 1,593 757 836 Customer related intangible assets 6,305 735 5,570 Other intangible assets 90 19 71 Total intangible assets $ 11,548 $ 3,457 $ 8,091 As of March 31, 2017 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 2,347 $ 1,554 $ 793 Outsourcing contract costs 793 475 318 Customer related intangible assets 851 248 603 Other intangible assets 96 16 80 Total intangible assets $ 4,087 $ 2,293 $ 1,794 |
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | During fiscal 2018 , DXC adopted the following Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board: Date Issued and ASU Date Adopted and Method Description Impact October 2016 ASU 2016-17 Consolidation (Topic 810): Interests held through Related Parties that are under Common Control April 1, 2017 Retrospectively This update alters how a decision maker considers indirect interests in a variable interest entity ("VIE") held through an entity under common control and simplifies that analysis to require consideration of only an entity’s proportionate indirect interest in a VIE held through a common control party. The adoption of this update did not have a material impact on our financial statements. The following ASUs were recently issued but have not yet been adopted by DXC: Date Issued and ASU DXC Effective Date Description Impact May 2014 ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)" Fiscal 2019 The core principle of this update, and the subsequent amendments, is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which DXC expects to be entitled in exchange for those goods or services. The guidance also addresses the timing of recognition of certain costs incurred to obtain or fulfill a customer contract. Further, it requires the disclosure of sufficient information to enable readers of DXC’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and information regarding significant judgments and changes in judgments made. This update provides two methods of adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to all periods presented with previously disclosed periods restated under the new guidance. Under the modified retrospective method, prior periods would not be restated but rather a cumulative catch-up adjustment would be recorded on the adoption date. The Company will adopt this standard using the modified retrospective method and expects the primary accounting impacts to include the following: ● The Company’s IT and business process outsourcing arrangements comprise a series of distinct services, for which revenue is expected to be recognized as the services are provided in a manner that is generally consistent with current practices. ● The Company has certain arrangements involving the sale of proprietary software and related services for which vendor-specific objective evidence of fair value may not exist, resulting in the deferral of revenues. Under the new standard, estimates of standalone selling price will be necessary for all software performance obligations, which may result in the acceleration of revenues. However, at April 1, 2018, the net impact to retained earnings is not expected to be material. In future periods, the impact of the new standard will depend on the timing, nature and materiality of software arrangements executed. ● The Company currently does not capitalize commission costs. The new standard will require capitalization of certain commissions, which will be amortized over the period that services or goods are transferred to the customer. The Company expects to record an adjustment to retained earnings of approximately $100 million to $125 million, net of the effect of tax, related to the capitalization of commission costs. In addition, the Company is completing its implementation efforts to accumulate and report additional disclosures required by the standard that will be reported in the first quarter of Fiscal 2019. February 2016 ASU 2016-02 "Leases (Topic 842)" Fiscal 2020 This update is intended to increase transparency and comparability among organizations by recognizing virtually all lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. Early adoption of this update is permitted. This update must be adopted using a modified retrospective transition and provides for certain practical expedients. DXC is currently evaluating the effect the adoption will have on its existing accounting policies and the financial statements in future reporting periods, but expects there will be an increase in assets and liabilities on its balance sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities, which may be significant. March 2017 ASU 2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" Fiscal 2019 This update is intended to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost in an entity's financial statements by requiring the service cost component be disaggregated from other components of net benefit costs and presented in the same line item or items as other compensation costs for the employees. Additionally, only the service cost component of net benefit cost is eligible for capitalization when applicable. This update must be applied retrospectively. DXC expects to reclassify in aggregate $(509) million and $(7) million of non-service cost components of net periodic pension (income) expense from "costs of services" and "selling, general and administrative" to "other income, net" in the statements of operations for the twelve months ended March 31, 2018, and March 31, 2017, respectively. The service cost component of net periodic pension (income) expense expected to remain in "costs of services" and "selling, general and administrative" is $121 million and $23 million for the twelve months ended March 31, 2018 and March 31, 2017, respectively. August 2016 ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" Fiscal 2019 This update addressed eight cash flow classification issues that have created diversity in practice, providing definitive guidance on classification of certain cash receipts and payments. This update must be adopted retrospectively for all periods presented but may be applied prospectively if retrospective application would be impracticable DXC expects to reclassify cash flows related to its beneficial interests in securitization transactions, which is the deferred purchase price recorded in connection with the Company's Receivables Securitization Facility, from operating activities to investing activities for prior periods in its statements of cash flows. See Note 5 - "Receivables" for more information about the Receivables Securitization Facility. May 2017 ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” Fiscal 2019 This update provides clarity as to what changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. This ASU is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. DXC will consider the impact that this update may have on future stock-based payment award modifications should they occur. August 2017 ASU 2017-12, “Derivatives and Hedging (Topic 815)” Fiscal 2020 This update was issued to improve the financial reporting of hedge relationships to better portray the economic results of an entity’s risk management activities in its financial statements and to make certain improvements to simplify the application of hedge accounting. This update must be adopted by applying the standard to existing hedge instruments at the adoption date and early adoption is permitted. DXC is currently evaluating the effect the adoption of this update will have on its financial statements. June 2016 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Fiscal 2021 This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update must be adopted using a prospective transition approach for debt securities for which an other-than-temporary impairment has been recognized before the effective date DXC is currently evaluating its trade receivables and financial arrangements for the potential impact this update may have on its financial statements in future reporting periods. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, Consideration Exchanged | Under the acquisition method of accounting, total consideration exchanged was: (in millions) Amount Fair value of purchase consideration received by HPE stockholders (1) $ 9,782 Fair value of HPES options assumed by CSC (2) 68 Total consideration transferred $ 9,850 (1) Represents the fair value of consideration received by HPE stockholders to give them 50.1% ownership in the combined company. The fair value of the purchase consideration transferred was based on a total of 141,865,656 shares of DXC common stock distributed to HPE stockholders as of the close of business on the record date ( 141,741,712 after the effect of 123,944 cancelled shares) at CSC's closing price of $69.01 per share on March 31, 2017. (2) Represents the fair value of certain stock-based awards of HPES employees that were unexercised on March 31, 2017, which were converted to DXC stock-based awards. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquired property and equipment are summarized in the following table: (in millions) Amount Land, buildings, and leasehold improvements $ 1,470 Computers and related equipment 960 Furniture and other equipment 47 Construction in progress 104 Total $ 2,581 The purchase price allocation for the HPES Merger was finalized during the fourth quarter of fiscal 2018. The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the HPES Merger date is as follows: (in millions) Fair Value Cash and cash equivalents $ 938 Accounts receivable (1) 4,102 Other current assets 530 Total current assets 5,570 Property and equipment 2,581 Intangible assets 6,384 Other assets 1,571 Total assets acquired 16,106 Accounts payable, accrued payroll, accrued expenses, and other current liabilities (4,605 ) Deferred revenue (1,315 ) Long-term debt, net of current maturities (4,806 ) Long-term deferred tax liabilities and income tax payable (1,550 ) Other liabilities (1,322 ) Total liabilities assumed (13,598 ) Net identifiable assets acquired 2,508 Add: Fair value of non-controlling interests (50 ) Goodwill 7,392 Total consideration transferred $ 9,850 (1) Includes aggregate adjustments received from HPE, in accordance with the provisions of the Separation Agreement, of $203 million . |
Schedule of Finite-Lived Intangible Assets Acquired | The acquired identifiable intangible assets are summarized in the following table: (in millions) Amount Useful Lives (Years) Customer relationships $ 5,277 10-13 Developed technology 74 2-7 Third-party purchased software 642 2-7 Outsourcing contract costs 368 Contract life Other intangible assets 23 4 Total $ 6,384 |
Summary of Balance Sheet Impact of the Pension Plans Assumed | The following table summarizes the balance sheet impact of the pension plans assumed from HPES as a result of the HPES Merger. (in millions) Amount Other assets $ 558 Accrued expenses and other current liabilities (13 ) Other long-term liabilities (547 ) Net amount recorded $ (2 ) |
Summary of Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status Assumed | The following table summarizes the projected benefit obligation, fair value of the plan assets and the funded status assumed from HPES as a result of the HPES Merger. (in millions) Amount Projected benefit obligation $ (7,413 ) Fair value of plan assets 7,411 Funded status $ (2 ) |
Summary of Plan Assets Allocations | The following table summarizes the plan asset allocations by asset category for HPES pension plans assumed by the Company as a result of the HPES Merger. Equity securities 22 % Debt securities (1) 72 % Alternatives 5 % Cash and other 1 % Total 100 % (1) Includes liability-driven investments |
Summary of Pro Forma Information | The Company's statements of operations includes the following revenues and net income attributable to HPES since the HPES Merger date: (in millions) Fiscal Year Ended March 31, 2018 Revenues $ 17,423 Net income $ 1,772 The following table provides unaudited pro forma results of operations for the Company for the fiscal year ended March 31, 2017, as if the HPES Merger had been consummated on April 2, 2016, the first day of DXC's fiscal year ended March 31, 2017. These unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. The Company presents these unaudited pro forma results for informational purposes only, and they are not necessarily indicative of what the actual results of operations of DXC would have been if the HPES Merger had occurred at the beginning of the period presented, nor are they indicative of future results of operations. CSC reported its results based on a fiscal year convention that comprised four thirteen-week quarters. HPES reported its results on a fiscal year basis ended January 31. As a consequence of CSC and HPES having different fiscal year-end dates, all references to the unaudited pro forma statement of operations include the results of operations of CSC for the twelve months ended March 31, 2017 and of HPES for the twelve months ended January 31, 2017. (in millions, except per-share amounts) Twelve Months Ended March 31, 2017 Revenues $ 25,394 Net loss (23 ) Net loss attributable to the Company (51 ) Loss per common share: Basic $ (0.18 ) Diluted $ (0.18 ) |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations | The following selected financial information of NPS is included in the statements of cash flows: Fiscal Year Ended (in millions) April 1, 2016 (1) Depreciation $ 75 Amortization $ 15 Capital expenditures $ (75 ) Significant operating non-cash items: Net gain on disposition of business $ 22 Significant investing non-cash items: Capital expenditures through capital lease obligations $ — Capital expenditures in accounts payable $ (7 ) Disposition of assets $ (8 ) (1) Selected financial information for fiscal 2016 reflect cash flows through the Separation date of November 27, 2015. The following is a summary of the operating results of NPS which were reclassified as discontinued operations: Fiscal Year Ended (in millions) April 1, 2016 (1) Revenues $ 2,504 Costs of services 1,935 Selling, general and administrative 52 Depreciation and amortization 90 Restructuring costs 1 Separation and merger costs 103 Interest expense 15 Other income, net (21 ) Income from discontinued operations before income taxes 329 Income tax expense (138 ) Income from discontinued operations, net of tax $ 191 (1) Results for fiscal 2016 reflect NPS's operating results through the NPS Separation date of November 27, 2015. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The following table reflects the calculation of basic and diluted EPS: Fiscal Years Ended (in millions, except per-share amounts) March 31, 2018 March 31, 2017 April 1, 2016 Net income (loss) attributable to DXC common shareholders: From continuing operations $ 1,751 $ (123 ) $ 71 From discontinued operations — — 180 $ 1,751 $ (123 ) $ 251 Common share information: Weighted average common shares outstanding for basic EPS 284.93 140.39 138.28 Dilutive effect of stock options and equity awards 4.84 — 3.05 Weighted average common shares outstanding for diluted EPS 289.77 140.39 141.33 EPS: Basic Continuing operations $ 6.15 $ (0.88 ) $ 0.51 Discontinued operations — — 1.31 Total $ 6.15 $ (0.88 ) $ 1.82 Diluted Continuing operations $ 6.04 $ (0.88 ) $ 0.50 Discontinued operations — — 1.28 Total $ 6.04 $ (0.88 ) $ 1.78 |
Schedule of Antidilutive Securities | The number of awards excluded were as follows: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Stock Options — 3,317,041 2,064,951 RSUs 54,637 845,315 201,581 PSUs 96,029 1,540,152 — |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2018 March 31, 2017 Billed trade receivables $ 3,245 $ 732 Unbilled receivables 1,478 402 Other receivables 1,190 509 Total $ 5,913 $ 1,643 The following table summarizes activity for the allowance for doubtful accounts: As of and for Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Beginning balance $ 26 $ 31 $ 26 Additions charged to costs and expenses 45 10 6 Deductions (1) (37 ) (13 ) (3 ) Other (2) 6 (2 ) 2 Ending balance $ 40 $ 26 $ 31 (1) Represents write-offs and recoveries of prior year charges. (2) Includes changes in foreign currency exchange rates and the impact of the AR securitization facility. |
Summary of DPP | The following table reflects activity of the Receivables Facility: As of and for the Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 (1) Cash proceeds received $ 188 $ 223 Deferred purchase price receivable $ 233 $ 252 Liability recorded due to exceeded maximum funding limit $ — $ 6 (1) Represents activity from the date the Receivables Facility was established, December 21, 2016, through March 31, 2017. The following table is a reconciliation of the beginning and ending balances of the DPP: As of and for the Fiscal Year Ended (in millions) March 31, 2018 March 31, 2017 Beginning balance $ 252 $ — Transfers of receivables 2,222 1,195 Collections (2,225 ) (943 ) Fair value adjustment (16 ) — Ending balance $ 233 $ 252 The following table reflects activity of the Federal Receivables Sales Facility: (in millions) As of and for the Fiscal Year Ended March 31, 2018 Transfers of receivables $ 2,090 Collections $ 1,970 Operating cash flow effect $ 120 Restricted cash (1) $ 68 Outstanding balance $ 188 (1) Represents collections not remitted to the Financial Institutions. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding pension assets and derivative assets and liabilities. See Note 13 - " Pension and Other Benefit Plans " and Note Note 7 - " Derivative Instruments " for information about the fair value of our pension assets and derivative assets and liabilities, respectively. There were no transfers between any of the levels during the periods presented. Fair Value Hierarchy (in millions) As of March 31, 2018 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 84 $ 84 $ — $ — Time deposits (1) 114 114 — — Other debt securities (2) 59 — 53 6 Deferred purchase price receivable 233 — — 233 Total assets $ 490 $ 198 $ 53 $ 239 Liabilities: Contingent consideration $ 5 $ — $ — $ 5 Total liabilities $ 5 $ — $ — $ 5 (1) Cost basis approximated fair value due to the short period of time to maturity. (2) Other debt securities include available-for-sale investments with Level 2 inputs that have a cost basis of $42 million and unrealized gains of $11 million . As of March 31, 2017 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 406 $ 406 $ — $ — Deferred purchase price receivable 252 — — 252 Total assets $ 658 $ 406 $ — $ 252 Liabilities: Contingent consideration $ 7 $ — $ — $ 7 Total Liabilities $ 7 $ — $ — $ 7 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts | The following table presents the pretax amounts impacting income related to foreign currency forward contracts: Fiscal Years Ended (in millions) Statement of Operations Line Item March 31, 2018 March 31, 2017 April 1, 2016 Foreign currency forward contracts Other (income) expense, net $ 118 $ (84 ) $ 19 |
