CACI INTERNATIONAL INC /DE/, 10-K filed on 8/14/2020
Annual Report
v3.20.2
Document And Entity Information - USD ($)
 12 Months Ended
Jun. 30, 2020
Aug. 03, 2020
Dec. 31, 2019
Cover [Abstract]      
Entity Registrant Name CACI International Inc    
Entity Central Index Key 0000016058    
Trading Symbol CACI    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --06-30    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Common Stock, Shares Outstanding   25,096,775  
Entity Public Float     $ 6,180,118,785
Document Type 10-K    
Document Period End Date Jun. 30, 2020    
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity File Number 001-31400    
Entity Tax Identification Number 54-1345888    
Entity Address, Address Line One 1100 North Glebe Road    
Entity Address, City or Town Arlington    
Entity Address, State or Province VA    
Entity Address, Postal Zip Code 22201    
City Area Code 703    
Local Phone Number 841-7800    
Entity Interactive Data Current Yes    
Entity Tax Identification Number DE    
Document Annual Report true    
Document Transition Report false    
Title of 12(b) Security Common Stock    
Security Exchange Name NYSE    
Documents Incorporated by Reference Part III of this Form 10-K incorporates by reference certain information from the Registrant’s Proxy Statement to be filed with the Securities Exchange Commission (SEC) pursuant to Regulation 14A for the 2020 Annual Meeting of Stockholders.    
v3.20.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]      
Revenue $ 5,720,042 $ 4,986,341 $ 4,467,860
Costs of revenue:      
Direct costs 3,719,056 3,304,053 2,978,608
Indirect costs and selling expenses 1,432,602 1,218,544 1,076,356
Depreciation and amortization 110,688 85,877 72,196
Total costs of revenue 5,262,346 4,608,474 4,127,160
Income from operations 457,696 377,867 340,700
Interest expense and other, net 56,059 49,958 42,036
Income before income taxes 401,637 327,909 298,664
Income tax expense (benefit) 80,157 62,305 (2,507)
Net income $ 321,480 $ 265,604 $ 301,171
Basic earnings per share $ 12.84 $ 10.70 $ 12.23
Diluted earnings per share $ 12.61 $ 10.46 $ 11.93
Weighted-average basic shares outstanding 25,031 24,833 24,616
Weighted-average diluted shares outstanding 25,485 25,395 25,255
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]      
Net income $ 321,480 $ 265,604 $ 301,171
Other comprehensive income (loss):      
Foreign currency translation adjustment (4,990) (6,103) 1,986
Effects of post-retirement adjustments, net of tax 141 (109) 627
Change in fair value of interest rate swap agreements, net of tax (24,280) (17,914) 7,473
Other comprehensive income (loss), net of tax (29,129) (24,126) 10,086
Comprehensive income $ 292,351 $ 241,478 $ 311,257
v3.20.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Current assets:    
Cash and cash equivalents $ 107,236 $ 72,028
Accounts receivable, net 841,227 869,840
Prepaid expenses and other current assets 137,423 89,652
Total current assets 1,085,886 1,031,520
Goodwill 3,407,110 3,336,079
Intangible assets, net 406,885 [1] 436,115
Property and equipment, net 170,521 149,676
Operating lease right-of-use assets 330,767  
Supplemental retirement savings plan assets 96,355 92,736
Accounts receivable, long-term 9,629 7,381
Other long-term assets 35,319 33,336
Total assets 5,542,472 5,086,843
Current liabilities:    
Current portion of long-term debt 46,920 46,920
Accounts payable 89,961 118,917
Accrued compensation and benefits 338,760 290,274
Other accrued expenses and current liabilities 293,518 235,611
Total current liabilities 769,159 691,722
Long-term debt, net of current portion 1,357,519 1,618,093
Supplemental retirement savings plan obligations, net of current portion 103,004 92,291
Deferred income taxes 213,096 205,339
Operating lease liabilities, noncurrent 309,680  
Other long-term liabilities 128,704 107,932
Total liabilities 2,881,162 2,715,377
Commitments and contingencies
Shareholders’ equity:    
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding
Common stock $0.10 par value, 80,000 shares authorized; 42,525 issued and 25,093 outstanding at June 30, 2020 and 42,314 issued and 24,880 outstanding at June 30, 2019 4,253 4,231
Additional paid-in capital 573,744 576,277
Retained earnings 2,731,644 2,410,164
Accumulated other comprehensive loss (72,285) (43,156)
Treasury stock, at cost (17,432 and 17,434 shares, respectively) (576,181) (576,185)
Total CACI shareholders’ equity 2,661,175 2,371,331
Noncontrolling interest 135 135
Total shareholders’ equity 2,661,310 2,371,466
Total liabilities and shareholders’ equity $ 5,542,472 $ 5,086,843
[1] During FY2020, the Company removed $17.6 million in fully amortized intangible assets.
v3.20.2
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Jun. 30, 2020
Jun. 30, 2019
Statement Of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.10 $ 0.10
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized 80,000,000 80,000,000
Common stock, shares issued 42,525,000 42,314,000
Common stock, shares outstanding 25,093,000 24,880,000
Treasury stock, shares at cost 17,432,000 17,434,000
v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 321,480 $ 265,604 $ 301,171
Reconciliation of net income to net cash provided by operating activities:      
Depreciation and amortization 110,688 85,877 72,196
Amortization of deferred financing costs 2,346 2,406 4,061
Non-cash lease expense 73,248    
Loss on extinguishment of debt   363 104
Loss on disposal of assets 190 70 989
Stock-based compensation expense 29,302 25,272 23,628
Deferred income taxes 17,874 (1,009) (77,324)
Changes in operating assets and liabilities, net of effect of business acquisitions:      
Accounts receivable, net 34,550 96,754 (42,575)
Prepaid expenses and other assets (38,432) (5,372) (9,146)
Accounts payable and other accrued expenses (24,406) 70,692 1,097
Accrued compensation and benefits 46,769 8,387 13,544
Income taxes payable and receivable (25,118) 1,119 6,090
Deferred rent   (538) (183)
Operating lease liabilities (74,928)    
Long-term liabilities 45,142 5,672 27,808
Net cash provided by operating activities 518,705 555,297 321,460
CASH FLOWS FROM INVESTING ACTIVITIES      
Capital expenditures (72,303) (47,902) (41,594)
Cash paid for business acquisitions, net of cash acquired (106,226) (1,082,809) (76,910)
Other   2,729 3,898
Net cash used in investing activities (178,529) (1,127,982) (114,606)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from borrowings under bank credit facilities 1,698,000 2,531,500 477,000
Principal payments made under bank credit facilities (1,960,920) (1,928,420) (647,474)
Payment of financing costs under bank credit facilities   (3,177) (2,915)
Payment of contingent consideration (8,700) (616) (11,553)
Proceeds from employee stock purchase plans 7,432 5,702 4,929
Repurchases of common stock (7,806) (5,838) (5,138)
Payment of taxes for equity transactions (31,400) (19,595) (21,365)
Net cash provided by (used in) financing activities (303,394) 579,556 (206,516)
Effect of exchange rate changes on cash and cash equivalents (1,574) (1,037) 317
Net increase in cash and cash equivalents 35,208 5,834 655
Cash and cash equivalents, beginning of year 72,028 66,194 65,539
Cash and cash equivalents, end of year 107,236 72,028 66,194
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      
Cash paid during the period for income taxes, net of refunds 79,071 68,303 57,941
Cash paid during the period for interest 50,986 44,673 40,100
Non-cash financing and investing activities:      
Accrued capital expenditures 1,078 8,223 $ 609
Landlord sponsored tenant incentives $ 2,925 $ 5,180  
v3.20.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative effect adjustment of ASC 606
Common Stock
Additional Paid-in Capital
Retained Earnings
Retained Earnings
Cumulative effect adjustment of ASC 606
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Total CACI Shareholders' Equity
Total CACI Shareholders' Equity
Cumulative effect adjustment of ASC 606
Noncontrolling Interest
Beginning balance at Jun. 30, 2017 $ 1,793,721   $ 4,190 $ 569,080 $ 1,825,619   $ (29,116) $ (576,187) $ 1,793,586   $ 135
Beginning balance, shares at Jun. 30, 2017     41,896         17,435      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income 301,171       301,171       301,171    
Stock-based compensation expense 23,628     23,628         23,628    
Tax withholdings on restricted share vestings (21,344)   $ 24 (21,368)         (21,344)    
Tax withholdings on restricted share vestings (in shares)     243                
Change in fair value of interest rate swap agreements, net 7,473           7,473   7,473    
Currency translation adjustment 1,986           1,986   1,986    
Repurchases of common stock (5,138)     (383)       $ (4,755) (5,138)    
Repurchases of common stock (in shares)               36      
Treasury stock issued under stock purchase plans 4,763     7       $ 4,756 4,763    
Treasury stock issued under stock purchase plans (in shares)               (37)      
Post-retirement benefit costs 627           627   627    
Ending balance at Jun. 30, 2018 2,106,887   $ 4,214 570,964 2,126,790   (19,030) $ (576,186) 2,106,752   135
Ending balance, shares at Jun. 30, 2018     42,139         17,434      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income 265,604       265,604       265,604    
Stock-based compensation expense 25,272     25,272         25,272    
Tax withholdings on restricted share vestings (19,555)   $ 17 (19,572)         (19,555)    
Tax withholdings on restricted share vestings (in shares)     175                
Change in fair value of interest rate swap agreements, net (17,914)           (17,914)   (17,914)    
Currency translation adjustment (6,103)           (6,103)   (6,103)    
Repurchases of common stock (5,838)     (392)       $ (5,446) (5,838)    
Repurchases of common stock (in shares)               34      
Treasury stock issued under stock purchase plans 5,452     5       $ 5,447 5,452    
Treasury stock issued under stock purchase plans (in shares)               (34)      
Post-retirement benefit costs (109)           (109)   (109)    
Ending balance at Jun. 30, 2019 2,371,466 $ 17,770 $ 4,231 576,277 2,410,164 $ 17,770 (43,156) $ (576,185) 2,371,331 $ 17,770 135
Ending balance, shares at Jun. 30, 2019     42,314         17,434      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income 321,480       321,480       321,480    
Stock-based compensation expense 29,302     29,302         29,302    
Tax withholdings on restricted share vestings (31,271)   $ 22 (31,293)         (31,271)    
Tax withholdings on restricted share vestings (in shares)     211                
Change in fair value of interest rate swap agreements, net (24,280)           (24,280)   (24,280)    
Currency translation adjustment (4,990)           (4,990)   (4,990)    
Repurchases of common stock (7,806)     (622)       $ (7,184) (7,806)    
Repurchases of common stock (in shares)               34      
Treasury stock issued under stock purchase plans 7,268     80       $ 7,188 7,268    
Treasury stock issued under stock purchase plans (in shares)               (36)      
Post-retirement benefit costs 141           141   141    
Ending balance at Jun. 30, 2020 $ 2,661,310   $ 4,253 $ 573,744 $ 2,731,644   $ (72,285) $ (576,181) $ 2,661,175   $ 135
Ending balance, shares at Jun. 30, 2020     42,525         17,432      
v3.20.2
ORGANIZATION AND BASIS OF PRESENTATION
 12 Months Ended
Jun. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
ORGANIZATION AND BASIS OF PRESENTATION

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

Business Activities

CACI International Inc (collectively, with its consolidated subsidiaries, the Company, we, us and our) is a leading provider of information solutions and services primarily to the U.S. government. Other customers include state and local governments, commercial enterprises and agencies of foreign governments.

The Company’s operations are subject to certain risks and uncertainties including, among others, the dependence on contracts with federal government agencies, dependence on revenue derived from contracts awarded through competitive bidding, existence of contracts with fixed pricing, dependence on subcontractors to fulfill contractual obligations, dependence on key management personnel, ability to attract and retain qualified employees, ability to successfully integrate acquired companies, and current and potential competitors with greater resources.

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company.  All intercompany balances and transactions have been eliminated in consolidation.
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reported periods.  The most significant of these estimates and assumptions relate to estimating contract revenue and costs, measuring progress against the Company’s performance obligations, assessing the fair value of acquired assets and liabilities accounted for through business acquisitions, valuing and determining the amortization periods for long-lived intangible assets, assessing the recoverability of long-lived assets, reserves for accounts receivable, and reserves for contract related matters.  Management evaluates its estimates on an ongoing basis using the most current and available information.  However, actual results may differ significantly from estimates.  Changes in estimates are recorded in the period in which they become known.

Revenue Recognition

The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials (T&M) contracts.  Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services.  

We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration.  

At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations.  This evaluation requires professional judgment and it may impact the timing and pattern of revenue recognition.  If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation.  

When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract.  Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items.  For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue.  Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period.  Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances.  In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract.  This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation.

We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements.  This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision.  For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance.  We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations.  For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation.

When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion methodology.  For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.

Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract.  When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided.  When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation.

Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents.  The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program.  

Costs of Revenue

Costs of revenue includes all direct contract costs such as labor, materials, subcontractor costs, and indirect costs that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also includes expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at amounts earned less an allowance for doubtful accounts.  The Company periodically reassesses its allowance for doubtful accounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract specific factors.  Upon determination that a specific receivable is uncollectible, the receivable is written off against the allowance for doubtful accounts reserve.

Contract Assets

Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time.  Contract assets exclude billed and billable receivables.  

In addition, the costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances.  The incremental costs to fulfill a contract (e.g. ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation.  The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins.  These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance.  The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception.  

Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value.  

Contract Liabilities

Contract liabilities primarily include advance payments received from a customer in excess of revenue that may be recognized as of the balance sheet date.  The advance payment is subsequently recognized into revenue as the performance obligation is satisfied.

Remaining Performance Obligations

The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end.  The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle until such task orders are issued.  The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied.

The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations.  Based on this analysis, an adjustment to the period end balance may be required.

Cash and Cash Equivalents

The Company considers all investments with an original maturity of three months or less on their trade date to be cash equivalents. The Company classifies investments with an original maturity of more than three months but less than twelve months on their trade date as short-term marketable securities.  

Accounting for Business Combinations and Goodwill

The purchase price of an acquired business is allocated to the tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values, with the excess recorded as goodwill.  Determining the fair value of the acquired intangibles requires significant judgment in selecting underlying assumptions, including projected revenue growth rates, profit margins, and discount rates.  In some cases, the Company uses discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long-term business plans and recent operating performance.  Use of different estimates and judgments could yield materially different results.

The Company evaluates goodwill at least annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable.  The evaluation includes comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of such unit. The level at which the Company tests goodwill for impairment requires management to determine whether the operations below the operating segments constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results.  If the fair value exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds its fair value, the goodwill of the reporting unit may be impaired. Impairment is measured by comparing the implied fair value of the goodwill to its carrying value.  Separately identifiable intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if impairment indicators are present.

As part of the annual assessment, the Company estimates the fair value of its reporting units using both an income approach and a market approach.  The valuation process considers management’s estimates of the future operating performance of each reporting unit.  Companies in similar industries are researched and analyzed and management considers the domestic and international economic and financial market conditions, both in general and specific to the industry in which the Company operates, prevailing as of the valuation date.  The income approach utilizes discounted cash flows.  The Company calculates a weighted average cost of capital for each reporting unit in order to estimate the discounted cash flows.

The Company evaluates goodwill as of the first day of the fiscal fourth quarter.  In addition, the Company will perform interim impairment testing should circumstances requiring it arise.  The Company completed its annual goodwill assessment as of April 1, 2020 and no impairment charge was necessary as a result of this assessment.

Leases

The Company enters into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment.  These arrangements contain a lease when the Company controls the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset.  All of our leases are operating leases.

The Company records a right of use (ROU) asset and lease liability as of the lease commencement date equal to the present value of the remaining lease payments.  Most of our leases do not provide an implicit rate that can be readily determined.  Therefore, we use a discount rate based on the Company’s incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date.  The ROU asset is then adjusted for initial direct costs and certain lease incentives included in the contractual arrangement.  The Company has elected to not apply the lease recognition guidance for short-term equipment leases and to separate lease from non-lease components.  Our operating lease arrangements may contain options to extend the lease term or for early termination.  We account for these options when it is reasonably certain we will exercise them.  ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets.

Operating lease expense is recognized on a straight-line basis over the lease term and is recorded primarily within indirect costs and selling expenses on the consolidated statement of operations.  Variable lease expenses are generally recorded in the period they are incurred and are excluded from the ROU asset and lease liability.

Long-Lived Assets (Excluding Goodwill)

Long-lived assets such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Property and equipment is recorded at cost. Depreciation of equipment and furniture has been provided over the estimated useful life of the respective assets (ranging from three to eight years) using the straight-line method. Leasehold improvements are generally amortized using the straight-line method over the remaining lease term or the useful life of the improvements, whichever is shorter. Repairs and maintenance costs are expensed as incurred.  Separately identifiable definite-lived intangible assets are amortized over their respective estimated useful lives.

External Software Development Costs

Costs incurred in creating a software product to be sold or licensed for external use are expensed as incurred until technological feasibility has been established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. Thereafter, all such software development costs are capitalized and subsequently reported at the lower of unamortized cost or estimated net realizable value. Capitalized costs are amortized on a straight-line basis over the remaining estimated economic life of the product.

Supplemental Retirement Savings Plan

The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan.  Each participant directs his or her investments in the Supplemental Savings Plan (see Note 21).  

A Rabbi Trust is a grantor trust established to fund compensation for a select group of management. The assets of this trust are available to satisfy the claims of general creditors in the event of bankruptcy of the Company. The assets held by the Rabbi Trust are invested in corporate owned life insurance (COLI) products. The COLI products are recorded at cash surrender value in the consolidated financial statements as supplemental retirement savings plan assets. The amounts due to participants are based on contributions, participant investment elections, and other participant activity and are recorded as supplemental retirement savings plan obligations.

Income Taxes

Income taxes are accounted for using the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of assets and liabilities, and their respective tax bases, and operating loss and tax credit carry forwards. The Company accounts for tax contingencies in accordance with ASC 740-10-25, Income Taxes – Recognition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Estimates of the realizability of deferred tax assets are based on the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. Any interest or penalties incurred in connection with income taxes are recorded as part of income tax expense for financial reporting purposes.   

Costs of Acquisitions

Costs associated with legal, financial and other professional advisors related to acquisitions, whether successful or unsuccessful, are expensed as incurred.  

Foreign Currency Translation

The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the weighted-average exchange rate during the period. The Company’s primary practice is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency fluctuations. The net translation gains and losses are not included in net income, but are accumulated as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as incurred in indirect costs and selling expenses in the accompanying consolidated statements of operations.

Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock units (RSUs) that are no longer subject to a market or performance condition.  Information about the weighted-average number of basic and diluted shares is presented in Note 24.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts.  

