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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ____________

Commission File No.: 001-38033
dxc-20220930_g1.jpg
DXC TECHNOLOGY COMPANY
(Exact name of registrant as specified in its charter)
Nevada
61-1800317
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
20408 Bashan Drive, Suite 231
Ashburn, Virginia 20147
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (703) 972-7000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareDXCThe New York Stock Exchange
1.750% Senior Notes Due 2026DXC 26The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  x Yes  o No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes  o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerxAccelerated Filero
Non-accelerated Filer oSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
        Yes  x   No

230,065,223 shares of common stock, par value $0.01 per share, were outstanding on October 24, 2022.



TABLE OF CONTENTS






PART I

ITEM 1. FINANCIAL STATEMENTS

Index to Condensed Consolidated Financial Statements
Page



1


DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months EndedSix Months Ended
(in millions, except per-share amounts)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Revenues$3,566 $4,027 $7,273 $8,168 
Costs of services (excludes depreciation and amortization and restructuring costs)2,775 3,088 5,705 6,343 
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)324 370 673 753 
Depreciation and amortization380 448 769 870 
Restructuring costs53 145 86 212 
Interest expense44 61 81 123 
Interest income(28)(16)(48)(36)
Debt extinguishment costs 281  309 
Loss (gain) on disposition of businesses32  3 (377)
Other income, net(68)(102)(172)(205)
Total costs and expenses3,512 4,275 7,097 7,992 
Income (loss) before income taxes54 (248)176 176 
Income tax expense (benefit)26 (61)45 81 
Net income (loss)28 (187)131 95 
Less: net income attributable to non-controlling interest, net of tax1 1 2 5 
Net income (loss) attributable to DXC common stockholders$27 $(188)$129 $90 
Income (loss) per common share:
Basic$0.12 $(0.74)$0.56 $0.35 
Diluted$0.12 $(0.74)$0.55 $0.35 


The accompanying notes are an integral part of these condensed consolidated financial statements.




2



DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

Three Months Ended
Six Months Ended
(in millions)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Net income (loss)$28 $(187)$131 $95 
Other comprehensive loss, net of taxes:
Foreign currency translation adjustments, net of tax (1)
(165)(62)(341)(174)
Cash flow hedges adjustments, net of tax (2)
2 9 2 8 
Pension and other post-retirement benefit plans, net of tax:
Amortization of prior service cost, net of tax (3)
(2)(2)(4)(4)
Pension and other post-retirement benefit plans, net of tax(2)(2)(4)(4)
Other comprehensive loss, net of taxes(165)(55)(343)(170)
Comprehensive loss(137)(242)(212)(75)
Less: comprehensive (loss) income attributable to non-controlling interest(3)2 (2)15 
Comprehensive loss attributable to DXC common stockholders$(134)$(244)$(210)$(90)
    
(1) Tax expense related to foreign currency translation adjustments was $4 and $9 for the three and six months ended September 30, 2022, respectively, and $3 and $1 for the three and six months ended September 30, 2021, respectively.
(2) Tax expense (benefit) related to cash flow hedges adjustments was $0 and $(1) for the three and six months ended September 30, 2022, respectively, and $2 and $2 for the three and six months ended September 30, 2021, respectively.
(3) Tax benefit related to amortization of prior service costs was $0 and $4 for the three and six months ended September 30, 2022, respectively. There was no tax benefit related to amortization of prior service costs for the three and six months ended September 30, 2021, respectively.



The accompanying notes are an integral part of these condensed consolidated financial statements.


3


DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

As of
(in millions, except per-share and share amounts)September 30, 2022March 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$2,260 $2,672 
Receivables and contract assets, net of allowance of $42 and $55
3,467 3,854 
Prepaid expenses662 617 
Other current assets289 268 
Assets held for sale 35 
Total current assets6,678 7,446 
Intangible assets, net of accumulated amortization of $5,259 and $5,124
2,884 3,378 
Operating right-of-use assets, net927 1,133 
Goodwill562 617 
Deferred income taxes, net205 221 
Property and equipment, net of accumulated depreciation of $3,866 and $3,998
2,039 2,412 
Other assets4,403 4,850 
Assets held for sale - non-current39 82 
Total Assets$17,737 $20,139 
LIABILITIES and EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt834 900 
Accounts payable857 840 
Accrued payroll and related costs537 570 
Current operating lease liabilities318 388 
Accrued expenses and other current liabilities2,321 2,882 
Deferred revenue and advance contract payments867 1,053 
Income taxes payable 131 197 
Liabilities related to assets held for sale 23 
Total current liabilities5,865 6,853 
Long-term debt, net of current maturities3,695 4,065 
Non-current deferred revenue 789 862 
Non-current operating lease liabilities667 815 
Non-current income tax liabilities and deferred tax liabilities819 994 
Other long-term liabilities 966 1,136 
Liabilities related to assets held for sale - non-current 39 
Total Liabilities12,801 14,764 
Commitments and contingencies
DXC stockholders’ equity:
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, none issued as of September 30, 2022 and March 31, 2022
  