Schedule of Derivative Instruments | The following tables present the fair values of derivative instruments included in the balance sheets: Derivative Assets As of (in millions) Balance Sheet Line Item March 31, 2018 March 31, 2017 Derivatives designated for hedge accounting: Interest rate swaps Other assets $ 6 $ 5 Foreign currency forward contracts Other current assets 14 27 Total fair value of derivatives designated for hedge accounting $ 20 $ 32 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 4 $ 15 Total fair value of derivatives not designated for hedge accounting $ 4 $ 15 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2018 March 31, 2017 Derivatives designated for hedge accounting: Interest rate swaps Other long-term liabilities $ — $ 1 Foreign currency forward contracts Accrued expenses and other current liabilities 3 — Total fair value of derivatives designated for hedge accounting: $ 3 $ 1 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 6 $ 12 Total fair value of derivatives not designated for hedge accounting $ 6 $ 12 |
Schedule of Derivative Assets | The following table provides information about the potential effect of such netting arrangements on the Company's derivative instruments: Fair Value as of March 31, 2018 March 31, 2017 (in millions) Assets Liabilities Assets Liabilities Gross amount of derivative instruments recognized in the balance sheets $ 24 $ 9 $ 47 $ 13 Gross amounts not offset in the balance sheets (1) 1 2 1 2 Net amount $ 23 $ 7 $ 46 $ 11 _________________ (1) These amounts represent the fair value of derivative instruments subject to enforceable master netting arrangements that the Company has elected to not offset. The Company's derivative contracts do not require it to hold or post financial collateral. |
Schedule of Derivative Liabilities | The following table provides information about the potential effect of such netting arrangements on the Company's derivative instruments: Fair Value as of March 31, 2018 March 31, 2017 (in millions) Assets Liabilities Assets Liabilities Gross amount of derivative instruments recognized in the balance sheets $ 24 $ 9 $ 47 $ 13 Gross amounts not offset in the balance sheets (1) 1 2 1 2 Net amount $ 23 $ 7 $ 46 $ 11 _________________ (1) These amounts represent the fair value of derivative instruments subject to enforceable master netting arrangements that the Company has elected to not offset. The Company's derivative contracts do not require it to hold or post financial collateral. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of (in millions) March 31, 2018 March 31, 2017 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,539 $ 873 Computers and related equipment 4,431 2,695 Furniture and other equipment 349 141 Construction in progress 79 10 7,398 3,719 Less: accumulated depreciation and amortization 3,752 2,816 Property and equipment, net $ 3,646 $ 903 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Amortizable Intangible Assets | The Company's estimated useful lives for finite-lived intangibles are shown in the table below: Software 2 to 10 years Outsourcing contract costs Contract life, excluding option years Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,560 $ 1,946 $ 1,614 Outsourcing contract costs 1,593 757 836 Customer related intangible assets 6,305 735 5,570 Other intangible assets 90 19 71 Total intangible assets $ 11,548 $ 3,457 $ 8,091 As of March 31, 2017 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 2,347 $ 1,554 $ 793 Outsourcing contract costs 793 475 318 Customer related intangible assets 851 248 603 Other intangible assets 96 16 80 Total intangible assets $ 4,087 $ 2,293 $ 1,794 |
Estimated Future Amortization of Intangible Assets | Estimated future amortization related to intangible assets as of March 31, 2018 is as follows: Fiscal Year (in millions) 2019 $ 1,211 2020 $ 1,118 2021 $ 1,002 2022 $ 858 2023 $ 794 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Segment | The following tables summarize the changes in the carrying amounts of goodwill, by segment, for the fiscal years ended March 31, 2018 and March 31, 2017 , respectively. (in millions) GBS GIS USPS Total Goodwill, gross $ 2,171 $ 2,446 $ — $ 4,617 Accumulated impairment losses (701 ) (2,061 ) — (2,762 ) Balance as of March 31, 2017, net 1,470 385 — 1,855 Additions 2,889 2,609 2,010 7,508 Foreign currency translation 184 105 — 289 Goodwill, gross 5,244 5,160 2,010 12,414 Accumulated impairment losses (701 ) (2,061 ) — (2,762 ) Balance as of March 31, 2018, net $ 4,543 $ 3,099 $ 2,010 $ 9,652 (in millions) GBS GIS Total Goodwill, gross $ 1,615 $ 2,424 $ 4,039 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of April 1, 2016, net 914 363 1,277 Additions 655 34 689 Foreign currency translation (99 ) (12 ) (111 ) Goodwill, gross 2,171 2,446 4,617 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2017, net $ 1,470 $ 385 $ 1,855 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Sources Of Income Before Income Taxes Classified Between Domestic And Foreign Entities | The sources of income (loss) from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Domestic entities $ 821 $ (157 ) $ (222 ) Entities outside the United States 850 (17 ) 232 Total $ 1,671 $ (174 ) $ 10 |
Components Of Income Tax Provision | The income tax benefit on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Current: Federal $ 453 $ (32 ) $ (79 ) State 31 14 (22 ) Foreign 247 36 59 731 18 (42 ) Deferred: Federal (850 ) (7 ) (39 ) State (53 ) (1 ) 48 Foreign 61 (84 ) (29 ) (842 ) (92 ) (20 ) Total income tax benefit $ (111 ) $ (74 ) $ (62 ) |
Federal Statutory Tax Rate To Effective Tax Rate Reconciliation | The major elements contributing to the difference between the U.S. federal statutory tax rate of 31.5% and the effective tax rate ("ETR") for continuing operations are as follows: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Statutory rate 31.5 % (35.0 )% 35.0 % State income tax, net of federal tax 2.5 (4.0 ) (145.7 ) United States Tax Reform (31.7 ) — — Change in Indefinite Reinvestment Assertion 2.6 — — Loss of attributes due to merger 4.0 — — Change in uncertain tax positions (0.1 ) (3.4 ) (685.0 ) Foreign tax rate differential (4.5 ) (41.1 ) (377.4 ) Capitalized transaction costs 1.1 12.1 22.3 Change in valuation allowances (6.0 ) 34.3 743.6 Excess tax benefits for stock compensation (2.3 ) (11.3 ) (230.0 ) Prepaid tax asset amortization 0.3 7.1 78.8 Income Tax and Foreign Tax Credits (6.0 ) (2.0 ) (58.0 ) Other items, net 2.0 0.8 (3.6 ) Effective tax rate (6.6 )% (42.5 )% (620.0 )% |
Components Of Deferred Tax Assets and Liabilities | The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2018 March 31, 2017 Deferred tax assets Employee benefits $ 159 $ 172 Tax loss/credit carryforwards 1,672 1,307 Accrued interest 19 16 Contract accounting 149 89 Other assets 283 83 Total deferred tax assets 2,282 1,667 Valuation allowance (1,442 ) (1,094 ) Net deferred tax assets 840 573 Deferred tax liabilities Depreciation and amortization (1,111 ) (282 ) Investment basis differences (62 ) (103 ) Other liabilities (94 ) (45 ) Total deferred tax liabilities (1,267 ) (430 ) Total net deferred tax assets (liabilities) $ (427 ) $ 143 |
Schedule of Deferred Tax Assets and Liabilities | Income tax related assets are included in the accompanying balance sheets as follows: As of (in millions) March 31, 2018 March 31, 2017 Current: Income tax receivables $ 227 $ 146 $ 227 $ 146 Non-current: Income taxes receivable and prepaid taxes $ 92 $ 50 Deferred tax assets 373 381 $ 465 $ 431 Total $ 692 $ 577 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2018 March 31, 2017 Current: Liability for uncertain tax positions $ (33 ) $ (17 ) Income taxes payable (112 ) (21 ) $ (145 ) $ (38 ) Non-current: Deferred taxes (800 ) (238 ) Income taxes payable (251 ) — Liability for uncertain tax positions (278 ) (185 ) $ (1,329 ) $ (423 ) Total $ (1,474 ) $ (461 ) |
Summary of Operating Loss Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2018 As of March 31, 2017 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 41 $ — $ 41 2037 $ 65 $ — $ 65 2037 State $ 876 $ — $ 876 2038 $ 911 $ — $ 911 2037 Foreign $ 6,522 $ 6,287 $ 235 2038 $ 4,608 $ 4,537 $ 71 2036 Tax credit carryforwards Federal $ — $ — $ — N/A $ 7 $ — $ 7 2024 State $ 32 $ 7 $ 25 2038 $ 45 $ 10 $ 35 2026 Foreign $ 21 $ — $ 21 2020 $ 10 $ — $ 10 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ 289 $ — $ 289 2018 Foreign $ 240 $ 193 $ 47 2023 $ 235 $ 235 $ — N/A |
Summary of Tax Credit Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2018 As of March 31, 2017 (in millions) Total With No Expiration With Expiration Expiration Dates Through Total With No Expiration With Expiration Expiration Dates Through Net operating loss carryforwards Federal $ 41 $ — $ 41 2037 $ 65 $ — $ 65 2037 State $ 876 $ — $ 876 2038 $ 911 $ — $ 911 2037 Foreign $ 6,522 $ 6,287 $ 235 2038 $ 4,608 $ 4,537 $ 71 2036 Tax credit carryforwards Federal $ — $ — $ — N/A $ 7 $ — $ 7 2024 State $ 32 $ 7 $ 25 2038 $ 45 $ 10 $ 35 2026 Foreign $ 21 $ — $ 21 2020 $ 10 $ — $ 10 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ 289 $ — $ 289 2018 Foreign $ 240 $ 193 $ 47 2023 $ 235 $ 235 $ — N/A |
Liabilities For Uncertain Tax Positions | In accordance with ASC 740, the Company’s liability for uncertain tax positions was as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 Tax $ 270 $ 192 Interest 49 25 Penalties 25 11 Net of tax attributes (33 ) (26 ) Total $ 311 $ 202 |
Summary of Income Tax Contingencies | The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes): Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Balance at beginning of fiscal year $ 192 $ 180 $ 304 Gross increases related to prior year tax positions 10 14 21 Gross decreases related to prior year tax positions (12 ) (12 ) (101 ) Gross increases related to current year tax positions 7 10 7 Settlements and statute of limitation expirations (19 ) (7 ) (48 ) Acquisitions 90 6 3 Foreign exchange and others 2 1 (6 ) Balance at end of fiscal year $ 270 $ 192 $ 180 |
Schedule Of Change Of Interest And Penalties | The following table presents the change in interest and penalties from the previous reported period, as well as the liability at the end of each period presented: As of and for the Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 (in millions) Increase (Decrease) Interest $ 2 $ (8 ) $ (6 ) Interest, net of tax $ 2 $ (9 ) $ (4 ) Accrued penalties $ — $ — $ 2 Liability for interest $ 49 $ 25 $ 33 Liability for interest, net of tax $ 43 $ 20 $ 29 Liability for penalties $ 25 $ 11 $ 11 |
Tax Examination Status | A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are: Jurisdiction: Tax Years that Remain Subject to Examination (Fiscal Year Ending): United States – Federal 2005 and forward United States – Various States 2005 and forward Australia 2012 and forward Canada 2010 and forward France 2013 and forward Germany 2010 and forward India 1998 and forward United Kingdom 2013 and forward |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of the Company's debt: As of (in millions) Interest Rates Fiscal Year Maturities March 31, 2018 March 31, 2017 Short-term debt and current maturities of long-term debt Euro-denominated commercial paper (1) (0.1) - 0.02% (2) 2019 $ 863 $ 646 Current maturities of long-term debt Various 2019 439 55 Current maturities of capitalized lease liabilities 0.3% - 6.7% 2019 771 37 Short-term debt and current maturities of long term debt $ 2,073 $ 738 Long-term debt, net of current maturities GBP term loan 1.0% -1.4% (3) 2019 $ 260 $ 233 EUR term loan 1.75% (4) 2019 493 — USD term loan 1.2% - 2.3% (5) 2021 — 571 AUD term loan 2.9% - 3.1% (6) 2022 210 76 EUR term loan 0.9% (7) 2022 187 — USD term loan 2.2% - 3.1% (8) 2022 899 — $500 million Senior notes 2.875% 2020 502 — $650 million Senior notes 2.3% - 3.0% (9) 2021 646 — $274 million Senior notes (10) 4.45% 2023 278 — $171 million Senior notes (10) 4.45% 2023 173 453 $500 million Senior notes 4.25% 2025 507 — £ 250 million Senior notes 2.75% 2025 346 — $500 million Senior notes 4.75% 2028 509 — $234 million Senior notes (11) 7.45% 2030 277 — $66 million Senior notes (11) 7.45% 2030 79 — Revolving credit facility (12) 1.4% - 1.6% 2021 - 2023 — 678 Lease credit facility 1.9% - 2.9% 2020 - 2023 46 60 Capitalized lease liabilities 0.3% - 6.7% 2019 - 2023 1,525 104 Borrowings for assets acquired under long-term financing 2.3% - 4.0% 2019 - 2022 405 77 Mandatorily redeemable preferred stock outstanding 6% 2023 61 61 Other borrowings 0.5% - 14.0% 2019 - 2037 113 4 Long-term debt 7,516 2,317 Less: current maturities of long-term debt and capitalized lease liabilities 1,210 92 Long-term debt, net of current maturities $ 6,306 $ 2,225 (1) During fiscal 2017, DXC increased the maximum size from €500 million to €1 billion . (2) Approximate weighted average interest rate. (3) Three-month LIBOR rate plus 0.65% . (4) Three-month EURIBOR rate plus 1.75% . (5) At DXC's option, the USD term loan bore interest at a variable rate equal to the adjusted LIBOR for a one, two, three, or six month interest period, plus a margin between 0.75% and 1.50% based on a pricing grid consistent with the Company's outstanding revolving credit facility or the greater of the prime rate, the federal funds rate plus 0.50% , or the adjusted LIBOR for a one-month interest period plus 1.00% , in each case plus a margin of up to 0.50% , based on a pricing grid consistent with the revolving credit facility. (6) Variable interest rate equal to the bank bill swap bid rate for a one, two, three or six-month interest period plus 0.95% - 1.45% based on the published credit ratings of DXC. (7) 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 of between 0.75% and 1.35% , based on published credit ratings of DXC. (8) At DXC's option, the USD term loan bears interest at the Eurocurrency Rate for a one, two, three, or six-month interest period, plus a margin of between 1.00% and 1.75% based on published credit ratings of DXC or the Base Rate plus a margin of between 0.00% and 0.75% , based on published credit ratings of DXC. (9) Three-month LIBOR plus 0.95% . (10) During fiscal 2018, DXC completed an exchange offer, whereby $274 million aggregate principal amount of CSC notes were tendered in exchange for a like aggregate principal amount of DXC notes with like maturity and interest rate. Upon completion of the exchange, $171 million aggregate principal amount of CSC Notes remained outstanding. (11) During fiscal 2018, DXC completed an exchange offer whereby $234 million principal amount of the $300 million Senior notes (the "EDS Notes") were tendered in exchange for a like principal amount of DXC notes with like maturity and interest rate. The remaining $66 million principal amount of the EDS Notes outstanding were held by public noteholders. (12) During fiscal 2018, DXC exercised its option to extend the maturity date and also increased commitments to $3.81 billion , $70 million of which matures in January 2021 and $3.74 billion matures in January 2023 . |
Schedule of Future Minimum Lease Payments Required Under Capital Leases | The future minimum lease payments required to be made under the capital leases as of March 31, 2018 , are as follows: Fiscal Year (in millions) 2019 $ 829 2020 463 2021 214 2022 104 2023 29 Thereafter — Total minimum lease payments 1,639 Less: Amount representing interest and executory costs (114 ) Present value of net minimum lease payments 1,525 Less: Current maturities of capital lease obligations (771 ) Long-term capitalized lease liabilities $ 754 |
Schedule of Long Term Debt Expected Maturities | Expected maturities of long-term debt, including borrowings for asset financing but excluding minimum capital lease payments, for fiscal years subsequent to March 31, 2018 , are as follows: Fiscal Year (in millions) 2019 $ 439 2020 1,229 2021 754 2022 1,302 2023 515 Thereafter 1,752 Total $ 5,991 |
Pension and Other Benefit Pla43
Pension and Other Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The weighted-average rates used to determine net periodic pension cost were: Fiscal Years Ended March 31, 2018 March 31, 2017 April 1, 2016 Discount or settlement rates 2.5 % 3.1 % 3.0 % Expected long-term rates of return on assets 4.9 % 6.3 % 6.3 % Rates of increase in compensation levels 2.7 % 2.6 % 2.8 % Projected Benefit Obligations As of (in millions) March 31, 2018 March 31, 2017 Projected benefit obligation at beginning of year $ 3,297 $ 2,879 Benefit obligation assumed as a result of the HPES merger 7,351 — Service cost 121 23 Interest cost 249 82 Plan participants’ contributions 16 3 Amendments (44 ) — Business/contract acquisitions/divestitures 69 313 Contractual termination benefits 13 1 Settlement/curtailment (65 ) (13 ) Actuarial (gain) loss (332 ) 413 Benefits paid (447 ) (120 ) Foreign currency exchange rate changes 1,170 (283 ) Other (14 ) (1 ) Projected benefit obligation at end of year $ 11,384 $ 3,297 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2018 March 31, 2017 Discount rate 2.5 % 2.5 % Rates of increase in compensation levels 2.0 % 2.2 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2018 March 31, 2017 Fair value of plan assets at beginning of year $ 2,998 $ 2,597 Assets assumed as a result of the HPES merger 7,411 — Actual return on plan assets 371 483 Employer contribution 83 123 Plan participants’ contributions 16 3 Benefits paid (447 ) (120 ) Business/contract acquisitions/divestitures (2 ) 199 Contractual termination benefits 4 6 Plan settlement (22 ) (13 ) Foreign currency exchange rate changes 1,176 (279 ) Other (14 ) (1 ) Fair value of plan assets at end of year $ 11,574 $ 2,998 Funded status at end of year $ 190 $ (299 ) As of (in millions) March 31, 2018 March 31, 2017 Other assets 1,118 73 Accrued expenses and other current liabilities (28 ) (7 ) Non-current pension obligations (879 ) (342 ) Other long-term liabilities - OPEB (21 ) (23 ) Net amount recorded $ 190 $ (299 ) Accumulated benefit obligation $ 11,241 $ 3,262 Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets (in millions) March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Projected benefit obligation $ 2,488 $ 996 $ 2,250 $ 938 Accumulated benefit obligation $ 2,363 $ 963 $ 2,162 $ 913 Fair value of plan assets $ 1,552 $ 624 $ 1,338 $ 574 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Service cost $ 121 $ 23 $ 25 Interest cost 249 81 82 92 Expected return on assets (534 ) (161 ) (179 ) Amortization of transition obligation 1 1 1 Amortization of prior service costs (18 ) (17 ) (19 ) Contractual termination benefit 13 1 6 Settlement/curtailment gain (42 ) — (2 ) Recognition of actuarial (gain) loss (178 ) 87 127 Net periodic pension (income) expense $ (388 ) $ 16 $ 51 Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2019 $ 86 Benefit Payments: 2019 $ 299 2020 $ 298 2021 $ 314 2022 $ 380 2023 $ 353 2024 and thereafter $ 2,087 |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | The following is a summary of amounts in AOCI, before tax effects: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 Prior service cost (298 ) (269 ) |