The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2020. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.  

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to credit risk include accounts receivable and cash equivalents. Management believes that credit risk related to the Company’s accounts receivable is limited due to a large number of customers in differing segments and agencies of the U.S. government. Accounts receivable credit risk is also limited due to the credit worthiness of the U.S. government. Management believes the credit risk associated with the Company’s cash equivalents is limited due to the credit worthiness of the obligors of the investments underlying the cash equivalents. In addition, although the Company maintains cash balances at financial institutions that exceed federally insured limits, these balances are placed with high quality financial institutions.

Accounting for Sales of Financial Assets

The Company accounts for receivable transfers under its Master Accounts Receivable Purchase Agreement (MARPA) as sales under ASC 860, Transfers and Servicing, and derecognizes the sold receivables from its balance sheets.

Other Comprehensive Income (Loss)

Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $8.7 million, $6.4 million and $4.2 million for the years ended June 30, 2020, 2019 and 2018, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 17).

As of June 30, 2020 and 2019, accumulated other comprehensive loss included a loss of $38.6 million and $33.6 million, respectively, related to foreign currency translation adjustments, a loss of $33.2 million and $9.0 million, respectively, related to the fair value of its interest rate swap agreements, and a loss of $0.5 million and $0.6 million, respectively, related to unrecognized post-retirement costs.  

Commitments and Contingencies

The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity.  Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.
v3.20.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 12 Months Ended
Jun. 30, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

NOTE 3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Accounting Standards Updates Issued but Not Yet Adopted

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software (Subtopic 350-40). ASU 2018-15 becomes effective for the Company in the first quarter of FY2021 and will be applied prospectively. We do not expect a significant impact to our operating results, financial position or cash flows as a result of adopting this new standard.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. ASU 2016-13 becomes effective for the Company in the first quarter of FY2021. We do not expect a significant impact to our operating results, financial position or cash flows as a result of adopting this new standard.

Accounting Standards Updates Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform.  The guidance in this ASU is optional and expedients may be elected over time through December 31, 2022, as reference rate reform activities occur.  During the fourth quarter of FY2020, CACI elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives consistent with past presentation. Application of these expedients assisted in preserving the Company's presentation of derivatives as qualifying cash flow hedges. The Company continues to evaluate this guidance and may apply other elections, as applicable, as additional changes in the market occur.

In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance on accounting for leases.  The new standard requires lessees to put virtually all leases on the balance sheet by recognizing lease assets and lease liabilities. Lessor accounting is largely unchanged from that applied under previous guidance. The amended guidance was effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2018, and requires a modified retrospective approach.

The Company adopted this standard on July 1, 2019.  As part of our implementation, the Company accumulated data required to measure its existing leases, reviewed lease contracts, implemented a new lease accounting solution and evaluated accounting policy and internal control changes.  The Company adopted certain practical expedients provided under ASC 842, including reassessment of whether expired or existing contracts contain leases, reassessment of lease classification for expired or existing leases, reassessing initial direct costs for existing leases, and an election to separate lease from non-lease components.

Upon adoption of ASC 842, the Company recorded right of use assets of $354.3 million and current and non-current lease liabilities of $67.0 million and $331.8 million, respectively, on the consolidated balance sheet, inclusive of required reclassifications for prepaid and deferred rent, lease incentives, and other lease-related balances. 

The impact of adoption on our consolidated balance sheet is as follows (in thousands):

 

 

June 30, 2019

As Reported

Under ASC 840

 

 

Adjustments

Due to

ASC 842

 

 

July 1, 2019

Balance Under

ASC 842

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

$

89,652

 

 

$

(3,199

)

 

$

86,453

 

Operating lease right-of-use assets

 

—

 

 

 

354,317

 

 

 

354,317

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

235,611

 

 

 

59,034

 

 

 

294,645

 

Operating lease liabilities, noncurrent

 

—

 

 

 

331,761

 

 

 

331,761

 

Other long-term liabilities

 

107,932

 

 

 

(39,677

)

 

 

68,255

 

 

The standard had no impact on our results of operations or cash flows. In addition, new disclosures are provided to enable users to assess the amount, timing and uncertainty of cash flows arising from leases.
v3.20.2
ACQUISITIONS
 12 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
ACQUISITIONS

NOTE 4. ACQUISITIONS

Year Ended June 30, 2020

During the second quarter of FY2020, CACI completed three strategic acquisitions adding key capabilities in mission expertise and technology.  The aggregate purchase consideration was approximately $109.4 million.  The Company preliminarily recognized fair values of the assets acquired and liabilities assumed and allocated $70.3 million to goodwill and $29.5 million to intangible assets.  At June 30, 2020, the Company had not finalized the determination of fair values allocated to assets and liabilities.

On June 29, 2020, CACI entered into an agreement to acquire Ascent Vision Technologies (AVT) for a purchase price of approximately $350.0 million.  On August 11, 2020, CACI completed the acquisition.  AVT specializes in Electro-Optical Infrared payloads, On-Board Computer Vision Processing and C-UAS Solutions.

Year Ended June 30, 2019

Domestic Acquisitions

SE&A BU

On August 15, 2018, CACI acquired certain assets of the systems engineering and acquisition support services business unit (SE&A BU) of CSRA LLC, a managed affiliate of General Dynamics Information Technology, Inc. for purchase consideration of $96.1 million.  The Company recognized fair values of the assets acquired and liabilities assumed and allocated $46.4 million to goodwill and $8.9 million to intangible assets. The intangible assets consist of customer relationships. Of the value attributed to goodwill and intangible assets, approximately $55.3 million is deductible for income tax purposes.  The final purchase price allocation was completed in Q1 FY2020. The differences between the preliminary and final purchase price allocation did not have a material impact on CACI’s results of operations or financial position.

Mastodon

On January 29, 2019, CACI acquired all of the equity interests of Mastodon Design LLC (Mastodon) for a purchase consideration of $225.0 million, which includes a $220.0 million initial cash payment and $5.0 million of deferred consideration.  Mastodon specializes in the rapid design of rugged tactical communications, signals intelligence (SIGINT) and electronic warfare (EW) equipment.

The Company recognized fair values of the assets acquired and liabilities assumed and allocated $139.2 million to goodwill and $83.9 million to intangible assets.  The goodwill of $139.2 million is largely attributable to the assembled workforce of Mastodon and expected synergies between the Company and Mastodon.  The intangible assets consist of customer relationships of $19.8 million and technology of $64.1 million.  The fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 9 years for technology.  The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques.  Of the value attributed to goodwill and intangible assets, approximately $223.1 million is deductible for income tax purposes.  During the year ended June 30, 2020, CACI finalized its valuation of assets acquired and liabilities assumed.

LGS

On March 1, 2019, CACI acquired all of the equity interests of Legos Intermediate Holdings, LLC and MDCP Legos Blocker, Inc., the parent companies of LGS Innovations (LGS).  The purchase consideration was $758.2 million.  LGS is a leading provider of SIGINT and cyber products and solutions to the Intelligence Community and Department of Defense.

During the year ended June 30, 2020, CACI finalized its valuation of assets acquired and liabilities assumed.  Total purchase consideration of $758.2 million has been allocated to assets acquired and liabilities assumed as follows (in thousands):

 

Accounts receivable

 

$

85,066

 

Prepaid expenses and other current assets

 

 

19,922

 

Property and equipment

 

 

23,275

 

Intangible assets

 

 

147,650

 

Goodwill

 

 

530,826

 

Other long-term assets

 

 

127

 

Accounts payable

 

 

(10,309

)

Accrued compensation and benefits

 

 

(22,347

)

Other accrued expenses and current liabilities

 

 

(9,876

)

Deferred income taxes, noncurrent

 

 

60

 

Other long-term liabilities

 

 

(6,243

)

Total estimated consideration

 

$

758,151

 

 

The goodwill of $530.8 million is largely attributable to the assembled workforce of LGS and expected synergies between the Company and LGS.  The intangible assets consist of customer relationships of $86.9 million and technology of $60.8 million. The estimated fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 15 years for technology.  The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques.  Of the value attributed to goodwill and intangible assets, approximately $599.9 million is deductible for income tax purposes.

From the March 1, 2019 acquisition date through June 30, 2019, LGS generated $132.3 million of revenue and $1.3 million of net income. LGS’ net income includes the impact of $5.2 million of amortization of intangibles and $2.6 million of integration and restructuring costs from the acquisition date through June 30, 2019.  LGS’ net income does not include $11.4 million of acquisition-related expenses during the year ended June 30, 2019, which are included in indirect costs and selling expenses.

The following pro forma results are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the years presented or the results which may occur in the future. The following unaudited pro forma results of operations assume the LGS acquisition had occurred on July 1, 2017 (in thousands, except per share amounts):

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

Revenue

 

$

5,271,872

 

 

$

4,822,318

 

Net income

 

 

275,630

 

 

 

289,143

 

Basic EPS

 

 

11.10

 

 

 

11.75

 

Diluted EPS

 

 

10.85

 

 

 

11.45

 

 

Significant pro forma adjustments incorporated into the pro forma results above include the recognition of additional amortization expense related to acquired intangible assets and additional interest expense related to debt incurred to finance the acquisition.  Significant nonrecurring adjustments include the elimination of non-recurring acquisition-related expenses incurred during the year ended June 30, 2019.

International Acquisitions

Effective June 1, 2019 CACI Limited acquired 100 percent of the outstanding shares of Mood Enterprises Limited, a United Kingdom company that provides software and managed services to defense, national security and commercial organizations. Its technology platform improves enterprise transparency and enables significant improvement in business processes and is typically deployed in organizations with complex data environments where access to critical information in a timely manner is essential. The purchase consideration was approximately $9.1 million, which includes initial cash payments and deferred consideration.

Year Ended June 30, 2018

Domestic Acquisitions

On November 22, 2017, CACI acquired 100 percent of the outstanding membership interests of a business in the United States which provides cyber solutions.  The acquisition was financed with cash on hand.  The purchase consideration was $53.0 million, which includes a $40.1 million initial cash payment, $4.5 million of deferred consideration, $8.7 million estimated fair value of contingent consideration to be paid upon achieving certain metrics and a $0.3 million refund from the seller for a net working capital adjustment.  The Company recognized fair values of the assets acquired and liabilities assumed and allocated $26.7 million to goodwill and $24.9 million to intangible assets. The intangible assets primarily consist of customer relationships and acquired technology.  The purchase price and purchase price allocation was finalized as of March 31, 2018, with no significant changes to preliminary amounts.

On May 31, 2018, CACI acquired certain assets of an entity in the United States which constituted a business, providing Enterprise IT solutions.  The purchase consideration was $24.0 million, consisting of cash paid at closing.  The Company recognized fair values of the assets acquired and liabilities assumed and allocated $8.4 million to goodwill and $14.9 million to intangible assets. The intangible assets consist of customer relationships. The final purchase price allocation was completed during FY2019. The differences between the preliminary and final purchase price allocation did not have a material impact on CACI’s results of operations or financial position.

International Acquisitions

On October 1, 2017, CACI Limited acquired 100 percent of the outstanding shares of a United Kingdom IT consulting services and software engineering company. The purchase consideration was approximately $9.1 million, which includes initial cash payments, deferred consideration and an estimated net working capital payment.

On November 1, 2017, CACI Limited acquired 100 percent of the outstanding shares of a London-based software and mapping data company. The acquired company provides geographical information systems, logistics and route optimization software and related map data. The purchase consideration was approximately $7.5 million, which includes initial cash payments, deferred consideration and an estimated net working capital payment.
v3.20.2
ACCOUNTS RECEIVABLE
 12 Months Ended
Jun. 30, 2020
Accounts Receivable Net [Abstract]  
ACCOUNTS RECEIVABLE

NOTE 5. ACCOUNTS RECEIVABLE

Total accounts receivable, net of allowance for doubtful accounts of $3.0 million, $4.2 million, and $3.7 million at June 30, 2020, 2019, and 2018, respectively, consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Billed receivables

 

$

555,472

 

 

$

638,135

 

Billable receivables

 

 

223,867

 

 

 

141,632

 

Unbilled receivables

 

 

61,888

 

 

 

90,073

 

Total accounts receivable, current

 

 

841,227

 

 

 

869,840

 

Unbilled receivables, long-term

 

 

9,629

 

 

 

7,381

 

Total accounts receivable

 

$

850,856

 

 

$

877,221

 

 
v3.20.2
GOODWILL
 12 Months Ended
Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
GOODWILL

NOTE 6. GOODWILL

The changes in the carrying amount of goodwill for the years ended June 30, 2020 and 2019 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2018

 

$

2,514,520

 

 

$

106,315

 

 

$

2,620,835

 

Goodwill acquired (1)

 

 

710,165

 

 

 

9,038

 

 

 

719,203

 

Foreign currency translation

 

 

—

 

 

 

(3,959

)

 

 

(3,959

)

Balance at June 30, 2019

 

$

3,224,685

 

 

$

111,394

 

 

$

3,336,079

 

Goodwill acquired (1)

 

 

55,171

 

 

 

19,978

 

 

 

75,149

 

Foreign currency translation

 

 

—

 

 

 

(4,118

)

 

 

(4,118

)

Balance at June 30, 2020

 

$

3,279,856

 

 

$

127,254

 

 

$

3,407,110

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.20.2
INTANGIBLE ASSETS
 12 Months Ended
Jun. 30, 2020
Finite Lived Intangible Assets Net [Abstract]  
INTANGIBLE ASSETS

NOTE 7. INTANGIBLE ASSETS

Intangible assets consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020 (1)

 

 

2019

 

Intangible assets

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

570,562

 

 

$

549,552

 

Acquired technologies

 

 

129,925

 

 

 

137,959

 

Other

 

 

8

 

 

 

800

 

Intangible assets

 

 

700,495

 

 

 

688,311

 

Less accumulated amortization

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(271,708

)

 

 

(236,935

)

Acquired technologies

 

 

(21,900

)

 

 

(14,750

)

Other

 

 

(2

)

 

 

(511

)

Accumulated amortization

 

 

(293,610

)

 

 

(252,196

)

Total intangible assets, net

 

$

406,885

 

 

$

436,115

 

 

 

(1)

During FY2020, the Company removed $17.6 million in fully amortized intangible assets.

Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to twenty years. The weighted-average period of amortization for customer contracts and related customer relationships as of June 30, 2020 is 17.0 years, and the weighted-average remaining period of amortization is 13.6 years. The weighted-average period of amortization for acquired technologies as of June 30, 2020 is 10.4 years, and the weighted-average remaining period of amortization is 9.0 years.

Amortization expense for the years ended June 30, 2020, 2019 and 2018 was $59.3 million, $45.8 million and $38.2 million, respectively. Expected amortization expense for each of the fiscal years through June 30, 2025 and for years thereafter is as follows (in thousands):

 

 

 

Amount

 

Year ending June 30, 2021

 

$

58,273

 

Year ending June 30, 2022

 

 

55,174

 

Year ending June 30, 2023

 

 

50,071

 

Year ending June 30, 2024

 

 

43,289

 

Year ending June 30, 2025

 

 

37,046

 

Thereafter

 

 

163,032

 

Total intangible assets, net

 

$

406,885

 

 
v3.20.2
PROPERTY AND EQUIPMENT
 12 Months Ended
Jun. 30, 2020
Property Plant And Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 8. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Equipment and furniture

 

$

214,107

 

 

$

193,940

 

Leasehold improvements

 

 

160,723

 

 

 

149,935

 

Property and equipment, at cost

 

 

374,830

 

 

 

343,875

 

Less accumulated depreciation and amortization

 

 

(204,309

)

 

 

(194,199

)

Total property and equipment, net

 

$

170,521

 

 

$

149,676

 

Depreciation expense, including amortization of leasehold improvements, was $49.4 million, $36.4 million and $30.7 million for the years ended June 30, 2020, 2019 and 2018, respectively.
v3.20.2
ACCRUED COMPENSATION AND BENEFITS
 12 Months Ended
Jun. 30, 2020
Employee Related Liabilities Current [Abstract]  
ACCRUED COMPENSATION AND BENEFITS

NOTE 9. ACCRUED COMPENSATION AND BENEFITS

Accrued compensation and benefits consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Accrued salaries and withholdings

 

$

178,293

 

 

$

164,631

 

Accrued leave

 

 

123,972

 

 

 

97,832

 

Accrued fringe benefits

 

 

36,495

 

 

 

27,811

 

Total accrued compensation and benefits

 

$

338,760

 

 

$

290,274

 

 
v3.20.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES
 12 Months Ended
Jun. 30, 2019
Other Accrued Expenses And Current Liabilities [Abstract]  
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

NOTE 10. OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

Other accrued expenses and current liabilities consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Vendor obligations

 

$

82,104

 

 

$

90,238

 

Deferred revenue (Note 12)

 

 

57,082

 

 

 

55,667

 

MARPA payable (Note 14)

 

 

57,020

 

 

 

54,567

 

Operating lease liabilities, current (Note 16)

 

 

67,549

 

 

 

—

 

Other

 

 

29,763

 

 

 

35,139

 

Total other accrued expenses and current liabilities

 

$

293,518

 

 

$

235,611

 

 
v3.20.2
REVENUE RECOGNITION
 12 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
REVENUE RECOGNITION

NOTE 11. REVENUE RECOGNITION

We disaggregate our revenue arrangements by contract type, customer, and whether the Company performs on the contract as the prime or subcontractor.  We believe that these categories allow for a better understanding of the nature, amount, timing, and uncertainty of revenue and cash flows arising from our contracts.

Revenue by Contract Type

The Company generated revenue on our cost-plus-fee, firm fixed-price, and time-and-materials contracts as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

3,274,707

 

 

$

—

 

 

$

3,274,707

 

 

$

2,764,291

 

 

$

—

 

 

$

2,764,291

 

Firm fixed-price

 

 

1,524,381

 

 

 

105,094

 

 

 

1,629,475

 

 

 

1,365,052

 

 

 

100,507

 

 

 

1,465,559

 

Time and materials

 

 

757,584

 

 

 

58,276

 

 

 

815,860

 

 

 

700,107

 

 

 

56,384

 

 

 

756,491

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Customer Information

The Company generated revenue from our primary customer groups as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

3,999,261

 

 

$

—

 

 

$

3,999,261

 

 

$

3,489,854

 

 

$

—

 

 

$

3,489,854

 

Federal civilian agencies

 

 

1,467,801

 

 

 

—

 

 

 

1,467,801

 

 

 

1,263,681

 

 

 

—

 

 

 

1,263,681

 

Commercial and other

 

 

89,610

 

 

 

163,370

 

 

 

252,980

 

 

 

75,915

 

 

 

156,891

 

 

 

232,806

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Prime or Subcontractor

The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

5,057,930

 

 

$

163,370

 

 

$

5,221,300

 

 

$

4,429,439

 

 

$

156,891

 

 

$

4,586,330

 

Subcontractor

 

 

498,742

 

 

 

—

 

 

 

498,742

 

 

 

400,011

 

 

 

—

 

 

 

400,011

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

 

Significant Estimates

For many of our fixed price revenue arrangements and for revenue arrangements that have award or incentive fees, the Company uses an estimate at completion (EAC) to measure progress towards the complete satisfaction of its performance obligations.  For these revenue arrangements, revenue is recognized over time primarily using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion.  The EAC process requires the Company to use professional judgment when assessing risks, estimating contract revenue and costs, estimating variable consideration, and making assumptions for schedule and technical issues.  The Company periodically reassesses its EAC assumptions and updates its estimates as needed.  When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.

Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded.  For the twelve months June 30, 2020 and 2019, we recognized an increase to income before income taxes of $33.0 million ($0.95 per diluted share) and $19.7 million ($0.57 per diluted share), respectively.  The Company used its statutory tax rate when calculating the impact to diluted earnings per share.

Revenue recognized from previously satisfied performance obligations was $10.5 million for the twelve months ended June 30, 2020, compared with an immaterial amount for the twelve months ended June 30, 2019.  The change in revenue generally relates to final true-up adjustments to our estimated award or incentive fees in the period in which we receive the customer’s final performance score or when we can determine that more objective, contractually-defined criteria have been fully satisfied.  During the twelve months ended June 30, 2020, the Company received notification that certain contract close out risks had been mitigated on previously satisfied performance obligations and therefore recorded a reduction to its established reserve amount.

Remaining Performance Obligations

The Company’s remaining performance obligations balance as of period end represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts.  This balance excludes unexercised contract option years and task orders that may be issued underneath an IDIQ vehicle.  Our remaining performance obligations balance as of June 30, 2020 was $6.4 billion.

The Company expects to recognize approximately 80 percent of our remaining performance obligations balance as revenue over the next year and the remaining 20 percent thereafter.
v3.20.2
CONTRACT BALANCES
 12 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
CONTRACT BALANCES

NOTE 12. CONTRACT BALANCES

Contract assets are primarily comprised of conditional unbilled receivables in which revenue has been recognized but an invoice has not yet been issued to the customer as of the balance sheet date.  Contract assets exclude billed and billable receivables and are not stated above their net realizable value.

Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation.

Net contract assets (liabilities) consisted of the following (in thousands):

 

Description of Contract Related Balance

 

Financial Statement Classification

 

June 30,

2020

 

 

June 30,

2019

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

61,888

 

 

$

90,073

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

3,492

 

 

 

2,685

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

9,629

 

 

 

7,381

 

Costs to obtain – long-term

 

Other long-term assets

 

 

7,708

 

 

 

5,353

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities – short-term

 

Other accrued expenses and current liabilities

 

 

(57,082

)

 

 

(55,667

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities – long-term

 

Other long-term liabilities

 

 

(6,507

)

 

 

(7,445

)

Net contract assets (liabilities)

 

 

 

$

19,128

 

 

$

42,380

 

 

For the year ended June 30, 2020 and 2019, respectively, we recognized $48.7 million and $35.5 million of revenue that was included in a previously recorded contract liability as of the beginning of the period.
v3.20.2
INVENTORIES
 12 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
INVENTORIES

NOTE 13. INVENTORIES

Inventories consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Materials, purchased parts and supplies

 

$

36,692

 

 

$

37,368

 

Work in process

 

 

10,867

 

 

 

6,021

 

Finished goods

 

 

17,608

 

 

 

3,834

 

Total

 

$

65,167

 

 

$

47,223

 

Inventories are stated at the lower of cost (average cost or first-in, first-out) or net realizable value and are included in prepaid expenses and other current assets on the accompanying consolidated balance sheets.  The Company periodically assesses its current inventory balances and records a provision for damaged, deteriorated, or obsolete inventory based on historical patterns and forecasted sales.
v3.20.2
SALES OF RECEIVABLES
 12 Months Ended
Jun. 30, 2020
Transfers And Servicing Of Financial Assets [Abstract]  
SALES OF RECEIVABLES

NOTE 14. SALES OF RECEIVABLES

On December 27, 2019, the Company amended its MARPA with MUFG Bank, Ltd. (the Purchaser), for the sale of certain designated eligible U.S. government receivables.  The amendment extended the term of the MARPA to December 24, 2020.  Under the MARPA, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $200.0 million.  The Company’s receivables are sold under the MARPA without recourse for any U.S. government credit risk.

The Company accounts for receivable transfers under the MARPA as sales under ASC 860, Transfers and Servicing, and derecognizes the sold receivables from its balance sheets.  The fair value of the sold receivables approximated their book value due to their short-term nature.  

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services.  The Company estimated that its servicing fee was at fair value and therefore no servicing asset or liability related to these receivables was recognized as of June 30, 2020.  Proceeds from the sold receivables are reflected in our operating cash flows on the statement of cash flows.

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the

Year Ended June 30,

 

 

 

2020

 

 

2019

 

Beginning balance:

 

$

192,527

 

 

$

—

 

Sales of receivables

 

 

2,393,684

 

 

 

1,126,395

 

Cash collections

 

 

(2,386,211

)

 

 

(933,868

)

Outstanding balance sold to Purchaser: (1)

 

 

200,000

 

 

 

192,527

 

Cash collected, not remitted to Purchaser (2)

 

 

(57,020

)

 

 

(54,567

)

Remaining sold receivables

 

$

142,980

 

 

$

137,960

 

 

 

(1)

For the year ended June 30, 2020 and 2019, the Company recorded a net cash inflow in its cash flows from operating activities of $7.5 million and $192.5 million, respectively, from sold receivables.  MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.

 

(2)

Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2020 and 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.20.2
LONG-TERM DEBT
 12 Months Ended
Jun. 30, 2020
Long Term Debt [Abstract]  
LONG-TERM DEBT

NOTE 15. LONG-TERM DEBT

Long-term debt consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Bank credit facility – term loans

 

$

844,555

 

 

$

891,475

 

Bank credit facility – revolver loans

 

 

569,000

 

 

 

785,000

 

Principal amount of long-term debt

 

 

1,413,555

 

 

 

1,676,475

 

Less unamortized discounts and debt issuance costs

 

 

(9,116

)

 

 

(11,462

)

Total long-term debt

 

 

1,404,439

 

 

 

1,665,013

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,357,519

 

 

$

1,618,093

 

 

Bank Credit Facility

The Company has a $2,438.4 million credit facility (the Credit Facility), which consists of a $1,500.0 million revolving credit facility (the Revolving Facility) and a $938.4 million term loan (the Term Loan). The Revolving Facility has sub-facilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit.  At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $500.0 million or an amount subject to 3.50 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals.  The Credit Facility is available to refinance existing indebtedness and for general corporate purposes, including working capital expenses and capital expenditures.

The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,500.0 million. As of June 30, 2020, the Company had $569.0 million outstanding under the Revolving Facility and no borrowings on the swing line.  The Company pays a quarterly facility fee for the unused portion of the Revolving Facility.

The Term Loan is a five-year secured facility under which principal payments are due in quarterly installments of $11.7 million until the balance is due in full on June 30, 2024. As of June 30, 2020, the Company had $844.6 million outstanding under the Term Loan.

The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable rate based upon the Company’s consolidated total leverage ratio.  As of June 30, 2020, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 2.58 percent.

The Credit Facility requires the Company to comply with certain financial covenants, including a maximum total leverage ratio and a minimum interest coverage ratio.  The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility.  As of June 30, 2020, the Company was in compliance with all of the financial covenants.  A majority of the Company’s assets serve as collateral under the Credit Facility.

All debt issuance costs are being amortized from the date incurred to the expiration date of the Credit Facility.

The aggregate maturities of long-term debt at June 30, 2020 are as follows (in thousands):

 

Year ending June 30,

 

 

 

 

2021

 

$

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,272,795

 

Principal amount of long-term debt

 

 

1,413,555

 

Less unamortized discounts and debt issuance costs

 

 

(9,116

)

Total long-term debt

 

$

1,404,439

 

Cash Flow Hedges

The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations.  The Company has entered into several floating-to-fixed interest rate swap agreements for an aggregate notional amount of $800.0 million which hedge a portion of the Company’s floating rate indebtedness.  The swaps mature at various dates through 2026.  The Company has designated the swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed.  Realized gains and losses in connection with each required interest payment are reclassified from accumulated other comprehensive income or loss to interest expense.  The Company does not hold or issue derivative financial instruments for trading purposes.

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2020, 2019 and 2018 is as follows (in thousands):

 

 

 

Interest Rate Swaps

 

 

 

2020

 

 

2019

 

 

2018

 

Gain (loss) recognized in other comprehensive income

 

$

(26,915

)

 

$

(14,011

)

 

$

6,344

 

Amounts reclassified to earnings from accumulated

   other comprehensive loss

 

 

2,635

 

 

 

(3,903

)

 

 

1,129

 

Net current period other comprehensive income (loss)

 

$

(24,280

)

 

$

(17,914

)

 

$

7,473

 

 
v3.20.2
LEASES
 12 Months Ended
Jun. 30, 2020
Leases [Abstract]  
LEASES

NOTE 16. LEASES

All of the Company’s leases are operating leases. The current portion of operating lease liabilities is included in other accrued expenses and current liabilities in our consolidated balance sheets. Lease balances in our consolidated balance sheet are as follows (in thousands):

 

 

June 30,

 

 

 

2020

 

Operating lease right-of-use assets

 

$

330,767

 

 

 

 

 

 

Operating lease liabilities, current

 

 

67,549

 

Operating lease liabilities, noncurrent

 

 

309,680

 

 

 

$

377,229

 

The Company’s total lease cost is recorded primarily within indirect costs and selling expenses and had the following impact on the consolidated statement of operations (in thousands):

 

 

 

June 30,

 

 

 

2020

 

Operating lease cost

 

$

86,039

 

Short-term and variable lease cost

 

 

14,777

 

Sublease income

 

 

(1,201

)

Total lease cost

 

$

99,615

 

The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2020 are as follows (in thousands):  

 

Year ending June 30:

 

 

 

 

2021

 

$

78,302

 

2022

 

 

68,239

 

2023

 

 

62,529

 

2024

 

 

55,302

 

2025

 

 

47,430

 

Thereafter

 

 

106,067

 

Total undiscounted lease payments

 

 

417,869

 

Less:  imputed interest

 

 

(40,640

)

Total discounted lease liabilities

 

$

377,229

 

The weighted-average remaining lease term (in years) and weighted-average discount rate was 6.27 years and 3.14 percent, respectively.

Cash paid for operating leases was $87.1 million for the year ended June 30, 2020.  During the year ended June 30, 2020 operating lease liabilities arising from obtaining new ROU assets was $50.5 million, which includes all noncash changes arising from new or remeasured operating lease arrangements.

During April 2020, the Company entered into a lease agreement that will impact its financial statements starting in Q2 FY2021. Annual lease cost is expected to be approximately $6.0 million over a lease term of 12 years.

The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2019 are as follows (in thousands):

 

Year ending June 30:

 

 

 

 

2020

 

$

81,027

 

2021

 

 

72,331

 

2022

 

 

63,655

 

2023

 

 

54,056

 

2024

 

 

43,691

 

Thereafter

 

 

132,792

 

Total minimum lease payments

 

$

447,552

 

 
v3.20.2
OTHER LONG-TERM LIABILITIES
 12 Months Ended
Jun. 30, 2020
Other Liabilities Noncurrent [Abstract]  
OTHER LONG-TERM LIABILITIES

NOTE 17. OTHER LONG-TERM LIABILITIES

Other long-term liabilities consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Deferred rent, net of current portion

 

$

—

 

 

$

41,427

 

Interest rate swap agreements

 

 

43,168

 

 

 

12,264

 

Deferred and contingent acquisition consideration

 

 

740

 

 

 

6,510

 

Deferred revenue

 

 

6,507

 

 

 

7,445

 

Deferred payroll taxes

 

 

40,594

 

 

 

—

 

Accrued post-retirement obligations

 

 

6,715

 

 

 

5,982

 

Long-term incentive compensation

 

 

—

 

 

 

13,085

 

Reserve for unrecognized tax benefits

 

 

8,869

 

 

 

1,544

 

Transition tax

 

 

5,071

 

 

 

4,472

 

Other

 

 

17,040

 

 

 

15,203

 

Total other long-term liabilities

 

$

128,704

 

 

$

107,932

 

Accrued post-retirement obligations include projected liabilities for benefits the Company is obligated to provide under long-term care, group health, and executive life insurance plans, each of which is unfunded. Plan benefits are provided to certain current and former executives, their dependents and other eligible employees, as defined. Post-retirement obligations also include accrued benefits under supplemental retirement benefit plans covering certain executives. The expense recorded under these plans was $1.2  million during the year ended June 30, 2020 and $0.4 million during the year ended June 30, 2019, respectively.

The Company has entered into floating-to-fixed interest rate swap agreements related to a portion of the Company’s floating rate indebtedness (see Note 15).  See Note 23 for fair values of the swap agreements as of June 30, 2020 and 2019.

 
v3.20.2
BUSINESS SEGMENTS
 12 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 18. BUSINESS SEGMENTS

Segment Information

The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide information solutions and services to its customers. Its customers are primarily U.S. federal government agencies. Other customers of the Company’s domestic operations include commercial enterprises.  The Company places employees in locations around the world in support of its customers. International operations offer services to both commercial and non-U.S. government customers primarily within the Company’s business systems and enterprise IT markets. The Company evaluates the performance of its operating segments based on net income. Summarized financial information concerning the Company’s reportable segments is shown in the following tables.

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

 

 

(in thousands)

 

Year Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

Net income

 

 

302,822

 

 

 

18,658

 

 

 

321,480

 

Net assets

 

 

2,482,283

 

 

 

179,027

 

 

 

2,661,310

 

Goodwill

 

 

3,279,856

 

 

 

127,254

 

 

 

3,407,110

 

Total long-term assets

 

 

4,297,885

 

 

 

158,701

 

 

 

4,456,586

 

Total assets

 

 

5,293,588

 

 

 

248,884

 

 

 

5,542,472

 

Capital expenditures

 

 

70,499

 

 

 

1,804

 

 

 

72,303

 

Depreciation and amortization

 

 

105,874

 

 

 

4,814

 

 

 

110,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Net income

 

 

249,793

 

 

 

15,811

 

 

 

265,604

 

Net assets

 

 

2,206,109

 

 

 

165,357

 

 

 

2,371,466

 

Goodwill

 

 

3,224,685

 

 

 

111,394

 

 

 

3,336,079

 

Total long-term assets

 

 

3,927,783

 

 

 

127,540

 

 

 

4,055,323

 

Total assets

 

 

4,876,399

 

 

 

210,444

 

 

 

5,086,843

 

Capital expenditures

 

 

46,406

 

 

 

1,496

 

 

 

47,902

 

Depreciation and amortization

 

 

81,205

 

 

 

4,672

 

 

 

85,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,304,602

 

 

$

163,258

 

 

$

4,467,860

 

Net income

 

 

286,024

 

 

 

15,147

 

 

 

301,171

 

Net assets

 

 

1,948,768

 

 

 

158,119

 

 

 

2,106,887

 

Goodwill

 

 

2,514,520

 

 

 

106,315

 

 

 

2,620,835

 

Total long-term assets

 

 

2,975,620

 

 

 

127,395

 

 

 

3,103,015

 

Total assets

 

 

3,829,417

 

 

 

204,789

 

 

 

4,034,206

 

Capital expenditures

 

 

40,639

 

 

 

955

 

 

 

41,594

 

Depreciation and amortization

 

 

67,891

 

 

 

4,305

 

 

 

72,196

 

 

Interest income and interest expense are not presented above as the amounts attributable to the Company’s international operations are insignificant.  

 

Customer Information

The Company earned 95.6 percent, 95.3 percent and 94.8 percent of its revenue from various agencies and departments of the U.S. government for the years ended June 30, 2020, 2019 and 2018, respectively.

 
v3.20.2
OTHER COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
OTHER COMMITMENTS AND CONTINGENCIES

NOTE 19. OTHER COMMITMENTS AND CONTINGENCIES

General Legal Matters

The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity.

Government Contracting

Payments to the Company on cost-plus-fee and T&M contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) and other government agencies that do not utilize DCAA’s services.  The DCAA has completed audits of the Company’s annual incurred cost proposals through fiscal year 2018.  We are still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe our reserves for such are adequate. In the opinion of management, adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company.  In the course of those reviews, cost accounting and other issues are identified, discussed and settled.
v3.20.2
INCOME TAXES
 12 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 20. INCOME TAXES

The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017.  Among other things, the TCJA reduced the U.S. federal corporate tax rate from 35.0 percent to 21.0 percent effective on January 1, 2018.

The domestic and foreign components of income before provision for income taxes are as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Domestic

 

$

379,414

 

 

$

308,922

 

 

$

279,360

 

Foreign

 

 

22,223

 

 

 

18,987

 

 

 

19,304

 

Income before income taxes

 

$

401,637

 

 

$

327,909

 

 

$

298,664

 

The components of income tax expense (benefit) are as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

42,268

 

 

$

41,675

 

 

$

56,467

 

State and local

 

 

14,744

 

 

 

17,606

 

 

 

13,006

 

Foreign

 

 

5,271

 

 

 

4,033

 

 

 

5,344

 

Total current

 

 

62,283

 

 

 

63,314

 

 

 

74,817

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

12,940

 

 

 

(27

)

 

 

(80,395

)

State and local

 

 

5,465

 

 

 

(877

)

 

 

3,481

 

Foreign

 

 

(531

)

 

 

(105

)

 

 

(410

)

Total deferred

 

 

17,874

 

 

 

(1,009

)

 

 

(77,324

)

Total income tax expense (benefit)

 

$

80,157

 

 

$

62,305

 

 

$

(2,507

)

Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate as a result of the following (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Expected tax expense computed at federal statutory rate (1)

 

$

84,344

 

 

$

68,861

 

 

$

83,805

 

State and local taxes, net of federal benefit

 

 

15,965

 

 

 

13,216

 

 

 

11,860

 

Nonincludible and nondeductible items, net

 

 

3,133

 

 

 

1,971

 

 

 

1,832

 

Remeasurement of deferred taxes and transition tax

 

 

—

 

 

 

(2,182

)

 

 

(86,593

)

Effect of foreign tax rates

 

 

(377

)

 

 

(380

)

 

 

(1,261

)

R&D tax credit, net

 

 

(10,700

)

 

 

(6,755

)

 

 

(3,630

)

Other tax credits

 

 

(1,183

)

 

 

(2,138

)

 

 

(2,102

)

Stock-based compensation

 

 

(10,900

)

 

 

(7,493

)

 

 

(5,388

)

Other

 

 

(125

)

 

 

(2,795

)

 

 

(1,030

)

Total income tax expense (benefit)

 

$

80,157

 

 

$

62,305

 

 

$

(2,507

)

 

 

(1)

The U.S. federal statutory income tax rate for FY2020 and FY2019 is 21.0 percent.  The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA. 

