Divestitures

During fiscal 2016, the Company completed the separation of NPS. As a result, the operating results for NPS were reclassified to discontinued operations. The following table details the components of discontinued operations:



	For the periods ended January 1, 2016
(in millions)	Three months ended			Nine months ended
Revenues	$	580		$	2,504
Costs of services	(446		)	(1,935		)
Selling, general and administrative	(15		)	(52		)
Depreciation and amortization	(23		)	(90		)
Restructuring costs	—			(1		)
Separation and merger costs	(47		)	(103		)
Interest expense	(4		)	(15		)
Other income, net	(1		)	21
Total income from discontinued operations, before income taxes	44			329
Income tax expense	(14		)	(113		)
Total income from discontinued operations	$	30		$	216

There was no gain or loss on disposition recognized as a result of the Separation.

The following selected financial information of NPS is included in the unaudited Condensed Consolidated Statements of Cash Flows:



(in millions)	Nine months ended January 1, 2016
Depreciation	$	76
Amortization	$	15
Capital expenditures	$	(75	)
Significant operating non-cash items:
Net gain on disposition of business	$	22
Significant investing non-cash items:
Capital expenditures in accounts payable	$	(7	)
Disposition of assets	$	(10	)

J. Michael Lawrie currently serves as CSC's Chief Executive Officer and as a member of its Board of Directors. Mr. Lawrie also served as Chairman of the Board of Directors of CSRA from November 27, 2015 until August 9, 2016. During his term on the CSRA Board, CSRA was considered a related party under ASC 850 "Related Party Disclosures."

Implementation of the Separation and CSC's post-Separation relationship with CSRA is governed by several agreements, including a master separation and distribution agreement and intellectual property (IP) matters, real estate matters, tax matters, non-U.S. agency and employee matters agreements.

Pursuant to the IP matters agreement, which grants CSRA perpetual, royalty-free, non-assignable licenses to certain software products, trademarks and workflow and design methodologies owned by CSC, CSRA agreed to pay CSC an annual net maintenance fee of $30 million per year for each of the five years following the Separation in exchange for maintenance services. During the first six months of fiscal 2017, the period during which CSRA was considered a related party, CSC recognized related party revenue in its unaudited Condensed Consolidated Statements of Operations of $15 million under the IP matters agreement and $26 million under various other commercial agreements with CSRA.