10 unchanged sentences
• We are vulnerable to product and service quality issues.
−Removed: • We may fail to continue to develop and expand service offerings to address emerging demands.
+Added: • We may fail to continue to develop and expand service offerings to address emerging demands in the highly competitive markets we serve.
• We may fail to compete in certain markets or continue to expand our capacity, and are subject to risks, in certain offshore locations.
3 unchanged sentences
• Our indebtedness could have a material adverse effect on our financial condition and results of operations.
−Removed: • Our primary markets are highly competitive.
• We may fail to accurately estimate the cost of services and the timeline for completion of contracts.
9 unchanged sentences
• We may be subject to intellectual property related risks and may fail to procure necessary third-party licenses.
−Removed: • Disruption of our supply chain could adversely impact our business.
+Added: • Disruption of our supply chain or increases in procurement costs, including as a result of ongoing trade tensions and tariff charges, could adversely impact our business.
• We may fail to maintain effective disclosure controls and internal control over financial reporting.
• We could suffer additional losses due to asset impairment charges.
−Removed: • We may fail to pay dividends or repurchase shares of our common stock that we announced previously.
+Added: • We may fail to pay dividends or repurchase shares of our common stock.
• Pending litigations may have a material and adverse impact on our profitability and liquidity.
9 unchanged sentences
• If the HPES Merger does not qualify as a reorganization under Section 368(a) of the Code, CSC's former stockholders may incur significant tax liabilities.
−Removed: • We assumed certain material pension benefit obligations following the HPES Merger.
−Removed: These liabilities and future funding obligations could restrict our cash available for operations, capital expenditures and other requirements.
• The USPS Separation and Mergers and NPS Separation could result in substantial tax liability to DXC and our stockholders.
1 unchanged sentence
We may not succeed in our strategic objectives, which could adversely affect our business, financial condition, results of operations and cash flows.
−Removed: Our transformation journey focuses on our customers, optimizing costs and seizing the market.
−Removed: We may not be able to implement our strategic priorities and progress on our transformation journey in accordance with our expectations for a variety of reasons, including failure to execute on our plans in a timely fashion, lack of adequate skills, ineffective management, inadequate incentives, customer resistance to new initiatives, inability to control costs or maintain competitive offerings.
+Added: Our strategic priorities are focused on our customers, optimizing costs and seizing the market.
+Added: We may not be able to implement our strategic priorities in accordance with our expectations for a variety of reasons, including failure to execute on our plans in a timely fashion, lack of adequate skills, ineffective management, inadequate incentives, customer resistance to new initiatives, inability to control costs or maintain competitive offerings.
We also cannot be certain that executing on our strategy will generate the benefits we expect.
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There can be no assurance that our cybersecurity risk management strategy and processes will be fully complied with or effective in protecting any IT Systems, data or business operations.
−Removed: Threat actors are increasingly sophisticated and using tools and techniques, including artificial intelligence (“AI”), designed to circumvent security controls, to evade detection and to remove or obfuscate forensic evidence, which makes it more difficult for us to detect, identify, investigate, contain or recover from, future cyberattacks and security incidents.
+Added: Threat actors are increasingly sophisticated and using tools and techniques, including AI, designed to circumvent security controls, to evade detection and to remove or obfuscate forensic evidence, which makes it more difficult for us to detect, identify, investigate, contain or recover from, future cyberattacks and security incidents.
Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments increase the likelihood that our encryption and other algorithms that we use to protect our data and that of customers, including sensitive customer transaction data, may fail.
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We have acquired and may continue to acquire companies with cybersecurity vulnerabilities and/or unsophisticated security measures, which exposes us to cybersecurity, operational, and financial risks.
−Removed: In addition, continued remote and hybrid working arrangements post-COVID present potentially increased risk associated with security vulnerabilities present in non-corporate and home networks.
+Added: In addition, continued remote and hybrid working arrangements present potentially increased risk associated with security vulnerabilities present in non-corporate and home networks.
And, as we and various third parties continue to explore and integrate AI into various products and services, we are likely exposed to new and unknown cybersecurity risks and threats.
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We receive, store or otherwise process personal data related to our customers, employees and other individuals (including end-customers and employees of our customers) in order to run our business and are subject to a variety of laws, regulations, and contractual obligations relating to the privacy, security and handling of personal data.
−Removed: We expect increasing cybersecurity and data privacy obligations around the world to impose additional regulatory pressures on our customers’ businesses and, indirectly, on our operations, or lead to inquiries, investigations, litigation or enforcement actions.
−Removed: In the United States, we are seeing increasing regulatory obligations and expectations imposed on our government and non-government customers.
−Removed: In response, some of our customers have sought, and may continue to seek, to contractually impose certain strict data privacy and information security obligations on us.
−Removed: To the extent our customers are required by laws, rules, or regulations to impose such contractual obligations on us, we may have no or limited ability to reject them or negotiate them in our favor.
+Added: Compliance with privacy and security laws, requirements and regulations may result in cost increases due to expanded compliance obligations, potential systems changes, the development of additional administrative processes and increased enforcement actions, litigation, fines and penalties.
+Added: Some of our customers have sought, and may continue to seek, to contractually impose certain strict data privacy and information security obligations on us.
+Added: To the extent our customers are required by laws, rules, or regulations to impose such contractual obligations on us, we may have limited ability to reject them or negotiate them in our favor.
Moreover, some of our customer contracts may not limit our liability for the loss of confidential information (including personal data), data breaches or other cybersecurity incidents or other business impact.
