CACI INTERNATIONAL INC /DE/, 10-Q filed on 10/27/2022
Quarterly Report
v3.22.2.2
Document And Entity Information - shares
 3 Months Ended
Sep. 30, 2022
Oct. 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   23,496,936
Document Type 10-Q  
Document Period End Date Sep. 30, 2022  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
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  
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]    
Revenues $ 1,605,759 $ 1,490,898
Costs of revenues:    
Direct costs 1,055,772 974,171
Indirect costs and selling expenses 382,081 357,106
Depreciation and amortization 35,103 32,592
Total costs of revenues 1,472,956 1,363,869
Income from operations 132,803 127,029
Interest expense and other, net 16,193 10,398
Income before income taxes 116,610 116,631
Income taxes 27,485 28,522
Net income $ 89,125 $ 88,109
Basic earnings per share $ 3.81 $ 3.74
Diluted earnings per share $ 3.76 $ 3.70
Weighted-average basic shares outstanding 23,420 23,560
Weighted-average diluted shares outstanding 23,678 23,844
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Statement Of Income And Comprehensive Income [Abstract]    
Net income $ 89,125 $ 88,109
Other comprehensive (loss) income:    
Foreign currency translation adjustment (17,489) (6,762)
Change in fair value of interest rate swap agreements, net of tax 15,529 2,214
Other comprehensive loss, net of tax (1,960) (4,548)
Comprehensive income $ 87,165 $ 83,561
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Current assets:    
Cash and cash equivalents $ 136,636 $ 114,804
Accounts receivable, net 794,777 926,144
Prepaid expenses and other current assets 194,579 168,690
Total current assets 1,125,992 1,209,638
Goodwill 4,052,778 4,058,291
Intangible assets, net 561,564 581,385
Property, plant and equipment, net 199,817 205,622
Operating lease right-of-use assets 309,474 317,359
Supplemental retirement savings plan assets 94,156 96,114
Accounts receivable, long-term 10,623 10,199
Other long-term assets 170,478 150,823
Total assets 6,524,882 6,629,431
Current liabilities:    
Current portion of long-term debt 30,625 30,625
Accounts payable 229,366 303,443
Accrued compensation and benefits 373,860 405,722
Other accrued expenses and current liabilities 331,980 287,571
Total current liabilities 965,831 1,027,361
Long-term debt, net of current portion 1,597,055 1,702,148
Supplemental retirement savings plan obligations, net of current portion 102,580 102,127
Deferred income taxes 311,283 356,841
Operating lease liabilities, noncurrent 307,391 315,315
Other long-term liabilities 92,172 72,096
Total liabilities 3,376,312 3,575,888
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; 42,826 shares issued and 23,422 outstanding at September 30, 2022 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 4,283 4,282
Additional paid-in capital 579,511 571,650
Retained earnings 3,645,006 3,555,881
Accumulated other comprehensive loss (33,036) (31,076)
Treasury stock, at cost (19,404 and 19,404 shares, respectively) (1,047,329) (1,047,329)
Total CACI shareholders’ equity 3,148,435 3,053,408
Noncontrolling interest 135 135
Total shareholders’ equity 3,148,570 3,053,543
Total liabilities and shareholders’ equity $ 6,524,882 $ 6,629,431
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Sep. 30, 2022
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 42,826,000 42,820,000
Common stock, shares outstanding 23,422,000 23,416,000
Treasury stock, shares at cost 19,404,000 19,404,000
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 89,125 $ 88,109
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 35,103 32,592
Amortization of deferred financing costs 564 576
Non-cash lease expense 17,319 16,960
Stock-based compensation expense 8,439 6,669
Deferred income taxes (31,177) (4,461)
Changes in operating assets and liabilities, net of effect of business acquisitions:    
Accounts receivable, net 126,859 108,236
Prepaid expenses and other assets (34,438) (24,085)
Accounts payable and other accrued expenses (52,598) (16,235)
Accrued compensation and benefits (31,048) (40,521)
Income taxes payable and receivable 35,514 31,444
Operating lease liabilities (19,903) (16,076)
Long-term liabilities 1,084 2,745
Net cash provided by operating activities 144,843 185,953
CASH FLOWS FROM INVESTING ACTIVITIES    
Capital expenditures (12,771) (10,203)
Acquisition of businesses, net of cash acquired   (116,273)
Net cash used in investing activities (12,771) (126,476)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from borrowings under bank credit facilities 378,000 548,000
Principal payments made under bank credit facilities (483,656) (589,730)
Proceeds from employee stock purchase plans 2,791 2,911
Repurchases of common stock (2,647) (2,472)
Payment of taxes for equity transactions (584) (426)
Net cash used in financing activities (106,096) (41,717)
Effect of exchange rate changes on cash and cash equivalents (4,144) (1,361)
Net change in cash and cash equivalents 21,832 16,399
Cash and cash equivalents at beginning of period 114,804 88,031
Cash and cash equivalents at end of period 136,636 104,430
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for income taxes 20,786 518
Cash paid during the period for interest 13,485 9,383
Non-cash financing and investing activities:    
Landlord sponsored tenant incentives 1,443 724
Accrued capital expenditures $ 401 $ 227
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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, 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 88,109     88,109     88,109  
Stock-based compensation expense 6,669   6,669       6,669  
Tax withholdings on restricted share vestings (273) $ 3 (276)       (273)  
Tax withholdings on restricted share vestings (in shares)   34            
Other comprehensive loss, net of tax (4,548)       (4,548)   (4,548)  
Repurchases of common stock (2,472)   70,974     $ (73,446) (2,472)  
Repurchases of common stock (in shares)           292    
Treasury stock issued under stock purchase plans 2,359   61     $ 2,298 2,359  
Treasury stock issued under stock purchase plans (in shares)           (10)    
Ending balance at Sep. 30, 2021 2,755,122 $ 4,271 561,688 3,277,196 (40,839) $ (1,047,329) 2,754,987 135
Ending balance, shares at Sep. 30, 2021   42,710       19,404    
Beginning balance at Jun. 30, 2022 3,053,543 $ 4,282 571,650 3,555,881 (31,076) $ (1,047,329) 3,053,408 135
Beginning balance, shares at Jun. 30, 2022   42,820       19,404    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 89,125     89,125     89,125  
Stock-based compensation expense 8,439   8,439       8,439  
Tax withholdings on restricted share vestings (435) $ 1 (436)       (435)  
Tax withholdings on restricted share vestings (in shares)   6            
Other comprehensive loss, net of tax (1,960)       (1,960)   (1,960)  
Repurchases of common stock (2,647)   (182)     $ (2,465) (2,647)  
Repurchases of common stock (in shares)           9    
Treasury stock issued under stock purchase plans 2,505   40     $ 2,465 2,505  
Treasury stock issued under stock purchase plans (in shares)           (9)    
Ending balance at Sep. 30, 2022 $ 3,148,570 $ 4,283 $ 579,511 $ 3,645,006 $ (33,036) $ (1,047,329) $ 3,148,435 $ 135
Ending balance, shares at Sep. 30, 2022   42,826       19,404    
v3.22.2.2
Basis of Presentation
 3 Months Ended
Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