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 233,277,611 issued as of September 30, 2022 and 240,508,348 issued as of March 31, 2022
2 3 
Additional paid-in capital9,733 10,057 
Accumulated deficit(4,211)(4,450)
Accumulated other comprehensive loss(724)(385)
Treasury stock, at cost, 3,237,519 and 2,878,079 shares as of September 30, 2022 and March 31, 2022
(185)(173)
Total DXC stockholders’ equity4,615 5,052 
Non-controlling interest in subsidiaries321 323 
Total Equity4,936 5,375 
Total Liabilities and Equity$17,737 $20,139 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4


DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended
(in millions)September 30, 2022September 30, 2021
Cash flows from operating activities:
Net income$131 $95 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization786 879 
Operating right-of-use expense 214 254 
Share-based compensation55 51 
Deferred taxes(103)(41)
Gain on dispositions(32)(415)
Provision for losses on accounts receivable (2)
Unrealized foreign currency exchange loss (gain)69 (19)
Impairment losses and contract write-offs21 17 
Debt extinguishment costs 309 
Other non-cash charges, net(2)3 
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
(Increase) decrease in assets(185)348 
Decrease in operating lease liability(214)(254)
Decrease in other liabilities(365)(691)
Net cash provided by operating activities375 534 
Cash flows from investing activities:
Purchases of property and equipment(146)(165)
Payments for transition and transformation contract costs(114)(107)
Software purchased and developed(110)(162)
Business dispositions51 513 
Proceeds from sale of assets109 87 
Short-term investing 24 
Other investing activities, net17 9 
Net cash (used in) provided by investing activities(193)199 
Cash flows from financing activities:
Borrowings of commercial paper710 703 
Repayments of commercial paper(657)(679)
Borrowings on long-term debt 19 
Principal payments on long-term debt(1)(2,871)
Payments on finance leases and borrowings for asset financing(274)(671)
Proceeds from bond issuance 2,918 
Proceeds from stock options and other common stock transactions1 12 
Taxes paid related to net share settlements of share-based compensation awards(14)(13)
Payments for debt extinguishment costs (344)
Repurchase of common stock and advance payment for accelerated share repurchase(272)(150)
Other financing activities, net(6)13 
Net cash used in financing activities(513)(1,063)
Effect of exchange rate changes on cash and cash equivalents(91)(2)
Net decrease in cash and cash equivalents including cash classified within current assets held for sale(422)(332)
Cash classified within current assets held for sale10 63 
Net decrease in cash and cash equivalents(412)(269)
Cash and cash equivalents at beginning of year2,672 2,968 
Cash and cash equivalents at end of period$2,260 $2,699 

The accompanying notes are an integral part of these condensed consolidated financial statements.
5


DXC TECHNOLOGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)


Three Months Ended September 30, 2022
(in millions, except
shares in thousands)
Common StockAdditional
Paid-in Capital
 Accumulated Deficit
Accumulated
Other
Comprehensive Loss
Treasury Stock(1)
Total
DXC Equity
Non-
Controlling Interest
Total Equity
SharesAmount
Balance at June 30, 2022232,995 $2 $9,708 $(4,239)$(563)$(183)$4,725 $324 $5,049 
Net Income27 27 1 28 
Other comprehensive loss(161)(161)(4)(165)
Share-based compensation expense25 25 25 
Acquisition of treasury stock(2)(2)(2)
Stock option exercises and other common stock transactions283 —  
Non-controlling interest distributions and other1 1 1 
Balance at September 30, 2022233,278$2 $9,733 $(4,211)$(724)$(185)$4,615 $321 $4,936 
Three Months Ended September 30, 2021
(in millions, except
shares in thousands)
Common StockAdditional
Paid-in Capital
Accumulated DeficitAccumulated
Other
Comprehensive Loss
Treasury Stock Total
DXC Equity
Non-
Controlling Interest
Total Equity
SharesAmount
Balance at June 30, 2021256,681 $3 $10,713 $(5,045)$(426)$(168)$5,077 $309 $5,386 
Net loss(188)(188)1 (187)
Other comprehensive loss(56)(56)1 (55)
Share-based compensation expense22 22 22 
Acquisition of treasury stock(2)(2)(2)
Share repurchase program(2,112)(89)6(83)(83)
Stock option exercises and other common stock transactions434 3 3 3 
Non-controlling interest distributions and other$(3)2 (1)(1)
Balance at September 30, 2021255,003 $3 $10,646 $(5,225)$(482)$(170)$4,772 $311 $5,083 
6