If we are unable to adequately address these concerns, our business and results of operations could suffer.
−Removed: Compliance with privacy and security laws, requirements and regulations may result in cost increases due to expanded compliance obligations, potential systems changes, the development of additional administrative processes and increased enforcement actions, litigation, fines and penalties.
−Removed: The regulatory landscape in these areas continues to evolve rapidly, and there is a risk that the Company could fail to address or comply with the fast changing regulatory environment, which could lead to regulatory or other actions that could result in material liability for the Company.
−Removed: For example, in 2020, the California Consumer Privacy Act (“CCPA”) came into force and provides new data privacy rights for California consumers and new operational requirements for covered companies, including service providers to covered companies.
−Removed: The CCPA has encouraged similar laws in other states across the country, and comprehensive privacy statutes that share similarities with the CCPA are now in effect and enforceable in Virginia, Utah, Colorado, and Connecticut and will soon be enforceable in several other states as well, with proposed laws being considered in many other states.
−Removed: New and developing legislation may add additional complexity, variation in requirements, restrictions and potential legal risk, require additional investment in compliance programs, and could impact strategies and availability of previously useful data and could result in increased compliance costs and/or changes in business practices and policies.
−Removed: In addition, we are subject to the European Union General Data Protection Regulation (the “EU GDPR”) and to the United Kingdom General Data Protection Regulation and Data Protection Act 2018 (collectively, the “UK GDPR”) (the EU GDPR and UK GDPR together referred to as the “GDPR”).
−Removed: The GDPR imposes comprehensive data privacy compliance obligations in relation to our collection and use of data relating to an identifiable living individual or “personal data,” including a principle of accountability and the obligation to demonstrate compliance through policies, procedures, training and audit, as well as regulating cross-border transfers of personal data out of the European Economic Area (“EEA”) and the UK.
−Removed: Since we are under the supervision of relevant data protection authorities in both the EEA and the UK, we may be fined under both the EU GDPR and UK GDPR for the same breach.
−Removed: Penalties for certain breaches are up to the greater of EUR 20 million/ GBP 17.5 million or 4% of our global annual turnover.
+Added: The regulatory landscape in these areas continues to evolve rapidly, varying in requirements, restrictions and potential legal risk, requiring additional investment in compliance programs.
+Added: This could impact our strategies regarding the use of new technologies, such as artificial intelligence, and availability of previously collected data.
+Added: For example, we are subject to the General Data Protection Regulation (“GDPR”), among other regulations, imposing comprehensive data privacy compliance obligations in relation to our collection and use of “personal data” and can include significant financial penalties for non-compliance.
+Added: Penalties for a material breach of GDPR and the rights and freedom of individuals are up to 4% of our global annual turnover.
In addition to fines, a breach of the GDPR may result in regulatory investigations, reputational damage, orders to cease/ change our data processing activities, enforcement notices, assessment notices for a compulsory audit and/or civil claims (including class actions).
−Removed: While we strive to comply with all applicable data protection laws and regulations, as well as internal privacy policies, any failure or perceived failure to comply or any misappropriation, loss or other unauthorized disclosure of personal data and other sensitive information may result in proceedings or actions against us by government or other entities, private lawsuits against us (including class actions) or the loss of customers, which could potentially have an adverse effect on our business, reputation and results of operations.
−Removed: Product and service quality issues could impact the Company’s business, operating results and financial condition.
+Added: While we strive to comply with all applicable data protection laws and regulations, as well as internal privacy policies, any failure or perceived failure to comply or any misappropriation, loss or other unauthorized disclosure of confidential or sensitive information may result in legal proceedings or actions against us or the loss of customers, which could potentially have an adverse effect on our business, reputation and results of operations.
+Added: Product and service quality issues could impact our business, operating results and financial condition.
Our products and services are highly technical and complex and may contain errors, defects or security vulnerabilities that cannot be discovered before a product or service is released, installed and used by customers.
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In addition, our liability insurance may not adequately cover liabilities incurred, and uncovered losses could be large and harm our financial condition.
−Removed: Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends, including our ability to sell differentiated services, may impact our future growth.
+Added: Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends, including our ability to sell differentiated services and compete in the highly competitive markets we serve, may impact our future growth.
If we are not successful in meeting these business challenges, our results of operations and cash flows may be materially and adversely affected.
−Removed: Our ability to implement solutions for our customers, incorporating new developments and improvements in technology that translate into productivity improvements for our customers, and our ability to develop digital and other new service offerings that meet current and prospective customers' needs, as well as evolving industry standards are critical to our success.
−Removed: The markets we serve are highly competitive and characterized by rapid technological change, which has resulted in deflationary pressure in the price of services that in turn can adversely impact our margins.
−Removed: Our competitors may develop solutions or services that make our offerings obsolete or may force us to decrease prices on our services which can result in lower margins.
−Removed: Our ability to develop and implement innovative technology solutions that meet evolving customer needs in analytics, software engineering, applications, business process services, digital cloud, information technology (“IT”) outsourcing and consulting, and in areas such as AI, automation, Internet of Things and software as-a-service solutions, in a timely or cost-effective manner, will impact our ability to retain and attract customers and our future revenue growth and earnings.
−Removed: If we are unable to continue to execute our strategy and grow our GBS business and expand margins while stabilizing our GIS business in a highly competitive and rapidly evolving environment or if we are unable to commercialize such services and solutions, expand and scale them with sufficient speed and versatility, our growth, productivity objectives and profit margins could be negatively affected.
