CACI INTERNATIONAL INC /DE/, 10-Q filed on 1/27/2022
Quarterly Report
v3.21.4
Document And Entity Information - shares
 6 Months Ended
Dec. 31, 2021
Jan. 12, 2022
Cover [Abstract]    
Entity Registrant Name CACI International Inc  
Entity Central Index Key 0000016058  
Current Fiscal Year End Date --06-30  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   23,405,590
Document Type 10-Q  
Document Period End Date Dec. 31, 2021  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock  
Trading Symbol CACI  
Security Exchange Name NYSE  
Entity File Number 001-31400  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 54-1345888  
Entity Address, Address Line One 12021 Sunset Hills Road  
Entity Address, City or Town Reston  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 20190  
City Area Code 703  
Local Phone Number 841-7800  
Document Quarterly Report true  
Document Transition Report false  
v3.21.4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]        
Revenues $ 1,485,778 $ 1,468,711 $ 2,976,676 $ 2,928,217
Costs of revenues:        
Direct costs 974,018 947,131 1,948,189 1,887,065
Indirect costs and selling expenses 354,977 347,807 712,083 702,811
Depreciation and amortization 32,676 32,234 65,268 62,378
Total costs of revenues 1,361,671 1,327,172 2,725,540 2,652,254
Income from operations 124,107 141,539 251,136 275,963
Interest expense and other, net 11,009 9,087 21,407 19,067
Income before income taxes 113,098 132,452 229,729 256,896
Income taxes 22,799 25,974 51,321 56,774
Net income $ 90,299 $ 106,478 $ 178,408 $ 200,122
Basic earnings per share $ 3.86 $ 4.22 $ 7.60 $ 7.95
Diluted earnings per share $ 3.83 $ 4.18 $ 7.52 $ 7.86
Weighted-average basic shares outstanding 23,399 25,225 23,480 25,162
Weighted-average diluted shares outstanding 23,598 25,451 23,722 25,469
v3.21.4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 90,299 $ 106,478 $ 178,408 $ 200,122
Other comprehensive income (loss):        
Foreign currency translation adjustment 575 13,713 (6,187) 21,506
Change in fair value of interest rate swap agreements, net of tax 5,424 2,644 7,638 4,896
Other comprehensive income, net of tax 5,999 16,357 1,451 26,402
Comprehensive income $ 96,298 $ 122,835 $ 179,859 $ 226,524
v3.21.4
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Current assets:    
Cash and cash equivalents $ 124,103 $ 88,031
Accounts receivable, net 854,415 879,851
Prepaid expenses and other current assets 356,543 363,294
Total current assets 1,335,061 1,331,176
Goodwill 4,064,968 3,632,578
Intangible assets, net 620,688 [1] 476,106
Property, plant and equipment, net 190,214 190,444
Operating lease right-of-use assets 352,242 356,887
Supplemental retirement savings plan assets 103,698 102,984
Accounts receivable, long-term 11,398 12,159
Other long-term assets 72,421 70,038
Total assets 6,750,690 6,172,372
Current liabilities:    
Current portion of long-term debt 30,625 46,920
Accounts payable 217,795 148,636
Accrued compensation and benefits 372,501 409,275
Other accrued expenses and current liabilities 316,098 279,970
Total current liabilities 937,019 884,801
Long-term debt, net of current portion 2,079,831 1,688,919
Supplemental retirement savings plan obligations, net of current portion 109,444 104,490
Deferred income taxes 339,360 327,230
Operating lease liabilities, noncurrent 355,323 363,302
Other long-term liabilities 84,003 138,352
Total liabilities 3,904,980 3,507,094
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; 42,810 shares issued and 23,406 outstanding at December 31, 2021 and 42,676 shares issued and 23,554 outstanding at June 30, 2021 4,281 4,268
Additional paid-in capital 555,968 484,260
Retained earnings 3,367,495 3,189,087
Accumulated other comprehensive loss (34,840) (36,291)
Treasury stock, at cost (19,404 and 19,122 shares, respectively) (1,047,329) (976,181)
Total CACI shareholders’ equity 2,845,575 2,665,143
Noncontrolling interest 135 135
Total shareholders’ equity 2,845,710 2,665,278
Total liabilities and shareholders’ equity $ 6,750,690 $ 6,172,372
[1]

