EX-12.1 6 d481206dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

DXC TECHNOLOGY COMPANY

Computation of Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Combined Fixed Charges and Preference Dividends

(unaudited)

 

    Historical DXC
Technology
Company
    Historical Computer Sciences Corporation  
    Nine months ended     Fiscal years ended  

(in millions, except ratios)

  December 31,
2017
    March 31,
2017
    April 1,
2016
    April 3,
2015
    March 28,
2014
    March 29,
2013
 

Earnings:

           

Pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investees

  $ 1,010     $ (174   $ 10     $ (671   $ 694     $ (249

Fixed charges

    525       166       271       172       193       235  

Less: Preference security dividend requirements of consolidated subsidiaries

    (1     (1     (2     (3     (2     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings as adjusted

  $ 1,534     $ (9   $ 279     $ (502   $ 885     $ (14
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

           

Interest expense(a)

  $ 231     $ 117     $ 123     $ 126     $ 128     $ 165  

Loss on early extinguishment of debt(b)

    —         —         97       —         —         —    

Portion of rental expense representative of the interest factor(c)

    294       49       51       46       65       70  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed Charges

  $ 525     $ 166     $ 271     $ 172     $ 193     $ 235  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Combined fixed charges and preference dividends:

           

Interest expense(a)

  $ 231     $ 117     $ 123     $ 126     $ 128     $ 165  

Loss on early extinguishment of debt(b)

    —         —         97       —         —         —    

Portion of rental expense representative of the interest factor(c)

    294       49       51       46       65       70  

Preference security dividend requirements of consolidated subsidiaries

    1       1       2       3       2       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Combined fixed charges and preference dividends

  $ 526     $ 167     $ 273     $ 175     $ 195     $ 235  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios:

           

Ratio of earnings to fixed charges

    2.9       —   (d)      1.0       —   (f)      4.6       —   (h) 

Ratio of earnings to combined fixed charges and preference dividends

    2.9       —   (e)      1.0       —   (g)      4.5       —   (h) 

 

(a) Interest expense includes amortization of debt discount and deferred loan costs.
(b) The fiscal 2016 loss on early extinguishment of debt is related to the Company’s redemption of all outstanding 6.50% term notes due March 2018.
(c) One-third of the rent expense is the portion of rental expense deemed representative of the interest factor.
(d) Earnings were insufficient to cover fixed charges during fiscal 2017 by $175 million.
(e) Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2017 by $176 million.
(f) Earnings were insufficient to cover fixed charges during fiscal 2015 by $674 million.
(g) Earnings were insufficient to cover combined fixed charges and preference dividends during fiscal 2015 by $677 million.
(h) Earnings were insufficient to cover both fixed charges and combined fixed charges and preference dividends during fiscal 2013 by $249 million.