+Added: Our ability to develop and implement innovative technology solutions that meet evolving customer needs and industry standards in analytics, software engineering, applications, business process services, digital cloud, IT outsourcing and consulting, and in areas such as AI, automation, Internet of Things and software as-a-service solutions, among others, in a timely or cost-effective manner, will impact our ability to retain and attract customers and our future revenue growth and earnings.
+Added: The markets we serve are highly competitive and characterized by rapid technological change.
+Added: If we are unable to continue to execute our strategy or if we are unable to commercialize our services and solutions, expand and scale them with sufficient speed and versatility, our growth, productivity objectives and profit margins could be negatively affected.
Technological developments may materially affect the cost and use of technology by our customers.
Some of these technologies have reduced and replaced some of our traditional services and solutions and may continue to do so in the future.
−Removed: For example, our competitors may introduce new product and service offerings that utilize AI and machine learning.
−Removed: Such offerings could render some of our offerings obsolete or harm our ability to negotiate for favorable terms.
−Removed: This has caused, and may in the future cause, customers to delay spending under existing contracts and engagements and to delay entering into new contracts while they evaluate new technologies.
−Removed: Such delays can negatively impact our results of operations if the pace and level of spending on new technologies by some of our customers are not sufficient to make up any shortfall by other customers.
−Removed: In addition, we face significant competition from competitors, new players and our own customers in developing AI capabilities.
+Added: For example, we have been integrating AI, particularly generative AI, into our services and solutions to meet client demand and to maintain competitiveness in a highly competitive and rapidly evolving market.
+Added: We have made substantial investments in developing and supporting AI capabilities and services, and we anticipate making further investments in the future.
+Added: If we are unable to quickly develop, adopt, and deploy generative AI technologies, we risk falling behind our industry competitors.
+Added: Furthermore, generative AI is changing how we identify, recruit, hire, retain, and deploy our professionals, as well as how we price their services.
+Added: Our clients may increasingly expect that we integrate generative AI with human delivery teams to develop solutions at lower costs compared to traditional, human-only approaches.
+Added: Customers may be less inclined to pay premium rates for human labor if they perceive that the same services can be delivered more cost-effectively through generative AI.
+Added: This could prompt clients to explore alternative providers or seek price reductions, which may negatively impact our results of operations and financial performance.
The AI algorithms that we use may be flawed or may be based on datasets that are biased or insufficient, and our AI features may not achieve sufficient levels of accuracy or may have unintended consequences, including allegations of bias, discrimination, legal and regulatory violations, or violation of third-party intellectual property rights.
There is no guarantee that our products or services that integrate AI capabilities will achieve market acceptance and help us maintain or enhance our competitive position.
+Added: We encounter aggressive competition from numerous and varied competitors.
+Added: Our competitiveness is based on factors including technology (including building AI capabilities into our offerings), innovation, performance, price, quality, reliability, brand, reputation, range of products and services, account relationships, customer training, service and support and security.
+Added: If we are unable to compete based on such factors, we could lose customers or we may experience reduced profitability from our customers and our results of operations and business prospects could be harmed.
+Added: Technological developments have caused, and may in the future cause, customers to delay spending under existing contracts and engagements and to delay entering into new contracts while they evaluate new technologies.
+Added: Such delays can negatively impact our results of operations if the pace and level of spending on new technologies by some of our customers are not sufficient to make up any shortfall by other customers.
Our growth strategy focuses on responding to these types of developments by driving innovation that will enable us to expand our business into new growth areas.
−Removed: However, market for new technologies, such as AI, may not develop as we have anticipated.
+Added: However, markets for new technologies, such as AI, may not develop as we have anticipated.
If we do not sufficiently invest in new technology and adapt to industry developments, or evolve and expand our business at sufficient speed and scale, or if we do not make the right strategic investments to respond to these developments and successfully drive innovation, our services and solutions, our results of operations, and our ability to develop and maintain a competitive advantage and to execute on our growth strategy could be negatively affected.
+Added: We have a large portfolio of services and we need to allocate financial, personnel and other resources across all services while competing with companies that have smaller portfolios or specialize in one or more of our service lines.
+Added: As a result, we may invest less in certain business areas than our competitors do, and competitors may have greater financial, technical and marketing resources available to them compared to the resources allocated to our services.
+Added: Industry consolidation may also affect competition by creating larger, more homogeneous and
+Added: potentially stronger competitors in the markets in which we operate.
+Added: Additionally, competitors may affect our business by entering into exclusive arrangements with existing or potential customers or suppliers.
+Added: Companies with whom we have alliances in certain areas may be or become competitors in other areas.
+Added: In addition, companies with whom we have alliances also may acquire or form alliances with competitors, which could reduce their business with us.
+Added: If we are unable to effectively manage these complicated relationships with alliance partners, our business and results of operations could be adversely affected.
+Added: We face aggressive price competition and may have to lower prices to stay competitive, while simultaneously seeking to maintain or improve revenue and gross margin.
+Added: This price competition may continue to increase from emerging companies that sell products and services into the same markets in which we operate.
+Added: In addition, competitors who have a greater presence in some of the lower-cost markets in which we compete, or who can obtain better pricing, more favorable contractual terms and conditions, may be able to offer lower prices than we are able to offer.
+Added: If we experience pressure from competitors to lower our prices, we may have lower than expected profit margins and lost business opportunities if we are unable to match the price declines.
+Added: Our cash flows, results of operations and financial condition may be adversely affected by these and other industry-wide pricing pressures.
