Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | May 10, 2019 | Sep. 28, 2018 | |
Document Information [Abstract] | |||
Entity Registrant Name | DXC TECHNOLOGY CORPORATION | ||
Entity Central Index Key | 0001688568 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 268,597,251 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 26,235,616,834 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,899 | $ 2,593 |
Receivables, net of allowance for doubtful accounts of $60 and $40 | 5,181 | 5,481 |
Prepaid expenses | 627 | 496 |
Other current assets | 359 | 469 |
Assets of discontinued operations | 0 | 581 |
Total current assets | 9,066 | 9,620 |
Intangible assets, net of accumulated amortization of $3,399 and $2,603 | 5,939 | 6,376 |
Goodwill | 7,606 | 7,619 |
Deferred income taxes, net | 355 | 373 |
Property and equipment, net of accumulated depreciation of $3,958 and $3,686 | 3,179 | 3,363 |
Other assets | 3,429 | 3,207 |
Assets of discontinued operations - non-current | 0 | 3,363 |
Total Assets | 29,574 | 33,921 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 1,942 | 1,918 |
Accounts payable | 1,666 | 1,513 |
Accrued payroll and related costs | 652 | 744 |
Accrued expenses and other current liabilities | 3,355 | 3,120 |
Deferred revenue and advance contract payments | 1,630 | 1,641 |
Income taxes payable | 208 | 127 |
Liabilities of discontinued operations | 0 | 789 |
Total current liabilities | 9,453 | 9,852 |
Long-term debt, net of current maturities | 5,470 | 6,092 |
Non-current deferred revenue | 256 | 795 |
Non-current pension obligations | 790 | 879 |
Non-current income tax liabilities and deferred tax liabilities | 1,184 | 1,166 |
Other long-term liabilities | 696 | 844 |
Liabilities of discontinued operations - long-term | 0 | 456 |
Total Liabilities | 17,849 | 20,084 |
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, 2019 and March 31, 2018 | 0 | 0 |
Common stock, par value $0.01 per share; authorized 750,000,000 shares; issued 270,213,891 as of March 31, 2019 and 286,393,147 as of March 31, 2018 | 3 | 3 |
Additional paid-in capital | 11,301 | 12,210 |
Retained earnings | 478 | 1,301 |
Accumulated other comprehensive (loss) income | (244) | 58 |
Treasury stock, at cost, 1,788,658 and 1,016,947 shares as of March 31, 2019 and March 31, 2018 | (136) | (85) |
Total DXC stockholders’ equity | 11,402 | 13,487 |
Non-controlling interest in subsidiaries | 323 | 350 |
Total Equity | 11,725 | 13,837 |
Total Liabilities and Equity | $ 29,574 | $ 33,921 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 60 | $ 40 |
Accumulated amortization | 3,399 | 2,603 |
Accumulated depreciation | $ 3,958 | $ 3,686 |
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) | 270,213,891 | 286,393,147 |
Common stock in treasury, at cost (in shares) | 1,788,658 | 1,016,947 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Income Statement [Abstract] | |||||
Revenues | $ 20,753 | $ 21,733 | $ 7,607 | ||
Costs of services (excludes depreciation and amortization and restructuring costs) | 14,946 | 16,317 | 5,549 | ||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 1,959 | 1,890 | 1,282 | ||
Depreciation and amortization | 1,968 | 1,795 | 647 | ||
Restructuring costs | 465 | 789 | 238 | ||
Interest expense | 334 | 320 | 117 | ||
Interest income | (128) | (89) | (35) | ||
Other income, net | (306) | (593) | (17) | ||
Total costs and expenses | 19,238 | 20,429 | 7,781 | ||
Income (loss) from continuing operations, before taxes | 1,515 | 1,304 | (174) | ||
Income tax expense (benefit) | 288 | (242) | (74) | ||
Income (loss) from continuing operations | 1,227 | 1,546 | (100) | ||
Income from discontinued operations, net of taxes | 35 | 236 | 0 | ||
Net income (loss) | 1,262 | 1,782 | [1],[2] | (100) | [2] |
Less: net income attributable to non-controlling interest, net of tax | 5 | 31 | 23 | ||
Net income (loss) attributable to DXC common stockholders | $ 1,257 | $ 1,751 | $ (123) | ||
Income (loss) per common share - Basic: | |||||
Continuing operations (in dollars per share) | $ 4.40 | $ 5.32 | $ (0.88) | ||
Discontinued operations (in dollars per share) | 0.13 | 0.83 | 0 | ||
Basic EPS (in dollars per share) | 4.53 | 6.15 | (0.88) | ||
Income (loss) per common share - Diluted: | |||||
Continuing operations (in dollars per share) | 4.35 | 5.23 | (0.88) | ||
Discontinued operations (in dollars per share) | 0.12 | 0.81 | 0 | ||
Diluted EPS (in dollars per share) | $ 4.47 | $ 6.04 | $ (0.88) | ||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 1,262 | $ 1,782 | [1],[2] | $ (100) | [2] |
Other comprehensive (loss) income, net of taxes: | |||||
Foreign currency translation adjustments, net of tax (benefit) expense of $(1), $75 and $5 | (259) | 197 | (75) | ||
Cash flow hedges adjustment, net of tax (benefit) expense of $(3), $(3) and $12 | (12) | ||||
Cash flow hedges adjustment, net of tax (benefit) expense of $(3), $(3) and $12 | (11) | 21 | |||
Available-for-sale securities, net of tax expense of $0, $2 and $0 | 0 | 9 | 0 | ||
Pension and other post-retirement benefit plans, net of tax: | |||||
Prior service cost, net of tax (benefit) expense of $(5), $8 and $0 | (21) | 38 | 0 | ||
Amortization of transition obligation, net of tax expense of $0, $0, and $0 | 0 | 1 | 1 | ||
Amortization of prior service cost, net of tax benefit of $2, $4 and $5 | (13) | (14) | (12) | ||
Foreign currency exchange loss, net of tax benefit of $0, $0 and $1 | 0 | 0 | (2) | ||
Pension and other post-retirement benefit plans, net of tax | (34) | 25 | (13) | ||
Other comprehensive (loss) income, net of taxes | (305) | 220 | (67) | ||
Comprehensive income (loss) | 957 | 2,002 | (167) | ||
Less: comprehensive income attributable to non-controlling interest | 2 | 31 | 7 | ||
Comprehensive income (loss) attributable to DXC common stockholders | $ 955 | $ 1,971 | $ (174) | ||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ (1) | $ 75 | $ 5 |
Cash flow hedges adjustment, tax | (3) | ||
Cash flow hedges adjustment, tax | (3) | 12 | |
Available-for-sale securities, tax | 0 | 2 | 0 |
Prior service cost, tax | (5) | 8 | 0 |
Amortization of transition obligation, tax | 0 | 0 | 0 |
Amortization of prior service cost, tax | 2 | 4 | 5 |
Foreign currency exchange (loss) gain, tax | $ 0 | $ 0 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | Mar. 31, 2017 | ||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 1,262 | $ 1,782 | [2] | $ (100) | [2] | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 2,023 | 2,014 | [2] | 658 | [2] | ||
Pension & other post-employment benefits, actuarial & settlement losses (gains) | 143 | (220) | [2] | 87 | [2] | ||
Share-based compensation | 74 | 93 | [2] | 75 | [2] | ||
Deferred taxes | 97 | (842) | [2] | (92) | [2] | ||
(Gain) loss on dispositions | (163) | 4 | [2] | 6 | [2] | ||
Provision for losses on accounts receivable | (10) | 45 | [2] | 4 | [2] | ||
Unrealized foreign currency exchange losses | 30 | 22 | [2] | 24 | [2] | ||
Impairment losses and contract write-offs | 0 | 41 | [2] | 8 | [2] | ||
Amortization of debt issuance costs and (premium) discount | (10) | (4) | [2] | 17 | [2] | ||
Cash surrender value in excess of premiums paid | (11) | (11) | [2] | (7) | [2] | ||
Other non-cash charges, net | 11 | 4 | [2] | 0 | [2] | ||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Increase in receivables | (947) | (464) | [2] | (25) | [2] | ||
Increase in prepaid expenses and other current assets | (632) | (196) | [2] | (29) | [2] | ||
(Decrease) increase in accounts payable and accruals | (52) | (96) | [2] | 54 | [2] | ||
(Decrease) increase in income taxes payable and income tax liability | (107) | 303 | [2] | (32) | [2] | ||
(Decrease) increase in advance contract payments and deferred revenue | (74) | 130 | [2] | (67) | [2] | ||
Other operating activities, net | 149 | (38) | [2] | 38 | [2] | ||
Net cash provided by operating activities | 1,783 | 2,567 | [2] | 619 | [2] | ||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (297) | (224) | [2] | (246) | [2] | ||
Payments for transition and transformation contract costs | (394) | (328) | [2] | (101) | [2] | ||
Software purchased and developed | (261) | (211) | [2] | (140) | [2] | ||
Cash acquired through HPES Merger | 0 | 938 | [2] | 0 | [2] | ||
Payments for acquisitions, net of cash acquired | (365) | (203) | [2] | (434) | [2] | ||
Business dispositions | (65) | 0 | [2] | 3 | [2] | ||
Cash collections related to deferred purchase price receivable | 1,084 | 685 | [2] | 359 | [2] | ||
Proceeds from sale of assets | 357 | 58 | [2] | 57 | [2] | ||
Other investing activities, net | 10 | 4 | [2] | (63) | [2] | ||
Net cash provided by (used in) investing activities | 69 | 719 | [2] | (565) | [2] | ||
Cash flows from financing activities: | |||||||
Borrowings of commercial paper | 2,747 | 2,413 | [2] | 2,191 | [2] | ||
Repayments of commercial paper | (2,840) | (2,297) | [2] | (2,086) | [2] | ||
Borrowings under lines of credit | 0 | 0 | [2] | 920 | [2] | ||
Repayment of borrowings under lines of credit | 0 | (737) | [2] | (789) | [2] | ||
Borrowings on long-term debt, net of discount | 1,646 | 621 | [2] | 159 | [2] | ||
Principal payments on long-term debt | (2,625) | (1,547) | [2] | (168) | [2] | ||
Payments on capital leases and borrowings for asset financing | (944) | (1,060) | [2] | (145) | [2] | ||
Borrowings for USPS spin transaction | 1,114 | 0 | [2] | 0 | [2] | ||
Proceeds from bond issuance | 753 | 989 | [2] | 0 | [2] | ||
Proceeds from structured sale of facility | 0 | 0 | [2] | 85 | [2] | ||
Proceeds from stock options and other common stock transactions | 47 | 138 | [2] | 54 | [2] | ||
Taxes paid related to net share settlements of share-based compensation awards | (54) | (76) | [2] | (13) | [2] | ||
Repurchase of common stock | (1,344) | (132) | [2] | 0 | [2] | ||
Dividend payments | (210) | (174) | [2] | (78) | [2] | ||
Other financing activities, net | 47 | (28) | [2] | (37) | [2] | ||
Net cash (used in) provided by financing activities | (1,663) | (1,890) | [2] | 93 | [2] | ||
Effect of exchange rate changes on cash and cash equivalents | (19) | 65 | [2] | (60) | [2] | ||
Net increase in cash and cash equivalents | 170 | 1,461 | [2] | 87 | [2] | ||
Cash and cash equivalents at beginning of year | [2] | 2,729 | [1] | 1,268 | 1,181 | ||
Cash and cash equivalents at end of year | $ 2,899 | $ 2,729 | [2] | $ 1,268 | [1],[2] | ||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
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 DXC Equity | Non-Controlling Interest | As Previously Reported | As Previously ReportedCommon Stock | As Previously ReportedAdditional Paid-In Capital | As Previously Reported(Accumulated Deficit) Retained Earnings | As Previously ReportedAccumulated Other Comprehensive Income (Loss) | As Previously ReportedTreasury Stock | As Previously ReportedTotal DXC Equity | As Previously ReportedNon-Controlling Interest | Restatement Adjustment | [1] | Restatement AdjustmentCommon Stock | Restatement AdjustmentAdditional Paid-In Capital | Restatement AdjustmentTreasury Stock | ||||||
Balance (in shares) at Apr. 01, 2016 | 148,747,000 | 148,747,000 | |||||||||||||||||||||||||
Balance at Apr. 01, 2016 | $ 2,032 | $ 1 | $ 2,587 | $ 33 | $ (111) | $ (485) | $ 2,025 | $ 7 | $ 2,032 | $ 149 | $ 2,439 | $ 33 | $ (111) | $ (485) | $ 2,025 | $ 7 | $ 0 | $ (148) | [1] | $ 148 | [1] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Net (loss) income | (100) | [2] | (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) | [1] | 3,185,000 | |||||||||||||||||||||||||
Stock option exercises and other common stock transactions | [1] | 56 | 56 | 56 | |||||||||||||||||||||||
Dividends declared | (80) | (80) | (80) | ||||||||||||||||||||||||
Noncontrolling interest distributions and other | (17) | (17) | |||||||||||||||||||||||||
Noncontrolling interest from acquisition | [3] | 281 | 281 | ||||||||||||||||||||||||
Balance (in shares) at Mar. 31, 2017 | 141,299,000 | 151,932,000 | (10,633,000) | [1],[4] | |||||||||||||||||||||||
Balance at Mar. 31, 2017 | 2,166 | $ 1 | 2,219 | (170) | (162) | 0 | 1,888 | 278 | 2,166 | $ 152 | 2,565 | (170) | (162) | (497) | 1,888 | 278 | $ (151) | [4] | (346) | [4] | $ 497 | [4] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Balance | $ 2,166 | $ 1 | $ 2,716 | $ (170) | $ (162) | $ (497) | $ 1,888 | $ 278 | $ 0 | $ 0 | [1] | $ (497) | [1] | $ 497 | [1] | ||||||||||||
Business acquired in purchase, net of issuance costs (in shares) | [5] | 141,741,000 | |||||||||||||||||||||||||
Business acquired in purchase, net of issuance costs | [5] | 9,900 | $ 2 | 9,848 | 9,850 | 50 | |||||||||||||||||||||
Net (loss) income | 1,782 | [2],[6] | 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) | (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) | [7] | 13,487 | 350 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Treasury shares | 1,016,947 | ||||||||||||||||||||||||||
Net (loss) income | $ 1,262 | 1,257 | 1,257 | 5 | |||||||||||||||||||||||
Other comprehensive Income (loss) | (305) | (302) | (302) | (3) | |||||||||||||||||||||||
Share-based compensation expense | 74 | 74 | 74 | ||||||||||||||||||||||||
Acquisition of treasury stock | (51) | (51) | [7] | (51) | |||||||||||||||||||||||
Share repurchase program (in shares) | (19,343,000) | ||||||||||||||||||||||||||
Share repurchase program | (1,339) | (845) | (494) | (1,339) | |||||||||||||||||||||||
Stock option exercises and other common stock transactions (in shares) | 3,164,000 | ||||||||||||||||||||||||||
Stock option exercises and other common stock transactions | 37 | 37 | 37 | ||||||||||||||||||||||||
Dividends declared | (209) | (209) | (209) | ||||||||||||||||||||||||
Noncontrolling interest distributions and other | (29) | (29) | |||||||||||||||||||||||||
Divestiture of USPS | (1,666) | (175) | (1,491) | (1,666) | |||||||||||||||||||||||
Balance (in shares) at Mar. 31, 2019 | 270,214,000 | ||||||||||||||||||||||||||
Balance at Mar. 31, 2019 | $ 11,725 | $ 3 | $ 11,301 | $ 478 | $ (244) | $ (136) | [7] | $ 11,402 | $ 323 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Treasury shares | 1,788,658 | ||||||||||||||||||||||||||
[1] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||||||||||||||||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." | ||||||||||||||||||||||||||
[3] | See Note 2 - "Acquisitions" | ||||||||||||||||||||||||||
[4] | Certain prior year amounts were adjusted to retroactively reflect the legal capital of DXC. | ||||||||||||||||||||||||||
[5] | See Note 2 - "Acquisitions" | ||||||||||||||||||||||||||
[6] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||||||||||||||||||||||||
[7] | 1,788,658 treasury shares as of March 31, 2019 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - Parenthetical - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash Dividends Declared Per Common Share (in dollars per share) | $ 0.76 | $ 0.72 | $ 0.56 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business DXC Technology Company ("DXC" or the "Company") leads digital transformations for clients by modernizing and integrating their mainstream IT, and by deploying digital solutions at scale to produce better business outcomes. The company’s technology independence, global talent, and extensive partner network enable 6,000 private and public-sector clients in approximately 70 countries to thrive on change. DXC is a recognized leader in corporate responsibility. 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. Separation of USPS On May 31, 2018, DXC completed the separation of its U.S. Public Sector business ("USPS") (the "Separation"), and combination of USPS with Vencore Holding Corp. ("Vencore") and KeyPoint Government Solutions ("Keypoint") (the "Mergers") to form Perspecta Inc. ("Perspecta"), an independent public company (collectively, the "USPS Separation and Mergers"). Under the terms of the separation agreements, on May 31, 2018, stockholders who held DXC common stock at the close of business on May 25, 2018 (the “Record Date”), received a distribution of one share of Perspecta common stock for every two shares of DXC common stock held as of the Record Date (the "Distribution"). See Note 3 - " Divestitures " for more information. As a result of the Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations, assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. In addition, USPS is no longer a reportable segment. DXC's reportable segments are Global Business Services ("GBS") and Global Infrastructure Services ("GIS"). 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. During fiscal 2018, the Company 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. Certain prior year amounts have been reclassified in the financial statements to conform to the current year presentation, specifically transition and transformation contract costs were reclassified from intangible assets, net to other assets within the balance sheets. Additionally, certain other reclassification were made as a result of the adoption of new accounting standards effective April 1, 2018. See New Accounting Standards below for more information. 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 positions, 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 Effective April 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (ASC 606),” using the modified retrospective method. Refer to New Accounting Standards below and Note 19 - “ Revenue ” for further discussion of the impact of adoption and other required disclosures. The Company’s accounting policy related to the new revenue standard is summarized below. The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenues are recognized when control of the promised goods or services is transferred to DXC's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. DXC determines revenue recognition through the five-step model as follows: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation DXC's IT outsourcing arrangements typically reflect a single performance obligation that comprises a series of distinct services which are substantially the same and provided over a period of time using the same measure of progress. Revenue derived from these arrangements is recognized over time based upon the level of services delivered in the distinct periods in which they are provided based on time increments. DXC's 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. Upfront fees are generally recognized ratably over the contract period, which approximates the manner in which the services are provided. These activities typically do not qualify as performance obligations, and the related revenues are allocated to the relevant performance obligations and recognized ratably over time as the performance obligation is satisfied during the period in which DXC provides the related service, which is typically the life of the contract. Software transactions that include multiple performance obligations are described below. For contracts with multiple performance obligations, DXC allocates the contract’s transaction price to each performance obligation based on the relative standalone selling price of each distinct good or service in the contract. Other than software sales involving multiple performance obligations, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The transaction price of a contract is determined based on fixed and variable consideration. Variable consideration related to the Company’s IT outsourcing offerings often include volume-based pricing that are allocated to the distinct days of the services to which the variable consideration pertains. However, in certain cases, estimates of variable consideration, including penalties, contingent milestone payments and rebates are necessary. The Company only includes estimates of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. These judgments involve consideration of historical and expected experience with the customer and other similar customers, and the facts and circumstances specific to the arrangement. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and software contracts for which revenue is recognized in the following manner: Time and materials contracts . Revenue is recognized over time at agreed-upon billing rates when services are provided. Unit-price contracts. Revenue is recognized over time 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 over time using a method that measures the extent of progress towards completion of a performance obligation, generally using a cost-input method (referred to as the percentage-of-completion cost-to-cost method). Under the percentage-of-completion cost-to-cost method, revenue is recognized based on the proportion of total cost incurred to estimated total costs at completion. A performance obligation's estimate at completion includes all direct costs such as materials, labor, subcontractor costs, overhead, and a ratable portion of general and administrative costs. If output or input measures are not available or cannot be reasonably estimated, revenue is deferred until progress can be measured and costs are not deferred unless they meet the criteria for capitalization. Under the percentage-of-completion cost-to-cost 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. Software contracts. Certain of DXC's arrangements involve the sale of DXC proprietary software, post contract customer support, and other software-related services. The standalone selling price generally is determined for each performance obligation using an adjusted market assessment approach based on the price charged where each deliverable is sold separately. In certain limited cases (typically for software licenses) when the historical selling price is highly variable, the residual approach is used. This approach allocates revenue to the performance obligation equal to the difference between the total transaction price and the observable standalone selling prices for the other performance obligations. Revenue from distinct software licenses is recognized at a point in time when the customer can first use the software license. If significant customization is required, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. Revenue for post contract customer support and other software services is recognized over time as those services are provided. Practical Expedients and Exemptions DXC does not adjust the promised amount of consideration for the effects of a significant financing component when the period between when DXC transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. In addition, the Company reports revenue net of any revenue-based taxes assessed by a governmental authority that are imposed on and concurrent with specific revenue-producing transactions, such as sales taxes and value-added taxes. Contract Balances The timing of revenue recognition, billings and cash collections results in accounts receivable (billed receivables, unbilled receivables and contract assets) and deferred revenue and advance contract payments (contract liabilities) on the Company's balance sheets. In arrangements that contain an element of customized software solutions, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g. monthly) or upon achievement of certain contractual milestones. Generally, billing occurs subsequent to revenue recognition, sometimes resulting in contract assets if the related billing is conditional upon more than just the passage of time. However, the Company sometimes receives advances or deposits from customers, before revenue is recognized, which results in the generation of contract liabilities. Payment terms vary by type of product or service being provided as well as by customer, although the term between invoicing and when payment is due is generally an insignificant period of time. Costs to Obtain a Contract Certain sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The majority of sales commissions are paid based on the achievement of quota-based targets. These costs are deferred and amortized on a straight-line basis over an average period of benefit determined to be five years. The Company determined the period of benefit considering the length of its customer contracts, its technology and other factors. The period of benefit approximates the average stated contract terms, excluding expected future renewals, because sales commissions are paid upon contract renewal in a manner commensurate with the initial commissions. Some commission payments are not capitalized because they are expensed during the fiscal year as the related revenue is recognized. Capitalized sales commissions costs are classified within other assets and amortized in selling, general and administrative expenses. Costs to Fulfill a Contract Certain contract setup costs incurred upon initiation or renewal of an outsourcing contract that generate or enhance resources to be used in satisfying future performance obligations are capitalized when they are deemed recoverable. Judgment is applied to assess whether contract setup costs are capitalizable. Costs that generate or enhance resources often pertain to activities that enhance the capabilities of the services, improve customer experience and establish a more effective and efficient IT environment. The Company recognizes these transition and transformation contract costs as other assets, which are amortized over the respective contract life. 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. The Company has defined its reporting units as its reportable segments. 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2019 Acquisitions Molina Medicaid Solutions Acquisition On October 1, 2018, DXC completed its acquisition of Molina Medicaid Solutions ("MMS"), a Medicaid Management Information Systems business, from Molina Healthcare, Inc. for total consideration of $233 million . The combination of MMS with DXC expands DXC’s ability to provide services to state agencies in the administration of Medicaid programs, including business processing, information technology development and administrative services. The Company’s purchase price allocation for the MMS acquisition is preliminary and subject to revision as additional information related to the fair value of assets and liabilities becomes available. The preliminary purchase price allocation was based upon the current determination of fair values at the date of acquisition as follows: $91 million to current assets, $112 million to intangible assets other than goodwill, $11 million to other assets, $50 million to current liabilities, $22 million to other liabilities and $91 million to goodwill. The goodwill is associated with the Company's GBS segment and is tax deductible. The intangible assets acquired include customer relationships and developed technology which have a 13 -year weighted average estimated useful life. Other Acquisitions In addition to the MMS acquisition, DXC completed seven acquisitions to complement the Company's Microsoft Dynamics and ServiceNow offerings and to provide opportunities for future growth. The acquired businesses are included in the results for the GBS segment. The purchase consideration of $228 million included cash of $187 million and contingent consideration with an estimated fair value of $41 million . The Company's purchase price allocation for these acquisitions is preliminary and subject to revision as additional information related to the fair value of assets and liabilities becomes available. The purchase price is allocated to assets acquired and liabilities assumed based upon determination of fair values at the dates of acquisition as follows: $73 million to current assets, $71 million to intangible assets other than goodwill, $10 million to other non-current assets, $63 million to current liabilities and $137 million to goodwill. The goodwill is associated with the Company's GBS segment some of which is tax deductible. 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. 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 (2) 6,016 Other assets (2) 1,939 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 of $203 million received from HPE in accordance with the provisions of the Separation Agreement. (2) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. 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 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 ." 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. The Company valued acquired property and equipment using predominately the market method, and in certain specific cases, the cost method. 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. The Company valued intangible assets predominately using the multi-period excess earnings method. Intangible assets include customer relationships which have useful lives of 10 - 13 years and third-party purchased software which have useful lives of 2 - 7 years. Subsequent to the HPES Merger, the Company divested USPS which was acquired in the HPES Merger. See Note 3 - "Divestitures" for additional information about the divestiture of USPS Pro Forma Results of Operations 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 intangible assets acquired include 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 intangible assets acquired include developed technology, customer relationships and trade names, which have estimated useful lives of 7 to 8 , 15 years and 3 to 5 years, respectively. |
Divestitures
Divestitures | 12 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Fiscal 2019 Separation of USPS On May 31, 2018, DXC completed the USPS Separation and Mergers to form Perspecta, an independent public company. Implementation of the USPS Separation and DXC's post-Separation relationship with Perspecta is governed by several agreements, including the following: • a Separation and Distribution Agreement; • an Employee Matters Agreement; • a Tax Matters Agreement; • an Intellectual Property Matters Agreement; • a Transition Services Agreement; • a Real Estate Matters Agreement; and, • a Non-US Agency Agreement. These agreements provide for the allocation of assets, employees, liabilities and obligations (including property, employee benefits, litigation, and tax-related assets and liabilities) between DXC and Perspecta attributable to periods prior to, at and after the USPS Separation. In addition, DXC and Perspecta have service and commercial contracts that generally extend through fiscal 2023. Pursuant to the Separation and Distribution Agreement, Perspecta made a net cash payment of $984 million to DXC, which reflects transaction consideration of $1,050 million less $66 million in principal amount of debt that was outstanding at a subsidiary of Perspecta. Perspecta financed the payment through borrowings under a new senior secured term loan facility. J. Michael Lawrie serves as DXC's Chairman and Chief Executive Officer and Paul N. Saleh serves as DXC's Chief Financial Officer. Effective as of the Separation, Mr. Lawrie also serves as Chairman of Perspecta and Mr. Saleh also serves as a Director of Perspecta. Due to Mr. Lawrie's and Mr. Saleh's leadership positions at DXC and Perspecta, Perspecta is considered a related party under ASC 850 "Related Party Disclosures" for periods subsequent to the Separation. Transactions with Perspecta were immaterial to the Company's financial statements for the fiscal year ended March 31, 2019 and balances due to and from Perspecta were immaterial to the Company's balance sheet as of March 31, 2019 . The following is a summary of the assets and liabilities distributed as part of the Separation of USPS on May 31, 2018: (in millions) As of May 31, 2018 Assets: Cash and cash equivalents $ 95 Receivables, net 458 Prepaid expenses 82 Other current assets 35 Total current assets of discontinued operations 670 Intangible assets, net (1) 870 Goodwill 2,029 Property and equipment, net 294 Other assets (1) 169 Total non-current assets of discontinued operations 3,362 Total assets $ 4,032 Liabilities: Short-term debt and current maturities of long-term debt $ 161 Accounts payable 165 Accrued payroll and related costs 17 Accrued expenses and other current liabilities 358 Deferred revenue and advance contract payments 53 Income tax payable 18 Total current liabilities of discontinued operations 772 Long-term debt, net of current maturities 1,320 Non-current deferred revenue 5 Non-current income tax liabilities and deferred tax liabilities 196 Other long-term liabilities 71 Total long-term liabilities of discontinued operations 1,592 Total liabilities $ 2,364 (1) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. The following is a summary of the assets and liabilities of USPS that have been classified as assets and liabilities of discontinued operations: (in millions) As of March 31, 2018 Assets: Cash and cash equivalents $ 68 Receivables, net 432 Prepaid expenses 75 Other current assets 6 Total current assets of discontinued operations 581 Intangible assets, net (1) 879 Goodwill 2,033 Property and equipment, net 283 Other assets (1) 168 Total non-current assets of discontinued operations 3,363 Total assets $ 3,944 Liabilities: Short-term debt and current maturities of long-term debt $ 155 Accounts payable 195 Accrued payroll and related costs 22 Accrued expenses and other current liabilities 346 Deferred revenue and advance contract payments 53 Income tax payable 18 Total current liabilities of discontinued operations 789 Long-term debt, net of current maturities 214 Non-current deferred revenue 7 Non-current income tax liabilities and deferred tax liabilities 163 Other long-term liabilities 72 Total long-term liabilities of discontinued operations 456 Total liabilities $ 1,245 (1) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. The following is a summary of the operating results of USPS which have been reflected within income from discontinued operations, net of tax: (in millions) Fiscal Year Ended March 31, 2019 (1) Fiscal Year Ended March 31, 2018 Revenue $ 431 $ 2,823 Costs of services 311 2,104 Selling, general and administrative 50 152 Depreciation and amortization 33 169 Restructuring costs 1 14 Interest expense 8 15 Other (income) expense, net (25 ) 2 Total costs and expenses 378 2,456 Total income from discontinued operations, before income taxes 53 367 Income tax expense 18 131 Total income from discontinued operations $ 35 $ 236 (1) Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the prior period. There was no gain or loss on disposition recognized as a result of the Separation. The following selected financial information of USPS is included in the statements of cash flows: (in millions) Fiscal Year Ended March 31, 2019 (1) Fiscal Year Ended March 31, 2018 Depreciation $ 16 $ 70 Amortization $ 17 $ 99 Capital expenditures $ — $ (18 ) Significant operating non-cash items: Gain on dispositions $ 24 $ — (1) Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the prior period. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Net income (loss) attributable to DXC common shareholders: From continuing operations $ 1,222 $ 1,515 $ (123 ) From discontinued operations 35 236 — $ 1,257 $ 1,751 $ (123 ) Common share information: Weighted average common shares outstanding for basic EPS 277.54 284.93 140.39 Dilutive effect of stock options and equity awards 3.89 4.84 — Weighted average common shares outstanding for diluted EPS 281.43 289.77 140.39 EPS: Basic Continuing operations $ 4.40 $ 5.32 $ (0.88 ) Discontinued operations 0.13 0.83 — Total $ 4.53 $ 6.15 $ (0.88 ) Diluted Continuing operations $ 4.35 $ 5.23 $ (0.88 ) Discontinued operations 0.12 0.81 — Total $ 4.47 $ 6.04 $ (0.88 ) 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 following table reflects awards excluded: Fiscal Years Ended March 31, 2019 March 31, 2018 March 31, 2017 Stock Options — — 3,317,041 RSUs 46,051 54,637 845,315 PSUs 25,086 96,029 1,540,152 |
