Divestitures

3 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

Fiscal 2023 Divestitures

During the first quarter of fiscal 2023, the Company sold insignificant businesses that resulted in a gain of $38 million. During the first quarter of fiscal 2023, the Company also classified certain insignificant businesses as held for sale and recognized a loss of $9 million.

Planned FDB Sale

During the third quarter of fiscal 2022, a subsidiary of DXC entered into a purchase agreement to sell (the "FDB Sale") its German financial services subsidiary ("FDB" or the "FDB Business") to the FNZ Group ("FNZ") for €300 million (approximately $314 million as of June 30, 2022), subject to certain adjustments. The closing of the transaction is subject to certain conditions, including receipt of certain regulatory consents. Until these regulatory constraints are satisfied, FDB continues to be reported within ongoing operations. At June 30, 2022, FDB held approximately $566 million in cash which primarily related to customer deposit liabilities.

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 included €10 million (approximately $12 million) related to future services to be provided by the Company. The HPS Sale resulted in a pre-tax gain on sale of $341 million, net of closing costs, for the three months ended June 30, 2021. The pre-tax gain on sale was further adjusted during subsequent quarters of fiscal 2022 resulting in a final pre-tax gain on sale of $331 million for fiscal 2022.

Other Divestitures

During the first quarter of fiscal 2022, the Company also 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.