Our ability to compete in certain markets we serve is dependent on our ability to continue to expand our capacity in certain offshore locations.
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A significant portion of our application outsourcing and software development activities has been shifted to India and other lower-cost locations.
−Removed: As a result, we are exposed to the risks inherent in operating in India or other locations, including (1) public health crisis such as the COVID-19 pandemic and government responses, (2) a highly competitive labor market for skilled workers, which may result in significant increases in labor costs, as well as shortages of qualified workers in the future, (3) currency exchange risks, and (4) the possibility that the U.S.
−Removed: Federal Government or the European Union may enact legislation that creates significant disincentives for customers to locate certain of their operations offshore, which would reduce the demand for the services we provide in such locations and may adversely impact our cost structure and profitability.
+Added: As a result, we are exposed to the risks inherent in operating in India or other locations, including (1) a highly competitive labor market for skilled workers, which may result in significant increases in labor costs, as well as shortages of qualified workers in the future, (2) currency exchange risks, and (3) the possibility that the U.S.
+Added: Federal Government or the European Union (the "EU") may enact legislation that creates significant disincentives for customers to locate certain of their operations offshore, which would reduce the demand for the services we provide in such locations and may adversely impact our cost structure and profitability.
In addition, India has experienced, and other countries may experience, political instability, civil unrest and hostilities with neighboring countries.
−Removed: Negative or uncertain political climates in countries or locations where we operate, such as Ukraine, including but not limited to, military activities or civil hostilities, criminal activities and other acts of violence, infrastructure disruption, natural disasters or other conditions could adversely affect our operations or cause us to exit certain markets.
−Removed: The ongoing conflict between Russia and Ukraine has impacted our business and financial performance in that region.
−Removed: In response to Russian military actions in Ukraine, we have exited the Russian market.
−Removed: Additionally, some of our Ukraine team members have been forced to relocate to other countries and within Ukraine.
−Removed: As of March 31, 2024, we had around 3,200 employees in Ukraine.
−Removed: We are closely monitoring the developing situation and are committed to caring for our colleagues in the region.
−Removed: The ongoing conflict could cause harm to our team members and otherwise impair their ability to work for extended periods of time, as well as disrupt telecommunications systems, banks and other critical infrastructure necessary to conduct business in Ukraine.
−Removed: In addition, the United States created two new regional embargoes targeting the non-Ukrainian government-controlled areas of the Donetsk and Luhansk oblasts of Ukraine, the so-called Donetsk People’s Republic and Luhansk People’s Republic regions of Ukraine.
−Removed: If large parts of Ukraine become the target of further U.S.
−Removed: or other applicable sanctions, we may be legally unable to do business or otherwise continue to operate in Ukraine.
−Removed: If these contingencies come to pass, our results of operations and cash flows may be adversely affected.
−Removed: Governmental authorities in the U.S., the EU and the UK, among others, launched an expansion of coordinated sanctions and export control measures, including, among others, blocking and other sanctions against some of the largest state-owned and private Russian financial institutions (and their subsequent removal from the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) payment system) and certain Russian businesses.
−Removed: Any alleged or actual failure to comply with these measures may subject us to government scrutiny, civil and/or criminal proceedings, sanctions and other liabilities, which may have a material adverse effect on our international operations, financial condition, and results of operations.
−Removed: Actions taken by Russia in response to such sanctions could also have a material adverse effect on our operations.
−Removed: For example, in response to increased sanctions, Russia or another government could attempt to take control of assets in Russia or Ukraine of Western companies that are suspending or withdrawing their operations from Russia, such as DXC.
−Removed: Should our assets in the region be seized, there is no guarantee that we would be able to recover those assets in the future.
+Added: Negative or uncertain political climates in countries or locations where we operate, including but not limited to, military activities or civil hostilities, criminal activities and other acts of violence, infrastructure disruption, natural disasters or other conditions could adversely affect our operations or cause us to exit certain markets.
We are subject to the U.S.
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Our credit ratings are based upon information furnished by us or obtained by a rating agency from its own sources and are subject to revision, suspension or withdrawal by one or more rating agencies at any time.
+Added: Rating agencies may place our ratings on negative outlook or credit watch, or take downgrade actions, due to factors including adverse changes in macroeconomic conditions, such as a global or regional recession, trade policy uncertainty (including tariff impositions or escalations), or broader credit market trends.
Rating agencies may review the ratings assigned to us due to developments that are beyond our control, including potential new standards requiring the agencies to reassess rating practices and methodologies.
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It would also cause our future borrowing costs to increase and limit our access to capital markets.
−Removed: For example, we currently fund a portion of our working capital requirements in the U.S.
−Removed: and European commercial paper markets.
+Added: For example, we fund a portion of our working capital requirements in the U.S.
+Added: and European commercial paper markets from time to time.
Any downgrade below our current rating would, absent changes to current market liquidity, substantially reduce or eliminate our ability to access that source of funding and could otherwise negatively impact the perception of our company by lenders and other third parties.
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An increase in our borrowing costs, limitations on our ability to access the global capital and credit markets or a reduction in our liquidity can adversely affect our financial condition and results of operations.
−Removed: For example, in response to increasing inflation, the U.S.
−Removed: Federal Reserve, along with central banks around the world, has been raising interest rates.
−Removed: It is difficult to predict the impact of such events on us, our third-party partners or customers or economic markets more broadly, which have been and will continue to be highly dependent upon the actions of governments and businesses in response to macroeconomic events, and the effectiveness of those actions.
