DXC Technology(US:DXC)2022-02-02 16:00Financial Performance - Revenues for the three months ended December 31, 2021, were $4,089 million, a decrease of 4.6% from $4,288 million in the same period of 2020[9] - Net income for the three months ended December 31, 2021, was $102 million, down 90.7% from $1,103 million in the same period of 2020[9] - For the nine months ended December 31, 2021, total revenues were $12,257 million, down 8.1% from $13,344 million in the prior year[106] - Net income for the nine months ended December 31, 2021, was $197 million, a decrease of 70% compared to $658 million for the same period in 2020[16] - Income before income taxes for the three months ended December 31, 2021, was $166 million, a decrease from $1,978 million in the same period of 2020[161] - Income before income taxes for the nine months ended December 31, 2021, was $342 million, compared to $1,447 million for the same period in 2020[204] Earnings and Shareholder Returns - Basic earnings per share for the three months ended December 31, 2021, was $0.39, down from $4.32 in the same period of 2020[9] - Diluted earnings per share for the three months ended December 31, 2021, were $0.38, a significant decrease from $4.29 in the same period of 2020[204] - The total number of shares repurchased during the nine months ended December 31, 2021, was 10,617,767, at an average price of $34.15 per share, totaling $363 million[139] Assets and Liabilities - Total current assets decreased to $7,503 million as of December 31, 2021, from $8,208 million as of March 31, 2021, representing a decline of 8.6%[14] - Total liabilities decreased to $14,866 million as of December 31, 2021, from $16,730 million as of March 31, 2021, a reduction of 11.6%[14] - Total equity decreased to $5,087 million as of December 31, 2021, from $5,308 million as of March 31, 2021, a decline of 4.2%[14] - Cash and cash equivalents were $2,919 million as of December 31, 2021, slightly down from $2,968 million as of March 31, 2021[14] Restructuring and Costs - The company incurred restructuring costs of $36 million for the three months ended December 31, 2021, compared to $104 million in the same period of 2020[9] - Total restructuring costs for the nine months ended December 31, 2021, were $248 million, down from $441 million in the same period of 2020[111] - Share-based compensation expense increased to $77 million from $42 million year-over-year[16] Cash Flow and Financing Activities - Net cash provided by operating activities increased significantly to $1,230 million from $404 million year-over-year[16] - The company reported a net cash used in financing activities of $1,460 million, a reduction from $4,671 million in the previous year[16] - Cash payments for income taxes for the nine months ended December 31, 2021, were $326 million, compared to $159 million for the same period in 2020[151] Tax and Legal Matters - The effective tax rate (ETR) for the three months ended December 31, 2021, was 38.6%, down from 44.2% for the same period in 2020[128] - The company recorded a tax indemnification receivable of $34 million related to uncertain tax positions and $68 million related to other tax payables in connection with the HPES Merger[130] - The IRS has examined the company's federal income tax returns from fiscal 2008 through the tax year ended October 31, 2018, with potential federal and state tax expense of $456 million if the company does not prevail in ongoing disputes[133] Segment Performance - Segment profit for Global Business Services (GBS) was $315 million for the three months ended December 31, 2021, up from $273 million in the same period of 2020, representing an increase of about 15.4%[157] - Total profit for reportable segments increased to $417 million for the three months ended December 31, 2021, compared to $361 million for the same period in 2020, representing a growth of 15.5%[161] Other Comprehensive Income - Comprehensive income for the three months ended December 31, 2021, was $200 million, down from $1,259 million in the same period of 2020[11] - The balance of accumulated other comprehensive income (loss) at December 31, 2021, was $(385) million, reflecting foreign currency translation adjustments and pension benefits[141]