Note 1 – Basis of Presentation

The accompanying unaudited condensed 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 September 30, 2022 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.

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, 2022.  The results of operations for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year.
v3.22.2.2
Recent Accounting Pronouncements
 3 Months Ended
Sep. 30, 2022
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, as reference rate reform activities occur through December 31, 2022.  However, in April 2022, the FASB proposed extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024.  The change is to align the temporary accounting relief guidance with the expected cessation date of LIBOR, which was postponed by administrators earlier this year to June 2023, a year after the current sunset date of ASU 2020-04.  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.
v3.22.2.2
Goodwill and Intangible Assets
 3 Months Ended
Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 3 – Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the three months ended September 30, 2022 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2022

 

$

3,934,625

 

 

$

123,666

 

 

$

4,058,291

 

Goodwill acquired (1)

 

 

5,742

 

 

 

—

 

 

 

5,742

 

Foreign currency translation

 

 

(1,082

)

 

 

(10,173

)

 

 

(11,255

)

Balance at September 30, 2022

 

$

3,939,285

 

 

$

113,493

 

 

$

4,052,778

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Final purchase price allocations for two of the fiscal year 2022 acquisitions were completed during the three months ended September 30, 2022 and two remain open for the finalization of net working capital and income taxes.

There were no impairments of goodwill during the periods presented.

Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

September 30, 2022

 

 

June 30, 2022

 

 

 

Gross carrying

 

 

Accumulated

 

 

Net carrying

 

 

Gross carrying

 

 

Accumulated

 

 

Net carrying

 

 

 

value

 

 

amortization

 

 

value

 

 

value

 

 

amortization

 

 

value

 

Customer contracts and related

   customer relationships

 

$

655,342

 

 

$

(285,545

)

 

$

369,797

 

 

$

656,353

 

 

$

(275,538

)

 

$

380,815

 

Acquired technologies

 

 

280,029

 

 

 

(88,262

)

 

 

191,767

 

 

 

280,196

 

 

 

(79,626

)

 

 

200,570

 

Total intangible assets

 

$

935,371

 

 

$

(373,807

)

 

$

561,564

 

 

$

936,549

 

 

$

(355,164

)

 

$

581,385

 

Amortization expense related to intangible assets was $19.1 million and $17.6 million for the three months ended September 30, 2022 and 2021, respectively.
v3.22.2.2
Revenues and Contract Balances
 3 Months Ended
Sep. 30, 2022
Revenue From Contract With Customer [Abstract]  
Revenues and Contract Balances

Note 4 – Revenues and Contract Balances

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

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

934,746

 

 

$

—

 

 

$

934,746

 

 

$

893,713

 

 

$

—

 

 

$

893,713

 

Fixed-price

 

 

448,562

 

 

 

33,211

 

 

 

481,773

 

 

 

374,474

 

 

 

33,231

 

 

 

407,705

 

Time-and-materials

 

 

175,587

 

 

 

13,653

 

 

 

189,240

 

 

 

175,535

 

 

 

13,945

 

 

 

189,480

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,095,320

 

 

$

—

 

 

$

1,095,320

 

 

$

1,000,127

 

 

$

—

 

 

$

1,000,127

 

Federal Civilian agencies

 

 

424,087

 

 

 

—

 

 

 

424,087

 

 

 

413,664

 

 

 

—

 

 

 

413,664

 

Commercial and other

 

 

39,488

 

 

 

46,864

 

 

 

86,352

 

 

 

29,931

 

 

 

47,176

 

 

 

77,107

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,407,454

 

 

$

42,856

 

 

$

1,450,310

 

 

$

1,298,653

 

 

$

42,906

 

 

$

1,341,559

 

Subcontractor

 

 

151,441

 

 

 

4,008

 

 

 

155,449

 

 

 

145,069

 

 

 

4,270

 

 

 

149,339

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

717,650

 

 

$

16,553

 

 

$

734,203

 

 

$

683,624

 

 

$

19,422

 

 

$

703,046

 

Technology

 

 

841,245

 

 

 

30,311

 

 

 

871,556

 

 

 

760,098

 

 

 

27,754

 

 

 

787,852

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

 

 

Changes in Estimates

Aggregate net changes in estimates for the three months ended September 30, 2022 reflected an increase to income before income taxes of $5.7 million ($0.18 per diluted share), compared with $2.8 million ($0.09 per diluted share) for the three months ended September 30, 2021.  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 months ended September 30, 2022 and 2021, respectively.  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

As of September 30, 2022, the Company had $9.2 billion of remaining performance obligations and expects to recognize approximately 44% and 62% over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.

Contract Balances

Contract balances consisted of the following (in thousands):

 

 

 

 

 

September 30,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2022

 

 

2022

 

Billed and billable receivables

 

Accounts receivable, net

 

$

656,253

 

 

$

800,597

 

Contract assets – current unbilled receivables

 

Accounts receivable, net

 

 

138,524

 

 

 

125,547

 

Contract assets – current costs to obtain

 

Prepaid expenses and other current assets

 

 

5,270

 

 

 

5,167

 

Contract assets – noncurrent unbilled receivables

 

Accounts receivable, long-term

 

 

10,623

 

 

 

10,199

 

Contract assets – noncurrent costs to obtain

 

Other long-term assets

 

 

10,307

 

 

 

10,703

 

Contract liabilities – current deferred

   revenue and other contract liabilities

 

Other accrued expenses and current liabilities

 

 

(104,519

)

 

 

(84,810

)

Contract liabilities – noncurrent deferred

   revenue and other contract liabilities

 

Other long-term liabilities

 

 

(5,775

)

 

 

(7,552

)

During the three months ended September 30, 2022, we recognized $50.5 million of revenues, compared with $54.7 of revenues for the three months ended September 30, 2021, that was included in a previously recorded contract liability as of the beginning of the period.
v3.22.2.2
Inventories
 3 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
Inventories

Note 5 – Inventories

Inventories consisted of the following (in thousands):

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Materials, purchased parts and supplies

 

$

62,458

 

 

$

57,407

 

Work in process

 

 

15,333

 

 

 

28,748

 

Finished goods

 

 

32,411

 

 

 

13,207

 

Total

 

$

110,202

 

 

$

99,362

 