+Added: It is difficult to predict the impact of increased borrowing costs on us, our third-party partners or customers or economic markets more broadly, which have been and will continue to be highly dependent upon the actions of governments and businesses in response to macroeconomic events, and the effectiveness of those actions.
Such actions may impact our ability, desire, or the timing of seeking funding for various investment opportunities.
4 unchanged sentences
Information regarding our credit ratings is included in Part II, Item 7 of this Annual Report on Form 10-K under the caption "Liquidity and Capital Resources."
−Removed: If financial or industry analysts have difficulty in understanding the changes to our business model, or we fail to meet our publicly announced financial guidance, our stock price and trading volume could decline.
−Removed: We are growing our GBS segment, de-emphasizing lower margin resale business in the GIS segment and moving toward an infrastructure-light business model.
−Removed: Given the complexity of the transition process and the uncertain global economic conditions, we may not be able to progress on our transformation journey in accordance with our expectations, and it is likely that our prior forecasts will prove to be incorrect.
−Removed: Additionally, industry or financial analysts that publish reports about our business may not accurately capture and reflect our transition process.
+Added: If industry or equity research analysts have difficulty in understanding the changes to our business model, or we fail to meet our publicly announced financial guidance, our stock price and trading volume could decline.
+Added: Given the complexity of implementing our strategic priorities and the uncertain global economic conditions, we may not be able to progress on our strategic priorities in accordance with our expectations, and it is likely that our prior forecasts will prove to be incorrect.
+Added: Additionally, industry and equity research analysts that publish reports about our business may not accurately capture and reflect our turnaround progress.
As a result, we may fail to meet their expectations.
−Removed: If our financial results fail to meet our publicly announced financial guidance or market expectations, analysts could downgrade our common stock or publish unfavorable research that could cause our stock price or trading volume to decline, potentially significantly.
+Added: If our financial results fail to meet our publicly announced financial guidance or market expectations, equity research analysts could downgrade our common stock or publish unfavorable research that could cause our stock price or trading volume to decline, potentially significantly.
Our business and financial results have been adversely affected and could continue to be materially adversely affected by public health crises.
2 unchanged sentences
If a business interruption occurs and we are unsuccessful in our continuing efforts to minimize the impact of these events, our business, results of operations, financial position, and cash flows could be materially adversely affected.
−Removed: Any future economic downturn induced by COVID-19 or any other public health crisis, depending upon its severity and duration, could also lead to a deterioration of worldwide credit and financial markets that could negatively affect the financial health of customers, lower their demand for our services, limit their ability or willingness to pay us in a timely manner and our ability to obtain external financing to fund our operations and capital expenditures, result in losses on our holdings of cash and investments due to failures of financial institutions and other parties, and result in a higher rate of losses on our accounts receivables due to credit defaults.
+Added: Any future economic downturn induced by a public health crisis, depending upon its severity and duration, could also lead to a deterioration of worldwide credit and financial markets that could negatively affect the financial health of customers, lower their demand for our services, limit their ability or willingness to pay us in a timely manner and our ability to obtain external financing to fund our operations and capital expenditures, result in losses on our holdings of cash and investments due to failures of financial institutions and other parties, and result in a higher rate of losses on our accounts receivables due to credit defaults.
We have indebtedness, which could have a material adverse effect on our business, financial condition and results of operations.
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• subjecting us to the risk of increased sensitivity to interest rate increases in our outstanding variable-rate indebtedness that could cause our debt service obligations to increase significantly;
−Removed: for instance, the U.S.
−Removed: Federal Reserve, along with central banks around the world, has raised benchmark interest rates significantly;
• increasing the risk of a future credit ratings downgrade of our debt, which could increase future debt costs and limit the future availability for debt financing;
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There can be no assurance that our business will generate sufficient cash flow from operations, or that current or future borrowings will be sufficient to meet our current debt obligations and to fund other liquidity needs.
−Removed: Our primary markets are highly competitive.
−Removed: If we are unable to compete in these highly competitive markets, our results of operations may be materially and adversely affected.
−Removed: Our competitors include large, technically competent and well-capitalized companies, some of which have emerged as a result of industry consolidation, as well as “pure-play” companies that have a single product focus.
−Removed: This competition may place downward pressure on operating margins in our industry, particularly for technology outsourcing contract extensions or renewals.
−Removed: As a result, we may not be able to maintain our current operating margins, or achieve favorable operating margins, for technology outsourcing contracts extended or renewed in the future.
−Removed: If we fail to effectively reduce our cost structure during periods with declining margins, our results of operations may be adversely affected.
−Removed: We encounter aggressive competition from numerous and varied competitors.
−Removed: Our competitiveness is based on factors including technology (including building AI capabilities into our offerings), innovation, performance, price, quality, reliability, brand, reputation, range of products and services, account relationships, customer training, service and support and security.
−Removed: If we are unable to compete based on such factors, we could lose customers or we may experience reduced profitability from our customers and our results of operations and business prospects could be harmed.
−Removed: We have a large portfolio of services and we need to allocate financial, personnel and other resources across all services while competing with companies that have smaller portfolios or specialize in one or more of our service lines.
−Removed: As a result, we may invest less in certain business areas than our competitors do, and competitors may have greater financial, technical and marketing resources available to them compared to the resources allocated to our services.
−Removed: Industry consolidation may also affect competition by creating larger, more homogeneous and potentially stronger competitors in the markets in which we operate.
−Removed: Additionally, competitors may affect our business by entering into exclusive arrangements with existing or potential customers or suppliers.