During the six months ended December 31, 2021, the Company removed $38.5 million in fully amortized intangible assets.
v3.21.4
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares
Dec. 31, 2021
Jun. 30, 2021
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 42,810,000 42,676,000
Common stock, shares outstanding 23,406,000 23,554,000
Treasury stock, shares at cost 19,404,000 19,122,000
v3.21.4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 178,408 $ 200,122
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 65,268 62,378
Amortization of deferred financing costs 1,147 1,163
Loss on extinguishment of debt 891  
Non-cash lease expense 33,943 38,436
Stock-based compensation expense 14,698 15,041
Deferred income taxes (1,962) (6,311)
Changes in operating assets and liabilities, net of effect of business acquisitions:    
Accounts receivable, net 72,650 94,292
Prepaid expenses and other assets (24,701) (20,605)
Accounts payable and other accrued expenses 39,535 (30,087)
Accrued compensation and benefits (89,752) 39,461
Income taxes payable and receivable 46,402 11,107
Operating lease liabilities (34,169) (37,916)
Long-term liabilities 6,407 15,206
Net cash provided by operating activities 308,765 382,287
CASH FLOWS FROM INVESTING ACTIVITIES    
Capital expenditures (21,632) (31,873)
Acquisition of businesses, net of cash acquired (609,356) (355,127)
Other 923  
Net cash used in investing activities (630,065) (387,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from borrowings under bank credit facilities 1,735,095 1,174,000
Principal payments made under bank credit facilities (1,356,230) (1,161,460)
Payment of financing costs under bank credit facilities (6,286)  
Proceeds from employee stock purchase plans 5,221 4,664
Repurchases of common stock (4,995) (4,420)
Payment of taxes for equity transactions (13,956) (18,649)
Net cash provided by (used in) financing activities 358,849 (5,865)
Effect of exchange rate changes on cash and cash equivalents (1,477) 5,456
Net change in cash and cash equivalents 36,072 (5,122)
Cash and cash equivalents at beginning of period 88,031 107,236
Cash and cash equivalents at end of period 124,103 102,114
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for income taxes, net of refunds 4,509 50,903
Cash paid during the period for interest 19,042 17,210
Non-cash financing and investing activities:    
Landlord sponsored tenant incentives 1,178 13,853
Accrued capital expenditures $ 813 $ 1,047
v3.21.4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Total CACI Shareholders' Equity
Noncontrolling Interest
Beginning balance at Jun. 30, 2020 $ 2,661,310 $ 4,253 $ 573,744 $ 2,731,644 $ (72,285) $ (576,181) $ 2,661,175 $ 135
Beginning balance, shares at Jun. 30, 2020   42,525       17,432    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 200,122     200,122     200,122  
Stock-based compensation expense 15,041   15,041       15,041  
Tax withholdings on restricted share vestings (18,582) $ 13 (18,595)       (18,582)  
Tax withholdings on restricted share vestings (in shares)   138            
Other comprehensive (loss) income, net of tax 26,402       26,402   26,402  
Repurchases of common stock (4,420)   (33)     $ (4,387) (4,420)  
Repurchases of common stock (in shares)           (22)    
Treasury stock issued under stock purchase plans 4,406   19     $ 4,387 4,406  
Treasury stock issued under stock purchase plans (in shares)           (22)    
Ending balance at Dec. 31, 2020 2,884,279 $ 4,266 570,176 2,931,766 (45,883) $ (576,181) 2,884,144 135
Ending balance, shares at Dec. 31, 2020   42,663       17,432    
Beginning balance at Sep. 30, 2020 2,771,769 $ 4,254 580,513 2,825,288 (62,240) $ (576,181) 2,771,634 135
Beginning balance, shares at Sep. 30, 2020   42,537       17,432    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 106,478     106,478     106,478  
Stock-based compensation expense 7,194   7,194       7,194  
Tax withholdings on restricted share vestings (17,406) $ 12 (17,418)       (17,406)  
Tax withholdings on restricted share vestings (in shares)   126            
Other comprehensive (loss) income, net of tax 16,357       16,357   16,357  
Repurchases of common stock (2,346)   (113)     $ (2,233) (2,346)  
Repurchases of common stock (in shares)           (12)    
Treasury stock issued under stock purchase plans 2,233         $ 2,233 2,233  
Treasury stock issued under stock purchase plans (in shares)           (12)    
Ending balance at Dec. 31, 2020 2,884,279 $ 4,266 570,176 2,931,766 (45,883) $ (576,181) 2,884,144 135
Ending balance, shares at Dec. 31, 2020   42,663       17,432    
Beginning balance at Jun. 30, 2021 2,665,278 $ 4,268 484,260 3,189,087 (36,291) $ (976,181) 2,665,143 135
Beginning balance, shares at Jun. 30, 2021   42,676       19,122    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 178,408     178,408     178,408  
Stock-based compensation expense 14,698   14,698       14,698  
Tax withholdings on restricted share vestings (13,799) $ 13 (13,812)       (13,799)  
Tax withholdings on restricted share vestings (in shares)   134            
Other comprehensive (loss) income, net of tax 1,451       1,451   1,451  
Repurchases of common stock (4,995)   70,761     $ (75,756) (4,995)  
Repurchases of common stock (in shares)           (301)    
Treasury stock issued under stock purchase plans 4,669   61     $ 4,608 4,669  
Treasury stock issued under stock purchase plans (in shares)           (19)    
Ending balance at Dec. 31, 2021 2,845,710 $ 4,281 555,968 3,367,495 (34,840) $ (1,047,329) 2,845,575 135
Ending balance, shares at Dec. 31, 2021   42,810       19,404    
Beginning balance at Sep. 30, 2021 2,755,122 $ 4,271 561,688 3,277,196 (40,839) $ (1,047,329) 2,754,987 135
Beginning balance, shares at Sep. 30, 2021   42,710       19,404    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 90,299     90,299     90,299  
Stock-based compensation expense 8,029   8,029       8,029  
Tax withholdings on restricted share vestings (13,526) $ 10 (13,536)       (13,526)  
Tax withholdings on restricted share vestings (in shares)   100            
Other comprehensive (loss) income, net of tax 5,999       5,999   5,999  
Repurchases of common stock (2,523)   (213)     $ (2,310) (2,523)  
Repurchases of common stock (in shares)           (9)    
Treasury stock issued under stock purchase plans 2,310         $ 2,310 2,310  
Treasury stock issued under stock purchase plans (in shares)           (9)    
Ending balance at Dec. 31, 2021 $ 2,845,710 $ 4,281 $ 555,968 $ 3,367,495 $ (34,840) $ (1,047,329) $ 2,845,575 $ 135
Ending balance, shares at Dec. 31, 2021   42,810       19,404    
v3.21.4
Basis of Presentation
 6 Months Ended
Dec. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

Note 1.

Basis of Presentation

The accompanying unaudited consolidated financial statements of CACI International Inc and subsidiaries (CACI or 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, comprehensive income and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company.  Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated in consolidation.

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 outstanding as of December 31, 2021 under its bank credit facility approximates its carrying value.  The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data of companies with a corporate rating similar to CACI’s that have recently priced credit facilities.  See Notes 10 and 15.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the periods presented.  It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest annual report to the SEC on Form 10-K for the year ended June 30, 2021.  The results of operations for the three and six months ended December 31, 2021 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year.
v3.21.4
Recent Accounting Pronouncements
 6 Months Ended
Dec. 31, 2021
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
Recent Accounting Pronouncements

Note 2.

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 year ended June 30, 2020, 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 relevant contract and hedge accounting relationship modifications are made during the course of the reference rate reform transition period.

In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in accordance with acquisition accounting. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company early adopted this standard in fiscal year 2022 and it did not have a material impact on our consolidated financial statements.
v3.21.4
Acquisitions
 6 Months Ended
Dec. 31, 2021
Business Combinations [Abstract]  
Acquisitions

Note 3.

Acquisitions

During the six months ended December 31, 2021 CACI completed four acquisitions that provide mission and enterprise technology to sensitive government customers. Their capabilities include open source intelligence solutions, specialized cyber, satellite communications, multi-domain photonics technologies for free-space optical (FSO) communications, and commercial solutions for classified (CSfC) security technologies. The aggregate purchase consideration was approximately $616.2 million. The Company preliminarily recognized fair values of the assets acquired and liabilities assumed and allocated $436.4 million to goodwill and $180.6 million to intangible assets.  The intangible assets consist of customer relationships of $98.4 million and technology of $82.2 million.  The fair value attributed to intangible assets is being amortized on an accelerated basis over a range of approximately 15 to 20 years for customer relationships and over a range of approximately 5 to 10 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 $485.0 million is deductible for income tax purposes.
v3.21.4
Intangible Assets
 6 Months Ended
Dec. 31, 2021
Finite Lived Intangible Assets Net [Abstract]  
Intangible Assets

Note 4.

Intangible Assets

Intangible assets, net including those allocated on a preliminary basis, consisted of the following (in thousands):

 

 

 

December 31,

 

 

June 30,

 

 

 

2021 (1)

 

 

2021

 

Intangible assets:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

660,842

 

 

$

601,516

 

Acquired technologies

 

 

280,420

 

 

 

198,273

 

Intangible assets

 

 

941,262

 

 

 

799,789

 

Less accumulated amortization:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(258,104

)

 

 

(276,498

)

Acquired technologies

 

 

(62,470

)

 

 

(47,185

)

Less accumulated amortization

 

 

(320,574

)

 

 

(323,683

)

Total intangible assets, net

 

$

620,688

 

 

$

476,106

 

 

 

(1)

During the six months ended December 31, 2021, the Company removed $38.5 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 all customer contracts and related customer relationships as of December 31, 2021 is 18.3 years, and the weighted-average remaining period of amortization is 15.3 years.  The weighted-average period of amortization for acquired technologies as of December 31, 2021 is 10.1 years, and the weighted-average remaining period of amortization is 8.7 years.

