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2a. Perspecta Stock Issues This page is one step of our Stock Recovery Process. There is a link to the next step at the end of this page. If you haven't gone through the previous steps to determine which of six HP-related stocks you should have, start here: Employee Stock (Updated Apr 4, 2022.) Website operated by volunteers. Not officially endorsed or supported. Comments: info@hpalumni.org "Potential Private Retirement Benefit" letter from Social Security. If "Type of Benefit" is "A" -- you rolled to a different plan, bought an annuity, or took cash. How to decode and what to do: hpalumni.org/PotentialBenefitLetter. If you ever worked for Perspecta, also see this page: Perspecta Taxes on purchase of Perspecta by Peraton Cost basis for any DXC stock acquired through ownership of HP stock and the subsequent breakup of HP. Depending on when and how you acquired HP or HPE stock, you may now have stock in up to six completely separate HP-related companies in various accounts -- or have missed cash payouts. (The companies currently include: HP Inc. Hewlett Packard Enterprise, DXC, Micro Focus, Agilent, and Keysight. Details: https://www.hpalumni.org/hptimeline ) Your Perspecta cost basis depends on the chain of spinoffs as HP was broken up: HP spun off HPE on 2015-10-21. HPE spun off DXC on 2017-03-20. DXC spun off Perspecta (PRSP) on 2018-05-25. Perspecta was bought by Peraton in on 2021-05-06. Peraton paid $29.35 cash in exchange for each Perspecta share -- a 49.7% premium over last closing price before public reports. PRSP shares have vanished from your account. Either cash was added to your account or a check was mailed by approx. 2021-06-02. Step 1. Determine the average per-share cost basis for all the HPE stock you owned at the time of the Perspecta buyout. An HP Alumni team has developed a process to determine what stock you should have, find it, and check your cost basis records. hpalumni.org/stock If you don't have good records -- or did not input your lot-and-cost information into your broker's system -- you can use our spreadsheet to estimate your cost basis for each HP-related stock for any span of HP employment from 7/1/1959 through the 11/1/2000 plan changeover. https://www.hpalumni.org/StockSpread Step 2. Use your average per-share cost basis for your HPE stock and the information on this page to determine the cost basis of your Perspecta shares. https://www.hpalumni.org/StockHowMany (A minor factor: At several stages, the number of shares you received was rounded down -- with cash paid for the fractional share.) DXC's Tax Basis Worksheet recommends allocating 87.06% to DXC and 12.94% to PRSP. (More info from DSC: Perspecta Merger Tax Documentation.) Note that brokerages, plan administrators, and transfer agents vary (sometimes dramatically) in how (or if) they make gain/loss and cost basis calculations and in what they report to the IRS. Each of hundreds of firms is expected to read SEC filings, analyze Corporate Action Notices, and update the records they maintain on behalf of their clients. Peraton stock history Sequence of related stock events from HPAA's detailed Stock Decoder table:
2021: Perspecta purchased by Peraton - Details May 6, 2021. PRSP was bought by privately-held Federal IT contractor Peraton. Peraton paid $29.35 cash in exchange for each Perspecta share -- a 49.7% premium over last closing price before public reports. PRSP shares have vanished from your account. Either cash was added to your account or check mailed by approx. 6/2/21. Some non-US members report that their bank charged a very high currency conversion fee when they deposited the check. Perspecta had 14,000 employees. Peraton previously bought part of Northrop Grumman. The resulting company has 22,000 employees -- 7,500 with Top Secret clearance. VirginiaBusiness news story new company structure It does not appear that small shareholders were individually notified of the completion of the sale. News Release Perspecta tax documentation: https://investors.dxc.com/resources/spin-off-tax-documentation What happens next depends on where your PRSP shares are held -- which, unless you moved them, will be at the same place your DXC shares are held (because DXC and Perspecta have chosen the same transfer agent.)
- If held in a brokerage account
(Fidelity, Merrill Lynch, etc.), the shares vanished from the
stock section of your account and cash was added to the cash
section of your account.
- If held by Perspecta's
transfer agent (EQ Equiniti shareowneronline.com), the
shares vanished from your EQ account and a check is being
mailed to your address of record: Previous event: 2018 Perspecta spun off DXC - Details On May 25, 2018, DXC spun off its 6,500-employee U.S. Public Sector Business and merged it with 3,800-employee intelligence community contractor Vencore and 3,700-employee background investigation firm KeyPoint to create Perspecta. DXC Notice If you owned DXC shares on May 25, 2018, you were issued shares in a new company called "Perspecta" -- with corresponding adjustment in value of your DXC shares. (This is not reflected in the HPAA's stock cost basis spreadsheets.) Stock details - 5/7/18 (including DXC's statement that the transaction is tax-free and a suggested "Tax Basis Worksheet') SEC filing Perspecta was a completely separate company from DXC -- not a legal successor corporation to DXC. To check for lost stock: Perspecta is incorporated in Delaware Time to untangle your stock! Depending on when and how you acquired HP or HPE stock, you may now have stock in up to six completely separate HP-related companies in various accounts -- or have missed cash payouts. An HP Alumni team has developed a process to determine what stock you should have, find it, and check your cost basis records. If you don't have good records -- or did not input your lot-and-cost information into your broker's system -- you can use our spreadsheet to estimate your cost basis for each HP-related stock for any span of employment from 7/1/1959 through the 11/1/2000 plan changeover. Employee Stock Background: Announcement - 10/11/17 and Transcript Press release - 3/8/18 Press release - 6/1/18 Cost basis: "...you will not recognize income, gain or loss as a result..." DXC/Perspecta tax basis letter DXC Investor Relations: https://investors.dxc.com/investor-relations From the "Resources" dropdown on the right, select "FAQs." Selecting "Spin-off Tax Documentation" gets you to the CSC/HPE and Perspecta tax documentation: https://investors.dxc.com/resources/spin-off-tax-documentation Finally, DXC's "Tax Basis Worksheet" for the Perspecta deal: https://s27.q4cdn.com/120381974/files/doc_downloads/2021/06/Tax-Basis-Worksheet.pdf "DXC assumed $600 million of net pension liability and $400 million of existing debt..." April 3, 2017 HPE press release on completion Your broker may have used a different formula than the one suggested in the Cost Basis letter provided by the company -- resulting in a somewhat different value. Check your brokerage account online -- or by examining a recent account statement -- to view your holdings in each stock going forward. Note 1. Yahoo Finance charts do not always accurately reflect stock splits and other events. Stock information and contacts: Perspecta transfer agent
(and distribution agent for the spinoff and merger) is Equiniti. (Source) DXC: Check both official DXC pages: Primary Employees and Alumni Unexpired HPE options: If you had unexpired HPE stock options and were transitioned to DXC, the HPE options in your Merrill Lynch account may have vanished in April 2017 -- with no notification. The HPE options were converted to DXC options and placed in a new Fidelity account. Presumably, something similar will be done for people transferred to Perspecta. Fidelity: :If you have an existing HP 401(k) or personal brokerage account at Fidelity, go to http://netbenefits.com and use your existing username and password. Otherwise, call 1-800-457-4015 (Outside US 1-508-787-9902 collect.) Fidelity (Don't go to a local Fidelity office.) Member advice
Peraton corporate address: (Source) |
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