−Removed: Companies with whom we have alliances in certain areas may be or become competitors in other areas.
−Removed: In addition, companies with whom we have alliances also may acquire or form alliances with competitors, which could reduce their business with us.
−Removed: If we are unable to effectively manage these complicated relationships with alliance partners, our business and results of operations could be adversely affected.
−Removed: We face aggressive price competition and may have to lower prices to stay competitive, while simultaneously seeking to maintain or improve revenue and gross margin.
−Removed: This price competition may continue to increase from emerging companies that sell products and services into the same markets in which we operate.
−Removed: In addition, competitors who have a greater presence in some of the lower-cost markets in which we compete, or who can obtain better pricing, more favorable contractual terms and conditions, may be able to offer lower prices than we are able to offer.
−Removed: If we experience pressure from competitors to lower our prices, we may have lower than expected profit margins and lost business opportunities if we are unable to match the price declines.
−Removed: Our cash flows, results of operations and financial condition may be adversely affected by these and other industry-wide pricing pressures.
If we are unable to accurately estimate the cost of services and the timeline for completion of contracts, the profitability of our contracts may be materially and adversely affected.
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Our contracts are complex and, in some instances, may require that we partner with other parties, including software and hardware vendors, to provide the complex solutions required by our customers.
−Removed: For example, we recently entered a strategic partnership with a third-party cloud infrastructure provider to accelerate customer cloud adoption and digital transformation.
Our ability to deliver the solutions and provide the services required by our customers is dependent on our and our partners' ability to meet our customers' delivery schedules, which is affected by a multitude of factors, including climate change.
If we or our partners fail to deliver services or products on time, our ability to complete the contract may be adversely affected.
−Removed: If any third-party providers unexpectedly terminate our agreement, we would be forced to incur additional expenses to locate alternative providers and may experience outages or disruptions to our service.
+Added: If any third-party providers unexpectedly terminate our agreement, we would be forced to incur
+Added: additional expenses to locate alternative providers and may experience outages or disruptions to our service.
In addition, many public cloud infrastructure providers have also entered into strategic partnerships with our competitors.
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Increasing temperatures resulting from global warming could lead to increasing energy costs and unfavorable operating cost impacts, as well as extreme weather events that could cause loss of power or water access to data centers and service disruptions, resulting in contractual fines or loss of business.
−Removed: Our data centers require water for cooling purposes, and severe droughts or other extreme weather events or atmospheric changes that result in water scarcity, particularly in high-stress water areas, could adversely impact our ability to continue to operate or utilize data centers that we own or lease.
+Added: Many of our data centers require water for cooling purposes, and severe droughts or other extreme weather events or atmospheric changes that result in water scarcity, particularly in high-stress water areas, could adversely impact our ability to continue to operate or utilize data centers that we own or lease.
Additionally, our customers’ facilities may be impacted by climate change-related weather events or effects, which may impact our ability to serve our customers.
26 unchanged sentences
As competition for highly skilled employees in our industry has grown increasingly intense, we have experienced, and may experience in the future, higher than anticipated levels of employee attrition.
−Removed: These risks to attracting and retaining the necessary talent may be exacerbated by recent labor constraints and inflationary pressures on employee wages and benefits.
+Added: These risks to attracting and retaining the necessary talent may be exacerbated by labor constraints and inflationary pressures on employee wages and benefits.
Additionally, we may be unable to hire or retain talent who are trained in artificial intelligence, machine learning and advanced algorithms, to keep pace with the rapid and continuous technological changes in our industry.
23 unchanged sentences
However, if one or more raw materials or components for our products (e.g., semiconductors) were to experience an isolated price increase without inflationary impacts on the broader economy, we may not be entitled to inflation protection under those contracts.
−Removed: Additionally, inflation has risen worldwide and the United States has recently experienced historically high levels of inflation.
−Removed: If the inflation rate continues to increase, it can also push up the costs of labor and our employee compensation expenses.
−Removed: There is no assurance that our revenues will increase at the same rate to maintain the same level of profitability.
−Removed: Inflation and government efforts to combat inflation, such as raising benchmark interest rate, could increase market volatility and have an adverse effect on the financial market and general economic conditions.
+Added: Inflation and government efforts to combat inflation could increase market volatility and have an adverse effect on the financial market and general economic conditions.
In a time of uncertainty, our customers may reduce spending or have difficulty in budgeting for external IT services, delay procurement of products and services from us or delay their payment for products and services we have already provided, and we may have difficulty closing new deals in the event of an economic slowdown, all of which could adversely affect our profitability, results of operations and cash flow.
27 unchanged sentences
Social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands, may adversely affect our relationships with customers and investors.
−Removed: We operate in approximately 65 countries in an increasingly complex regulatory environment.
+Added: We operate in over 60 countries countries in an increasingly complex regulatory environment.
Among other things, we provide complex industry-specific insurance processing in the U.K., which is regulated by authorities in the U.K.
3 unchanged sentences
These regulations and environments are also subject to change.
−Removed: Additionally, the rapid evolution and increased adoption of artificial intelligence technologies and our obligations to comply with emerging laws and regulations may require us to develop additional artificial intelligence-specific compliance programs.
+Added: Additionally, the rapid evolution and increased adoption of AI technologies and our obligations to comply with emerging laws and regulations may require us to develop additional AI-specific compliance programs.
Adjusting business operations to changing environments and regulations may be costly and could potentially render the particular business operations uneconomical, which may adversely affect our profitability or lead to a change in the business operations.
