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Restructuring Costs

6 Months Ended

Sep. 30, 2021

Restructuring Costs [Abstract]

Restructuring Costs

Restructuring Costs

The Company recorded restructuring costs of $145 million and $265 million, net of reversals, for the three months ended September 30, 2021 and September 30, 2020, respectively. For the six months ended September 30, 2021 and September 30, 2020, the Company recorded restructuring costs of $212 million and $337 million, net of reversals, respectively. The costs recorded during the three and six months ended September 30, 2021 were largely a result of the Fiscal 2022 Plan (defined below).

The composition of restructuring liabilities by financial statement line item is as follows:

						As of
(in millions)						September 30, 2021
Accrued expenses and other current liabilities						$	180
Other long-term liabilities						55
Total						$	235

Summary of Restructuring Plans

Fiscal 2022 Plan

During fiscal 2022, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2022 Plan”). Also included in restructuring costs for the six months ended September 30, 2021 is $7 million related to amortization of right-of-use assets and interest expense for leased facilities that we have vacated but that are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.

Fiscal 2021 Plan

During fiscal 2021, management approved global cost savings initiatives designed to better align the Company’s workforce and facility structures (the “Fiscal 2021 Plan”). The Fiscal 2021 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2021 Plan total $540 million, comprising $498 million in employee severance and $42 million of facilities costs.

Fiscal 2020 Plan

During fiscal 2020, management approved cost savings initiatives designed to reduce operating costs by re-balancing its workforce and facilities structures (the “Fiscal 2020 Plan”). The Fiscal 2020 Plan includes workforce optimization programs and facilities and data center rationalization. Costs incurred to date under the Fiscal 2020 Plan total $294 million, comprising $277 million in employee severance and $17 million of facilities costs.

Other Prior Year Plans

In June 2017, management approved a post-HPES Merger restructuring plan to optimize the Company’s operations in response to a continuing business contraction. Other prior year plans focus mainly on optimizing specific aspects of the global workforce, increasing the proportion of work performed in low-cost offshore locations and re-balancing the organizational structure. Additionally, these plans included global facility restructuring, including a global data center restructuring program. Costs incurred to date under other prior year plans total $1,478 million, comprising $1,140 million in employee severance and $338 million of facilities costs.

Acquired Restructuring Liabilities

As a result of the merger of Computer Sciences Corporation (“CSC”) and HPES (“HPES Merger”), DXC acquired restructuring liabilities under restructuring plans that were initiated for HPES under plans approved by the HPE Board of Directors.

Restructuring Liability Reconciliations by Plan

						Restructuring Liability as of March 31, 2021																		Costs Expensed, Net of Reversals						Costs Not Affecting Restructuring Liability(1)						Cash Paid						Other(2)						Restructuring Liability as of September 30, 2021
Fiscal 2022 Plan
Workforce Reductions						$	—																	$	163					$	(1)					$	(51)					$	(2)					$	109
Facilities Costs						—																		50						(35)						(12)						—						3
Total						$	—																	$	213					$	(36)					$	(63)					$	(2)					$	112
Fiscal 2021 Plan
Workforce Reductions						$	180																	$	(3)					$	—					$	(105)					$	(1)					$	71
Facilities Costs						3																		5						(5)						(1)						—						2
Total						$	183																	$	2					$	(5)					$	(106)					$	(1)					$	73
Fiscal 2020 Plan
Workforce Reductions						$	27																	$	(2)					$	—					$	(10)					$	—					$	15
Facilities Costs						—																		—						—						—						—						—
Total						$	27																	$	(2)					$	—					$	(10)					$	—					$	15
Other Prior Year Plans
Workforce Reductions						$	19																	$	1					$	—					$	(13)					$	—					$	7
Facilities Costs						6																		—						—						(3)						—						3
Total						$	25																	$	1					$	—					$	(16)					$	—					$	10
Acquired Liabilities
Workforce Reductions						$	34																	$	(2)					$	—					$	(5)					$	(2)					$	25
Facilities Costs						$	1																	—						—						(1)						—						—
Total						$	35																	$	(2)					$	—					$	(6)					$	(2)					$	25

(1) Pension benefit augmentations recorded as a pension liability, asset impairments and restructuring costs associated with right-of-use assets.

(2) Foreign currency translation adjustments.

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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- References

No definition available.

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