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Acquisitions | 9 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
Acquisitions | Acquisitions Fiscal 2020 Acquisitions Luxoft Acquisition On June 14, 2019, DXC completed the acquisition of Luxoft, a digital service provider whose offerings encompass strategic consulting, custom software development services, and digital solution engineering for total consideration of $2.0 billion. In return, DXC received all of Luxoft's issued and outstanding Class A and Class B ordinary shares. The acquisition will combine Luxoft’s digital engineering capabilities with DXC’s expertise in IT modernization and integration. The purchase agreement (“Merger Agreement”) was entered into by DXC and Luxoft on January 6, 2019 and the transaction was closed on June 14, 2019 (the "acquisition date.") The transaction between DXC and Luxoft is an acquisition, with DXC as the acquirer and Luxoft as the acquiree, based on the fact that DXC acquired 100% of the equity interests and voting rights in Luxoft, and that DXC is the entity that transferred the cash consideration. The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the Luxoft acquisition date is as follows:
(in millions) |  | Fair Value
Cash and cash equivalents |  | $ | 113 |
Accounts receivable |  | 233 |
Other current assets |  | 15 |
Total current assets |  | 361 |
Property and equipment |  | 31 |
Intangible assets |  | 577 |
Other assets |  | 99 |
Total assets acquired |  | 1,068 |
Accounts payable, accrued payroll, accrued expenses, and other current liabilities |  | (121) |
Deferred revenue |  | (8) |
Long-term deferred tax liabilities and income tax payable |  | (106) |
Other liabilities |  | (72) |
Total liabilities assumed |  | (307) |
Net identifiable assets acquired |  | 761 |
Goodwill |  | 1,262 |
Total consideration transferred |  | $ | 2,023 |
Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed at the acquisition date. The goodwill recognized with the acquisition was attributable to the synergies expected to be achieved by combining the businesses of DXC and Luxoft, expected future contracts and the acquired workforce. The cost-saving opportunities are expected to include improved operating efficiencies and asset optimization. The total goodwill arising from the acquisition was allocated to Global Business Services ("GBS") and is not deductible for tax purposes. The Company valued current assets and liabilities using existing carrying values as an estimate of the approximate fair value of those items at the acquisition date except for certain contract receivables for which the Company determined fair value based on a cost plus margin approach. The Company valued acquired property and equipment using predominately the direct capitalization method of the income approach and in certain specific cases, the Company determined that the net book value represents the fair value. The Company valued customer relationships using the multi-period excess earnings method under the income approach and valued trade names and developed technology using a relief from royalty method under the income approach. The Company determined that the net book value of the purchased software represents the fair value. Below are the estimated useful lives of the acquired intangibles:
|  | Estimated Useful Lives (Years)
Customer related intangibles |  | 10
Trade names |  | 20
Developed technology |  | 3
Third-party purchased software |  | 3
The Company valued deferred tax liabilities based on statutory tax rates in the jurisdictions of the legal entities where the acquired non-current assets and liabilities are taxed.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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