Technology services provider Computer Sciences Corp., with East Hartford operations, has reached a deal in principle with the federal government to resolve a dispute over contract claims and it will record a $250 million charge in its second quarter as a result, The Associated Press reports.
The case had been pending before the Armed Services Board of Contract Appeals since November, when the government and CSC agreed to put their claims on hold and enter non-binding talks to resolve the claims and other contract issues.
Under the terms of the deal, CSC, based in Falls Church, Va., would receive a lump sum cash payment of $277 million and a five-year contract extension worth an estimated $1 billion.
CSC said it expects the non-cash, pre-tax charge of $250 million for the fiscal second quarter will reduce its earnings by an estimated $1.15 per share.
