DXC Technology Co
For the period ended Sep 30, 2024. Filed Nov 8, 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.
Sep 30, 2024 · Filed Nov 8, 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 Six Months Ended September 30, 2024 and September 30, 2023 (unaudited) | 2 |
| Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2024 and September 30, 2023 (unaudited) | 3 |
| Condensed Consolidated Balance Sheets as of September 30, 2024 and March 31, 2024 (unaudited) | 4 |
| Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2024 and September 30, 2023 (unaudited) | 5 |
| Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended September 30, 2024 and September 30, 2023 (unaudited) | 6 |
| Notes to Condensed Consolidated Financial Statements (unaudited) | |
| Note 1–Summary of Significant Accounting Policies | 8 |
| Note 2–Earnings Per Share | 10 |
| Note 3–Receivables | 11 |
| Note 4–Leases | 11 |
| Note 5–Derivative Instruments | 14 |
| Note 6–Intangible Assets | 16 |
| Note 7–Goodwill | 17 |
| Note 8–Debt | 18 |
| Note 9–Revenue | 19 |
| Note 10–Restructuring Costs | 20 |
| Note 11–Pension and Other Benefit Plans | 21 |
| Note 12–Income Taxes | 21 |
| Note 13–Stockholders’ Equity | 23 |
| Note 14–Stock Incentive Plans | 23 |
| Note 15–Cash Flows | 24 |
| Note 16–Segment Information | 25 |
| Note 17–Commitments and Contingencies | 27 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| (in millions, except per-share amounts) | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 |
| Revenues | $3,241 | $3,436 | $6,477 | $6,882 |
| Costs of services (excludes depreciation and amortization and restructuring costs) | 2,427 | 2,633 | 4,953 | 5,352 |
| Selling, general and administrative (excludes depreciation and amortization and restructuring costs) | 353 | 328 | 654 | 655 |
| Depreciation and amortization | 329 | 361 | 655 | 705 |
| Restructuring costs | 42 | 35 | 81 | 55 |
| Interest expense | 69 | 78 | 141 | 144 |
| Interest income | (51) | (53) | (102) | (102) |
| Loss on disposition of businesses | — | 2 | — | 7 |
| Other income, net | (21) | (76) | (66) | (140) |
| Total costs and expenses | 3,148 | 3,308 | 6,316 | 6,676 |
| Income before income taxes | 93 | 128 | 161 | 206 |
| Income tax expense | 48 | 29 | 91 | 65 |
| Net income | 45 | 99 | 70 | 141 |
| Less: net income attributable to non-controlling interest, net of tax | 3 | — | 2 | 6 |
| Net income attributable to DXC common stockholders | $42 | $99 | $68 | $135 |
| Income per common share: | ||||
| Basic | $0.23 | $0.49 | $0.38 | $0.66 |
| Diluted | $0.23 | $0.49 | $0.37 | $0.65 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)
| Three Months Ended · Six Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) · September 30, 2024 · September 30, 2023 · September 30, 2024 · September 30, 2023 | |||||||||||||
| Net income | $45 | $99 | $70 | $141 | |||||||||
| Other comprehensive income (loss), net of taxes: | |||||||||||||
| Foreign currency translation adjustments, net of tax (1) | 79 | (40) | 82 | (6) | |||||||||
| Cash flow hedges adjustments, net of tax (2) | (14) | 4 | (11) | 7 | |||||||||
| Pension and other post-retirement benefit plans, net of tax: | |||||||||||||
| Amortization of prior service cost, net of tax (3) | (1) | — | (2) | (2) | |||||||||
| Pension and other post-retirement benefit plans, net of tax | (1) | — | (2) | (2) | |||||||||
| Other comprehensive income (loss), net of taxes | 64 | (36) | 69 | (1) | |||||||||
| Comprehensive income | 109 | 63 | 139 | 140 | |||||||||
| Less: comprehensive income (loss) attributable to non-controlling interest | 3 | (1) | 2 | 5 | |||||||||
| Comprehensive income attributable to DXC common stockholders | $106 | $64 | $137 | $135 | |||||||||
(1) Tax (benefit) expense related to foreign currency translation adjustments was $(7) and $(6) for the three and six months ended September 30, 2024, respectively, and $2 and $2 for the three and six months ended September 30, 2023, respectively.
(2) Tax (benefit) expense related to cash flow hedges adjustments was $(4) and $(3) for the three and six months ended September 30, 2024, respectively, and $1 and $2 for the three and six months ended September 30, 2023, respectively.
(3) Tax benefit related to amortization of prior service costs was $1 and $1 for the three and six months ended September 30, 2024, respectively, and $1 and $1 for the three and six months ended September 30, 2023, respectively.
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