Receivables
Receivables | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2019 March 31, 2018 Billed trade receivables $ 2,508 $ 3,110 Unbilled receivables 1,114 1,273 Other receivables 1,559 1,098 Total $ 5,181 $ 5,481 The following table summarizes activity for the allowance for doubtful accounts: As of and for Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Beginning balance $ 40 $ 26 $ 31 Additions charged to costs and expenses 19 45 10 Deductions (1) (4 ) (37 ) (13 ) Other (2) 5 6 (2 ) Ending balance $ 60 $ 40 $ 26 (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 The Company has a $600 million accounts receivable securitization facility (as amended or supplemented to date, the "Receivables Facility") with certain unaffiliated financial institutions (the "Purchasers") for the sale of commercial accounts receivable in the United States. Under the Receivables Facility, the Company and certain of its subsidiaries (the "Sellers") sell billed and unbilled accounts receivable to DXC Receivables LLC ("DXC Receivables"), a wholly owned bankruptcy-remote entity. DXC Receivables subsequently sells the purchased accounts receivable in their entirety to the Purchasers pursuant to a receivables purchase agreement. Sales of receivables by DXC 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 adoption of ASU 2016-15 described in Note 1 - " Summary of Significant Accounting Policies " requires cash receipts on the DPP to be classified as cash flows from investing activities instead of the Company's previous presentation as cash flows from operating activities. 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. As of March 31, 2019 , the total availability under the Receivables Facility was approximately $434 million and the drawn amount was $413 million . As of March 31, 2019 , the Company recorded a $21 million receivable within receivables, net because the amount of cash proceeds received by the Company under the Receivables Facility was less than the total availability. The Receivables Facility terminates on August 21, 2019, but provides for one or more optional one -year extensions, if agreed to by the Purchasers. The Company uses the proceeds from sales under the Receivables Facility for general corporate purposes. 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 the sale of receivables was recorded during fiscal 2019 and 2018. 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 DXC, 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 DXC 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, 2019 March 31, 2018 Beginning balance $ 233 $ 252 Transfers of receivables 5,435 2,192 Collections (4,393 ) (2,225 ) Change in funding availability (246 ) 30 Facility amendments (457 ) — Fair value adjustment 2 (16 ) Ending balance $ 574 $ 233 Federal Receivables Sales Facility Since July 14, 2017, the Company has given a parent guaranty in connection with a federal receivables sales facility with certain financial institutions, under which certain subsidiaries of the Company previously sold eligible federal government obligor receivables, including billed and certain unbilled receivables. In connection with the Separation, the sellers and servicers of the receivables sold under the Federal Receivables Sales Facility were divested and, effective May 31, 2018, the parent guaranty was terminated. The following table reflects activity of the Federal Receivables Sales Facility, prior to the Separation: (in millions) As of and for the Fiscal Year Ended March 31, 2019 (1) Transfers of receivables $ 464 Collections $ 521 Operating cash flow effect $ (57 ) (1) Results for the twelve months ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve month period. |
Fair Value
Fair Value | 12 Months Ended |
Mar. 31, 2019 | |
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 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, 2019 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 6 $ 6 $ — $ — Time deposits (1) 194 194 — — Other debt securities (2) 53 — 49 4 Deferred purchase price receivable 574 — — 574 Total assets $ 827 $ 200 $ 49 $ 578 Liabilities: Contingent consideration $ 41 $ — $ — $ 41 Total liabilities $ 41 $ — $ — $ 41 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 $38 million and $42 million , and unrealized gains of $11 million and $11 million , as of March 31, 2019 and March 31, 2018, respectively. The fair value of money market funds and money market deposit accounts, and time deposits, included in 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, included in other liabilities, is based on contractually defined targets of financial performance and other considerations. The increase in the fair value of contingent consideration during the twelve months ended March 31, 2019 was due to the acquisitions described in Note 2 - " Acquisitions " 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 due to their short-term nature. 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 $5.6 billion and $6.1 billion as of March 31, 2019 and March 31, 2018 , respectively, as compared with carrying value of $5.6 billion and $5.9 billion as of March 31, 2019 and March 31, 2018 , 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 of the fair value hierarchy. There were no significant impairments recorded during the fiscal periods covered by this report. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Mar. 31, 2019 | |
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 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. The Company does not use derivative instruments for trading or any speculative purpose. 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. During fiscal 2019, the Company terminated interest rate swap agreements with aggregate notional values of $375 million and fair values of $5 million and derecognized the relative derivative asset. The hedge gain of $5 million is recognized over the remaining original life of the swap against interest expense in the statements of operations. The Company had no interest rate swap agreements as of March 31, 2019 . As of March 31, 2018 , the Company had interest rate swap agreements with a total notional amount of $635 million . The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Indian Rupee denominated intercompany obligations and forecasted transactions. The notional amounts of foreign currency forward contracts designated as cash flow hedges as of March 31, 2019 and March 31, 2018 was $277 million and $634 million , respectively. As of March 31, 2019 , the related forecasted transactions extend through March 2020. For the fiscal years ended March 31, 2019 and March 31, 2018 , the Company performed an assessment at the inception of the cash flow hedge transactions and determined all critical terms of the hedging instruments and hedged items matched. The Company performs an assessment of critical terms on an ongoing basis throughout the hedging period. During the fiscal years ended March 31, 2019 and March 31, 2018 , the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur. As of March 31, 2019 , $1 million of the existing gain related to the cash flow hedge reported in AOCI is expected to be reclassified into earnings within the next 12 months. Net investment hedges The Company has designated certain foreign currency forward contracts as net investment hedges to protect its investment in certain foreign operations against adverse changes in exchange rates between the EUR and USD. As of March 31, 2019 , the notional amount of foreign currency forward contracts designated as net investment hedges was $1.7 billion . As of March 31, 2018 , the Company had no foreign currency forward contracts designated as net investment hedges. The pre-tax loss on derivatives designated for hedge accounting recognized in other comprehensive income was $1 million and in income from continuing operations was $10 million during the fiscal year ended March 31, 2019 . 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 contracts. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Interest rate swap agreements During fiscal 2019, the Company elected to de-designate its interest rate swap agreements. The Company derecognized the related derivative asset and recognized the amount in earnings. The Company had no interest rate swap agreements as of March 31, 2019 . Foreign currency forward contracts The Company manages the exposure to fluctuations in foreign currencies by using foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions. The notional amount of the foreign currency forward contracts outstanding as of March 31, 2019 and March 31, 2018 was $2.5 billion and $3.1 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, 2019 March 31, 2018 March 31, 2017 Foreign currency forward contracts Other expense (income), net $ 16 $ 118 $ (84 ) 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, 2019 March 31, 2018 Derivatives designated for hedge accounting: Interest rate swaps Other assets $ — $ 6 Foreign currency forward contracts (1) Other current assets 38 14 Total fair value of derivatives designated for hedge accounting $ 38 $ 20 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 5 $ 4 Total fair value of derivatives not designated for hedge accounting $ 5 $ 4 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2019 March 31, 2018 Derivatives designated for hedge accounting: Foreign currency forward contracts (1) Accrued expenses and other current liabilities $ 4 $ 3 Total fair value of derivatives designated for hedge accounting: $ 4 $ 3 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 9 $ 6 Total fair value of derivatives not designated for hedge accounting $ 9 $ 6 (1) Foreign currency forward contracts designated for hedge accounting includes designated cash flow hedges and net investment hedges. 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 which are classified 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. The amount subject to credit risk related to derivative instruments is generally limited to the amount, if any, by which a counterparty's obligations exceed the obligations of the Company with that counterparty. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. With respect to its foreign currency derivatives, as of March 31, 2019, there were five counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is approximately $29 million . 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. The potential effect of such netting arrangements on the Company's balance sheets is not material for the periods presented. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of (in millions) March 31, 2019 March 31, 2018 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,180 $ 2,464 Computers and related equipment 4,719 4,185 Furniture and other equipment 224 323 Construction in progress 14 77 7,137 7,049 Less: accumulated depreciation 3,958 3,686 Property and equipment, net $ 3,179 $ 3,363 Depreciation expense for fiscal 2019 , 2018 and 2017 was $820 million , $709 million and $338 million , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: As of March 31, 2019 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,864 $ 2,235 $ 1,629 Customer related intangible assets 5,389 1,139 4,250 Other intangible assets 85 25 60 Total intangible assets $ 9,338 $ 3,399 $ 5,939 As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,484 $ 1,918 $ 1,566 Customer related intangible assets 5,405 666 4,739 Other intangible assets 90 19 71 Total intangible assets $ 8,979 $ 2,603 $ 6,376 Transition and transformation contract costs as of March 31, 2018 have been reclassified from intangible assets, net to other assets within the balance sheets to conform to the current year presentation. The components of amortization expense were as follows: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Intangible asset amortization $ 890 $ 860 $ 230 Transition and transformation contract cost amortization 258 226 79 Total amortization expense $ 1,148 $ 1,086 $ 309 Estimated future amortization as of March 31, 2019 is as follows: Fiscal Year (in millions) 2020 $ 954 2021 $ 919 2022 $ 780 2023 $ 696 2024 $ 639 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018 , respectively: (in millions) GBS GIS Total Balance as of March 31, 2018, net 4,531 3,088 7,619 Acquisitions 228 — 228 Divestitures (12 ) — (12 ) Foreign currency translation (148 ) (81 ) (229 ) Goodwill, gross 5,300 5,068 10,368 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2019, net $ 4,599 $ 3,007 $ 7,606 (in millions) GBS GIS Total Balance as of March 31, 2017, net 1,470 385 1,855 Acquisitions 2,877 2,598 5,475 Foreign currency translation 184 105 289 Goodwill, gross 5,232 5,149 10,381 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2018, net $ 4,531 $ 3,088 $ 7,619 As a result of the USPS Separation on May 31, 2018, as more fully described in Note 3 - " Divestitures ", USPS is no longer a reportable segment. The fiscal 2019 and 2018 additions to goodwill were due 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 2019 The Company’s annual goodwill impairment analysis, which was performed as of July 1, 2018, did not result in an impairment charge. As of March 31, 2019, 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, 2019. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Domestic entities $ 511 $ 454 $ (157 ) Entities outside the United States 1,004 850 (17 ) Total $ 1,515 $ 1,304 $ (174 ) 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 did not become 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 for the Company's fiscal years ending March 31, 2019 and March 31, 2018, the Company has weighted corporate U.S. federal income tax rates of 21.0% and 31.5% , respectively. These income tax rates are 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 Staff Accounting Bulletin 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Act in the reporting period that includes the December 22, 2017 enactment date. SAB 118 allowed companies to provide provisional amounts during a measurement period that could not extend beyond one year from the Act's enactment date. In accordance with SAB 118, a company was required to reflect the income tax effects 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 was incomplete but the company was able to determine a reasonable estimate, it was required to record a provisional estimate in the financial statements. If a company could not determine a provisional estimate to be included in the financial statements, it was required to 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. The one year SAB 118 measurement period closed for the Company in the third quarter ended on December 31, 2018. As of December 31, 2018, the Company's assessment of the Act is complete. While the measurement period under SAB 118 is now closed, DXC may, in future periods, need to further refine the Company's U.S. federal and state calculations, related to the Act, as the taxing authorities provide additional guidance and clarification. The Company recorded the following amounts in accordance with SAB 118: Capital expensing: During fiscal 2018, the Company recorded a provisional benefit of $ 87 million , which was based on its intent to fully expense all qualifying expenses for U.S. federal tax purposes. This resulted in a decrease of approximately $ 87 million to the Company's current income taxes payable and a corresponding increase to its net deferred tax liabilities. During Q3 FY19, the Company finalized its estimate of the impact of the law change for purposes of SAB 118 and determined the incremental benefit of capital expensing was approximately $ 61 million . This resulted in a decrease of approximately $ 61 million to the Company's current income taxes payable and a corresponding increase to its net deferred tax liabilities. The Company filed its October 31, 2017 U.S federal tax return and several of its state tax returns in the periods ending September 30, 2018 and December 31, 2018, respectively. In the three months ended December 31, 2018 the Company completed all of the computations necessary, including an analysis of expenditures that qualify for immediate expensing, noting no measurement period adjustments were required. Executive compensation : As a result of changes made by the Act, starting with compensation paid in fiscal 2019, Section 162(m) will limit compensation deductions, 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. During fiscal 2018, the Company recorded a provisional income tax expense estimate of $ 2 million for executive compensation relating to the change in covered individuals. The Company completed an analysis of the binding contract requirement on the various compensation plans and determined the impact of the law change was not material. As part of the fiscal 2019 income tax provision, the Company estimated the Section 162(m) adjustment under the new guidance for compensation arrangements entered into after November 2, 2017. 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 certain deferred tax assets and deferred tax liabilities, the Company previously recorded a provisional deferred income tax discrete benefit of $338 million , resulting in a $338 million decrease in net deferred tax liabilities as of March 31, 2018. The Company filed its October 31, 2017 U.S. federal tax return in the period ending September 30, 2018, which impacted the provisional amount recorded. The adjustment was not material. The Company finalized its analysis of the scheduling of the deferred tax assets and liabilities and determined the impact was not material. No additional measurement period adjustments were recorded during the period ended December 31, 2018. 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 non-U.S. subsidiaries. To determine the amount of the transition tax, the Company determined, in addition to other factors, the amount of post-1986 E&P of the relevant non-U.S. subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings and the impact of various guidance including proposed regulations. The Company was able to calculate the transition tax and recorded a provisional transition tax obligation of $ 361 million in fiscal 2018. Due to the revised E&P and cash computations that were completed during the reporting periods, the Company recognized an additional measurement-period adjustment to the transition tax obligation of $25 million for the three months ended June 30, 2018. During the three month period ending December 31, 2018, the Company recorded a corresponding adjustment of $(69) million . The effect of the total measurement-period adjustments of $ (44) million for the nine months ended December 31, 2018 on the fiscal 2019 effective tax rate was (3.9)% . The transition tax, which has now been determined to be complete, resulted in recording a total transition tax obligation of $316 million , of which $ 324 million was recorded as income tax liability and $ (8) million recorded as a reduction in our unrecognized tax benefits. Indefinite reinvestment assertion: Beginning January 1, 2018, the Act provides a 100% deduction for dividends received from 10-percent owned non-U.S. corporations by U.S. corporate shareholders, subject to a one-year holding period. Although such dividend income is now generally 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. During fiscal 2018, the Company recorded a provisional estimate for those subsidiaries for which DXC was able to make a reasonable estimate of the tax effects of such repatriation for withholding taxes, state taxes, and India dividend distribution tax of $12 million , $7 million and $80 million , respectively. For the three months ended December 31, 2018, the Company recognized an additional measurement-period adjustment of $9 million for state tax purposes recorded to discrete income tax expense. The Company completed its analysis of the non-U.S. tax rules for certain non-U.S. subsidiaries for U.S. federal and state tax purposes for all material provisional amounts during the measurement-period. Global intangible low taxed income (GILTI): The Company continues to evaluate the impact of the GILTI provisions under the Act, which are complex and subject to continuing regulatory interpretation by the IRS. The Company is required to make an accounting policy election 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 the Company’s measurement of its deferred taxes (the “deferred method”). The Company determined that it will account for the new GILTI tax rules under the period cost method. The income tax expense (benefit) on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Current: Federal $ (50 ) $ 392 $ (32 ) State 42 16 14 Foreign 218 247 36 210 655 18 Deferred: Federal 95 (899 ) (7 ) State 23 (59 ) (1 ) Foreign (40 ) 61 (84 ) 78 (897 ) (92 ) Total income tax expense (benefit) $ 288 $ (242 ) $ (74 ) The current federal (benefit) and tax expense for fiscal years 2019 and 2018 includes a $ (44) million transition tax benefit and $332 million transition tax expense, respectively. The current expense (benefit) for fiscal 2019 , 2018 and 2017 , includes interest and penalties of $1 million , $2 million and $(9) million , respectively, for uncertain tax positions. The Act implemented a mandatory one-time deemed repatriation tax on previously untaxed accumulated and current earnings and profits of certain of the Company’s non-U.S. subsidiaries, and requires current income inclusions for global intangible low taxed income. As a result of these tax law changes, the HPES Merger, and changes in U.S. cash requirements, the Company changed its permanent reinvestment assertion in fiscal 2018 on the remaining foreign subsidiaries and determined we will no longer consider current and accumulated earnings for all non-U.S. subsidiaries permanently reinvested, except for current year India earnings. We expect a significant portion of the cash held by our foreign subsidiaries will no longer be subject to U.S federal income tax upon repatriation to the U.S.; however, a portion of this cash may still be subject to foreign and U.S. state tax consequences when remitted. In accordance with the prior fiscal year change in our permanent reinvestment assertion, a deferred tax liability of $554 million previously recorded for U.S. income taxes based on the estimated historical taxable earnings of the HPES foreign subsidiaries was released. The Company had previously recorded an estimated liability of $46 million for the India dividend distribution tax based on estimated historical taxable earnings of the HPES India subsidiary. Due to a change in cash requirements of the U.S. parent and the HPES India subsidiary, the Company changed its reinvestment assertion relating to certain India earnings and reversed this estimated dividend distribution tax liability in the current period. As of March 31, 2019, the Company recorded foreign withholding taxes and state taxes of $17 million and $11 million , respectively, for the tax effects of this future cash repatriation. 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 receivable of $20 million due to $49 million of tax indemnification receivable related to uncertain tax positions net of related deferred tax benefits, $133 million of tax indemnification receivable related to other tax payables and $162 million of tax indemnification payable related to other tax receivables. In connection with the USPS Separation, the Company entered into a tax matters agreement with Perspecta. Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the USPS Separation. Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE. The Company remains liable to HPE for tax receivables and refunds which it receives from Perspecta related to pre-HPES Merger periods that were transferred to Perspecta. Pursuant to the tax matters agreement, the Company recorded a net receivable of $ 24 million due to $ 94 million of tax indemnification receivable related to government tax refunds owed to Perspecta and $ 70 million of tax indemnification payable related to government tax payments due from Perspecta. The major elements contributing to the difference between the U.S. federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below. Due to the Company's fiscal year, the U.S. federal weighted statutory tax rate for the fiscal years ended March 31, 2019 and March 31, 2018 were of 21.0% and 31.5% , respectively. Fiscal Years Ended March 31, 2019 March 31, 2018 March 31, 2017 Statutory rate 21.0 % 31.5 % (35.0 )% State income tax, net of federal tax 3.2 2.0 (4.0 ) United States Tax Reform (3.4 ) (40.6 ) — Change in Indefinite Reinvestment Assertion (3.1 ) 3.3 — Loss of attributes due to merger — 5.1 — Change in uncertain tax positions (1.5 ) (0.2 ) (3.4 ) Foreign tax rate differential (18.4 ) (5.7 ) (40.0 ) Capitalized transaction costs 0.1 1.0 12.1 Change in valuation allowances 16.9 (7.7 ) 34.3 Excess tax benefits for stock compensation (1.1 ) (3.0 ) (11.3 ) Prepaid tax asset amortization — 0.3 7.1 Income Tax and Foreign Tax Credits (0.6 ) (7.6 ) (2.0 ) U.S. Tax on Foreign Income 2.4 2.1 (2.6 ) Withholding Taxes 3.5 2.3 (1.1 ) Other items, net — (1.4 ) 3.4 Effective tax rate 19.0 % (18.6 )% (42.5 )% In fiscal 2019, the ETR was primarily impacted by: • Local tax losses on investments in Luxembourg that decreased the foreign tax rate differential and decreased the ETR by $ 360 million and 23.7% , respectively, with an offsetting increase in the ETR due to an increase in the valuation allowance of the same amount. • A change in the net valuation allowance on certain deferred tax assets, primarily in Luxembourg, Germany, Spain, UK, and Switzerland, which increased income tax expense and increased the ETR by $ 256 million and 16.9% , respectively. • A decrease in the transition tax liability and a change in tax accounting method for deferred revenue, which decreased income tax expense and decreased the ETR by $ 66 million and 4.3% , respectively. In fiscal 2018, the ETR was primarily impacted by: • Due to the Company's change in repatriation policy, the reversal 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 42.5% , respectively. • The accrual of the one-time transition tax imposed by the Act on estimated unremitted foreign earnings, which decreased the income tax benefit and increased the ETR by $361 million and 27.7% , 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 25.9% , respectively. In fiscal 2017, the ETR was primarily impacted by: • A change in the valuation allowance that primarily consists of an aggregate income tax expense 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. This was partially 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 tax deductible, 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. The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2019 March 31, 2018 Deferred tax assets Employee benefits $ 79 $ 156 Tax loss/credit carryforwards 1,917 1,665 Accrued interest 16 18 Contract accounting 130 134 Other assets 139 232 Total deferred tax assets 2,281 2,205 Valuation allowance (1,575 ) (1,440 ) Net deferred tax assets 706 765 Deferred tax liabilities Depreciation and amortization (994 ) (888 ) Investment basis differences (61 ) (62 ) Other liabilities (63 ) (94 ) Total deferred tax liabilities (1,118 ) (1,044 ) Total net deferred tax assets (liabilities) $ (412 ) $ (279 ) Income tax related assets are included in the accompanying balance sheets as follows: As of (in millions) March 31, 2019 March 31, 2018 Current: Income tax receivables and prepaid taxes $ 113 $ 154 $ 113 $ 154 Non-current: Income taxes receivable and prepaid taxes $ 137 $ 30 Deferred tax assets 355 373 $ 492 $ 403 Total $ 605 $ 557 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2019 March 31, 2018 Current: Liability for uncertain tax positions $ — $ (15 ) Income taxes payable (208 ) (112 ) $ (208 ) $ (127 ) Non-current: Deferred taxes (767 ) (652 ) Income taxes payable (201 ) (278 ) Liability for uncertain tax positions (216 ) (236 ) $ (1,184 ) $ (1,166 ) Total $ (1,392 ) $ (1,293 ) 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 $1.6 billion as of March 31, 2019 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. 