Amortization expense was $18.1 million and $35.6 million for the three and six months ended December 31, 2021, respectively, and $17.5 million and $33.6 million for the three and six months ended December 31, 2020, respectively. The estimated annual amortization expense as of December 31, 2021 was as follows (in thousands):

 

Fiscal year ending June 30,

 

Amount

 

2022 (remainder of year)

 

$

38,514

 

2023

 

 

75,525

 

2024

 

 

72,050

 

2025

 

 

67,882

 

2026

 

 

60,244

 

2027 and thereafter

 

 

306,473

 

 

 

$

620,688

 

 
v3.21.4
Goodwill
 6 Months Ended
Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

Note 5.

Goodwill

The changes in the carrying amount of goodwill for the six months ended December 31, 2021 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2021

 

$

3,491,747

 

 

$

140,831

 

 

$

3,632,578

 

Goodwill acquired (1)

 

 

436,439

 

 

 

—

 

 

 

436,439

 

Foreign currency translation

 

 

(613

)

 

 

(3,436

)

 

 

(4,049

)

Balance at December 31, 2021

 

$

3,927,573

 

 

$

137,395

 

 

$

4,064,968

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable.
v3.21.4
Revenues from Contracts with Customers
 6 Months Ended
Dec. 31, 2021
Revenue From Contract With Customer [Abstract]  
Revenues from Contracts with Customers

Note 6.

Revenues from Contracts with Customers

Disaggregation of Revenues

The Company disaggregates revenues by contract type, customer type, prime vs. subcontractor, and whether the solution provided is primarily expertise or technology.  These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.

Disaggregated revenues by contract type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

889,358

 

 

$

—

 

 

$

889,358

 

 

$

1,783,071

 

 

$

—

 

 

$

1,783,071

 

Fixed-price

 

 

400,011

 

 

 

33,279

 

 

 

433,290

 

 

 

774,485

 

 

 

66,510

 

 

 

840,995

 

Time-and-materials

 

 

148,881

 

 

 

14,249

 

 

 

163,130

 

 

 

324,416

 

 

 

28,194

 

 

 

352,610

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

843,584

 

 

$

—

 

 

$

843,584

 

 

$

1,667,193

 

 

$

—

 

 

$

1,667,193

 

Fixed-price

 

 

411,114

 

 

 

29,707

 

 

 

440,821

 

 

 

820,698

 

 

 

53,937

 

 

 

874,635

 

Time-and-materials

 

 

172,362

 

 

 

11,944

 

 

 

184,306

 

 

 

357,356

 

 

 

29,033

 

 

 

386,389

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Disaggregated revenues by customer type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,037,014

 

 

$

—

 

 

$

1,037,014

 

 

$

2,037,141

 

 

$

—

 

 

$

2,037,141

 

Federal Civilian agencies

 

 

371,897

 

 

 

—

 

 

 

371,897

 

 

 

785,561

 

 

 

—

 

 

 

785,561

 

Commercial and other

 

 

29,339

 

 

 

47,528

 

 

 

76,867

 

 

 

59,270

 

 

 

94,704

 

 

 

153,974

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,012,875

 

 

$

—

 

 

$

1,012,875

 

 

$

2,017,070

 

 

$

—

 

 

$

2,017,070

 

Federal Civilian agencies

 

 

390,034

 

 

 

—

 

 

 

390,034

 

 

 

780,213

 

 

 

—

 

 

 

780,213

 

Commercial and other

 

 

24,151

 

 

 

41,651

 

 

 

65,802

 

 

 

47,964

 

 

 

82,970

 

 

 

130,934

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

 

Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,292,529

 

 

$

43,317

 

 

$

1,335,846

 

 

$

2,591,182

 

 

$

86,223

 

 

$

2,677,405

 

Subcontractor

 

 

145,721

 

 

 

4,211

 

 

 

149,932

 

 

 

290,790

 

 

 

8,481

 

 

 

299,271

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,288,533

 

 

$

38,492

 

 

$

1,327,025

 

 

$

2,577,238

 

 

$

76,625

 

 

$

2,653,863

 

Subcontractor

 

 

138,527

 

 

 

3,159

 

 

 

141,686

 

 

 

268,009

 

 

 

6,345

 

 

 

274,354

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Disaggregated revenues by expertise or technology were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

668,209

 

 

$

18,100

 

 

$

686,309

 

 

$

1,351,833

 

 

$

37,522

 

 

$

1,389,355

 

Technology

 

 

770,041

 

 

 

29,428

 

 

 

799,469

 

 

 

1,530,139

 

 

 

57,182

 

 

 

1,587,321

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

715,812

 

 

$

16,464

 

 

$

732,276

 

 

$

1,439,009

 

 

$

33,950

 

 

$

1,472,959

 

Technology

 

 

711,248

 

 

 

25,187

 

 

 

736,435

 

 

 

1,406,238

 

 

 

49,020

 

 

 

1,455,258

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

 

Changes in Estimates

The Company recognizes revenues on many of its fixed price, award fee, and incentive fee arrangements 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 process requires the Company to use professional judgment when assessing risks, estimating contract revenues and costs, estimating variable consideration, and making assumptions for schedule and technical issues.  The Company periodically reassesses its assumptions and updates its estimates as needed.  When estimates of total costs to be incurred on a contract exceed total revenues, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.

Aggregate net changes in estimates for the three and six months ended December 31, 2021 reflected an increase to income before income taxes of $5.5 million ($0.17 per diluted share) and $8.2 million ($0.26 per diluted share), respectively, compared with $18.1 million ($0.53 per diluted share) and $25.9 million ($0.75 per diluted share), for the three and six months ended December 31, 2020, respectively.  The Company uses its statutory tax rate when calculating the impact to diluted earnings per share.

Revenues recognized from previously satisfied performance obligations were not material for the three and six months ended December 31, 2021 or the three and six months ended December 31, 2020.  The change in revenues generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customer’s final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied.  

Remaining Performance Obligations

Remaining performance obligations (RPO) represent the expected revenues to be recognized for the satisfaction of remaining performance obligations on existing contracts.  This 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 awarded.  The RPO balance generally increases with the execution of new contracts and converts into revenues as contractual performance obligations are satisfied. The Company continues to monitor this balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations.

As of December 31, 2021, the Company had $7.2 billion of RPO and expects to recognize approximately 85 percent over the next twelve months with the remainder to be recognized thereafter.
v3.21.4
Contract Balances
 6 Months Ended
Dec. 31, 2021
Revenue From Contract With Customer [Abstract]  
Contract Balances

Note 7.

Contract Balances

Contract balances consisted of the following (in thousands):

 

 

 

 

 

December 31,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2021

 

 

2021

 

Billed and billable receivables

 

Accounts receivable, net

 

$

757,999

 

 

$

763,921

 

Contract assets – current unbilled receivables

 

Accounts receivable, net

 

 

96,416

 

 

 

115,930

 

Contract assets – current costs to obtain

 

Prepaid expenses and other current assets

 

 

4,722

 

 

 

4,144

 

Contract assets – noncurrent unbilled receivables

 

Accounts receivable, long-term

 

 

11,398

 

 

 

12,159

 

Contract assets – noncurrent costs to obtain

 

Other long-term assets

 

 

11,357

 

 

 

9,584

 

Contract liabilities – current deferred

   revenue and other contract liabilities

 

Other accrued expenses and current liabilities

 

 

(102,253

)

 

 

(70,907

)

Contract liabilities – noncurrent deferred

   revenue and other contract liabilities

 

Other long-term liabilities

 

 

(7,200

)

 

 

(6,837

)

During the three and six months ended December 31, 2021, the Company recognized $13.6 million and $68.3 million of revenues, respectively, compared with $19.4 million and $52.9 million of revenues for the three and six months ended December 31, 2020, respectively, that was included in a previously recorded contract liability as of the beginning of the period.
v3.21.4
Inventories
 6 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Inventories

Note 8.

