DXC Technology 10-K (2022-05-26)

For the fiscal year ended March 31, 2022

 

 

ITEM 1. BUSINESS

 

Overview

 

 

DXC, a Nevada corporation, is a global IT services market leader. We provide mission-critical IT services that transform global businesses. We deliver excellence for our customers and colleagues around the world.

 

mission-critical : extremely important or necessary for a company, activity, etc. to operate successfully

 

 

 

Our more than 130,000 people in approximately 70 countries are entrusted by our customers, nearly half of today’s Fortune 500 companies, to provide solutions across the Enterprise Technology Stack for new levels of performance, scale and competitiveness.

 

entrust : to make somebody responsible for doing something or taking care of somebody

 

Stack : stack (of something) a pile of something, usually neatly arranged

 

 

 

DXC was formed on April 1, 2017 by the merger of CSC and HPES (the "HPES Merger").

 

 

 

Transformation Journey

 

DXC's transformation journey focuses on building stronger relationships with customers, its people, and unlocking value across the Enterprise Technology Stack.

 

unlock : unlock something to open the lock of a door, window, etc., usually using a key

 

 

 

Key transformation journey priorities include:

 

 

 

 

The Company will continue to focus on execution of its transformation journey in the next fiscal year, with a continued focus on our people, revenue stabilization, cost optimization and winning in the market.

 

execution : the act of killing somebody, especially as a legal punishment / the act of doing a piece of work, performing a duty, or putting a plan into action

 

 

 

The Company is continuing with i / s portfolio shaping efforts, making the right investments and divesting assets that the Company does not believe are well integrated with its enterprise technology stack and its strategic direction in order to better focus on its strategy.

 

divesting : to remove clothes / to get rid of something / to take something away from somebody/something

 

 

 

Important Acquisitions and Divestitures

 

 

During the third quarter of fiscal 2022, a subsidiary of DXC entered into a purchase agreement to sell (the "FDB Sale") its German financial services subsidiary ("FDB" or the "FDB Business") to the FNZ Group ("FNZ") for €300 million (approximately $335 million as of March 31, 2022), subject to certain adjustments.

 

 

 

The closing of the transaction is subject to certain conditions, including receipt of certain regulatory consents. At March 31, 2022, FDB held approximately $572 million in cash which primarily related to customer deposit liabilities. The Company expects to complete the FDB Sale in fiscal 2023.

 

consent : permission to do something, especially given by somebody in authority / agreement about something / an official document giving permission for something

 

liabilities : the state of being legally responsible for something / a person or thing that causes you a lot of problems / the amount of money that a person or company owes

 

 

 

During the first quarter of fiscal 2022, DXC completed the sale of its healthcare provider software business (“HPS” or the “HPS Business”) to Dedalus Holding S.p.A. (“Dedalus”).

 

 

 

The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HPS Business for €468 million (approximately $551 million), subject to certain adjustments.

 

accomplished : very good at a particular thing; having a lot of skills

 

attributable : attributable to somebody/something probably caused by the thing mentioned

 

 

 

During fiscal 2021, DXC completed the sale of its U.S. State and Local Health and Human Services business ("HHS" or the "HHS Business") to Veritas Capital Fund Management, L.L.C. ("Veritas Capital") to form Gainwell Technologies.

 

 

 

The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business together with future services to be provided by the Company for a total enterprise value of $5.0 billion, subject to net working capital adjustments and assumed liabilities.

 

working capital : the money that is needed to run a business rather than the money that is used to buy buildings and equipment when starting the business

 

Assumed Liability : An assumed liability is a liability that one party takes on under the terms of a contract.

 

 

 

During fiscal 2020, DXC completed the acquisition of Luxoft Holding, Inc., a global scale digital service provider whose offerings encompass strategic consulting, custom software development, and digital solution engineering services.

 

encompass : encompass something to include a large number or range of things / encompass something to surround or cover something completely

 

 

 

We also completed other acquisitions during fiscal 2020 to complement our offerings and to provide opportunities for future growth.

 

complement : complement something to add to something in a way that improves it or makes it more attractive

 

 

 

See Note 2 - "Acquisitions" and Note 3 - "Divestitures" for further information on acquisitions and divestitures.

 

 

 

Segments and Services

 

Our reportable segments are Global Business Services ("GBS") and Global Infrastructure Services ("GIS").

 

 

Global Business Services

 

GBS provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives. GBS offerings include:

 

 

Analytics and Engineering. Our portfolio of analytics services and extensive partner ecosystem help customers gain rapid insights, automate operations, and accelerate their transformation journeys.

 

 

We provide software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

 

 

 

Applications. We use advanced technologies and methods to accelerate the creation, modernization, delivery and maintenance of high-quality, secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership.

 

secure : to obtain or achieve something, especially when this means using a lot of effort / to attach or fasten something so that it does not move

 

 

We support customers across all industries, including public sector, insurance, banking and capital markets, and automotive.

 

 

Business process services. We perform the integration and optimization of front and back office processes, as well as agile process automation. This helps companies to reduce cost and minimize business disruption, human error, and operational risk while improving customer experiences.

 

integration : the act or process of combining two or more things so that they work together / the act or process of mixing people who have previously been separated, usually because of colour, race, religion, etc.

 

optimization : the act of making something as good as possible

 

 

 

Global Infrastructure Services

 

GIS provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers. GIS offerings include:

 

 

Cloud and Security. We help customers rapidly modernize by adapting legacy apps to cloud, migrate the right workloads, and effectively manage their multi-cloud environments. Our security solutions help predict attacks, proactively respond to threats, ensure compliance and protect data, applications and infrastructure.

 

legacy : money or property that you receive from someone after they die / something that is a part of your history or that remains from an earlier time

 

proactively : in a way that causes change by taking action, rather than reacting to changes

 

 

IT Outsourcing ("ITO"). Our ITO services help customers securely and cost-effectively run mission-critical systems and IT infrastructure. We manage and simplify our customers’ existing IT investments, reduce the costs to run them and provide a path for customers to move portions of their IT estates to the cloud to drive innovation and additional savings.

 

 

Modern Workplace. We provide services to fit our customer’s employee, business and IT needs from intelligent collaboration, modern device management, digital support services, and mobility services. Our focus on the employee experience provides a consumer-like, digital experience that fits the needs of today's professional.

 

 

 

(the rest omitted)