A reconciliation of net cash provided by operating activities to adjusted free cash flow is as follows:
(in millions) |
|
Three Months Ended December 31, 2019 |
|
Nine Months Ended December 31, 2019 |
||||
Net cash provided by operating activities |
|
$ |
477 |
|
|
$ |
2,062 |
|
Net cash used in investing activities (1) |
|
(75 |
) |
|
(2,047 |
) |
||
Acquisitions, net of cash acquired |
|
76 |
|
|
1,997 |
|
||
Payments on capital leases and other long-term asset financings |
|
(225 |
) |
|
(646 |
) |
||
Payments on transaction, separation and integration-related costs |
|
68 |
|
|
203 |
|
||
Payments on restructuring costs |
|
76 |
|
|
273 |
|
||
Gain on arbitration award |
|
— |
|
|
(632 |
) |
||
Adjusted free cash flow |
|
$ |
397 |
|
|
$ |
1,210 |
|
__________ | ||||||||
(1) Excludes short-term investments. |
Non-GAAP Results
A reconciliation of reported results to non-GAAP results is as follows:
|
|
Three Months Ended December 31, 2019 |
||||||||||||||||||||||||||
(in millions, except per-share amounts) |
|
As Reported |
|
Restructuring Costs |
|
Transaction, Separation and Integration- Related Costs |
|
Amortization of Acquired Intangible Assets |
|
Goodwill Impairment Losses |
|
Tax Adjustment |
|
Non-GAAP Results |
||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) |
|
$ |
3,827 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,827 |
|
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) |
|
518 |
|
|
— |
|
|
(68 |
) |
|
— |
|
|
— |
|
|
— |
|
|
450 |
|
|||||||
Income from continuing operations before income taxes |
|
127 |
|
|
74 |
|
|
68 |
|
|
146 |
|
|
53 |
|
|
— |
|
|
468 |
|
|||||||
Income tax expense |
|
37 |
|
|
10 |
|
|
16 |
|
|
34 |
|
|
53 |
|
|
(10 |
) |
|
140 |
|
|||||||
Net income |
|
90 |
|
|
64 |
|
|
52 |
|
|
112 |
|
|
— |
|
|
10 |
|
|
328 |
|
|||||||
Less: net income attributable to non-controlling interest, net of tax |
|
8 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|||||||
Net income attributable to DXC common stockholders |
|
$ |
82 |
|
|
$ |
64 |
|
|
$ |
52 |
|
|
$ |
112 |
|
|
$ |
— |
|
|
$ |
10 |
|
|
$ |
320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Effective tax rate |
|
29.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
29.9 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic EPS from continuing operations |
|
$ |
0.32 |
|
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.44 |
|
|
$ |
— |
|
|
$ |
0.04 |
|
|
$ |
1.25 |
|
Diluted EPS from continuing operations |
|
$ |
0.32 |
|
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.44 |
|
|
$ |
— |
|
|
$ |
0.04 |
|
|
$ |
1.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares outstanding for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic EPS |
|
255.09 |
|
|
255.09 |
|
|
255.09 |
|
|
255.09 |
|
|
255.09 |
|
|
255.09 |
|
|
255.09 |
|
|||||||
Diluted EPS |
|
256.05 |
|
|
256.05 |
|
|
256.05 |
|
|
256.05 |
|
|
256.05 |
|
|
256.05 |
|
|
256.05 |
|
|
|
Nine Months Ended December 31, 2019 |
||||||||||||||||||||||||||||||
(in millions, except per-share amounts) |
|
As Reported |
|
Restructuring Costs |
|
Transaction, Separation and Integration- Related Costs |
|
Amortization of Acquired Intangible Assets |
|
Goodwill Impairment Losses |
|
Gain on Arbitration Award |
|
Tax Adjustment |
|
Non-GAAP Results |
||||||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) |
|
$ |
11,128 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,128 |
|
Selling, general, and administrative (excludes depreciation and amortization and restructuring costs) |
|
1,514 |
|
|
— |
|
|
(226 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,288 |
|
||||||||
(Loss) income from continuing operations before income taxes |
|
(1,666 |
) |
|
248 |
|
|
226 |
|
|
435 |
|
|
2,940 |
|
|
(632 |
) |
|
— |
|
|
1,551 |
|
||||||||
Income tax expense |
|
191 |
|
|
42 |
|
|
43 |
|
|
99 |
|
|
53 |
|
|
— |
|
|
(39 |
) |
|
389 |
|
||||||||
Net (loss) income |
|
(1,857 |
) |
|
206 |
|
|
183 |
|
|
336 |
|
|
2,887 |
|
|
(632 |
) |
|
39 |
|
|
1,162 |
|
||||||||
Less: net income attributable to non-controlling interest, net of tax |
|
17 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
||||||||
Net (loss) income attributable to DXC common stockholders |
|
$ |
(1,874 |
) |
|
$ |
206 |
|
|
$ |
183 |
|
|
$ |
336 |
|
|
$ |
2,887 |
|
|
$ |
(632 |
) |
|
$ |
39 |
|
|
$ |
1,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Effective Tax Rate |
|
(11.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
25.1 |
% |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPS from continuing operations |
|
$ |
(7.20 |
) |
|
$ |
0.79 |
|
|
$ |
0.70 |
|
|
$ |
1.29 |
|
|
$ |
11.09 |
|
|
$ |
(2.43 |
) |
|
$ |
0.15 |
|
|
$ |
4.40 |
|