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. As of March 31, 2018, DXC's net deferred tax assets in certain DXC German entities were primarily the result of net operating loss carryforwards, pension, restructuring, and other miscellaneous accruals. A full valuation allowance was recorded against these net deferred tax assets as of that reporting date. For the period ended December 31, 2018, management determined that the positive evidence, including the duration of the current profitability due to realization of cost synergies relating to the HPES merger, a legal entity restructuring allowing the future utilization of net operating loss carryforwards and the nonrecurring nature of the factors that primarily drove historical losses outweighs the negative evidence of a three-year cumulative loss. Therefore, as of December 31, 2018, management had a change in judgment and concluded that it is now more likely than not that the net deferred tax assets in these DXC German entities will be fully utilized. As a result, we recorded a valuation allowance release of $ 113 million . As of March 31, 2019, management had no change in our conclusions regarding the positive and negative evidence and the future realizability of these DXC German entities' deferred tax assets. The net increase in the valuation allowance of $135 million in fiscal 2019 , is primarily due to the increase in Luxembourg tax losses, an adjustment for currency translation of $122 million primarily in Luxembourg, partially offset by a valuation allowance release with respect to certain deferred tax assets of German entities. The following table provides information on the Company's various tax carryforwards: As of March 31, 2019 As of March 31, 2018 (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 $ 25 $ — $ 25 2037 $ 41 $ — $ 41 2037 State $ 845 $ 9 $ 836 2039 $ 873 $ — $ 873 2038 Foreign $ 7,595 $ 7,292 $ 303 2039 $ 6,522 $ 6,287 $ 235 2038 Tax credit carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ 23 $ 7 $ 16 2039 $ 28 $ 7 $ 21 2038 Foreign $ 18 $ — $ 18 2020 $ 21 $ — $ 21 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 236 $ 211 $ 25 2023 $ 240 $ 193 $ 47 2023 The Company is currently the beneficiary of tax holiday incentives in India, which expire in various fiscal years through 2026 , and was a beneficiary of Malaysian tax holiday incentives in fiscal 2018 and 2017. As a result of these tax holiday incentives, the Company recorded an income tax benefit of approximately $2 million , $5 million and $1 million , during fiscal 2019 , 2018 and 2017 , respectively. The per share effects were $0.01 , $0.02 and $0.01 , for fiscal 2019 , 2018 and 2017 , respectively. The Company accounts for income tax uncertainties in accordance with ASC 740 Income Taxes, 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, 2019 March 31, 2018 Tax $ 165 $ 219 Interest 41 40 Penalties 25 25 Net of tax attributes (15 ) (33 ) Total $ 216 $ 251 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, 2019 March 31, 2018 March 31, 2017 Balance at beginning of fiscal year $ 219 $ 192 $ 180 Gross increases related to prior year tax positions 4 10 14 Gross decreases related to prior year tax positions (27 ) (12 ) (12 ) Gross increases related to current year tax positions — 7 10 Settlements and statute of limitation expirations (23 ) (19 ) (7 ) Acquisitions — 39 6 Foreign exchange and others (8 ) 2 1 Balance at end of fiscal year $ 165 $ 219 $ 192 The Company’s liability for uncertain tax positions at March 31, 2019 , March 31, 2018 and March 31, 2017 , includes $138 million , $170 million and $149 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, 2019, the Company had a net increase in interest expense of $2 million ( $1 million net of tax) and a net decrease in accrued expense for penalties of $1 million and, as of March 31, 2019, recognized a liability for interest of $41 million ( $36 million net of tax) and penalties of $25 million . During the year ended March 31, 2018, the Company had a net increase in interest of $2 million ( $2 million net of tax) and no net increase in accrued expense for penalties, and as of March 31, 2018, has recognized a liability for interest of $40 million ( $36 million net of tax) and penalties of $25 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, 2019 March 31, 2018 March 31, 2017 (in millions) Increase (Decrease) Interest $ 2 $ 2 $ (8 ) Interest, net of tax $ 1 $ 2 $ (9 ) Accrued penalties $ (1 ) $ — $ — Liability for interest $ 41 $ 40 $ 25 Liability for interest, net of tax $ 36 $ 36 $ 20 Liability for penalties $ 25 $ 25 $ 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 2008 and forward United States – Various States 2008 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 2017. 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 November 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 2017 federal income tax returns. The Company has not received any proposed adjustments for these tax years. The Company continues to believe that its tax positions are more likely than not sustainable and that the Company will ultimately prevail. The Company now expects to reach a resolution for all years no earlier than fiscal 2021. 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 positions are not upheld. Conversely, the Company could settle positions with the tax authorities for amounts lower than those that have been accrued or extinguish a position though payment. The Company believes the outcomes which are reasonably possible within the next twelve months may result in a reduction in liability for uncertain tax positions of $9 million , excluding interest, penalties, and tax carryforwards. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 Short-term debt and current maturities of long-term debt Euro-denominated commercial paper (1) (0.1) - 0.02% (2) 2020 $ 694 $ 863 Current maturities of long-term debt Various 2020 766 439 Current maturities of capitalized lease liabilities 1.0% - 12.0% 2020 482 616 Short-term debt and current maturities of long-term debt $ 1,942 $ 1,918 Long-term debt, net of current maturities GBP term loan 1.3% -1.5% (3) 2019 $ — $ 260 EUR term loan 1.75% (4) 2019 — 493 AUD term loan 2.7% - 2.9% (5) 2021 567 — AUD term loan 2.9% - 3.3% (6) 2022 — 210 GBP term loan 1.60% (7) 2022 583 — EUR term loan 0.90% (8) 2022 — 187 USD term loan 3.1% - 3.3% (9) 2022 — 899 $500 million Senior notes 2.875% 2020 502 502 $500 million Senior notes 3.0% - 3.8% (10) 2021 498 646 $274 million Senior notes 4.45% 2023 277 278 $171 million Senior notes 4.45% 2023 172 173 $500 million Senior notes 4.25% 2025 506 507 £ 250 million Senior notes 2.75% 2025 322 346 €650 million Senior notes 1.75% 2026 725 — $500 million Senior notes 4.75% 2028 508 509 $234 million Senior notes 7.45% 2030 273 277 Lease credit facility 2.2% - 3.5% 2020 - 2023 25 46 Capitalized lease liabilities 1.0% - 12.0% 2020 - 2024 1,127 1,235 Borrowings for assets acquired under long-term financing 2.3% - 4.5% 2020 - 2024 462 405 Mandatorily redeemable preferred stock outstanding 6.00% 2023 62 61 Other borrowings 0.5% - 7.4% 2020 - 2022 109 113 Long-term debt 6,718 7,147 Less: current maturities 1,248 1,055 Long-term debt, net of current maturities $ 5,470 $ 6,092 (1) At DXC's option, DXC can borrow up to a maximum of €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) Variable interest rate equal to the bank bill swap bid rate for a one-, two-, three- or six-month interest period plus 0.60% to 0.95% based on the published credit ratings of DXC. (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% to 1.45% based on the published credit ratings of DXC. (7) Three-month LIBOR plus 0.80% . (8) 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. (9) 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. (10) Three-month LIBOR plus 0.95% . Senior Notes and Term Loans Interest on the Company's term loans is payable monthly or quarterly in arrears at the election of the borrowers. 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 and €650 million Senior Notes due 2026 which is payable annually in arrears, and interest on the $500 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. 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 was $2.2 billion with accumulated amortization of $1.0 billion as of March 31, 2019 , and $3.5 billion with accumulated amortization of $2.3 billion as of March 31, 2018 . The future minimum lease payments required to be made under the capital leases as of March 31, 2019 , are as follows: Fiscal Year (in millions) 2020 $ 509 2021 310 2022 212 2023 128 2024 36 Thereafter — Total minimum lease payments 1,195 Less: Amount representing interest and executory costs (68 ) Present value of net minimum lease payments 1,127 Less: Current maturities of capital lease obligations (482 ) Long-term capitalized lease liabilities $ 645 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, 2019 , are as follows: Fiscal Year (in millions) 2020 $ 766 2021 1,221 2022 722 2023 547 2024 21 Thereafter 2,314 Total $ 5,591 |
Pension and Other Benefit Plans
Pension and Other Benefit Plans | 12 Months Ended |
Mar. 31, 2019 | |
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 $3 million , $13 million and $1 million , for fiscal 2019 , 2018 and 2017 , respectively, as additional contractual termination benefits for certain employees are part of the Company's 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, 2019 March 31, 2018 Projected benefit obligation at beginning of year $ 11,384 $ 3,297 Benefit obligation assumed as a result of the HPES merger — 7,351 Service cost 88 121 Interest cost 253 249 Plan participants’ contributions 13 16 Amendments 27 (44 ) Business/contract acquisitions/divestitures — 69 Contractual termination benefits 3 13 Settlement/curtailment (49 ) (65 ) Actuarial loss (gain) 286 (332 ) Benefits paid (344 ) (447 ) Foreign currency exchange rate changes (818 ) 1,170 Other 173 (14 ) Projected benefit obligation at end of year $ 11,016 $ 11,384 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2019 March 31, 2018 Discount rate 2.4 % 2.5 % Rates of increase in compensation levels 2.0 % 2.0 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2019 March 31, 2018 Fair value of plan assets at beginning of year $ 11,574 $ 2,998 Assets assumed as a result of the HPES merger — 7,411 Actual return on plan assets 700 371 Employer contribution 78 83 Plan participants’ contributions 13 16 Benefits paid (344 ) (447 ) Business/contract acquisitions/divestitures — (2 ) Contractual termination benefits 17 4 Plan settlement (38 ) (22 ) Foreign currency exchange rate changes (837 ) 1,176 Other 180 (14 ) Fair value of plan assets at end of year $ 11,343 $ 11,574 Funded status at end of year $ 327 $ 190 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 limited partnership 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 during fiscal 2017 as other long-term liabilities on the Company's balance sheet. Selected Information As of (in millions) March 31, 2019 March 31, 2018 Other assets $ 1,157 $ 1,118 Accrued expenses and other current liabilities (20 ) (28 ) Non-current pension obligations (790 ) (879 ) Other long-term liabilities - OPEB (20 ) (21 ) Net amount recorded $ 327 $ 190 Accumulated benefit obligation $ 10,893 $ 11,241 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, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Projected benefit obligation $ 2,329 $ 2,488 $ 2,070 $ 2,250 Accumulated benefit obligation $ 2,230 $ 2,363 $ 2,004 $ 2,162 Fair value of plan assets $ 1,494 $ 1,552 $ 1,255 $ 1,338 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Service cost $ 88 $ 121 $ 23 Interest cost 253 249 82 Expected return on assets (570 ) (534 ) (161 ) Amortization of transition obligation — 1 1 Amortization of prior service costs (15 ) (18 ) (17 ) Contractual termination benefit 3 13 1 Settlement/curtailment gain (10 ) (42 ) — Recognition of actuarial loss (gain) 153 (178 ) 87 Net periodic pension (income) expense $ (98 ) $ (388 ) $ 16 The service cost component of net periodic pension (income) expense is presented in cost of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net in the Company’s statements of operations. See Note 1 - "Summary of Significant Accounting Policies," for further discussion of the Company's adoption of ASU 2017-07 and its impact on the presentation of net periodic pension costs. Estimated prior service credit of $9 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, 2019 March 31, 2018 March 31, 2017 Discount or settlement rates 2.5 % 2.5 % 3.1 % Expected long-term rates of return on assets 5.3 % 4.9 % 6.3 % Rates of increase in compensation levels 2.1 % 2.7 % 2.6 % The following is a summary of amounts in AOCI, before tax effects: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 Prior service cost $ (195 ) $ (298 ) Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2020 $ 82 Benefit Payments: 2020 $ 319 2021 305 2022 358 2023 300 2024 302 2025 and thereafter 1,610 Total $ 3,194 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, 2019 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ 1 $ — $ — $ 1 Global Stocks 10 13 — 23 Global/International Equity commingled funds 399 2,156 — 2,555 Global equity mutual funds 49 325 — 374 U.S./North American Equity commingled funds 1 10 — 11 Fixed Income: Non-U.S. Government funds 215 29 — 244 Fixed income commingled funds 6 4,807 — 4,813 Fixed income mutual funds 2 1 — 3 Corporate bonds — 2 — 2 Alternatives: Other Alternatives (1) 6 1,880 982 2,868 Hedge Funds (2) — 8 — 8 Other Assets — — 36 36 Insurance contracts — 108 14 122 Cash and cash equivalents 99 184 — 283 Totals $ 788 $ 9,523 $ 1,032 $ 11,343 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 (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, 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 Actual return on plan assets held at the reporting date (13 ) Purchases, sales and settlements 217 Transfers in and / or out of Level 3 5 Changes due to exchange rates (64 ) Balance as of March 31, 2019 $ 1,032 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 in the United Kingdom and certain U.K. 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, 2019 March 31, 2018 Equity securities 26 % 25 % Debt securities 45 % 53 % Alternatives 25 % 18 % Cash and other 4 % 4 % 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. U.K. Pension Equalization Ruling On October 26, 2018 the High Court of Justice in the United Kingdom (the "High Court") issued a ruling related to the equalization of benefits payable to men and women for the effect of guaranteed minimum pensions under U.K. defined benefit pension plans. As a result of this ruling, the Company estimated the impact of retroactively increasing benefits in its U.K. plans in accordance with the High Court ruling. The Company treated the additional benefits as a prior service cost which resulted in an increase to its projected benefit obligation and accumulated other comprehensive loss of $28 million . The Company will amortize this cost over the average remaining life expectancy of the U.K. participants. Given the immaterial effect on the U.K. plan's projected benefit, an interim remeasurement was not performed. 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 2019 , 2018 and 2017 , the Company contributed $219 million , $245 million and $124 million , respectively, to its defined contribution plans. As of March 31, 2019 , plan assets included 3,737,298 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 $59 million as of March 31, 2019 and $65 million as of March 31, 2018 . The Company’s expense under the Plan totaled $2 million , $4 million and $5 million , for fiscal 2019 , 2018 and 2017 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2019 | |
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. On November 8, 2018, DXC announced that its board of directors approved an incremental $2.0 billion share repurchase authorization. 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. The details of shares repurchased are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount (In millions) 2019 19,342,586 $69.20 $ 1,339 2018 1,537,782 $89.41 $ 137 2017 — — — Treasury Stock Transactions In fiscal 2019 , 2018 and 2017 the Company accepted 42,008 , 332,558 and 72,231 shares of its common stock, respectively, in lieu of cash in connection with the exercise of stock options. In fiscal 2019 , 2018 and 2017 , the Company accepted 729,703 , 684,389 and 195,201 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 1,788,658 treasury shares as of March 31, 2019 . 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 2019 $ 0.76 $ 209 $ 53 Fiscal 2018 $ 0.72 $ 209 $ 51 Fiscal 2017 $ 0.56 $ 80 $ 20 Accumulated Other Comprehensive (Loss) Income 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 (Loss) Income 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) income, 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) income, net of taxes — — — 25 25 Balance at March 31, 2018 $ (261 ) $ 9 $ 9 $ 301 $ 58 Current-period other comprehensive loss (256 ) (22 ) — (21 ) (299 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes — 10 — (13 ) (3 ) Balance at March 31, 2019 $ (517 ) $ (3 ) $ 9 $ 267 $ (244 ) |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Equity Plans As a result of the Separation of USPS, shared-based awards issued by the Company were modified. The number of stock options and exercise price were adjusted to generally preserve the intrinsic value immediately prior to the Separation. There was no incremental share-based compensation expense recognized as a result of the modification of the awards. 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 unvested awards became vested on April 1, 2017 and $26 million of incremental stock compensation expense was recognized. CSC options granted in fiscal 2017 vested 33% upon the HPES Merger; 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 ("SARs"), restricted stock, RSUs (including 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 terminated earlier 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. 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 3 years . The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified financial performance criteria over a 3 -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 up to 25% of the shares granted to be earned after the first and second fiscal years if certain of the Company's performance targets are met early, subject to vesting based on the participant's continued employment through the end of the 3 -year performance period. The terms of the DXC Director Equity Plan allow DXC to grant RSU awards to non-employee directors of DXC. Such RSU awards vest in full at the earlier of (i) the first anniversary of the grant date or (ii) the next annual meeting date, and are automatically redeemed for DXC common stock and dividend equivalents either at that time or, if an RSU deferral election form is submitted, upon the date or event elected by the director. Distributions made upon a director’s separation from the Board may occur in either a lump sum or in annual installments over periods of 5 , 10 , or 15 years , per the director’s election. In addition, RSUs vest in full upon a change in control of DXC. 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 13,137 shares purchased under this plan during fiscal 2019 . 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, 2019 Reserved for issuance Available for future grants DXC Employee Equity Plan 34,200,000 21,832,963 DXC Director Equity Plan 230,000 104,310 DXC Share Purchase Plan 250,000 235,389 Total 34,680,000 22,172,662 The Company recognized share-based compensation expense for fiscal 2019 , 2018 and 2017 as follows: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Total share-based compensation cost $ 74 $ 93 $ 75 Related income tax benefit $ 15 $ 21 $ 25 Total intrinsic value of options exercised $ 44 $ 136 $ 73 Tax benefits from exercised stock options and awards $ 39 $ 84 $ 34 As of March 31, 2019 , total unrecognized compensation expense related to unvested DXC stock options and unvested DXC RSUs, net of expected forfeitures was less than $1 million and $111 million , respectively. The unrecognized compensation expense for unvested RSUs is expected to be recognized over a weighted-average period of 1.87 years . 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 was $13.00 per share. There were no stock options granted during fiscal 2018 and 2019. In calculating the compensation expense for its stock incentive plans, the Company used the following weighted average assumptions: Fiscal Years Ended March 31, 2017 Risk-free interest rate 1.60 % Expected volatility 29 % Expected term (in years) 6.09 Dividend yield 1.56 % 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 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 HPE options converted to DXC options at HPES Merger 2,654,970 $ 46.56 CSC options converted to RSUs due to HPE 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 (1) 2,933,501 $ 32.54 5.24 $ 185 Issued due to Separation modification 400,170 $ 31.72 Exercised (969,103 ) $ 37.33 $ 44 Canceled/Forfeited (14,607 ) $ 48.33 Expired (31,193 ) $ 25.03 Outstanding as of March 31, 2019 2,318,768 $ 30.40 4.80 $ 79 Vested and expected to vest in the future as of March 31, 2019 2,318,406 $ 30.40 4.80 $ 79 Exercisable as of March 31, 2019 2,314,206 $ 30.35 4.80 $ 79 (1) The amount of the weighted average exercise price per share has been revised to reflect the impact of the Separation. As of March 31, 2019 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 $8.96 - $24.47 652,585 $ 18.88 3.44 652,585 $ 18.88 $25.14 - $41.92 1,120,399 $ 29.68 4.83 1,120,399 $ 29.68 $42.05 - $62.44 545,784 $ 45.64 6.35 541,222 $ 45.55 2,318,768 2,314,206 The total fair value of stock options vested during fiscal 2019 , 2018 and 2017 was $0 million , $22 million and $8 million , respectively. The cash received from stock options exercised during fiscal 2019 , 2018 and 2017 was $34 million , $98 million and $54 million , respectively. 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. Performance Stock Units 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 and PSUs granted under the stock incentive plans was as follows: Number of Weighted Average Grant Date Fair Value 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 (1) 3,985,616 $ 47.25 Granted 1,136,002 $ 77.10 Issued due to Separation modification 649,649 $ 51.98 Settled (2,207,467 ) $ 33.05 Canceled/Forfeited (754,025 ) $ 62.01 Outstanding as of March 31, 2019 2,809,775 $ 67.27 (1) The amount of the weighted average fair value per share has been revised to reflect the impact of the USPS Separation. 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, 2019 , 104,310 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 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 (1) 66,386 $ 37.26 Granted 19,200 $ 87.88 Issued due to Separation modification 10,488 $ 37.69 Settled (20,324 ) $ 51.59 Canceled/Forfeited — $ — Outstanding as of March 31, 2019 75,750 $ 46.31 (1) The amount of the weighted average fair value per share has been revised to reflect the impact of the USPS Separation. |
Cash Flows
Cash Flows | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Cash paid for: Interest $ 308 $ 288 $ 103 Taxes on income, net of refunds (1) $ 197 $ 376 $ 63 Non-cash activities: Operating: Prepaid assets acquired under long-term financing $ 48 $ 209 $ — Investing: Capital expenditures in accounts payable and accrued expenses $ 45 $ 46 $ 43 Capital expenditures through capital lease obligations $ 668 $ 664 $ 52 Assets acquired under long-term financing $ 200 $ 238 $ 87 Increase in deferred purchase price receivable $ 1,489 $ 665 $ 595 Contingent consideration $ 41 $ — $ — Financing: Dividends declared but not yet paid $ 53 $ 51 $ 20 Stock issued for the acquisition of HPES $ — $ 9,850 $ — (1) Income tax refunds were $174 million , $38 million , and $23 million for fiscal 2019 , 2018 , and 2017 , respectively. |
Other Income
Other Income | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income The following table summarizes components of other income, net: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Non-service cost components of net periodic pension income $ (182 ) $ (509 ) $ (7 ) Foreign currency loss (gain) 31 (71 ) (8 ) Other gain (155 ) (13 ) (2 ) Totals $ (306 ) $ (593 ) $ (17 ) Non-service cost components of net periodic pension income expense were reclassified from costs of services and selling, general and administrative to other income expense, net in the statements of operations upon adoption of ASU2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". See Note 1 - Summary of Significant Accounting Policies for more information. Foreign currency loss (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 for the fiscal year ended March 31, 2019 primarily comprises gain on sale of non-operating assets and for the fiscal year ended March 31, 2018 consists of investment income. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2019 | |
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, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. DXC's chief operating decision maker ("CODM"), the chief executive officer, obtains, reviews, and manages the Company’s financial performance based on these segments. The CODM uses these results, in part, to evaluate the performance of, and allocate resources to, each of the segments. As a result of the Separation, USPS is no longer included as a reportable segment and its results have been reclassified to discontinued operations, net of taxes, for all periods presented. See Note 3 - " Divestitures ." DXC now operates in two reportable segments as described below: 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. Segment Measures The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2019 Revenues $ 8,684 $ 12,069 $ 20,753 $ — $ 20,753 Segment Profit $ 1,645 $ 1,911 $ 3,556 $ (287 ) $ 3,269 Depreciation and amortization (1) $ 90 $ 1,212 $ 1,302 $ 127 $ 1,429 Fiscal Year Ended March 31, 2018 Revenues $ 9,254 $ 12,479 $ 21,733 $ — $ 21,733 Segment Profit $ 1,525 $ 1,643 $ 3,168 $ (179 ) $ 2,989 Depreciation and amortization (1) $ 99 $ 1,078 $ 1,177 $ 92 $ 1,269 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 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $539 million , $526 million , and $77 million for fiscal 2019 , 2018 , and 2017 , 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 cost of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on DXC's foreign currency denominated assets and liabilities and the related economic hedges). The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated costs include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets. Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Profit Total profit for reportable segments $ 3,556 $ 3,168 $ 798 All other loss (287 ) (179 ) (180 ) Interest income 128 89 35 Interest expense (334 ) (320 ) (117 ) Restructuring costs (465 ) (789 ) (238 ) Transaction, separation, and integration-related costs (401 ) (359 ) (308 ) Amortization of acquired intangible assets (539 ) (526 ) (77 ) Pension and OPEB actuarial and settlement (losses) gains (143 ) 220 (87 ) Income (loss) from continuing operations, before taxes $ 1,515 $ 1,304 $ (174 ) 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. Geographic Information See Note 19 - " Revenue " for the Company's revenue by geography. Property and equipment, net, which is based on the physical location of the assets, was as follows: As of March 31, 2019 March 31, 2018 March 31, 2017 United States 1,352 1,270 389 United Kingdom 512 535 235 Australia 144 191 58 Other Europe 553 465 134 Other International 618 902 87 Total Property and Equipment, net 3,179 3,363 903 No single customer exceeded 10% of the Company’s revenues during fiscal 2019 , fiscal 2018 or fiscal 2017 . |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition The following table presents DXC's revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services: Twelve Months Ended (in millions) March 31, 2019 March 31, 2018 (1) March 31, 2017 (1) United States $ 7,677 $ 8,015 $ 2,986 United Kingdom 3,175 3,392 1,482 Australia 1,582 1,694 921 Other Europe 5,294 5,409 1,594 Other International 3,025 3,223 624 Total Revenues $ 20,753 $ 21,733 $ 7,607 (1) Prior period amounts have not been recast under the modified retrospective transition method. The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 18 - " Segment and Geographic Information " for the Company’s segment disclosures. Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that has not materialized and adjustments for currency. As of March 31, 2019 , approximately $28.9 billion of revenue is expected to be recognized from remaining performance obligations. The Company expects to recognize revenue on approximately 40% of these remaining performance obligations in Fiscal 2020, with the remainder of the balance recognized thereafter. Contract Balances The following table provides information about the balances of the Company's trade receivables and contract assets and contract liabilities: As of (in millions) March 31, 2019 April 1, 2018 Trade receivables, net $ 3,232 $ 3,937 Contract assets $ 390 $ 444 Contract liabilities $ 1,886 $ 2,053 Change in contract liabilities were as follows: (in millions) Twelve Months Ended March 31, 2019 ASC 605 Balance, beginning of period $ 2,434 Adjustment related to Topic 606 adoption (381 ) ASC 606 Balance, beginning of period 2,053 Deferred revenue 2,681 Recognition of deferred revenue (2,664 ) Currency translation adjustment (167 ) Other (17 ) Balance, end of period $ 1,886 The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract: (in millions) As of March 31, 2019 Capitalized sales commission cost (1) $ 228 Transition and transformation contract costs, net (2) $ 966 (1) Capitalized sales commission costs are included within other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019 , amortization expense of $62 million related to the capitalized sales commission assets is included in selling, general, and administrative expenses in the accompanying statements of operations. (2) Transition and transformation contract costs, net reflect the Company’s setup costs incurred upon initiation of an outsourcing contract that are classified as other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019 , amortization expense of $258 million is included within depreciation and amortization in the accompanying statements of operations. Financial Statement Impact The impact of adoption of ASC 606 on the selected captions of the Company's statements of operations and balance sheets was as follows: Statement of Operations (Selected Captions) Twelve Months Ended March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues $ 20,753 $ 20,723 $ 30 Costs of services $ 14,946 $ 14,944 $ 2 Selling, general and administrative $ 1,959 $ 2,032 $ (73 ) Interest income $ (128 ) $ (141 ) $ (13 ) Income tax expense $ 288 $ 266 $ 22 Net income attributable to DXC common stockholders $ 1,257 $ 1,191 $ 66 Balance Sheet (Selected Captions) As of March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets: Receivables and contract assets, net of allowance for doubtful accounts $ 5,181 $ 5,199 $ (18 ) Other current assets $ 359 $ 411 $ (52 ) Deferred income taxes, net $ 355 $ 376 $ (21 ) Other assets $ 3,429 $ 3,451 $ (22 ) Liabilities: Accrued expenses and other current liabilities $ 3,355 $ 3,356 $ (1 ) Deferred revenue and advance contract payments $ 1,630 $ 1,717 $ (87 ) Income taxes payable $ 208 $ 206 $ 2 Non-current deferred revenue $ 256 $ 491 $ (235 ) Non-current income tax liabilities and deferred tax liabilities $ 1,184 $ 1,148 $ 36 Equity: Retained earnings $ 478 $ 301 $ 177 Accumulated other comprehensive loss $ (244 ) $ (239 ) $ (5 ) The adoption of ASC 606 did not materially impact the statement of cash flows. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Restructuring Costs The Company recorded restructuring costs, net of reversals, of $465 million , $789 million and $238 million for fiscal 2019 , 2018 and 2017 , respectively. The costs recorded during fiscal 2019 were largely the result of implementing the Fiscal 2019 Plan, as described below. The composition of restructuring liabilities by financial statement line items is as follows: As of (in millions) March 31, 2019 March 31, 2018 Accrued expenses and other current liabilities $ 273 $ 367 Other long-term liabilities 106 153 Total $ 379 $ 520 Summary of Restructuring Plans Fiscal 2019 Plan During fiscal 2019, management approved global cost savings initiatives designed to better align the Company's organizational structure with its strategic initiatives and continue the integration of HPES and other acquisitions (the "Fiscal 2019 Plan"). The Fiscal 2019 Plan includes workforce optimization and rationalization of facilities and data center assets. 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. Costs incurred to date under the Fiscal 2018 Plan total $ 782 million , comprising $ 594 million in workforce reductions and $ 188 million of facilities costs. 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. Other Prior Year Plans Other prior year plans are comprised of the Fiscal 2016 Plan and Fiscal 2015 Plan. As of March 31, 2019, activities under these plans are substantially complete. 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, 2018 Costs Expensed, (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2019 Fiscal 2019 Plan Workforce Reductions $ — $ 363 $ (2 ) $ (218 ) $ (5 ) $ 138 Facilities Costs — 144 (6 ) (68 ) (2 ) 68 Total $ — $ 507 $ (8 ) $ (286 ) $ (7 ) $ 206 Fiscal 2018 Plan Workforce Reductions $ 257 $ (30 ) $ — $ (151 ) $ (17 ) $ 59 Facilities Costs 98 (14 ) (3 ) (40 ) (6 ) 35 Total $ 355 $ (44 ) $ (3 ) $ (191 ) $ (23 ) $ 94 Fiscal 2017 Plan Workforce Reductions $ 19 $ — $ — $ (12 ) $ — $ 7 Facilities Costs 3 — — (3 ) — — Total $ 22 $ — $ — $ (15 ) $ — $ 7 Other Prior Year Plans Workforce Reductions $ 4 $ — $ — $ (2 ) $ — $ 2 Facilities Costs 2 — — (1 ) — 1 Total $ 6 $ — $ — $ (3 ) $ — $ 3 Acquired Liabilities Workforce Reductions $ 110 $ 2 $ — $ (58 ) $ (3 ) $ 51 Facilities Costs 27 — — (9 ) — 18 Total $ 137 $ 2 $ — $ (67 ) $ (3 ) $ 69 (1) Costs expensed, net of reversals include $48 million , $3 million , and $1 million of costs reversed from the Fiscal 2018 Plan, Fiscal 2017 Plan and Other Prior Year Plans, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. Restructuring Liability as of March 31, 2017 Acquired Balance as of April 1, 2017 Costs Expensed, Net of Reversals (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2018 Fiscal 2018 Plan Workforce Reductions $ — n/a $ 624 $ (10 ) $ (367 ) $ 10 $ 257 Facilities Costs — n/a 202 (4 ) (102 ) 2 98 Total $ — n/a $ 826 $ (14 ) $ (469 ) $ 12 $ 355 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 $ 255 $ — $ (2 ) $ (152 ) $ 9 $ 110 Facilities Costs n/a 70 (3 ) (3 ) (37 ) — 27 Total n/a $ 325 $ (3 ) $ (5 ) $ (189 ) $ 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 Plans, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