Schedule of Fair Value of Financial Assets for Pension and Postretirement Benefits | Plan Asset Allocations As of Asset Category March 31, 2018 March 31, 2017 Equity securities 25 % 33 % Debt securities 53 % 33 % Alternatives 18 % 25 % Cash and other 4 % 9 % Total 100 % 100 % Fair Value of Plan Assets The tables below set forth the fair value of plan assets by asset category within the fair value hierarchy: As of March 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Equity: Global/International Equity commingled funds $ 465 $ 1,978 $ — $ 2,443 Global equity mutual funds 8 333 — 341 U.S./North American Equity commingled funds 3 46 — 49 Fixed Income: U.S. Government funds — 1 — 1 Non-U.S. Government funds 2 54 — 56 Fixed income commingled funds 3 6,092 — 6,095 Fixed income mutual funds 3 — — 3 Alternatives: Other Alternatives (1) 4 1,228 874 2,106 Hedge Funds (2) — 2 — 2 Other Assets — — 3 3 Insurance contracts — 160 10 170 Cash and cash equivalents 300 5 — 305 Totals $ 788 $ 9,899 $ 887 $ 11,574 As of March 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Equity: Global/International Equity commingled funds $ 1 $ 710 $ — $ 711 Global equity mutual funds 1 251 — 252 U.S./North American Equity commingled funds 1 39 — 40 Fixed Income: Non-U.S. Government funds — 3 — 3 Fixed income commingled funds 1 991 — 992 Fixed income mutual funds 3 — — 3 Alternatives: Other Alternatives (1) 3 412 343 758 Hedge Funds (2) — 1 — 1 Insurance contracts — 131 5 136 Cash equivalents 94 8 — 102 Totals $ 104 $ 2,546 $ 348 $ 2,998 (1) Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities. (2) Represents investments in diversified fund of hedge funds. Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows: (in millions) Balance as of April 1, 2016 $ 315 Actual return on plan assets held at the reporting date 60 Purchases, sales and settlements 9 Changes due to exchange rates (36 ) Balance as of March 31, 2017 348 Actual return on plan assets held at the reporting date 34 Purchases, sales and settlements 443 Changes due to exchange rates 62 Balance as of March 31, 2018 $ 887 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Class of Treasury Stock | Shares repurchased, through both open market purchases and accelerated share repurchase ("ASR") arrangements, are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount (In millions) 2018 Open market purchases 1,537,782 $89.41 $ 137 2016 Open market purchases 3,587,224 $48.28 $ 173 ASR (1) 162,908 $0.00 — Total 3,750,132 $46.18 $ 173 (1) Reflects shares received during fiscal 2016 as settlement of a fiscal 2015 ASR arrangement. |
Schedule of Dividends | Dividends Declared (in millions, except per share amounts) Per Common Share Total Unpaid at Fiscal Year End Fiscal 2018 $ 0.72 $ 209 $ 51 Fiscal 2017 $ 0.56 $ 80 $ 20 Fiscal 2016 (1) $ 2.99 $ 421 $ 19 (1) In connection with the NPS Separation (see Note 3 - " Divestitures "), CSC paid a special cash dividend on November 30, 2015 of $2.25 per share. Payment of the special dividend was made to holders of common stock on the Record Date who received shares of CSRA common stock in the distribution. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in accumulated other comprehensive income (loss), net of taxes: (in millions) Foreign Currency Translation Adjustments Cash Flow Hedges Available-for-sale Securities Pension and Other Post-retirement Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance at April 3, 2015 $ (316 ) $ (2 ) $ — $ 339 $ 21 Current-period other comprehensive (loss) income (83 ) 1 — 1 (81 ) Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — (20 ) (20 ) Transfer to CSRA — — — (31 ) (31 ) Balance at April 1, 2016 $ (399 ) $ (1 ) $ — $ 289 $ (111 ) Current-period other comprehensive (loss) income (59 ) 21 — (2 ) (40 ) Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — (11 ) (11 ) Balance at March 31, 2017 $ (458 ) $ 20 $ — $ 276 $ (162 ) Current-period other comprehensive (loss) income 197 (11 ) 9 — 195 Amounts reclassified from accumulated other comprehensive loss, net of taxes — — — 25 25 Balance at March 31, 2018 $ (261 ) $ 9 $ 9 $ 301 $ 58 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Shares Authorized Under Stock Option Plan | The Board has reserved for issuance shares of DXC common stock, par value $0.01 per share, under each of the plans as detailed below: As of March 31, 2018 Reserved for issuance Available for future grants DXC Employee Equity Plan 34,200,000 22,302,423 DXC Director Equity Plan 230,000 123,634 DXC Share Purchase Plan 250,000 248,526 Total 34,680,000 22,674,583 As of March 31, 2018 Options Outstanding Options Exercisable Range of Option Exercise Price Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Number Exercisable Weighted Average Exercise Price $10.35 - $29.70 748,574 $ 21.74 4.05 748,574 $ 21.74 $30.31 - $48.46 1,421,166 $ 36.57 5.33 1,421,166 $ 36.57 $49.24 - 86.17 763,761 $ 55.13 6.26 736,061 $ 55.03 2,933,501 2,905,801 |
Schedule of Employee Service Share-based Compensation | The Company recognized share-based compensation expense for fiscal 2018 , 2017 and 2016 as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Total share-based compensation cost $ 93 $ 75 $ 46 Related income tax benefit $ 21 $ 25 $ 17 Total intrinsic value of options exercised $ 136 $ 73 $ 46 Tax benefits from exercised stock options and awards $ 84 $ 34 $ 62 |
Schedule of Valuation Assumptions | In calculating the compensation expense for its stock incentive plans, the Company used the following weighted average assumptions: Fiscal Years Ended March 31, 2017 April 1, 2016 Risk-free interest rate 1.60 % 1.81 % Expected volatility 29 % 31 % Expected term (in years) 6.09 6.23 Dividend yield 1.56 % 1.39 % |
Schedule of Shares Outstanding | Information concerning stock options granted under stock incentive plans was as follows: Number of Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of April 3, 2015 5,556,309 $ 46.08 5.93 $ 107 Granted 1,052,129 $ 30.70 Issued due to NPS Separation modification 1,614,465 $ 28.40 Exercised (2,372,109 ) $ 19.27 $ 46 Canceled/Forfeited (434,578 ) $ 28.59 Expired (49,595 ) $ 20.87 Outstanding as of April 1, 2016 5,366,621 $ 24.83 7.06 $ 51 Granted 2,450,976 $ 50.91 Exercised (2,544,955 ) $ 21.84 $ 73 Canceled/Forfeited (448,505 ) $ 36.94 Expired (56,741 ) $ 14.36 Outstanding as of March 31, 2017 4,767,396 $ 38.70 8.01 $ 145 Granted — $ — HPE options converted to DXC options at HPES Merger 2,654,970 $ 46.56 CSC options converted to RSUs due to HPES Merger (1,521,519 ) $ 51.00 Exercised (2,916,045 ) $ 40.39 $ 136 Canceled/Forfeited (14,890 ) $ 69.52 Expired (36,411 ) $ 36.69 Outstanding as of March 31, 2018 2,933,501 $ 37.62 5.24 $ 185 Vested and expected to vest in the future as of March 31, 2018 2,930,263 $ 37.60 5.24 $ 184 Exercisable as of March 31, 2018 2,905,801 $ 37.43 5.23 $ 183 Information concerning RSUs (including PSUs) granted under the stock incentive plans, was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of April 3, 2015 2,579,675 $ 48.70 Granted 3,234,197 $ 27.97 Issued due to NPS Separation modification 419,160 $ 29.95 Settled (1,783,664 ) $ 28.87 Canceled/Forfeited (851,369 ) $ 40.97 Outstanding as of April 1, 2016 3,597,999 $ 29.25 Granted 1,150,185 $ 47.70 Settled (602,467 ) $ 27.29 Canceled/Forfeited (434,732 ) $ 32.86 Outstanding as of March 31, 2017 3,710,985 $ 34.86 Granted 1,828,667 $ 82.34 HPE RSUs converted to DXC RSUs due to HPES Merger 95,816 $ 69.34 Options converted to RSUs due to HPES Merger 609,416 $ 32.58 Settled (1,934,446 ) $ 35.93 Canceled/Forfeited (324,822 ) $ 59.34 Outstanding as of March 31, 2018 3,985,616 $ 54.61 Information concerning RSUs granted to non-employee directors was as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of April 3, 2015 143,986 $ 30.02 Granted 65,188 $ 31.75 Settled (107,878 ) $ 33.11 Canceled/Forfeited (12,250 ) $ 33.96 Outstanding as of April 1, 2016 89,046 $ 27.00 Granted 33,600 $ 47.35 Settled (32,080 ) $ 28.58 Canceled/Forfeited (4,800 ) $ 30.31 Outstanding as of March 31, 2017 85,766 $ 34.19 Granted 22,900 $ 84.40 Settled (39,980 ) $ 45.25 Canceled/Forfeited (2,300 ) $ 85.35 Outstanding as of March 31, 2018 66,386 $ 43.08 |
Cash Flows (Tables)
Cash Flows (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Payments for Interest on Indebtedness and for Income Taxes | Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Cash paid for: Interest $ 288 $ 103 $ 124 Taxes on income, net of refunds $ 376 $ 63 $ 65 Non-cash activities: Operating: Prepaid assets acquired under long-term financing $ 209 $ — $ — Investing: Capital expenditures in accounts payable and accrued expenses $ 46 $ 43 $ 42 Capital expenditures through capital lease obligations $ 664 $ 52 $ 47 Assets acquired under long-term financing $ 238 $ 87 $ 1 Financing: Dividends declared but not yet paid $ 51 $ 20 $ 19 Stock issued for the acquisition of HPES $ 9,850 $ — $ — |
Other Income_ Expense, Net (Tab
Other Income/ Expense, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense) | The following table summarizes components of other income, net: Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Foreign currency gain $ (71 ) $ (8 ) $ (1 ) Other gain (11 ) (2 ) (8 ) Totals $ (82 ) $ (10 ) $ (9 ) |
Segment and Geographic Inform48
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Reportable Segment | The following table summarizes operating results regularly provided to the chief operating decision maker by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS USPS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2018 Revenues $ 9,254 $ 12,479 $ 2,823 $ 24,556 $ — $ 24,556 Segment Profit $ 1,563 $ 1,699 $ 417 $ 3,679 $ (180 ) $ 3,499 Depreciation and amortization (1) $ 99 $ 1,082 $ 99 $ 1,280 $ 93 $ 1,373 Fiscal Year Ended March 31, 2017 Revenues $ 4,173 $ 3,434 $ — $ 7,607 $ — $ 7,607 Segment Profit $ 492 $ 306 $ — $ 798 $ (180 ) $ 618 Depreciation and amortization (1) $ 107 $ 399 $ — $ 506 $ 64 $ 570 Fiscal Year Ended April 1, 2016 Revenues $ 3,637 $ 3,469 $ — $ 7,106 $ — $ 7,106 Segment Profit $ 417 $ 239 $ — $ 656 $ (251 ) $ 405 Depreciation and amortization (1) $ 124 $ 491 $ — $ 615 $ 43 $ 658 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $591 million , $77 million , and $0 million for fiscal 2018, 2017, and 2016, respectively. |
Reconciliation of Consolidated Operating Income to Income Before Taxes | Fiscal Years Ended (in millions) March 31, 2018 March 31, 2017 April 1, 2016 Profit Total profit for reportable segments $ 3,679 $ 798 $ 656 All other loss (180 ) (180 ) (251 ) Interest income 89 35 38 Interest expense (335 ) (117 ) (123 ) Restructuring costs (803 ) (238 ) (23 ) Pension and OPEB actuarial and settlement gains 220 (87 ) (99 ) Amortization of acquired intangible assets (591 ) (77 ) — Transaction and integration-related costs (408 ) (308 ) (93 ) Debt extinguishment costs — — (95 ) Income (loss) from continuing operations, before taxes $ 1,671 $ (174 ) $ 10 |
Revenue and Property and Equipment, and Total Assets by Geographic Segment | Geographic revenues, property and equipment and total assets were as follows: Fiscal Year Ended March 31, 2018 (in millions) United States United Kingdom Australia Other Europe Other International Total Revenues $ 10,838 $ 3,392 $ 1,694 $ 5,409 $ 3,223 $ 24,556 Property and Equipment, net $ 1,553 $ 535 $ 191 $ 465 $ 902 $ 3,646 Total Assets $ 16,986 $ 9,756 $ 591 $ 4,726 $ 1,862 $ 33,921 Fiscal Year Ended March 31, 2017 United States United Kingdom Australia Other Europe Other International Total Revenues $ 2,986 $ 1,482 $ 921 $ 1,594 $ 624 $ 7,607 Property and Equipment, net $ 389 $ 235 $ 58 $ 134 $ 87 $ 903 Total Assets $ 4,925 $ 1,019 $ 978 $ 358 $ 1,383 $ 8,663 Fiscal Year Ended April 1, 2016 United States United Kingdom Australia Other Europe Other International Total Revenues $ 3,057 $ 1,570 $ 483 $ 1,474 $ 522 $ 7,106 Property and Equipment, net $ 466 $ 244 $ 63 $ 157 $ 95 $ 1,025 Total Assets $ 3,330 $ 1,053 $ 703 $ 1,580 $ 1,070 $ 7,736 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring Costs [Abstract] | |
Schedule of Restructuring Expense | The composition of restructuring liabilities by financial statement line items is as follows: As of (in millions) March 31, 2018 March 31, 2017 Accrued expenses and other current liabilities $ 371 $ 171 Other long-term liabilities 156 6 Total $ 527 $ 177 |
Schedule of Restructuring Activities | Restructuring activities, summarized by plan year, were as follows: Restructuring Liability as of March 31, 2017 Acquired Balance Costs Expensed, (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2018 Fiscal 2018 Plans Workforce Reductions $ — n/a $ 626 $ (10 ) $ (368 ) $ 10 $ 258 Facilities Costs — n/a 214 (4 ) (108 ) 2 104 Total $ — n/a $ 840 $ (14 ) $ (476 ) $ 12 $ 362 Fiscal 2017 Plan Workforce Reductions $ 155 n/a $ (32 ) $ (2 ) $ (112 ) $ 10 $ 19 Facilities Costs 6 n/a — — (5 ) 2 3 Total $ 161 n/a $ (32 ) $ (2 ) $ (117 ) $ 12 $ 22 Fiscal 2016 Plan Workforce Reductions $ 8 n/a $ (2 ) $ 1 $ (4 ) $ — $ 3 Facilities Costs 5 n/a — — (3 ) — 2 Total $ 13 n/a $ (2 ) $ 1 $ (7 ) $ — $ 5 Fiscal 2015 Plan Workforce Reductions $ 3 n/a $ — $ — $ (2 ) $ — $ 1 Facilities Costs — n/a — — — — — Total $ 3 n/a $ — $ — $ (2 ) $ — $ 1 Acquired Liabilities Workforce Reductions n/a $ 256 $ — $ (2 ) $ (153 ) $ 9 $ 110 Facilities Costs n/a 70 (3 ) (3 ) (37 ) — 27 Total n/a $ 326 $ (3 ) $ (5 ) $ (190 ) $ 9 $ 137 (1) Costs expensed, net of reversals include $34 million , $3 million , and $3 million of costs reversed from the Fiscal 2017 Plan, Fiscal 2016 Plan and Acquired liabilities, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. Restructuring Liability as of April 1, 2016 Costs Expensed, Net of Reversals (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2017 Fiscal 2017 Plan Workforce Reductions $ — $ 239 $ (6 ) $ (79 ) $ 1 $ 155 Facilities Costs — 9 — (3 ) — 6 Total $ — $ 248 $ (6 ) $ (82 ) $ 1 $ 161 Fiscal 2016 Plan Workforce Reductions $ 29 $ (3 ) $ — $ (17 ) $ (1 ) $ 8 Facilities Costs 30 (4 ) — (20 ) (1 ) 5 Total $ 59 $ (7 ) $ — $ (37 ) $ (2 ) $ 13 Fiscal 2015 Plan Workforce Reductions $ 29 $ (3 ) $ — $ (22 ) $ (1 ) $ 3 Facilities Costs — — — — — — Total $ 29 $ (3 ) $ — $ (22 ) $ (1 ) $ 3 (1) Costs expensed, net of reversals include $7 million and $3 million of costs reversed from the Fiscal 2016 Plan and Fiscal 2015 Plan, respectively. (2) Pension benefit augmentations recorded as a pension liability. (3) Foreign currency translation adjustments. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Operating Lease Payments | Minimum fixed rentals required for the next five years and thereafter under operating leases in effect at March 31, 2018 , were as follows: Fiscal year (in millions) Real Estate Equipment 2019 $ 374 $ 331 2020 281 242 2021 225 80 2022 234 7 2023 146 1 Thereafter 763 — Minimum fixed rentals 2,023 661 Less: Sublease rental income (187 ) — Totals $ 1,836 $ 661 |
Schedule of Long-term Purchase Agreements | Minimum purchase commitments as of March 31, 2018 were as follows: Fiscal year Minimum Purchase Commitment (1) (in millions) 2019 $ 1,946 2020 1,913 2021 390 2022 237 2023 202 Thereafter 54 Total $ 4,742 (1) A significant portion of the minimum purchase commitments in fiscal 2019 and 2020 relate to the amounts committed under the HPE preferred vendor agreements. |
Expiration of Financial Guarantees And Stand-by Letters Of Credit Outstanding | The following table summarizes the expiration of the Company’s financial guarantees and stand-by letters of credit outstanding as of March 31, 2018 : (in millions) Fiscal 2019 Fiscal 2020 Fiscal 2021 and Thereafter Totals Surety bonds $ 308 $ 19 $ 18 $ 345 Letters of credit 170 41 313 524 Stand-by letters of credit 13 16 7 36 Totals $ 491 $ 76 $ 338 $ 905 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2019 | Apr. 01, 2017 | ||
Accounting Policies [Abstract] | ||||||
Percentage of total revenue accounted for percentage-of-completion | 3.00% | |||||
Retained Earnings Adjustments [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | [1] | $ 0.01 | ||
Adjustment to retained earnings | $ 1,301 | $ (170) | [1] | |||
As Previously Reported | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 1 | |||||
Pro Forma | Accounting Standards Update 2017-07 | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Reclassification of non-service cost components of net periodic pension income | 509 | 7 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Pro Forma | Minimum | Accounting Standards Update 2014-09 | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Adjustment to retained earnings | $ 100 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Pro Forma | Maximum | Accounting Standards Update 2014-09 | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Adjustment to retained earnings | $ 125 | |||||
Pension Plans, Defined Benefit | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Service cost | 121 | 23 | $ 25 | |||
Pension Plans, Defined Benefit | Pro Forma | Accounting Standards Update 2017-07 | ||||||
Retained Earnings Adjustments [Line Items] | ||||||
Service cost | $ 121 | $ 23 | ||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Building | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 40 years |
Minimum | Computers and related equipment | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 4 years |
Minimum | Furniture and other equipment | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 3 years |
Maximum | Computers and related equipment | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 5 years |
Maximum | Furniture and other equipment | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 15 years |
Maximum | Leasehold improvements | |
Property, Plant, and Equipment - Useful Life [Abstract] | |
Property, plant and equipment useful life (in years) | 20 years |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Intangible Assets (Details) - Software | 12 Months Ended |
Mar. 31, 2018 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Acquisitions - HPES Narrative (
Acquisitions - HPES Narrative (Details) $ in Millions | Apr. 01, 2017USD ($)shares | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($)tranche | Apr. 01, 2016USD ($) | May 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||||||
Long-term capitalized lease liabilities | $ 754 | ||||||
Goodwill | 9,652 | $ 1,855 | [1] | $ 1,277 | |||
Net income (loss) | 1,782 | (100) | 263 | ||||
Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Shares issued for each share of CSC common stock (in shares) | shares | 1 | ||||||
Equity interest issued (in shares) | shares | 141,298,797 | ||||||
Percentage ownership of CSC stockholders following the Merger | 49.90% | ||||||
Adjustment to settle obligations | 203 | ||||||
Adjustment to capital leases | $ 1,000 | 1,000 | |||||