Diluted EPS from continuing operations |
|
$ |
(7.20 |
) |
|
$ |
0.79 |
|
|
$ |
0.70 |
|
|
$ |
1.28 |
|
|
$ |
11.03 |
|
|
$ |
(2.42 |
) |
|
$ |
0.15 |
|
|
$ |
4.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average common shares outstanding for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPS |
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
|
260.24 |
|
||||||||
Diluted EPS |
|
260.24 |
|
|
261.69 |
|
|
261.69 |
|
|
261.69 |
|
|
261.69 |
|
|
261.69 |
|
|
261.69 |
|
|
261.69 |
|
|
|
Three Months Ended December 31, 2018 |
||||||||||||||||||||||
(in millions, except per-share amounts) |
|
As Reported |
|
Restructuring Costs |
|
Transaction, Separation and Integration- Related Costs |
|
Amortization of Acquired Intangible Assets |
|
Tax Adjustment |
|
Non-GAAP Results |
||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) |
|
$ |
3,725 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,725 |
|
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) |
|
491 |
|
|
— |
|
|
(107 |
) |
|
— |
|
|
— |
|
|
384 |
|
||||||
Income from continuing operations before income taxes |
|
469 |
|
|
76 |
|
|
107 |
|
|
134 |
|
|
— |
|
|
786 |
|
||||||
Income tax expense |
|
3 |
|
|
18 |
|
|
26 |
|
|
36 |
|
|
77 |
|
|
160 |
|
||||||
Income from continuing operations |
|
466 |
|
|
58 |
|
|
81 |
|
|
98 |
|
|
(77 |
) |
|
626 |
|
||||||
Income from discontinued operations, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
Net income |
|
466 |
|
|
58 |
|
|
81 |
|
|
98 |
|
|
(77 |
) |
|
626 |
|
||||||
Less: net income attributable to non-controlling interest, net of tax |
|
4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
||||||
Net income attributable to DXC common stockholders |
|
$ |
462 |
|
|
$ |
58 |
|
|
$ |
81 |
|
|
$ |
98 |
|
|
$ |
(77 |
) |
|
$ |
622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective Tax Rate |
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
20.4 |
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS from continuing operations |
|
$ |
1.68 |
|
|
$ |
0.21 |
|
|
$ |
0.29 |
|
|
$ |
0.36 |
|
|
$ |
(0.28 |
) |
|
$ |
2.26 |
|
Diluted EPS from continuing operations |
|
$ |
1.66 |
|
|
$ |
0.21 |
|
|
$ |
0.29 |
|
|
$ |
0.35 |
|
|
$ |
(0.28 |
) |
|
$ |
2.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding for: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS |
|
275.66 |
|
|
275.66 |
|
|
275.66 |
|
|
275.66 |
|
|
275.66 |
|
|
275.66 |
|
||||||
Diluted EPS |
|
278.99 |
|
|
278.99 |
|
|
278.99 |
|
|
278.99 |
|
|
278.99 |
|
|
278.99 |
|
|
|
Nine Months Ended December 31, 2018 |
||||||||||||||||||||||
(in millions, except per-share amounts) |
|
As Reported |
|
Restructuring Costs |
|
Transaction, Separation and Integration- Related Costs |
|
Amortization of Acquired Intangible Assets |
|
Tax Adjustment |
|
Non-GAAP Results |
||||||||||||
Costs of services (excludes depreciation and amortization and restructuring costs) |
|
$ |
11,110 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,110 |
|
Selling, general, and administrative (excludes depreciation and amortization and restructuring costs) |
|
1,500 |
|
|
— |
|
|
(305 |
) |
|
— |
|
|
— |
|
|
1,195 |
|
||||||
Income from continuing operations before income taxes |
|
1,161 |
|
|
418 |
|
|
305 |
|
|
401 |
|
|
— |
|
|
2,285 |
|
||||||
Income tax expense |
|
205 |
|
|
100 |
|
|
72 |
|
|
101 |
|
|
44 |
|
|
522 |
|
||||||
Income from continuing operations |
|
956 |
|
|
318 |
|
|
233 |
|
|
300 |
|
|
(44 |
) |
|
1,763 |
|
||||||
Income from discontinued operations, net of tax |
|
35 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
35 |
|
||||||
Net income |
|
991 |
|
|
318 |
|
|
233 |
|
|
300 |
|
|
(44 |
) |
|
1,798 |
|
||||||
Less: net income attributable to non-controlling interest, net of tax |
|
8 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
||||||
Net income attributable to DXC common stockholders |
|
$ |
983 |
|
|
$ |
318 |
|
|
$ |
233 |
|
|
$ |
300 |
|
|
$ |
(44 |
) |
|
$ |
1,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective Tax Rate |
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
22.8 |
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS from continuing operations |
|
$ |
3.38 |
|
|
$ |
1.13 |
|
|
$ |
0.83 |
|
|
$ |
1.07 |
|
|
$ |
(0.16 |
) |
|
$ |
6.26 |
|
Diluted EPS from continuing operations |
|
$ |
3.33 |
|
|
$ |
1.12 |
|
|
$ |
0.82 |
|
|
$ |
1.05 |
|
|
$ |
(0.15 |
) |
|
$ |
6.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding for: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic EPS |
|
280.47 |
|
|
280.47 |
|
|
280.47 |
|
|
280.47 |
|
|
280.47 |
|
|
280.47 |
|
||||||
Diluted EPS |
|
284.70 |
|
|
284.70 |
|
|
284.70 |
|
|
284.70 |
|
|
284.70 |
|
|
284.70 |
|