Six Months Ended September 30, 2022
(in millions, except
shares in thousands)
Common StockAdditional
Paid-in Capital
 Accumulated Deficit
Accumulated
Other
Comprehensive Loss
Treasury Stock(1)
Total
DXC Equity
Non-
Controlling Interest
Total Equity
SharesAmount
Balance at March 31, 2022240,508 $3 $10,057 $(4,450)$(385)$(173)$5,052 $323 $5,375 
Net income129 129 2 131 
Other comprehensive loss(339)(339)(4)(343)
Share-based compensation expense49 49 49 
Acquisition of treasury stock(12)(12)(12)
Share repurchase program(8,851)(1)(374)109(266)(266)
Stock option exercises and other common stock transactions1,621 1 1 1 
Non-controlling interest distributions and other1 1 1 
Balance at September 30, 2022233,278 $2 $9,733 $(4,211)$(724)$(185)$4,615 $321 $4,936 
Six Months Ended September 30, 2021
(in millions, except
shares in thousands)
Common StockAdditional
Paid-in Capital
Accumulated DeficitAccumulated
Other
Comprehensive Loss
Treasury Stock Total
DXC Equity
Non-
Controlling Interest
Total Equity
SharesAmount
Balance at March 31, 2021257,053 $3 $10,761 $(5,331)$(302)$(158)$4,973 $335 $5,308 
Net income90 90 5 95 
Other comprehensive loss(180)(180)10 (170)
Share-based compensation expense40 40 40 
Acquisition of treasury stock(12)(12)(12)
Share repurchase program(3,862)(163)13(150)(150)
Stock option exercises and other common stock transactions1,812 11 11 11 
Non-controlling interest distributions and other(3)3  (39)(39)
Balance at September 30, 2021255,003 $3 $10,646 $(5,225)$(482)$(170)$4,772 $311 $5,083 
        

    (1) 3,237,519 treasury shares as of September 30, 2022.



The accompanying notes are an integral part of these condensed consolidated financial statements.
7



DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Note 1 – Summary of Significant Accounting Policies

Business

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness and customer experience across their IT estates.

Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Loss as the “statements of comprehensive loss,” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive loss attributable to non-controlling interests are presented separately in the statements of comprehensive loss. All intercompany transactions and balances have been eliminated. Certain amounts reported in the previous year have been reclassified to conform to the current year presentation.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (“fiscal 2022”).
8

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


Use of Estimates

The preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expense during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. The severity, magnitude and duration, as well as the economic consequences of the ongoing coronavirus disease 2019 (“COVID-19”) crisis, are uncertain, rapidly changing and difficult to predict. Therefore, accounting estimates and assumptions may change over time in response to the COVID-19 crisis and may change materially in future periods. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.

Recent Accounting Pronouncements

Recently issued ASUs effective after September 30, 2022 are not expected to have a material effect on DXC’s condensed consolidated financial statements.

9

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


Note 2 Divestitures

Fiscal 2023 Divestitures

During the first six months of fiscal 2023, the Company sold insignificant businesses that resulted in a loss of $3 million.

In response to the ongoing sanctions against certain industry sectors and parties in Russia due to the impact of the “Russia-Ukraine Conflict”, the Company completed the sale of its primary Russian entity in the first quarter of fiscal 2023. During the second quarter of fiscal 2023, the Company revised its estimate of proceeds from this divestiture based on the evolving conditions in the region.

Planned FDB Sale

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 $294 million as of September 30, 2022), subject to certain adjustments. The closing of the transaction is subject to certain conditions, including receipt of certain regulatory consents. Until these regulatory constraints are satisfied, FDB continues to be reported within ongoing operations. At September 30, 2022, FDB held approximately $473 million in cash which primarily related to customer deposit liabilities.

Fiscal 2022 Divestitures

HPS Sale

On April 1, 2021, DXC completed the sale of its HPS Business to Dedalus for approximately $551 million, resulting in a pre-tax gain on sale of $341 million, net of closing costs for the six months ended September 30, 2021.

