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2a. Perspecta Stock Issues
Part of HPAA's Stock Recovery Process: Employee Stock
(May 2, 2023) Website operated by volunteers. Not officially endorsed or supported.
If you received a letter from Social Security entitled "Potential Private Retirement Benefit." How to decode the letter and who to contact: Potential Benefit letter
If you have paper stock certificates. What to do: Stock Certificates
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.
You may now have stock in HP, HPE, Agilent, Keysight, and DXC in various accounts -- and may have missed cash payouts for Perspecta and Micro Focus. (The companies currently include: HP Inc. Hewlett Packard Enterprise, DXC, Micro Focus, Agilent, and Keysight. Details: HP Spinoff Timeline )
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.
On 2021-05-06, Perspecta was bought by Peraton. PRSP stock was retired. 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 paid into your brokerage cash 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 step-by-step process to determine what stock you should have, find it, and check your cost basis records. Stock Recovery Process
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 most HP/HPE-related stocks for any span of HP employment from 7/1/1959 through the 11/1/2000 plan changeover. Stock Spreadsheets
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. What stock should I have?
(A minor factor: At several stages, the number of shares you received was rounded down -- with cash paid for the fractional share.)
Note: Members report 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 (if anything) they report to the IRS. Members have reported variations between Fidelity, Morgan Stanley, Merrill Lynch, Schwab, TDAmeritrade, and Vanguard
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 paid into your brokerage cash account or a check was 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 to DXC.
Stock: You may now have stock in HP, HPE, Agilent, Keysight, and DXC in various accounts -- and may have missed cash payouts for Perspecta and Micro Focus. How many shares of which companies should I have? How much cash should I have received? Stock Recovery Process
"...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)
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 (If no password, keep hitting #.) (Outside US
Fidelity (Don't go to a local Fidelity office.)
Peraton corporate address: (Source)
Peraton corporate address: (Source)
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