Adjustment to property, plant, and equipment | 99 | ||||||
Decrease to net assets | 638 | ||||||
Adjustment to total assets | 1,100 | ||||||
Adjustment to accounts receivable | 137 | ||||||
Adjustment to intangible assets | (440) | ||||||
Adjustment to liabilities | 1,700 | ||||||
Adjustment to deferred revenue | 436 | ||||||
Adjustment to debt | 106 | ||||||
Adjustment to long-term tax related liabilities | 192 | ||||||
Goodwill | $ 7,392 | ||||||
Restructuring liabilities | 326 | ||||||
Long term debt | 4,806 | ||||||
Adjustment to debt | 12 | ||||||
Adjustment to deferred debt issuance costs | 12 | ||||||
Capital lease obligation | 1,700 | ||||||
Hewlett Packard Enterprise Company | |||||||
Business Acquisition [Line Items] | |||||||
Debt and accrued interest | 87 | ||||||
Maximum | Hewlett Packard Enterprise Services | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Long-term capitalized lease liabilities | $ 250 | ||||||
Assets Held under Capital Leases | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Adjustment to property, plant, and equipment | 654 | 424 | |||||
Adjustment to goodwill | $ 371 | ||||||
Land and Data Centers | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Adjustment to property, plant, and equipment | (318) | ||||||
Customer relationships | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Adjustment to intangible assets | 1,300 | ||||||
GBS | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 4,543 | 1,470 | 914 | ||||
GBS | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 2,800 | ||||||
GIS | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 3,099 | 385 | $ 363 | ||||
GIS | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 2,600 | ||||||
USPS | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 2,010 | 0 | |||||
USPS | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 2,000 | ||||||
Workforce Reductions | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring liabilities | 256 | ||||||
Facilities Costs | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring liabilities | $ 70 | ||||||
Senior notes | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Long term debt | 1,800 | ||||||
Adjustment to debt | 94 | ||||||
Secured debt | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Long term debt | $ 2,000 | ||||||
Number of tranches | tranche | 3 | ||||||
Senior Notes, Issued 2017 | Senior notes | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Long term debt | $ 1,500 | ||||||
Senior Notes, Issued 1999 | Senior notes | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Long term debt | $ 300 | ||||||
Acquisition-related Costs | Hewlett Packard Enterprise Services | |||||||
Business Acquisition [Line Items] | |||||||
Net income (loss) | $ (26) | ||||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Acquisitions - Schedule of HPES
Acquisitions - Schedule of HPES Total Consideration (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 01, 2017 | Mar. 31, 2017 |
Hewlett Packard Enterprise Services | ||
Business Acquisition [Line Items] | ||
Fair value of purchase consideration received by HPE stockholders | $ 9,782 | |
Fair value of HPES options assumed by CSC | 68 | |
Total consideration transferred | $ 9,850 | |
Ownership percentage of HPE stockholders | 50.10% | |
Number of shares to acquired entity stockholders (in shares) | 141,865,656 | |
Number of share to acquired entity stockholders, net (in shares) | 141,741,712 | |
Number of shares to acquired entity stockholders, cancelled (in shares) | 123,944 | |
Computer Sciences Corporation | ||
Business Acquisition [Line Items] | ||
Closing price (in dollars per share) | $ 69.01 |
Acquisitions - Summary of HPES
Acquisitions - Summary of HPES Purchase Price (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2017 | [1] | Apr. 01, 2016 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 9,652 | $ 1,855 | $ 1,277 | ||
Hewlett Packard Enterprise Services | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 938 | ||||
Accounts receivable | 4,102 | ||||
Other current assets | 530 | ||||
Total current assets | 5,570 | ||||
Property and equipment | 2,581 | ||||
Intangible assets | 6,384 | ||||
Other assets | 1,571 | ||||
Total assets acquired | 16,106 | ||||
Accounts payable, accrued payroll, accrued expenses, and other current liabilities | (4,605) | ||||
Deferred revenue | (1,315) | ||||
Long-term debt, net of current maturities | (4,806) | ||||
Long-term deferred tax liabilities and income tax payable | (1,550) | ||||
Other liabilities | (1,322) | ||||
Total liabilities assumed | (13,598) | ||||
Net identifiable assets acquired | 2,508 | ||||
Add: Fair value of non-controlling interests | (50) | ||||
Goodwill | 7,392 | ||||
Total consideration transferred | $ 9,850 | ||||
Adjustment to settle obligations | $ 203 | ||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Acquisitions - Summary of HPE57
Acquisitions - Summary of HPES Property and Equipment Acquired (Details) - Hewlett Packard Enterprise Services $ in Millions | Apr. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Property and equipment | $ 2,581 |
Land, buildings, and leasehold improvements | |
Business Acquisition [Line Items] | |
Property and equipment | 1,470 |
Computers and related equipment | |
Business Acquisition [Line Items] | |
Property and equipment | 960 |
Furniture and other equipment | |
Business Acquisition [Line Items] | |
Property and equipment | 47 |
Construction in progress | |
Business Acquisition [Line Items] | |
Property and equipment | $ 104 |
Acquisitions - Summary of HPE58
Acquisitions - Summary of HPES Intangibles Assets Acquired (Details) - Hewlett Packard Enterprise Services $ in Millions | Apr. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Acquired intangible assets | $ 6,384 |
Customer relationships | |
Business Acquisition [Line Items] | |
Acquired intangible assets | 5,277 |
Developed technology | |
Business Acquisition [Line Items] | |
Acquired intangible assets | 74 |
Third-party purchased software | |
Business Acquisition [Line Items] | |
Acquired intangible assets | 642 |
Outsourcing contract costs | |
Business Acquisition [Line Items] | |
Acquired intangible assets | 368 |
Other intangible assets | |
Business Acquisition [Line Items] | |
Acquired intangible assets | $ 23 |
Useful Lives (Years) | 4 years |
Minimum | Customer relationships | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 10 years |
Minimum | Developed technology | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 2 years |
Minimum | Third-party purchased software | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 2 years |
Maximum | Customer relationships | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 13 years |
Maximum | Developed technology | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 7 years |
Maximum | Third-party purchased software | |
Business Acquisition [Line Items] | |
Useful Lives (Years) | 7 years |
Acquisitions - Summary of HPE59
Acquisitions - Summary of HPES Defined Benefit Pension Plan (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Other long-term liabilities | $ (879) | $ (342) | [1] | ||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Other assets | 1,118 | 73 | |||
Accrued expenses and other current liabilities | (28) | (7) | |||
Net amount recorded | 190 | (299) | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||||
Projected benefit obligation | (11,384) | (3,297) | $ (2,879) | ||
Fair value of plan assets | 11,574 | 2,998 | $ 2,597 | ||
Funded status at end of year | $ 190 | $ (299) | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 100.00% | 100.00% | |||
Pension Plans, Defined Benefit | Hewlett Packard Enterprise Services | |||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Other assets | $ 558 | ||||
Accrued expenses and other current liabilities | (13) | ||||
Other long-term liabilities | (547) | ||||
Net amount recorded | (2) | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||||
Projected benefit obligation | (7,413) | ||||
Fair value of plan assets | 7,411 | ||||
Funded status at end of year | $ (2) | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 100.00% | ||||
Equity securities | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 25.00% | 33.00% | |||
Equity securities | Pension Plans, Defined Benefit | Hewlett Packard Enterprise Services | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 22.00% | ||||
Debt securities | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 53.00% | 33.00% | |||
Debt securities | Pension Plans, Defined Benefit | Hewlett Packard Enterprise Services | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 72.00% | ||||
Alternatives | Pension Plans, Defined Benefit | Hewlett Packard Enterprise Services | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 5.00% | ||||
Cash and cash equivalents | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||||
Fair value of plan assets | $ 305 | $ 102 | |||
Cash and cash equivalents | Pension Plans, Defined Benefit | Hewlett Packard Enterprise Services | |||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Percent of plan assets | 1.00% | ||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Acquisitions - Summary of HPE60
Acquisitions - Summary of HPES Pro Forma Information (Details) - Hewlett Packard Enterprise Services - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 17,423 | |
Net income | $ 1,772 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenues | $ 25,394 | |
Net loss | (23) | |
Net loss attributable to the Company | $ (51) | |
Loss per common share: | ||
Basic (in dollars per share) | $ (0.18) | |
Diluted (in dollars per share) | $ (0.18) |
Acquisitions - Fiscal 2018 Acqu
Acquisitions - Fiscal 2018 Acquisitions (Details) - USD ($) $ in Millions | Jul. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | [1] | Apr. 01, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 9,652 | $ 1,855 | $ 1,277 | ||
Tribridge Holdings LLC | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 152 | ||||
Current assets acquired | 32 | ||||
Property and equipment | 4 | ||||
Intangible assets, other than goodwill | 62 | ||||
Current liabilities | 24 | ||||
Goodwill | $ 78 | ||||
Useful Lives (Years) | 12 years | ||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Acquisitions - Fiscal 2017 Acqu
Acquisitions - Fiscal 2017 Acquisitions (Details) - USD ($) | May 05, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Business Acquisition [Line Items] | |||||
Payments for acquisitions, net of cash acquired | $ 203,000,000 | $ 434,000,000 | $ 554,000,000 | ||
Goodwill | 9,652,000,000 | 1,855,000,000 | [1] | 1,277,000,000 | |
Xchanging | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 693,000,000 | ||||
Payments for acquisitions, net of cash acquired | 492,000,000 | ||||
Acquisition related costs | 17,000,000 | ||||
Current assets acquired | 396,000,000 | ||||
Noncurrent assets | 99,000,000 | ||||
Intangible assets | 582,000,000 | ||||
Current liabilities | 267,000,000 | ||||
Long-term liabilities | 516,000,000 | ||||
Goodwill | 680,000,000 | ||||
Expected tax deductible amount of goodwill acquired | 0 | ||||
Non-controlling interest | $ 281,000,000 | ||||
Customer relationships | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Useful Lives (Years) | 15 years | ||||
GBS | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 4,543,000,000 | 1,470,000,000 | 914,000,000 | ||
GBS | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 646,000,000 | ||||
GIS | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,099,000,000 | $ 385,000,000 | $ 363,000,000 | ||
GIS | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 34,000,000 | ||||
Minimum | Developed technology | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Useful Lives (Years) | 7 years | ||||
Minimum | Trade names | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Useful Lives (Years) | 3 years | ||||
Maximum | Developed technology | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Useful Lives (Years) | 8 years | ||||
Maximum | Trade names | Xchanging | |||||
Business Acquisition [Line Items] | |||||
Useful Lives (Years) | 5 years | ||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Acquisitions - Fiscal 2016 Acqu
Acquisitions - Fiscal 2016 Acquisitions (Details) - USD ($) | Feb. 26, 2016 | Sep. 24, 2015 | Sep. 17, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Business Acquisition [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | $ 203,000,000 | $ 434,000,000 | $ 554,000,000 | ||||
Cash acquired through HPES Merger | 938,000,000 | 0 | 0 | ||||
Goodwill | 9,652,000,000 | $ 1,855,000,000 | [1] | $ 1,277,000,000 | |||
UXC Limited | |||||||
Business Acquisition [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | $ 289,000,000 | ||||||
Cash acquired through HPES Merger | 13,000,000 | ||||||
Transaction costs | 7,000,000 | ||||||
Current assets acquired | 125,000,000 | ||||||
Noncurrent assets | 37,000,000 | ||||||
Intangible assets, other than goodwill | 91,000,000 | ||||||
Current liabilities | 153,000,000 | ||||||
Long-term liabilities | 50,000,000 | ||||||
Goodwill | 252,000,000 | ||||||
Expected tax deductible amount of goodwill acquired | $ 0 | ||||||
UXC Limited | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Useful Lives (Years) | 10 years | ||||||
Fixnetix, Limited | |||||||
Business Acquisition [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | $ 88,000,000 | ||||||
Cash acquired through HPES Merger | 1,000,000 | ||||||
Goodwill | 2,000,000 | ||||||
Total consideration transferred | 112,000,000 | ||||||
Liabilities incurred | $ 21,000,000 | ||||||
Fruition Partners | |||||||
Business Acquisition [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | $ 148,000,000 | ||||||
Cash acquired through HPES Merger | $ 2,000,000 | ||||||
Fair value | Fixnetix, Limited | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 0 | ||||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Millions | Nov. 27, 2015 | Feb. 28, 2017 | Mar. 31, 2017 | Apr. 01, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Separation costs | $ 122 | |||
Spin-off costs | 19 | |||
Income from Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Spin-off costs | 103 | |||
Affiliated entity | Intellectual Property Matters Agreement | CSRA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Annual net maintenance fee | $ 30 | |||
Annual maintenance fee, term | 5 years | |||
Payment for release of obligation | $ 65 | |||
Affiliated entity | Intellectual Property Matters Agreement | CSRA | Revenue | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue from related parties | $ 125 | $ 35 | ||
Revenue from related parties previously deferred | $ 20 |
Divestitures - Summary of Opera
Divestitures - Summary of Operating Results of NPS (Details) - NPS Segment - Discontinued Operations, Disposed of by Means Other than Sale, Spinoff $ in Millions | 8 Months Ended |
Nov. 27, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Revenues | $ 2,504 |
Costs of services | 1,935 |
Selling, general and administrative | 52 |
Depreciation and amortization | 90 |
Restructuring costs | 1 |
Separation and merger costs | 103 |
Interest expense | 15 |
Other (income) expense, net | (21) |
Income from discontinued operations before income taxes | 329 |
Income tax expense | (138) |
Net income from discontinued operations, net of tax | $ 191 |
Divestitures - Fiscal 2016 Dive
Divestitures - Fiscal 2016 Divestiture (Details) - Discontinued Operations, Disposed of by Sale | 12 Months Ended |
Apr. 01, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gain (loss) on disposal | $ 0 |
Welkin Associates Limited | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Amount of cash consideration received | 34,000,000 |
Net gain on disposition of business | $ 22,000,000 |
Divestitures - CSRA Spin-off Ca
Divestitures - CSRA Spin-off Cash Flows (Details) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended | ||
Nov. 27, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Capital expenditures through capital lease obligations | $ (664) | $ (52) | $ (47) | |
Capital expenditures in accounts payable | $ (46) | $ (43) | $ (42) | |
CSRA | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | $ 75 | |||
Amortization | 15 | |||
Capital expenditures | (75) | |||
Net gain on disposition of business | 22 | |||
Capital expenditures through capital lease obligations | 0 | |||
Capital expenditures in accounts payable | (7) | |||
Disposition of assets | $ (8) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Net income (loss) attributable to DXC common shareholders: | |||
From continuing operations | $ 1,751 | $ (123) | $ 71 |
From discontinued operations | 0 | 0 | 180 |
Net income (loss) attributable to DXC common stockholders | $ 1,751 | $ (123) | $ 251 |
Common share information: | |||
Weighted average common shares outstanding for basic EPS (in shares) | 284,930 | 140,390 | 138,280 |
Dilutive effect of stock options and equity awards (in shares) | 4,840 | 0 | 3,050 |
Weighted average common shares outstanding for diluted EPS (in shares) | 289,770 | 140,390 | 141,330 |
Basic EPS: | |||
Continuing operations (in dollars per share) | $ 6.15 | $ (0.88) | $ 0.51 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.31 |
Basic EPS (in dollars per share) | 6.15 | (0.88) | 1.82 |
Diluted EPS: | |||
Continuing operations (in dollars per share) | 6.04 | (0.88) | 0.50 |
Discontinued operations (in dollars per share) | 0 | 0 | 1.28 |
Diluted EPS (in dollars per share) | $ 6.04 | $ (0.88) | $ 1.78 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 3,317,041 | 2,064,951 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 54,637 | 845,315 | 201,581 |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 96,029 | 1,540,152 | 0 |
Receivables - Receivables, Net
Receivables - Receivables, Net of Allowance (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net of allowance for doubtful accounts | $ 5,913 | $ 1,643 | [1] |
Billed trade receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net of allowance for doubtful accounts | 3,245 | 732 | |
Unbilled receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net of allowance for doubtful accounts | 1,478 | 402 | |
Other receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net of allowance for doubtful accounts | $ 1,190 | $ 509 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Receivables - Allowance for Dou
Receivables - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Beginning balance | $ 26 | [1] | $ 31 | $ 26 | |
Additions charged to costs and expenses | 45 | 10 | 6 | ||
Deductions | (37) | (13) | (3) | ||
Other | 6 | (2) | 2 | ||
Ending balance | $ 40 | $ 26 | [1] | $ 31 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Receivables - Sale of Receivabl
Receivables - Sale of Receivables (Details) - USD ($) | 12 Months Ended | ||||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Jan. 23, 2018 | Jan. 22, 2018 | Mar. 31, 2017 | Dec. 21, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable securitization facility, amount | $ 250,000,000 | ||||||
