Assets Held for Sale

6 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

On March 9, 2020, DXC entered into a definitive agreement to sell its HHS Business to Veritas Capital for a cash consideration of enterprise value of $5.0 billion (including $85 million related to future services to be provided by the Company). The HHS Business is an end-to-end provider of technology-enabled, mission critical solutions that are fundamental to the administration and operations of health programs throughout the United States. The transaction closed on October 1, 2020. See Note 22 - "Subsequent Events."

As of September 30, 2020 the disposition of the HHS Business, reported as part of the GBS segment, met the requirements for presentation as assets held for sale under GAAP.

Assets held for sale are reported at carrying value, which is less than fair value. Assets held for sale and related liabilities as of September 30, 2020 were as follows:


(in millions)	September 30, 2020
Assets:
Cash and cash equivalents	$	3
Accounts receivable, net	74
Prepaid expenses	38
Other current assets	2
Total current assets held for sale	117
Intangible assets, net	1,308
Operating right-of-use assets, net	74
Goodwill	1,354

Property and equipment, net	43
Other assets	53
Total non-current assets held for sale	2,832
Total assets acquired	$	2,949

Liabilities:
Accounts payable	$	79
Accrued payroll and related costs	13
Current operating lease liabilities	27
Accrued expenses and other current liabilities	38
Deferred revenue and advance contract payments	20
Total current liabilities related to assets held for sale	177

Non-current deferred revenue	32
Long-term operating lease liabilities	48

Other long term liabilities	2
Total long-term liabilities related to assets held for sale	82
Total liabilities related to assets held for sale	$	259

During the second quarter of fiscal 2021, the Company entered into a definitive agreement to sell an insignificant business, which is also classified as held for sale.