Inventories

Inventories consisted of the following (in thousands):

 

 

 

 

December 31,

 

 

June 30,

 

 

 

 

2021

 

 

2021

 

Materials, purchased parts and supplies

 

 

$

61,179

 

 

$

52,615

 

Work in process

 

 

 

16,145

 

 

 

11,353

 

Finished goods

 

 

 

19,115

 

 

 

15,728

 

Total

 

 

$

96,439

 

 

$

79,696

 

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.
v3.21.4
Sales of Receivables
 6 Months Ended
Dec. 31, 2021
Transfers And Servicing Of Financial Assets [Abstract]  
Sales of Receivables

Note 9.

Sales of Receivables

On December 23, 2021, the Company amended its Master Accounts Receivable Purchase Agreement (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 22, 2022.  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 December 31, 2021.  Proceeds from the sold receivables are reflected in operating cash flows on the statement of cash flows.

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the Six Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Beginning balance:

 

$

182,027

 

 

$

200,000

 

Sales of receivables

 

 

1,361,521

 

 

 

1,354,577

 

Cash collections

 

 

(1,356,070

)

 

 

(1,354,819

)

Outstanding balance sold to Purchaser: (1)

 

 

187,478

 

 

 

199,758

 

Cash collected, not remitted to Purchaser (2)

 

 

(49,166

)

 

 

(43,304

)

Remaining sold receivables

 

$

138,312

 

 

$

156,454

 

 

 

(1)

For the six months ended December 31, 2021 and 2020, the Company recorded a net cash inflow of $5.5 million and a net cash outflow of $0.2 million in its cash flows from operating activities, 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 December 31, 2021 and 2020.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.21.4
Long-term Debt
 6 Months Ended
Dec. 31, 2021
Long Term Debt [Abstract]  
Long-term Debt

Note 10.

Long-term Debt 

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

 

 

 

December 31,

 

 

June 30,

 

 

 

2021

 

 

2021

 

Bank credit facility – term loans

 

$

1,225,000

 

 

$

797,635

 

Bank credit facility – revolver loans

 

 

896,500

 

 

 

945,000

 

Principal amount of long-term debt

 

 

2,121,500

 

 

 

1,742,635

 

Less unamortized discounts and debt issuance costs

 

 

(11,044

)

 

 

(6,796

)

Total long-term debt

 

 

2,110,456

 

 

 

1,735,839

 

Less current portion

 

 

(30,625

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

2,079,831

 

 

$

1,688,919

 

Bank Credit Facility

On December 13, 2021, the Company amended its credit facility (the Credit Facility) primarily to extend the maturity date, increase borrowing capacity, and improve pricing. As amended, the Company’s $3,200.0 million Credit Facility consists of a $1,975.0 million revolving credit facility (the Revolving Facility) and a $1,225.0 million term loan (the Term Loan). The Revolving Facility has subfacilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit.

The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,975.0 million. As of December 31, 2021, the Company had $896.5 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 $7.7 million through December 31, 2023 and $15.3 million thereafter until the balance is due in full on December 13, 2026. As of December 31, 2021, the Company had $1,225.0 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 December 31, 2021, 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 1.92 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 December 31, 2021, 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 December 31, 2021 were as follows (in thousands):

 

Twelve months ending December 31,

 

 

 

 

2022

 

$

30,625

 

2023

 

 

30,625

 

2024

 

 

61,250

 

2025

 

 

61,250

 

2026

 

 

1,937,750

 

Principal amount of long-term debt

 

 

2,121,500

 

Less unamortized discounts and debt issuance costs

  

 

(11,044

)

Total long-term debt

 

$

2,110,456

 

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 $650.0 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 three and six months ended December 31, 2021 and 2020 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gain (loss) recognized in other comprehensive income

 

$

2,194

 

 

$

(908

)

 

$

1,186

 

 

$

(2,188

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

3,230

 

 

 

3,552

 

 

 

6,452

 

 

 

7,084

 

Net current period other comprehensive income

 

$

5,424

 

 

$

2,644

 

 

$

7,638

 

 

$

4,896

 

 
v3.21.4
Legal Proceedings and Other Commitments and Contingencies
 6 Months Ended
Dec. 31, 2021
Commitments And Contingencies Disclosure [Abstract]  
Legal Proceedings and Other Commitments and Contingencies

Note 11.

Legal Proceedings and Other Commitments and Contingencies

Legal Proceedings

The Company is involved in various claims, lawsuits, and administrative proceedings arising in the normal course of business, none of which, based on current information, are expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.

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 2019.  The Company is still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe its reserves for such are adequate. 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 and 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 may be identified, discussed and settled.
v3.21.4
Earnings Per Share
 6 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

Note 12.

Earnings Per Share

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income

 

$

90,299

 

 

$

106,478

 

 

$

178,408

 

 

$

200,122

 

Weighted-average number of basic shares outstanding

   during the period

 

 

23,399

 

 

 

25,225

 

 

 

23,480

 

 

 

25,162

 

Dilutive effect of RSUs after application of treasury

   stock method

 

 

199

 

 

 

226

 

 

 

242

 

 

 

307

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

23,598

 

 

 

25,451

 

 

 

23,722

 

 

 

25,469

 

Basic earnings per share

 

$

3.86

 

 

$

4.22

 

 

$

7.60

 

 

$

7.95

 

Diluted earnings per share

 

$

3.83

 

 

$

4.18

 

 

$

7.52

 

 

$

7.86

 

 
v3.21.4
Income Taxes
 6 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 13.

Income Taxes

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 fiscal years 2017 through 2021.  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 Company’s total liability for unrecognized tax benefits as of December 31, 2021 and June 30, 2021 was $34.3 million and $31.5 million, respectively. The $34.3 million unrecognized tax benefit at December 31, 2021, if recognized, would positively impact the Company’s effective tax rate.

The Company’s effective income tax rate was 20.2 percent and 22.3 percent for the three and six months ended December 31, 2021, respectively, and 19.6 percent and 22.1 percent for the three and six months ended December 31, 2020, respectively. Increases in the effective income tax rate were primarily due to decreases in excess tax benefits related to employee stock-based compensation.

On January 1, 2022, a provision of the Tax Cuts and Jobs Act of 2017 went into effect which eliminates the option to deduct domestic research and development costs in the year incurred and instead requires taxpayers to amortize such costs over five years.  The House Ways and Means Committee has proposed tax legislation to delay the effective date of this change to 2026, but it is uncertain whether the proposed delay will ultimately be enacted into law.  If no new legislation is passed, the provision would go into effect for the Company’s fiscal year 2023 and is expected to decrease cash flows from operations and increase net deferred tax assets by a similar amount.  The Company is currently evaluating the potential impact on cash flows from operations.
v3.21.4
Business Segment Information
 6 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segment Information

Note 14.

Business Segment Information

The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide Expertise and Technology primarily to U.S. federal government agencies. International operations provide Expertise and Technology primarily to international government and commercial customers.