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.
v3.22.2.2
Sales of Receivables
 3 Months Ended
Sep. 30, 2022
Transfers And Servicing Of Financial Assets [Abstract]  
Sales of Receivables

Note 6 – Sales of Receivables

On December 23, 2021, the Company amended its Master Accounts Receivable Purchase Agreement (MARPA) with MUFG Bank, Ltd. (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 September 30, 2022.  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 Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Beginning balance:

 

$

157,785

 

 

$

182,027

 

Sales of receivables

 

 

737,873

 

 

 

690,132

 

Cash collections

 

 

(735,969

)

 

 

(678,643

)

Outstanding balance sold to Purchaser: (1)

 

 

159,689

 

 

 

193,516

 

Cash collected, not remitted to Purchaser (2)

 

 

(24,550

)

 

 

(51,034

)

Remaining sold receivables

 

$

135,139

 

 

$

142,482

 

 

(1)

For the three months ended September 30, 2022 and 2021, the Company recorded net cash inflows of $1.9 million and $11.5 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 Purchaser as of September 30, 2022 and 2021.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.22.2.2
Debt
 3 Months Ended
Sep. 30, 2022
Long Term Debt [Abstract]  
Debt

Note 7 – Debt 

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

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Bank credit facility – term loans

 

$

1,202,031

 

 

$

1,209,688

 

Bank credit facility – revolver loans

 

 

435,000

 

 

 

533,000

 

Principal amount of long-term debt

 

 

1,637,031

 

 

 

1,742,688

 

Less unamortized discounts and debt issuance costs

 

 

(9,351

)

 

 

(9,915

)

Total long-term debt

 

 

1,627,680

 

 

 

1,732,773

 

Less current portion

 

 

(30,625

)

 

 

(30,625

)

Long-term debt, net of current portion

 

$

1,597,055

 

 

$

1,702,148

 

 

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 September 30, 2022, the Company had $435.0 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 $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 September 30, 2022, the Company had $1,202.0 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 net leverage ratio.  As of September 30, 2022, 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 3.57%.

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 September 30, 2022, 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.

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 2028.  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 months ended September 30, 2022 and 2021 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Gain (loss) recognized in other comprehensive income

 

$

15,586

 

 

$

(1,008

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

(57

)

 

 

3,222

 

Net current period other comprehensive income

 

$

15,529

 

 

$

2,214

 

 
v3.22.2.2
Legal Proceedings and Other Commitments and Contingencies
 3 Months Ended
Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]  
Legal Proceedings and Other Commitments and Contingencies

Note 8 – 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 time-and-materials 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 2020.  The Company is still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believes 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.
v3.22.2.2
Earnings Per Share
 3 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share

Note 9 – 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

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Net income

 

$

89,125

 

 

$

88,109

 

Weighted-average number of basic shares outstanding during the period

 

 

23,420

 

 

 

23,560

 

Dilutive effect of RSUs after application of treasury stock method

 

 

258

 

 

 

284

 

Weighted-average number of diluted shares outstanding during the period

 

 

23,678

 

 

 

23,844

 

Basic earnings per share

 

$

3.81

 

 

$

3.74

 

Diluted earnings per share

 

$

3.76

 

 

$

3.70

 

 
v3.22.2.2
Income Taxes
 3 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – 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 resolution of the examination to have a material impact on its results of operations, financial condition, or cash flows. 

During fiscal year 2023, a provision of the Tax Cuts and Jobs Act of 2017 (TCJA) went into effect which eliminated the option to deduct domestic research and development costs in the year incurred and instead requires taxpayers to amortize such costs over five years. Although it is possible that Congress amends this provision of the TCJA, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision.  During the quarter, the Company recognized a liability for unrecognized tax benefits and a corresponding deferred tax asset of $19.8 million related to the capitalization and amortization of research costs related to provisions of the TCJA becoming effective.

The Company’s effective income tax rate for the three months ended September 30, 2022 and 2021 was 23.6% and 24.5%, respectively. The effective tax rates for the three months ended September 30, 2022 and 2021 both benefited from the favorable impact of research and development credits, partially offset by the unfavorable impacts of certain executive compensation.
v3.22.2.2
Business Segments
 3 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Business Segments

Note 11 – Business Segments

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):

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

   Domestic

 

$

1,558,895

 

 

$

1,443,722

 

   International

 

 

46,864

 

 

 

47,176

 

Total revenues

 

$

1,605,759

 

 

$

1,490,898

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

   Domestic

 

$

80,553

 

 

$

81,697

 

   International

 

 

8,572

 

 

 

6,412

 

Total net income

 

$

89,125

 

 

$

88,109

 

 
v3.22.2.2
Fair Value Measurements
 3 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 12 – Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and categorizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data which requires development of assumptions that market participants would use in pricing the asset or liability (Level 3).