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 $810 million , $797 million and $146 million , for the fiscal years ended March 31, 2019 , March 31, 2018 and March 31, 2017 , respectively. Minimum fixed rentals required for the next five years and thereafter under operating leases in effect at March 31, 2019 , were as follows: Fiscal year (in millions) Real Estate Equipment 2020 $ 409 $ 248 2021 288 119 2022 203 27 2023 159 4 2024 124 1 Thereafter 274 — Minimum fixed rentals 1,457 399 Less: Sublease rental income (149 ) — Totals $ 1,308 $ 399 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, 2019 were as follows: Fiscal year Minimum Purchase Commitment (1) (in millions) 2020 $ 2,286 2021 1,026 2022 488 2023 432 2024 243 Thereafter 25 Total $ 4,500 (1) A significant portion of the minimum purchase commitments in fiscal 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, 2019 : (in millions) Fiscal 2020 Fiscal 2021 Fiscal 2022 and Thereafter Totals Surety bonds $ 254 $ 125 $ 145 $ 524 Letters of credit 190 28 364 582 Stand-by letters of credit 81 81 13 175 Totals $ 525 $ 234 $ 522 $ 1,281 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. In a ruling dated September 20, 2018, the Court allowed the Company’s counterclaim for indemnification to proceed with respect to liability for claims not arising under the Federal False Claims Act. The Parties participated in a non-binding mediation on November 29, 2017, but no settlement has been reached to date. Discovery has now commenced. The Company believes that these claims are without merit and intends to continue to defend itself vigorously. 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. In a ruling dated September 21, 2018, the Court denied the Company’s motions for judgment as a matter of law, and for decertification. Further rulings on the scope of damages are pending. 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 Mr. 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 Chancery Court granted on November 3, 2017. On December 18, 2018, the Government filed an application to dismiss the indictment against Mr. Pulier, and on December 20, 2018, the United States District Court for the Central District of California granted the application and dismissed the indictment with prejudice. On December 21, 2018, CSC filed a motion to lift the stay in its civil lawsuit against Mr. Pulier in Delaware Chancery Court, and a motion for a temporary restraining order and preliminary injunction preventing Mr. Pulier from dissipating approximately $4.9 million previously seized by the Government in connection with its criminal investigation. On January 30, 2019, the Court granted the motion to lift the stay. On March 5, 2019, the Court denied the motion for a temporary restraining order and preliminary injunction. The Court has set a trial date of April 20, 2020. Discovery is ongoing. In addition, 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. These criminal charges were dismissed on December 20, 2018. 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 authorities in their investigation. 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 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 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. 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. On August 27, 2018, the Magistrate Judge issued its Report and Recommendation denying the vacatur motion. On September 10, 2018, the Company filed its objections to this report to the United States District Judge who reviews the decision de novo . On September 18, 2018, the District Court summarily accepted the Report and Recommendation without further briefing and entered a Final Judgment in the case. On September 27, 2018, the Company filed a notice of appeal to the Fifth Circuit Court of Appeals. The Company has also paid the portion of the judgment that is uncontested on appeal, and Kemper recorded this partial satisfaction of the judgment on September 26, 2018. On January 16, 2019, the Company filed its opening brief with the Fifth Circuit Court of Appeals. Kemper filed its brief on March 1, 2019, and the Company filed its reply brief on March 29, 2019. No further dates have been set at this time . 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 certain named and opt-in plaintiffs who had 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 for those named and opt-in plaintiffs. Accordingly, the Court has stayed the entire action pending arbitration for these individuals, 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 joint arbitration was permissible. The Company subsequently sought and obtained leave of Court to file a motion for reconsideration arguing that joint 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 selected a single arbitrator to conduct the proceedings. An initial case management conference before the arbitrator was held on June 29, 2018. Pursuant to the release agreements, however, mediation is a precondition to arbitration. A mediation was held on October 4-5, 2018, and a settlement was reached with all 16 named and opt-in plaintiffs who were compelled to arbitrate. Seven of the plaintiffs were aligned to the Company . A settlement agreement has been signed. The case will continue to proceed in Court, however, with respect to other putative class members. Former business units of the Company now owned by Perspecta will be proportionately liable for any recovery by plaintiffs in this matter. Oracle America, Inc., et al. v. Hewlett Packard Enterprise Company: On March 22, 2016, Oracle filed a complaint against HPE in the Northern District of California, alleging copyright infringement, interference with contract, intentional interference with prospective economic relations, and unfair competition. The litigation relates in part to former business units of HPE that are now owned by the Company. The Company may be required to indemnify HPE for a portion of any recovery by Oracle in the litigation related to these business units. Oracle’s claims arise primarily out of HPE’s prior relationship with a third-party maintenance provider named Terix Computer Company, Inc. (“Terix”). Oracle claims that Terix infringed its copyrights while acting as HPE’s subcontractor for certain customers of HPE’s multivendor support business. Oracle claims that HPE is liable for vicarious and contributory infringement arising from the alleged actions of Terix and for direct infringement arising from its own alleged conduct. On June 14, 2018, the court heard oral argument on the parties’ cross-motions for summary judgment. On January 29, 2019, the court granted HPE’s motion for summary judgment and denied Oracle’s motion for summary judgment, resolving the matter in HPE’s favor. Oracle has appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit. The parties are scheduled to submit briefs in the appellate case between June and July 2019. In re DXC Technology Company Securities Litigation: On December 27, 2018, a purported class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against the Company and two of its current officers. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s business, operations, prospects and performance during the proposed class period of February 8, 2018 to November 6, 2018. In March 2019, three related shareholder derivative lawsuits were filed in the District Court of the State of Nevada, in and for Clark County, against two of the Company’s current officers and the members of the Company’s board of directors, asserting claims for breach of fiduciary duty, waste of corporate assets , and unjust enrichment. The Company believes the claims are without merit and intends to vigorously defend all claims asserted. 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 has substantially completed its internal investigation, and has requested a meeting with OFAC to report its findings. 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. |
Reconciliation of Previously Re
Reconciliation of Previously Reported Amounts to Revised and Restated Financial Statements | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Reconciliation of Previously Reported Amounts to Recast Financial Statements | Reconciliation of Previously Reported Amounts to Recast Financial Statements As described under "Recent Accounting Pronouncements" in Note 1–Summary of Significant Accounting Policies," during fiscal 2019 the Company adopted ASU 2016-15. The adoption of this standard requires the Company to recast each prior period presented consistent with the new guidance. A reconciliation of the amounts previously reported within Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 16, 2018 to those as adjusted within the accompanying financial statements is shown in the tables below for selected financial amounts: Consolidated Statements of Cash Flows Fiscal Year Ended March 31, 2018 (in millions) As Previously Reported Retrospective Adoption of ASU 2016-15 As Adjusted Decrease (increase) in receivables $ 74 $ (538 ) $ (464 ) Net cash provided by operating activities $ 3,105 $ (538 ) $ 2,567 Deferred purchase price receivable $ 147 $ 538 $ 685 Net cash provided by investing activities $ 181 $ 538 $ 719 Fiscal Year Ended March 31, 2017 (in millions) As Previously Reported Retrospective Adoption of ASU 2016-15 As Adjusted Decrease (increase) in receivables $ 193 $ (218 ) $ (25 ) Net cash provided by operating activities $ 837 $ (218 ) $ 619 Deferred purchase price receivable $ 141 $ 218 $ 359 Net cash used in investing activities $ (783 ) $ 218 $ (565 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2019 | |
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 Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
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 positions, 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 Effective April 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (ASC 606),” using the modified retrospective method. Refer to New Accounting Standards below and Note 19 - “ Revenue ” for further discussion of the impact of adoption and other required disclosures. The Company’s accounting policy related to the new revenue standard is summarized below. The Company's primary service offerings are information technology outsourcing, other professional services, or a combination thereof. Revenues are recognized when control of the promised goods or services is transferred to DXC's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. DXC determines revenue recognition through the five-step model as follows: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation DXC's IT outsourcing arrangements typically reflect a single performance obligation that comprises a series of distinct services which are substantially the same and provided over a period of time using the same measure of progress. Revenue derived from these arrangements is recognized over time based upon the level of services delivered in the distinct periods in which they are provided based on time increments. DXC's 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. Upfront fees are generally recognized ratably over the contract period, which approximates the manner in which the services are provided. These activities typically do not qualify as performance obligations, and the related revenues are allocated to the relevant performance obligations and recognized ratably over time as the performance obligation is satisfied during the period in which DXC provides the related service, which is typically the life of the contract. Software transactions that include multiple performance obligations are described below. For contracts with multiple performance obligations, DXC allocates the contract’s transaction price to each performance obligation based on the relative standalone selling price of each distinct good or service in the contract. Other than software sales involving multiple performance obligations, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The transaction price of a contract is determined based on fixed and variable consideration. Variable consideration related to the Company’s IT outsourcing offerings often include volume-based pricing that are allocated to the distinct days of the services to which the variable consideration pertains. However, in certain cases, estimates of variable consideration, including penalties, contingent milestone payments and rebates are necessary. The Company only includes estimates of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. These judgments involve consideration of historical and expected experience with the customer and other similar customers, and the facts and circumstances specific to the arrangement. The Company generally provides its services under time and materials contracts, unit price contracts, fixed-price contracts, and software contracts for which revenue is recognized in the following manner: Time and materials contracts . Revenue is recognized over time at agreed-upon billing rates when services are provided. Unit-price contracts. Revenue is recognized over time 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 over time using a method that measures the extent of progress towards completion of a performance obligation, generally using a cost-input method (referred to as the percentage-of-completion cost-to-cost method). Under the percentage-of-completion cost-to-cost method, revenue is recognized based on the proportion of total cost incurred to estimated total costs at completion. A performance obligation's estimate at completion includes all direct costs such as materials, labor, subcontractor costs, overhead, and a ratable portion of general and administrative costs. If output or input measures are not available or cannot be reasonably estimated, revenue is deferred until progress can be measured and costs are not deferred unless they meet the criteria for capitalization. Under the percentage-of-completion cost-to-cost 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. Software contracts. Certain of DXC's arrangements involve the sale of DXC proprietary software, post contract customer support, and other software-related services. The standalone selling price generally is determined for each performance obligation using an adjusted market assessment approach based on the price charged where each deliverable is sold separately. In certain limited cases (typically for software licenses) when the historical selling price is highly variable, the residual approach is used. This approach allocates revenue to the performance obligation equal to the difference between the total transaction price and the observable standalone selling prices for the other performance obligations. Revenue from distinct software licenses is recognized at a point in time when the customer can first use the software license. If significant customization is required, software revenue is recognized as the related software customization services are performed in accordance with the percentage-of-completion method described above. Revenue for post contract customer support and other software services is recognized over time as those services are provided. Practical Expedients and Exemptions DXC does not adjust the promised amount of consideration for the effects of a significant financing component when the period between when DXC transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. In addition, the Company reports revenue net of any revenue-based taxes assessed by a governmental authority that are imposed on and concurrent with specific revenue-producing transactions, such as sales taxes and value-added taxes. Contract Balances The timing of revenue recognition, billings and cash collections results in accounts receivable (billed receivables, unbilled receivables and contract assets) and deferred revenue and advance contract payments (contract liabilities) on the Company's balance sheets. In arrangements that contain an element of customized software solutions, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g. monthly) or upon achievement of certain contractual milestones. Generally, billing occurs subsequent to revenue recognition, sometimes resulting in contract assets if the related billing is conditional upon more than just the passage of time. However, the Company sometimes receives advances or deposits from customers, before revenue is recognized, which results in the generation of contract liabilities. Payment terms vary by type of product or service being provided as well as by customer, although the term between invoicing and when payment is due is generally an insignificant period of time. Costs to Obtain a Contract Certain sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The majority of sales commissions are paid based on the achievement of quota-based targets. These costs are deferred and amortized on a straight-line basis over an average period of benefit determined to be five years. The Company determined the period of benefit considering the length of its customer contracts, its technology and other factors. The period of benefit approximates the average stated contract terms, excluding expected future renewals, because sales commissions are paid upon contract renewal in a manner commensurate with the initial commissions. Some commission payments are not capitalized because they are expensed during the fiscal year as the related revenue is recognized. Capitalized sales commissions costs are classified within other assets and amortized in selling, general and administrative expenses. Costs to Fulfill a Contract Certain contract setup costs incurred upon initiation or renewal of an outsourcing contract that generate or enhance resources to be used in satisfying future performance obligations are capitalized when they are deemed recoverable. Judgment is applied to assess whether contract setup costs are capitalizable. Costs that generate or enhance resources often pertain to activities that enhance the capabilities of the services, improve customer experience and establish a more effective and efficient IT environment. The Company recognizes these transition and transformation contract costs as other assets, which are amortized over the respective contract life. |
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. The Company has defined its reporting units as its reportable segments. 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 its beneficial interests in securitization transactions, which is the deferred purchase price (the “DPP”) recorded in connection with the Company's Receivables Securitization Facility, within investing activities in its statements of cash flows. |
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 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. 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 include 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 Company also has entered into certain net investment hedges. Changes in the fair value of net investment hedges are recorded in the currency translation adjustment section of other comprehensive income and subsequently reclassified into earnings in the period the hedged item affects earnings. The Company excludes forward points from the effectiveness assessment of its net investment hedges. Changes in fair value of the excluded component are 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 2019 , 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 May 2014 ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)" April 1, 2018 Modified-retrospective 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 adopted this standard using the modified retrospective method. The Company has applied the standard to only those contracts that were not completed at the adoption date. The adoption resulted in the following impacts. The Company recorded a net increase to opening retained earnings, net of income taxes, of approximately $114 million as of April 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the capitalization of certain sales commissions of approximately $158 million offset by a reduction in income tax assets and liabilities of approximately $40 million. In addition, the Company has recorded a reduction in contract liabilities of approximately $381 million and other current assets and other assets of $385 million, primarily related to the net down of certain long-term contract asset and contract liability balances and the change in timing of revenue and costs recognized related to the Company's software contracts. Refer to Note 19 - “Revenue” for further discussion of the impact of adoption and other required disclosures. March 2017 ASU 2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" April 1, 2018 Retrospective 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 reclassified 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, as previously reported within Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 16, 2018. August 2016 ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" April 1, 2018 Retrospective 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 ASU 2016-15 requires the company to classify cash receipts related to its beneficial interests in securitization transactions, which is the deferred purchase price (the “DPP”) recorded in connection with the Company's Receivables Securitization Facility, within investing activities in its statements of cash flows. The Company adopted ASU 2016-15 effective April 1, 2018, and retrospectively adjusted prior fiscal periods, using each month’s transactional activity as the unit of account in determining the portions of transferred trade receivables as operating activities and investing activities. As disclosed in prior quarters the Company was evaluating the unit of account used in implementing ASU 2016-15. During the third quarter of fiscal 2019, the Company completed its evaluation and determined that it was necessary to change the unit of account from each month's transactional activity to each day's transactional activity. The Company reflected this change on a retrospective basis as further discussed in Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements. See Note 5 - "Receivables" for more information about the Receivables Securitization Facility. November 2016 ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force") April 1, 2018 Retrospective This update requires that amounts described as restricted cash or restricted cash equivalents must be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update must be applied retrospectively. DXC reclassified restricted cash to beginning-of-period and end-of-period cash and cash equivalents on the statement of cash flows. $68 million of restricted cash is included within assets of discontinued operations in the Company's balance sheet as of March 31, 2018. August 2017 ASU 2017-12 "Derivatives & Hedging (Topic 815)" Early adopted January 1, 2019 Modified-retrospective This update is intended 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, by revising and expanding items eligible for hedge accounting, simplifying hedge effectiveness testing and changing the timing of recognition and presentation of certain hedge items. Early adoption is permitted. The adoption of this standard had no material impact on DXC's 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 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 at the beginning of the earliest period presented or at the adoption date recognizing a cumulative adjustment to the opening balance of retained earnings in the period of adoption. This update provides for certain practical expedients. DXC will adopt this update on April 1, 2019 utilizing the simplified transition method allowing the Company to not restate comparative periods and apply Topic 842 beginning on April 1, 2019. The Company expects that the cumulative adjustment to the opening balance of retained earnings will be immaterial. In preparation for the adoption of this update, the Company has implemented changes in its systems, including the implementation of new lease accounting software, internal controls, business processes, and accounting policies related to both the implementation of, and ongoing compliance with, the new guidance. Although the Company is still finalizing its evaluation of the update and the quantification of its impact, the Company expects its adoption will result in an increase in assets and liabilities on the balance sheets of approximately $1.6 billion to $1.8 billion due to the recording of right-of-use assets and lease liabilities for lease obligations that were historically classified as operating leases. The company does not expect the guidance will have a material impact on the statements of operations or statements of cash flows. DXC expects to elect the practical expedient package permitted under Topic 842, which among other things, permits the Company not to reassess historical conclusions related to contracts that contain leases, lease classification and initial direct costs for leases that commenced prior to the adoption date. DXC expects to elect the lessee component election, allowing the Company to account for lease and non-lease components as a single lease component. Also, DXC expects to make an accounting policy election to keep leases with an initial term of 12 months or less that do not contain a ‘reasonably certain’ purchase option off the balance sheets. February 2018 ASU 2018-02 - "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" Fiscal 2020 This update provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect (or portion thereof) of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company will adopt this update in the first quarter of fiscal 2020 and expects to not elect to reclassify any stranded tax effects within AOCI to retained earnings. 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, 2019 are not expected to have a material effect on DXC's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable Intangible assets consisted of the following: As of March 31, 2019 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,864 $ 2,235 $ 1,629 Customer related intangible assets 5,389 1,139 4,250 Other intangible assets 85 25 60 Total intangible assets $ 9,338 $ 3,399 $ 5,939 As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,484 $ 1,918 $ 1,566 Customer related intangible assets 5,405 666 4,739 Other intangible assets 90 19 71 Total intangible assets $ 8,979 $ 2,603 $ 6,376 |
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | During fiscal 2019 , 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 May 2014 ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)" April 1, 2018 Modified-retrospective 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 adopted this standard using the modified retrospective method. The Company has applied the standard to only those contracts that were not completed at the adoption date. The adoption resulted in the following impacts. The Company recorded a net increase to opening retained earnings, net of income taxes, of approximately $114 million as of April 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the capitalization of certain sales commissions of approximately $158 million offset by a reduction in income tax assets and liabilities of approximately $40 million. In addition, the Company has recorded a reduction in contract liabilities of approximately $381 million and other current assets and other assets of $385 million, primarily related to the net down of certain long-term contract asset and contract liability balances and the change in timing of revenue and costs recognized related to the Company's software contracts. Refer to Note 19 - “Revenue” for further discussion of the impact of adoption and other required disclosures. March 2017 ASU 2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" April 1, 2018 Retrospective 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 reclassified 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, as previously reported within Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 16, 2018. August 2016 ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" April 1, 2018 Retrospective 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 ASU 2016-15 requires the company to classify cash receipts related to its beneficial interests in securitization transactions, which is the deferred purchase price (the “DPP”) recorded in connection with the Company's Receivables Securitization Facility, within investing activities in its statements of cash flows. The Company adopted ASU 2016-15 effective April 1, 2018, and retrospectively adjusted prior fiscal periods, using each month’s transactional activity as the unit of account in determining the portions of transferred trade receivables as operating activities and investing activities. As disclosed in prior quarters the Company was evaluating the unit of account used in implementing ASU 2016-15. During the third quarter of fiscal 2019, the Company completed its evaluation and determined that it was necessary to change the unit of account from each month's transactional activity to each day's transactional activity. The Company reflected this change on a retrospective basis as further discussed in Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements. See Note 5 - "Receivables" for more information about the Receivables Securitization Facility. November 2016 ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force") April 1, 2018 Retrospective This update requires that amounts described as restricted cash or restricted cash equivalents must be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update must be applied retrospectively. DXC reclassified restricted cash to beginning-of-period and end-of-period cash and cash equivalents on the statement of cash flows. $68 million of restricted cash is included within assets of discontinued operations in the Company's balance sheet as of March 31, 2018. August 2017 ASU 2017-12 "Derivatives & Hedging (Topic 815)" Early adopted January 1, 2019 Modified-retrospective This update is intended 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, by revising and expanding items eligible for hedge accounting, simplifying hedge effectiveness testing and changing the timing of recognition and presentation of certain hedge items. Early adoption is permitted. The adoption of this standard had no material impact on DXC's 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 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 at the beginning of the earliest period presented or at the adoption date recognizing a cumulative adjustment to the opening balance of retained earnings in the period of adoption. This update provides for certain practical expedients. DXC will adopt this update on April 1, 2019 utilizing the simplified transition method allowing the Company to not restate comparative periods and apply Topic 842 beginning on April 1, 2019. The Company expects that the cumulative adjustment to the opening balance of retained earnings will be immaterial. In preparation for the adoption of this update, the Company has implemented changes in its systems, including the implementation of new lease accounting software, internal controls, business processes, and accounting policies related to both the implementation of, and ongoing compliance with, the new guidance. Although the Company is still finalizing its evaluation of the update and the quantification of its impact, the Company expects its adoption will result in an increase in assets and liabilities on the balance sheets of approximately $1.6 billion to $1.8 billion due to the recording of right-of-use assets and lease liabilities for lease obligations that were historically classified as operating leases. The company does not expect the guidance will have a material impact on the statements of operations or statements of cash flows. DXC expects to elect the practical expedient package permitted under Topic 842, which among other things, permits the Company not to reassess historical conclusions related to contracts that contain leases, lease classification and initial direct costs for leases that commenced prior to the adoption date. DXC expects to elect the lessee component election, allowing the Company to account for lease and non-lease components as a single lease component. Also, DXC expects to make an accounting policy election to keep leases with an initial term of 12 months or less that do not contain a ‘reasonably certain’ purchase option off the balance sheets. February 2018 ASU 2018-02 - "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" Fiscal 2020 This update provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect (or portion thereof) of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company will adopt this update in the first quarter of fiscal 2020 and expects to not elect to reclassify any stranded tax effects within AOCI to retained earnings. 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. The impact of adoption of ASC 606 on the selected captions of the Company's statements of operations and balance sheets was as follows: Statement of Operations (Selected Captions) Twelve Months Ended March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues $ 20,753 $ 20,723 $ 30 Costs of services $ 14,946 $ 14,944 $ 2 Selling, general and administrative $ 1,959 $ 2,032 $ (73 ) Interest income $ (128 ) $ (141 ) $ (13 ) Income tax expense $ 288 $ 266 $ 22 Net income attributable to DXC common stockholders $ 1,257 $ 1,191 $ 66 Balance Sheet (Selected Captions) As of March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets: Receivables and contract assets, net of allowance for doubtful accounts $ 5,181 $ 5,199 $ (18 ) Other current assets $ 359 $ 411 $ (52 ) Deferred income taxes, net $ 355 $ 376 $ (21 ) Other assets $ 3,429 $ 3,451 $ (22 ) Liabilities: Accrued expenses and other current liabilities $ 3,355 $ 3,356 $ (1 ) Deferred revenue and advance contract payments $ 1,630 $ 1,717 $ (87 ) Income taxes payable $ 208 $ 206 $ 2 Non-current deferred revenue $ 256 $ 491 $ (235 ) Non-current income tax liabilities and deferred tax liabilities $ 1,184 $ 1,148 $ 36 Equity: Retained earnings $ 478 $ 301 $ 177 Accumulated other comprehensive loss $ (244 ) $ (239 ) $ (5 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 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 (2) 6,016 Other assets (2) 1,939 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 of $203 million received from HPE in accordance with the provisions of the Separation Agreement. (2) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. |
