DXC Technology Reports Third Quarter Fiscal Year 2023 Results

Segment Profit

We define segment profit as segment revenues less costs of services, segment selling, general and administrative, depreciation and amortization, and other income (excluding the movement in foreign currency exchange rates on our 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 generally include certain corporate function costs, stock-based compensation expense, pension and other post-retirement benefits (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation and integration-related costs, and amortization of acquired intangible assets.

 

 

Three Months Ended

 

Nine Months Ended

(in millions)

 

December 31, 2022

 

December 31, 2021

 

December 31, 2022

 

December 31, 2021

GBS profit

 

$

244

 

 

$

315

 

 

$

672

 

 

$

885

 

GIS profit

 

 

123

 

 

 

102

 

 

 

364

 

 

 

351

 

All other loss

 

 

(58

)

 

 

(62

)

 

 

(199

)

 

 

(203

)

Subtotal

 

$

309

 

 

$

355

 

 

$

837

 

 

$

1,033

 

Interest income

 

 

41

 

 

 

15

 

 

 

89

 

 

 

51

 

Interest expense

 

 

(56

)

 

 

(38

)

 

 

(137

)

 

 

(161

)

Restructuring costs

 

 

(49

)

 

 

(36

)

 

 

(135

)

 

 

(248

)

Transaction, separation and integration-related costs

 

 

(6

)

 

 

(11

)

 

 

(12

)

 

 

(23

)

Amortization of acquired intangible assets

 

 

(100

)

 

 

(106

)

 

 

(305

)

 

 

(325

)

Merger related indemnification

 

 

(11

)

 

 

 

 

 

(21

)

 

 

 

SEC Matter

 

 

 

 

 

 

 

 

(8

)

 

 

 

(Losses) gains on dispositions

 

 

(9

)

 

 

(4

)

 

 

(12

)

 

 

343

 

Arbitration loss

 

 

(9

)

 

 

 

 

 

(9

)

 

 

 

Impairment losses

 

 

(8

)

 

 

 

 

 

(8

)

 

 

(10

)

Debt extinguishment costs

 

 

 

 

 

(2

)

 

 

 

 

 

(311

)

Pension and OPEB actuarial and settlement losses

 

 

 

 

 

(7

)

 

 

(1

)

 

 

(7

)

Income before income taxes

 

$

102

 

 

$

166

 

 

$

278

 

 

$

342

 

 

 

 

 

 

 

 

 

 

Segment profit margins

 

 

 

 

 

 

 

 

GBS

 

 

14.0

%

 

 

16.2

%

 

 

12.9

%

 

 

15.5

%

GIS

 

 

6.7

%

 

 

4.8

%

 

 

6.5

%

 

 

5.4

%


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