Computer Sciences Corp (NYSE: CSC), the technology service provider to governments and private industries announced that it has reached a settlement of claims with United States Government.
The Falls Church, Va company said the agreement made in principle was because of a dispute over contract claims and affirmed under the Contract Dispute Act of 1978.
The case has been forthcoming since November 19, 2010 and heard by the Armed Services Board of Contract Appeals.
“We are pleased we were able to reach an equitable agreement with the Government while preserving our important role in a critical government program,” proclaimed James Sheaffer, CSC president, North America Public Sector.
The agreement says Computer Sciences Corp will receive $277 Million in an upfront, lump sum cash payment as well as a five-year contract extension valued at up to $1 Billion.
The conditional agreement in principle must have settlement accord by both parties but Computer Sciences Corp still expects a non-tax pre-tax charge to its second fiscal quarter earnings amounting to $250 Million or reduced to approximately $1.15 per share.