DXC Technology Co
For the period ended Dec 31, 2023. Filed Feb 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Feb 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements (unaudited)
ITEM 1. FINANCIAL STATEMENTS
Index to Condensed Consolidated Financial Statements
| Page | |
|---|---|
| Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2023 and December 31, 2022 (unaudited) | 2 |
| Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2023 and December 31, 2022 (unaudited) | 3 |
| Condensed Consolidated Balance Sheets as of December 31, 2023 and March 31, 2023 (unaudited) | 4 |
| Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2023 and December 31, 2022 (unaudited) | 5 |
| Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended December 31, 2023 and December 31, 2022 (unaudited) | 6 |
| Notes to Condensed Consolidated Financial Statements (unaudited) | |
| Note 1–Summary of Significant Accounting Policies | 8 |
| Note 2–Divestitures | 9 |
| Note 3–Earnings Per Share | 9 |
| Note 4–Receivables | 10 |
| Note 5–Leases | 10 |
| Note 6–Fair Value | 13 |
| Note 7–Derivative Instruments | 14 |
| Note 8–Intangible Assets | 17 |
| Note 9–Goodwill | 18 |
| Note 10–Debt | 19 |
| Note 11–Revenue | 20 |
| Note 12–Restructuring Costs | 21 |
| Note 13–Pension and Other Benefit Plans | 22 |
| Note 14–Income Taxes | 22 |
| Note 15–Stockholders’ Equity | 24 |
| Note 16–Stock Incentive Plans | 24 |
| Note 17–Cash Flows | 25 |
| Note 18–Segment Information | 26 |
| Note 19–Commitments and Contingencies | 29 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| (in millions, except per-share amounts) | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 |
| Revenues | $3,399 | $3,566 | $10,281 | $10,839 |
| Costs of services (excludes depreciation and amortization and restructuring costs) | 2,636 | 2,799 | 7,988 | 8,504 |
| Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 294 | 315 | 949 | 988 |
| Depreciation and amortization | 350 | 375 | 1,055 | 1,144 |
| Restructuring costs | 36 | 49 | 91 | 135 |
| Interest expense | 78 | 56 | 222 | 137 |
| Interest income | (56) | (41) | (158) | (89) |
| (Gain) loss on disposition of businesses | (103) | 9 | (96) | 12 |
| Other income, net | (48) | (98) | (188) | (270) |
| Total costs and expenses | 3,187 | 3,464 | 9,863 | 10,561 |
| Income before income taxes | 212 | 102 | 418 | 278 |
| Income tax expense | 72 | 41 | 137 | 86 |
| Net income | 140 | 61 | 281 | 192 |
| Less: net (loss) income attributable to non-controlling interest, net of tax | (16) | 2 | (10) | 4 |
| Net income attributable to DXC common stockholders | $156 | $59 | $291 | $188 |
| Income per common share: | ||||
| Basic | $0.82 | $0.26 | $1.45 | $0.82 |
| Diluted | $0.81 | $0.25 | $1.43 | $0.80 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)
| Three Months Ended · Nine Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) · December 31, 2023 · December 31, 2022 · December 31, 2023 · December 31, 2022 | |||||||||||||
| Net income | $140 | $61 | $281 | $192 | |||||||||
| Other comprehensive income (loss), net of taxes: | |||||||||||||
| Foreign currency translation adjustments, net of tax (1) | 37 | 10 | 31 | (331) | |||||||||
| Cash flow hedges adjustments, net of tax (2) | (4) | (19) | 3 | (17) | |||||||||
| Pension and other post-retirement benefit plans, net of tax: | |||||||||||||
| Prior service cost, net of tax(3) | (7) | — | (7) | — | |||||||||
| Amortization of prior service cost, net of tax (4) | (1) | (1) | (3) | (5) | |||||||||
| Pension and other post-retirement benefit plans, net of tax | (8) | (1) | (10) | (5) | |||||||||
| Other comprehensive income (loss), net of taxes | 25 | (10) | 24 | (353) | |||||||||
| Comprehensive income (loss) | 165 | 51 | 305 | (161) | |||||||||
| Less: comprehensive (loss) income attributable to non-controlling interest | (23) | 4 | (18) | 2 | |||||||||
| Comprehensive income (loss) attributable to DXC common stockholders | $188 | $47 | $323 | $(163) | |||||||||
(1) Tax (benefit) expense related to foreign currency translation adjustments was $(3) and $(1) for the three and nine months ended December 31, 2023, respectively, and $(5) and $4 for the three and nine months ended December 31, 2022, respectively.
(2) Tax (benefit) expense related to cash flow hedges adjustments was $(1) and $1 for the three and nine months ended December 31, 2023, respectively, and $(5) and $(6) for the three and nine months ended December 31, 2022, respectively.
(3) Tax expense related to prior service costs was $0 for the three and nine months ended December 31, 2023, respectively.
(4) Tax benefit related to amortization of prior service costs was $0 and $1 for the three and nine months ended December 31, 2023, respectively, and $0 and $4 for the three and nine months ended December 31, 2022, respectively.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.