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Divestitures | 9 Months Ended
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Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures | Divestitures HHS Sale On October 1, 2020, DXC completed the sale of its HHS Business to Veritas Capital. The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business for a total enterprise value of $5.0 billion (including $85 million related to future services to be provided by the Company). As part of the sale of the HHS business, $272 million of repurchased receivables, previously sold under the Milano Receivables Facility ("Milano Facility') (see Note 6 - "Receivables" to the financial statements), $12 million of prepaid maintenance, and $48 million of software licenses transferred to the HHS Business. DXC made payment for these assets during the third quarter of fiscal 2021.The repurchase of receivables and payment on prepaid maintenance are reported as operating cash outflows, and the payment for software license is considered an investing cash outflow. The HHS Sale resulted in a pre-tax gain on sale of $2,041 million, net of closing costs. The sale price is subject to adjustment based on changes in actual closing net working capital. Final potential working capital adjustments are pending. The sale was not subject to any financing condition or shareholder approval. Approximately $3.5 billion of the sale proceeds were used to prepay $1,250 million of Revolver Credit Facility, £600 million of GBP commercial paper (approximately $772 million), and the following term loan facilities: €350 million of Euro Term Loan due fiscal 2024 (approximately $410 million), $381 million of USD Term loan due fiscal 2025, A$500 million of AUD Term Loan due fiscal 2022 (approximately $358 million), and €250 million of Euro Term Loan due fiscal 2022 and 2023 (approximately $292 million). See Note 12 - "Debt" to the financial statements. Following the transaction close, DXC retains its remaining healthcare practice, relating to the pending HPS sale. DXC's post-divesture relationship with the HHS Business is governed by the Purchase Agreement, which provides for the allocation of assets, employees, liabilities and obligations (including property, employee benefits, litigation, and tax-related assets and liabilities) between DXC and the HHS Business attributable to periods prior to, at and after divestment. In addition, DXC and the HHS Business have service and commercial contracts that generally extend through fiscal 2023. As of September 30, 2020, the divestment of the HHS Business, reported as part of the GBS segment, met the requirements for presentation as assets held for sale under GAAP. However, it did not meet the requirements for presentation as discontinued operations as it did not represent a strategic shift that would have a major effect on DXC's operations and financial results and is included in income from continuing operations for the nine months ended December 31, 2020 and 2019 prior to its sale closing date. The following is a summary of the assets and liabilities distributed as part of the HHS Sale on October 1, 2020:
(in millions) |  |
Assets: |  |
Cash and cash equivalents |  | $ | 8 |
Accounts receivable, net |  | 295 |
Prepaid expenses |  | 39 |
Other current assets |  | 2 |
Total current assets |  | 344 |
Intangible assets, net |  | 1,308 |
Operating right-of-use assets, net |  | 74 |
Goodwill |  | 1,354 |
Property and equipment, net |  | 46 |
Other assets |  | 54 |
Total non-current assets |  | 2,836 |
Total assets |  | $ | 3,180 |
Liabilities: |  |
Accounts payable |  | $ | 79 |
Accrued payroll and related costs |  | 13 |
Current operating lease liabilities |  | 27 |
Accrued expenses and other current liabilities |  | 36 |
Deferred revenue and advance contract payments |  | 20 |
Total current liabilities |  | 175 |
Non-current deferred revenue |  | 32 |
Long-term operating lease liabilities |  | 48 |
Other long term liabilities |  | 2 |
Total long-term liabilities |  | 82 |
Total liabilities |  | $ | 257 |
During the third quarter of fiscal 2021, the Company sold an insignificant business that resulted in a gain of $5 million.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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