11 unchanged sentences
For example, if we are unable to comply with fast-moving regulatory requirements, we could be disqualified from requests for proposal processes, leading to a loss of sales as well as unfavorable operating cost impacts.
−Removed: In addition, as climate change laws, regulations, treaties and national and global initiatives are adopted and implemented regionally or throughout the world, we may be required to comply or potentially face market access limitations, fines or reputational injury.
−Removed: For example, various policymakers, such as the SEC, European Union, and the State of California, have adopted or are considering adopting rules that require companies to provide significantly expanded climate- or other ESG-related disclosures, and we expect to incur significant additional costs to comply and impose increased oversight obligations on our management and board of directors.
+Added: In addition, changing expectations from stakeholders and the evolving landscape of regulatory and disclosure requirements regarding ESG could affect our business.
+Added: We are subject to, and anticipate becoming increasingly subject to, laws, regulations, and international agreements concerning ESG, such as the European Union's Corporate Sustainability Reporting Directive (CSRD) and California's climate change disclosure requirements.
+Added: As these new laws, regulations, treaties and national and global initiatives are adopted and implemented regionally or throughout the world, we may be required to comply or potentially face market access limitations, fines or reputational injury, and we expect to incur significant additional costs to comply and impose increased oversight obligations on our management and board of directors.
Other laws, regulations, treaties or initiatives in response to climate change, including, but not limited to, the introduction of a carbon tax, could result in increased operational costs associated with air pollution requirements and increased compliance and energy costs, which could harm our business and results of operations by increasing our expenses or requiring us to alter our business operations.
1 unchanged sentence
We are also subject to risks associated with ESG regulations.
−Removed: Governmental bodies, investors, clients and businesses are increasingly focused on prioritizing ESG practices, which has resulted in and may in the future continue to result in the adoption of new laws and regulations that could impact our results of operations.
+Added: Divergent ESG interests across the various jurisdictions where we operate may expose us to increased legal, financial or reputational risks related to our ESG practices.
Our inability to keep pace with any ESG regulations, trends and developments or failure to meet the expectations, including, but not limited to, any expectations resulting from goals we have established, or interests of our clients and investors, could adversely affect our business and reputation and could result in undesirable investor actions or customer or talent retention and attraction issues.
22 unchanged sentences
Additionally, the publicity resulting from infringing intellectual property rights may damage our reputation and adversely impact our ability to develop new business.
+Added: We rely on a combination of trade secrets, patents, copyright, trademarks, and contractual provisions to protect our intellectual property rights.
+Added: The existing laws in the various countries in which we provide services or solutions may offer only limited protection of our intellectual property and are subject to change.
From time to time, we may discover that third parties are infringing, misappropriating or otherwise violating our intellectual property rights.
5 unchanged sentences
Certain of our licenses are concentrated in one or more third-party licensors where multiple licenses are up for renewal at the same time, which could decrease our ability to negotiate reasonable license fees and could result in our loss of rights under such licenses.
−Removed: Disruption of our supply chain could adversely impact our business.
−Removed: We have experienced, and may continue to experience, delays and shortages of certain necessary components to the services and solutions we offer our clients resulting from issues with the global supply chain, the economic downturns, the rising inflation, the conflicts between Russia and Ukraine and conflicts in the Middle East, and any disruptions at our suppliers.
−Removed: This shortage may increase component delivery lead times and costs to source available components and delay the delivery of our hardware products and services, which may adversely affect our ability to comply with our contracts and our ability to support our existing customers and our growth through sales to new customers.
+Added: Disruption of our supply chain or increases in procurement costs could adversely impact our business.
+Added: Delays and shortages of certain necessary components to the services and solutions we offer our clients,
+Added: whether caused by natural disasters, pandemics, geopolitical events, labor strikes, or transportation delays, may increase component delivery lead times and costs to source available components and delay the delivery of our hardware products and services, which may adversely affect our ability to comply with our contracts and our ability to support our existing customers and our growth through sales to new customers.
In the event of a component shortage or interruptions at a supplier, we may not be able to develop alternate sources quickly, cost effectively, or at all.
−Removed: Supply chain interruptions could harm our relationships with our customers, prevent us from acquiring new customers, and materially and adversely affect our business.
+Added: Furthermore, the ongoing global uncertainty, including trade tensions and tariff changes, may also impact the cost and availability of materials or products from certain regions, particularly those reliant on international suppliers.
+Added: We may not be able to quickly replace or secure alternative suppliers, and we may be forced to absorb higher costs, reduce margins, or adjust our pricing.
+Added: Supply chain interruptions could harm our relationships with our customers, prevent us from acquiring new customers, harm our operational efficiency, financial performance, and reputation, and materially and adversely affect our business.
We may be exposed to negative publicity and other potential risks if we are unable to maintain effective disclosure controls and internal control over financial reporting.
9 unchanged sentences
We could suffer additional losses due to asset impairment charges.
−Removed: We acquired substantial goodwill and other intangibles as a result of the HPES Merger and the Luxoft Acquisition, increasing our exposure to this risk.
+Added: We acquired substantial goodwill and other intangibles as a result of the HPES Merger, increasing our exposure to this risk.
We test our goodwill for impairment during the second quarter of every year and on an interim date should events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount.
−Removed: If the fair value of a reporting unit is revised downward due to declines in business performance or other factors or if the Company suffers further declines in share price, an impairment could result and a non-cash charge could be required.
+Added: If the fair value of a reporting unit is revised downward due to declines in business performance or other factors or if we suffer further declines in share price, an impairment could result and a non-cash charge could be required.