Summary of Pro Forma Information | 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, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations | ation. The following selected financial information of USPS is included in the statements of cash flows: (in millions) Fiscal Year Ended March 31, 2019 (1) Fiscal Year Ended March 31, 2018 Depreciation $ 16 $ 70 Amortization $ 17 $ 99 Capital expenditures $ — $ (18 ) Significant operating non-cash items: Gain on dispositions $ 24 $ — (1) Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the prior period. The following is a summary of the assets and liabilities distributed as part of the Separation of USPS on May 31, 2018: (in millions) As of May 31, 2018 Assets: Cash and cash equivalents $ 95 Receivables, net 458 Prepaid expenses 82 Other current assets 35 Total current assets of discontinued operations 670 Intangible assets, net (1) 870 Goodwill 2,029 Property and equipment, net 294 Other assets (1) 169 Total non-current assets of discontinued operations 3,362 Total assets $ 4,032 Liabilities: Short-term debt and current maturities of long-term debt $ 161 Accounts payable 165 Accrued payroll and related costs 17 Accrued expenses and other current liabilities 358 Deferred revenue and advance contract payments 53 Income tax payable 18 Total current liabilities of discontinued operations 772 Long-term debt, net of current maturities 1,320 Non-current deferred revenue 5 Non-current income tax liabilities and deferred tax liabilities 196 Other long-term liabilities 71 Total long-term liabilities of discontinued operations 1,592 Total liabilities $ 2,364 (1) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. The following is a summary of the assets and liabilities of USPS that have been classified as assets and liabilities of discontinued operations: (in millions) As of March 31, 2018 Assets: Cash and cash equivalents $ 68 Receivables, net 432 Prepaid expenses 75 Other current assets 6 Total current assets of discontinued operations 581 Intangible assets, net (1) 879 Goodwill 2,033 Property and equipment, net 283 Other assets (1) 168 Total non-current assets of discontinued operations 3,363 Total assets $ 3,944 Liabilities: Short-term debt and current maturities of long-term debt $ 155 Accounts payable 195 Accrued payroll and related costs 22 Accrued expenses and other current liabilities 346 Deferred revenue and advance contract payments 53 Income tax payable 18 Total current liabilities of discontinued operations 789 Long-term debt, net of current maturities 214 Non-current deferred revenue 7 Non-current income tax liabilities and deferred tax liabilities 163 Other long-term liabilities 72 Total long-term liabilities of discontinued operations 456 Total liabilities $ 1,245 (1) Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation. The following is a summary of the operating results of USPS which have been reflected within income from discontinued operations, net of tax: (in millions) Fiscal Year Ended March 31, 2019 (1) Fiscal Year Ended March 31, 2018 Revenue $ 431 $ 2,823 Costs of services 311 2,104 Selling, general and administrative 50 152 Depreciation and amortization 33 169 Restructuring costs 1 14 Interest expense 8 15 Other (income) expense, net (25 ) 2 Total costs and expenses 378 2,456 Total income from discontinued operations, before income taxes 53 367 Income tax expense 18 131 Total income from discontinued operations $ 35 $ 236 (1) Results for the fiscal year ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve-month period as shown for the p |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Net income (loss) attributable to DXC common shareholders: From continuing operations $ 1,222 $ 1,515 $ (123 ) From discontinued operations 35 236 — $ 1,257 $ 1,751 $ (123 ) Common share information: Weighted average common shares outstanding for basic EPS 277.54 284.93 140.39 Dilutive effect of stock options and equity awards 3.89 4.84 — Weighted average common shares outstanding for diluted EPS 281.43 289.77 140.39 EPS: Basic Continuing operations $ 4.40 $ 5.32 $ (0.88 ) Discontinued operations 0.13 0.83 — Total $ 4.53 $ 6.15 $ (0.88 ) Diluted Continuing operations $ 4.35 $ 5.23 $ (0.88 ) Discontinued operations 0.12 0.81 — Total $ 4.47 $ 6.04 $ (0.88 ) |
Schedule of Antidilutive Securities | The following table reflects awards excluded: Fiscal Years Ended March 31, 2019 March 31, 2018 March 31, 2017 Stock Options — — 3,317,041 RSUs 46,051 54,637 845,315 PSUs 25,086 96,029 1,540,152 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables, net of allowance for doubtful accounts consist of the following: As of (in millions) March 31, 2019 March 31, 2018 Billed trade receivables $ 2,508 $ 3,110 Unbilled receivables 1,114 1,273 Other receivables 1,559 1,098 Total $ 5,181 $ 5,481 The following table summarizes activity for the allowance for doubtful accounts: As of and for Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Beginning balance $ 40 $ 26 $ 31 Additions charged to costs and expenses 19 45 10 Deductions (1) (4 ) (37 ) (13 ) Other (2) 5 6 (2 ) Ending balance $ 60 $ 40 $ 26 (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 Federal Receivables Sales Facility, prior to the Separation: (in millions) As of and for the Fiscal Year Ended March 31, 2019 (1) Transfers of receivables $ 464 Collections $ 521 Operating cash flow effect $ (57 ) (1) Results for the twelve months ended March 31, 2019 reflect operations through the Separation date of May 31, 2018, not the full twelve month period. 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, 2019 March 31, 2018 Beginning balance $ 233 $ 252 Transfers of receivables 5,435 2,192 Collections (4,393 ) (2,225 ) Change in funding availability (246 ) 30 Facility amendments (457 ) — Fair value adjustment 2 (16 ) Ending balance $ 574 $ 233 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 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, 2019 Assets: Fair Value Level 1 Level 2 Level 3 Money market funds and money market deposit accounts $ 6 $ 6 $ — $ — Time deposits (1) 194 194 — — Other debt securities (2) 53 — 49 4 Deferred purchase price receivable 574 — — 574 Total assets $ 827 $ 200 $ 49 $ 578 Liabilities: Contingent consideration $ 41 $ — $ — $ 41 Total liabilities $ 41 $ — $ — $ 41 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 $38 million and $42 million , and unrealized gains of $11 million and $11 million , as of March 31, 2019 and March 31, 2018, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Foreign currency forward contracts Other expense (income), net $ 16 $ 118 $ (84 ) |
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, 2019 March 31, 2018 Derivatives designated for hedge accounting: Interest rate swaps Other assets $ — $ 6 Foreign currency forward contracts (1) Other current assets 38 14 Total fair value of derivatives designated for hedge accounting $ 38 $ 20 Derivatives not designated for hedge accounting: Foreign currency forward contracts Other current assets $ 5 $ 4 Total fair value of derivatives not designated for hedge accounting $ 5 $ 4 Derivative Liabilities As of (in millions) Balance Sheet Line Item March 31, 2019 March 31, 2018 Derivatives designated for hedge accounting: Foreign currency forward contracts (1) Accrued expenses and other current liabilities $ 4 $ 3 Total fair value of derivatives designated for hedge accounting: $ 4 $ 3 Derivatives not designated for hedge accounting: Foreign currency forward contracts Accrued expenses and other current liabilities $ 9 $ 6 Total fair value of derivatives not designated for hedge accounting $ 9 $ 6 (1) Foreign currency forward contracts designated for hedge accounting includes designated cash flow hedges and net investment hedges. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of (in millions) March 31, 2019 March 31, 2018 Property and equipment — gross: Land, buildings and leasehold improvements $ 2,180 $ 2,464 Computers and related equipment 4,719 4,185 Furniture and other equipment 224 323 Construction in progress 14 77 7,137 7,049 Less: accumulated depreciation 3,958 3,686 Property and equipment, net $ 3,179 $ 3,363 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 Customer related intangibles Expected customer service life Acquired contract related intangibles Contract life and first contract renewal, where applicable Intangible assets consisted of the following: As of March 31, 2019 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,864 $ 2,235 $ 1,629 Customer related intangible assets 5,389 1,139 4,250 Other intangible assets 85 25 60 Total intangible assets $ 9,338 $ 3,399 $ 5,939 As of March 31, 2018 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Software $ 3,484 $ 1,918 $ 1,566 Customer related intangible assets 5,405 666 4,739 Other intangible assets 90 19 71 Total intangible assets $ 8,979 $ 2,603 $ 6,376 |
Schedule of Components of Amortization Expense | The components of amortization expense were as follows: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Intangible asset amortization $ 890 $ 860 $ 230 Transition and transformation contract cost amortization 258 226 79 Total amortization expense $ 1,148 $ 1,086 $ 309 |
Estimated Future Amortization of Intangible Assets | Estimated future amortization as of March 31, 2019 is as follows: Fiscal Year (in millions) 2020 $ 954 2021 $ 919 2022 $ 780 2023 $ 696 2024 $ 639 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 and March 31, 2018 , respectively: (in millions) GBS GIS Total Balance as of March 31, 2018, net 4,531 3,088 7,619 Acquisitions 228 — 228 Divestitures (12 ) — (12 ) Foreign currency translation (148 ) (81 ) (229 ) Goodwill, gross 5,300 5,068 10,368 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2019, net $ 4,599 $ 3,007 $ 7,606 (in millions) GBS GIS Total Balance as of March 31, 2017, net 1,470 385 1,855 Acquisitions 2,877 2,598 5,475 Foreign currency translation 184 105 289 Goodwill, gross 5,232 5,149 10,381 Accumulated impairment losses (701 ) (2,061 ) (2,762 ) Balance as of March 31, 2018, net $ 4,531 $ 3,088 $ 7,619 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Domestic entities $ 511 $ 454 $ (157 ) Entities outside the United States 1,004 850 (17 ) Total $ 1,515 $ 1,304 $ (174 ) |
Components Of Income Tax Provision | The income tax expense (benefit) on income (loss) from continuing operations is comprised of: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Current: Federal $ (50 ) $ 392 $ (32 ) State 42 16 14 Foreign 218 247 36 210 655 18 Deferred: Federal 95 (899 ) (7 ) State 23 (59 ) (1 ) Foreign (40 ) 61 (84 ) 78 (897 ) (92 ) Total income tax expense (benefit) $ 288 $ (242 ) $ (74 ) |
Federal Statutory Tax Rate To Effective Tax Rate Reconciliation | The major elements contributing to the difference between the U.S. federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below. Due to the Company's fiscal year, the U.S. federal weighted statutory tax rate for the fiscal years ended March 31, 2019 and March 31, 2018 were of 21.0% and 31.5% , respectively. Fiscal Years Ended March 31, 2019 March 31, 2018 March 31, 2017 Statutory rate 21.0 % 31.5 % (35.0 )% State income tax, net of federal tax 3.2 2.0 (4.0 ) United States Tax Reform (3.4 ) (40.6 ) — Change in Indefinite Reinvestment Assertion (3.1 ) 3.3 — Loss of attributes due to merger — 5.1 — Change in uncertain tax positions (1.5 ) (0.2 ) (3.4 ) Foreign tax rate differential (18.4 ) (5.7 ) (40.0 ) Capitalized transaction costs 0.1 1.0 12.1 Change in valuation allowances 16.9 (7.7 ) 34.3 Excess tax benefits for stock compensation (1.1 ) (3.0 ) (11.3 ) Prepaid tax asset amortization — 0.3 7.1 Income Tax and Foreign Tax Credits (0.6 ) (7.6 ) (2.0 ) U.S. Tax on Foreign Income 2.4 2.1 (2.6 ) Withholding Taxes 3.5 2.3 (1.1 ) Other items, net — (1.4 ) 3.4 Effective tax rate 19.0 % (18.6 )% (42.5 )% |
Components Of Deferred Tax Assets and Liabilities | The deferred tax assets (liabilities) were as follows: As of (in millions) March 31, 2019 March 31, 2018 Deferred tax assets Employee benefits $ 79 $ 156 Tax loss/credit carryforwards 1,917 1,665 Accrued interest 16 18 Contract accounting 130 134 Other assets 139 232 Total deferred tax assets 2,281 2,205 Valuation allowance (1,575 ) (1,440 ) Net deferred tax assets 706 765 Deferred tax liabilities Depreciation and amortization (994 ) (888 ) Investment basis differences (61 ) (62 ) Other liabilities (63 ) (94 ) Total deferred tax liabilities (1,118 ) (1,044 ) Total net deferred tax assets (liabilities) $ (412 ) $ (279 ) |
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, 2019 March 31, 2018 Current: Income tax receivables and prepaid taxes $ 113 $ 154 $ 113 $ 154 Non-current: Income taxes receivable and prepaid taxes $ 137 $ 30 Deferred tax assets 355 373 $ 492 $ 403 Total $ 605 $ 557 Income tax related liabilities are included in the accompanying balance sheet as follows: As of (in millions) March 31, 2019 March 31, 2018 Current: Liability for uncertain tax positions $ — $ (15 ) Income taxes payable (208 ) (112 ) $ (208 ) $ (127 ) Non-current: Deferred taxes (767 ) (652 ) Income taxes payable (201 ) (278 ) Liability for uncertain tax positions (216 ) (236 ) $ (1,184 ) $ (1,166 ) Total $ (1,392 ) $ (1,293 ) |
Summary of Operating Loss Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2019 As of March 31, 2018 (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 $ 25 $ — $ 25 2037 $ 41 $ — $ 41 2037 State $ 845 $ 9 $ 836 2039 $ 873 $ — $ 873 2038 Foreign $ 7,595 $ 7,292 $ 303 2039 $ 6,522 $ 6,287 $ 235 2038 Tax credit carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ 23 $ 7 $ 16 2039 $ 28 $ 7 $ 21 2038 Foreign $ 18 $ — $ 18 2020 $ 21 $ — $ 21 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 236 $ 211 $ 25 2023 $ 240 $ 193 $ 47 2023 |
Summary of Tax Credit Carryforwards | The following table provides information on the Company's various tax carryforwards: As of March 31, 2019 As of March 31, 2018 (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 $ 25 $ — $ 25 2037 $ 41 $ — $ 41 2037 State $ 845 $ 9 $ 836 2039 $ 873 $ — $ 873 2038 Foreign $ 7,595 $ 7,292 $ 303 2039 $ 6,522 $ 6,287 $ 235 2038 Tax credit carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ 23 $ 7 $ 16 2039 $ 28 $ 7 $ 21 2038 Foreign $ 18 $ — $ 18 2020 $ 21 $ — $ 21 2020 Capital loss carryforwards Federal $ — $ — $ — N/A $ — $ — $ — N/A State $ — $ — $ — N/A $ — $ — $ — N/A Foreign $ 236 $ 211 $ 25 2023 $ 240 $ 193 $ 47 2023 |
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, 2019 March 31, 2018 Tax $ 165 $ 219 Interest 41 40 Penalties 25 25 Net of tax attributes (15 ) (33 ) Total $ 216 $ 251 |
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, 2019 March 31, 2018 March 31, 2017 Balance at beginning of fiscal year $ 219 $ 192 $ 180 Gross increases related to prior year tax positions 4 10 14 Gross decreases related to prior year tax positions (27 ) (12 ) (12 ) Gross increases related to current year tax positions — 7 10 Settlements and statute of limitation expirations (23 ) (19 ) (7 ) Acquisitions — 39 6 Foreign exchange and others (8 ) 2 1 Balance at end of fiscal year $ 165 $ 219 $ 192 |
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, 2019 March 31, 2018 March 31, 2017 (in millions) Increase (Decrease) Interest $ 2 $ 2 $ (8 ) Interest, net of tax $ 1 $ 2 $ (9 ) Accrued penalties $ (1 ) $ — $ — Liability for interest $ 41 $ 40 $ 25 Liability for interest, net of tax $ 36 $ 36 $ 20 Liability for penalties $ 25 $ 25 $ 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 2008 and forward United States – Various States 2008 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, 2019 | |
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, 2019 March 31, 2018 Short-term debt and current maturities of long-term debt Euro-denominated commercial paper (1) (0.1) - 0.02% (2) 2020 $ 694 $ 863 Current maturities of long-term debt Various 2020 766 439 Current maturities of capitalized lease liabilities 1.0% - 12.0% 2020 482 616 Short-term debt and current maturities of long-term debt $ 1,942 $ 1,918 Long-term debt, net of current maturities GBP term loan 1.3% -1.5% (3) 2019 $ — $ 260 EUR term loan 1.75% (4) 2019 — 493 AUD term loan 2.7% - 2.9% (5) 2021 567 — AUD term loan 2.9% - 3.3% (6) 2022 — 210 GBP term loan 1.60% (7) 2022 583 — EUR term loan 0.90% (8) 2022 — 187 USD term loan 3.1% - 3.3% (9) 2022 — 899 $500 million Senior notes 2.875% 2020 502 502 $500 million Senior notes 3.0% - 3.8% (10) 2021 498 646 $274 million Senior notes 4.45% 2023 277 278 $171 million Senior notes 4.45% 2023 172 173 $500 million Senior notes 4.25% 2025 506 507 £ 250 million Senior notes 2.75% 2025 322 346 €650 million Senior notes 1.75% 2026 725 — $500 million Senior notes 4.75% 2028 508 509 $234 million Senior notes 7.45% 2030 273 277 Lease credit facility 2.2% - 3.5% 2020 - 2023 25 46 Capitalized lease liabilities 1.0% - 12.0% 2020 - 2024 1,127 1,235 Borrowings for assets acquired under long-term financing 2.3% - 4.5% 2020 - 2024 462 405 Mandatorily redeemable preferred stock outstanding 6.00% 2023 62 61 Other borrowings 0.5% - 7.4% 2020 - 2022 109 113 Long-term debt 6,718 7,147 Less: current maturities 1,248 1,055 Long-term debt, net of current maturities $ 5,470 $ 6,092 (1) At DXC's option, DXC can borrow up to a maximum of €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) Variable interest rate equal to the bank bill swap bid rate for a one-, two-, three- or six-month interest period plus 0.60% to 0.95% based on the published credit ratings of DXC. (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% to 1.45% based on the published credit ratings of DXC. (7) Three-month LIBOR plus 0.80% . (8) 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. (9) 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. (10) Three-month LIBOR plus 0.95% . |
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, 2019 , are as follows: Fiscal Year (in millions) 2020 $ 509 2021 310 2022 212 2023 128 2024 36 Thereafter — Total minimum lease payments 1,195 Less: Amount representing interest and executory costs (68 ) Present value of net minimum lease payments 1,127 Less: Current maturities of capital lease obligations (482 ) Long-term capitalized lease liabilities $ 645 |
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, 2019 , are as follows: Fiscal Year (in millions) 2020 $ 766 2021 1,221 2022 722 2023 547 2024 21 Thereafter 2,314 Total $ 5,591 |
Pension and Other Benefit Pla_2
Pension and Other Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Projected Benefit Obligations As of (in millions) March 31, 2019 March 31, 2018 Projected benefit obligation at beginning of year $ 11,384 $ 3,297 Benefit obligation assumed as a result of the HPES merger — 7,351 Service cost 88 121 Interest cost 253 249 Plan participants’ contributions 13 16 Amendments 27 (44 ) Business/contract acquisitions/divestitures — 69 Contractual termination benefits 3 13 Settlement/curtailment (49 ) (65 ) Actuarial loss (gain) 286 (332 ) Benefits paid (344 ) (447 ) Foreign currency exchange rate changes (818 ) 1,170 Other 173 (14 ) Projected benefit obligation at end of year $ 11,016 $ 11,384 The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations: Fiscal Years Ended March 31, 2019 March 31, 2018 Discount rate 2.4 % 2.5 % Rates of increase in compensation levels 2.0 % 2.0 % Fair Value of Plan Assets and Funded Status As of (in millions) March 31, 2019 March 31, 2018 Fair value of plan assets at beginning of year $ 11,574 $ 2,998 Assets assumed as a result of the HPES merger — 7,411 Actual return on plan assets 700 371 Employer contribution 78 83 Plan participants’ contributions 13 16 Benefits paid (344 ) (447 ) Business/contract acquisitions/divestitures — (2 ) Contractual termination benefits 17 4 Plan settlement (38 ) (22 ) Foreign currency exchange rate changes (837 ) 1,176 Other 180 (14 ) Fair value of plan assets at end of year $ 11,343 $ 11,574 Funded status at end of year $ 327 $ 190 Selected Information As of (in millions) March 31, 2019 March 31, 2018 Other assets $ 1,157 $ 1,118 Accrued expenses and other current liabilities (20 ) (28 ) Non-current pension obligations (790 ) (879 ) Other long-term liabilities - OPEB (20 ) (21 ) Net amount recorded $ 327 $ 190 Accumulated benefit obligation $ 10,893 $ 11,241 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, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Projected benefit obligation $ 2,329 $ 2,488 $ 2,070 $ 2,250 Accumulated benefit obligation $ 2,230 $ 2,363 $ 2,004 $ 2,162 Fair value of plan assets $ 1,494 $ 1,552 $ 1,255 $ 1,338 Net Periodic Pension Cost Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Service cost $ 88 $ 121 $ 23 Interest cost 253 249 82 Expected return on assets (570 ) (534 ) (161 ) Amortization of transition obligation — 1 1 Amortization of prior service costs (15 ) (18 ) (17 ) Contractual termination benefit 3 13 1 Settlement/curtailment gain (10 ) (42 ) — Recognition of actuarial loss (gain) 153 (178 ) 87 Net periodic pension (income) expense $ (98 ) $ (388 ) $ 16 Estimated Future Contributions and Benefits Payments (in millions) Employer contributions: 2020 $ 82 Benefit Payments: 2020 $ 319 2021 305 2022 358 2023 300 2024 302 2025 and thereafter 1,610 Total $ 3,194 The weighted-average rates used to determine net periodic pension cost were: Fiscal Years Ended March 31, 2019 March 31, 2018 March 31, 2017 Discount or settlement rates 2.5 % 2.5 % 3.1 % Expected long-term rates of return on assets 5.3 % 4.9 % 6.3 % Rates of increase in compensation levels 2.1 % 2.7 % 2.6 % |
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, 2019 March 31, 2018 Prior service cost $ (195 ) $ (298 ) |
Schedule of Fair Value of Financial Assets for Pension and Postretirement Benefits | Plan Asset Allocations As of Asset Category March 31, 2019 March 31, 2018 Equity securities 26 % 25 % Debt securities 45 % 53 % Alternatives 25 % 18 % Cash and other 4 % 4 % Total 100 % 100 % Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows: (in millions) Balance as of April 1, 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 Actual return on plan assets held at the reporting date (13 ) Purchases, sales and settlements 217 Transfers in and / or out of Level 3 5 Changes due to exchange rates (64 ) Balance as of March 31, 2019 $ 1,032 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, 2019 (in millions) Level 1 Level 2 Level 3 Total Equity: US Domestic Stocks $ 1 $ — $ — $ 1 Global Stocks 10 13 — 23 Global/International Equity commingled funds 399 2,156 — 2,555 Global equity mutual funds 49 325 — 374 U.S./North American Equity commingled funds 1 10 — 11 Fixed Income: Non-U.S. Government funds 215 29 — 244 Fixed income commingled funds 6 4,807 — 4,813 Fixed income mutual funds 2 1 — 3 Corporate bonds — 2 — 2 Alternatives: Other Alternatives (1) 6 1,880 982 2,868 Hedge Funds (2) — 8 — 8 Other Assets — — 36 36 Insurance contracts — 108 14 122 Cash and cash equivalents 99 184 — 283 Totals $ 788 $ 9,523 $ 1,032 $ 11,343 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 (1) Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities. (2) Represents investments in diversified fund of hedge funds. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Class of Treasury Stock | The details of shares repurchased are shown below: Fiscal Year Number of shares repurchased Average Price Per Share Amount (In millions) 2019 19,342,586 $69.20 $ 1,339 2018 1,537,782 $89.41 $ 137 2017 — — — |
Schedule of Dividends | Dividends Dividends Declared (in millions, except per share amounts) Per Common Share Total Unpaid at Fiscal Year End Fiscal 2019 $ 0.76 $ 209 $ 53 Fiscal 2018 $ 0.72 $ 209 $ 51 Fiscal 2017 $ 0.56 $ 80 $ 20 |
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 (Loss) Income 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) income, 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) income, net of taxes — — — 25 25 Balance at March 31, 2018 $ (261 ) $ 9 $ 9 $ 301 $ 58 Current-period other comprehensive loss (256 ) (22 ) — (21 ) (299 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes — 10 — (13 ) (3 ) Balance at March 31, 2019 $ (517 ) $ (3 ) $ 9 $ 267 $ (244 ) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Shares Authorized Under Stock Option Plan | As of March 31, 2019 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 $8.96 - $24.47 652,585 $ 18.88 3.44 652,585 $ 18.88 $25.14 - $41.92 1,120,399 $ 29.68 4.83 1,120,399 $ 29.68 $42.05 - $62.44 545,784 $ 45.64 6.35 541,222 $ 45.55 2,318,768 2,314,206 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, 2019 Reserved for issuance Available for future grants DXC Employee Equity Plan 34,200,000 21,832,963 DXC Director Equity Plan 230,000 104,310 DXC Share Purchase Plan 250,000 235,389 Total 34,680,000 22,172,662 |
Schedule of Employee Service Share-based Compensation | The Company recognized share-based compensation expense for fiscal 2019 , 2018 and 2017 as follows: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Total share-based compensation cost $ 74 $ 93 $ 75 Related income tax benefit $ 15 $ 21 $ 25 Total intrinsic value of options exercised $ 44 $ 136 $ 73 Tax benefits from exercised stock options and awards $ 39 $ 84 $ 34 |
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 Risk-free interest rate 1.60 % Expected volatility 29 % Expected term (in years) 6.09 Dividend yield 1.56 % |
Schedule of Shares Outstanding | Information concerning RSUs granted to non-employee directors was as follows: Number of Weighted Average Grant Date Fair Value 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 (1) 66,386 $ 37.26 Granted 19,200 $ 87.88 Issued due to Separation modification 10,488 $ 37.69 Settled (20,324 ) $ 51.59 Canceled/Forfeited — $ — Outstanding as of March 31, 2019 75,750 $ 46.31 (1) The amount of the weighted average fair value per share has been revised to reflect the impact of the USPS Separation. Information concerning RSUs and PSUs granted under the stock incentive plans was as follows: Number of Weighted Average Grant Date Fair Value 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 (1) 3,985,616 $ 47.25 Granted 1,136,002 $ 77.10 Issued due to Separation modification 649,649 $ 51.98 Settled (2,207,467 ) $ 33.05 Canceled/Forfeited (754,025 ) $ 62.01 Outstanding as of March 31, 2019 2,809,775 $ 67.27 (1) The amount of the weighted average fair value per share has been revised to reflect the impact of the USPS Separation. 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 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 HPE options converted to DXC options at HPES Merger 2,654,970 $ 46.56 CSC options converted to RSUs due to HPE 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 (1) 2,933,501 $ 32.54 5.24 $ 185 Issued due to Separation modification 400,170 $ 31.72 Exercised (969,103 ) $ 37.33 $ 44 Canceled/Forfeited (14,607 ) $ 48.33 Expired (31,193 ) $ 25.03 Outstanding as of March 31, 2019 2,318,768 $ 30.40 4.80 $ 79 Vested and expected to vest in the future as of March 31, 2019 2,318,406 $ 30.40 4.80 $ 79 Exercisable as of March 31, 2019 2,314,206 $ 30.35 4.80 $ 79 (1) The amount of the weighted average exercise price per share has been revised to reflect the impact of the Separation. |
Cash Flows (Tables)
Cash Flows (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 March 31, 2017 Cash paid for: Interest $ 308 $ 288 $ 103 Taxes on income, net of refunds (1) $ 197 $ 376 $ 63 Non-cash activities: Operating: Prepaid assets acquired under long-term financing $ 48 $ 209 $ — Investing: Capital expenditures in accounts payable and accrued expenses $ 45 $ 46 $ 43 Capital expenditures through capital lease obligations $ 668 $ 664 $ 52 Assets acquired under long-term financing $ 200 $ 238 $ 87 Increase in deferred purchase price receivable $ 1,489 $ 665 $ 595 Contingent consideration $ 41 $ — $ — Financing: Dividends declared but not yet paid $ 53 $ 51 $ 20 Stock issued for the acquisition of HPES $ — $ 9,850 $ — (1) Income tax refunds were $174 million , $38 million , and $23 million for fiscal 2019 , 2018 , and 2017 , respectively. |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | The following table summarizes components of other income, net: Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Non-service cost components of net periodic pension income $ (182 ) $ (509 ) $ (7 ) Foreign currency loss (gain) 31 (71 ) (8 ) Other gain (155 ) (13 ) (2 ) Totals $ (306 ) $ (593 ) $ (17 ) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Reportable Segment | The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements: (in millions) GBS GIS Total Reportable Segments All Other Totals Fiscal Year Ended March 31, 2019 Revenues $ 8,684 $ 12,069 $ 20,753 $ — $ 20,753 Segment Profit $ 1,645 $ 1,911 $ 3,556 $ (287 ) $ 3,269 Depreciation and amortization (1) $ 90 $ 1,212 $ 1,302 $ 127 $ 1,429 Fiscal Year Ended March 31, 2018 Revenues $ 9,254 $ 12,479 $ 21,733 $ — $ 21,733 Segment Profit $ 1,525 $ 1,643 $ 3,168 $ (179 ) $ 2,989 Depreciation and amortization (1) $ 99 $ 1,078 $ 1,177 $ 92 $ 1,269 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 (1) Depreciation and amortization as presented excludes amortization of acquired intangible assets of $539 million , $526 million , and $77 million for fiscal 2019 , 2018 , and 2017 , respectively. |
Reconciliation of Consolidated Operating Income to Income Before Taxes | Fiscal Years Ended (in millions) March 31, 2019 March 31, 2018 March 31, 2017 Profit Total profit for reportable segments $ 3,556 $ 3,168 $ 798 All other loss (287 ) (179 ) (180 ) Interest income 128 89 35 Interest expense (334 ) (320 ) (117 ) Restructuring costs (465 ) (789 ) (238 ) Transaction, separation, and integration-related costs (401 ) (359 ) (308 ) Amortization of acquired intangible assets (539 ) (526 ) (77 ) Pension and OPEB actuarial and settlement (losses) gains (143 ) 220 (87 ) Income (loss) from continuing operations, before taxes $ 1,515 $ 1,304 $ (174 ) |
