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Press Release: DXC Technology Reports Third -4-

· 02/04/2021 16:15
Three Months Ended December 31, 2020 ------------------------------------------------------------------------------------------------- Transaction, Amortization Separation and of Acquired Gain on (in millions, except As Restructuring Integration-Related Intangible Disposition of Non-GAAP per-share amounts) Reported Costs Costs Assets Businesses Results ----------------------- ---------- --------------- ----------------------- -------------- --------------- ---------- Costs of services (excludes depreciation and amortization and restructuring costs) $3,333 $ -- $ -- $ -- $ -- $3,333 Selling, general and administrative (excludes depreciation and amortization and restructuring costs) 517 -- (96) -- -- 421 Income (loss) before income taxes 1,978 104 96 114 (2,046) 246 Income tax expense (benefit) 875 11 16 26 (903) 25 ------ --------------- -------------- ------- -------------- ----------- ------ Net income (loss) 1,103 93 80 88 (1,143) 221 Less: net income attributable to non-controlling interest, net of tax 5 -- -- -- -- 5 ------ --------------- -------------- ------- -------------- ----------- ------ Net income (loss) attributable to DXC common stockholders $1,098 $ 93 $ 80 $ 88 $ (1,143) $ 216 ===== ===== ======== ===== ======= ======= ===== ======= ======= ===== Effective tax rate 44.2% 10.2% Basic EPS $ 4.32 $ 0.37 $ 0.31 $ 0.35 $ (4.49) $ 0.85 Diluted EPS $ 4.29 $ 0.36 $ 0.31 $ 0.34 $ (4.47) $ 0.84 Weighted average common shares outstanding for: Basic EPS 254.32 254.32 254.32 254.32 254.32 254.32 Diluted EPS 255.75 255.75 255.75 255.75 255.75 255.75 Nine Months Ended December 31, 2020 -------------------------------------------------------------------------------------------------------------------------- Pension and OPEB Transaction, Amortization Actuarial Separation and of Acquired Gain on andThree Months Ended Nine Months Ended (in millions) December 31, 2020 December 31, 2020 ------------------------- ---------------------- ---------------------- Net cash (used in) provided by operating activities $ (187) $ 404 Net cash provided by investing activities (1) 4,734 4,500 Acquisitions, net of cash acquired -- 10 Business dispositions (4,942) (4,942) Payments on capital leases and other long-term asset financings (207) (694) Payments on transaction, separation and integration-related costs 135 304 Payments on restructuring costs 149 309 ------------------ ------------------ Adjusted free cash flow $ (318) $ (109) ====== ========== ====== ========== _________________ (1) Excludes short-term investments.Three Months Ended Nine Months Ended ----------------------- -------------------------- December December December 31, December (in millions) 31, 2020 31, 2019 2020 31, 2019 -------------------- ----------- ---------- ------------- ----------- Net income (loss) $1,103 $ 90 $ 658 $(1,857) Income tax expense 875 37 789 191 Interest income (28) (33) (76) (130) Interest expense 82 93 284 288 ------ --- ---- ---- -------- --- ------- EBIT 2,032 187 1,655 (1,508) Restructuring costs 104 74 441 248 Transaction, separation, and integration-related costs 96 68 307 226 Amortization of acquired intangible assets 114 146 414 435 Gain on disposition of businesses (2,046) -- (2,046) -- Pension and OPEB actuarial and settlement losses -- -- 2 -- Goodwill impairment losses -- 53 -- 2,940 Gain on arbitration award -- -- -- (632) ------ --- ---- ---- -------- --- ------- Adjusted EBIT $ 300 $528 $ 773 $ 1,709 ===== === === ==== === === === ====== Adjusted EBIT margin 7.0% 10.5% 5.8% 11.6% EBIT margin 47.4% 3.7% 12.4% (10.2)%Three Months Ended ---------------------------------------------------- December 31, 2020 December 31, 2019 Percentage Change ------------------------- ------------------------- ------------------------------- (in millions) GBS GIS Total GBS GIS Total GBS GIS Total ----------------- ------- ------- ------- ------- ------- ------- --------- --------- --------- Revenues $1,921 $2,367 $4,288 $2,359 $2,662 $5,021 (18.6)% (11.1)% (14.6)% Impact of foreign currency (53) (65) (118) -- -- -- (2.2)% (2.4)% (2.3)% ------ ------ ------ ------ ------ ------ ----- ----- ----- Revenues in constant currency 1,868 2,302 4,170 2,359 2,662 5,021 (20.8)% (13.5)% (16.9)% Impact of acquisitions and divestitures (7) (6) (13) (358) (17) (375) 13.8% 0.3% 6.4% ------ ------ ------ ------ ------ ------ ----- ----- ----- Organic revenues $1,861 $2,296 $4,157 $2,001 $2,645 $4,646 (7.0)% (13.2)% (10.5)% ===== ===== ===== ===== ===== ===== ===== ===== ===== Nine Months Ended ------------------------------------------------------ December 31, 2020 December 31, 2019 Percentage Change -------------------------- -------------------------- ------------------------------ (in millions) GBS GIS Total GBS GIS Total GBS GIS Total ----------------- ------- ------- -------- ------- ------- -------- -------- --------- --------- Revenues $6,337 $7,007 $13,344 $6,803 $7,959 $14,762 (6.8)% (12.0)% (9.6)% Impact of foreign currency (50) (45) (95) -- -- -- (0.8)% (0.5)% (0.6)% ------ ------ ------- ------ ------ ------- ---- ----- ----- Revenues in constant currency 6,287 6,962 13,249 6,803 7,959 14,762 (7.6)% (12.5)% (10.2)% Impact of acquisitions and divestitures (994) (37) (1,031) (1,085) (32) (1,117) 0.2% (0.1)% (0.3)% ------ ------ ------- ------ ------ ------- ---- ----- ----- Organic revenues $5,293 $6,925 $12,218 $5,718 $7,927 $13,645 (7.4)% (12.6)% (10.5)% ===== ===== ====== ===== ===== ====== ==== ===== =====

Organic Revenue Non-GAAP Reconciliation

EBIT and Adjusted EBIT

A reconciliation of net loss to EBIT and adjusted EBIT is as follows:

Adjusted Free Cash Flow

A reconciliation of net cash provided by operating activities to adjusted free cash flow is as follows:

Non-GAAP Results

A reconciliation of reported results to non-GAAP results is as follows:

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February 04, 2021 16:15 ET (21:15 GMT)