Related Party Transactions

Allocation of Corporate Expenses

The statements of operations include an allocation of general corporate expenses from Parent, recorded within costs of services and selling, general and administrative, for certain management and support functions which were provided on a centralized basis within Parent. These allocations were $24 million and $158 million for the period from April 1, 2018 to May 31, 2018 and the fiscal year ended March 31, 2018, respectively.

Management of the Company and Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, USPS. These allocations may not, however, reflect the expense USPS would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if USPS had been a standalone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as IT and infrastructure.

Transfers to Parent, net

Transfers to Parent, net are included within Parent company investment. The components of the transfers to Parent, net on the statements of changes in equity for periods presented prior to the Spin-Off and Mergers were as follows:



(in millions)	Two Months Ended May 31, 2018			Fiscal Year Ended March 31, 2018
Cash pooling and general financing activities	$	(176	)	$	(506	)
Corporate allocations	24			158
Income taxes	7			19
Transfers to Parent, net	$	(145	)	$	(329	)

Related Party Transactions

For the fiscal years ended March 31, 2020 and 2019, the Company recognized related party revenue from DXC of $12 million and $13 million, respectively, and incurred related party obligations to DXC of $113 million and $74 million, respectively.

See Note 13 – “Income Taxes” for a description of the TMA between Perspecta and DXC.