The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation and post-retirement obligations

 

$

33,094

 

 

$

29,206

 

Reserves and accruals

 

 

41,137

 

 

 

30,205

 

Stock-based compensation

 

 

9,860

 

 

 

9,881

 

Lease liability

 

 

99,539

 

 

 

—

 

Interest rate swaps

 

 

11,349

 

 

 

2,688

 

Other asset

 

 

6,786

 

 

 

9,392

 

Total deferred tax assets

 

 

201,765

 

 

 

81,372

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Goodwill and other intangible assets

 

 

(273,088

)

 

 

(257,762

)

Unbilled revenue

 

 

(17,429

)

 

 

(17,640

)

Prepaid expenses

 

 

(6,444

)

 

 

(2,974

)

Right of use assets

 

 

(85,275

)

 

 

—

 

Property and equipment

 

 

(32,625

)

 

 

(8,335

)

Total deferred tax liabilities

 

 

(414,861

)

 

 

(286,711

)

Net deferred tax liability

 

$

(213,096

)

 

$

(205,339

)

 

The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment.  The Company is currently under examination by the Internal Revenue Service for year 2015; one state jurisdiction for years 2016 through 2018; and one state jurisdiction for years 2016 and 2017. The Company does not expect the resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows.

The effective income tax rate in FY2020, FY2019, and FY2018, was 20.0 percent, 19.0 percent, and (0.8) percent, respectively. The effective income tax rate increased in FY2020 primarily as a result of pretax book income increasing more than favorable credits and permanent items.  In each period, the effective income tax rate was favorably affected by excess tax benefits from employee stock-based payment awards as well as a benefit from the research and development tax credit.

U.S. income taxes have not been provided for undistributed earnings of foreign subsidiaries that have been permanently reinvested outside the United States. As of June 30, 2020, the estimated deferred tax liability associated with these undistributed earnings is approximately $1.4 million.

The Company’s total liability for unrecognized tax benefits as of June 30, 2020, 2019 and 2018 was approximately $8.8 million, $1.5 million and $4.1 million, respectively. Any amount, if recognized, would positively impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized benefits is shown in the table below (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Beginning of year

 

$

1,530

 

 

$

4,122

 

 

$

1,639

 

Additions based on current year tax positions

 

 

2,293

 

 

 

676

 

 

 

2,483

 

Lapse of statute of limitations

 

 

—

 

 

 

(164

)

 

 

—

 

Additions based on prior year tax positions

 

 

5,003

 

 

 

—

 

 

 

—

 

Reductions based on prior tax year positions

 

 

—

 

 

 

(3,104

)

 

 

—

 

End of year

 

$

8,826

 

 

$

1,530

 

 

$

4,122

 

The Company recognizes net interest and penalties as a component of income tax expense.  Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at June 30, 2020. As of June 30, 2020, the entire balance of unrecognized tax benefits is included in other long-term liabilities.
v3.20.2
RETIREMENT SAVINGS PLANS
 12 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
RETIREMENT SAVINGS PLANS

NOTE 21. RETIREMENT SAVINGS PLANS

401(k) Plan

The Company maintains a defined contribution plan under Section 401(k) of the Internal Revenue Code, the CACI $MART Plan (the 401(k) Plan). Employees can contribute up to 75 percent (subject to certain statutory limitations) of their total cash compensation. The Company provides matching contributions equal to 50 percent of the amount of salary deferral employees elect, up to 8 percent of each employee’s total calendar year cash compensation, as defined. The Company may also make discretionary profit sharing contributions to the 401(k) Plan. Employee contributions vest immediately. Employer contributions vest in full after three- years of employment. Total 401(k) Plan Company contribution expense for the years ended June 30, 2020, 2019, and 2018 were $46.9 million, $35.0 million, and $27.1 million, respectively.

The Company maintains several qualified 401(k) profit-sharing plans (PSP) that cover eligible employees.  Employees are eligible to participate in the PSP beginning on the first of the month following the start of employment and attainment of age 18.  Under the PSP, the Company may make discretionary contributions based on a percentage of the total compensation of all eligible participants.  Company contribution expense for the year ended June 30, 2020, 2019 and 2018 was $41.8 million, $32.0 million and $26.3 million, respectively.

Supplemental Savings Plan

The Company maintains the Supplemental Savings Plan through which, on a calendar year basis, officers at the director level and above can elect to defer for contribution to the Supplemental Savings Plan up to 50 percent of their base compensation and up to 100 percent of their bonuses. The Company provides a contribution of 5 percent of compensation for each participant’s compensation that exceeds the limit as set forth in IRC 401(a)(17) (currently $285,000 per year). The Company also has the option to make annual discretionary contributions. Company contributions vest five-years from the date of enrollment, and vesting is accelerated in the event of a change of control of the Company. Participant deferrals and Company contributions will be credited with the rate of return based on the investment options and asset allocations selected by the Participant. Participants may change their asset allocation as often as daily, if they so choose. A Rabbi Trust has been established to hold and provide a measure of security for the investments that finance benefit payments. Distributions from the Supplemental Savings Plan are made upon retirement, termination, death, or total disability.  The Supplemental Savings Plan also allows for in-service distributions.

Supplemental Savings Plan obligations due to participants totaled $110.7 million at June 30, 2020, of which $7.7 million is included in accrued compensation and benefits in the accompanying consolidated balance sheet. Supplemental Savings Plan obligations increased by $11.8 million during the year ended June 30, 2020, consisting of $4.9 million of investment gains, $14.1 million of participant compensation deferrals, and $1.5 million of Company contributions, offset by $8.7 million of distributions.  

The Company maintains COLI assets in a Rabbi Trust to offset the obligations under the Supplemental Savings Plan. The value of the COLI in the Rabbi Trust was $96.4 million at June 30, 2020 and COLI gains were $4.7 million for the year ended June 30, 2020.  The value of the COLI in the Rabbi Trust was $92.7 million at June 30, 2019 and COLI gains were $4.6 million for the year ended June 30, 2019.

Contribution expense for the Supplemental Savings Plan during the years ended June 30, 2020, 2019, and 2018, was $1.9 million, $1.6 million, and $1.2 million, respectively.
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION
 12 Months Ended
Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
STOCK PLANS AND STOCK-BASED COMPENSATION

NOTE 22. STOCK PLANS AND STOCK-BASED COMPENSATION

Historically, the Company grants stock options, SSARs, non-performance-based RSUs and performance-based RSUs to key employees. Stock-based compensation expense is recognized on a straight-line basis ratably over the respective vesting periods.  Performance-based RSUs are subject to achievement of a performance metric in addition to grantee service. Stock-based compensation expense for performance-based RSUs is recognized on an accelerated basis by treating each vesting tranche as if it was a separate grant. A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2020, 2019, and 2018, together with the income tax benefits realized, is as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Stock-based compensation included in indirect costs and

   selling expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock and RSU expense

 

$

29,302

 

 

$

25,272

 

 

$

23,628

 

Income tax benefit recognized for stock-based compensation

 

$

5,849

 

 

$

4,865

 

 

$

7,769

 

The Company recognizes the effect of expected forfeitures of equity grants by estimating an expected forfeiture rate for grants of equity instruments. Amounts recognized for expected forfeitures are subsequently adjusted periodically and at major vesting dates to reflect actual forfeitures.

The incremental income tax benefits realized upon the exercise or vesting of equity instruments are reported as operating cash flows. During the years ended June 30, 2020, 2019, and 2018, the Company recognized $13.5 million, $9.2 million, and $6.3 million of excess tax benefits, respectively, which have been reported as operating cash inflows in the accompanying consolidated statements of cash flows.

Equity Grants and Valuation

Under the terms of its 2016 Amended and Restated Incentive Compensation Plan (the 2016 Plan), the Company may issue, among others, non-qualified stock options, restricted stock, RSUs, SSARs, and performance awards, collectively referred to herein as equity instruments. The 2016 Plan was approved by the Company’s stockholders in November 2016 and amended and restated the 2006 Stock Incentive Plan (the 2006 Plan) which was due to expire at the end of the ten-year period. Grants that were made under the 2006 Plan, and equity instruments granted prior to approval of the 2016 Plan continue to be governed by the terms of the 2006 Plan. During the periods presented all equity instrument grants were made in the form of RSUs.

Annual grants under the 2016 Plan and the 2006 Plan are generally made to the Company’s key employees during the first quarter of the Company’s fiscal year and to members of the Company’s Board of Directors during the second quarter of the Company’s fiscal year. With the approval of its Chief Executive Officer, the Company also issues equity instruments to strategic new hires and to employees who have demonstrated superior performance.

Upon the vesting of restricted shares and RSUs, the Company fulfills its obligations under the equity instrument agreements by either issuing new shares of authorized common stock or by issuing shares from treasury. The total number of shares authorized by shareholders for grants under the 2016 Plan and its predecessor plan was 1,200,000 plus any forfeitures from the 2006 Plan. The aggregate number of grants that may be made may exceed this approved amount as forfeited restricted stock and RSUs become available for future grants. As of June 30, 2020, cumulative grants of 864,430 equity instruments underlying the shares authorized have been awarded, and 187,711 of these instruments have been forfeited.

The Company granted performance-based stock awards to key employees in October of 2019 and 2018 and September of 2017. The final number of RSUs that are earned by participants and vest is based on the achievement of a specified EPS for the fiscal year and on the average share price for the 90-day period ended for the following three years. If the 90-day average share price of the Company’s stock in years one, two and three exceeds the 90-day average share price at the grant date by 100 percent or more the number of shares ultimately awarded could range up to 200 percent of the specified target award. In addition to the performance and market conditions, there is a service vesting condition that stipulates 50 percent of the award will vest 3 years from the grant date and 50 percent will vest approximately 4 years from the grant date, depending on the award date.

The annual performance-based awards granted for each of the fiscal years presented were as follows:

 

 

 

Performance-based stock awards granted

 

 

Number of additional shares earned under performance-based stock awards

 

Fiscal year 2020

 

 

108,844

 

 

 

—

 

Fiscal year 2019

 

 

129,108

 

 

 

5,874

 

Fiscal year 2018

 

 

185,056

 

 

 

51,808

 

We account for stock-based payments to employees, including grants of employee stock awards and purchases under employee stock purchase plans, in accordance with ASC 718, Compensation-Stock Compensation, which requires that stock-based payments (to the extent they are compensatory) be recognized in our consolidated statements of operations based on their fair values.  The fair value of RSU grants are determined based on the Company’s common stock closing price on the date of grant. The fair value of RSUs with market-based vesting features is also measured on the grant date but uses a binomial lattice model.

We determine the fair value of our market-based and performance-based RSUs at the date of grant using generally accepted valuation techniques and the closing market price of our stock. The fair value for the annual grant made in October 2019 was determined using a Monte Carlo simulation model incorporating the following factors:  90-day average stock price at the grant date of $216.02 a share, risk free rate of return of 1.50 percent and expected volatility of 24.54 percent. Stock-based compensation cost is recognized as expense on an accelerated basis over the requisite service period for performance-based awards.  The weighted-average fair value of RSUs granted during the years ended June 30, 2020, 2019, and 2018, was $252.25, $201.27, and $146.27, respectively.

The Company also issues equity instruments in the form of RSUs under its Management Stock Purchase Plan (MSPP) and Director Stock Purchase Plan (DSPP). In addition, annual grants are made to members of the Company’s Board of Directors in the form of a set dollar value of RSUs.  Grants to members of the Board of Directors vest based on the passage of time and continued service as a Director of the Company.

Restricted shares and most non-performance-based RSUs vest in full three years from the date of grant. RSUs granted to the Company’s Chief Executive Officer in February 2012 have longer vesting periods. 

Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2020, 2019, and 2018, together with the corresponding weighted-average fair values, are as follows:

 

 

 

Restricted Stock and

Restricted Stock Units

 

 

 

Number

of Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested at June 30, 2017

 

 

834,607

 

 

$

71.20

 

Granted

 

 

276,871

 

 

 

146.27

 

Vested

 

 

(394,293

)

 

 

66.29

 

Forfeited

 

 

(53,198

)

 

 

95.03

 

Unvested at June 30, 2018

 

 

663,987

 

 

$

107.96

 

Granted

 

 

274,261

 

 

 

201.27

 

Vested

 

 

(276,626

)

 

 

61.85

 

Forfeited

 

 

(32,816

)

 

 

123.55

 

Unvested at June 30, 2019

 

 

628,806

 

 

$

134.10

 

Granted

 

 

271,542

 

 

 

252.25

 

Vested

 

 

(348,897

)

 

 

77.33

 

Forfeited

 

 

(49,528

)

 

 

181.89

 

Unvested at June 30, 2020

 

 

501,923

 

 

$

173.18

 

The total intrinsic value of RSUs that vested during the years ended June 30, 2020, 2019, and 2018 was $79.6 million, $53.0 million and $55.2 million, respectively, and the income tax benefit realized was $15.9 million, $10.2 million and $13.3 million, respectively.

As of June 30, 2020, there was no unrecognized compensation cost related to SSARs and stock options and $40.7 million of unrecognized compensation cost related to restricted stock and RSUs scheduled to be recognized over a weighted-average period of 2.5 years.

 Stock Purchase Plans

The Company adopted the 2002 Employee Stock Purchase Plan (ESPP), MSPP and DSPP in November 2002, and implemented these plans beginning July 1, 2003. There are 1,500,000, 500,000, and 75,000 shares authorized for grants under the ESPP, MSPP and DSPP, respectively.

The ESPP allows eligible full-time employees to purchase shares of common stock at 95 percent of the fair market value of a share of common stock on the last day of the quarter. The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter. The ESPP is a qualified plan under Section 423 of the Internal Revenue Code and, for financial reporting purposes, was amended effective July 1, 2005 so as to be considered non-compensatory. Accordingly, there is no stock-based compensation expense associated with shares acquired under the ESPP. As of June 30, 2020, participants have purchased 1,217,404 shares under the ESPP, at a weighted-average price per share of $61.49. Of these shares, 33,894 were purchased by employees at a weighted-average price per share of $211.97 during the year ended June 30, 2020. During the year ended June 30, 2013, the Company established a 10b5-1 plan to facilitate the open market purchase of shares of Company stock to satisfy its obligations under the ESPP.

The MSPP provides those senior executives with stock holding requirements a mechanism to receive RSUs in lieu of up to 100 percent of their annual bonus. For the fiscal years ended June 30, 2020, 2019, and 2018, RSUs awarded in lieu of bonuses earned were granted at 85 percent of the closing price of a share of the Company’s common stock on the date of the award, as reported by the New York Stock Exchange.  RSUs granted under the MSPP vest at the earlier of 1) three-years from the grant date, 2) upon a change of control of the Company, 3) upon a participant’s retirement at or after age 65, or 4) upon a participant’s death or permanent disability. Vested RSUs are settled in shares of common stock. The Company recognizes the value of the discount applied to RSUs granted under the MSPP as stock compensation expense ratably over the three-year vesting period. 

Activity related to the MSPP during the year ended June 30, 2020 is as follows:

 

 

 

MSPP

 

RSUs outstanding, June 30, 2019

 

 

2,921

 

Granted

 

 

1,805

 

Issued

 

 

(2,473

)

Forfeited

 

 

(30

)

RSUs outstanding, June 30, 2020

 

 

2,223

 

Weighted average grant date fair value as adjusted for the applicable discount

 

$

159.36

 

 

The DSPP allows directors to elect to receive RSUs at the market price of the Company’s common stock on the date of the award in lieu of up to 100 percent of their annual retainer fees. Vested RSUs are settled in shares of common stock.  There were no DSPP awards outstanding during the year ended June 30, 2020.
v3.20.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 23. FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.  Fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in an orderly transaction.  The market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability is known as the principal market.  When no principal market exists, the most advantageous market is used.  This is the market in which the reporting entity would sell the asset or transfer the liability with the price that maximizes the amount that would be received or minimizes the amount that would be paid.  Fair value is based on assumptions market participants would make in pricing the asset or liability.  Generally, fair value is based on observable quoted market prices or derived from observable market data when such market prices or data are available.  When such prices or inputs are not available, the reporting entity should use valuation models.

The Company’s financial assets and liabilities recorded at fair value on a recurring basis are categorized based on the priority of the inputs used to measure fair value. The inputs used in measuring fair value are categorized into three levels, as follows:

 

•

Level 1 Inputs – unadjusted quoted prices in active markets for identical assets or liabilities.

 

•

Level 2 Inputs – unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

 

•

Level 3 Inputs – amounts derived from valuation models in which unobservable inputs reflect the reporting entity’s own assumptions about the assumptions of market participants that would be used in pricing the asset or liability.

The Company’s financial instruments measured at fair value included interest rate swap agreements and contingent consideration in connection with business combinations.  The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and June 30, 2019, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

As of June 30,

 

 

 

Financial Statement

 

Fair Value

 

2020

 

 

2019

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Contingent consideration

 

Other accrued expenses and

   current liabilities

 

Level 3

 

$

—

 

 

$

12,000

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

—

 

 

$

2,081

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

—

 

 

$

43

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

43,168

 

 

$

12,264

 

 

The Company entered into interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.  Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss.

Various acquisitions contained provisions requiring that the Company pay contingent consideration in the event that the acquired businesses achieved certain specified earnings results.  The Company determined the fair value of the contingent consideration as of each acquisition date using a valuation model which included the evaluation of the most likely outcome and the application of an appropriate discount rate.  At the end of each reporting period, the fair value of the contingent consideration was remeasured and any changes were recorded in indirect costs and selling expenses.  During the years ended June 30, 2020 and 2019, this remeasurement resulted in a $3.0 million and $1.0 million net increase to the liability recorded, respectively.  The remaining contingent consideration was settled during Q3 FY2020.
v3.20.2
EARNINGS PER SHARE
 12 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

NOTE 24. EARNINGS PER SHARE

Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Net income

 

$

321,480

 

 

$

265,604

 

 

$

301,171

 

Weighted-average number of basic shares outstanding

   during the period

 

 

25,031

 

 

 

24,833

 

 

 

24,616

 

Dilutive effect of RSUs after application of treasury stock method

 

 

454

 

 

 

562

 

 

 

639

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,485

 

 

 

25,395

 

 

 

25,255

 

Basic earnings per share

 

$

12.84

 

 

$

10.70

 

 

$

12.23

 

Diluted earnings per share

 

$

12.61

 

 

$

10.46

 

 

$

11.93

 

 
v3.20.2
QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Jun. 30, 2020
Quarterly Financial Data [Abstract]  
QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 25. QUARTERLY FINANCIAL DATA (UNAUDITED)

This data is unaudited, but in the opinion of management, includes and reflects all adjustments that are normal and recurring in nature, and necessary, for a fair presentation of the selected data for these interim periods. Quarterly condensed financial operating results of the Company for the years ended June 30, 2020 and 2019, are presented below (in thousands except per share data).