The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2022

 

 

2022

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Prepaid expenses and other

   current assets

 

Level 2

 

$

1,952

 

 

$

337

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

38,526

 

 

$

19,184

 

The Company uses 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.
v3.22.2.2
Goodwill and Intangible Assets (Tables)
 3 Months Ended
Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Roll Forward of Goodwill

The changes in the carrying amount of goodwill for the three months ended September 30, 2022 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2022

 

$

3,934,625

 

 

$

123,666

 

 

$

4,058,291

 

Goodwill acquired (1)

 

 

5,742

 

 

 

—

 

 

 

5,742

 

Foreign currency translation

 

 

(1,082

)

 

 

(10,173

)

 

 

(11,255

)

Balance at September 30, 2022

 

$

3,939,285

 

 

$

113,493

 

 

$

4,052,778

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Final purchase price allocations for two of the fiscal year 2022 acquisitions were completed during the three months ended September 30, 2022 and two remain open for the finalization of net working capital and income taxes.
Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

September 30, 2022

 

 

June 30, 2022

 

 

 

Gross carrying

 

 

Accumulated

 

 

Net carrying

 

 

Gross carrying

 

 

Accumulated

 

 

Net carrying

 

 

 

value

 

 

amortization

 

 

value

 

 

value

 

 

amortization

 

 

value

 

Customer contracts and related

   customer relationships

 

$

655,342

 

 

$

(285,545

)

 

$

369,797

 

 

$

656,353

 

 

$

(275,538

)

 

$

380,815

 

Acquired technologies

 

 

280,029

 

 

 

(88,262

)

 

 

191,767

 

 

 

280,196

 

 

 

(79,626

)

 

 

200,570

 

Total intangible assets

 

$

935,371

 

 

$

(373,807

)

 

$

561,564

 

 

$

936,549

 

 

$

(355,164

)

 

$

581,385

 
v3.22.2.2
Revenues and Contract Balances (Tables)
 3 Months Ended
Sep. 30, 2022
Revenue From Contract With Customer [Abstract]  
Schedule of Disaggregated Revenues

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

934,746

 

 

$

—

 

 

$

934,746

 

 

$

893,713

 

 

$

—

 

 

$

893,713

 

Fixed-price

 

 

448,562

 

 

 

33,211

 

 

 

481,773

 

 

 

374,474

 

 

 

33,231

 

 

 

407,705

 

Time-and-materials

 

 

175,587

 

 

 

13,653

 

 

 

189,240

 

 

 

175,535

 

 

 

13,945

 

 

 

189,480

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

1,095,320

 

 

$

—

 

 

$

1,095,320

 

 

$

1,000,127

 

 

$

—

 

 

$

1,000,127

 

Federal Civilian agencies

 

 

424,087

 

 

 

—

 

 

 

424,087

 

 

 

413,664

 

 

 

—

 

 

 

413,664

 

Commercial and other

 

 

39,488

 

 

 

46,864

 

 

 

86,352

 

 

 

29,931

 

 

 

47,176

 

 

 

77,107

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,407,454

 

 

$

42,856

 

 

$

1,450,310

 

 

$

1,298,653

 

 

$

42,906

 

 

$

1,341,559

 

Subcontractor

 

 

151,441

 

 

 

4,008

 

 

 

155,449

 

 

 

145,069

 

 

 

4,270

 

 

 

149,339

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

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

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

717,650

 

 

$

16,553

 

 

$

734,203

 

 

$

683,624

 

 

$

19,422

 

 

$

703,046

 

Technology

 

 

841,245

 

 

 

30,311

 

 

 

871,556

 

 

 

760,098

 

 

 

27,754

 

 

 

787,852

 

Total

 

$

1,558,895

 

 

$

46,864

 

 

$

1,605,759

 

 

$

1,443,722

 

 

$

47,176

 

 

$

1,490,898

 

 

 
Contract Assets and Liabilities

Contract balances consisted of the following (in thousands):

 

 

 

 

 

September 30,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2022

 

 

2022

 

Billed and billable receivables

 

Accounts receivable, net

 

$

656,253

 

 

$

800,597

 

Contract assets – current unbilled receivables

 

Accounts receivable, net

 

 

138,524

 

 