Other Divestitures

During the first six months of fiscal 2022, the Company also sold certain insignificant businesses that resulted in a gain of $49 million. This was partially offset by $13 million in sales price adjustments related to prior year dispositions, which resulted from changes in estimated net working capital.


10

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


Note 3 – Earnings (Loss) per Share

Basic earnings per share (“EPS”) is computed using the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS:

Three Months EndedSix Months Ended
(in millions, except per-share amounts)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Net income (loss) attributable to DXC common stockholders:$27 $(188)$129 $90 
Common share information:
Weighted average common shares outstanding for basic EPS229.96 252.40 231.21 253.53 
Dilutive effect of stock options and equity awards3.21  3.72 5.37 
Weighted average common shares outstanding for diluted EPS233.17 252.40 234.93 258.90 
Earnings (loss) per share:
Basic$0.12 $(0.74)$0.56 $0.35 
Diluted$0.12 $(0.74)$0.55 $0.35 

Certain share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have had an anti-dilutive effect. The number of awards excluded were as follows:

Three Months EndedSix Months Ended
September 30, 2022
September 30, 2021(1)
September 30, 2022September 30, 2021
Stock Options475,559 745,357 478,128 521,967 
Restricted Stock Units2,724,766 1,990,916 2,065,992 205,014 
Performance Stock Units1,079,287 2,829,237 721,803 1,309,752 
        

(1) Due to the Company’s net loss for the three months ended September 30, 2021, stock options, restricted stock units and performance stock units were excluded from the computation of dilutive EPS because they would have had an anti-dilutive effect.
11

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


Note 4 – Receivables

Allowance for Doubtful Accounts

The following table presents the change in balance for the allowance for doubtful accounts:

As of
(in millions)September 30, 2022March 31, 2022
Beginning balance$55 $91 
Provisions for losses on accounts receivable 5 
Other adjustments to allowance and write-offs(13)(41)
Ending balance$42 $55 

Receivables Facility

The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified as of September 30, 2022, the “Receivables Facility”) with certain unaffiliated financial institutions for the sale of commercial accounts receivable in the United States. The Receivables Facility was amended on July 29, 2022 extending the termination date to July 28, 2023.

As of September 30, 2022, the total availability under the Receivables Facility was $344 million, and the amount sold to the Purchasers was $377 million, which was derecognized from the Company’s balance sheet. As of September 30, 2022, the Company recorded a $33 million liability within accounts payable because the amount of cash proceeds received by the Company under the Receivables Facility was more than the total availability.

The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.



Note 5 – Leases

The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

Three Months EndedSix Months Ended
(in millions)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Operating lease cost$108 $124 $214 $254 
Short-term lease cost 11 12 19 23 
Variable lease cost 17 15 39 33 
Sublease income(6)(17)(10)(26)
Total operating costs$130 $134 $262 $284 

12

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

Six Months Ended
(in millions)September 30, 2022September 30, 2021
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows
$214 $254 
ROU assets obtained in exchange for operating lease liabilities(1)
$117 $69 
    

(1) Net of $521 million and $509 million in lease modifications and terminations during the first six months of fiscal 2023 and 2022, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

As of
(in millions)Balance Sheet Line ItemSeptember 30, 2022March 31, 2022
ROU operating lease assetsOperating right-of-use assets, net$927 $1,133 
Operating lease liabilitiesCurrent operating lease liabilities$318 $388 
Operating lease liabilities Non-current operating lease liabilities667 815 
Total operating lease liabilities $985 $1,203 

The weighted-average operating lease term was 4.1 years and 4.4 years as of September 30, 2022 and March 31, 2022, respectively. The weighted-average operating lease discount rate was 3.6% and 3.3% as of September 30, 2022 and March 31, 2022, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2022:

Fiscal Year
(in millions)
Remainder of 2023
2024202520262027
Thereafter
Total
Operating lease payments
$183 $297 $230 $145 $68 $148 $1,071 
Less: imputed interest
(86)
Total operating lease liabilities
$985 

13

DXC TECHNOLOGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Finance Leases

The components of finance lease expense were as follows:

Three Months EndedSix Months Ended
(in millions)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Amortization of right-of-use assets$55 $99 $116 $186 
Interest on lease liabilities4 7 9 16 
Total finance lease expense$59 $106 $125 $202 

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)Six Months Ended September 30, 2022Six Months Ended September 30, 2021
Interest paid for finance lease liabilities – Operating cash flows
$9 $