 

 

 

Year Ended June 30, 2020

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,363,392

 

 

$

1,395,469

 

 

$

1,465,600

 

 

$

1,495,581

 

Income from operations

 

$

100,157

 

 

$

110,187

 

 

$

113,676

 

 

$

133,676

 

Net income

 

$

67,977

 

 

$

79,195

 

 

$

80,577

 

 

$

93,731

 

Basic earnings per share

 

$

2.73

 

 

$

3.16

 

 

$

3.21

 

 

$

3.74

 

Diluted earnings per share

 

$

2.66

 

 

$

3.11

 

 

$

3.16

 

 

$

3.68

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,894

 

 

 

25,065

 

 

 

25,078

 

 

 

25,089

 

Diluted

 

 

25,532

 

 

 

25,435

 

 

 

25,478

 

 

 

25,496

 

 

 

 

Year Ended June 30, 2019

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,165,864

 

 

$

1,181,641

 

 

$

1,264,958

 

 

$

1,373,878

 

Income from operations

 

$

99,600

 

 

$

102,263

 

 

$

94,908

 

 

$

81,096

 

Net income

 

$

78,833

 

 

$

68,596

 

 

$

68,145

 

 

$

50,030

 

Basic earnings per share

 

$

3.19

 

 

$

2.76

 

 

$

2.74

 

 

$

2.01

 

Diluted earnings per share

 

$

3.10

 

 

$

2.71

 

 

$

2.69

 

 

$

1.96

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,737

 

 

 

24,856

 

 

 

24,866

 

 

 

24,875

 

Diluted

 

 

25,424

 

 

 

25,338

 

 

 

25,348

 

 

 

25,472

 

 
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company.  All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reported periods.  The most significant of these estimates and assumptions relate to estimating contract revenue and costs, measuring progress against the Company’s performance obligations, assessing the fair value of acquired assets and liabilities accounted for through business acquisitions, valuing and determining the amortization periods for long-lived intangible assets, assessing the recoverability of long-lived assets, reserves for accounts receivable, and reserves for contract related matters.  Management evaluates its estimates on an ongoing basis using the most current and available information.  However, actual results may differ significantly from estimates.  Changes in estimates are recorded in the period in which they become known.
Revenue Recognition

Revenue Recognition

The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials (T&M) contracts.  Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services.  

We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration.  

At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations.  This evaluation requires professional judgment and it may impact the timing and pattern of revenue recognition.  If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation.  

When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract.  Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items.  For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue.  Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period.  Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances.  In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract.  This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation.

We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements.  This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision.  For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance.  We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations.  For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation.

When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion methodology.  For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.

Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract.  When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided.  When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation.

Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents.  The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program.  
Costs of Revenue

Costs of Revenue

Costs of revenue includes all direct contract costs such as labor, materials, subcontractor costs, and indirect costs that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also includes expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations.
Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at amounts earned less an allowance for doubtful accounts.  The Company periodically reassesses its allowance for doubtful accounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract specific factors.  Upon determination that a specific receivable is uncollectible, the receivable is written off against the allowance for doubtful accounts reserve.
Contract Assets

Contract Assets

Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time.  Contract assets exclude billed and billable receivables.  

In addition, the costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances.  The incremental costs to fulfill a contract (e.g. ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation.  The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins.  These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance.  The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception.  

Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value.  
Contract Liabilities

Contract Liabilities

Contract liabilities primarily include advance payments received from a customer in excess of revenue that may be recognized as of the balance sheet date.  The advance payment is subsequently recognized into revenue as the performance obligation is satisfied.

Remaining Performance Obligations

Remaining Performance Obligations

The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end.  The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle until such task orders are issued.  The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied.

The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations.  Based on this analysis, an adjustment to the period end balance may be required.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all investments with an original maturity of three months or less on their trade date to be cash equivalents. The Company classifies investments with an original maturity of more than three months but less than twelve months on their trade date as short-term marketable securities.  
Accounting for Business Combinations and Goodwill

Accounting for Business Combinations and Goodwill

The purchase price of an acquired business is allocated to the tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values, with the excess recorded as goodwill.  Determining the fair value of the acquired intangibles requires significant judgment in selecting underlying assumptions, including projected revenue growth rates, profit margins, and discount rates.  In some cases, the Company uses discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long-term business plans and recent operating performance.  Use of different estimates and judgments could yield materially different results.

The Company evaluates goodwill at least annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable.  The evaluation includes comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of such unit. The level at which the Company tests goodwill for impairment requires management to determine whether the operations below the operating segments constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results.  If the fair value exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds its fair value, the goodwill of the reporting unit may be impaired. Impairment is measured by comparing the implied fair value of the goodwill to its carrying value.  Separately identifiable intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if impairment indicators are present.

As part of the annual assessment, the Company estimates the fair value of its reporting units using both an income approach and a market approach.  The valuation process considers management’s estimates of the future operating performance of each reporting unit.  Companies in similar industries are researched and analyzed and management considers the domestic and international economic and financial market conditions, both in general and specific to the industry in which the Company operates, prevailing as of the valuation date.  The income approach utilizes discounted cash flows.  The Company calculates a weighted average cost of capital for each reporting unit in order to estimate the discounted cash flows.

The Company evaluates goodwill as of the first day of the fiscal fourth quarter.  In addition, the Company will perform interim impairment testing should circumstances requiring it arise.  The Company completed its annual goodwill assessment as of April 1, 2020 and no impairment charge was necessary as a result of this assessment.
Leases

Leases

The Company enters into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment.  These arrangements contain a lease when the Company controls the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset.  All of our leases are operating leases.

The Company records a right of use (ROU) asset and lease liability as of the lease commencement date equal to the present value of the remaining lease payments.  Most of our leases do not provide an implicit rate that can be readily determined.  Therefore, we use a discount rate based on the Company’s incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date.  The ROU asset is then adjusted for initial direct costs and certain lease incentives included in the contractual arrangement.  The Company has elected to not apply the lease recognition guidance for short-term equipment leases and to separate lease from non-lease components.  Our operating lease arrangements may contain options to extend the lease term or for early termination.  We account for these options when it is reasonably certain we will exercise them.  ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets.

Operating lease expense is recognized on a straight-line basis over the lease term and is recorded primarily within indirect costs and selling expenses on the consolidated statement of operations.  Variable lease expenses are generally recorded in the period they are incurred and are excluded from the ROU asset and lease liability.
Long-Lived Assets (Excluding Goodwill)

Long-Lived Assets (Excluding Goodwill)

Long-lived assets such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Property and equipment is recorded at cost. Depreciation of equipment and furniture has been provided over the estimated useful life of the respective assets (ranging from three to eight years) using the straight-line method. Leasehold improvements are generally amortized using the straight-line method over the remaining lease term or the useful life of the improvements, whichever is shorter. Repairs and maintenance costs are expensed as incurred.  Separately identifiable definite-lived intangible assets are amortized over their respective estimated useful lives.
External Software Development Costs

External Software Development Costs

Costs incurred in creating a software product to be sold or licensed for external use are expensed as incurred until technological feasibility has been established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. Thereafter, all such software development costs are capitalized and subsequently reported at the lower of unamortized cost or estimated net realizable value. Capitalized costs are amortized on a straight-line basis over the remaining estimated economic life of the product.
Supplemental Retirement Savings Plan

Supplemental Retirement Savings Plan

The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan.  Each participant directs his or her investments in the Supplemental Savings Plan (see Note 21).  

A Rabbi Trust is a grantor trust established to fund compensation for a select group of management. The assets of this trust are available to satisfy the claims of general creditors in the event of bankruptcy of the Company. The assets held by the Rabbi Trust are invested in corporate owned life insurance (COLI) products. The COLI products are recorded at cash surrender value in the consolidated financial statements as supplemental retirement savings plan assets. The amounts due to participants are based on contributions, participant investment elections, and other participant activity and are recorded as supplemental retirement savings plan obligations.
Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of assets and liabilities, and their respective tax bases, and operating loss and tax credit carry forwards. The Company accounts for tax contingencies in accordance with ASC 740-10-25, Income Taxes – Recognition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Estimates of the realizability of deferred tax assets are based on the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. Any interest or penalties incurred in connection with income taxes are recorded as part of income tax expense for financial reporting purposes.   
Costs of Acquisitions

Costs of Acquisitions

Costs associated with legal, financial and other professional advisors related to acquisitions, whether successful or unsuccessful, are expensed as incurred.  
Foreign Currency Translation

Foreign Currency Translation

The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the weighted-average exchange rate during the period. The Company’s primary practice is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency fluctuations. The net translation gains and losses are not included in net income, but are accumulated as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as incurred in indirect costs and selling expenses in the accompanying consolidated statements of operations.
Earnings Per Share

Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock units (RSUs) that are no longer subject to a market or performance condition.  Information about the weighted-average number of basic and diluted shares is presented in Note 24.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts.  

The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2020. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.  
Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to credit risk include accounts receivable and cash equivalents. Management believes that credit risk related to the Company’s accounts receivable is limited due to a large number of customers in differing segments and agencies of the U.S. government. Accounts receivable credit risk is also limited due to the credit worthiness of the U.S. government. Management believes the credit risk associated with the Company’s cash equivalents is limited due to the credit worthiness of the obligors of the investments underlying the cash equivalents. In addition, although the Company maintains cash balances at financial institutions that exceed federally insured limits, these balances are placed with high quality financial institutions.
Accounting for Sales of Financial Assets

Accounting for Sales of Financial Assets

The Company accounts for receivable transfers under its Master Accounts Receivable Purchase Agreement (MARPA) as sales under ASC 860, Transfers and Servicing, and derecognizes the sold receivables from its balance sheets.
Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $8.7 million, $6.4 million and $4.2 million for the years ended June 30, 2020, 2019 and 2018, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 17).

As of June 30, 2020 and 2019, accumulated other comprehensive loss included a loss of $38.6 million and $33.6 million, respectively, related to foreign currency translation adjustments, a loss of $33.2 million and $9.0 million, respectively, related to the fair value of its interest rate swap agreements, and a loss of $0.5 million and $0.6 million, respectively, related to unrecognized post-retirement costs.  
Commitments and Contingencies

Commitments and Contingencies

The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity.  Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Accounting Standards Updates Issued but Not Yet Adopted

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software (Subtopic 350-40). ASU 2018-15 becomes effective for the Company in the first quarter of FY2021 and will be applied prospectively. We do not expect a significant impact to our operating results, financial position or cash flows as a result of adopting this new standard.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. ASU 2016-13 becomes effective for the Company in the first quarter of FY2021. We do not expect a significant impact to our operating results, financial position or cash flows as a result of adopting this new standard.

Accounting Standards Updates Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform.  The guidance in this ASU is optional and expedients may be elected over time through December 31, 2022, as reference rate reform activities occur.  During the fourth quarter of FY2020, CACI elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives consistent with past presentation. Application of these expedients assisted in preserving the Company's presentation of derivatives as qualifying cash flow hedges. The Company continues to evaluate this guidance and may apply other elections, as applicable, as additional changes in the market occur.

In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance on accounting for leases.  The new standard requires lessees to put virtually all leases on the balance sheet by recognizing lease assets and lease liabilities. Lessor accounting is largely unchanged from that applied under previous guidance. The amended guidance was effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2018, and requires a modified retrospective approach.

The Company adopted this standard on July 1, 2019.  As part of our implementation, the Company accumulated data required to measure its existing leases, reviewed lease contracts, implemented a new lease accounting solution and evaluated accounting policy and internal control changes.  The Company adopted certain practical expedients provided under ASC 842, including reassessment of whether expired or existing contracts contain leases, reassessment of lease classification for expired or existing leases, reassessing initial direct costs for existing leases, and an election to separate lease from non-lease components.

Upon adoption of ASC 842, the Company recorded right of use assets of $354.3 million and current and non-current lease liabilities of $67.0 million and $331.8 million, respectively, on the consolidated balance sheet, inclusive of required reclassifications for prepaid and deferred rent, lease incentives, and other lease-related balances. 

The impact of adoption on our consolidated balance sheet is as follows (in thousands):

 

 

June 30, 2019

As Reported

Under ASC 840

 

 

Adjustments

Due to

ASC 842

 

 

July 1, 2019

Balance Under

ASC 842

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

$

89,652

 

 

$

(3,199

)

 

$

86,453

 

Operating lease right-of-use assets

 

—

 

 

 

354,317

 

 

 

354,317

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

235,611

 

 

 

59,034

 

 

 

294,645

 

Operating lease liabilities, noncurrent

 

—

 

 

 

331,761

 

 

 

331,761

 

Other long-term liabilities

 

107,932

 

 

 

(39,677

)

 

 

68,255

 

 

The standard had no impact on our results of operations or cash flows. In addition, new disclosures are provided to enable users to assess the amount, timing and uncertainty of cash flows arising from leases.
v3.20.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)
 12 Months Ended
Jun. 30, 2020
ASU 2014-09  
Summary of Impact of Adoption of ASC 606 on Financial Statements

The impact of adoption on our consolidated balance sheet is as follows (in thousands):

 

 

June 30, 2019

As Reported

Under ASC 840

 

 

Adjustments

Due to

ASC 842

 

 

July 1, 2019

Balance Under

ASC 842

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

$

89,652

 

 

$

(3,199

)

 

$

86,453

 

Operating lease right-of-use assets

 

—

 

 

 

354,317

 

 

 

354,317

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

235,611

 

 

 

59,034

 

 

 

294,645

 

Operating lease liabilities, noncurrent

 

—

 

 

 

331,761

 

 

 

331,761

 

Other long-term liabilities

 

107,932

 

 

 

(39,677

)

 

 

68,255

 

 
v3.20.2
ACQUISITIONS (Tables) - LGS
 12 Months Ended
Jun. 30, 2020
Business Acquisition [Line Items]  
Assets Acquired and Liabilities Assumed During the year ended June 30, 2020, CACI finalized its valuation of assets acquired and liabilities assumed.  Total purchase consideration of $758.2 million has been allocated to assets acquired and liabilities assumed as follows (in thousands):

 

Accounts receivable

 

$

85,066

 

Prepaid expenses and other current assets

 

 

19,922

 

Property and equipment

 

 

23,275

 

Intangible assets

 

 

147,650

 

Goodwill

 

 

530,826

 

Other long-term assets

 

 

127

 

Accounts payable

 

 

(10,309

)

Accrued compensation and benefits

 

 

(22,347

)

Other accrued expenses and current liabilities

 

 

(9,876

)

Deferred income taxes, noncurrent

 

 

60

 

Other long-term liabilities

 

 

(6,243

)

Total estimated consideration

 

$

758,151

 

 
Schedule of Unaudited Pro Forma Results of Operations The following unaudited pro forma results of operations assume the LGS acquisition had occurred on July 1, 2017 (in thousands, except per share amounts):

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

Revenue

 

$

5,271,872

 

 

$

4,822,318

 

Net income

 

 

275,630

 

 

 

289,143

 

Basic EPS

 

 

11.10

 

 

 

11.75

 

Diluted EPS

 

 

10.85

 

 

 

11.45

 

 
v3.20.2
ACCOUNTS RECEIVABLE (Tables)
 12 Months Ended
Jun. 30, 2020
Accounts Receivable Net [Abstract]  
Schedule of Total Accounts Receivable

Total accounts receivable, net of allowance for doubtful accounts of $3.0 million, $4.2 million, and $3.7 million at June 30, 2020, 2019, and 2018, respectively, consisted of the following (in thousands):

 

 

June 30,

 

 

 

2020

 

 

2019

 

Billed receivables

 

$

555,472

 

 

$

638,135

 

Billable receivables

 

 

223,867

 

 

 

141,632

 

Unbilled receivables

 

 

61,888

 

 

 

90,073

 

Total accounts receivable, current

 

 

841,227

 

 

 

869,840

 

Unbilled receivables, long-term

 

 

9,629

 

 

 

7,381

 

Total accounts receivable

 

$

850,856

 

 

$

877,221

 

 
v3.20.2
GOODWILL (Tables)
 12 Months Ended
Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Roll Forward of Goodwill

The changes in the carrying amount of goodwill for the years ended June 30, 2020 and 2019 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2018

 

$

2,514,520

 

 

$

106,315

 

 

$

2,620,835

 

Goodwill acquired (1)

 

 

710,165

 

 

 

9,038

 

 

 

719,203

 

Foreign currency translation

 

 

—

 

 

 

(3,959

)

 

 

(3,959

)

Balance at June 30, 2019

 

$

3,224,685

 

 

$

111,394

 

 

$

3,336,079

 

Goodwill acquired (1)

 

 

55,171

 

 

 

19,978

 

 

 

75,149

 

Foreign currency translation

 

 

—

 

 

 

(4,118

)

 

 

(4,118

)

Balance at June 30, 2020

 

$

3,279,856

 

 

$

127,254

 

 

$

3,407,110

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.20.2
INTANGIBLE ASSETS (Tables)
 12 Months Ended
Jun. 30, 2020
Finite Lived Intangible Assets Net [Abstract]  
Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020 (1)

 

 

2019

 

Intangible assets

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

570,562

 

 

$

549,552

 

Acquired technologies

 

 

129,925

 

 

 

137,959

 

Other

 

 

8

 

 

 

800

 

Intangible assets

 

 

700,495

 

 

 

688,311

 

Less accumulated amortization

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(271,708

)

 

 

(236,935

)

Acquired technologies

 

 

(21,900

)

 

 

(14,750

)

Other

 

 

(2

)

 

 

(511

)

Accumulated amortization

 

 

(293,610

)

 

 

(252,196

)

Total intangible assets, net

 

$

406,885

 

 

$

436,115

 

 

 

(1)

During FY2020, the Company removed $17.6 million in fully amortized intangible assets.
Expected Amortization Expense Expected amortization expense for each of the fiscal years through June 30, 2025 and for years thereafter is as follows (in thousands):

 

 

 

Amount

 

Year ending June 30, 2021

 

$

58,273

 

Year ending June 30, 2022

 

 

55,174

 

Year ending June 30, 2023

 

 

50,071

 

Year ending June 30, 2024

 

 

43,289

 

Year ending June 30, 2025

 

 

37,046

 

Thereafter

 

 

163,032

 

Total intangible assets, net

 

$

406,885

 
v3.20.2
PROPERTY AND EQUIPMENT (Tables)
 12 Months Ended
Jun. 30, 2020
Property Plant And Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Equipment and furniture

 

