Repayment of borrowings under lines of credit

  
DXC TECHNOLOGY COMPANY  
CONSOLIDATED STATEMENTS OF CASH FLOWS  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Fiscal Years Ended |
| (in millions) |  | March 31, 2022 |  | March 31, 2021 |  | March 31, 2020 |
| Cash flows from operating activities: |  |  |  |  |  |  |
| Net income (loss) |  | $ | 736  |  |  | $ | (146) |  |  | $ | (5,358) |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |  |  |  |
| Depreciation and amortization |  | 1,742  |  |  | 1,988  |  |  | 1,960  |  |
| Goodwill impairment losses |  | —  |  |  | —  |  |  | 6,794  |  |
| Operating right-of-use expense |  | 484  |  |  | 616  |  |  | 698  |  |
| Pension & other post-employment benefits, actuarial & settlement (gains) losses |  | (684) |  |  | 519  |  |  | (244) |  |
| Share-based compensation |  | 101  |  |  | 56  |  |  | 68  |  |
| Deferred taxes |  | 255  |  |  | (403) |  |  | (56) |  |
| (Gain) loss on dispositions |  | (421) |  |  | (1,983) |  |  | 1  |  |
| Provision for losses on accounts receivable |  | 5  |  |  | 53  |  |  | 3  |  |
| Unrealized foreign currency exchange (gains) losses |  | (12) |  |  | (36) |  |  | 24  |  |
| Impairment losses and contract write-offs |  | 51  |  |  | 275  |  |  | 30  |  |
| Debt extinguishment costs |  | 311  |  |  | 41  |  |  | —  |  |
| Amortization of debt issuance costs and discount (premium) |  | —  |  |  | 3  |  |  | (4) |  |
| Cash surrender value in excess of premiums paid |  | (24) |  |  | (3) |  |  | (12) |  |
| Other non-cash charges, net |  | 15  |  |  | 1  |  |  | —  |  |
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: |  |  |  |  |  |  |
| Decrease in receivables |  | 228  |  |  | 257  |  |  | 269  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Increase in prepaid expenses and other current assets |  | (48) |  |  | (299) |  |  | (229) |  |
| Decrease in accounts payable and accruals |  | (714) |  |  | (527) |  |  | (565) |  |
| (Decrease) increase in income taxes payable and income tax liability |  | (315) |  |  | 434  |  |  | (197) |  |
| Decrease in operating lease liability |  | (484) |  |  | (616) |  |  | (698) |  |
| Increase (decrease) in advance contract payments and deferred revenue |  | 270  |  |  | (66) |  |  | (146) |  |
| Other operating activities, net |  | 5  |  |  | (40) |  |  | 12  |  |
| Net cash provided by operating activities |  | 1,501  |  |  | 124  |  |  | 2,350  |  |
|  |  |  |  |  |  |  |
| Cash flows from investing activities: |  |  |  |  |  |  |
| Purchases of property and equipment |  | (254) |  |  | (261) |  |  | (350) |  |
| Payments for transition and transformation contract costs |  | (209) |  |  | (261) |  |  | (281) |  |
|  |  |  |  |  |  |  |
| Software purchased and developed |  | (295) |  |  | (254) |  |  | (235) |  |
|  |  |  |  |  |  |  |
| Proceeds (payments) for acquisitions, net of cash acquired |  | —  |  |  | 184  |  |  | (1,997) |  |
| Business dispositions |  | 533  |  |  | 4,947  |  |  | —  |  |
| Cash collections related to deferred purchase price receivable |  | —  |  |  | 159  |  |  | 671  |  |
| Proceeds from sale of assets |  | 100  |  |  | 164  |  |  | 73  |  |
| Short-term investing |  | —  |  |  | —  |  |  | (75) |  |
|  |  |  |  |  |  |  |
| Proceeds from short-term investing |  | 24  |  |  | —  |  |  | 38  |  |
| Other investing activities, net |  | 41  |  |  | (13) |  |  | 19  |  |
| Net cash (used in) provided by investing activities |  | (60) |  |  | 4,665  |  |  | (2,137) |  |
|  |  |  |  |  |  |  |
| Cash flows from financing activities: |  |  |  |  |  |  |
| Borrowings of commercial paper |  | 1,068  |  |  | 1,486  |  |  | 4,939  |  |
| Repayments of commercial paper |  | (905) |  |  | (1,852) |  |  | (5,076) |  |
| Borrowings under lines of credit |  | —  |  |  | 2,500  |  |  | 1,500  |  |
| Repayment of borrowings under lines of credit |  | —  |  |  | (4,000) |  |  | —  |  |
| Borrowings on long-term debt |  | 19  |  |  | —  |  |  | 2,198  |  |
| Principal payments on long-term debt |  | (2,872) |  |  | (3,552) |  |  | (1,039) |  |

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