The Company evaluates the performance of its operating segments based on net income. Summarized financial information for the Company’s reportable segments is as follows (in thousands): 
v3.21.4
Fair Value of Financial Instruments
 6 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 15.

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.  

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 following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and June 30, 2021, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

December 31,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2021

 

 

2021

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

17

 

 

$

1,028

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

15,486

 

 

$

24,838

 

Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss.
v3.21.4
Accelerated Share Repurchase
 6 Months Ended
Dec. 31, 2021
Disclosure Of Repurchase Agreements [Abstract]  
Accelerated Share Repurchase

Note 16.

Accelerated Share Repurchase

On March 12, 2021, the Company entered into an accelerated share repurchase agreement (ASR Agreement) with JPMorgan Chase Bank, National Association (JPMorgan).  Under the ASR Agreement, the Company paid $500.0 million to JPMorgan and received an initial delivery of 1.7 million shares of common stock which became treasury shares.  During the six months ended December 31, 2021, the ASR Agreement was completed and an additional 0.3 million shares of common stock were received which became treasury shares.  In total, 2.0 million shares were repurchased at an average price per share of $253.47.
v3.21.4
Subsequent Event
 6 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Event

Note 17.

Subsequent Event

In January 2022, the Company entered into two additional floating-to-fixed interest rate swap agreements including a 5 year $50.0 million swap effective July 1, 2022 and a 4 year $50.0 million swap effective January 1, 2023. The Company has designated these swaps as cash flow hedges.
v3.21.4
Intangible Assets (Tables)
 6 Months Ended
Dec. 31, 2021
Finite Lived Intangible Assets Net [Abstract]  
Schedule of Intangible Assets

Intangible assets, net including those allocated on a preliminary basis, consisted of the following (in thousands):

 

 

 

December 31,

 

 

June 30,

 

 

 

2021 (1)

 

 

2021

 

Intangible assets:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

660,842

 

 

$

601,516

 

Acquired technologies

 

 

280,420

 

 

 

198,273

 

Intangible assets

 

 

941,262

 

 

 

799,789

 

Less accumulated amortization:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(258,104

)

 

 

(276,498

)

Acquired technologies

 

 

(62,470

)

 

 

(47,185

)

Less accumulated amortization

 

 

(320,574

)

 

 

(323,683

)

Total intangible assets, net

 

$

620,688

 

 

$

476,106

 

 

 

(1)

During the six months ended December 31, 2021, the Company removed $38.5 million in fully amortized intangible assets.
Schedule of Estimated Annual Amortization Expense

Amortization expense was $18.1 million and $35.6 million for the three and six months ended December 31, 2021, respectively, and $17.5 million and $33.6 million for the three and six months ended December 31, 2020, respectively. The estimated annual amortization expense as of December 31, 2021 was as follows (in thousands):

 

Fiscal year ending June 30,

 

Amount

 

2022 (remainder of year)

 

$

38,514

 

2023

 

 

75,525

 

2024

 

 

72,050

 

2025

 

 

67,882

 

2026

 

 

60,244

 

2027 and thereafter

 

 

306,473

 

 

 

$

620,688

 

 
v3.21.4
Goodwill (Tables)
 6 Months Ended
Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Roll Forward of Goodwill

The changes in the carrying amount of goodwill for the six months ended December 31, 2021 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2021

 

$

3,491,747

 

 

$

140,831

 

 

$

3,632,578

 

Goodwill acquired (1)

 

 

436,439

 

 

 

—

 

 

 

436,439

 

Foreign currency translation

 

 

(613

)

 

 

(3,436

)

 

 

(4,049

)

Balance at December 31, 2021

 

$

3,927,573

 

 

$

137,395

 

 

$

4,064,968

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable.
v3.21.4
Revenues from Contracts with Customers (Tables)
 6 Months Ended
Dec. 31, 2021
Revenue From Contract With Customer [Abstract]  
Schedule of Disaggregated Revenues

Disaggregated revenues by contract type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

889,358

 

 

$

—

 

 

$

889,358

 

 

$

1,783,071

 

 

$

—

 

 

$

1,783,071

 

Fixed-price

 

 

400,011

 

 

 

33,279

 

 

 

433,290

 

 

 

774,485

 

 

 

66,510

 

 

 

840,995

 

Time-and-materials

 

 

148,881

 

 

 

14,249

 

 

 

163,130

 

 

 

324,416

 

 

 

28,194

 

 

 

352,610

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

843,584

 

 

$

—

 

 

$

843,584

 

 

$

1,667,193

 

 

$

—

 

 

$

1,667,193

 

Fixed-price

 

 

411,114

 

 

 

29,707

 

 

 

440,821

 

 

 

820,698

 

 

 

53,937

 

 

 

874,635

 

Time-and-materials

 

 

172,362

 

 

 

11,944

 

 

 

184,306

 

 

 

357,356

 

 

 

29,033

 

 

 

386,389

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Disaggregated revenues by customer type were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,037,014

 

 

$

—

 

 

$

1,037,014

 

 

$

2,037,141

 

 

$

—

 

 

$

2,037,141

 

Federal Civilian agencies

 

 

371,897

 

 

 

—

 

 

 

371,897

 

 

 

785,561

 

 

 

—

 

 

 

785,561

 

Commercial and other

 

 

29,339

 

 

 

47,528

 

 

 

76,867

 

 

 

59,270

 

 

 

94,704

 

 

 

153,974

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,012,875

 

 

$

—

 

 

$

1,012,875

 

 

$

2,017,070

 

 

$

—

 

 

$

2,017,070

 

Federal Civilian agencies

 

 

390,034

 

 

 

—

 

 

 

390,034

 

 

 

780,213

 

 

 

—

 

 

 

780,213

 

Commercial and other

 

 

24,151

 

 

 

41,651

 

 

 

65,802

 

 

 

47,964

 

 

 

82,970

 

 

 

130,934

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

 

Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,292,529

 

 

$

43,317

 

 

$

1,335,846

 

 

$

2,591,182

 

 

$

86,223

 

 

$

2,677,405

 

Subcontractor

 

 

145,721

 

 

 

4,211

 

 

 

149,932

 

 

 

290,790

 

 

 

8,481

 

 

 

299,271

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,288,533

 

 

$

38,492

 

 

$

1,327,025

 

 

$

2,577,238

 

 

$

76,625

 

 

$

2,653,863

 

Subcontractor

 

 

138,527

 

 

 

3,159

 

 

 

141,686

 

 

 

268,009

 

 

 

6,345

 

 

 

274,354

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Disaggregated revenues by expertise or technology were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

668,209

 

 

$

18,100

 

 

$

686,309

 

 

$

1,351,833

 

 

$

37,522

 

 

$

1,389,355

 

Technology

 

 

770,041

 

 

 

29,428

 

 

 

799,469

 

 

 

1,530,139

 

 

 

57,182

 

 

 

1,587,321

 

Total

 

$

1,438,250

 

 

$

47,528

 

 

$

1,485,778

 

 

$

2,881,972

 

 

$

94,704

 

 

$

2,976,676

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

715,812

 

 

$

16,464

 

 

$

732,276

 

 

$

1,439,009

 

 

$

33,950

 

 

$

1,472,959

 

Technology

 

 

711,248

 

 

 

25,187

 

 

 

736,435

 

 

 

1,406,238

 