Revenue and Property and Equipment, and Total Assets by Geographic Segment | Property and equipment, net, which is based on the physical location of the assets, was as follows: As of March 31, 2019 March 31, 2018 March 31, 2017 United States 1,352 1,270 389 United Kingdom 512 535 235 Australia 144 191 58 Other Europe 553 465 134 Other International 618 902 87 Total Property and Equipment, net 3,179 3,363 903 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Geography | The following table presents DXC's revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services: Twelve Months Ended (in millions) March 31, 2019 March 31, 2018 (1) March 31, 2017 (1) United States $ 7,677 $ 8,015 $ 2,986 United Kingdom 3,175 3,392 1,482 Australia 1,582 1,694 921 Other Europe 5,294 5,409 1,594 Other International 3,025 3,223 624 Total Revenues $ 20,753 $ 21,733 $ 7,607 |
Summary of Contract Assets and Liabilities | The following table provides information about the balances of the Company's trade receivables and contract assets and contract liabilities: As of (in millions) March 31, 2019 April 1, 2018 Trade receivables, net $ 3,232 $ 3,937 Contract assets $ 390 $ 444 Contract liabilities $ 1,886 $ 2,053 Change in contract liabilities were as follows: (in millions) Twelve Months Ended March 31, 2019 ASC 605 Balance, beginning of period $ 2,434 Adjustment related to Topic 606 adoption (381 ) ASC 606 Balance, beginning of period 2,053 Deferred revenue 2,681 Recognition of deferred revenue (2,664 ) Currency translation adjustment (167 ) Other (17 ) Balance, end of period $ 1,886 |
Summary of Capitalized Contract Costs | The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract: (in millions) As of March 31, 2019 Capitalized sales commission cost (1) $ 228 Transition and transformation contract costs, net (2) $ 966 (1) Capitalized sales commission costs are included within other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019 , amortization expense of $62 million related to the capitalized sales commission assets is included in selling, general, and administrative expenses in the accompanying statements of operations. (2) Transition and transformation contract costs, net reflect the Company’s setup costs incurred upon initiation of an outsourcing contract that are classified as other assets in the accompanying balance sheets. For the twelve months ended March 31, 2019 , amortization expense of $258 million is included within depreciation and amortization in the accompanying statements of operations. |
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | During fiscal 2019 , 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 May 2014 ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)" April 1, 2018 Modified-retrospective 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 adopted this standard using the modified retrospective method. The Company has applied the standard to only those contracts that were not completed at the adoption date. The adoption resulted in the following impacts. The Company recorded a net increase to opening retained earnings, net of income taxes, of approximately $114 million as of April 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the capitalization of certain sales commissions of approximately $158 million offset by a reduction in income tax assets and liabilities of approximately $40 million. In addition, the Company has recorded a reduction in contract liabilities of approximately $381 million and other current assets and other assets of $385 million, primarily related to the net down of certain long-term contract asset and contract liability balances and the change in timing of revenue and costs recognized related to the Company's software contracts. Refer to Note 19 - “Revenue” for further discussion of the impact of adoption and other required disclosures. March 2017 ASU 2017-07 “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" April 1, 2018 Retrospective 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 reclassified 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, as previously reported within Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 16, 2018. August 2016 ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" April 1, 2018 Retrospective 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 ASU 2016-15 requires the company to classify cash receipts related to its beneficial interests in securitization transactions, which is the deferred purchase price (the “DPP”) recorded in connection with the Company's Receivables Securitization Facility, within investing activities in its statements of cash flows. The Company adopted ASU 2016-15 effective April 1, 2018, and retrospectively adjusted prior fiscal periods, using each month’s transactional activity as the unit of account in determining the portions of transferred trade receivables as operating activities and investing activities. As disclosed in prior quarters the Company was evaluating the unit of account used in implementing ASU 2016-15. During the third quarter of fiscal 2019, the Company completed its evaluation and determined that it was necessary to change the unit of account from each month's transactional activity to each day's transactional activity. The Company reflected this change on a retrospective basis as further discussed in Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements. See Note 5 - "Receivables" for more information about the Receivables Securitization Facility. November 2016 ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force") April 1, 2018 Retrospective This update requires that amounts described as restricted cash or restricted cash equivalents must be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update must be applied retrospectively. DXC reclassified restricted cash to beginning-of-period and end-of-period cash and cash equivalents on the statement of cash flows. $68 million of restricted cash is included within assets of discontinued operations in the Company's balance sheet as of March 31, 2018. August 2017 ASU 2017-12 "Derivatives & Hedging (Topic 815)" Early adopted January 1, 2019 Modified-retrospective This update is intended 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, by revising and expanding items eligible for hedge accounting, simplifying hedge effectiveness testing and changing the timing of recognition and presentation of certain hedge items. Early adoption is permitted. The adoption of this standard had no material impact on DXC's 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 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 at the beginning of the earliest period presented or at the adoption date recognizing a cumulative adjustment to the opening balance of retained earnings in the period of adoption. This update provides for certain practical expedients. DXC will adopt this update on April 1, 2019 utilizing the simplified transition method allowing the Company to not restate comparative periods and apply Topic 842 beginning on April 1, 2019. The Company expects that the cumulative adjustment to the opening balance of retained earnings will be immaterial. In preparation for the adoption of this update, the Company has implemented changes in its systems, including the implementation of new lease accounting software, internal controls, business processes, and accounting policies related to both the implementation of, and ongoing compliance with, the new guidance. Although the Company is still finalizing its evaluation of the update and the quantification of its impact, the Company expects its adoption will result in an increase in assets and liabilities on the balance sheets of approximately $1.6 billion to $1.8 billion due to the recording of right-of-use assets and lease liabilities for lease obligations that were historically classified as operating leases. The company does not expect the guidance will have a material impact on the statements of operations or statements of cash flows. DXC expects to elect the practical expedient package permitted under Topic 842, which among other things, permits the Company not to reassess historical conclusions related to contracts that contain leases, lease classification and initial direct costs for leases that commenced prior to the adoption date. DXC expects to elect the lessee component election, allowing the Company to account for lease and non-lease components as a single lease component. Also, DXC expects to make an accounting policy election to keep leases with an initial term of 12 months or less that do not contain a ‘reasonably certain’ purchase option off the balance sheets. February 2018 ASU 2018-02 - "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" Fiscal 2020 This update provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect (or portion thereof) of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company will adopt this update in the first quarter of fiscal 2020 and expects to not elect to reclassify any stranded tax effects within AOCI to retained earnings. 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. The impact of adoption of ASC 606 on the selected captions of the Company's statements of operations and balance sheets was as follows: Statement of Operations (Selected Captions) Twelve Months Ended March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues $ 20,753 $ 20,723 $ 30 Costs of services $ 14,946 $ 14,944 $ 2 Selling, general and administrative $ 1,959 $ 2,032 $ (73 ) Interest income $ (128 ) $ (141 ) $ (13 ) Income tax expense $ 288 $ 266 $ 22 Net income attributable to DXC common stockholders $ 1,257 $ 1,191 $ 66 Balance Sheet (Selected Captions) As of March 31, 2019 (in millions) As Reported Amounts Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets: Receivables and contract assets, net of allowance for doubtful accounts $ 5,181 $ 5,199 $ (18 ) Other current assets $ 359 $ 411 $ (52 ) Deferred income taxes, net $ 355 $ 376 $ (21 ) Other assets $ 3,429 $ 3,451 $ (22 ) Liabilities: Accrued expenses and other current liabilities $ 3,355 $ 3,356 $ (1 ) Deferred revenue and advance contract payments $ 1,630 $ 1,717 $ (87 ) Income taxes payable $ 208 $ 206 $ 2 Non-current deferred revenue $ 256 $ 491 $ (235 ) Non-current income tax liabilities and deferred tax liabilities $ 1,184 $ 1,148 $ 36 Equity: Retained earnings $ 478 $ 301 $ 177 Accumulated other comprehensive loss $ (244 ) $ (239 ) $ (5 ) |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 Accrued expenses and other current liabilities $ 273 $ 367 Other long-term liabilities 106 153 Total $ 379 $ 520 |
Schedule of Restructuring Activities | Restructuring activities, summarized by plan year, were as follows: Restructuring Liability as of March 31, 2018 Costs Expensed, (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2019 Fiscal 2019 Plan Workforce Reductions $ — $ 363 $ (2 ) $ (218 ) $ (5 ) $ 138 Facilities Costs — 144 (6 ) (68 ) (2 ) 68 Total $ — $ 507 $ (8 ) $ (286 ) $ (7 ) $ 206 Fiscal 2018 Plan Workforce Reductions $ 257 $ (30 ) $ — $ (151 ) $ (17 ) $ 59 Facilities Costs 98 (14 ) (3 ) (40 ) (6 ) 35 Total $ 355 $ (44 ) $ (3 ) $ (191 ) $ (23 ) $ 94 Fiscal 2017 Plan Workforce Reductions $ 19 $ — $ — $ (12 ) $ — $ 7 Facilities Costs 3 — — (3 ) — — Total $ 22 $ — $ — $ (15 ) $ — $ 7 Other Prior Year Plans Workforce Reductions $ 4 $ — $ — $ (2 ) $ — $ 2 Facilities Costs 2 — — (1 ) — 1 Total $ 6 $ — $ — $ (3 ) $ — $ 3 Acquired Liabilities Workforce Reductions $ 110 $ 2 $ — $ (58 ) $ (3 ) $ 51 Facilities Costs 27 — — (9 ) — 18 Total $ 137 $ 2 $ — $ (67 ) $ (3 ) $ 69 (1) Costs expensed, net of reversals include $48 million , $3 million , and $1 million of costs reversed from the Fiscal 2018 Plan, Fiscal 2017 Plan and Other Prior Year Plans, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. Restructuring Liability as of March 31, 2017 Acquired Balance as of April 1, 2017 Costs Expensed, Net of Reversals (1) Costs Not Affecting Restructuring Liability (2) Cash Paid Other (3) Restructuring Liability as of March 31, 2018 Fiscal 2018 Plan Workforce Reductions $ — n/a $ 624 $ (10 ) $ (367 ) $ 10 $ 257 Facilities Costs — n/a 202 (4 ) (102 ) 2 98 Total $ — n/a $ 826 $ (14 ) $ (469 ) $ 12 $ 355 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 $ 255 $ — $ (2 ) $ (152 ) $ 9 $ 110 Facilities Costs n/a 70 (3 ) (3 ) (37 ) — 27 Total n/a $ 325 $ (3 ) $ (5 ) $ (189 ) $ 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 Plans, respectively. (2) Pension benefit augmentations recorded as a pension liability and asset impairment. (3) Foreign currency translation adjustments. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019 , were as follows: Fiscal year (in millions) Real Estate Equipment 2020 $ 409 $ 248 2021 288 119 2022 203 27 2023 159 4 2024 124 1 Thereafter 274 — Minimum fixed rentals 1,457 399 Less: Sublease rental income (149 ) — Totals $ 1,308 $ 399 |
Schedule of Long-term Purchase Agreements | Minimum purchase commitments as of March 31, 2019 were as follows: Fiscal year Minimum Purchase Commitment (1) (in millions) 2020 $ 2,286 2021 1,026 2022 488 2023 432 2024 243 Thereafter 25 Total $ 4,500 (1) A significant portion of the minimum purchase commitments in fiscal 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, 2019 : (in millions) Fiscal 2020 Fiscal 2021 Fiscal 2022 and Thereafter Totals Surety bonds $ 254 $ 125 $ 145 $ 524 Letters of credit 190 28 364 582 Stand-by letters of credit 81 81 13 175 Totals $ 525 $ 234 $ 522 $ 1,281 |
Reconciliation of Previously _2
Reconciliation of Previously Reported Amounts to Revised and Restated Financial Statements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Reconciliation of Previously Reported Amounts to Restated Amounts | Consolidated Statements of Cash Flows Fiscal Year Ended March 31, 2018 (in millions) As Previously Reported Retrospective Adoption of ASU 2016-15 As Adjusted Decrease (increase) in receivables $ 74 $ (538 ) $ (464 ) Net cash provided by operating activities $ 3,105 $ (538 ) $ 2,567 Deferred purchase price receivable $ 147 $ 538 $ 685 Net cash provided by investing activities $ 181 $ 538 $ 719 Fiscal Year Ended March 31, 2017 (in millions) As Previously Reported Retrospective Adoption of ASU 2016-15 As Adjusted Decrease (increase) in receivables $ 193 $ (218 ) $ (25 ) Net cash provided by operating activities $ 837 $ (218 ) $ 619 Deferred purchase price receivable $ 141 $ 218 $ 359 Net cash used in investing activities $ (783 ) $ 218 $ (565 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ / shares in Units, client in Thousands, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019USD ($)clientcountry$ / shares | Apr. 01, 2019USD ($) | Apr. 01, 2018USD ($) | Mar. 31, 2018USD ($)$ / shares | Apr. 01, 2017$ / shares | |
Retained Earnings Adjustments [Line Items] | |||||
Number of clients served | client | 6 | ||||
Number of countries in which entity operates | country | 70 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Amortization period | 5 years | ||||
Adjustment to retained earnings | $ 478 | $ 1,301 | |||
Income taxes payable | 208 | 127 | |||
Deferred revenue and advance contract payments | 1,630 | 1,641 | |||
Restricted cash | $ 68 | ||||
As Previously Reported | |||||
Retained Earnings Adjustments [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Retained Earnings Adjustments [Line Items] | |||||
Adjustment to retained earnings | 177 | $ 114 | |||
Accrued sales commission | 158 | ||||
Income taxes payable | 2 | (40) | |||
Deferred revenue and advance contract payments | $ (87) | (381) | |||
Other assets | $ (385) | ||||
Forecast | Minimum | Accounting Standards Update 2016-02 | |||||
Retained Earnings Adjustments [Line Items] | |||||
Right-of-use asset | $ 1,600 | ||||
Operating lease liability | 1,600 | ||||
Forecast | Maximum | Accounting Standards Update 2016-02 | |||||
Retained Earnings Adjustments [Line Items] | |||||
Right-of-use asset | 1,800 | ||||
Operating lease liability | $ 1,800 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Mar. 31, 2019 | |
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 Accoun_6
Summary of Significant Accounting Policies - Intangible Assets (Details) - Software | 12 Months Ended |
Mar. 31, 2019 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Acquisitions - Fiscal 2019 Acqu
Acquisitions - Fiscal 2019 Acquisitions (Details) $ in Millions | Oct. 01, 2018USD ($) | Mar. 31, 2019USD ($)acquisition | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 7,606 | $ 7,619 | $ 1,855 | |
Molina Medicaid Solutions | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | $ 233 | |||
Current assets acquired | 91 | |||
Intangible assets, other than goodwill | 112 | |||
Other assets(2) | 11 | |||
Current liabilities | 50 | |||
Other liabilities | 22 | |||
Goodwill | $ 91 | |||
Useful lives (years) | 13 years | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | 228 | |||
Current assets acquired | 73 | |||
Intangible assets, other than goodwill | 71 | |||
Other assets(2) | 10 | |||
Current liabilities | 63 | |||
Goodwill | $ 137 | |||
Number of businesses acquired | acquisition | 7 | |||
Payments to acquire businesses | $ 187 | |||
Contingent consideration | $ 41 |
Acquisitions - HPES Narrative (
Acquisitions - HPES Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 7,606 | $ 7,619 | $ 1,855 | |||
Net income (loss) | 1,262 | 1,782 | [1],[2] | (100) | [2] | |
Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued for each share of CSC common stock (in shares) | 1 | |||||
Equity interest issued (in shares) | 141,298,797 | |||||
Percentage ownership of CSC stockholders following the Merger | 49.90% | |||||
Goodwill | $ 7,392 | |||||
GBS | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 4,599 | 4,531 | 1,470 | |||
GBS | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 2,800 | |||||
GIS | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,007 | 3,088 | $ 385 | |||
GIS | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 2,600 | |||||
USPS | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 2,000 | |||||
Acquisition-related Costs | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Net income (loss) | $ (26) | |||||
Minimum | Customer relationships | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives (years) | 10 years | |||||
Minimum | Third-party purchased software | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives (years) | 2 years | |||||
Maximum | Customer relationships | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives (years) | 13 years | |||||
Maximum | Third-party purchased software | Hewlett Packard Enterprise Services | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives (years) | 7 years | |||||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | |||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
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 | Mar. 31, 2019 | Apr. 01, 2017 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 7,619 | $ 7,606 | $ 1,855 | |
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(2) | 6,016 | |||
Other assets(2) | 1,939 | |||
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 |
Acquisitions - Summary of HPE_2
Acquisitions - Summary of HPES Pro Forma Information (Details) - Hewlett Packard Enterprise Services $ / shares in Units, $ in Millions | 12 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
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) | $ / shares | $ (0.18) |
Diluted (in dollars per share) | $ / shares | $ (0.18) |
Acquisitions - Fiscal 2018 Acqu
Acquisitions - Fiscal 2018 Acquisitions (Details) - USD ($) $ in Millions | Jul. 01, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 7,606 | $ 7,619 | $ 1,855 | |
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 |
Acquisitions - Fiscal 2017 Acqu
Acquisitions - Fiscal 2017 Acquisitions (Details) - USD ($) | May 05, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Business Acquisition [Line Items] | ||||||
Payments for acquisitions, net of cash acquired | $ 365,000,000 | $ 203,000,000 | [1],[2] | $ 434,000,000 | [2] | |
Goodwill | 7,606,000,000 | 7,619,000,000 | 1,855,000,000 | |||
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(2) | 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 | 4,599,000,000 | 4,531,000,000 | 1,470,000,000 | |||
GBS | Xchanging | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 646,000,000 | |||||
GIS | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,007,000,000 | $ 3,088,000,000 | $ 385,000,000 | |||
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] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | |||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - Discontinued Operations, Disposed of by Means Other than Sale, Spinoff - USPS Separation | May 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Amount of cash consideration received | $ 984,000,000 |
Transaction consideration | 1,050,000,000 |
Debt assumed | 66,000,000 |
Gain (loss) on disposition | $ 0 |
Divestitures - Assets And Liabi
Divestitures - Assets And Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2018 |
Assets: | |||
Total current assets of discontinued operations | $ 0 | $ 581 | |
Total non-current assets of discontinued operations | 0 | 3,363 | |
Liabilities: | |||
Total current liabilities of discontinued operations | 0 | 789 | |
Total long-term liabilities of discontinued operations | $ 0 | 456 | |
USPS Separation | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Assets: | |||
Cash and cash equivalents | $ 95 | ||
Receivables, net | 458 | ||
Prepaid expenses | 82 | ||
Other current assets | 35 | ||
Total current assets of discontinued operations | 670 | ||
Intangible assets, net | 870 | ||
Goodwill | 2,029 | ||
Property and equipment, net | 294 | ||
Other assets | 169 | ||
Total non-current assets of discontinued operations | 3,362 | ||
Total assets | 4,032 | ||
Liabilities: | |||
Short-term debt and current maturities of long-term debt | 161 | ||
Accounts payable | 165 | ||
Accrued payroll and related costs | 17 | ||
Accrued expenses and other current liabilities | 358 | ||
Deferred revenue and advance contract payments | 53 | ||
Income tax payable | 18 | ||
Total current liabilities of discontinued operations | 772 | ||
Long-term debt, net of current maturities | 1,320 | ||
Non-current deferred revenue | 5 | ||
Non-current income tax liabilities and deferred tax liabilities | 196 | ||
Other long-term liabilities | 71 | ||
Total long-term liabilities of discontinued operations | 1,592 | ||
Total liabilities | $ 2,364 | ||
USPS Separation | Discontinued Operations - Held for sale | |||
Assets: | |||
Cash and cash equivalents | 68 | ||
Receivables, net | 432 | ||
Prepaid expenses | 75 | ||
Other current assets | 6 | ||
Total current assets of discontinued operations | 581 | ||
Intangible assets, net | 879 | ||
Goodwill | 2,033 | ||
Property and equipment, net | 283 | ||
Other assets | 168 | ||
Total non-current assets of discontinued operations | 3,363 | ||
Total assets | 3,944 | ||
Liabilities: | |||
Short-term debt and current maturities of long-term debt | 155 | ||
Accounts payable | 195 | ||
Accrued payroll and related costs | 22 | ||
Accrued expenses and other current liabilities | 346 | ||
Deferred revenue and advance contract payments | 53 | ||
Income tax payable | 18 | ||
Total current liabilities of discontinued operations | 789 | ||
Long-term debt, net of current maturities | 214 | ||
Non-current deferred revenue | 7 | ||
Non-current income tax liabilities and deferred tax liabilities | 163 | ||
Other long-term liabilities | 72 | ||
Total long-term liabilities of discontinued operations | 456 | ||
Total liabilities | $ 1,245 |
Divestitures - Income Statement
Divestitures - Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total income from discontinued operations | $ 35 | $ 236 | $ 0 |
USPS Separation | 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] | |||
Revenue | 431 | 2,823 | |
Costs of services | 311 | 2,104 | |
Selling, general and administrative | 50 | 152 | |
Depreciation and amortization | 33 | 169 | |
Restructuring costs | 1 | 14 | |
Interest expense | 8 | 15 | |
Other income, net | (25) | 2 | |
Total costs and expenses | 378 | 2,456 | |
Total income from discontinued operations, before income taxes | 53 | 367 | |
Income tax expense | 18 | 131 | |
Total income from discontinued operations | $ 35 | $ 236 |
Divestitures - Cash Flow (Detai
Divestitures - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Depreciation expense | $ 820 | $ 709 | $ 338 | ||
Capital expenditures | (297) | (224) | [1],[2] | $ (246) | [2] |
USPS Separation | 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 expense | 16 | 70 | |||
Amortization | 17 | 99 | |||
Capital expenditures | 0 | (18) | |||
Gain on dispositions | $ 24 | $ 0 | |||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
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, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) attributable to DXC common shareholders: | |||
From continuing operations | $ 1,222 | $ 1,515 | $ (123) |
From discontinued operations | 35 | 236 | 0 |
Net income (loss) attributable to DXC common stockholders | $ 1,257 | $ 1,751 | $ (123) |
Common share information: | |||
Weighted average common shares outstanding for basic EPS (in shares) | 277,540 | 284,930 | 140,390 |
Dilutive effect of stock options and equity awards (in shares) | 3,890 | 4,840 | 0 |
Weighted average common shares outstanding for diluted EPS (in shares) | 281,430 | 289,770 | 140,390 |
Basic EPS: | |||
Continuing operations (in dollars per share) | $ 4.40 | $ 5.32 | $ (0.88) |
Discontinued operations (in dollars per share) | 0.13 | 0.83 | 0 |
Basic EPS (in dollars per share) | 4.53 | 6.15 | (0.88) |
Diluted EPS: | |||
Continuing operations (in dollars per share) | 4.35 | 5.23 | (0.88) |
Discontinued operations (in dollars per share) | 0.12 | 0.81 | 0 |
Diluted EPS (in dollars per share) | $ 4.47 | $ 6.04 | $ (0.88) |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 0 | 3,317,041 |
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) | 46,051 | 54,637 | 845,315 |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 25,086 | 96,029 | 1,540,152 |
Receivables - Receivables, Net
Receivables - Receivables, Net of Allowance (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net of allowance for doubtful accounts | $ 5,181 | $ 5,481 |
Billed trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net of allowance for doubtful accounts | 2,508 | 3,110 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net of allowance for doubtful accounts | 1,114 | 1,273 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net of allowance for doubtful accounts | $ 1,559 | $ 1,098 |
Receivables - Allowance for Dou
Receivables - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 40 | $ 26 | $ 31 |
Additions charged to costs and expenses | 19 | 45 | 10 |
Deductions | (4) | (37) | (13) |
Other | 5 | 6 | (2) |
Ending balance | $ 60 | $ 40 | $ 26 |
Receivables - Sale of Receivabl
Receivables - Sale of Receivables (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 21, 2016 | |
Receivables [Abstract] | |||
Accounts receivable securitization facility, amount | $ 600,000,000 | ||
Availability under securitization facility | $ 434,000,000 | ||
Drawn amount | 413,000,000 | ||
Receivable | $ 21,000,000 | ||
Length of extension | 1 year | ||
Gain (loss) on sale of receivables | $ 0 | $ 0 | |
Transfer of Financial Assets Accounted for as Sales, Deferred Purchase Price [Roll Forward] | |||
Deferred purchase price receivable, Beginning balance | 233,000,000 | 252,000,000 | |
Transfers of receivables | 5,435,000,000 | 2,192,000,000 | |
Collections | (4,393,000,000) | (2,225,000,000) | |
Change in funding availability | (246,000,000) | 30,000,000 | |
Facility amendments | (457,000,000) | 0 | |
Fair value adjustment | 2,000,000 | (16,000,000) | |
Deferred purchase price receivable, Ending balance | 574,000,000 | $ 233,000,000 | |
Transfers of receivables | 464,000,000 | ||
Collections | 521,000,000 | ||
Operating cash flow effect | $ (57,000,000) |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Recurring | ||
Assets: | ||
Money market funds and money market deposit accounts | $ 6 | $ 84 |
Time deposits | 194 | 114 |
Other debt securities | 53 | 59 |
Deferred purchase price receivable | 574 | 233 |
Total assets | 827 | 490 |
Liabilities: | ||
Contingent consideration | 41 | 5 |
Total liabilities | 41 | 5 |
Recurring | Level 1 | ||
Assets: | ||
Money market funds and money market deposit accounts | 6 | 84 |
Time deposits | 194 | 114 |
Other debt securities | 0 | 0 |
Deferred purchase price receivable | 0 | 0 |
Total assets | 200 | 198 |
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 | 0 |
Other debt securities | 49 | 53 |
Deferred purchase price receivable | 0 | 0 |
Total assets | 49 | 53 |
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 | 0 |
Other debt securities | 4 | 6 |
Deferred purchase price receivable | 574 | 233 |
Total assets | 578 | 239 |
Liabilities: | ||
Contingent consideration | 41 | 5 |
Total liabilities | 41 | 5 |
Other Debt Securities | ||
Liabilities: | ||
Available-for-sale, cost basis | 38 | 42 |
Available-for-sale, unrealized gain | $ 11 | $ 11 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | $ 5,470 | $ 6,092 |
Impairment of goodwill | 0 | 0 |
Impairment of tangible assets | 0 | 0 |
Impairment of intangible assets | 0 | 0 |
Impairment of long-lived assets | 0 | 0 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | 5,600 | 6,100 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, net of current maturities | $ 5,600 | $ 5,900 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Millions | 12 Months Ended | |
Mar. 31, 2019USD ($)counterparty | Mar. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of counterparties | counterparty | 5 | |
Maximum exposure | $ 29 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of foreign currency forward contracts designated as cash flow hedges | 277 | $ 634 |
Foreign currency cash flow hedge gain to be reclassified into earnings during next 12 months | 1 | |
Loss on derivatives in other comprehensive income (loss) | 1 | |
Loss on derivative instruments | 10 | |
Designated as Hedging Instrument | Terminated Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of derivatives outstanding | 375 | |
Derivative fair value | 5 | |
Hedge gain | 5 | |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 635 | |
Not Designated as Hedging Instrument | Foreign currency forward contracts(1) | ||
Derivative [Line Items] | ||
Notional amount of derivatives outstanding | 2,500 | $ 3,100 |
Net Investment Hedging | Designated as Hedging Instrument | Foreign currency forward contracts(1) | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 1,700 |
Derivative Instruments - Nondes
Derivative Instruments - Nondesignated Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign currency forward contracts(1) | Other expense (income), net | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Pretax gain (loss) on derivative instruments | $ 16 | $ 118 | $ (84) |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 38 | $ 20 |
Derivative liability, fair value | 4 | 3 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 0 | 6 |
Designated as Hedging Instrument | Other current assets | Foreign currency forward contracts(1) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 38 | 14 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency forward contracts(1) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 4 | 3 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 5 | 4 |
Derivative liability, fair value | 9 | 6 |
Not Designated as Hedging Instrument | Other current assets | Foreign currency forward contracts(1) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 5 | 4 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency forward contracts(1) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 9 | $ 6 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment—at cost | $ 7,137 | $ 7,049 | |
Less: accumulated depreciation | 3,958 | 3,686 | |
Property and equipment, net | 3,179 | 3,363 | |
Depreciation expense | 820 | 709 | $ 338 |
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment—at cost | 2,180 | 2,464 | |
Computers and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment—at cost | 4,719 | 4,185 | |
Furniture and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment—at cost | 224 | 323 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment—at cost | $ 14 | $ 77 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 9,338 | $ 8,979 |