Availability under securitization facility | $ 188,000,000 | $ 217,000,000 | |||||
Length of extension | 1 year | ||||||
Gain (loss) on sale of receivables | $ 0 | $ 0 | |||||
Cash proceeds received | 188,000,000 | 223,000,000 | |||||
Deferred purchase price receivable | 252,000,000 | 0 | 233,000,000 | 252,000,000 | |||
Liability recorded due to exceeded maximum funding limit | 0 | 6,000,000 | |||||
Transfer of Financial Assets Accounted for as Sales, Deferred Purchase Price [Roll Forward] | |||||||
Deferred purchase price receivable, Beginning balance | 252,000,000 | 0 | |||||
Transfers of receivables | 2,222,000,000 | 1,195,000,000 | |||||
Collections | (2,225,000,000) | (943,000,000) | |||||
Fair value adjustment | (16,000,000) | 0 | |||||
Deferred purchase price receivable, Ending balance | 233,000,000 | $ 252,000,000 | |||||
Transfers of receivables | 2,090,000,000 | ||||||
Collections | 1,970,000,000 | ||||||
Operating cash flow effect | 120,000,000 | ||||||
Restricted cash | $ 68,000,000 | ||||||
Outstanding balance | $ 188,000,000 | $ 223,000,000 | |||||
The Royal Bank of Scotland, PLC | |||||||
Transfer of Financial Assets Accounted for as Sales, Deferred Purchase Price [Roll Forward] | |||||||
Receivables purchase facility commitment amount | $ 300,000,000 | $ 200,000,000 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Recurring | ||
Assets: | ||
Money market funds and money market deposit accounts | $ 84 | $ 406 |
Time deposits | 114 | |
Other debt securities | 59 | |
Deferred purchase price receivable | 233 | 252 |
Total assets | 490 | 658 |
Liabilities: | ||
Contingent consideration | 5 | 7 |
Total liabilities | 5 | 7 |
Recurring | Level 1 | ||
Assets: | ||
Money market funds and money market deposit accounts | 84 | 406 |
Time deposits | 114 | |
Other debt securities | 0 | |
Deferred purchase price receivable | 0 | 0 |
Total assets | 198 | 406 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Money market funds and money market deposit accounts | 0 | 0 |
Time deposits | 0 | |
Other debt securities | 53 | |
Deferred purchase price receivable | 0 | 0 |
Total assets | 53 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 3 | ||
Assets: | ||
Money market funds and money market deposit accounts | 0 | 0 |
Time deposits | 0 | |
Other debt securities | 6 | |
Deferred purchase price receivable | 233 | 252 |
Total assets | 239 | 252 |
Liabilities: | ||
Contingent consideration | 5 | 7 |
Total liabilities | 5 | $ 7 |
Other Debt Securities | ||
Liabilities: | ||
Available-for-sale, cost basis | 42 | |
Available-for-sale, unrealized gain | $ 11 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)counterparty | Mar. 31, 2017USD ($) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, net of current maturities | $ 6,306 | $ 2,225 | [1] |
Impairment of goodwill | 0 | 0 | |
Impairment of tangible assets | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | |
Impairment of long-lived assets | $ 0 | 0 | |
Foreign Exchange Contract | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Number of counterparties to foreign currency derivative instruments | counterparty | 7 | ||
Foreign Exchange Contract | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative instrument, maximum amount of loss | $ 9 | ||
Fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, net of current maturities | 6,100 | 2,200 | |
Carrying value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, net of current maturities | $ 6,000 | $ 2,200 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivative [Line Items] | ||
Estimated fair value of foreign currency derivative assets | $ 634 | $ 486 |
Foreign currency cash flow hedge gain to be reclassified into earnings during next 12 months | 15 | |
Forward Contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives outstanding | 3,100 | 2,900 |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 635 | $ 607 |
Derivative Instruments - Nondes
Derivative Instruments - Nondesignated Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Foreign currency forward contracts | Other (income) expense, net | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Pretax gain (loss) on derivative instruments | $ 118 | $ (84) | $ 19 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 24 | $ 47 |
Derivative liability, fair value | 9 | 13 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 20 | 32 |
Derivative liability, fair value | 3 | 1 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 6 | 5 |
Designated as Hedging Instrument | Other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 14 | 27 |
Designated as Hedging Instrument | Other long-term liabilities | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 1 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 3 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 4 | 15 |
Derivative liability, fair value | 6 | 12 |
Not Designated as Hedging Instrument | Other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 4 | 15 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 6 | $ 12 |
Derivative Instruments - Assets
Derivative Instruments - Assets and Liabilities Not Offset (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative asset, fair value | $ 24 | $ 47 |
Derivative liability, fair value | 9 | 13 |
Derivative asset, not offset | 1 | 1 |
Derivative liability, not offset | 2 | 2 |
Derivative asset, net amount | 23 | 46 |
Derivative liability, net amount | $ 7 | $ 11 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | ||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment—at cost | $ 7,398 | $ 3,719 | ||
Less: accumulated depreciation and amortization | 3,752 | 2,816 | [1] | |
Property and equipment, net | 3,646 | 903 | [1] | |
Depreciation expense | 779 | 338 | $ 383 | |
Land, buildings and leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment—at cost | 2,539 | 873 | ||
Computers and related equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment—at cost | 4,431 | 2,695 | ||
Furniture and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment—at cost | 349 | 141 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment—at cost | $ 79 | $ 10 | ||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 11,548 | $ 4,087 | |
Accumulated Amortization | 3,457 | 2,293 | [1] |
Net Carrying Value | 8,091 | 1,794 | [1] |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 3,560 | 2,347 | |
Accumulated Amortization | 1,946 | 1,554 | |
Net Carrying Value | 1,614 | 793 | |
Outsourcing contract costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 1,593 | 793 | |
Accumulated Amortization | 757 | 475 | |
Net Carrying Value | 836 | 318 | |
Customer related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 6,305 | 851 | |
Accumulated Amortization | 735 | 248 | |
Net Carrying Value | 5,570 | 603 | |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 90 | 96 | |
Accumulated Amortization | 19 | 16 | |
Net Carrying Value | $ 71 | $ 80 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,226 | $ 320 | $ 286 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Fiscal 2,019 | 1,211 | ||
Fiscal 2,020 | 1,118 | ||
Fiscal 2,021 | 1,002 | ||
Fiscal 2,022 | 858 | ||
Fiscal 2,023 | 794 | ||
GIS | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gain (loss) on disposition of intangible assets | 31 | ||
Outsourcing contract costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 41 | $ 11 | $ 11 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||||
Goodwill, gross | $ 4,617 | $ 4,039 | ||
Accumulated impairment losses | (2,762) | (2,762) | ||
Goodwill, net, beginning of period | 1,855 | [1] | 1,277 | |
Additions | 7,508 | 689 | ||
Foreign currency translation | 289 | (111) | ||
Goodwill, gross | 12,414 | 4,617 | ||
Accumulated impairment losses | (2,762) | (2,762) | ||
Goodwill, net, end of period | 9,652 | 1,855 | [1] | |
GBS | ||||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||||
Goodwill, gross | 2,171 | 1,615 | ||
Accumulated impairment losses | (701) | (701) | ||
Goodwill, net, beginning of period | 1,470 | 914 | ||
Additions | 2,889 | 655 | ||
Foreign currency translation | 184 | (99) | ||
Goodwill, gross | 5,244 | 2,171 | ||
Accumulated impairment losses | (701) | (701) | ||
Goodwill, net, end of period | 4,543 | 1,470 | ||
GIS | ||||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||||
Goodwill, gross | 2,446 | 2,424 | ||
Accumulated impairment losses | (2,061) | (2,061) | ||
Goodwill, net, beginning of period | 385 | 363 | ||
Additions | 2,609 | 34 | ||
Foreign currency translation | 105 | (12) | ||
Goodwill, gross | 5,160 | 2,446 | ||
Accumulated impairment losses | (2,061) | (2,061) | ||
Goodwill, net, end of period | 3,099 | 385 | ||
USPS | ||||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||||
Goodwill, gross | 0 | |||
Accumulated impairment losses | 0 | |||
Goodwill, net, beginning of period | 0 | |||
Additions | 2,010 | |||
Foreign currency translation | 0 | |||
Goodwill, gross | 2,010 | 0 | ||
Accumulated impairment losses | 0 | 0 | ||
Goodwill, net, end of period | $ 2,010 | $ 0 | ||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Domestic entities | $ 821 | $ (157) | $ (222) | |||
Entities outside the United States | 850 | (17) | 232 | |||
Income (loss) from continuing operations, before taxes | $ 1,671 | $ (174) | $ 10 | |||
Income Tax Contingency [Line Items] | ||||||
Statutory rate | 31.50% | 35.00% | 35.00% | |||
Provisional deferred income tax benefit | $ 320 | $ 338 | ||||
Deferred tax liability, provisional income tax (expense) benefit | 320 | 338 | ||||
Period adjustment, income tax expense (benefit) | $ 18 | |||||
Provisional income tax expense for transition tax | 386 | 361 | ||||
Transition tax, period adjustment, income tax expense (benefit) | 25 | |||||
Transition tax, provisional liability | 361 | 361 | ||||
Undistributed accumulated earnings of foreign subsidiary, withholding taxes | 12 | 8 | 12 | |||
Undistributed accumulated earnings of foreign subsidiary, state taxes | 7 | 27 | 7 | |||
Undistributed accumulated earnings of foreign subsidiary, period adjustment, income tax expense (benefit) | 16 | |||||
Executive compensation, provisional income tax expense (benefit) | 2 | |||||
Capital expensing, provisional income tax expense (benefit) | (87) | |||||
Capital expensing, income taxes payable, provisional income tax expense (benefit) | (87) | |||||
Non-current transition tax included in current provision (benefit) | 332 | 332 | ||||
Interest and penalties for uncertain tax positions included in current provision (benefit) | 2 | $ (9) | $ (4) | |||
Deferred tax liability | 1,267 | 1,267 | 430 | |||
Distributed earnings | 153 | |||||
Dividend distribution tax expense (benefit) | 31 | |||||
Valuation allowance | 1,442 | 1,442 | 1,094 | |||
Net increase in deferred tax asset valuation allowance | $ 348 | |||||
Holiday tax incentives in India | ||||||
Income Tax Contingency [Line Items] | ||||||
Additional year of tax holiday extension | 2,026 | |||||
Income tax holiday | $ 5 | $ 1 | $ 2 | |||
Income tax holiday (in dollars per share) | $ 0.02 | $ 0.01 | $ 0.02 | |||
Internal Revenue Service | ||||||
Income Tax Contingency [Line Items] | ||||||
Liability for uncertain tax positions that if recognized would affect the effective tax rate | 219 | $ 219 | $ 149 | $ 122 | ||
Hewlett Packard Enterprise Services | ||||||
Income Tax Contingency [Line Items] | ||||||
Accrued income taxes | $ 27 | |||||
Net uncertain tax positions | 110 | |||||
Other tax payables | 75 | |||||
Other tax receivables | 212 | |||||
Net increase in deferred tax asset valuation allowance | 289 | |||||
Hewlett Packard Enterprise Services | Domestic Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Deferred tax liability | 554 | 554 | 542 | |||
India | ||||||
Income Tax Contingency [Line Items] | ||||||
Undistributed accumulated earnings of foreign subsidiary, dividend distribution tax | 80 | $ 80 | 80 | |||
Deferred tax liability | 80 | 80 | $ 50 | |||
Provisional unrecognized deferred tax liability | $ 30 | 30 | ||||
Currency Translation Adjustment | Luxembourg | ||||||
Income Tax Contingency [Line Items] | ||||||
Net increase in deferred tax asset valuation allowance | $ 152 |
Income Taxes - Tax Expense (Ben
Income Taxes - Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 453 | $ (32) | $ (79) |
State | 31 | 14 | (22) |
Foreign | 247 | 36 | 59 |
Total Current | 731 | 18 | (42) |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | (850) | (7) | (39) |
State | (53) | (1) | 48 |
Foreign | 61 | (84) | (29) |
Total Deferred | (842) | (92) | (20) |
Total income tax (benefit) expense | $ (111) | $ (74) | $ (62) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 31.50% | 35.00% | 35.00% |
State income tax, net of federal tax | 2.50% | 4.00% | (145.70%) |
United States Tax Reform | (31.70%) | 0.00% | 0.00% |
Change in Indefinite Reinvestment Assertion | 2.60% | 0.00% | 0.00% |
Loss of attributes due to merger | 4.00% | 0.00% | 0.00% |
Change in uncertain tax positions | (0.10%) | 3.40% | (685.00%) |
Foreign tax rate differential | (4.50%) | 41.10% | (377.40%) |
Capitalized transaction costs | 1.10% | (12.10%) | 22.30% |
Change in valuation allowances | (6.00%) | (34.30%) | 743.60% |
Excess tax benefits for stock compensation | (2.30%) | 11.30% | (230.00%) |
Prepaid tax asset amortization | 0.30% | (7.10%) | 78.80% |
Income Tax and Foreign Tax Credits | (6.00%) | 2.00% | (58.00%) |
Other items, net | 2.00% | (0.80%) | (3.60%) |
Effective tax rate | (6.60%) | 42.50% | (620.00%) |
Income Taxes - Effective Tax 86
Income Taxes - Effective Tax Rate Reconciliation, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, foreign subsidiary basis, amount | $ 554 | ||
Effective income tax rate reconciliation, foreign subsidiary basis, percentage | 33.20% | ||
Effective income tax rate reconciliation, Tax Cuts and Jobs Act of 2017, transition tax on accumulated foreign earnings, amount | $ 361 | ||
Effective income tax rate reconciliation, Tax Cuts and Jobs Act of 2017, transition tax on accumulated foreign earnings, percent | 21.60% | ||
Effective income tax rate reconciliation, remeasurement of deferred tax assets and liabilities, amount | $ 338 | ||
Effective income tax rate reconciliation, remeasurement of deferred tax assets and liabilities, percent | 20.30% | ||
Change in valuation allowances | (6.00%) | (34.30%) | 743.60% |
Effective income tax rate reconciliation, nondeductible transaction costs, amount | $ 21 | ||
Effective income tax rate reconciliation, nondeductible transaction costs, percent | 1.10% | (12.10%) | 22.30% |
Effective income tax rate reconciliation, change in accounting policy, amount | $ 20 | $ 23 | |
Excess tax benefits for stock compensation | 2.30% | (11.30%) | 230.00% |
Effective tax rate reconciliation, foreign income tax rate differential, percent | (4.50%) | 41.10% | (377.40%) |
Effective tax rate reconciliation, tax audit adjustments, amount | $ (24) | ||
Effective tax rate reconciliation, tax audit adjustments, amount | (240.00%) | ||
NPS Segment | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, divestiture of business | $ 27 | ||
Effective income tax rate reconciliation, divestiture of business, percent | 270.00% | ||
U.S., Germany and Luxembourg | Foreign | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 135 | ||
Change in valuation allowances | 78.00% | ||
Denmark, Japan and U.K. | Foreign | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ (75) | ||
Change in valuation allowances | (43.00%) | ||
Luxembourg | Foreign | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 47 | ||
Change in valuation allowances | 470.00% | ||
Effective tax rate reconciliation, foreign income tax rate differential, amount | $ (47) | ||
Effective tax rate reconciliation, foreign income tax rate differential, percent | (470.00%) | ||
U.K. | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective tax rate reconciliation, change in uncertain tax positions, amount | $ (58) | ||
Tax audit settlements | (580.00%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred tax assets | ||
Employee benefits | $ 159 | $ 172 |
Tax loss/credit carryforwards | 1,672 | 1,307 |
Accrued interest | 19 | 16 |
Contract accounting | 149 | 89 |
Other assets | 283 | 83 |
Total deferred tax assets | 2,282 | 1,667 |
Valuation allowance | (1,442) | (1,094) |
Net deferred tax assets | 840 | 573 |
Deferred tax liabilities | ||
Depreciation and amortization | (1,111) | (282) |
Investment basis differences | (62) | (103) |
Other liabilities | (94) | (45) |
Total deferred tax liabilities | 1,267 | 430 |
Total net deferred tax assets (liabilities) | $ (427) | |
Total net deferred tax assets (liabilities) | $ 143 |
Income Taxes - Income Tax Relat
Income Taxes - Income Tax Related Assets And Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Current assets: | |||
Income tax receivables | $ 227 | $ 146 | |
Non-current: | |||
Income taxes receivable and prepaid taxes | 92 | 50 | |
Deferred tax assets | 373 | 381 | [1] |
Deferred tax assets, noncurrent | 465 | 431 | |
Deferred tax assets, total | 692 | 577 | |
Current liabilities: | |||
Liability for uncertain tax positions | (33) | (17) | |
Income taxes payable | (112) | (21) | |
Deferred tax liabilities, current | (145) | (38) | |
Non-current: | |||
Deferred taxes | (800) | (238) | |
Income taxes payable | (251) | 0 | |
Liability for uncertain tax positions | (278) | (185) | |
Deferred tax liabilities, noncurrent | (1,329) | (423) | |
Deferred tax liabilities, total | (1,474) | (461) | |
Valuation allowance | 1,442 | $ 1,094 | |
Net increase in deferred tax asset valuation allowance | $ 348 | ||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 41 | $ 65 |
Net operating loss carryforward with no expiration | 0 | 0 |
Net operating loss carryforward with expiration | 41 | 65 |
Tax credit carryforwards | 0 | 7 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 0 | 7 |
Capital loss carryforwards | 0 | 0 |
Capital loss carryforwards with no expiration | 0 | 0 |
Capital loss carryforwards with expiration | 0 | 0 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 876 | 911 |
Net operating loss carryforward with no expiration | 0 | 0 |
Net operating loss carryforward with expiration | 876 | 911 |
Tax credit carryforwards | 32 | 45 |
Tax credit carryforwards with no expiration | 7 | 10 |
Tax credit carryforwards with expiration | 25 | 35 |
Capital loss carryforwards | 0 | 289 |
Capital loss carryforwards with no expiration | 0 | 0 |
Capital loss carryforwards with expiration | 0 | 289 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 6,522 | 4,608 |
Net operating loss carryforward with no expiration | 6,287 | 4,537 |
Net operating loss carryforward with expiration | 235 | 71 |
Tax credit carryforwards | 21 | 10 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 21 | 10 |
Capital loss carryforwards | 240 | 235 |
Capital loss carryforwards with no expiration | 193 | 235 |