 

 

49,020

 

 

 

1,455,258

 

Total

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

 
v3.21.4
Contract Balances (Tables)
 6 Months Ended
Dec. 31, 2021
Revenue From Contract With Customer [Abstract]  
Contract Assets and Liabilities

Contract balances consisted of the following (in thousands):

 

 

 

 

 

December 31,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2021

 

 

2021

 

Billed and billable receivables

 

Accounts receivable, net

 

$

757,999

 

 

$

763,921

 

Contract assets – current unbilled receivables

 

Accounts receivable, net

 

 

96,416

 

 

 

115,930

 

Contract assets – current costs to obtain

 

Prepaid expenses and other current assets

 

 

4,722

 

 

 

4,144

 

Contract assets – noncurrent unbilled receivables

 

Accounts receivable, long-term

 

 

11,398

 

 

 

12,159

 

Contract assets – noncurrent costs to obtain

 

Other long-term assets

 

 

11,357

 

 

 

9,584

 

Contract liabilities – current deferred

   revenue and other contract liabilities

 

Other accrued expenses and current liabilities

 

 

(102,253

)

 

 

(70,907

)

Contract liabilities – noncurrent deferred

   revenue and other contract liabilities

 

Other long-term liabilities

 

 

(7,200

)

 

 

(6,837

)
v3.21.4
Inventories (Tables)
 6 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Components of Inventories

Inventories consisted of the following (in thousands):

 

 

 

 

December 31,

 

 

June 30,

 

 

 

 

2021

 

 

2021

 

Materials, purchased parts and supplies

 

 

$

61,179

 

 

$

52,615

 

Work in process

 

 

 

16,145

 

 

 

11,353

 

Finished goods

 

 

 

19,115

 

 

 

15,728

 

Total

 

 

$

96,439

 

 

$

79,696

 
v3.21.4
Sales of Receivables (Tables)
 6 Months Ended
Dec. 31, 2021
Transfers And Servicing Of Financial Assets [Abstract]  
Summary of MARPA Activity

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the Six Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Beginning balance:

 

$

182,027

 

 

$

200,000

 

Sales of receivables

 

 

1,361,521

 

 

 

1,354,577

 

Cash collections

 

 

(1,356,070

)

 

 

(1,354,819

)

Outstanding balance sold to Purchaser: (1)

 

 

187,478

 

 

 

199,758

 

Cash collected, not remitted to Purchaser (2)

 

 

(49,166

)

 

 

(43,304

)

Remaining sold receivables

 

$

138,312

 

 

$

156,454

 

 

 

(1)

For the six months ended December 31, 2021 and 2020, the Company recorded a net cash inflow of $5.5 million and a net cash outflow of $0.2 million in its cash flows from operating activities, 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 December 31, 2021 and 2020.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.21.4
Long-term Debt (Tables)
 6 Months Ended
Dec. 31, 2021
Long Term Debt [Abstract]  
Schedule of Long-term Debt

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

 

 

 

December 31,

 

 

June 30,

 

 

 

2021

 

 

2021

 

Bank credit facility – term loans

 

$

1,225,000

 

 

$

797,635

 

Bank credit facility – revolver loans

 

 

896,500

 

 

 

945,000

 

Principal amount of long-term debt

 

 

2,121,500

 

 

 

1,742,635

 

Less unamortized discounts and debt issuance costs

 

 

(11,044

)

 

 

(6,796

)

Total long-term debt

 

 

2,110,456

 

 

 

1,735,839

 

Less current portion

 

 

(30,625

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

2,079,831

 

 

$

1,688,919

 
Aggregate Maturities of Long-term Debt

The aggregate maturities of long-term debt at December 31, 2021 were as follows (in thousands):

 

Twelve months ending December 31,

 

 

 

 

2022

 

$

30,625

 

2023

 

 

30,625

 

2024

 

 

61,250

 

2025

 

 

61,250

 

2026

 

 

1,937,750

 

Principal amount of long-term debt

 

 

2,121,500

 

Less unamortized discounts and debt issuance costs

  

 

(11,044

)

Total long-term debt

 

$

2,110,456

 
Cash Flow Hedges

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2021 and 2020 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gain (loss) recognized in other comprehensive income

 

$

2,194

 

 

$

(908

)

 

$

1,186

 

 

$

(2,188

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

3,230

 

 

 

3,552

 

 

 

6,452

 

 

 

7,084

 

Net current period other comprehensive income

 

$

5,424

 

 

$

2,644

 

 

$

7,638

 

 

$

4,896

 

 
v3.21.4
Earnings Per Share (Tables)
 6 Months Ended
Dec. 31, 2021
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):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income

 

$

90,299

 

 

$

106,478

 

 

$

178,408

 

 

$

200,122

 

Weighted-average number of basic shares outstanding

   during the period

 

 

23,399

 

 

 

25,225

 

 

 

23,480

 

 

 

25,162

 

Dilutive effect of RSUs after application of treasury

   stock method

 

 

199

 

 

 

226

 

 

 

242

 

 

 

307

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

23,598

 

 

 

25,451

 

 

 

23,722

 

 

 

25,469

 

Basic earnings per share

 

$

3.86

 

 

$

4.22

 

 

$

7.60

 

 

$

7.95

 

Diluted earnings per share

 

$

3.83

 

 

$

4.18

 

 

$

7.52

 

 

$

7.86

 

 
v3.21.4
Business Segment Information (Tables)
 6 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Summarized Financial Information of Reportable Segments Summarized financial information for the Company’s reportable segments is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Domestic

 

$

1,438,250

 

 

$

1,427,060

 

 

$

2,881,972

 

 

$

2,845,247

 

   International

 

 

47,528

 

 

 

41,651

 

 

 

94,704

 

 

 

82,970

 

Total revenues

 

$

1,485,778

 

 

$

1,468,711

 

 

$

2,976,676

 

 

$

2,928,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Domestic

 

$

83,407

 

 

$

99,921

 

 

$

165,104

 

 

$

188,058

 

   International

 

 

6,892

 

 

 

6,557

 

 

 

13,304

 

 

 

12,064

 

Total net income

 

$

90,299

 

 

$

106,478

 

 

$

178,408

 

 

$

200,122

 

 

 
v3.21.4
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Dec. 31, 2021
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 December 31, 2021 and June 30, 2021, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

December 31,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2021

 

 

2021

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

17

 

 

$

1,028

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

15,486

 

 

$

24,838

 
v3.21.4
Acquisitions (Detail Textual)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
USD ($)
Acquisition
Jun. 30, 2021
USD ($)
Business Acquisition [Line Items]    
Goodwill $ 4,064,968 $ 3,632,578
Customer contracts and related customer relationships    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 18 years 3 months 18 days  
Technology    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 15 years 3 months 18 days  
Other Acquisitions    
Business Acquisition [Line Items]    
Purchase consideration $ 616,200  
Number of acquisitions | Acquisition 4  
Goodwill $ 436,400  
Identifiable intangible assets 180,600  
Amount of tax deductible goodwill and intangibles 485,000  
Other Acquisitions | Customer contracts and related customer relationships    
Business Acquisition [Line Items]    
Identifiable intangible assets $ 98,400  
Other Acquisitions | Customer contracts and related customer relationships | Minimum    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 15 years  
Other Acquisitions | Customer contracts and related customer relationships | Maximum    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 20 years  
Other Acquisitions | Technology    
Business Acquisition [Line Items]    
Identifiable intangible assets $ 82,200  
Other Acquisitions | Technology | Minimum    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 5 years  
Other Acquisitions | Technology | Maximum    
Business Acquisition [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 10 years  
v3.21.4
Intangible Assets - Schedule of Intangible Assets Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
 [1]
Jun. 30, 2021
Finite Lived Intangible Assets [Line Items]    
Intangible assets $ 941,262 $ 799,789
Less accumulated amortization (320,574) (323,683)
Total intangible assets, net 620,688 476,106
Customer contracts and related customer relationships    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 660,842 601,516
Less accumulated amortization (258,104) (276,498)
Acquired technologies    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 280,420 198,273
Less accumulated amortization $ (62,470) $ (47,185)
[1]