$

214,107

 

 

$

193,940

 

Leasehold improvements

 

 

160,723

 

 

 

149,935

 

Property and equipment, at cost

 

 

374,830

 

 

 

343,875

 

Less accumulated depreciation and amortization

 

 

(204,309

)

 

 

(194,199

)

Total property and equipment, net

 

$

170,521

 

 

$

149,676

 
v3.20.2
ACCRUED COMPENSATION AND BENEFITS (Tables)
 12 Months Ended
Jun. 30, 2020
Employee Related Liabilities Current [Abstract]  
Schedule of Accrued Compensation and Benefits

Accrued compensation and benefits consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Accrued salaries and withholdings

 

$

178,293

 

 

$

164,631

 

Accrued leave

 

 

123,972

 

 

 

97,832

 

Accrued fringe benefits

 

 

36,495

 

 

 

27,811

 

Total accrued compensation and benefits

 

$

338,760

 

 

$

290,274

 
v3.20.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES (Tables)
 12 Months Ended
Jun. 30, 2020
Other Accrued Expenses And Current Liabilities [Abstract]  
Schedule of Other Accrued Expenses and Current Liabilities

Other accrued expenses and current liabilities consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Vendor obligations

 

$

82,104

 

 

$

90,238

 

Deferred revenue (Note 12)

 

 

57,082

 

 

 

55,667

 

MARPA payable (Note 14)

 

 

57,020

 

 

 

54,567

 

Operating lease liabilities, current (Note 16)

 

 

67,549

 

 

 

—

 

Other

 

 

29,763

 

 

 

35,139

 

Total other accrued expenses and current liabilities

 

$

293,518

 

 

$

235,611

 
v3.20.2
REVENUE RECOGNITION (Tables)
 12 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor

Revenue by Contract Type

The Company generated revenue on our cost-plus-fee, firm fixed-price, and time-and-materials contracts as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

3,274,707

 

 

$

—

 

 

$

3,274,707

 

 

$

2,764,291

 

 

$

—

 

 

$

2,764,291

 

Firm fixed-price

 

 

1,524,381

 

 

 

105,094

 

 

 

1,629,475

 

 

 

1,365,052

 

 

 

100,507

 

 

 

1,465,559

 

Time and materials

 

 

757,584

 

 

 

58,276

 

 

 

815,860

 

 

 

700,107

 

 

 

56,384

 

 

 

756,491

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Customer Information

The Company generated revenue from our primary customer groups as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

3,999,261

 

 

$

—

 

 

$

3,999,261

 

 

$

3,489,854

 

 

$

—

 

 

$

3,489,854

 

Federal civilian agencies

 

 

1,467,801

 

 

 

—

 

 

 

1,467,801

 

 

 

1,263,681

 

 

 

—

 

 

 

1,263,681

 

Commercial and other

 

 

89,610

 

 

 

163,370

 

 

 

252,980

 

 

 

75,915

 

 

 

156,891

 

 

 

232,806

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Prime or Subcontractor

The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2020 and 2019 (in thousands):

 

 

 

Year Ended June 30, 2020

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

5,057,930

 

 

$

163,370

 

 

$

5,221,300

 

 

$

4,429,439

 

 

$

156,891

 

 

$

4,586,330

 

Subcontractor

 

 

498,742

 

 

 

—

 

 

 

498,742

 

 

 

400,011

 

 

 

—

 

 

 

400,011

 

Total

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

 
v3.20.2
CONTRACT BALANCES (Tables)
 12 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
Contract Assets and Liabilities

Net contract assets (liabilities) consisted of the following (in thousands):

 

Description of Contract Related Balance

 

Financial Statement Classification

 

June 30,

2020

 

 

June 30,

2019

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

61,888

 

 

$

90,073

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

3,492

 

 

 

2,685

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

9,629

 

 

 

7,381

 

Costs to obtain – long-term

 

Other long-term assets

 

 

7,708

 

 

 

5,353

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities – short-term

 

Other accrued expenses and current liabilities

 

 

(57,082

)

 

 

(55,667

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities – long-term

 

Other long-term liabilities

 

 

(6,507

)

 

 

(7,445

)

Net contract assets (liabilities)

 

 

 

$

19,128

 

 

$

42,380

 

 
v3.20.2
INVENTORIES (Table)
 12 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Components of Inventories

Inventories consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Materials, purchased parts and supplies

 

$

36,692

 

 

$

37,368

 

Work in process

 

 

10,867

 

 

 

6,021

 

Finished goods

 

 

17,608

 

 

 

3,834

 

Total

 

$

65,167

 

 

$

47,223

 
v3.20.2
SALES OF RECEIVABLES (Tables)
 12 Months Ended
Jun. 30, 2020
Transfers And Servicing Of Financial Assets [Abstract]  
Summary of MARPA Activity

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the

Year Ended June 30,

 

 

 

2020

 

 

2019

 

Beginning balance:

 

$

192,527

 

 

$

—

 

Sales of receivables

 

 

2,393,684

 

 

 

1,126,395

 

Cash collections

 

 

(2,386,211

)

 

 

(933,868

)

Outstanding balance sold to Purchaser: (1)

 

 

200,000

 

 

 

192,527

 

Cash collected, not remitted to Purchaser (2)

 

 

(57,020

)

 

 

(54,567

)

Remaining sold receivables

 

$

142,980

 

 

$

137,960

 

 

 

(1)

For the year ended June 30, 2020 and 2019, the Company recorded a net cash inflow in its cash flows from operating activities of $7.5 million and $192.5 million, respectively, from sold receivables.  MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.

 

(2)

Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2020 and 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.20.2
LONG-TERM DEBT (Tables)
 12 Months Ended
Jun. 30, 2020
Long Term Debt [Abstract]  
Schedule of Long-term Debt

Long-term debt consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Bank credit facility – term loans

 

$

844,555

 

 

$

891,475

 

Bank credit facility – revolver loans

 

 

569,000

 

 

 

785,000

 

Principal amount of long-term debt

 

 

1,413,555

 

 

 

1,676,475

 

Less unamortized discounts and debt issuance costs

 

 

(9,116

)

 

 

(11,462

)

Total long-term debt

 

 

1,404,439

 

 

 

1,665,013

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,357,519

 

 

$

1,618,093

 

 
Aggregate Maturities of Long-term Debt

The aggregate maturities of long-term debt at June 30, 2020 are as follows (in thousands):

 

Year ending June 30,

 

 

 

 

2021

 

$

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,272,795

 

Principal amount of long-term debt

 

 

1,413,555

 

Less unamortized discounts and debt issuance costs

 

 

(9,116

)

Total long-term debt

 

$

1,404,439

 
Cash Flow Hedges

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2020, 2019 and 2018 is as follows (in thousands):

 

 

 

Interest Rate Swaps

 

 

 

2020

 

 

2019

 

 

2018

 

Gain (loss) recognized in other comprehensive income

 

$

(26,915

)

 

$

(14,011

)

 

$

6,344

 

Amounts reclassified to earnings from accumulated

   other comprehensive loss

 

 

2,635

 

 

 

(3,903

)

 

 

1,129

 

Net current period other comprehensive income (loss)

 

$

(24,280

)

 

$

(17,914

)

 

$

7,473

 
v3.20.2
LEASES (Tables)
 12 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Summary of Lease Balances Lease balances in our consolidated balance sheet are as follows (in thousands):

 

 

June 30,

 

 

 

2020

 

Operating lease right-of-use assets

 

$

330,767

 

 

 

 

 

 

Operating lease liabilities, current

 

 

67,549

 

Operating lease liabilities, noncurrent

 

 

309,680

 

 

 

$

377,229

 
Summary of Lease Costs

The Company’s total lease cost is recorded primarily within indirect costs and selling expenses and had the following impact on the consolidated statement of operations (in thousands):

 

 

 

June 30,

 

 

 

2020

 

Operating lease cost

 

$

86,039

 

Short-term and variable lease cost

 

 

14,777

 

Sublease income

 

 

(1,201

)

Total lease cost

 

$

99,615

 
Schedule of Future Minimum Operating Lease Payments

The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2020 are as follows (in thousands):  

 

Year ending June 30:

 

 

 

 

2021

 

$

78,302

 

2022

 

 

68,239

 

2023

 

 

62,529

 

2024

 

 

55,302

 

2025

 

 

47,430

 

Thereafter

 

 

106,067

 

Total undiscounted lease payments

 

 

417,869

 

Less:  imputed interest

 

 

(40,640

)

Total discounted lease liabilities

 

$

377,229

 

The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2019 are as follows (in thousands):

 

Year ending June 30:

 

 

 

 

2020

 

$

81,027

 

2021

 

 

72,331

 

2022

 

 

63,655

 

2023

 

 

54,056

 

2024

 

 

43,691

 

Thereafter

 

 

132,792

 

Total minimum lease payments

 

$

447,552

 
v3.20.2
OTHER LONG-TERM LIABILITIES (Tables)
 12 Months Ended
Jun. 30, 2020
Other Liabilities Noncurrent [Abstract]  
Schedule of Other Long-Term Liabilities

Other long-term liabilities consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Deferred rent, net of current portion

 

$

—

 

 

$

41,427

 

Interest rate swap agreements

 

 

43,168

 

 

 

12,264

 

Deferred and contingent acquisition consideration

 

 

740

 

 

 

6,510

 

Deferred revenue

 

 

6,507

 

 

 

7,445

 

Deferred payroll taxes

 

 

40,594

 

 

 

—

 

Accrued post-retirement obligations

 

 

6,715

 

 

 

5,982

 

Long-term incentive compensation

 

 

—

 

 

 

13,085

 

Reserve for unrecognized tax benefits

 

 

8,869

 

 

 

1,544

 

Transition tax

 

 

5,071

 

 

 

4,472

 

Other

 

 

17,040

 

 

 

15,203

 

Total other long-term liabilities

 

$

128,704

 

 

$

107,932

 
v3.20.2
BUSINESS SEGMENTS (Tables)
 12 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Summarized Financial Information of Reportable Segments Summarized financial information concerning the Company’s reportable segments is shown in the following tables.

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

 

 

(in thousands)

 

Year Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

5,556,672

 

 

$

163,370

 

 

$

5,720,042

 

Net income

 

 

302,822

 

 

 

18,658

 

 

 

321,480

 

Net assets

 

 

2,482,283

 

 

 

179,027

 

 

 

2,661,310

 

Goodwill

 

 

3,279,856

 

 

 

127,254

 

 

 

3,407,110

 

Total long-term assets

 

 

4,297,885

 

 

 

158,701

 

 

 

4,456,586

 

Total assets

 

 

5,293,588

 

 

 

248,884

 

 

 

5,542,472

 

Capital expenditures

 

 

70,499

 

 

 

1,804

 

 

 

72,303

 

Depreciation and amortization

 

 

105,874

 

 

 

4,814

 

 

 

110,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Net income

 

 

249,793

 

 

 

15,811

 

 

 

265,604

 

Net assets

 

 

2,206,109

 

 

 

165,357

 

 

 

2,371,466

 

Goodwill

 

 

3,224,685

 

 

 

111,394

 

 

 

3,336,079

 

Total long-term assets

 

 

3,927,783

 

 

 

127,540

 

 

 

4,055,323

 

Total assets

 

 

4,876,399

 

 

 

210,444

 

 

 

5,086,843

 

Capital expenditures

 

 

46,406

 

 

 

1,496

 

 

 

47,902

 

Depreciation and amortization

 

 

81,205

 

 

 

4,672

 

 

 

85,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,304,602

 

 

$

163,258

 

 

$

4,467,860

 

Net income

 

 

286,024

 

 

 

15,147

 

 

 

301,171

 

Net assets

 

 

1,948,768

 

 

 

158,119

 

 

 

2,106,887

 

Goodwill

 

 

2,514,520

 

 

 

106,315

 

 

 

2,620,835

 

Total long-term assets

 

 

2,975,620

 

 

 

127,395

 

 

 

3,103,015

 

Total assets

 

 

3,829,417

 

 

 

204,789

 

 

 

4,034,206

 

Capital expenditures

 

 

40,639

 

 

 

955

 

 

 

41,594

 

Depreciation and amortization

 

 

67,891

 

 

 

4,305

 

 

 

72,196

 

 
v3.20.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income Loss Before Income Tax Expense

The domestic and foreign components of income before provision for income taxes are as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Domestic

 

$

379,414

 

 

$

308,922

 

 

$

279,360

 

Foreign

 

 

22,223

 

 

 

18,987

 

 

 

19,304

 

Income before income taxes

 

$

401,637

 

 

$

327,909

 

 

$

298,664

 
Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

42,268

 

 

$

41,675

 

 

$

56,467

 

State and local

 

 

14,744

 

 

 

17,606

 

 

 

13,006

 

Foreign

 

 

5,271

 

 

 

4,033

 

 

 

5,344

 

Total current

 

 

62,283

 

 

 

63,314

 

 

 

74,817

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

12,940

 

 

 

(27

)

 

 

(80,395

)

State and local

 

 

5,465

 

 

 

(877

)

 

 

3,481

 

Foreign

 

 

(531

)

 

 

(105

)

 

 

(410

)

Total deferred

 

 

17,874

 

 

 

(1,009

)

 

 

(77,324

)

Total income tax expense (benefit)

 

$

80,157

 

 

$

62,305

 

 

$

(2,507

)
Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate as a result of the following (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Expected tax expense computed at federal statutory rate (1)

 

$

84,344

 

 

$

68,861

 

 

$

83,805

 

State and local taxes, net of federal benefit

 

 

15,965

 

 

 

13,216

 

 

 

11,860

 

Nonincludible and nondeductible items, net

 

 

3,133

 

 

 

1,971

 

 

 

1,832

 

Remeasurement of deferred taxes and transition tax

 

 

—

 

 

 

(2,182

)

 

 

(86,593

)

Effect of foreign tax rates

 

 

(377

)

 

 

(380

)

 

 

(1,261

)

R&D tax credit, net

 

 

(10,700

)

 

 

(6,755

)

 

 

(3,630

)

Other tax credits

 

 

(1,183

)

 

 

(2,138

)

 

 

(2,102

)

Stock-based compensation

 

 

(10,900

)

 

 

(7,493

)

 

 

(5,388

)

Other

 

 

(125

)

 

 

(2,795

)

 

 

(1,030

)

Total income tax expense (benefit)

 

$

80,157

 

 

$

62,305

 

 

$

(2,507

)

 

 

(1)

The U.S. federal statutory income tax rate for FY2020 and FY2019 is 21.0 percent.  The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA. 
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation and post-retirement obligations

 

$

33,094

 

 

$

29,206

 

Reserves and accruals

 

 

41,137

 

 

 

30,205

 

Stock-based compensation

 

 

9,860

 

 

 

9,881

 

Lease liability

 

 

99,539

 

 

 

—

 

Interest rate swaps

 

 

11,349

 

 

 

2,688

 

Other asset

 

 

6,786

 

 

 

9,392

 

Total deferred tax assets

 

 

201,765

 

 

 

81,372

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Goodwill and other intangible assets

 

 

(273,088

)

 

 

(257,762

)

Unbilled revenue

 

 

(17,429

)

 

 

(17,640

)

Prepaid expenses

 

 

(6,444

)

 

 

(2,974

)

Right of use assets

 

 

(85,275

)

 

 

—

 

Property and equipment

 

 

(32,625

)

 

 

(8,335

)

Total deferred tax liabilities

 

 

(414,861

)

 

 

(286,711

)

Net deferred tax liability

 

$

(213,096

)

 

$

(205,339

)

 
Schedule of Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized benefits is shown in the table below (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Beginning of year

 

$

1,530

 

 

$

4,122

 

 

$

1,639

 

Additions based on current year tax positions

 

 

2,293

 

 

 

676

 

 

 

2,483

 

Lapse of statute of limitations

 

 

—

 

 

 

(164

)

 

 

—

 

Additions based on prior year tax positions

 

 

5,003

 

 

 

—

 

 

 

—

 

Reductions based on prior tax year positions

 

 

—

 

 

 

(3,104

)

 

 

—

 

End of year

 

$

8,826

 

 

$

1,530

 

 

$

4,122

 
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Components of Stock-Based Compensation Expense and Related Tax Benefits A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2020, 2019, and 2018, together with the income tax benefits realized, is as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Stock-based compensation included in indirect costs and

   selling expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock and RSU expense

 

$

29,302

 

 

$

25,272

 

 

$

23,628

 

Income tax benefit recognized for stock-based compensation

 

$

5,849

 

 

$

4,865

 

 

$

7,769

 
Annual Performance-Based Awards Granted

The annual performance-based awards granted for each of the fiscal years presented were as follows:

 

 

 

Performance-based stock awards granted

 

 

Number of additional shares earned under performance-based stock awards

 

Fiscal year 2020

 

 

108,844

 

 

 

—

 

Fiscal year 2019

 

 

129,108

 

 

 

5,874

 

Fiscal year 2018

 

 

185,056

 

 

 

51,808

 
Summary of Activity Related to Restricted Stock and RSUs

Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2020, 2019, and 2018, together with the corresponding weighted-average fair values, are as follows:

 

 

 

Restricted Stock and

Restricted Stock Units

 

 

 

Number

of Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested at June 30, 2017

 

 

834,607

 

 

$

71.20

 

Granted

 

 

276,871

 

 

 

146.27

 

Vested

 

 

(394,293

)

 

 

66.29

 

Forfeited

 

 

(53,198

)

 

 

95.03

 

Unvested at June 30, 2018

 

 

663,987

 

 

$

107.96

 

Granted

 

 

274,261

 

 

 

201.27

 

Vested

 

 

(276,626

)

 

 

61.85

 

Forfeited

 

 

(32,816

)

 

 

123.55

 

Unvested at June 30, 2019

 

 

628,806

 

 

$

134.10

 

Granted

 

 

271,542

 

 

 

252.25

 

Vested

 

 

(348,897

)

 

 

77.33

 

Forfeited

 

 

(49,528

)

 

 

181.89

 

Unvested at June 30, 2020

 

 

501,923

 

 

$

173.18

 
Summary of Activity Related to MSPP

Activity related to the MSPP during the year ended June 30, 2020 is as follows:

 

 

 

MSPP

 

RSUs outstanding, June 30, 2019

 

 

2,921

 

Granted

 

 

1,805

 

Issued

 

 

(2,473

)

Forfeited

 

 

(30

)

RSUs outstanding, June 30, 2020

 

 

2,223

 

Weighted average grant date fair value as adjusted for the applicable discount

 

$

159.36

 

 
v3.20.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and June 30, 2019, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

As of June 30,

 

 

 

Financial Statement

 

Fair Value

 

2020

 

 

2019

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Contingent consideration

 

Other accrued expenses and

   current liabilities

 

Level 3

 

$

—

 

 

$

12,000

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

—

 

 

$

2,081

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

—

 

 

$

43

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

43,168

 

 

$

12,264

 

 
v3.20.2
EARNINGS PER SHARE (Tables)
 12 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Calculation of basic and diluted earnings per share

Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data):

 

 

 

Year Ended June 30,

 

 

 

2020

 

 

2019

 

 

2018

 

Net income

 

$

321,480

 

 

$

265,604

 

 

$

301,171

 

Weighted-average number of basic shares outstanding

   during the period

 

 

25,031

 

 

 

24,833

 

 

 

24,616

 

Dilutive effect of RSUs after application of treasury stock method

 

 

454

 

 

 

562

 

 

 

639

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,485

 

 

 

25,395

 

 

 

25,255

 

Basic earnings per share

 

$

12.84

 

 

$

10.70

 

 

$

12.23

 

Diluted earnings per share

 

$

12.61

 

 

$

10.46

 

 

$

11.93

 

 
v3.20.2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Jun. 30, 2020
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Condensed Financial Operating Results Quarterly condensed financial operating results of the Company for the years ended June 30, 2020 and 2019, are presented below (in thousands except per share data).