Accumulated Amortization | 3,399 | 2,603 |
Net Carrying Value | 5,939 | 6,376 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,864 | 3,484 |
Accumulated Amortization | 2,235 | 1,918 |
Net Carrying Value | 1,629 | 1,566 |
Customer related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,389 | 5,405 |
Accumulated Amortization | 1,139 | 666 |
Net Carrying Value | 4,250 | 4,739 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 85 | 90 |
Accumulated Amortization | 25 | 19 |
Net Carrying Value | $ 60 | $ 71 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,148 | $ 1,086 | $ 309 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Fiscal 2020 | 954 | ||
Fiscal 2021 | 919 | ||
Fiscal 2022 | 780 | ||
Fiscal 2023 | 696 | ||
Fiscal 2024 | 639 | ||
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 890 | 860 | 230 |
Transition and transformation contract costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 258 | $ 226 | $ 79 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, gross | $ 10,381 | |
Accumulated impairment losses | (2,762) | |
Goodwill, net, beginning of period | 7,619 | $ 1,855 |
Acquisitions | 228 | 5,475 |
Divestitures | (12) | |
Foreign currency translation | (229) | 289 |
Goodwill, gross | 10,368 | 10,381 |
Accumulated impairment losses | (2,762) | (2,762) |
Goodwill, net, end of period | 7,606 | 7,619 |
GBS | ||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, gross | 5,232 | |
Accumulated impairment losses | (701) | |
Goodwill, net, beginning of period | 4,531 | 1,470 |
Acquisitions | 228 | 2,877 |
Divestitures | (12) | |
Foreign currency translation | (148) | 184 |
Goodwill, gross | 5,300 | 5,232 |
Accumulated impairment losses | (701) | (701) |
Goodwill, net, end of period | 4,599 | 4,531 |
GIS | ||
Changes in the carrying amount of goodwill by segment [Roll Forward] | ||
Goodwill, gross | 5,149 | |
Accumulated impairment losses | (2,061) | |
Goodwill, net, beginning of period | 3,088 | 385 |
Acquisitions | 0 | 2,598 |
Divestitures | 0 | |
Foreign currency translation | (81) | 105 |
Goodwill, gross | 5,068 | 5,149 |
Accumulated impairment losses | (2,061) | (2,061) |
Goodwill, net, end of period | $ 3,007 | $ 3,088 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||||||
Domestic entities | $ 511 | $ 454 | $ (157) | ||||
Entities outside the United States | 1,004 | 850 | (17) | ||||
Income (loss) from continuing operations, before taxes | $ 1,515 | $ 1,304 | $ (174) | ||||
Income Tax Contingency [Line Items] | |||||||
Statutory rate | 21.00% | 31.50% | 35.00% | ||||
Capital expensing, provisional income tax expense (benefit) | $ (61) | $ (87) | |||||
Executive compensation, provisional income tax expense (benefit) | 2 | ||||||
Provisional deferred income tax benefit | 338 | ||||||
Deferred tax liability, provisional income tax (expense) benefit | 338 | ||||||
Provisional income tax expense for transition tax | $ 361 | ||||||
Transition tax, period adjustment, income tax expense (benefit) | (69) | $ 25 | $ (44) | ||||
Effective income tax rate reconciliation, Tax Cuts and Jobs Act of 2017, transition tax on accumulated foreign earnings, percent | (3.90%) | 27.70% | |||||
Transition tax, provisional liability | $ 316 | ||||||
Transition tax, income tax liability | 324 | ||||||
Transition tax, unrecognized tax benefit receivable | (8) | ||||||
Undistributed accumulated earnings of foreign subsidiary, withholding taxes | $ 12 | ||||||
Undistributed accumulated earnings of foreign subsidiary, state taxes | 7 | ||||||
Undistributed accumulated earnings of foreign subsidiary, period adjustment, income tax expense (benefit) | $ 9 | ||||||
Non-current transition tax included in current provision (benefit) | (44) | 332 | |||||
Interest and penalties for uncertain tax positions included in current provision (benefit) | 1 | 2 | $ (9) | ||||
Deferred tax liability | 1,118 | 1,044 | |||||
Deferred tax liabilities, foreign withholding taxes | 17 | ||||||
Deferred tax liabilities, state taxes | 11 | ||||||
Valuation allowance | 1,575 | 1,440 | |||||
Net increase (decrease) in deferred tax asset valuation allowance | $ 135 | ||||||
Holiday tax incentives in India | |||||||
Income Tax Contingency [Line Items] | |||||||
Additional year of tax holiday extension | 2026 | ||||||
Income tax holiday | $ 2 | $ 5 | $ 1 | ||||
Income tax holiday (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.01 | ||||
Internal Revenue Service | |||||||
Income Tax Contingency [Line Items] | |||||||
Liability for uncertain tax positions that if recognized would affect the effective tax rate | $ 138 | $ 170 | $ 149 | ||||
Hewlett Packard Enterprise Services | |||||||
Income Tax Contingency [Line Items] | |||||||
Accrued income taxes | $ 20 | ||||||
Net uncertain tax positions | 49 | ||||||
Other tax payables | 133 | ||||||
Other tax receivables | 162 | ||||||
Hewlett Packard Enterprise Services | Domestic Tax Authority | |||||||
Income Tax Contingency [Line Items] | |||||||
Deferred tax liability | 554 | ||||||
India | |||||||
Income Tax Contingency [Line Items] | |||||||
Undistributed accumulated earnings of foreign subsidiary, dividend distribution tax | 80 | ||||||
Deferred tax liability | $ 46 | ||||||
Currency Translation Adjustment | Luxembourg | |||||||
Income Tax Contingency [Line Items] | |||||||
Net increase (decrease) in deferred tax asset valuation allowance | $ (122) | ||||||
Discontinued Operations | USPS Separation | |||||||
Income Tax Contingency [Line Items] | |||||||
Accrued income taxes | 24 | ||||||
Income tax receivable | 94 | ||||||
Other tax payables | $ 70 | ||||||
Germany | |||||||
Income Tax Contingency [Line Items] | |||||||
Net increase (decrease) in deferred tax asset valuation allowance | $ (113) |
Income Taxes - Tax Expense (Ben
Income Taxes - Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ (50) | $ 392 | $ (32) |
State | 42 | 16 | 14 |
Foreign | 218 | 247 | 36 |
Total Current | 210 | 655 | 18 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 95 | (899) | (7) |
State | 23 | (59) | (1) |
Foreign | (40) | 61 | (84) |
Total Deferred | 78 | (897) | (92) |
Total income tax (benefit) expense | $ 288 | $ (242) | $ (74) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 21.00% | 31.50% | 35.00% |
State income tax, net of federal tax | 3.20% | 2.00% | 4.00% |
United States Tax Reform | (3.40%) | (40.60%) | 0.00% |
Change in Indefinite Reinvestment Assertion | (3.10%) | 3.30% | 0.00% |
Loss of attributes due to merger | 0.00% | 5.10% | 0.00% |
Change in uncertain tax positions | (1.50%) | (0.20%) | 3.40% |
Foreign tax rate differential | (18.40%) | (5.70%) | 40.00% |
Capitalized transaction costs | 0.10% | 1.00% | (12.10%) |
Change in valuation allowances | 16.90% | (7.70%) | (34.30%) |
Excess tax benefits for stock compensation | (1.10%) | (3.00%) | 11.30% |
Prepaid tax asset amortization | 0.00% | 0.30% | (7.10%) |
Income Tax and Foreign Tax Credits | (0.60%) | (7.60%) | 2.00% |
U.S. Tax on Foreign Income | (2.40%) | (2.10%) | (2.60%) |
Withholding Taxes | (3.50%) | (2.30%) | (1.10%) |
Other items, net | 0.00% | (1.40%) | (3.40%) |
Effective tax rate | 19.00% | (18.60%) | 42.50% |
Income Taxes - Effective Tax _2
Income Taxes - Effective Tax Rate Reconciliation, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 256 | ||
Change in valuation allowances | 16.90% | (7.70%) | (34.30%) |
Effective income tax rate reconciliation, change in deferred revenue accounting method, amount | $ 66 | ||
Effective income tax rate reconciliation, change in deferred revenue accounting method, percent | 4.30% | ||
Effective income tax rate reconciliation, foreign subsidiary basis, amount | $ (554) | ||
Effective income tax rate reconciliation, foreign subsidiary basis, percentage | 42.50% | ||
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 | (3.90%) | 27.70% | |
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 | 25.90% | ||
Effective income tax rate reconciliation, nondeductible transaction costs, amount | $ 21 | ||
Effective income tax rate reconciliation, nondeductible transaction costs, percent | 0.10% | 1.00% | (12.10%) |
Effective income tax rate reconciliation, change in accounting policy, amount | $ 20 | ||
Excess tax benefits for stock compensation | (1.10%) | (3.00%) | 11.30% |
Luxembourg | |||
Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, gain (loss) on investments, amount | $ 360 | ||
Effective income tax rate reconciliation, gain (loss) on investments, percent | 23.70% | ||
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%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets | ||
Employee benefits | $ 79 | $ 156 |
Tax loss/credit carryforwards | 1,917 | 1,665 |
Accrued interest | 16 | 18 |
Contract accounting | 130 | 134 |
Other assets | 139 | 232 |
Total deferred tax assets | 2,281 | 2,205 |
Valuation allowance | (1,575) | (1,440) |
Net deferred tax assets | 706 | 765 |
Deferred tax liabilities | ||
Depreciation and amortization | (994) | (888) |
Investment basis differences | (61) | (62) |
Other liabilities | (63) | (94) |
Total deferred tax liabilities | (1,118) | (1,044) |
Total net deferred tax assets (liabilities) | $ (412) | $ (279) |
Income Taxes - Income Tax Relat
Income Taxes - Income Tax Related Assets And Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Current assets: | ||
Income tax receivables and prepaid taxes | $ 113 | $ 154 |
Non-current: | ||
Income taxes receivable and prepaid taxes | 137 | 30 |
Deferred tax assets | 355 | 373 |
Deferred tax assets, noncurrent | 492 | 403 |
Deferred tax assets, total | 605 | 557 |
Current liabilities: | ||
Liability for Uncertainty in Income Taxes, Current | 0 | (15) |
Income taxes payable | (208) | (112) |
Deferred tax liabilities, current | (208) | (127) |
Non-current: | ||
Deferred taxes | (767) | (652) |
Income taxes payable | (201) | (278) |
Liability for uncertain tax positions | (216) | (236) |
Deferred tax liabilities, noncurrent | (1,184) | (1,166) |
Deferred tax liabilities, total | (1,392) | (1,293) |
Valuation allowance | 1,575 | $ 1,440 |
Net increase (decrease) in deferred tax asset valuation allowance | $ 135 |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 25 | $ 41 |
Net operating loss carryforward with no expiration | 0 | 0 |
Net operating loss carryforward with expiration | 25 | 41 |
Tax credit carryforwards | 0 | 0 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 0 | 0 |
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 | 845 | 873 |
Net operating loss carryforward with no expiration | 9 | 0 |
Net operating loss carryforward with expiration | 836 | 873 |
Tax credit carryforwards | 23 | 28 |
Tax credit carryforwards with no expiration | 7 | 7 |
Tax credit carryforwards with expiration | 16 | 21 |
Capital loss carryforwards | 0 | 0 |
Capital loss carryforwards with no expiration | 0 | 0 |
Capital loss carryforwards with expiration | 0 | 0 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 7,595 | 6,522 |
Net operating loss carryforward with no expiration | 7,292 | 6,287 |
Net operating loss carryforward with expiration | 303 | 235 |
Tax credit carryforwards | 18 | 21 |
Tax credit carryforwards with no expiration | 0 | 0 |
Tax credit carryforwards with expiration | 18 | 21 |
Capital loss carryforwards | 236 | 240 |
Capital loss carryforwards with no expiration | 211 | 193 |
Capital loss carryforwards with expiration | $ 25 | $ 47 |
Income Taxes - Income Tax Conti
Income Taxes - Income Tax Contingency (Details) - USD ($) | 12 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Liability For Uncertain Tax Positions [Abstract] | ||||||
Tax | $ 219,000,000 | $ 192,000,000 | $ 180,000,000 | $ 165,000,000 | $ 219,000,000 | $ 192,000,000 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance at beginning of fiscal year | 219,000,000 | 192,000,000 | 180,000,000 | |||
Gross increases related to prior year tax positions | 4,000,000 | 10,000,000 | 14,000,000 | |||
Gross decreases related to prior year tax positions | (27,000,000) | (12,000,000) | (12,000,000) | |||
Gross increases related to current year tax positions | 0 | 7,000,000 | 10,000,000 | |||
Settlements and statute of limitation expirations | (23,000,000) | (19,000,000) | (7,000,000) | |||
Acquisitions | 0 | 39,000,000 | 6,000,000 | |||
Foreign exchange and others | (8,000,000) | 2,000,000 | 1,000,000 | |||
Balance at end of fiscal year | 165,000,000 | 219,000,000 | 192,000,000 | |||
Internal Revenue Service | ||||||
Liability For Uncertain Tax Positions [Abstract] | ||||||
Tax | 219,000,000 | 219,000,000 | 165,000,000 | 219,000,000 | ||
Interest | 41,000,000 | 40,000,000 | 25,000,000 | |||
Penalties | 25,000,000 | 25,000,000 | 11,000,000 | |||
Net of tax attributes | (15,000,000) | (33,000,000) | ||||
Total | 216,000,000 | 251,000,000 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance at beginning of fiscal year | 219,000,000 | |||||
Balance at end of fiscal year | 165,000,000 | 219,000,000 | ||||
Interest Accrued Related to Uncertain Tax Positions and Penalties [Abstract] | ||||||
Interest | 2,000,000 | 2,000,000 | (8,000,000) | |||
Interest, net of tax | 1,000,000 | 2,000,000 | (9,000,000) | |||
Accrued penalties | $ (1,000,000) | $ 0 | $ 0 | |||
Liability for interest | 41,000,000 | 40,000,000 | 25,000,000 | |||
Liability for interest, net of tax | 36,000,000 | 36,000,000 | 20,000,000 | |||
Liability for penalties | $ 25,000,000 | $ 25,000,000 | $ 11,000,000 |
Income Taxes - Income Tax Exami
Income Taxes - Income Tax Examination (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Settlement with Taxing Authority | |
Income Tax Examination [Line Items] | |
Reasonably possible reduction in liability for uncertain tax positions | $ 9 |
United States – Federal | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2008 and forward |
United States – Various States | |
Income Tax Examination [Line Items] | |
Tax years that remain subject to examination (Fiscal Year Ending) | 2008 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, 2019USD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | |
Short-term debt and current maturities of long-term debt | |||||
Short term debt | $ 694,000,000 | $ 863,000,000 | |||
Current maturities of long-term debt | 766,000,000 | 439,000,000 | |||
Current maturities of capitalized lease liabilities | 482,000,000 | 616,000,000 | |||
Short-term debt and current maturities of long-term debt | 1,942,000,000 | 1,918,000,000 | |||
Long-term debt, net of current maturities | |||||
Long term debt | 6,718,000,000 | 7,147,000,000 | |||
Less: current maturities | 1,248,000,000 | 1,055,000,000 | |||
Long-term debt, net of current maturities | 5,470,000,000 | 6,092,000,000 | |||
Capitalized lease liabilities | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 1,127,000,000 | 1,235,000,000 | |||
Borrowings for assets acquired under long-term financing | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 462,000,000 | 405,000,000 | |||
Mandatorily redeemable preferred stock outstanding, due March 2023 | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 62,000,000 | 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 | $ 109,000,000 | 113,000,000 | |||
GBP term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 0 | 260,000,000 | |||
EUR term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 0 | 493,000,000 | |||
AUD term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 567,000,000 | 0 | |||
AUD term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 0 | 210,000,000 | |||
GBP term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 583,000,000 | 0 | |||
EUR term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 0 | 187,000,000 | |||
Debt Information [Abstract] | |||||
Effective interest rate | 0.90% | 0.90% | 0.90% | ||
USD term loan | Loans payable | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 0 | 899,000,000 | |||
$500 million Senior notes | Senior notes | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 502,000,000 | 502,000,000 | |||
Debt Information [Abstract] | |||||
Effective interest rate | 2.875% | 2.875% | 2.875% | ||
Face amount | $ 500,000,000 | ||||
$500 million Senior notes | Senior notes | |||||
Long-term debt, net of current maturities | |||||
Long term debt | 498,000,000 | 646,000,000 | |||
Debt Information [Abstract] | |||||
Face amount | 500,000,000 | ||||
$274 million Senior notes | Senior notes | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 277,000,000 | 278,000,000 | |||
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 | $ 172,000,000 | 173,000,000 | |||
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 | $ 506,000,000 | 507,000,000 | |||
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 | $ 322,000,000 | 346,000,000 | |||
Debt Information [Abstract] | |||||
Effective interest rate | 2.75% | 2.75% | 2.75% | ||
Face amount | £ | £ 250,000,000 | ||||
€650 million Senior Notes | Senior notes | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 725,000,000 | 0 | |||
Debt Information [Abstract] | |||||
Effective interest rate | 1.75% | 1.75% | 1.75% | ||
Face amount | € | € 650,000,000 | ||||
$500 million Senior notes | Senior notes | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 508,000,000 | 509,000,000 | |||
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 | $ 273,000,000 | 277,000,000 | |||
Debt Information [Abstract] | |||||
Effective interest rate | 7.45% | 7.45% | 7.45% | ||
Face amount | $ 234,000,000 | ||||
Lease credit facility | Secured debt | |||||
Long-term debt, net of current maturities | |||||
Long term debt | $ 25,000,000 | $ 46,000,000 | |||
Minimum | Capitalized lease liabilities | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 1.00% | 1.00% | 1.00% | ||
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 | 1.30% | 1.30% | 1.30% | ||
Minimum | AUD term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 2.70% | 2.70% | 2.70% | ||
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 | 3.10% | 3.10% | 3.10% | ||
Minimum | $500 million Senior notes | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 3.00% | 3.00% | 3.00% | ||
Minimum | Lease credit facility | Secured debt | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 2.20% | 2.20% | 2.20% | ||
Maximum | Capitalized lease liabilities | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 12.00% | 12.00% | 12.00% | ||
Maximum | Borrowings for assets acquired under long-term financing | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 4.50% | 4.50% | 4.50% | ||
Maximum | Other borrowings | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 7.40% | 7.40% | 7.40% | ||
Maximum | GBP term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 1.50% | 1.50% | 1.50% | ||
Maximum | AUD term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 2.90% | 2.90% | 2.90% | ||
Maximum | AUD term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 3.30% | 3.30% | 3.30% | ||
Maximum | USD term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 3.30% | 3.30% | 3.30% | ||
Maximum | $500 million Senior notes | Loans payable | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 3.80% | 3.80% | 3.80% | ||
Maximum | Lease credit facility | Secured debt | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 3.50% | 3.50% | 3.50% | ||
Euro-denominated commercial paper | |||||
Debt Information [Abstract] | |||||
Amount of multi-year committed revolving credit facility | € | € 1,000,000,000 | ||||
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% | ||
Capital Lease Obligations | Minimum | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 1.00% | 1.00% | 1.00% | ||
Capital Lease Obligations | Maximum | |||||
Debt Information [Abstract] | |||||
Effective interest rate | 12.00% | 12.00% | 12.00% | ||
LIBOR | GBP term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Basis spread on variable rate | 0.65% | ||||
EURIBOR | EUR term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Basis spread on variable rate | 1.75% | ||||
Bank Bill Swap Bid Rate | Minimum | AUD term loan | Loans payable | |||||
Debt Information [Abstract] | |||||
Basis spread on variable rate | 0.60% | ||||
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 | 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 | GBP term loan | Senior notes | |||||
Debt Information [Abstract] | |||||
Basis spread on variable rate | 0.80% | ||||
Three-month LIBOR | $500 million Senior notes | Senior notes | |||||
Debt Information [Abstract] | |||||
Basis spread on variable rate | 0.95% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 31, 2019USD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019EUR (€) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Capital leased assets, gross | $ 2,200,000,000 | $ 3,500,000,000 | ||
Capital leased assets, accumulated depreciation | 1,000,000,000 | $ 2,300,000,000 | ||
£250 million Senior notes | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | £ | £ 250,000,000 | |||
€650 million Senior Notes | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € | € 650,000,000 | |||
$500 million Senior notes | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 500,000,000 |
Debt - Future Minimum Capital L
Debt - Future Minimum Capital Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Capital Lease Obligations [Abstract] | ||
2020 | $ 509 | |
2021 | 310 | |
2022 | 212 | |
2023 | 128 | |
2024 | 36 | |
Thereafter | 0 | |
Total minimum lease payments | 1,195 | |
Less: Amount representing interest and executory costs | (68) | |
Present value of net minimum lease payments | 1,127 | |
Less: Current maturities of capital lease obligations | (482) | $ (616) |
Long-term capitalized lease liabilities | $ 645 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term Debt (Details) $ in Millions | Mar. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 766 |
2021 | 1,221 |
2022 | 722 |
2023 | 547 |
2024 | 21 |
Thereafter | 2,314 |
Total | $ 5,591 |
Pension and Other Benefit Pla_3
Pension and Other Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Oct. 26, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Prior service cost | $ 28 | |||
Vesting period | 1 year | |||
Defined contribution plan contribution | $ 219 | $ 245 | $ 124 | |
Shares of company common stock held in defined contribution plan assets | 3,737,298 | |||
Deferred compensation plan, liability | $ 59 | 65 | ||
Deferred compensation plan, expense | 2 | 4 | 5 | |
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 | 3 | $ 13 | $ 1 | |
Estimated future amortization of prior service credit | $ (9) | |||
Non-employee directors | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plan, maximum deferral percentage | 100.00% |
Pension and Other Benefit Pla_4
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, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Assets assumed as a result of the HPES merger | $ 0 | $ 7,411 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | 11,384 | 3,297 | |
Benefit obligation assumed as a result of the HPES merger | 0 | 7,351 | |
Service cost | 88 | 121 | $ 23 |
Interest cost | 253 | 249 | 82 |
Plan participants’ contributions | 13 | 16 | |
Amendments | 27 | (44) | |
Business/contract acquisitions/divestitures | 0 | 69 | |
Contractual termination benefits | 3 | 13 | |
Settlement/curtailment | (49) | (65) | |
Actuarial loss (gain) | 286 | (332) | |
Benefits paid | (344) | (447) | |
Foreign currency exchange rate changes | (818) | 1,170 | |
Other | 173 | (14) | |
Projected benefit obligation at end of year | $ 11,016 | $ 11,384 | 3,297 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.40% | 2.50% | |
Rates of increase in compensation levels | 2.00% | 2.00% | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 11,574 | $ 2,998 | |
Actual return on plan assets | 700 | 371 | |
Employer contribution | 78 | 83 | |
Plan participants’ contributions | 13 | 16 | |
Benefits paid | (344) | (447) | |
Business/contract acquisitions/divestitures | 0 | (2) | |
Contractual termination benefits | 17 | 4 | |
Plan settlement | (38) | (22) | |
Foreign currency exchange rate changes | (837) | 1,176 | |
Other | 180 | (14) | |
Fair value of plan assets at end of year | 11,343 | 11,574 | $ 2,998 |
Funded status at end of year | $ 327 | $ 190 |
Pension and Other Benefit Pla_5
Pension and Other Benefit Plans - Special 2017 Transaction Narrative (Details) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Defined Benefit Plan Disclosure [Line Items] | |||||
Proceeds from structured sale of facility | $ 0 | $ 0 | [1],[2] | $ 85,000,000 | [2] |
Lease obligation | 645,000,000 | ||||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | $ 78,000,000 | $ 83,000,000 | |||
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 | ||||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
Pension and Other Benefit Pla_6
Pension and Other Benefit Plans - Pension Plan, Amounts Recognized in Balance Sheet (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Other assets | $ 1,157 | $ 1,118 |
Accrued expenses and other current liabilities | (20) | (28) |
Non-current pension obligations | (790) | (879) |
Other long-term liabilities - OPEB | (20) | (21) |
Net amount recorded | 327 | 190 |
Accumulated benefit obligation | $ 10,893 | $ 11,241 |
Pension and Other Benefit Pla_7
Pension and Other Benefit Plans - Pension Plan, Assumptions and Other Selected Information (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | $ 2,329 | $ 2,488 |
Accumulated benefit obligation | 2,230 | 2,363 |
Fair value of plan assets | 1,494 | 1,552 |
Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | 2,070 | 2,250 |
Accumulated benefit obligation | 2,004 | 2,162 |
Fair value of plan assets | $ 1,255 | $ 1,338 |
Pension and Other Benefit Pla_8
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, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 88 | $ 121 | $ 23 |
Interest cost | 253 | 249 | 82 |
Expected return on assets | (570) | (534) | (161) |
Amortization of transition obligation | 0 | 1 | 1 |
Amortization of prior service costs | (15) | (18) | (17) |
Contractual termination benefits | 3 | 13 | 1 |
Settlement/curtailment gain | (10) | (42) | 0 |
Recognition of actuarial loss (gain) | 153 | (178) | 87 |
Net periodic pension (income) expense | $ (98) | $ (388) | $ 16 |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount or settlement rates | 2.50% | 2.50% | 3.10% |
Expected long-term rates of return on assets | 5.30% | 4.90% | 6.30% |
Rates of increase in compensation levels | 2.10% | 2.70% | 2.60% |
Employer contributions: | |||
2020 | $ 82 | ||
Benefit Payments: | |||
2020 | 319 | ||
2021 | 305 | ||
2022 | 358 | ||
2023 | 300 | ||
2024 | 302 | ||
2025 and thereafter | 1,610 | ||
Total | $ 3,194 |
Pension and Other Benefit Pla_9
Pension and Other Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ (195) | $ (298) |
Pension and Other Benefit Pl_10
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, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 11,343 | $ 11,574 | $ 2,998 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 788 | 788 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,523 | 9,899 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,032 | 887 | $ 348 |
US Domestic Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
US Domestic Stocks | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
US Domestic Stocks | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
US Domestic Stocks | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Global Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23 | ||
Global Stocks | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | ||
Global Stocks | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | ||
Global Stocks | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Global/International Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,555 | 2,443 | |
Global/International Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 399 | 465 | |
Global/International Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,156 | 1,978 | |
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 | 374 | 341 | |
Global equity mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 8 | |
Global equity mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 325 | 333 | |
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 | 11 | 49 | |
U.S./North American Equity commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
U.S./North American Equity commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 46 | |
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 | 244 | 56 | |
Non-U.S. Government funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 215 | 2 | |
Non-U.S. Government funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 54 | |
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 | 4,813 | 6,095 | |
Fixed income commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 3 | |
Fixed income commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,807 | 6,092 | |
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 | 2 | 3 | |
Fixed income mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Fixed income mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | ||
Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | ||
Corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other Alternatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,868 | 2,106 | |
Other Alternatives | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 4 | |
Other Alternatives | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,880 | 1,228 | |
Other Alternatives | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 982 | 874 | |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 2 | |
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 | 8 | 2 | |
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 | 36 | 3 | |
Other Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Assets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36 | 3 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 122 | 170 | |
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 | 108 | 160 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 10 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 283 | 305 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 99 | 300 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 184 | 5 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Benefit Pl_11
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, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 11,574 | $ 2,998 |
Changes due to exchange rates | 818 | (1,170) |
Fair value of plan assets at end of year | 11,343 | 11,574 |
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 | 887 | 348 |
Actual return on plan assets held at the reporting date | (13) | 34 |
Purchases, sales, and settlements | 217 | 443 |
Transfers in and / or out of Level 3 | 5 | |
Changes due to exchange rates | (64) | 62 |
Fair value of plan assets at end of year | $ 1,032 | $ 887 |
Pension and Other Benefit Pl_12
Pension and Other Benefit Plans - Asset Allocations (Details) - Pension Plans, Defined Benefit | Mar. 31, 2019 | Mar. 31, 2018 |
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 | 26.00% | 25.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 45.00% | 53.00% |
Alternatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 25.00% | 18.00% |
Cash and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets | 4.00% | 4.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 12 Months Ended | |||||
Mar. 31, 2019vote$ / sharesshares | Mar. 31, 2018$ / sharesshares | Mar. 31, 2017shares | Nov. 08, 2018USD ($) | Apr. 03, 2017shares | Apr. 01, 2017$ / shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Number of votes per common share | vote | 1 | |||||
Stock repurchase program, number of shares authorized | 2,000,000,000 | |||||
Stock repurchase program, increase (decrease) in authorized shares | $ | $ 2,000,000,000 | |||||
Treasury Stock Transactions [Abstract] | ||||||
Common stock in treasury, at cost (in shares) | 1,788,658 | 1,016,947 | ||||
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) | 42,008 | 332,558 | 72,231 | |||
Accepted common stock in lieu of cash in connection with the tax withholdings associated with the vesting and release of common stock (in shares) | 729,703 | 684,389 | 195,201 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | |||
Number of shares repurchased (in shares) | 19,342,586 | 1,537,782 | 0 |
Average price per share (in dollars per share) | $ 69.20 | $ 89.41 | $ 0 |
Share repurchase amount | $ 1,339 | $ 137 | $ 0 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | |||
Cash Dividends Declared Per Common Share (in dollars per share) | $ 0.76 | $ 0.72 | $ 0.56 |