During the six months ended December 31, 2021, the Company removed $38.5 million in fully amortized intangible assets.
v3.21.4
Intangible Assets - Schedule of Intangible Assets Net (Parenthetical) (Detail)
$ in Millions
 6 Months Ended
Dec. 31, 2021
USD ($)
Finite Lived Intangible Assets Net [Abstract]  
Removal of fully amortized intangible assets $ 38.5
v3.21.4
Intangible Assets (Detail Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]        
Amortization expense $ 18.1 $ 17.5 $ 35.6 $ 33.6
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     18 years 3 months 18 days  
Weighted-average remaining amortization period     10 years 1 month 6 days  
Acquired technologies        
Finite Lived Intangible Assets [Line Items]        
Weighted-average amortization period     15 years 3 months 18 days  
Weighted-average remaining amortization period     8 years 8 months 12 days  
v3.21.4
Intangible Assets - Schedule of Estimated Annual Amortization Expense (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Finite Lived Intangible Assets Net [Abstract]    
2022 (remainder of year) $ 38,514  
2023 75,525  
2024 72,050  
2025 67,882  
2026 60,244  
2027 and thereafter 306,473  
Total intangible assets, net $ 620,688 [1] $ 476,106
[1]

During the six months ended December 31, 2021, the Company removed $38.5 million in fully amortized intangible assets.
v3.21.4
Goodwill - Roll Forward of Goodwill (Detail)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
USD ($)
Goodwill [Roll Forward]  
Balance $ 3,632,578
Goodwill acquired 436,439 [1]
Foreign currency translation (4,049)
Balance 4,064,968
Domestic  
Goodwill [Roll Forward]  
Balance 3,491,747
Goodwill acquired 436,439 [1]
Foreign currency translation (613)
Balance 3,927,573
International  
Goodwill [Roll Forward]  
Balance 140,831
Foreign currency translation (3,436)
Balance $ 137,395
[1] Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable.
v3.21.4
Revenues from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Disaggregation Of Revenue [Line Items]        
Revenues $ 1,485,778 $ 1,468,711 $ 2,976,676 $ 2,928,217
Expertise        
Disaggregation Of Revenue [Line Items]        
Revenues 686,309 732,276 1,389,355 1,472,959
Technology        
Disaggregation Of Revenue [Line Items]        
Revenues 799,469 736,435 1,587,321 1,455,258
Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenues 1,335,846 1,327,025 2,677,405 2,653,863
Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenues 149,932 141,686 299,271 274,354
Department of Defense        
Disaggregation Of Revenue [Line Items]        
Revenues 1,037,014 1,012,875 2,037,141 2,017,070
Federal civilian agencies        
Disaggregation Of Revenue [Line Items]        
Revenues 371,897 390,034 785,561 780,213
Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenues 76,867 65,802 153,974 130,934
Cost-plus-fee        
Disaggregation Of Revenue [Line Items]        
Revenues 889,358 843,584 1,783,071 1,667,193
Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenues 433,290 440,821 840,995 874,635
Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenues 163,130 184,306 352,610 386,389
Domestic        
Disaggregation Of Revenue [Line Items]        
Revenues 1,438,250 1,427,060 2,881,972 2,845,247
Domestic | Expertise        
Disaggregation Of Revenue [Line Items]        
Revenues 668,209 715,812 1,351,833 1,439,009
Domestic | Technology        
Disaggregation Of Revenue [Line Items]        
Revenues 770,041 711,248 1,530,139 1,406,238
Domestic | Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenues 1,292,529 1,288,533 2,591,182 2,577,238
Domestic | Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenues 145,721 138,527 290,790 268,009
Domestic | Department of Defense        
Disaggregation Of Revenue [Line Items]        
Revenues 1,037,014 1,012,875 2,037,141 2,017,070
Domestic | Federal civilian agencies        
Disaggregation Of Revenue [Line Items]        
Revenues 371,897 390,034 785,561 780,213
Domestic | Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenues 29,339 24,151 59,270 47,964
Domestic | Cost-plus-fee        
Disaggregation Of Revenue [Line Items]        
Revenues 889,358 843,584 1,783,071 1,667,193
Domestic | Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenues 400,011 411,114 774,485 820,698
Domestic | Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenues 148,881 172,362 324,416 357,356
International        
Disaggregation Of Revenue [Line Items]        
Revenues 47,528 41,651 94,704 82,970
International | Expertise        
Disaggregation Of Revenue [Line Items]        
Revenues 18,100 16,464 37,522 33,950
International | Technology        
Disaggregation Of Revenue [Line Items]        
Revenues 29,428 25,187 57,182 49,020
International | Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenues 43,317 38,492 86,223 76,625
International | Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenues 4,211 3,159 8,481 6,345
International | Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenues 47,528 41,651 94,704 82,970
International | Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenues 33,279 29,707 66,510 53,937
International | Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenues $ 14,249 $ 11,944 $ 28,194 $ 29,033
v3.21.4
Revenues from Contracts with Customers (Detail Textual) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Change In Accounting Estimate [Line Items]        
Income before income taxes $ 113,098 $ 132,452 $ 229,729 $ 256,896
Diluted earnings per share $ 3.83 $ 4.18 $ 7.52 $ 7.86
EAC Adjustments        
Change In Accounting Estimate [Line Items]        
Income before income taxes $ 5,500 $ 18,100 $ 8,200 $ 25,900
Diluted earnings per share $ 0.17 $ 0.53 $ 0.26 $ 0.75
v3.21.4
Revenues from Contracts with Customers - Remaining Performance Obligations (Detail)
$ in Billions
Dec. 31, 2021
USD ($)
Revenue From Contract With Customer [Abstract]  
Remaining performance obligations $ 7.2
v3.21.4
Revenues from Contracts with Customers - Remaining Performance Obligations (Detail 1)
Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 85.00%
Remaining performance obligations, expected timing of satisfaction 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 15.00%
Remaining performance obligations, expected timing of satisfaction
v3.21.4
Contract Balances - Contract Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Contract with Customer, Asset and Liability [Abstract]    
Billed and billable receivables $ 757,999 $ 763,921
Contract assets – current unbilled receivables 96,416 115,930
Contract assets – current costs to obtain 4,722 4,144
Contract assets – noncurrent unbilled receivables 11,398 12,159
Contract assets – noncurrent costs to obtain 11,357 9,584
Contract liabilities – current deferred revenue and other contract liabilities (102,253) (70,907)
Contract liabilities – noncurrent deferred revenue and other contract liabilities $ (7,200) $ (6,837)
v3.21.4
Contract Balances (Detail Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]        
Liability, revenue recognized $ 13.6 $ 19.4 $ 68.3 $ 52.9
v3.21.4