 

 

 

Year Ended June 30, 2020

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,363,392

 

 

$

1,395,469

 

 

$

1,465,600

 

 

$

1,495,581

 

Income from operations

 

$

100,157

 

 

$

110,187

 

 

$

113,676

 

 

$

133,676

 

Net income

 

$

67,977

 

 

$

79,195

 

 

$

80,577

 

 

$

93,731

 

Basic earnings per share

 

$

2.73

 

 

$

3.16

 

 

$

3.21

 

 

$

3.74

 

Diluted earnings per share

 

$

2.66

 

 

$

3.11

 

 

$

3.16

 

 

$

3.68

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,894

 

 

 

25,065

 

 

 

25,078

 

 

 

25,089

 

Diluted

 

 

25,532

 

 

 

25,435

 

 

 

25,478

 

 

 

25,496

 

 

 

 

Year Ended June 30, 2019

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,165,864

 

 

$

1,181,641

 

 

$

1,264,958

 

 

$

1,373,878

 

Income from operations

 

$

99,600

 

 

$

102,263

 

 

$

94,908

 

 

$

81,096

 

Net income

 

$

78,833

 

 

$

68,596

 

 

$

68,145

 

 

$

50,030

 

Basic earnings per share

 

$

3.19

 

 

$

2.76

 

 

$

2.74

 

 

$

2.01

 

Diluted earnings per share

 

$

3.10

 

 

$

2.71

 

 

$

2.69

 

 

$

1.96

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,737

 

 

 

24,856

 

 

 

24,866

 

 

 

24,875

 

Diluted

 

 

25,424

 

 

 

25,338

 

 

 

25,348

 

 

 

25,472

 

