DXC Technology to Pay $8m SEC Penalty for Misleading Disclosure

SEC says DXC Technology made misleading disclosures about non-GAAP financial performance in multiple reporting periods from 2018 until early 2020.

• Says DXC “materially increased its reported non-GAAP net income by negligently misclassifying tens of millions of dollars of expenses as non-GAAP adjustments for so-called transaction, separation, and integration-related (TSI) costs and improperly excluding them from its non-GAAP earnings.”
• According to the order, by misclassifying TSI costs, DXC materially overstated its non-GAAP net income in three fiscal quarters
• Without admitting or denying the findings in the order, DXC consented to a cease-and-desist order, to pay an $8 million penalty, and to ...