Sales price adjustment related to prior year dispositions

  
Note 3 - 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 $331 million, net of closing costs.   
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 |  | 63  |  |
| Prepaid expenses  |  | 7  |  |
|  |  |  |
| Total current assets  |  | 104  |  |
| Intangible assets, net |  | 101  |  |
| Operating right-of-use assets, net |  | 3  |  |
| Goodwill |  | 81  |  |
| Deferred income taxes, net |  | 74  |  |
| Property and equipment, net |  | 4  |  |
| Other assets |  | 15  |  |
| Total non-current assets  |  | 278  |  |
| Total assets  |  | $ | 382  |  |
|  |  |  |
| Liabilities: |  |  |
| Accounts payable |  | $ | 4  |  |
| Accrued payroll and related costs |  | 7  |  |
| Current operating lease liabilities |  | 1  |  |
| Accrued expenses and other current liabilities |  | 20  |  |
| Deferred revenue and advance contract payments |  | 45  |  |
| Total current liabilities |  | 77  |  |
| Non-current deferred revenue |  | 10  |  |
| Long-term operating lease liabilities |  | 2  |  |
| Other long-term liabilities |  | 3  |  |
| Total long-term liabilities  |  | 15  |  |
| Total liabilities  |  | $ | 92  |  |
|  |  |  |

  
During fiscal 2022, the Company sold some insignificant businesses that resulted in a gain of $53 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.  
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