 
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Summary Of Significant Accounting Policies [Line Items]      
Amount of tax expense (benefit) for changes in the fair value of interest rate swap agreements $ 8.7 $ 6.4 $ (4.2)
Accumulated other comprehensive loss related to foreign currency translation adjustments (38.6) (33.6)  
Accumulated other comprehensive loss related to fair value of interest rate swaps (33.2) (9.0)  
Accumulated other comprehensive loss related to unrecognized post-retirement medical plan costs $ (0.5) $ (0.6)  
Equipment and furniture      
Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life from three to eight years    
Leasehold improvements      
Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life over the remaining lease term or the useful life of the improvements, whichever is shorter    
v3.20.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Detail Textual) - USD ($)
$ in Thousands
Jun. 30, 2020
Jul. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]    
Right of use assets $ 330,767 $ 354,317
Current lease liabilities 67,549  
Non-current lease liabilities $ 309,680 331,761
ASU 2016-02    
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]    
Right of use assets   354,317
Current lease liabilities   67,000
Non-current lease liabilities   $ 331,761
v3.20.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS - Impact of Adoption of ASC 842 (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jul. 01, 2019
Jun. 30, 2019
ASSETS      
Prepaid expenses and other current assets $ 137,423 $ 86,453 $ 89,652
Operating lease right-of-use assets 330,767 354,317  
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Other accrued expenses and current liabilities 293,518 294,645 235,611
Operating lease liabilities, noncurrent 309,680 331,761  
Other long-term liabilities $ 128,704 68,255 $ 107,932
ASU 2016-02      
ASSETS      
Prepaid expenses and other current assets   (3,199)  
Operating lease right-of-use assets   354,317  
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Other accrued expenses and current liabilities   59,034  
Operating lease liabilities, noncurrent   331,761  
Other long-term liabilities   $ (39,677)  
v3.20.2
ACQUISITIONS (Detail Textual)
$ in Thousands
 3 Months Ended
Jun. 29, 2020
USD ($)
Dec. 31, 2019
USD ($)
Acquisition
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Business Acquisition [Line Items]          
Goodwill     $ 3,407,110 $ 3,336,079 $ 2,620,835
Other Acquisitions          
Business Acquisition [Line Items]          
Number of strategic acquisitions | Acquisition   3      
Purchase consideration   $ 109,400      
Goodwill   70,300      
Identifiable intangible assets   $ 29,500      
AVT          
Business Acquisition [Line Items]          
Purchase consideration $ 350,000        
Agreement execution date Jun. 29, 2020        
Acquisition date Aug. 11, 2020        
v3.20.2
ACQUISITIONS (Detail Textual 1) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 29, 2019
Aug. 15, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]          
Goodwill     $ 3,407,110 $ 3,336,079 $ 2,620,835
Customer contracts and related customer relationships          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets     17 years    
Technology          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets     10 years 4 months 24 days    
SE&A BU          
Business Acquisition [Line Items]          
Acquisition date   Aug. 15, 2018      
Purchase consideration   $ 96,100      
Goodwill   46,400      
Amount of tax deductible goodwill and intangibles   55,300      
Identifiable intangible assets   $ 8,900      
Mastodon          
Business Acquisition [Line Items]          
Acquisition date Jan. 29, 2019        
Purchase consideration $ 225,000        
Goodwill 139,200        
Amount of tax deductible goodwill and intangibles 223,100        
Identifiable intangible assets 83,900        
Cash consideration 220,000        
Deferred consideration 5,000        
Mastodon | Customer contracts and related customer relationships          
Business Acquisition [Line Items]          
Identifiable intangible assets $ 19,800        
Amortization period of acquired intangible assets 20 years        
Mastodon | Technology          
Business Acquisition [Line Items]          
Identifiable intangible assets $ 64,100        
Mastodon | Technology | Minimum          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets 5 years        
Mastodon | Technology | Maximum          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets 9 years        
v3.20.2
ACQUISITIONS (Detail Textual 2) - USD ($)
$ in Thousands
 3 Months Ended 4 Months Ended 12 Months Ended
Mar. 01, 2019
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]                          
Goodwill   $ 3,407,110       $ 3,336,079       $ 3,336,079 $ 3,407,110 $ 3,336,079 $ 2,620,835
Revenue   1,495,581 $ 1,465,600 $ 1,395,469 $ 1,363,392 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864   5,720,042 4,986,341 4,467,860
Net income   $ 93,731 $ 80,577 $ 79,195 $ 67,977 $ 50,030 $ 68,145 $ 68,596 $ 78,833   321,480 265,604 301,171
Amortization expense                     $ 59,300 45,800 $ 38,200
Customer contracts and related customer relationships                          
Business Acquisition [Line Items]                          
Amortization period of acquired intangible assets                     17 years    
Technology                          
Business Acquisition [Line Items]                          
Amortization period of acquired intangible assets                     10 years 4 months 24 days    
LGS                          
Business Acquisition [Line Items]                          
Purchase consideration $ 758,200                        
Goodwill 530,826                        
Identifiable intangible assets 147,650                        
Amount of tax deductible goodwill and intangibles 599,900                        
Revenue                   132,300      
Net income                   1,300      
Amortization expense                   5,200      
Integration and restructuring costs                   $ 2,600      
Acquisition-related expenses                       $ 11,400  
LGS | Customer contracts and related customer relationships                          
Business Acquisition [Line Items]                          
Identifiable intangible assets $ 86,900                        
Amortization period of acquired intangible assets 20 years                        
LGS | Technology                          
Business Acquisition [Line Items]                          
Identifiable intangible assets $ 60,800                        
LGS | Technology | Minimum                          
Business Acquisition [Line Items]                          
Amortization period of acquired intangible assets 5 years                        
LGS | Technology | Maximum                          
Business Acquisition [Line Items]                          
Amortization period of acquired intangible assets 15 years                        
v3.20.2
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Mar. 01, 2019
Jun. 30, 2018
Business Acquisition [Line Items]        
Goodwill $ 3,407,110 $ 3,336,079   $ 2,620,835
LGS        
Business Acquisition [Line Items]        
Accounts receivable     $ 85,066  
Prepaid expenses and other current assets     19,922  
Property and equipment     23,275  
Identifiable intangible assets     147,650  
Goodwill     530,826  
Other long-term assets     127  
Accounts payable     (10,309)  
Accrued compensation and benefits     (22,347)  
Other accrued expenses and current liabilities     (9,876)  
Deferred income taxes, noncurrent     60  
Other long-term liabilities     (6,243)  
Total estimated consideration     $ 758,151  
v3.20.2
ACQUISITIONS - Unaudited Pro Forma Financial Information (Detail 1) - LGS - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]    
Revenue $ 5,271,872 $ 4,822,318
Net income $ 275,630 $ 289,143
Basic EPS $ 11.10 $ 11.75
Diluted EPS $ 10.85 $ 11.45
v3.20.2
ACQUISITIONS (Detail Textual 3) - USD ($)
$ in Thousands
Jun. 01, 2019
May 31, 2018
Nov. 22, 2017
Nov. 01, 2017
Oct. 01, 2017
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]                
Goodwill           $ 3,407,110 $ 3,336,079 $ 2,620,835
International Acquisitions                
Business Acquisition [Line Items]                
Acquisition date Jun. 01, 2019     Nov. 01, 2017 Oct. 01, 2017      
Percentage of outstanding shares acquired 100.00%     100.00% 100.00%      
Purchase consideration $ 9,100     $ 7,500 $ 9,100      
Domestic Acquisitions                
Business Acquisition [Line Items]                
Acquisition date   May 31, 2018 Nov. 22, 2017          
Purchase consideration   $ 24,000 $ 53,000          
Percentage of membership interests acquired     100.00%          
Cash consideration     $ 40,100          
Deferred consideration     4,500          
Contingent consideration     8,700          
Consideration, net working capital adjustment     300          
Goodwill   8,400 26,700          
Identifiable intangible assets   $ 14,900 $ 24,900          
v3.20.2
ACCOUNTS RECEIVABLE (Detail Textual) - USD ($)
$ in Millions
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Accounts Receivable Net [Abstract]      
Allowance for doubtful accounts receivable $ 3.0 $ 4.2 $ 3.7
v3.20.2
ACCOUNTS RECEIVABLE - Schedule of Total Accounts Receivable (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Accounts Receivable Net [Abstract]    
Billed receivables $ 555,472 $ 638,135
Billable receivables 223,867 141,632
Unbilled receivables 61,888 90,073
Total accounts receivable, current 841,227 869,840
Unbilled receivables, long-term 9,629 7,381
Total accounts receivable $ 850,856 $ 877,221
v3.20.2
GOODWILL - Roll Forward of Goodwill (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Goodwill [Roll Forward]    
Balance $ 3,336,079 $ 2,620,835
Goodwill acquired [1] 75,149 719,203
Foreign currency translation (4,118) (3,959)
Balance 3,407,110 3,336,079
Domestic    
Goodwill [Roll Forward]    
Balance 3,224,685 2,514,520
Goodwill acquired [1] 55,171 710,165
Balance 3,279,856 3,224,685
International    
Goodwill [Roll Forward]    
Balance 111,394 106,315
Goodwill acquired [1] 19,978 9,038
Foreign currency translation (4,118) (3,959)
Balance $ 127,254 $ 111,394
[1] Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.20.2
INTANGIBLE ASSETS - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
 [1]
Jun. 30, 2019
Finite Lived Intangible Assets [Line Items]    
Intangible assets $ 700,495 $ 688,311
Less accumulated amortization (293,610) (252,196)
Total intangible assets, net 406,885 436,115
Customer contracts and related customer relationships    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 570,562 549,552
Less accumulated amortization (271,708) (236,935)
Acquired technologies    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 129,925 137,959
Less accumulated amortization (21,900) (14,750)
Other    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 8 800
Less accumulated amortization $ (2) $ (511)
[1] During FY2020, the Company removed $17.6 million in fully amortized intangible assets.
v3.20.2
INTANGIBLE ASSETS - Summary of Intangible Assets (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Jun. 30, 2020
USD ($)
Finite Lived Intangible Assets Net [Abstract]  
Removal of fully amortized intangible assets $ 17.6
v3.20.2
INTANGIBLE ASSETS (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Finite Lived Intangible Assets [Line Items]      
Amortization expense $ 59.3 $ 45.8 $ 38.2
Minimum      
Finite Lived Intangible Assets [Line Items]      
Intangible asset amortization period 1 year    
Maximum      
Finite Lived Intangible Assets [Line Items]      
Intangible asset amortization period 20 years    
Customer contracts and related customer relationships      
Finite Lived Intangible Assets [Line Items]      
Weighted-average amortization period 17 years    
Weighted-average remaining amortization period 13 years 7 months 6 days    
Acquired technologies      
Finite Lived Intangible Assets [Line Items]      
Weighted-average amortization period 10 years 4 months 24 days    
Weighted-average remaining amortization period 9 years    
v3.20.2
INTANGIBLE ASSETS - Expected Amortization Expense (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Finite Lived Intangible Assets Net [Abstract]    
Year ending June 30, 2021 $ 58,273  
Year ending June 30, 2022 55,174  
Year ending June 30, 2023 50,071  
Year ending June 30, 2024 43,289  
Year ending June 30, 2025 37,046  
Thereafter 163,032  
Total intangible assets, net $ 406,885 [1] $ 436,115
[1] During FY2020, the Company removed $17.6 million in fully amortized intangible assets.
v3.20.2
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Property Plant And Equipment [Abstract]    
Equipment and furniture $ 214,107 $ 193,940
Leasehold improvements 160,723 149,935
Property and equipment, at cost 374,830 343,875
Less accumulated depreciation and amortization (204,309) (194,199)
Total property and equipment, net $ 170,521 $ 149,676
v3.20.2
PROPERTY AND EQUIPMENT (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Property Plant And Equipment [Abstract]      
Depreciation expense $ 49.4 $ 36.4 $ 30.7
v3.20.2
ACCRUED COMPENSATION AND BENEFITS - Schedule of Accrued Compensation and Benefits (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Employee Related Liabilities Current [Abstract]    
Accrued salaries and withholdings $ 178,293 $ 164,631
Accrued leave 123,972 97,832
Accrued fringe benefits 36,495 27,811
Total accrued compensation and benefits $ 338,760 $ 290,274
v3.20.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES - Schedule of Other Accrued Expenses and Current Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jul. 01, 2019
Jun. 30, 2019
Other Accrued Expenses And Current Liabilities [Abstract]      
Vendor obligations $ 82,104   $ 90,238
Deferred revenue (Note 12) 57,082   55,667
MARPA payable (Note 14) 57,020   54,567
Operating lease liabilities, current 67,549    
Other 29,763   35,139
Total other accrued expenses and current liabilities $ 293,518 $ 294,645 $ 235,611
v3.20.2
REVENUE RECOGNITION - Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Disaggregation Of Revenue [Line Items]                      
Revenue $ 1,495,581 $ 1,465,600 $ 1,395,469 $ 1,363,392 $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 5,720,042 $ 4,986,341 $ 4,467,860
Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 5,221,300 4,586,330  
Subcontractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 498,742 400,011  
Department of Defense                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,999,261 3,489,854  
Federal civilian agencies                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,467,801 1,263,681  
Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 252,980 232,806  
Cost-plus-fee                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,274,707 2,764,291  
Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,629,475 1,465,559  
Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 815,860 756,491  
Domestic                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 5,556,672 4,829,450 4,304,602
Domestic | Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 5,057,930 4,429,439  
Domestic | Subcontractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 498,742 400,011  
Domestic | Department of Defense                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,999,261 3,489,854  
Domestic | Federal civilian agencies                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,467,801 1,263,681  
Domestic | Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 89,610 75,915  
Domestic | Cost-plus-fee                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,274,707 2,764,291  
Domestic | Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,524,381 1,365,052  
Domestic | Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 757,584 700,107  
International                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 163,370 156,891 $ 163,258
International | Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 163,370 156,891  
International | Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 163,370 156,891  
International | Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 105,094 100,507  
International | Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 $ 58,276 $ 56,384  
v3.20.2
REVENUE RECOGNITION (Detail Textual) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Change In Accounting Estimate [Line Items]                      
Income before income taxes                 $ 401,637 $ 327,909 $ 298,664
Diluted earnings per share $ 3.68 $ 3.16 $ 3.11 $ 2.66 $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 12.61 $ 10.46 $ 11.93
EAC Adjustments                      
Change In Accounting Estimate [Line Items]                      
Income before income taxes                 $ 33,000 $ 19,700  
Diluted earnings per share                 $ 0.95 $ 0.57  
Revenue from previously satisfied performance obligations                 $ 10,500    
v3.20.2
REVENUE - Remaining Performance Obligations (Detail)
$ in Billions
Jun. 30, 2020
USD ($)
Revenue From Contract With Customer [Abstract]  
Remaining performance obligations $ 6.4
v3.20.2
REVENUE - Remaining Performance Obligations (Detail 1)
Jun. 30, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 80.00%
Remaining performance obligations, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 20.00%
Remaining performance obligations, expected timing of satisfaction
v3.20.2
CONTRACT BALANCES - Contract Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Contract assets – current:    
Unbilled receivables $ 61,888 $ 90,073
Costs to obtain – short-term 3,492 2,685
Contract assets – noncurrent:    
Unbilled receivables 9,629 7,381
Costs to obtain – long-term 7,708 5,353
Contract liabilities – current:    
Deferred revenue and other contract liabilities – short-term (57,082) (55,667)
Contract liabilities – noncurrent:    
Deferred revenue and other contract liabilities – long-term (6,507) (7,445)
Net contract assets (liabilities) $ 19,128 $ 42,380
v3.20.2
CONTRACT BALANCES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]    
Liability, revenue recognized $ 48.7 $ 35.5
v3.20.2
INVENTORIES - COMPONENTS OF INVENTORIES (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Inventory Disclosure [Abstract]    
Materials, purchased parts and supplies $ 36,692 $ 37,368
Work in process 10,867 6,021
Finished goods 17,608 3,834
Total $ 65,167 $ 47,223
v3.20.2
SALES OF RECEIVABLES (Detail Textual)
$ in Millions
Dec. 27, 2019
USD ($)
MARPA  
MARPA maturity date Dec. 24, 2020
MARPA maximum commitment $ 200.0
v3.20.2
SALES OF RECEIVABLES - Summary of MARPA Activity (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Transfers And Servicing Of Financial Assets [Abstract]    
Outstanding balance sold to Purchaser $ 200,000 $ 192,527
Sales of receivables 2,393,684 1,126,395
Cash collections (2,386,211) (933,868)
Cash collected, not remitted to Purchaser (57,020) (54,567)
Remaining sold receivables $ 142,980 $ 137,960
v3.20.2
SALES OF RECEIVABLES - Summary of MARPA Activity (Parentheticals) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Transfers And Servicing Of Financial Assets [Abstract]    
Cash provided (used) by MARPA $ 7.5 $ 192.5
v3.20.2
LONG-TERM DEBT - Schedule of Long-term Debt (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 1,413,555 $ 1,676,475
Less unamortized discounts and debt issuance costs (9,116) (11,462)
Total long-term debt 1,404,439 1,665,013
Less current portion (46,920) (46,920)
Long-term debt, net of current portion 1,357,519 1,618,093
Bank credit facility - term loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt 844,555 891,475
Bank credit facility - revolver loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 569,000 $ 785,000
v3.20.2
LONG-TERM DEBT (Detail Textual) - USD ($)
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Debt Instrument [Line Items]    
Outstanding amount under Credit Facility $ 1,413,555,000 $ 1,676,475,000
Interest Rate Swap | Cash Flow Hedging    
Debt Instrument [Line Items]    
Aggregate notional amount 800,000,000.0  
Bank Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 2,438,400,000  
Credit facility borrowing capacity, description At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $500.0 million or an amount subject to 3.50 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals.  
Credit Facility optional increases to borrowing capacity $ 500,000,000.0  
Ratio that restricts optional increases to borrowing capacity 350.00%  
Outstanding borrowings interest rate 2.58%  
Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 1,500,000,000.0  
Outstanding amount under Credit Facility 569,000,000 785,000,000
Term loans    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 938,400,000  
Outstanding amount under Credit Facility $ 844,555,000 $ 891,475,000
Term loan period 5 years  
Loan maturity date Jun. 30, 2024  
Term loan frequency of payment quarterly  
Term loan principal payment $ 11,700,000  
Same-Day Swing Line Loan Revolving Credit Sub-Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 100,000,000.0  
Outstanding amount under Credit Facility 0  
Stand-By Letters Of Credit Revolving Credit Sub-Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 25,000,000.0  
v3.20.2
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Detail ) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Long Term Debt [Abstract]    
2021 $ 46,920  
2022 46,920  
2023 46,920  
2024 1,272,795  
Principal amount of long-term debt 1,413,555 $ 1,676,475
Less unamortized discounts and debt issuance costs (9,116) (11,462)
Total long-term debt $ 1,404,439 $ 1,665,013
v3.20.2
LONG-TERM DEBT - Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Long Term Debt [Abstract]      
Gain (loss) recognized in other comprehensive income $ (26,915) $ (14,011) $ 6,344
Amounts reclassified to earnings from accumulated other comprehensive loss 2,635 (3,903) 1,129
Net current period other comprehensive income (loss) $ (24,280) $ (17,914) $ 7,473
v3.20.2
LEASES - Summary of Lease Balances (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jul. 01, 2019
Leases [Abstract]    
Operating lease right-of-use assets $ 330,767 $ 354,317
Operating lease liabilities, current $ 67,549  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:OtherCurrentLiabilitiesMember  
Operating lease liabilities, noncurrent $ 309,680 $ 331,761
Operating lease liabilities $ 377,229  
v3.20.2
LEASES - Summary of Lease Costs (Detail)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
USD ($)
Leases [Abstract]  
Operating lease cost $ 86,039
Short-term and variable lease cost 14,777
Sublease income (1,201)
Total lease cost $ 99,615
v3.20.2
LEASES - Schedule of Future Minimum Operating Lease Payments (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2021 $ 78,302  
2022 68,239  
2023 62,529  
2024 55,302  
2025 47,430  
Thereafter 106,067  
Total undiscounted lease payments 417,869  
Less: imputed interest (40,640)  
Total discounted lease liabilities $ 377,229  
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]    
2020   $ 81,027
2021   72,331
2022   63,655
2023   54,056
2024   43,691
Thereafter   132,792
Total minimum lease payments   $ 447,552
v3.20.2
LEASES (Detail Textual) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 31, 2021
Jun. 30, 2020
Lessee Lease Description [Line Items]    
Operating lease, weighted average remaining lease term   6 years 3 months 7 days
Operating lease, weighted average discount rate   3.14%
Cash paid for operating leases   $ 87,100
Operating lease liabilities arising from obtaining new ROU assets   50,500
Annual estimated lease cost   $ 86,039
Forecast [Member]    
Lessee Lease Description [Line Items]    
Annual estimated lease cost $ 6,000  
Term of contract 12 years  
v3.20.2
OTHER LONG-TERM LIABILITIES - Schedule of Other Long-Term Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jul. 01, 2019
Jun. 30, 2019
Other Liabilities Noncurrent [Abstract]      
Deferred rent, net of current portion     $ 41,427
Interest rate swap agreements $ 43,168   12,264
Deferred and contingent acquisition consideration 740   6,510
Deferred revenue 6,507   7,445
Deferred payroll taxes 40,594    
Accrued post-retirement obligations 6,715   5,982
Long-term incentive compensation     13,085
Reserve for unrecognized tax benefits 8,869   1,544
Transition tax 5,071   4,472
Other 17,040   15,203
Total other long-term liabilities $ 128,704 $ 68,255 $ 107,932
v3.20.2
OTHER LONG-TERM LIABILITIES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Other Liabilities Noncurrent [Abstract]    
Net periodic post-retirement benefit cost $ 1.2 $ 0.4
v3.20.2
BUSINESS SEGMENTS (Detail Textual) - Segment
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Segments      
Number of reportable segments 2    
U.S. Government | Sales      
Business Segments      
Percentage of revenue 95.60% 95.30% 94.80%
v3.20.2
BUSINESS SEGMENTS - Summarized Financial Information of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]                        
Revenue from external customers $ 1,495,581 $ 1,465,600 $ 1,395,469 $ 1,363,392 $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 5,720,042 $ 4,986,341 $ 4,467,860  
Net income 93,731 $ 80,577 $ 79,195 $ 67,977 50,030 $ 68,145 $ 68,596 $ 78,833 321,480 265,604 301,171  
Net assets 2,661,310       2,371,466       2,661,310 2,371,466 2,106,887 $ 1,793,721
Goodwill 3,407,110       3,336,079       3,407,110 3,336,079 2,620,835  
Total long-term assets 4,456,586       4,055,323       4,456,586 4,055,323 3,103,015  
Total assets 5,542,472       5,086,843       5,542,472 5,086,843 4,034,206  
Capital expenditures                 72,303 47,902 41,594  
Depreciation and amortization                 110,688 85,877 72,196  
Domestic Operations                        
Segment Reporting Information [Line Items]                        
Revenue from external customers                 5,556,672 4,829,450 4,304,602  
Net income                 302,822 249,793 286,024  
Net assets 2,482,283       2,206,109       2,482,283 2,206,109 1,948,768  
Goodwill 3,279,856       3,224,685       3,279,856 3,224,685 2,514,520  
Total long-term assets 4,297,885       3,927,783       4,297,885 3,927,783 2,975,620  
Total assets 5,293,588       4,876,399       5,293,588 4,876,399 3,829,417  
Capital expenditures                 70,499 46,406 40,639  
Depreciation and amortization                 105,874 81,205 67,891  
International Operations                        
Segment Reporting Information [Line Items]                        
Revenue from external customers                 163,370 156,891 163,258  
Net income                 18,658 15,811 15,147  
Net assets 179,027       165,357       179,027 165,357 158,119  
Goodwill 127,254       111,394       127,254 111,394 106,315  
Total long-term assets 158,701       127,540       158,701 127,540 127,395  
Total assets $ 248,884       $ 210,444       248,884 210,444 204,789  
Capital expenditures                 1,804 1,496 955  
Depreciation and amortization                 $ 4,814 $ 4,672 $ 4,305  
v3.20.2
INCOME TAXES (Detail Textual) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
Statutory U.S. Income Tax Rate 21.00% 21.00% 28.06% 35.00%
Effective tax rate, percentage 20.00% 19.00% (0.80%)  
Undistributed earnings $ 1,400      
Liability for unrecognized tax benefits $ 8,826 $ 1,530 $ 4,122 $ 1,639
v3.20.2
INCOME TAXES - Schedule of Income Loss Before Income Tax Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]      
Domestic $ 379,414 $ 308,922 $ 279,360
Foreign 22,223 18,987 19,304
Income before income taxes $ 401,637 $ 327,909 $ 298,664
v3.20.2
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Detail 1) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Current:      
Federal $ 42,268 $ 41,675 $ 56,467
State and local 14,744 17,606 13,006
Foreign 5,271 4,033 5,344
Total current 62,283 63,314 74,817
Deferred:      
Federal 12,940 (27) (80,395)
State and local 5,465 (877) 3,481
Foreign (531) (105) (410)
Total deferred 17,874 (1,009) (77,324)
Total income tax expense (benefit) $ 80,157 $ 62,305 $ (2,507)
v3.20.2
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Detail 2) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]      
Expected tax expense computed at federal statutory rate [1] $ 84,344 $ 68,861 $ 83,805
State and local taxes, net of federal benefit 15,965 13,216 11,860
Nonincludible and nondeductible items, net 3,133 1,971 1,832
Remeasurement of deferred taxes and transition tax   (2,182) (86,593)
Effect of foreign tax rates (377) (380) (1,261)
R&D tax credit, net (10,700) (6,755) (3,630)
Other tax credits (1,183) (2,138) (2,102)
Stock-based compensation (10,900) (7,493) (5,388)
Other (125) (2,795) (1,030)
Total income tax expense (benefit) $ 80,157 $ 62,305 $ (2,507)
[1] The U.S. federal statutory income tax rate for FY2020 and FY2019 is 21.0 percent.  The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA. 
v3.20.2
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Detail 2)
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
U.S. federal statutory income tax rate 21.00% 21.00% 28.06% 35.00%
v3.20.2
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Detail 3) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Deferred tax assets:    
Deferred compensation and post-retirement obligations $ 33,094 $ 29,206
Reserves and accruals 41,137 30,205
Stock-based compensation 9,860 9,881
Lease liability 99,539  
Interest rate swaps 11,349 2,688
Other asset 6,786 9,392
Total deferred tax assets 201,765 81,372
Deferred tax liabilities:    
Goodwill and other intangible assets (273,088) (257,762)
Unbilled revenue (17,429) (17,640)
Prepaid expenses (6,444) (2,974)
Right of use assets (85,275)  
Property and equipment (32,625) (8,335)
Total deferred tax liabilities (414,861) (286,711)
Net deferred tax liability $ (213,096) $ (205,339)
v3.20.2
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Detail 4) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning of year $ 1,530 $ 4,122 $ 1,639
Additions based on current year tax positions 2,293 676 2,483
Lapse of statute of limitations   (164)  
Additions based on prior year tax positions 5,003    
Reductions based on prior tax year positions   (3,104)  
End of year $ 8,826 $ 1,530 $ 4,122
v3.20.2
RETIREMENT SAVINGS PLANS (Detail Textual) - USD ($)
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Supplemental Savings Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employee contribution, maximum percentage of compensation 50.00%    
Contribution expense $ 1,900,000 $ 1,600,000 $ 1,200,000
Employee contribution maximum, percentage of bonuses 100.00%    
Employer contribution percentage 5.00%    
Employer contribution vesting period 5 years    
Annual IRC compensation limit $ 285,000    
Supplemental savings plan obligation 110,700,000    
Supplemental savings plan obligation, current portion 7,700,000    
Change in supplemental savings plan obligation 11,800,000    
Supplemental Savings Plan investment gains 4,900,000    
Supplemental Savings Plan participant compensation deferral 14,100,000    
Company contributions 1,500,000    
Distributions paid to participants 8,700,000    
Supplemental Savings Plan COLI gains 4,700,000 4,600,000  
COLI portion of supplemental savings plan assets $ 96,400,000 92,700,000  
401 (k) Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employee contribution, maximum percentage of compensation 75.00%    
Employer matching contribution, percent of match 8.00%    
Employer matching contribution, percent of employee salary deferral 50.00%    
Contribution expense $ 46,900,000 35,000,000.0 27,100,000
Employer contribution vesting period 3 years    
401(k) profit-sharing plans (PSP)      
Defined Contribution Plan Disclosure [Line Items]      
Discretionary contribution expense $ 41,800,000 $ 32,000,000.0 $ 26,300,000
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Components of Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Stock-based compensation included in indirect costs and selling expense:      
Restricted stock and RSU expense $ 29,302 $ 25,272 $ 23,628
Income tax benefit recognized for stock-based compensation $ 5,849 $ 4,865 $ 7,769
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Excess tax benefits recognized $ 13.5 $ 9.2 $ 6.3
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period to establish average share price for performance measurement 90 days    
Average share price performance condition, percentage 100.00%    
Maximum earned award, percentage of target award 200.00%    
Percentage of earned award vesting after three years 50.00%    
Percentage of earned award vesting after four years 50.00%    
2006 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock incentive plan, expiration period 10 years    
2016 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 1,200,000    
Cumulative equity instruments awarded 864,430    
Cumulative equity instruments forfeited 187,711    
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Annual Performance-Based Awards Granted (Detail)
 12 Months Ended
Jun. 30, 2020
shares
FY2020 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 108,844
FY2019 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 129,108
Additional PRSUs earned pursuant to condition 5,874
FY2018 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 185,056
Additional PRSUs earned pursuant to condition 51,808
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual 1) - USD ($)
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Income tax benefit realized $ 5,849,000 $ 4,865,000 $ 7,769,000
ESPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 1,500,000    
Percentage of fair market value 95.00%    
Maximum number of shares that an eligible employee can purchase The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter.    
Cumulative shares purchased under ESPP Plan 1,217,404    
Cumulative weighted-average purchase price per share $ 61.49    
Shares purchased under ESPP Plan 33,894    
Weighted-average price per share $ 211.97    
MSPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 500,000    
Percentage of annual bonus in lieu of which RSU received 85.00% 85.00% 85.00%
MSPP Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of annual bonus in lieu of which RSU received 100.00%    
DSPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 75,000    
Percentage of annual bonus in lieu of which RSU received 100.00%    
Number of awards outstanding 0    
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period to establish average share price for performance measurement 90 days    
Share price $ 216.02    
Risk free rate of return 1.50%    
Expected volatility 24.54%    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of RSUs granted $ 252.25 $ 201.27 $ 146.27
Vesting period (in years) 3 years    
Total intrinsic value of RSUs that vested $ 79,600,000 $ 53,000,000.0 $ 55,200,000
Income tax benefit realized 15,900,000 $ 10,200,000 $ 13,300,000
Unrecognized compensation cost $ 40,700,000    
Weighted-average period to recognize unrecognized compensation cost (in years) 2 years 6 months    
SSARs and Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation cost $ 0    
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to Restricted Stock and RSUs (Detail) - Restricted Stock Units - $ / shares
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Number of Shares      
Unvested restricted stock and RSUs Outstanding June 30 628,806 663,987 834,607
Granted 271,542 274,261 276,871
Vested (348,897) (276,626) (394,293)
Forfeited (49,528) (32,816) (53,198)
Unvested restricted stock and RSUs Outstanding June 30 501,923 628,806 663,987
Weighted Average Grant Date Fair Value      
Beginning balance unvested, June 30 $ 134.10 $ 107.96 $ 71.20
Granted 252.25 201.27 146.27
Vested 77.33 61.85 66.29
Forfeited 181.89 123.55 95.03
Ending balance unvested, June 30 $ 173.18 $ 134.10 $ 107.96
v3.20.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to MSPP (Detail) - MSPP RSUs
 12 Months Ended
Jun. 30, 2020
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Unvested restricted stock and RSUs Outstanding June 30 2,921
Granted 1,805
Issued (2,473)
Forfeited (30)
Unvested restricted stock and RSUs Outstanding June 30 2,223
Weighted average grant date fair value as adjusted for the applicable discount | $ / shares $ 159.36
v3.20.2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 43,168 $ 12,264
Fair Value, Measurements, Recurring | Other accrued expenses and current liabilities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration   12,000
Fair Value, Measurements, Recurring | Other accrued expenses and current liabilities | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements   43
Fair Value, Measurements, Recurring | Other long-term assets | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements   2,081
Fair Value, Measurements, Recurring | Other long-term liabilities | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 43,168 $ 12,264
v3.20.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Fair Value Disclosures [Abstract]    
Change in fair value of contingent consideration $ 3.0 $ 1.0
v3.20.2
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]                      
Net income $ 93,731 $ 80,577 $ 79,195 $ 67,977 $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 321,480 $ 265,604 $ 301,171
Weighted-average number of basic shares outstanding during the period 25,089 25,078 25,065 24,894 24,875 24,866 24,856 24,737 25,031 24,833 24,616
Dilutive effect of RSUs after application of treasury stock method                 454 562 639
Weighted-average number of diluted shares outstanding during the period 25,496 25,478 25,435 25,532 25,472 25,348 25,338 25,424 25,485 25,395 25,255
Basic earnings per share $ 3.74 $ 3.21 $ 3.16 $ 2.73 $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 12.84 $ 10.70 $ 12.23
Diluted earnings per share $ 3.68 $ 3.16 $ 3.11 $ 2.66 $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 12.61 $ 10.46 $ 11.93
v3.20.2
QUARTERLY FINANCIAL DATA (UNAUDITED) - Schedule of Quarterly Condensed Financial Operating Results (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Quarterly Financial Data [Abstract]                      
Revenue $ 1,495,581 $ 1,465,600 $ 1,395,469 $ 1,363,392 $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 5,720,042 $ 4,986,341 $ 4,467,860
Income from operations 133,676 113,676 110,187 100,157 81,096 94,908 102,263 99,600 457,696 377,867 340,700
Net income $ 93,731 $ 80,577 $ 79,195 $ 67,977 $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 321,480 $ 265,604 $ 301,171
Basic earnings per share $ 3.74 $ 3.21 $ 3.16 $ 2.73 $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 12.84 $ 10.70 $ 12.23
Diluted earnings per share $ 3.68 $ 3.16 $ 3.11 $ 2.66 $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 12.61 $ 10.46 $ 11.93
Weighted-average basic shares outstanding 25,089 25,078 25,065 24,894 24,875 24,866 24,856 24,737 25,031 24,833 24,616
Weighted-average diluted shares outstanding 25,496 25,478 25,435 25,532 25,472 25,348 25,338 25,424 25,485 25,395 25,255