We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
5 unchanged sentences
Our Board may authorize share repurchases from time to time.
−Removed: On May 18, 2023, DXC announced that its Board approved an incremental $1.0 billion share repurchase authorization.
However, we are not obligated to make any purchases of our shares, and our decision to repurchase our shares, as well as the timing of such repurchases, will depend on a variety of factors as determined by our management and Board.
57 unchanged sentences
Our customers' contracts with the U.S.
−Removed: federal government and related agencies are also subject to issues with respect to federal budgetary and spending limits or matters.
+Added: federal government and related agencies are also subject to issues with respect to federal budgetary and spending limits or matters and may be affected by staffing and resource reductions and funding authorizations.
Any changes to the fiscal policies of the U.S.
1 unchanged sentence
federal government and government agencies to reduce their purchases under existing contracts, or cause them to exercise their rights to terminate contracts at-will or to abstain from exercising options to renew contracts, any of which would have an adverse effect on our business, financial condition, results of operations and/or cash flows.
−Removed: Additionally, any future impasse impacting the U.S.
−Removed: federal government’s ability to reach an agreement on the federal budget, debt ceiling or any future U.S.
+Added: Additionally, impasses impacting the U.S.
+Added: federal government’s ability to reach an agreement on the federal budget, debt ceiling or extended U.S.
federal government shut downs could result in material payment delays, payment reductions or contract terminations by the U.S.
50 unchanged sentences
Pillar Two consists of two interrelated rules referred to as Global Anti-Base Erosion (“GloBE”) Rules, which operate to impose a minimum tax rate of 15% calculated on a jurisdictional basis.
−Removed: Such rules are being or may be implemented in many jurisdictions, including the United States.
+Added: Such rules have been or may be implemented in many jurisdictions.
When and how these Pillar Two rules are adopted or enacted by the various countries in which we do business could increase tax complexity and uncertainty and may adversely affect our provision for income taxes in the U.S.
22 unchanged sentences
If the HPES Merger were determined to be taxable, previous holders of CSC common stock would be considered to have made a taxable disposition of their shares to HPES, and such stockholders would generally recognize taxable gain or loss on their receipt of HPES common stock in the HPES Merger.
−Removed: We assumed certain material pension benefit obligations in connection with the HPES Merger.
−Removed: These liabilities and the related future funding obligations could restrict our cash available for operations, capital expenditures and other requirements, and may materially adversely affect our financial condition and liquidity.
−Removed: Pursuant to the Employee Matters Agreement entered into in connection with the HPES Merger, while HPE retained all U.S.
−Removed: defined benefit pension plan liabilities, DXC retained all liabilities relating to the International Retirement Guarantee (“IRG”) programs for all HPES employees.
−Removed: The IRG is a non-qualified retirement plan for employees who transfer internationally at the request of the HPE Group.
−Removed: The IRG determines the country of guarantee, which is generally the country in which an employee has spent the longest portion of his or her career with the HPE Group, and the present value of a full career benefit for the employee under the HPE defined benefit pension plan and social security or social insurance system in the country of guarantee.
−Removed: The IRG then offsets the present value of the retirement benefits from plans and social insurance systems in the countries in which the employee earned retirement benefits for his or her total period of HPE Group employment.
−Removed: The net benefit value is payable as a single sum as soon as practicable after termination or retirement.
−Removed: This liability could restrict cash available for our operations, capital expenditures and other requirements, and may materially affect our financial condition and liquidity.
−Removed: In addition, pursuant to the Employee Matters Agreement, DXC assumed certain other defined benefit pension liabilities in a number of non-U.S.
−Removed: countries (including the U.K., Germany and Switzerland).
−Removed: Unless otherwise agreed or required by local law, where a defined benefit pension plan was maintained solely by a member of the HPES business, DXC assumed all assets and liabilities arising out of those non-U.S.
−Removed: defined benefit pension plans, and where a defined benefit pension plan was not maintained solely by a member of the HPES business, DXC assumed all assets and liabilities for those eligible HPES employees in connection with the HPES Merger.
−Removed: These liabilities and the related future payment obligations could restrict cash available for our operations, capital expenditures and other requirements, and may materially affect our financial condition and liquidity.
The USPS Separation and Mergers and NPS Separation could result in substantial tax liability to DXC and our stockholders.
25 unchanged sentences
Our stock price is subject to changes in financial analysts’ earnings estimates, valuation and recommendations, our credit ratings and other factors beyond our control such as the inflationary pressures, other macroeconomic factors and the impact on customer demand.
−Removed: Speculation and market sentiment over our results of operations, financial condition and transformation journey can also cause changes in our stock price.
−Removed: In addition to economic, political and market conditions, our stock price may be adversely impacted if our financial results are inconsistent with earlier projections or market expectations, announcements of new products or new technologies by us, our competitors or our customers, or announcements of major transactions, litigation developments or management changes.
+Added: Speculation and market sentiment over our results of operations, financial condition and implementation of our strategic priorities can also cause changes in our stock price.
+Added: addition to economic, political and market conditions, our stock price may be adversely impacted if our financial results are inconsistent with earlier projections or market expectations, announcements of new products or new technologies by us, our competitors or our customers, or announcements of major transactions, litigation developments or management changes.
A significant drop in our stock price could expose us to the risk of securities class action lawsuits, stockholder derivative lawsuits or other actions by stockholders, which may result in substantial costs and divert management’s attention and resources, which may adversely affect our business.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.