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Inventory Disclosure [Abstract]    
Materials, purchased parts and supplies $ 61,179 $ 52,615
Work in process 16,145 11,353
Finished goods 19,115 15,728
Total $ 96,439 $ 79,696
v3.21.4
Sales of Receivables (Detail Textual)
$ in Millions
Dec. 23, 2021
USD ($)
MARPA  
MARPA maturity date Dec. 22, 2022
MARPA maximum commitment $ 200.0
v3.21.4
Sales of Receivables - Summary of MARPA Activity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Transfers And Servicing Of Financial Assets [Abstract]        
Outstanding balance sold to Purchaser $ 187,478 [1] $ 182,027 $ 199,758 [1] $ 200,000
Sales of receivables 1,361,521   1,354,577  
Cash collections (1,356,070)   (1,354,819)  
Cash collected, not remitted to Purchaser [2] (49,166)   (43,304)  
Remaining sold receivables $ 138,312   $ 156,454  
[1] For the six months ended December 31, 2021 and 2020, the Company recorded a net cash inflow of $5.5 million and a net cash outflow of $0.2 million in its cash flows from operating activities, respectively, from sold receivables.  MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.
[2] Includes the cash collected on behalf of but not yet remitted to the Purchaser as of December 31, 2021 and 2020.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.21.4
Sales of Receivables - Summary of MARPA Activity (Parentheticals) (Detail) - USD ($)
$ in Millions
 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Transfers And Servicing Of Financial Assets [Abstract]    
Cash provided (used) by MARPA $ 5.5 $ (0.2)
v3.21.4
Long-term Debt - Schedule of Long-term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 2,121,500 $ 1,742,635
Less unamortized discounts and debt issuance costs (11,044) (6,796)
Total long-term debt 2,110,456 1,735,839
Less current portion (30,625) (46,920)
Long-term debt, net of current portion 2,079,831 1,688,919
Bank credit facility - term loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt 1,225,000 797,635
Bank credit facility - revolver loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 896,500 $ 945,000
v3.21.4
Long-term Debt (Detail Textual) - USD ($)
 6 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Debt Instrument [Line Items]    
Outstanding amount under Credit Facility $ 2,121,500,000 $ 1,742,635,000
Interest Rate Swap | Cash Flow Hedging    
Debt Instrument [Line Items]    
Aggregate notional amount 650,000,000.0  
Bank Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 3,200,000,000.0  
Outstanding borrowings interest rate 1.92%  
Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 1,975,000,000.0  
Outstanding amount under Credit Facility 896,500,000 945,000,000
Term loans    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 1,225,000,000.0  
Outstanding amount under Credit Facility $ 1,225,000,000 $ 797,635,000
Term loan period 5 years  
Loan maturity date Dec. 13, 2026  
Term loan frequency of payment quarterly  
Term loan principal payment $ 7,700,000  
Term loans | Principal Payment After December 31, 2023    
Debt Instrument [Line Items]    
Term loan principal payment 15,300,000  
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  
v3.21.4
Long-term Debt - Aggregate Maturities of Long-Term Debt (Detail 2) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Long Term Debt [Abstract]    
2022 $ 30,625  
2023 30,625  
2024 61,250  
2025 61,250  
2026 1,937,750  
Principal amount of long-term debt 2,121,500 $ 1,742,635
Less unamortized discounts and debt issuance costs (11,044) (6,796)
Total long-term debt $ 2,110,456 $ 1,735,839
v3.21.4
Long-term Debt - Cash Flow Hedges (Detail 3) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Long Term Debt [Abstract]        
Gain (loss) recognized in other comprehensive income $ 2,194 $ (908) $ 1,186 $ (2,188)
Amounts reclassified to earnings from accumulated other comprehensive loss 3,230 3,552 6,452 7,084
Net current period other comprehensive income $ 5,424 $ 2,644 $ 7,638 $ 4,896
v3.21.4
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]        
Net income $ 90,299 $ 106,478 $ 178,408 $ 200,122
Weighted-average basic shares outstanding 23,399 25,225 23,480 25,162
Dilutive effect of RSUs after application of treasury stock method 199 226 242 307
Weighted-average number of diluted shares outstanding during the period 23,598 25,451 23,722 25,469
Basic earnings per share $ 3.86 $ 4.22 $ 7.60 $ 7.95
Diluted earnings per share $ 3.83 $ 4.18 $ 7.52 $ 7.86
v3.21.4
Income Taxes (Detail Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Jun. 30, 2021
Income Tax Disclosure [Abstract]          
Liability for unrecognized tax benefits $ 34.3   $ 34.3   $ 31.5
Unrecognized tax benefit that would impact the company's effective tax rate $ 34.3   $ 34.3    
Effective income tax rate 20.20% 19.60% 22.30% 22.10%  
v3.21.4
Business Segment Information (Detail Textual)
 6 Months Ended
Dec. 31, 2021
Segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.21.4
Business Segment Information - Summarized Financial Information of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]        
Revenues $ 1,485,778 $ 1,468,711 $ 2,976,676 $ 2,928,217
Net income 90,299 106,478 178,408 200,122
Domestic        
Segment Reporting Information [Line Items]        
Revenues 1,438,250 1,427,060 2,881,972 2,845,247
Net income 83,407 99,921 165,104 188,058
International        
Segment Reporting Information [Line Items]        
Revenues 47,528 41,651 94,704 82,970
Net income $ 6,892 $ 6,557 $ 13,304 $ 12,064
v3.21.4
Fair Value of Financial Instruments - Recurring Fair Value Measurements (Detail) - Fair Value, Measurements, Recurring - Level 2 - Interest Rate Swap - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Other accrued expenses and current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 17 $ 1,028
Other long-term liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 15,486 $ 24,838
v3.21.4
Accelerated Share Repurchase (Detail Textual) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
 6 Months Ended
Mar. 12, 2021
Dec. 31, 2021
Dec. 31, 2020
Accelerated Share Repurchases [Line Items]      
Payment for repurchase of common stock   $ 4,995 $ 4,420
Accelerated Share Repurchase      
Accelerated Share Repurchases [Line Items]      
Payment for repurchase of common stock $ 500,000    
Shares repurchased 1.7 0.3  
Total shares repurchased   2.0  
Shares repurchased, average price per share   $ 253.47  
v3.21.4
Subsequent Event (Detail Textual) - Cash Flow Hedging - Interest Rate Swap - USD ($)
 1 Months Ended
Jan. 01, 2023
Jul. 01, 2022
Jan. 31, 2022
Dec. 31, 2021
Subsequent Event [Line Items]        
Aggregate notional amount       $ 650,000,000.0
Subsequent Event        
Subsequent Event [Line Items]        
New interest rate swaps     In January 2022, the Company entered into two additional floating-to-fixed interest rate swap agreements including a 5 year $50.0 million swap effective July 1, 2022 and a 4 year $50.0 million swap effective January 1, 2023. The Company has designated these swaps as cash flow hedges.  
Aggregate notional amount $ 50,000,000.0 $ 50,000,000.0    
Interest rate swap, term of contract 4 years 5 years