Cash Dividends Declared, Total | $ 209 | $ 209 | $ 80 |
Cash Dividends Declared, Unpaid at Fiscal Year End | $ 53 | $ 51 | $ 20 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | $ 13,837 | $ 2,166 | $ 2,032 |
Balance | 11,725 | 13,837 | 2,166 |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | (261) | (458) | (399) |
Current-period other comprehensive (loss) income | (256) | 197 | (59) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 0 | 0 | 0 |
Balance | (517) | (261) | (458) |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | 9 | ||
Current-period other comprehensive (loss) income | (22) | ||
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 10 | ||
Balance | (3) | 9 | |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | 20 | (1) | |
Current-period other comprehensive (loss) income | (11) | 21 | |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 0 | 0 | |
Balance | 20 | ||
Available-for-sale Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | 9 | 0 | 0 |
Current-period other comprehensive (loss) income | 0 | 9 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | 0 | 0 | 0 |
Balance | 9 | 9 | 0 |
Pension and other post-retirement benefit plans: | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | 301 | 276 | 289 |
Current-period other comprehensive (loss) income | (21) | 0 | (2) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | (13) | 25 | (11) |
Balance | 267 | 301 | 276 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Balance | 58 | (162) | (111) |
Current-period other comprehensive (loss) income | (299) | 195 | (40) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes | (3) | 25 | (11) |
Balance | $ (244) | $ 58 | $ (162) |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | Apr. 01, 2017USD ($)$ / sharesshares | Mar. 31, 2019USD ($)plananniversary$ / sharesshares | Mar. 31, 2018USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incremental stock compensation expense | $ | $ 74 | $ 93 | $ 75 | |
Plan term | 10 years | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Total grant date fair value of stock options vested during the period | $ | $ 0 | $ 22 | 8 | |
Cash received from stock awards exercised during the period | $ | $ 34 | $ 98 | $ 54 | |
Number of common shares available for grant at period end (in shares) | shares | 22,172,662 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 1 month 2 days | |||
Vesting period (in years) | 3 years | |||
Term of options | 10 years | |||
Total unrecognized compensation expense related to unvested awards, net of expected forfeitures | $ | $ 1 | |||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 13 | |||
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% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares received per RSU (in shares) | shares | 1 | |||
Total unrecognized compensation expense related to unvested awards, net of expected forfeitures | $ | $ 111 | |||
Weighted average period over which cost is expected to be recognized (in years) | 1 year 10 months 13 days | |||
Restricted Stock Units (RSUs) | Five Year Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual installments | 5 years | |||
Restricted Stock Units (RSUs) | Ten Year Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual installments | 10 years | |||
Restricted Stock Units (RSUs) | Fifteen Year Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual installments | 15 years | |||
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 | |||
Performance-based Restricted Stock Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 25.00% | |||
Vesting period (in years) | 3 years | |||
Performance period | 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% | |||
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 | 235,389 | |||
DXC Share Purchase Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares purchased under plan (in shares) | shares | 13,137 | |||
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 | 104,310 | |||
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 (in shares) | shares | 3,600,000 | |||
Incremental stock compensation expense | $ | $ 26 | |||
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% |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Share Based Compensation Shares Authorized (Details) | Mar. 31, 2019shares |
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) | 22,172,662 |
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) | 21,832,963 |
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) | 104,310 |
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) | 235,389 |
Stock Incentive Plans - Sched_2
Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total share-based compensation cost | $ 74 | $ 93 | $ 75 |
Related income tax benefit | 15 | 21 | 25 |
Total intrinsic value of options exercised | 44 | 136 | 73 |
Tax benefits from exercised stock options and awards | $ 39 | $ 84 | $ 34 |
Stock Incentive Plans - Sched_3
Stock Incentive Plans - Schedule of Assumptions Used to Calculate Share-Based Compensation Expense (Details) - Stock Options | 12 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.60% |
Expected volatility | 29.00% |
Expected term (in years) | 6 years 1 month 2 days |
Dividend yield | 1.56% |
Stock Incentive Plans - Sched_4
Stock Incentive Plans - Schedule of Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 03, 2015 | Apr. 01, 2016 | |
Number of Option Shares | |||||
Issued due to Separation modification (in shares) | 400,170 | ||||
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) | ||||
Weighted Average Exercise Price | |||||
Weighted average exercise price - issued due to Separation modification (in dollars per share) | $ 31.72 | ||||
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 | ||||
Additional Disclosures | |||||
Total intrinsic value of options exercised | $ 44 | $ 136 | $ 73 | ||
Stock Options | |||||
Number of Option Shares | |||||
Outstanding beginning of period (in shares) | 2,933,501 | 4,767,396 | 5,366,621 | ||
Granted (in shares) | 2,450,976 | ||||
Exercised (in shares) | (969,103) | (2,916,045) | (2,544,955) | ||
Canceled/Forfeited (in shares) | (14,607) | (14,890) | (448,505) | ||
Expired (in shares) | (31,193) | (36,411) | (56,741) | ||
Outstanding end of period (in shares) | 2,318,768 | 2,933,501 | 4,767,396 | ||
Weighted Average Exercise Price | |||||
Weighted average exercise price - beginning of period (in dollars per share) | $ 32.54 | $ 38.70 | $ 24.83 | ||
Weighted average exercise price - granted (in dollars per share) | 50.91 | ||||
Weighted average exercise price - exercised (in dollars per share) | 37.33 | 40.39 | 21.84 | ||
Weighted average exercise price - cancelled/forfeited (in dollars per share) | 48.33 | 69.52 | 36.94 | ||
Weighted average exercise price - expired (in dollars per share) | 25.03 | 36.69 | 14.36 | ||
Weighted average exercise price - end of period (in dollars per share) | $ 30.40 | $ 32.54 | $ 38.70 | ||
Additional Disclosures | |||||
Weighted average remaining contractual life (in years) | 4 years 9 months 18 days | 5 years 2 months 27 days | 8 years 3 days | 7 years 21 days | |
Aggregate intrinsic value | $ 79 | $ 185 | $ 145 | $ 51 | |
Total intrinsic value of options exercised | $ 44 | $ 136 | $ 73 | ||
Vested and Expected to Vest | |||||
Vested and expected to vest in the future as of period end (in shares) | 2,318,406 | ||||
Exercisable as of period end (in shares) | 2,314,206 | ||||
Weighted average exercise price vested and expected to vest as of period end (in dollars per share) | $ 30.40 | ||||
Weighted average exercise price exercisable as of period end (in dollars per share) | $ 30.35 | ||||
Weighted average remaining contractual life vested and expected to vest in the future as of period end (in years) | 4 years 9 months 18 days | ||||
Weighted average remaining contractual life exercisable as of period end (in years) | 4 years 9 months 18 days | ||||
Aggregate intrinsic value vested and expected to vest in the future as of period end | $ 79 | ||||
Aggregate intrinsic value exercisable as of period end | $ 79 |
Stock Incentive Plans - Sched_5
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, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 2,318,768 |
Number of exercisable options (in shares) | shares | 2,314,206 |
$8.96 - $24.47 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | $ 8.96 |
Range of option exercise price, maximum (in dollars per share) | $ 24.47 |
Number of options outstanding (in shares) | shares | 652,585 |
Weighted average exercise price (in dollars per share) | $ 18.88 |
Weighted average remaining contractual life (in years) | 3 years 5 months 8 days |
Number of exercisable options (in shares) | shares | 652,585 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 18.88 |
$25.14 - $41.92 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 25.14 |
Range of option exercise price, maximum (in dollars per share) | $ 41.92 |
Number of options outstanding (in shares) | shares | 1,120,399 |
Weighted average exercise price (in dollars per share) | $ 29.68 |
Weighted average remaining contractual life (in years) | 4 years 9 months 29 days |
Number of exercisable options (in shares) | shares | 1,120,399 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 29.68 |
$42.05 - $62.44 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of option exercise price, minimum (in dollars per share) | 42.05 |
Range of option exercise price, maximum (in dollars per share) | $ 62.44 |
Number of options outstanding (in shares) | shares | 545,784 |
Weighted average exercise price (in dollars per share) | $ 45.64 |
Weighted average remaining contractual life (in years) | 6 years 4 months 6 days |
Number of exercisable options (in shares) | shares | 541,222 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 45.55 |
Stock Incentive Plans - Sched_6
Stock Incentive Plans - Schedule of RSUs (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Number of Shares | |||
Equity instruments other than options nonvested - issued due to Separation modification (in shares) | 649,649 | ||
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 | ||
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - issued due to separation modification (in dollars per share) | $ 51.98 | ||
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 | ||
Nonemployee director incentives | |||
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 66,386 | 85,766 | 89,046 |
Equity instruments other than options nonvested - granted (in shares) | 19,200 | 22,900 | 33,600 |
Equity instruments other than options nonvested - HPE RSUs converted to DXC RSUs due to HPES Merger (in shares) | 10,488 | ||
Equity instruments other than options nonvested - settled (in shares) | (20,324) | (39,980) | (32,080) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | 0 | (2,300) | (4,800) |
Equity instruments other than options nonvested - ending balance (in shares) | 75,750 | 66,386 | 85,766 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 37.26 | $ 34.19 | $ 27 |
Weighted average fair value other than options - granted (in dollars per share) | 87.88 | 84.40 | 47.35 |
Weighted average fair value other than options - issued due to separation modification (in dollars per share) | 37.69 | ||
Weighted average fair value other than options - settled (in dollars per share) | 51.59 | 45.25 | 28.58 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 0 | 85.35 | 30.31 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 46.31 | $ 37.26 | $ 34.19 |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Equity instruments other than options nonvested - beginning balance (in shares) | 3,985,616 | 3,710,985 | 3,597,999 |
Equity instruments other than options nonvested - granted (in shares) | 1,136,002 | 1,828,667 | 1,150,185 |
Equity instruments other than options nonvested - settled (in shares) | (2,207,467) | (1,934,446) | (602,467) |
Equity instruments other than options nonvested - canceled/forfeited (in shares) | (754,025) | (324,822) | (434,732) |
Equity instruments other than options nonvested - ending balance (in shares) | 2,809,775 | 3,985,616 | 3,710,985 |
Weighted Average Grant Date Fair Value | |||
Weighted average fair value other than options - beginning balance (in dollars per share) | $ 47.25 | $ 34.86 | $ 29.25 |
Weighted average fair value other than options - granted (in dollars per share) | 77.10 | 82.34 | 47.70 |
Weighted average fair value other than options - settled (in dollars per share) | 33.05 | 35.93 | 27.29 |
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | 62.01 | 59.34 | 32.86 |
Weighted average fair value other than options - ending balance (in dollars per share) | $ 67.27 | $ 47.25 | $ 34.86 |
Cash Flows (Details)
Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash paid for: | |||
Interest | $ 308 | $ 288 | $ 103 |
Taxes on income, net of refunds (1) | 197 | 376 | 63 |
Non-cash activities, operating | |||
Prepaid assets acquired under long-term financing | 48 | 209 | 0 |
Non-cash activities, investing | |||
Capital expenditures in accounts payable and accrued expenses | 45 | 46 | 43 |
Capital expenditures through capital lease obligations | 668 | 664 | 52 |
Assets acquired under long-term financing | 200 | 238 | 87 |
Increase in deferred purchase price receivable | 1,489 | 665 | 595 |
Contingent consideration | 41 | 0 | 0 |
Non-cash activities, financing | |||
Dividends declared but not yet paid | 53 | 51 | 20 |
Stock issued for the acquisition of HPES | 0 | 9,850 | 0 |
Income tax refunds | $ 174 | $ 38 | $ 23 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Non-service cost components of net periodic pension income | $ (182) | $ (509) | $ (7) |
Foreign currency loss (gain) | 31 | (71) | (8) |
Other gain | (155) | (13) | (2) |
Totals | $ (306) | $ (593) | $ (17) |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 20,753 | $ 21,733 | $ 7,607 |
Segment Profit | 3,269 | 2,989 | 618 |
Depreciation and amortization | 1,429 | 1,269 | 570 |
Amortization of acquired intangible assets | (539) | (526) | (77) |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 3,269 | 2,989 | 618 |
Interest income | 128 | 89 | 35 |
Interest expense | (334) | (320) | (117) |
Restructuring costs | (465) | (789) | (238) |
Transaction, separation, and integration-related costs | (401) | (359) | (308) |
Amortization of acquired intangible assets | (539) | (526) | (77) |
Pension and OPEB actuarial and settlement (losses) gains | (143) | 220 | (87) |
Income (loss) from continuing operations, before taxes | 1,515 | 1,304 | (174) |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 20,753 | 21,733 | 7,607 |
Segment Profit | 3,556 | 3,168 | 798 |
Depreciation and amortization | 1,302 | 1,177 | 506 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 3,556 | 3,168 | 798 |
Operating segments | GBS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,684 | 9,254 | 4,173 |
Segment Profit | 1,645 | 1,525 | 492 |
Depreciation and amortization | 90 | 99 | 107 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 1,645 | 1,525 | 492 |
Operating segments | GIS | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,069 | 12,479 | 3,434 |
Segment Profit | 1,911 | 1,643 | 306 |
Depreciation and amortization | 1,212 | 1,078 | 399 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | 1,911 | 1,643 | 306 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Segment Profit | (287) | (179) | (180) |
Depreciation and amortization | 127 | 92 | 64 |
Reconciliation of Consolidated Operating Income to Income Before Taxes [Abstract] | |||
Segment Profit | $ (287) | $ (179) | $ (180) |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic PPE (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | $ 3,363 | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | $ 1,352 | 1,270 | $ 389 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | 512 | 535 | |
Australia | |||
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | 144 | 191 | 58 |
Other Europe | |||
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | $ 553 | ||
Other International | |||
Segment Reporting Information [Line Items] | |||
Property and Equipment, net | $ 902 | $ 87 |
Revenue (Details)
Revenue (Details) $ in Billions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 28.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 40.00% |
Remaining performance obligation period | 12 months |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 20,753 | $ 21,733 | $ 7,607 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,677 | 8,015 | 2,986 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,175 | 3,392 | 1,482 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,582 | 1,694 | 921 |
Other Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,294 | 5,409 | 1,594 |
Other International | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,025 | $ 3,223 | $ 624 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables, net | $ 3,232 | $ 3,937 | |
Contract assets | 390 | 444 | |
Contract liabilities | $ 1,886 | $ 2,053 | $ 2,053 |
Revenue - Change in Contract Li
Revenue - Change in Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance, beginning of period | $ 2,053 |
Deferred revenue | 2,681 |
Recognition of deferred revenue | (2,664) |
Currency translation adjustment | (167) |
Other | (17) |
Balance, end of period | 1,886 |
Calculated under Revenue Guidance in Effect before Topic 606 | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance, beginning of period | 2,434 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance, beginning of period | $ (381) |
Revenue - Capitalized Contract
Revenue - Capitalized Contract Costs (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Sales Commission | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, net | $ 228 |
Capitalized contract cost, amortization | 62 |
Transition and transformation contract costs | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, net | 966 |
Capitalized contract cost, amortization | $ 258 |
Revenue - Adoption of 606 (Deta
Revenue - Adoption of 606 (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 20,753 | $ 21,733 | $ 7,607 | |
Costs of services | 14,946 | 16,317 | 5,549 | |
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 1,959 | 1,890 | 1,282 | |
Interest income | (128) | (89) | (35) | |
Income tax expense (benefit) | 288 | (242) | (74) | |
Net income (loss) attributable to DXC common stockholders | 1,257 | 1,751 | $ (123) | |
Assets: | ||||
Receivables, net of allowance for doubtful accounts | 5,181 | 5,481 | ||
Other current assets | 359 | 469 | ||
Deferred tax assets | 355 | 373 | ||
Other assets | 3,429 | 3,207 | ||
Liabilities: | ||||
Accrued expenses and other current liabilities | 3,355 | 3,120 | ||
Deferred revenue and advance contract payments | 1,630 | 1,641 | ||
Income taxes payable | 208 | 127 | ||
Non-current deferred revenue | 256 | 795 | ||
Non-current income tax liabilities and deferred tax liabilities | 1,184 | 1,166 | ||
Equity: | ||||
Retained earnings | 478 | 1,301 | ||
Accumulated other comprehensive loss | (244) | $ 58 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | 30 | |||
Costs of services | 2 | |||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | (73) | |||
Interest income | (13) | |||
Income tax expense (benefit) | 22 | |||
Net income (loss) attributable to DXC common stockholders | 66 | |||
Assets: | ||||
Receivables, net of allowance for doubtful accounts | (18) | |||
Other current assets | (52) | |||
Deferred tax assets | (21) | |||
Other assets | (22) | |||
Liabilities: | ||||
Accrued expenses and other current liabilities | (1) | |||
Deferred revenue and advance contract payments | (87) | $ (381) | ||
Income taxes payable | 2 | (40) | ||
Non-current deferred revenue | (235) | |||
Non-current income tax liabilities and deferred tax liabilities | 36 | |||
Equity: | ||||
Retained earnings | 177 | $ 114 | ||
Accumulated other comprehensive loss | (5) | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | 20,723 | |||
Costs of services | 14,944 | |||
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 2,032 | |||
Interest income | (141) | |||
Income tax expense (benefit) | 266 | |||
Net income (loss) attributable to DXC common stockholders | 1,191 | |||
Assets: | ||||
Receivables, net of allowance for doubtful accounts | 5,199 | |||
Other current assets | 411 | |||
Deferred tax assets | 376 | |||
Other assets | 3,451 | |||
Liabilities: | ||||
Accrued expenses and other current liabilities | 3,356 | |||
Deferred revenue and advance contract payments | 1,717 | |||
Income taxes payable | 206 | |||
Non-current deferred revenue | 491 | |||
Non-current income tax liabilities and deferred tax liabilities | 1,148 | |||
Equity: | ||||
Retained earnings | 301 | |||
Accumulated other comprehensive loss | $ (239) |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 465 | $ 789 | $ 238 |
Restructuring Reserve [Abstract] | |||
Accrued expenses and other current liabilities | 273 | 367 | |
Other long-term liabilities | 106 | 153 | |
Total | 379 | 520 | |
Fiscal 2018 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (44) | 826 | |
Restructuring Reserve [Abstract] | |||
Total | 94 | 355 | 0 |
Restructuring cost incurred to date | 782 | ||
Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (32) | |
Restructuring Reserve [Abstract] | |||
Total | 7 | 22 | 161 |
Restructuring cost incurred to date | 216 | ||
Workforce Reductions | Fiscal 2018 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (30) | 624 | |
Restructuring Reserve [Abstract] | |||
Total | 59 | 257 | 0 |
Restructuring cost incurred to date | 594 | ||
Workforce Reductions | Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | (32) | |
Restructuring Reserve [Abstract] | |||
Total | 7 | 19 | 155 |
Restructuring cost incurred to date | 207 | ||
Facilities Costs | Fiscal 2018 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (14) | 202 | |
Restructuring Reserve [Abstract] | |||
Total | 35 | 98 | 0 |
Restructuring cost incurred to date | 188 | ||
Facilities Costs | Fiscal 2017 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 0 | |
Restructuring Reserve [Abstract] | |||
Total | 0 | $ 3 | $ 6 |
Restructuring cost incurred to date | $ 9 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | $ 520 | |||
Restructuring costs | 465 | $ 789 | $ 238 | |
Restructuring Liability, ending balance | 379 | 520 | $ 520 | |
Fiscal 2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 0 | |||
Restructuring costs | 507 | |||
Costs Not Affecting Restructuring Liability | (8) | |||
Cash Paid | (286) | |||
Other | (7) | |||
Restructuring Liability, ending balance | 206 | 0 | 0 | |
Fiscal 2018 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 355 | 0 | ||
Restructuring costs | (44) | 826 | ||
Costs Not Affecting Restructuring Liability | (3) | (14) | ||
Cash Paid | (191) | (469) | ||
Other | (23) | 12 | ||
Restructuring Liability, ending balance | 94 | 355 | 355 | 0 |
Costs reversed | 48 | |||
Fiscal 2017 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 22 | 161 | ||
Restructuring costs | 0 | (32) | ||
Costs Not Affecting Restructuring Liability | 0 | (2) | ||
Cash Paid | (15) | (117) | ||
Other | 0 | 12 | ||
Restructuring Liability, ending balance | 7 | 22 | 22 | 161 |
Costs reversed | 3 | 34 | ||
Fiscal 2016 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 5 | 13 | ||
Restructuring costs | (2) | |||
Costs Not Affecting Restructuring Liability | 1 | |||
Cash Paid | (7) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 5 | 5 | 13 | |
Costs reversed | 3 | |||
Fiscal 2015 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 1 | 3 | ||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (2) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 1 | 1 | 3 | |
Other Prior Year Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 6 | |||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (3) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 3 | 6 | 6 | |
Costs reversed | 1 | |||
Acquired Liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 137 | 325 | ||
Restructuring costs | 2 | (3) | ||
Costs Not Affecting Restructuring Liability | 0 | (5) | ||
Cash Paid | (67) | (189) | ||
Other | (3) | 9 | ||
Restructuring Liability, ending balance | 69 | 137 | 137 | |
Costs reversed | 3 | |||
Workforce Reductions | Fiscal 2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 0 | |||
Restructuring costs | 363 | |||
Costs Not Affecting Restructuring Liability | (2) | |||
Cash Paid | (218) | |||
Other | (5) | |||
Restructuring Liability, ending balance | 138 | 0 | 0 | |
Workforce Reductions | Fiscal 2018 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 257 | 0 | ||
Restructuring costs | (30) | 624 | ||
Costs Not Affecting Restructuring Liability | 0 | (10) | ||
Cash Paid | (151) | (367) | ||
Other | (17) | 10 | ||
Restructuring Liability, ending balance | 59 | 257 | 257 | 0 |
Workforce Reductions | Fiscal 2017 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 19 | 155 | ||
Restructuring costs | 0 | (32) | ||
Costs Not Affecting Restructuring Liability | 0 | (2) | ||
Cash Paid | (12) | (112) | ||
Other | 0 | 10 | ||
Restructuring Liability, ending balance | 7 | 19 | 19 | 155 |
Workforce Reductions | Fiscal 2016 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 3 | 8 | ||
Restructuring costs | (2) | |||
Costs Not Affecting Restructuring Liability | 1 | |||
Cash Paid | (4) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 3 | 3 | 8 | |
Workforce Reductions | Fiscal 2015 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 1 | 3 | ||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (2) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 1 | 1 | 3 | |
Workforce Reductions | Other Prior Year Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 4 | |||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (2) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 2 | 4 | 4 | |
Workforce Reductions | Acquired Liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 110 | 255 | ||
Restructuring costs | 2 | 0 | ||
Costs Not Affecting Restructuring Liability | 0 | (2) | ||
Cash Paid | (58) | (152) | ||
Other | (3) | 9 | ||
Restructuring Liability, ending balance | 51 | 110 | 110 | |
Facilities Costs | Fiscal 2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 0 | |||
Restructuring costs | 144 | |||
Costs Not Affecting Restructuring Liability | (6) | |||
Cash Paid | (68) | |||
Other | (2) | |||
Restructuring Liability, ending balance | 68 | 0 | 0 | |
Facilities Costs | Fiscal 2018 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 98 | 0 | ||
Restructuring costs | (14) | 202 | ||
Costs Not Affecting Restructuring Liability | (3) | (4) | ||
Cash Paid | (40) | (102) | ||
Other | (6) | 2 | ||
Restructuring Liability, ending balance | 35 | 98 | 98 | 0 |
Facilities Costs | Fiscal 2017 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 3 | 6 | ||
Restructuring costs | 0 | 0 | ||
Costs Not Affecting Restructuring Liability | 0 | 0 | ||
Cash Paid | (3) | (5) | ||
Other | 0 | 2 | ||
Restructuring Liability, ending balance | 0 | 3 | 3 | 6 |
Facilities Costs | Fiscal 2016 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 2 | 5 | ||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (3) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 2 | 2 | 5 | |
Facilities Costs | Fiscal 2015 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 0 | 0 | ||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | 0 | |||
Other | 0 | |||
Restructuring Liability, ending balance | 0 | 0 | $ 0 | |
Facilities Costs | Other Prior Year Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 2 | |||
Restructuring costs | 0 | |||
Costs Not Affecting Restructuring Liability | 0 | |||
Cash Paid | (1) | |||
Other | 0 | |||
Restructuring Liability, ending balance | 1 | 2 | 2 | |
Facilities Costs | Acquired Liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liability, beginning balance | 27 | 70 | ||
Restructuring costs | 0 | (3) | ||
Costs Not Affecting Restructuring Liability | 0 | (3) | ||
Cash Paid | (9) | (37) | ||
Other | 0 | 0 | ||
Restructuring Liability, ending balance | $ 18 | $ 27 | $ 27 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments [Line Items] | |||
Lease rental expense | $ 810 | $ 797 | $ 146 |
Minimum purchase commitments [Abstract] | |||
2020 | 2,286 | ||
2021 | 1,026 | ||
2022 | 488 | ||
2023 | 432 | ||
2024 | 243 | ||
Thereafter | 25 | ||
Total | 4,500 | ||
Real Estate | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2020 | 409 | ||
2021 | 288 | ||
2022 | 203 | ||
2023 | 159 | ||
2024 | 124 | ||
Thereafter | 274 | ||
Minimum fixed rentals | 1,457 | ||
Sublease income | (149) | ||
Totals | 1,308 | ||
Equipment | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2020 | 248 | ||
2021 | 119 | ||
2022 | 27 | ||
2023 | 4 | ||
2024 | 1 | ||
Thereafter | 0 | ||
Minimum fixed rentals | 399 | ||
Sublease income | 0 | ||
Totals | $ 399 | ||
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, 2019USD ($) |
Guarantor Obligations [Line Items] | |
Fiscal 2020 | $ 525 |
Fiscal 2021 | 234 |
Fiscal 2022 and Thereafter | 522 |
Total | 1,281 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Fiscal 2020 | 254 |
Fiscal 2021 | 125 |
Fiscal 2022 and Thereafter | 145 |
Total | 524 |
Letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2020 | 190 |
Fiscal 2021 | 28 |
Fiscal 2022 and Thereafter | 364 |
Total | 582 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Fiscal 2020 | 81 |
Fiscal 2021 | 81 |
Fiscal 2022 and Thereafter | 13 |
Total | $ 175 |
Commitments and Contingencies_3
Commitments and Contingencies - Contingencies (Details) administrator in Thousands, $ in Millions | Oct. 05, 2018plaintiff | Oct. 02, 2017USD ($) | Aug. 02, 2017individual | Dec. 17, 2015USD ($) | May 12, 2015employee | Oct. 31, 2015USD ($) | Mar. 31, 2017employee | Apr. 03, 2015administrator | Dec. 27, 2018officer | Dec. 21, 2018USD ($) | 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 | ||||||||||||
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 | ||||||||||||
Civil Complaint Against Eric Pulier | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Injunction Filed, Amount | $ 4.9 | ||||||||||||
Forsyth v. HP Inc. And Hewlett Packard Enterprise | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of system administrators for class action, more than | plaintiff | 16 | ||||||||||||
Number of plaintiffs aligned with the company | plaintiff | 7 | ||||||||||||
City Of Warren Police And Fire Retirement System V. DXC Technology Company | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of officers named in case | officer | 2 | ||||||||||||
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 |
Reconciliation of Previously _3
Reconciliation of Previously Reported Amounts to Revised and Restated Financial Statements - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase in receivables | $ (947) | $ (464) | [1],[2] | $ (25) | [2] |
Net cash provided by operating activities | 1,783 | 2,567 | [1],[2] | 619 | [2] |
Cash collections related to deferred purchase price receivable | 1,084 | 685 | [1],[2] | 359 | [2] |
Net cash used in investing activities | $ 69 | 719 | [1],[2] | (565) | [2] |
As Previously Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase in receivables | 74 | 193 | |||
Net cash provided by operating activities | 3,105 | 837 | |||
Cash collections related to deferred purchase price receivable | 147 | 141 | |||
Net cash used in investing activities | 181 | (783) | |||
Accounting Standards Update 2016-15 | Restatement Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Increase in receivables | (538) | (218) | |||
Net cash provided by operating activities | (538) | (218) | |||
Cash collections related to deferred purchase price receivable | 538 | 218 | |||
Net cash used in investing activities | $ 538 | $ 218 | |||
[1] | As a result of the USPS Separation, the Consolidated Statements of Operations, Consolidated Balance Sheets, and related financial information reflect USPS's operations and assets and liabilities as discontinued operations for all periods presented. The cash flows of USPS have not been segregated and are included in the Consolidated Statement of Cash flows for the fiscal year ended March 31, 2018 and through the separation date of May 31, 2018 in the Consolidated Statement of Cash Flows for the fiscal year ended March 31, 2019. | ||||
[2] | Fiscal 2018 and fiscal 2017 have been adjusted to give effect to the retrospective adoption of ASU 2016-15. See Note 22 - "Reconciliation of Previously Reported Amounts to Recast Financial Statements." |
Uncategorized Items - dxc-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 114,000,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 114,000,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 114,000,000 |