Capital loss carryforwards with expiration | $ 47 | $ 0 |
Income Taxes - Income Tax Conti
Income Taxes - Income Tax Contingency (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Liability For Uncertain Tax Positions [Abstract] | ||||||
Tax | $ 192 | $ 180 | $ 304 | $ 270 | $ 192 | $ 180 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance at beginning of fiscal year | 192 | 180 | 304 | |||
Gross increases related to prior year tax positions | 10 | 14 | 21 | |||
Gross decreases related to prior year tax positions | (12) | (12) | (101) | |||
Gross increases related to current year tax positions | 7 | 10 | 7 | |||
Settlements and statute of limitation expirations | (19) | (7) | (48) | |||
Acquisitions | 90 | 6 | 3 | |||
Foreign exchange and others | 2 | 1 | (6) | |||
Balance at end of fiscal year | 270 | 192 | 180 | |||
Internal Revenue Service | ||||||
Liability For Uncertain Tax Positions [Abstract] | ||||||
Tax | 192 | 192 | 270 | 192 | ||
Interest | 49 | 25 | 33 | |||
Penalties | 25 | 11 | 11 | |||
Net of tax attributes | (33) | (26) | ||||
Total | 311 | 202 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance at beginning of fiscal year | 192 | |||||
Balance at end of fiscal year | 270 | 192 | ||||
Interest Accrued Related to Uncertain Tax Positions and Penalties [Abstract] | ||||||
Interest | 2 | (8) | (6) | |||
Interest, net of tax | 2 | (9) | (4) | |||
Accrued penalties | $ 0.2 | $ 0 | $ 2 | |||
Liability for interest | 49 | 25 | 33 | |||
Liability for interest, net of tax | 43 | 20 | 29 | |||
Liability for penalties | $ 25 | $ 11 | $ 11 |
Income Taxes - Income Tax Exami
Income Taxes - Income Tax Examination (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Settlement with Taxing Authority | Minimum | |
Income Tax Examination [Line Items] | |
Reasonably possible reduction in liability for uncertain tax positions | $ 36 |
Settlement with Taxing Authority | Maximum | |
Income Tax Examination [Line Items] | |
Reasonably possible reduction in liability for uncertain tax positions | $ 70 |
United States – Federal | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2005 and forward |
United States – Various States | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2005 and forward |
Australia | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2012 and forward |
Canada | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2010 and forward |
France | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2013 and forward |
Germany | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2010 and forward |
India | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 1998 and forward |
United Kingdom | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2013 and forward |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) | 12 Months Ended | ||||||||
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Apr. 03, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017EUR (€) | Apr. 01, 2016EUR (€) | ||
Short-term debt and current maturities of long-term debt | |||||||||
Current maturities of long-term debt | $ 439,000,000 | $ 55,000,000 | |||||||
Current maturities of capitalized lease liabilities | 771,000,000 | 37,000,000 | |||||||
Short-term debt and current maturities of long term debt | 2,073,000,000 | 738,000,000 | [1] | ||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | 7,516,000,000 | 2,317,000,000 | |||||||
Less: current maturities of long-term debt and capitalized lease liabilities | 1,210,000,000 | 92,000,000 | |||||||
Long-term debt, net of current maturities | 6,306,000,000 | 2,225,000,000 | [1] | ||||||
Debt Information [Abstract] | |||||||||
Face amount | 1,500,000,000 | ||||||||
Credit facility amount maturing in 2021 | 754,000,000 | ||||||||
Credit facility amount maturing in 2023 | 515,000,000 | ||||||||
Revolving credit facility | |||||||||
Long-term debt, net of current maturities | |||||||||
Line of credit | 0 | ||||||||
Credit facility | Revolving credit facility | |||||||||
Long-term debt, net of current maturities | |||||||||
Line of credit | 0 | 678,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Amount of multi-year committed revolving credit facility | 3,810,000,000 | ||||||||
Credit facility amount maturing in 2021 | 70,000,000 | ||||||||
Credit facility amount maturing in 2023 | 3,740,000,000 | ||||||||
Capitalized lease liabilities | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | 1,525,000,000 | 104,000,000 | |||||||
Borrowings for assets acquired under long-term financing | |||||||||
Long-term debt, net of current maturities | |||||||||
Line of credit | 405,000,000 | 77,000,000 | |||||||
Mandatorily redeemable preferred stock outstanding, due March 2023 | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 61,000,000 | 61,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 6.00% | 6.00% | 6.00% | ||||||
Other borrowings | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 113,000,000 | 4,000,000 | |||||||
GBP term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 260,000,000 | 233,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.65% | ||||||||
EUR term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 493,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.75% | 1.75% | 1.75% | ||||||
USD term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 0 | 571,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
AUD term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 210,000,000 | 76,000,000 | |||||||
EUR term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 187,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 0.90% | 0.90% | 0.90% | ||||||
Face amount | $ 315,000,000 | ||||||||
USD term loan | Loans payable | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 899,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Face amount | 1,300,000,000 | ||||||||
$500 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 502,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.875% | 2.875% | 2.875% | ||||||
Face amount | $ 500,000,000 | ||||||||
$650 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | 646,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Face amount | $ 650,000,000 | ||||||||
$274 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 278,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 4.45% | 4.45% | 4.45% | ||||||
Face amount | $ 274,000,000 | ||||||||
$171 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 173,000,000 | 453,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 4.45% | 4.45% | 4.45% | ||||||
Face amount | $ 171,000,000 | ||||||||
$500 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 507,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 4.25% | 4.25% | 4.25% | ||||||
Face amount | $ 500,000,000 | ||||||||
£250 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 346,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.75% | 2.75% | 2.75% | ||||||
Face amount | € 250,000,000 | £ 250,000,000 | |||||||
$500 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 509,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 4.75% | 4.75% | 4.75% | ||||||
Face amount | $ 500,000,000 | ||||||||
$234 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 277,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 7.45% | 7.45% | 7.45% | ||||||
Face amount | $ 234,000,000 | ||||||||
$66 million Senior notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | $ 79,000,000 | 0 | |||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 7.45% | 7.45% | 7.45% | ||||||
Face amount | $ 66,000,000 | ||||||||
Lease credit facility | Secured debt | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | 46,000,000 | 60,000,000 | |||||||
CSC Notes | Senior notes | |||||||||
Long-term debt, net of current maturities | |||||||||
Long-term debt | 171,000,000 | ||||||||
Debt Information [Abstract] | |||||||||
Principal amount before conversion | 274,000,000 | ||||||||
$300 million Senior notes | Senior notes | |||||||||
Debt Information [Abstract] | |||||||||
Principal amount before conversion | $ 234,000,000 | ||||||||
Minimum | Credit facility | Revolving credit facility | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.40% | 1.40% | 1.40% | ||||||
Minimum | Capitalized lease liabilities | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 0.30% | 0.30% | 0.30% | ||||||
Minimum | Borrowings for assets acquired under long-term financing | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.30% | 2.30% | 2.30% | ||||||
Minimum | Other borrowings | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 0.50% | 0.50% | 0.50% | ||||||
Minimum | GBP term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.00% | 1.00% | 1.00% | ||||||
Minimum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.20% | 1.20% | 1.20% | ||||||
Minimum | AUD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.90% | 2.90% | 2.90% | ||||||
Minimum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.20% | 2.20% | 2.20% | ||||||
Minimum | $650 million Senior notes | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.30% | 2.30% | 2.30% | ||||||
Minimum | Lease credit facility | Secured debt | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.90% | 1.90% | 1.90% | ||||||
Maximum | Credit facility | Revolving credit facility | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.60% | 1.60% | 1.60% | ||||||
Maximum | Capitalized lease liabilities | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 6.70% | 6.70% | 6.70% | ||||||
Maximum | Borrowings for assets acquired under long-term financing | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 4.00% | 4.00% | 4.00% | ||||||
Maximum | Other borrowings | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 14.00% | 14.00% | 14.00% | ||||||
Maximum | GBP term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 1.40% | 1.40% | 1.40% | ||||||
Maximum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.30% | 2.30% | 2.30% | ||||||
Maximum | AUD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 3.10% | 3.10% | 3.10% | ||||||
Maximum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 3.10% | 3.10% | 3.10% | ||||||
Maximum | $650 million Senior notes | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 3.00% | 3.00% | 3.00% | ||||||
Maximum | Lease credit facility | Secured debt | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 2.90% | 2.90% | 2.90% | ||||||
Euro-denominated commercial paper | |||||||||
Short-term debt and current maturities of long-term debt | |||||||||
Short term debt | $ 863,000,000 | $ 646,000,000 | |||||||
Debt Information [Abstract] | |||||||||
Amount of multi-year committed revolving credit facility | € | € 1,000,000,000 | € 500,000,000 | |||||||
Euro-denominated commercial paper | Minimum | |||||||||
Debt Information [Abstract] | |||||||||
Weighted average interest rate | (0.10%) | (0.10%) | (0.10%) | ||||||
Euro-denominated commercial paper | Maximum | |||||||||
Debt Information [Abstract] | |||||||||
Weighted average interest rate | 0.02% | 0.02% | 0.02% | ||||||
Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Capital Lease Obligations | Minimum | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 0.30% | 0.30% | 0.30% | ||||||
Capital Lease Obligations | Maximum | |||||||||
Debt Information [Abstract] | |||||||||
Effective interest rate | 6.70% | 6.70% | 6.70% | ||||||
LIBOR | Minimum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
LIBOR | Maximum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Federal Funds Rate | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
One-month LIBOR | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.00% | ||||||||
Bank Bill Swap Bid Rate | Minimum | AUD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.95% | ||||||||
Bank Bill Swap Bid Rate | Maximum | AUD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.45% | ||||||||
Eurocurrency Rate | Minimum | EUR term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
Eurocurrency Rate | Minimum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.00% | ||||||||
Eurocurrency Rate | Maximum | EUR term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.35% | ||||||||
Eurocurrency Rate | Maximum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Base rate | Minimum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.00% | ||||||||
Base rate | Maximum | USD term loan | Loans payable | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
Three-month LIBOR | $650 million Senior notes | Senior notes | |||||||||
Debt Information [Abstract] | |||||||||
Basis spread on variable rate | 0.95% | ||||||||
Hewlett Packard Enterprise Services | $300 million Senior notes | Senior notes | |||||||||
Debt Information [Abstract] | |||||||||
Face amount | $ 300,000,000 | ||||||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 24, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018GBP (£) | Apr. 03, 2017USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,500,000,000 | |||||
Long-term debt | 7,516,000,000 | $ 2,317,000,000 | ||||
Capital leased assets, gross | 3,700,000,000 | 700,000,000 | ||||
Capital leased assets, accumulated depreciation | 2,400,000,000 | 600,000,000 | ||||
£250 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € 250,000,000 | £ 250,000,000 | ||||
Long-term debt | $ 346,000,000 | 0 | ||||
Effective interest rate | 2.75% | 2.75% | 2.75% | |||
$650 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 650,000,000 | |||||
Long-term debt | 646,000,000 | 0 | ||||
Term Loan Payable, USD, Due 2020 | Loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 375,000,000 | |||||
USD term loan | Loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 1,300,000,000 | |||||
Long-term debt | 899,000,000 | 0 | ||||
EUR term loan | Loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 315,000,000 | |||||
Long-term debt | $ 187,000,000 | 0 | ||||
Effective interest rate | 0.90% | 0.90% | 0.90% | |||
$500 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 500,000,000 | |||||
Long-term debt | $ 502,000,000 | 0 | ||||
Interest rate | 2.875% | 2.875% | 2.875% | |||
Effective interest rate | 2.875% | 2.875% | 2.875% | |||
$500 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 500,000,000 | |||||
Long-term debt | $ 507,000,000 | 0 | ||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
Effective interest rate | 4.25% | 4.25% | 4.25% | |||
$500 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 500,000,000 | |||||
Long-term debt | $ 509,000,000 | $ 0 | ||||
Interest rate | 4.75% | 4.75% | 4.75% | |||
Effective interest rate | 4.75% | 4.75% | 4.75% | |||
Hewlett Packard Enterprise Services | $300 million Senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 300,000,000 | |||||
Interest rate | 7.45% | |||||
Subsequent Event | Senior Note, EUR, Due 2019 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 400,000,000 | |||||
Subsequent Event | Senior Note, EUR, Due 2018 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | € | € 400,000,000 | |||||
Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 0 |
Debt - Future Minimum Capital L
Debt - Future Minimum Capital Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Capital Lease Obligations [Abstract] | ||
2,019 | $ 829 | |
2,020 | 463 | |
2,021 | 214 | |
2,022 | 104 | |
2,023 | 29 | |
Thereafter | 0 | |
Total minimum lease payments | 1,639 | |
Less: Amount representing interest and executory costs | (114) | |
Present value of net minimum lease payments | 1,525 | |
Less: Current maturities of capital lease obligations | (771) | $ (37) |
Long-term capitalized lease liabilities | $ 754 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term Debt (Details) $ in Millions | Mar. 31, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,019 | $ 439 |
2,020 | 1,229 |
2,021 | 754 |
2,022 | 1,302 |
2,023 | 515 |
Thereafter | 1,752 |
Total | $ 5,991 |
Pension and Other Benefit Pla96
Pension and Other Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Vesting period | 1 year | ||
Defined contribution plan contribution | $ 245 | $ 124 | $ 132 |
Shares of company common stock held in defined contribution plan assets | 4,184,335 | ||
Deferred compensation plan, liability | $ 65 | 67 | |
Deferred compensation plan, expense | 4 | 5 | 3 |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Gain due to remeasurement | 17 | ||
Gain due to curtailment | 40 | ||
Actuarial loss | 23 | ||
Contractual termination benefits | 13 | $ 1 | $ 6 |
Estimated future amortization of prior service credit | $ 16 | ||
Non-employee directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation plan, maximum deferral percentage | 100.00% |
Pension and Other Benefit Pla97
Pension and Other Benefit Plans - Pension Plan, Reconciliation of Changes in PBO and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Assets assumed as a result of the HPES merger | $ 7,411 | $ 0 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | 3,297 | 2,879 | |
Benefit obligation assumed as a result of the HPES merger | 7,351 | 0 | |
Service cost | 121 | 23 | $ 25 |
Interest cost | 249 | 82 | 92 |
Plan participants’ contributions | 16 | 3 | |
Amendments | (44) | 0 | |
Business/contract acquisitions/divestitures | 69 | 313 | |
Contractual termination benefits | 13 | 1 | |
Settlement/curtailment | (65) | (13) | |
Actuarial (gain) loss | (332) | 413 | |
Benefits paid | (447) | (120) | |
Foreign currency exchange rate changes | 1,170 | (283) | |
Other | (14) | (1) | |
Projected benefit obligation at end of year | $ 11,384 | $ 3,297 | 2,879 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.50% | 2.50% | |
Rates of increase in compensation levels | 2.00% | 2.20% | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 2,998 | $ 2,597 | |
Actual return on plan assets | 371 | 483 | |
Employer contribution | 83 | 123 | |
Plan participants’ contributions | 16 | 3 | |
Benefits paid | (447) | (120) | |
Business/contract acquisitions/divestitures | (2) | 199 | |
Contractual termination benefits | 4 | 6 | |
Plan settlement | (22) | (13) | |
Foreign currency exchange rate changes | 1,176 | (279) | |
Other | (14) | (1) | |
Fair value of plan assets at end of year | 11,574 | 2,998 | $ 2,597 |
Funded status at end of year | $ 190 | $ (299) |
Pension and Other Benefit Pla98
Pension and Other Benefit Plans - Special 2017 Transaction Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Proceeds from structured sale of facility | $ 0 | $ 85,000,000 | $ 0 |
Lease obligation | 754,000,000 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 83,000,000 | 123,000,000 | |
Corporate Campus In Aldershot, United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Proceeds from structured sale of facility | $ 85,000,000 | ||
Ownership interest in Jersey Unit Trust | 1.00% | ||
Term of master lease arrangement | 15 years | ||
Annual rental payment | $ 4,000,000 | ||
Gain (loss) on sale of property | $ 0 | ||
Corporate Campus In Aldershot, United Kingdom | Financial Institution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ownership interest in Jersey Unit Trust | 99.00% | ||
