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Segment Information
3 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. Our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") serve as our Chief Operating Decision Makers ("CODM") and are responsible for obtaining, reviewing, and managing the Company’s financial performance based on these segments.

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services. The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources: CES, GIS, and Insurance, as previously described above in Note 1 - “Summary of Significant Accounting Policies.” In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation.

The Company's CODM uses segment profit to measure operational strength and performance, assist in evaluation of underlying trends, and allocate resources through periodic budget and forecasting processes. Segment profit is defined as segment revenues less costs of services, selling, general and administrative, depreciation and amortization, and other segment items.
The Company allocates certain costs such as real estate costs, information technology costs and costs for certain other shared corporate functions to its segments using a proportional share of either revenue or headcount for each segment. The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated expenses generally include certain corporate function costs, pension and other post-retirement benefit (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets, impairment losses, gains/(losses) on dispositions of businesses, gains/(losses) on real estate and facility sales, and other costs that do not reflect ongoing segment operating performance. As part of the transition to the new segment structure, the Company updated the assumptions that define which expenses remain in corporate post allocation. The tables below reflect those revised assumptions.

Segment Measures

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:
(in millions)
CES
GIS
Insurance
Total Reportable Segments
Three Months Ended June 30, 2025
Revenues$1,246 $1,600 $313 $3,159 
Costs of services
(976)(1,212)(218)(2,406)
Selling, general and administrative
(163)(150)(44)(357)
Depreciation and amortization (1)
(24)(169)(23)(216)
Other segment items (2)
22 28 55 
Segment profit
$105 $97 $33 $235 
Three Months Ended June 30, 2024
Revenues$1,281 $1,658 $297 $3,236 
Costs of services
(1,016)(1,269)(209)(2,494)
Selling, general and administrative
(137)(122)(28)(287)
Depreciation and amortization (1)
(25)(191)(21)(237)
Other segment items (2)
20 25 50 
Segment profit
$123 $101 $44 $268 
(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets.
(2) Other segment items as presented includes non-service cost components of net periodic pension income and other miscellaneous segment gains/(losses).
Reconciliation of Reportable Segment Profit to Consolidated Total

Three Months Ended
(in millions)June 30, 2025June 30, 2024
Total profit for reportable segments$235 $268 
Corporate expenses
(19)(44)
Subtotal$216 $224 
Restructuring costs(37)(39)
Transaction, separation and integration-related costs
(1)(7)
Amortization of acquired intangible assets(87)(87)
Merger related indemnification
(2)— 
Losses on real estate and facility sales
— (2)
Impairment losses(14)— 
Interest income46 51 
Interest expense(54)(72)
Income before income taxes$67 $68 
Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment, and therefore, total assets by segment are not disclosed.