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Acquisitions (Tables)

12 Months Ended

Mar. 31, 2020

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The acquired property and equipment are summarized in the following table:



(in millions)	Amount
Land, buildings, and leasehold improvements	$	8
Computers and related equipment	12
Furniture and other equipment	11
Total	$	31

The purchase price allocation for the HPES Merger was finalized during the fourth quarter of fiscal 2018. The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the HPES Merger date is as follows:



(in millions)	Fair Value
Cash and cash equivalents	$	938
Accounts receivable⁽¹⁾	4,102
Other current assets	530
Total current assets	5,570
Property and equipment	2,581
Intangible assets⁽²⁾	6,016
Other assets⁽²⁾	1,939
Total assets acquired	16,106
Accounts payable, accrued payroll, accrued expenses, and other current liabilities	(4,605		)
Deferred revenue	(1,315		)
Long-term debt, net of current maturities	(4,806		)
Long-term deferred tax liabilities and income tax payable	(1,550		)
Other liabilities	(1,322		)
Total liabilities assumed	(13,598		)
Net identifiable assets acquired	2,508
Add: Fair value of non-controlling interests	(50		)
Goodwill	7,392
Total consideration transferred	$	9,850


⁽¹⁾	Includes aggregate adjustments of $203 million received from HPE in accordance with the provisions of the Separation Agreement.

⁽²⁾

Previously reported amounts were adjusted to reflect the reclassification of transition and transformation contract costs from intangible assets to other assets to conform to the current year presentation.

The purchase price allocation was finalized during the fourth quarter of fiscal 2020. 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

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The acquired identifiable intangible assets are summarized in the following table:



(in millions)	Amount		Estimated Useful Lives (Years)
Customer related intangibles	$	417	10
Trade names	143		20
Developed technology	6		3
Third-party purchased software	11		3
Total	$	577

Schedule of Business Acquisitions, Consideration Exchanged

Under the acquisition method of accounting, total consideration exchanged was:



(in millions)	Amount
Fair value of purchase consideration received by HPE stockholders⁽¹⁾	$	9,782
Fair value of HPES options assumed by CSC⁽²⁾	68
Total consideration transferred	$	9,850

⁽¹⁾

Represents the fair value of consideration received by HPE stockholders to give them 50.1% ownership in the combined company. The fair value of the purchase consideration transferred was based on a total of 141,865,656 shares of DXC common stock distributed to HPE stockholders as of the close of business on the record date (141,741,712 after the effect of 123,944 cancelled shares) at CSC's closing price of $69.01 per share on March 31, 2017.

⁽²⁾

Represents the fair value of certain stock-based awards of HPES employees that were unexercised on March 31, 2017, which were converted to DXC stock-based awards.

Summary of Pro Forma Information

The Company's statement of operations includes the following revenues and net income

attributable to Luxoft since the acquisition date:



(in millions)	Twelve Months Ended March 31, 2020⁽¹⁾
Revenues	$	695
Net income (loss)	$	(25	)

⁽¹⁾ Results for the fiscal year ended March 31, 2020 reflect operations subsequent to the acquisition date of June 14, 2019, not the full twelve months of fiscal 2020.