Corporate Campus In Aldershot, United Kingdom | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 85,000,000 | ||
Other long-term liabilities | Corporate Campus In Aldershot, United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Lease obligation | $ 85,000,000 |
Pension and Other Benefit Pla99
Pension and Other Benefit Plans - Pension Plan, Amounts Recognized in Balance Sheet (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Other assets | $ 1,118 | $ 73 |
Accrued expenses and other current liabilities | (28) | (7) |
Non-current pension obligations | (879) | (342) |
Other long-term liabilities - OPEB | (21) | (23) |
Net amount recorded | 190 | (299) |
Accumulated benefit obligation | $ 11,241 | $ 3,262 |
Pension and Other Benefit Pl100
Pension and Other Benefit Plans - Pension Plan, Assumptions and Other Selected Information (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | $ 2,488 | $ 996 |
Accumulated benefit obligation | 2,363 | 963 |
Fair value of plan assets | 1,552 | 624 |
Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | 2,250 | 938 |
Accumulated benefit obligation | 2,162 | 913 |
Fair value of plan assets | $ 1,338 | $ 574 |
Pension and Other Benefit Pl101
Pension and Other Benefit Plans - Pension Plan, Net Periodic Costs and Other Changes (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 121 | $ 23 | $ 25 |
Interest cost | 249 | 82 | 92 |
Expected return on assets | (534) | (161) | (179) |
Amortization of transition obligation | 1 | 1 | 1 |
Amortization of prior service costs | (18) | (17) | (19) |
Contractual termination benefits | 13 | 1 | 6 |
Settlement/curtailment gain | (42) | 0 | (2) |
Recognition of actuarial (gain) loss | (178) | 87 | 127 |
Net periodic pension (income) expense | $ (388) | $ 16 | $ 51 |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount or settlement rates | 2.50% | 3.10% | 3.00% |
Expected long-term rates of return on assets | 4.90% | 6.30% | 6.30% |
Rates of increase in compensation levels | 2.70% | 2.60% | 2.80% |
Employer contributions: | |||
2,019 | $ 86 | ||
Benefit Payments: | |||
2,019 | 299 | ||
2,020 | 298 | ||
2,021 | 314 | ||
2,022 | 380 | ||
2,023 | 353 | ||
2024 and thereafter | $ 2,087 |
Pension and Other Benefit Pl102
Pension and Other Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ (298) | $ (269) |
Pension and Other Benefit Pl103
Pension and Other Benefit Plans - Fair Value by Investment Category and Level Within Fair Value Hierarchy (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 11,574 | $ 2,998 | $ 2,597 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 788 | 104 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,899 | 2,546 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 887 | 348 | $ 315 |
Global/International Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,443 | 711 | |
Global/International Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 465 | 1 | |
Global/International Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,978 | 710 | |
Global/International Equity commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Global equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 341 | 252 | |
Global equity mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 1 | |
Global equity mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 333 | 251 | |
Global equity mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S./North American Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 40 | |
U.S./North American Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
U.S./North American Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 39 | |
U.S./North American Equity commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Government funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
U.S. Government funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Government funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
U.S. Government funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Government funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 3 | |
Non-U.S. Government funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 0 | |
Non-U.S. Government funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 3 | |
Non-U.S. Government funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,095 | 992 | |
Fixed income commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
Fixed income commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,092 | 991 | |
Fixed income commingled funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Fixed income mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Fixed income mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Alternatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,106 | 758 | |
Other Alternatives | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 3 | |
Other Alternatives | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,228 | 412 | |
Other Alternatives | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 874 | 343 | |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Hedge Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Hedge Funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Other Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other Assets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 170 | 136 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 160 | 131 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 5 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 305 | 102 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 300 | 94 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 8 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Benefit Pl104
Pension and Other Benefit Plans - Reconciliation of Assets Valued Using Significant Unobservable Inputs (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 2,998 | $ 2,597 |
Changes due to exchange rates | (1,170) | 283 |
Fair value of plan assets at end of year | 11,574 | 2,998 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 348 | 315 |
Actual return on plan assets held at the reporting date | 34 | 60 |
Purchases, sales, and settlements | 443 | 9 |
Changes due to exchange rates | 62 | (36) |
Fair value of plan assets at end of year | $ 887 | $ 348 |
Pension and Other Benefit Pl105
Pension and Other Benefit Plans - Asset Allocations (Details) - Pension Plans, Defined Benefit | Mar. 31, 2018 | Mar. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 25.00% | 33.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 53.00% | 33.00% |
Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 18.00% | 25.00% |
Cash and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 4.00% | 9.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 12 Months Ended | |||||
Mar. 31, 2018vote$ / sharesshares | Mar. 31, 2017$ / sharesshares | Apr. 01, 2016shares | Apr. 03, 2017shares | Apr. 01, 2017$ / shares | ||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 | [1] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | [1] | $ 0.01 | ||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | [1] | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | [1] | |||
Number of votes per common share | vote | 1 | |||||
Stock repurchase program, number of shares authorized | 2,000,000,000 | |||||
Treasury Stock Transactions [Abstract] | ||||||
Common stock in treasury, at cost (in shares) | 1,016,947 | 0 | [1] | |||
Common Stock | Shares Repurchased From Employees Related To Stock Option Plans | ||||||
Treasury Stock Transactions [Abstract] | ||||||
Accepted common stock in lieu of cash in connection with exercise of stock options (in shares) | 332,558 | 72,231 | 48,416 | |||
Accepted common stock in lieu of cash in connection with the tax withholdings associated with the vesting and release of common stock (in shares) | 684,389 | 195,201 | 716,999 | |||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchased (in shares) | 3,750,132 | |
Average Price Per Share (in dollars per share) | $ 46.18 | |
Amount | $ 173 | |
Common Stock | Open Market Purchases | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchased (in shares) | 1,537,782 | 3,587,224 |
Average Price Per Share (in dollars per share) | $ 89.41 | $ 48.28 |
Amount | $ 137 | $ 173 |
Common Stock | Accelerated Share Repurchase Agreement | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchased (in shares) | 162,908 | |
Average Price Per Share (in dollars per share) | $ 0 | |
Amount | $ 0 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 |
Dividends Payable [Line Items] | ||||
Cash Dividends Declared Per Common Share (in dollars per share) | $ 0.72 | $ 0.56 | $ 2.99 | |
Cash Dividends Declared, Total | $ 209 | $ 80 | $ 421 | |
Cash Dividends Declared, Unpaid at Fiscal Year End | $ 51 | $ 20 | $ 19 | |
Computer Sciences Corporation | ||||
Dividends Payable [Line Items] | ||||
Common stock, dividends (in dollars per share) | $ 2.25 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | $ 2,166 | [1] | $ 2,032 | $ 2,965 | |
Balance | 13,837 | 2,166 | [1] | 2,032 | |
Foreign currency translation adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | (458) | (399) | (316) | ||
Current-period other comprehensive (loss) income | 197 | (59) | (83) | ||
Amounts reclassified from accumulated other comprehensive loss, net of taxes | 0 | 0 | 0 | ||
Transfer to CSRA | 0 | ||||
Balance | (261) | (458) | (399) | ||
Cash Flow Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | 20 | (1) | (2) | ||
Current-period other comprehensive (loss) income | (11) | 21 | 1 | ||
Amounts reclassified from accumulated other comprehensive loss, net of taxes | 0 | 0 | 0 | ||
Transfer to CSRA | 0 | ||||
Balance | 9 | 20 | (1) | ||
Available-for-sale Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | 0 | 0 | 0 | ||
Current-period other comprehensive (loss) income | 9 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss, net of taxes | 0 | 0 | 0 | ||
Transfer to CSRA | 0 | ||||
Balance | 9 | 0 | 0 | ||
Pension and other post-retirement benefit plans: | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | 276 | 289 | 339 | ||
Current-period other comprehensive (loss) income | 0 | (2) | 1 | ||
Amounts reclassified from accumulated other comprehensive loss, net of taxes | 25 | (11) | (20) | ||
Transfer to CSRA | (31) | ||||
Balance | 301 | 276 | 289 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Balance | (162) | (111) | 21 | ||
Current-period other comprehensive (loss) income | 195 | (40) | (81) | ||
Amounts reclassified from accumulated other comprehensive loss, net of taxes | 25 | (11) | (20) | ||
Transfer to CSRA | (31) | ||||
Balance | $ 58 | $ (162) | $ (111) | ||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) | Apr. 01, 2017USD ($)$ / shares | Jan. 01, 2016USD ($)Award | Mar. 31, 2018USD ($)plananniversary$ / sharesshares | Mar. 31, 2017USD ($)$ / shares | Apr. 01, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incremental stock compensation expense | $ 93,000,000 | $ 75,000,000 | $ 46,000,000 | |||
Plan term | 10 years | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | [1] | ||
Number of equity awards converted from historic award | Award | 2 | |||||
Incremental stock compensation expense as a result of modification of equity awards | $ 0 | |||||
Total grant date fair value of stock options vested during the period | $ 22,000,000 | $ 8,000,000 | 13,000,000 | |||
Cash received from stock awards exercised during the period | 98,000,000 | $ 54,000,000 | $ 82,000,000 | |||
Total unrecognized compensation expense related to unvested awards, net of expected forfeitures | $ 1,000,000 | |||||
Weighted average period over which cost is expected to be recognized (in years) | 2 years 2 months 5 days | |||||
Number of common shares available for grant at period end (in shares) | shares | 22,674,583 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Term of options | 10 years | |||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 13 | $ 9 | ||||
Stock Options | 33.33% vested in year 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 33.33% | |||||
Stock Options | 33.33% vested in year 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 33.33% | |||||
Stock Options | 33.33% vested in year 3 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 33.33% | |||||
Performance-based Restricted Stock Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Performance period | 3 years | |||||
Performance-based Restricted Stock Units (PSUs) | Contingent Accelerated Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 25.00% | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation expense related to unvested awards, net of expected forfeitures | $ 136,000,000 | |||||
Weighted average period over which cost is expected to be recognized (in years) | 2 years | |||||
Number of shares received per RSU (in shares) | shares | 1 | |||||
Restricted Stock Units (RSUs) | Service-based RSU's | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of anniversaries following the executive's termination that the shares are redeemable | anniversary | 10 | |||||
DXC Share Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common shares available for grant at period end (in shares) | shares | 248,526 | |||||
DXC Share Purchase Plan | Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased under plan (in shares) | shares | 1,474 | |||||
Nonemployee director incentives | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of incentive plans within the employee or nonemployee plan | plan | 1 | |||||
Number of common shares available for grant at period end (in shares) | shares | 123,634 | |||||
Nonemployee director incentives | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Issue price of award (in dollars per share) | $ / shares | $ 0 | |||||
Nonemployee director incentives | Restricted Stock Units (RSUs) | Five Year Anniversary | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual installments | 5 years | |||||
Nonemployee director incentives | Restricted Stock Units (RSUs) | Ten Year Anniversary | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual installments | 10 years | |||||
Nonemployee director incentives | Restricted Stock Units (RSUs) | Fifteen Year Anniversary | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual installments | 15 years | |||||
Hewlett Packard Enterprise Services | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested awards became vested, triggered by Merger | $ 3,600,000 | |||||
Incremental stock compensation expense | $ 26,000,000 | |||||
Hewlett Packard Enterprise Services | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of options converted into RSUs upon Merger | 67.00% | |||||
Hewlett Packard Enterprise Services | Stock Options | 33.33% vested in year 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 33.00% | |||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share Based Compensation Shares Authorized (Details) | Mar. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 34,680,000 |
Available for future grant (in shares) | 22,674,583 |
DXC Employee Equity Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 34,200,000 |
Available for future grant (in shares) | 22,302,423 |
DXC Director Equity Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 230,000 |
Available for future grant (in shares) | 123,634 |
DXC Share Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reserved for issuance (in shares) | 250,000 |
Available for future grant (in shares) | 248,526 |
Stock Incentive Plans - Sche112
Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total share-based compensation cost | $ 93 | $ 75 | $ 46 |
Related income tax benefit | 21 | 25 | 17 |
Total intrinsic value of options exercised | 136 | 73 | 46 |
Tax benefits from exercised stock options and awards | $ 84 | $ 34 | $ 62 |
Stock Incentive Plans - Sche113
Stock Incentive Plans - Schedule of Assumptions Used to Calculate Share-Based Compensation Expense (Details) - Stock Options | 12 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.60% | 1.81% |
Expected volatility | 29.00% | 31.00% |
Expected term (in years) | 6 years 1 month 2 days | 6 years 2 months 23 days |
Dividend yield | 1.56% | 1.39% |
Stock Incentive Plans - Sche114
Stock Incentive Plans - Schedule of Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | Apr. 03, 2015 | |
Additional Disclosures | ||||
Total intrinsic value of options exercised | $ 136 | $ 73 | $ 46 | |
Stock Options | ||||
Number of Option Shares | ||||
Outstanding beginning of period (in shares) | 4,767,396 | 5,366,621 | 5,556,309 | |
Granted (in shares) | 0 | 2,450,976 | 1,052,129 | |
Issued due to Separation modification (in shares) | 1,614,465 | |||
HPE options converted to DXC options at HPES Merger (in shares) | 2,654,970 | |||
CSC options converted to RSUs due to HPES Merger (in shares) | (1,521,519) | |||
Exercised (in shares) | (2,916,045) | (2,544,955) | (2,372,109) | |
Canceled/Forfeited (in shares) | (14,890) | (448,505) | (434,578) | |
Expired (in shares) | (36,411) | (56,741) | (49,595) | |
Outstanding end of period (in shares) | 2,933,501 | 4,767,396 | 5,366,621 | 5,556,309 |
Weighted Average Exercise Price | ||||
Weighted average exercise price - beginning of period (in dollars per share) | $ 38.70 | $ 24.83 | $ 46.08 | |
Weighted average exercise price - granted (in dollars per share) | 0 | 50.91 | 30.70 | |
Weighted average exercise price - issued due to Separation modification (in dollars per share) | 28.40 | |||
Weighted average exercise price - HPE options converted to DXC options at HPES Merger (in dollars per share) | 46.56 | |||
Weighted average exercise price - CSC options converted to RSUs due to HPES Merger (in dollars per share) | 51 | |||
Weighted average exercise price - exercised (in dollars per share) | 40.39 | 21.84 | 19.27 | |
Weighted average exercise price - cancelled/forfeited (in dollars per share) | 69.52 | 36.94 | 28.59 | |
Weighted average exercise price - expired (in dollars per share) | 36.69 | 14.36 | 20.87 | |
Weighted average exercise price - end of period (in dollars per share) | $ 37.62 | $ 38.70 | $ 24.83 | $ 46.08 |
Additional Disclosures | ||||
Weighted average remaining contractual life (in years) | 5 years 2 months 26 days | 8 years 4 days | 7 years 22 days | 5 years 11 months 5 days |
Aggregate intrinsic value | $ 185 | $ 145 | $ 51 | $ 107 |
Total intrinsic value of options exercised | $ 136 | $ 73 | $ 46 | |
Vested and Expected to Vest | ||||
Vested and expected to vest in the future as of period end (in shares) | 2,930,263 | |||
Exercisable as of period end (in shares) | 2,905,801 | |||
Weighted average exercise price vested and expected to vest as of period end (in dollars per share) | $ 37.60 | |||
Weighted average exercise price exercisable as of period end (in dollars per share) | $ 37.43 | |||
Weighted average remaining contractual life vested and expected to vest in the future as of period end (in years) | 5 years 2 months 26 days | |||
