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Divestitures | 6 Months Ended
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Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures | Divestitures Fiscal 2022 Divestitures HPS Sale On April 1, 2021, DXC completed the sale of its HPS Business to Dedalus for €468 million (approximately $551 million), which includes €10 million (approximately $12 million) related to future services to be provided by the Company. The sale proceeds were used to repay the remainder of two series of 4.45% senior notes due fiscal 2023 for $154 million and $165 million. The HPS Sale resulted in a pre-tax gain on sale of $341 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 following is a summary of the assets and liabilities distributed as part of the HPS Sale on April 1, 2021:
(in millions) |  | As of April 1, 2021
Assets: |  |
Cash and cash equivalents |  | $ | 34 |
Accounts receivable, net |  | 62 |
Prepaid expenses |  | 6 |
Total current assets |  | 102 |
Intangible assets, net |  | 101 |
Operating right-of-use assets, net |  | 3 |
Goodwill |  | 81 |
Deferred income taxes, net |  | 62 |
Property and equipment, net |  | 4 |
Other assets |  | 15 |
Total non-current assets |  | 266 |
Total assets |  | $ | 368 |
Liabilities: |  |
Accounts payable |  | $ | 4 |
Accrued payroll and related costs |  | 7 |
Current operating lease liabilities |  | 1 |
Accrued expenses and other current liabilities |  | 14 |
Deferred revenue and advance contract payments |  | 45 |
Total current liabilities |  | 71 |
Non-current deferred revenue |  | 10 |
Long-term operating lease liabilities |  | 2 |
Other long-term liabilities |  | 3 |
Total long-term liabilities |  | 15 |
Total liabilities |  | $ | 86 |
During the first quarter of fiscal 2022, the Company sold some insignificant businesses that resulted in a gain of $49 million. This was partially offset by $13 million in sales price adjustments related to prior year dispositions, which resulted from changes in estimated net working capital. Fiscal 2021 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 were 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 $2,014 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. Approximately $3.5 billion of the sale proceeds were used to prepay debt. DXC’s post-divestiture 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 the divestment. In addition, DXC and the HHS Business have service and commercial contracts that generally extend through fiscal 2023. The divestment of the HHS Business, reported as part of the GBS segment, 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 was included in income prior to its divestment. The following is a summary of the assets and liabilities distributed as part of the HHS Sale on October 1, 2020:
(in millions) |  | As of October 1, 2020
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 fiscal 2021, the Company sold some insignificant businesses that resulted in a net loss of $10 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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