Weighted average remaining contractual life exercisable as of period end (in years) | 5 years 2 months 23 days | |||
Aggregate intrinsic value vested and expected to vest in the future as of period end | $ 184 | |||
Aggregate intrinsic value exercisable as of period end | $ 183 |
Stock Incentive Plans - Sche115
Stock Incentive Plans - Schedule of Share Based Compensation Shares Authorized under Stock Option Plans by Exercise Price Range Table (Details) | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 2,933,501 |
Number of exercisable options (in shares) | shares | 2,905,801 |
$10.35 - $29.70 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | $ 10.35 |
Range of option exercise price, maximum (in dollars per share) | $ 29.70 |
Number of options outstanding (in shares) | shares | 748,574 |
Weighted average exercise price (in dollars per share) | $ 21.74 |
Weighted average remaining contractual life (in years) | 4 years 18 days |
Number of exercisable options (in shares) | shares | 748,574 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 21.74 |
$30.31 - $48.46 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 30.31 |
Range of option exercise price, maximum (in dollars per share) | $ 48.46 |
Number of options outstanding (in shares) | shares | 1,421,166 |
Weighted average exercise price (in dollars per share) | $ 36.57 |
Weighted average remaining contractual life (in years) | 5 years 3 months 28 days |
Number of exercisable options (in shares) | shares | 1,421,166 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 36.57 |
$49.24 - 86.17 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 49.24 |
Range of option exercise price, maximum (in dollars per share) | $ 86.17 |
Number of options outstanding (in shares) | shares | 763,761 |
Weighted average exercise price (in dollars per share) | $ 55.13 |
Weighted average remaining contractual life (in years) | 6 years 3 months 4 days |
Number of exercisable options (in shares) | shares | 736,061 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 55.03 |
Stock Incentive Plans - Sche116
Stock Incentive Plans - Schedule of RSUs (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Nonemployee director incentives | |||
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 85,766 | 89,046 | 143,986 |
Equity instruments other than options nonvested - granted (in shares) | 22,900 | 33,600 | 65,188 |
Equity instruments other than options nonvested - settled (in shares) | (39,980) | (32,080) | (107,878) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | (2,300) | (4,800) | (12,250) |
Equity instruments other than options nonvested - ending balance (in shares) | 66,386 | 85,766 | 89,046 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 34.19 | $ 27 | $ 30.02 |
Weighted average fair value other than options - granted (in dollars per share) | 84.40 | 47.35 | 31.75 |
Weighted average fair value other than options - settled (in dollars per share) | 45.25 | 28.58 | 33.11 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 85.35 | 30.31 | 33.96 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 43.08 | $ 34.19 | $ 27 |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 3,710,985 | 3,597,999 | 2,579,675 |
Equity instruments other than options nonvested - granted (in shares) | 1,828,667 | 1,150,185 | 3,234,197 |
Equity instruments other than options nonvested - issued due to Separation modification (in shares) | 419,160 | ||
Equity instruments other than options nonvested - HPE RSUs converted to DXC RSUs due to HPES Merger (in shares) | 95,816 | ||
Equity instruments other than options nonvested - Options converted to RSUs due to HPES Merger (in shares) | 609,416 | ||
Equity instruments other than options nonvested - settled (in shares) | (1,934,446) | (602,467) | (1,783,664) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | (324,822) | (434,732) | (851,369) |
Equity instruments other than options nonvested - ending balance (in shares) | 3,985,616 | 3,710,985 | 3,597,999 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 34.86 | $ 29.25 | $ 48.70 |
Weighted average fair value other than options - granted (in dollars per share) | 82.34 | 47.70 | 27.97 |
Weighted average fair value other than options - issued due to separation modification (in dollars per share) | 29.95 | ||
Weighted average fair value other than options - HPE RSUs converted to DXC RSUs due to HPES Merger (in dollars per share) | 69.34 | ||
Weighted average fair value other than options - options converted to RSUs due to HPES Merger (in dollars per share) | 32.58 | ||
Weighted average fair value other than options - settled (in dollars per share) | 35.93 | 27.29 | 28.87 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 59.34 | 32.86 | 40.97 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 54.61 | $ 34.86 | $ 29.25 |
Cash Flows (Details)
Cash Flows (Details) - USD ($) $ in Millions | Jun. 11, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 |
Cash paid for: | ||||
Interest | $ 288 | $ 103 | $ 124 | |
Taxes on income, net of refunds | 376 | 63 | 65 | |
Non-cash activities, operating | ||||
Prepaid assets acquired under long-term financing | 209 | 0 | 0 | |
Non-cash activities, investing | ||||
Capital expenditures in accounts payable and accrued expenses | 46 | 43 | 42 | |
Capital expenditures through capital lease obligations | 664 | 52 | 47 | |
Assets acquired under long-term financing | 238 | 87 | 1 | |
Non-cash activities, financing | ||||
Dividends declared but not yet paid | 51 | 20 | 19 | |
Stock issued for the acquisition of HPES | $ 9,850 | $ 0 | $ 0 | |
Contracts Accounted for under Percentage of Completion, U.S. Claims | NHS contract | ||||
Loss Contingencies [Line Items] | ||||
Penalty paid | $ 190 |
Other Income_ Expense, Net (Det
Other Income/ Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Other Income and Expenses [Abstract] | |||
Foreign currency gain | $ (71) | $ (8) | $ (1) |
Other gain | (11) | (2) | (8) |
Totals | $ (82) | $ (10) | (9) |
Gain on sale of certain assets | $ 6 |
Segment and Geographic Infor119
Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 24,556 | $ 7,607 | $ 7,106 |
Segment Profit | 3,499 | 618 | 405 |
Depreciation and amortization | 1,373 | 570 | 658 |
Amortization of acquired intangible assets | 591 | 77 | 0 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 3,499 | 618 | 405 |
Interest income | 89 | 35 | 38 |
Interest expense | (335) | (117) | (123) |
Restructuring costs | (803) | (238) | (23) |
Pension and OPEB actuarial and settlement gains | 220 | (87) | (99) |
Amortization of acquired intangible assets | (591) | (77) | 0 |
Transaction and integration-related costs | (408) | (308) | (93) |
Debt extinguishment costs | 0 | 0 | (95) |
Income (loss) from continuing operations, before taxes | 1,671 | (174) | 10 |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 24,556 | 7,607 | 7,106 |
Segment Profit | 3,679 | 798 | 656 |
Depreciation and amortization | 1,280 | 506 | 615 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 3,679 | 798 | 656 |
Operating segments | GBS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,254 | 4,173 | 3,637 |
Segment Profit | 1,563 | 492 | 417 |
Depreciation and amortization | 99 | 107 | 124 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 1,563 | 492 | 417 |
Operating segments | GIS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,479 | 3,434 | 3,469 |
Segment Profit | 1,699 | 306 | 239 |
Depreciation and amortization | 1,082 | 399 | 491 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 1,699 | 306 | 239 |
Operating segments | USPS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,823 | 0 | 0 |
Segment Profit | 417 | 0 | 0 |
Depreciation and amortization | 99 | 0 | 0 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 417 | 0 | 0 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Segment Profit | (180) | (180) | (251) |
Depreciation and amortization | 93 | 64 | 43 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | $ (180) | $ (180) | $ (251) |
Segment and Geographic Infor120
Segment and Geographic Information - Geographic Revenues, PPE, and Total Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 24,556 | $ 7,607 | $ 7,106 | |
Property and Equipment, net | 3,646 | 903 | 1,025 | |
Total Assets | 33,921 | 8,663 | [1] | 7,736 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,838 | 2,986 | 3,057 | |
Property and Equipment, net | 1,553 | 389 | 466 | |
Total Assets | 16,986 | 4,925 | 3,330 | |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,392 | 1,482 | 1,570 | |
Property and Equipment, net | 535 | 235 | 244 | |
Total Assets | 9,756 | 1,019 | 1,053 | |
Australia | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,694 | 921 | 483 | |
Property and Equipment, net | 191 | 58 | 63 | |
Total Assets | 591 | 978 | 703 | |
Other Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,409 | 1,594 | 1,474 | |
Property and Equipment, net | 465 | 134 | 157 | |
Total Assets | 4,726 | 358 | 1,580 | |
Other International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,223 | 624 | 522 | |
Property and Equipment, net | 902 | 87 | 95 | |
Total Assets | $ 1,862 | $ 1,383 | $ 1,070 | |
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 803 | $ 238 | $ 23 |
Restructuring Reserve [Abstract] | |||
Accrued expenses and other current liabilities | 371 | 171 | |
Other long-term liabilities | 156 | 6 | |
Total | 527 | 177 | |
Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (32) | 248 | |
Restructuring Reserve [Abstract] | |||
Total | 22 | 161 | 0 |
Restructuring cost incurred to date | 216 | ||
Fiscal 2016 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | (7) | |
Restructuring Reserve [Abstract] | |||
Total | 5 | 13 | 59 |
Restructuring cost incurred to date | 57 | ||
Fiscal 2015 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (3) | |
Restructuring Reserve [Abstract] | |||
Total | 1 | 3 | 29 |
Restructuring cost incurred to date | 228 | ||
Workforce Reductions | Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (32) | 239 | |
Restructuring Reserve [Abstract] | |||
Total | 19 | 155 | 0 |
Restructuring cost incurred to date | 207 | ||
Workforce Reductions | Fiscal 2016 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | (3) | |
Restructuring Reserve [Abstract] | |||
Total | 3 | 8 | 29 |
Restructuring cost incurred to date | 24 | ||
Workforce Reductions | Fiscal 2015 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (3) | |
Restructuring Reserve [Abstract] | |||
Total | 1 | 3 | 29 |
Restructuring cost incurred to date | 220 | ||
Facilities Costs | Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 9 | |
Restructuring Reserve [Abstract] | |||
Total | 3 | 6 | 0 |
Restructuring cost incurred to date | 9 | ||
Facilities Costs | Fiscal 2016 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (4) | |
Restructuring Reserve [Abstract] | |||
Total | 2 | 5 | 30 |
Restructuring cost incurred to date | 33 | ||
Facilities Costs | Fiscal 2015 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 0 | |
Restructuring Reserve [Abstract] | |||
Total | 0 | $ 0 | $ 0 |
Restructuring cost incurred to date | $ 8 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | $ 177 | ||
Restructuring costs | 803 | $ 238 | $ 23 |
Restructuring Liability, ending balance | 527 | 177 | |
Fiscal 2018 Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Restructuring costs | 840 | ||
Costs Not Affecting Restructuring Liability | (14) | ||
Cash Paid | (476) | ||
Other | 12 | ||
Restructuring Liability, ending balance | 362 | 0 | |
Fiscal 2017 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 161 | 0 | |
Restructuring costs | (32) | 248 | |
Costs Not Affecting Restructuring Liability | (2) | (6) | |
Cash Paid | (117) | (82) | |
Other | 12 | 1 | |
Restructuring Liability, ending balance | 22 | 161 | 0 |
Costs reversed | 34 | ||
Fiscal 2016 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 13 | 59 | |
Restructuring costs | (2) | (7) | |
Costs Not Affecting Restructuring Liability | 1 | 0 | |
Cash Paid | (7) | (37) | |
Other | 0 | (2) | |
Restructuring Liability, ending balance | 5 | 13 | 59 |
Costs reversed | 3 | 7 | |
Fiscal 2015 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 3 | 29 | |
Restructuring costs | 0 | (3) | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | (2) | (22) | |
Other | 0 | (1) | |
Restructuring Liability, ending balance | 1 | 3 | 29 |
Costs reversed | 3 | ||
Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 326 | ||
Restructuring costs | (3) | ||
Costs Not Affecting Restructuring Liability | (5) | ||
Cash Paid | (190) | ||
Other | 9 | ||
Restructuring Liability, ending balance | 137 | 326 | |
Costs reversed | 3 | ||
Workforce Reductions | Fiscal 2018 Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Restructuring costs | 626 | ||
Costs Not Affecting Restructuring Liability | (10) | ||
Cash Paid | (368) | ||
Other | 10 | ||
Restructuring Liability, ending balance | 258 | 0 | |
Workforce Reductions | Fiscal 2017 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 155 | 0 | |
Restructuring costs | (32) | 239 | |
Costs Not Affecting Restructuring Liability | (2) | (6) | |
Cash Paid | (112) | (79) | |
Other | 10 | 1 | |
Restructuring Liability, ending balance | 19 | 155 | 0 |
Workforce Reductions | Fiscal 2016 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 8 | 29 | |
Restructuring costs | (2) | (3) | |
Costs Not Affecting Restructuring Liability | 1 | 0 | |
Cash Paid | (4) | (17) | |
Other | 0 | (1) | |
Restructuring Liability, ending balance | 3 | 8 | 29 |
Workforce Reductions | Fiscal 2015 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 3 | 29 | |
Restructuring costs | 0 | (3) | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | (2) | (22) | |
Other | 0 | (1) | |
Restructuring Liability, ending balance | 1 | 3 | 29 |
Workforce Reductions | Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 256 | ||
Restructuring costs | 0 | ||
Costs Not Affecting Restructuring Liability | (2) | ||
Cash Paid | (153) | ||
Other | 9 | ||
Restructuring Liability, ending balance | 110 | 256 | |
Facilities Costs | Fiscal 2018 Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | ||
Restructuring costs | 214 | ||
Costs Not Affecting Restructuring Liability | (4) | ||
Cash Paid | (108) | ||
Other | 2 | ||
Restructuring Liability, ending balance | 104 | 0 | |
Facilities Costs | Fiscal 2017 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 6 | 0 | |
Restructuring costs | 0 | 9 | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | (5) | (3) | |
Other | 2 | 0 | |
Restructuring Liability, ending balance | 3 | 6 | 0 |
Facilities Costs | Fiscal 2016 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 5 | 30 | |
Restructuring costs | 0 | (4) | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | (3) | (20) | |
Other | 0 | (1) | |
Restructuring Liability, ending balance | 2 | 5 | 30 |
Facilities Costs | Fiscal 2015 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 0 | 0 | |
Restructuring costs | 0 | 0 | |
Costs Not Affecting Restructuring Liability | 0 | 0 | |
Cash Paid | 0 | 0 | |
Other | 0 | 0 | |
Restructuring Liability, ending balance | 0 | 0 | $ 0 |
Facilities Costs | Acquired Liabilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Liability, beginning balance | 70 | ||
Restructuring costs | (3) | ||
Costs Not Affecting Restructuring Liability | (3) | ||
Cash Paid | (37) | ||
Other | 0 | ||
Restructuring Liability, ending balance | $ 27 | $ 70 |
Commitments and Contingencie123
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2016 | |
Commitments [Line Items] | |||
Lease rental expense | $ 841 | $ 146 | $ 152 |
Minimum purchase commitments [Abstract] | |||
2,019 | 1,946 | ||
2,020 | 1,913 | ||
2,021 | 390 | ||
2,022 | 237 | ||
2,023 | 202 | ||
Thereafter | 54 | ||
Total | 4,742 | ||
Real Estate | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2,019 | 374 | ||
2,020 | 281 | ||
2,021 | 225 | ||
2,022 | 234 | ||
2,023 | 146 | ||
Thereafter | 763 | ||
Minimum fixed rentals | 2,023 | ||
Sublease income | (187) | ||
Totals | 1,836 | ||
Equipment | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2,019 | 331 | ||
2,020 | 242 | ||
2,021 | 80 | ||
2,022 | 7 | ||
2,023 | 1 | ||
Thereafter | 0 | ||
Minimum fixed rentals | 661 | ||
Sublease income | 0 | ||
Totals | $ 661 | ||
Minimum | |||
Minimum purchase commitments [Abstract] | |||
Long-term purchase commitment, period | 1 year | ||
Maximum | |||
Minimum purchase commitments [Abstract] | |||
Long-term purchase commitment, period | 6 years |
Commitments and Contingencies -
Commitments and Contingencies - Guarantor Obligations (Details) $ in Millions | Mar. 31, 2018USD ($) |
Guarantor Obligations [Line Items] | |
Fiscal 2,019 | $ 491 |
Fiscal 2,020 | 76 |
Fiscal 2021 and Thereafter | 338 |
Total | 905 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Fiscal 2,019 | 308 |
Fiscal 2,020 | 19 |
Fiscal 2021 and Thereafter | 18 |
Total | 345 |
Letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2,019 | 170 |
Fiscal 2,020 | 41 |
Fiscal 2021 and Thereafter | 313 |
Total | 524 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2,019 | 13 |
Fiscal 2,020 | 16 |
Fiscal 2021 and Thereafter | 7 |
Total | $ 36 |
Commitments and Contingencie125
Commitments and Contingencies - Contingencies (Details) administrator in Thousands, $ in Millions | Oct. 02, 2017USD ($) | Aug. 02, 2017individual | Dec. 17, 2015USD ($) | May 12, 2015employee | Oct. 31, 2015USD ($) | Dec. 31, 2013lawsuit | Sep. 30, 2013individual | Apr. 01, 2016employee | Apr. 03, 2015administrator | Jan. 30, 2018 | Feb. 02, 2017joint_venture | May 12, 2016 |
Loss Contingencies [Line Items] | ||||||||||||
Number of partially-owned joint ventures involved in possible sanctions law violations | joint_venture | 2 | |||||||||||
DC Navy Yard Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of individuals deceased in shooting | individual | 12 | |||||||||||
Number of lawsuits | lawsuit | 15 | |||||||||||
Strauch and Colby v. Computer Sciences Corporation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of system administrators for class action, more than | administrator | 4 | |||||||||||
Number of system administrators filed Consent to Join forms | administrator | 1 | |||||||||||
Number of individuals involved in collective action | individual | 700 | |||||||||||
Settled litigation | Civil Complaint Against Eric Pulier | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Former employees under investigation | employee | 2 | |||||||||||
Litigation settlement | $ 16.5 | |||||||||||
Former employees who pled guilty | employee | 1 | |||||||||||
Loss contingency, legal fees percentage | 80.00% | 80.00% | ||||||||||
Settled litigation | Kemper Corporate Services, Inc. v. Computer Sciences Corporation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement to other party | $ 84.2 | |||||||||||
Pending litigation | Kemper Corporate Services, Inc. v. Computer Sciences Corporation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, damages sought | $ 100 |