 

125,547

 

Contract assets – current costs to obtain

 

Prepaid expenses and other current assets

 

 

5,270

 

 

 

5,167

 

Contract assets – noncurrent unbilled receivables

 

Accounts receivable, long-term

 

 

10,623

 

 

 

10,199

 

Contract assets – noncurrent costs to obtain

 

Other long-term assets

 

 

10,307

 

 

 

10,703

 

Contract liabilities – current deferred

   revenue and other contract liabilities

 

Other accrued expenses and current liabilities

 

 

(104,519

)

 

 

(84,810

)

Contract liabilities – noncurrent deferred

   revenue and other contract liabilities

 

Other long-term liabilities

 

 

(5,775

)

 

 

(7,552

)
v3.22.2.2
Inventories (Tables)
 3 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
Components of Inventories

Inventories consisted of the following (in thousands):

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Materials, purchased parts and supplies

 

$

62,458

 

 

$

57,407

 

Work in process

 

 

15,333

 

 

 

28,748

 

Finished goods

 

 

32,411

 

 

 

13,207

 

Total

 

$

110,202

 

 

$

99,362

 

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.
v3.22.2.2
Sales of Receivables (Tables)
 3 Months Ended
Sep. 30, 2022
Transfers And Servicing Of Financial Assets [Abstract]  
Summary of MARPA Activity

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Beginning balance:

 

$

157,785

 

 

$

182,027

 

Sales of receivables

 

 

737,873

 

 

 

690,132

 

Cash collections

 

 

(735,969

)

 

 

(678,643

)

Outstanding balance sold to Purchaser: (1)

 

 

159,689

 

 

 

193,516

 

Cash collected, not remitted to Purchaser (2)

 

 

(24,550

)

 

 

(51,034

)

Remaining sold receivables

 

$

135,139

 

 

$

142,482

 

 

(1)

For the three months ended September 30, 2022 and 2021, the Company recorded net cash inflows of $1.9 million and $11.5 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 Purchaser as of September 30, 2022 and 2021.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.22.2.2
Debt (Tables)
 3 Months Ended
Sep. 30, 2022
Long Term Debt [Abstract]  
Schedule of Long-term Debt

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

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Bank credit facility – term loans

 

$

1,202,031

 

 

$

1,209,688

 

Bank credit facility – revolver loans

 

 

435,000

 

 

 

533,000

 

Principal amount of long-term debt

 

 

1,637,031

 

 

 

1,742,688

 

Less unamortized discounts and debt issuance costs

 

 

(9,351

)

 

 

(9,915

)

Total long-term debt

 

 

1,627,680

 

 

 

1,732,773

 

Less current portion

 

 

(30,625

)

 

 

(30,625

)

Long-term debt, net of current portion

 

$

1,597,055

 

 

$

1,702,148

 

 
Cash Flow Hedges

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three months ended September 30, 2022 and 2021 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Gain (loss) recognized in other comprehensive income

 

$

15,586

 

 

$

(1,008

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

(57

)

 

 

3,222

 

Net current period other comprehensive income

 

$

15,529

 

 

$

2,214

 

 
v3.22.2.2
Earnings Per Share (Tables)
 3 Months Ended
Sep. 30, 2022
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

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Net income

 

$

89,125

 

 

$

88,109

 

Weighted-average number of basic shares outstanding during the period

 

 

23,420

 

 

 

23,560

 

Dilutive effect of RSUs after application of treasury stock method

 

 

258

 

 

 

284

 

Weighted-average number of diluted shares outstanding during the period

 

 

23,678

 

 

 

23,844

 

Basic earnings per share

 

$

3.81

 

 

$

3.74

 

Diluted earnings per share

 

$

3.76

 

 

$

3.70

 

 
v3.22.2.2
Business Segments (Tables)
 3 Months Ended
Sep. 30, 2022
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

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

   Domestic

 

$

1,558,895

 

 

$

1,443,722

 

   International

 

 

46,864

 

 

 

47,176

 

Total revenues

 

$

1,605,759

 

 

$

1,490,898

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

   Domestic

 

$

80,553

 

 

$

81,697

 

   International

 

 

8,572

 

 

 

6,412

 

Total net income

 

$

89,125

 

 

$

88,109

 

 
v3.22.2.2
Fair Value Measurements (Tables)
 3 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements

The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2022

 

 

2022

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Prepaid expenses and other

   current assets

 

Level 2

 

$

1,952

 

 

$

337

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

38,526

 

 

$

19,184

 
v3.22.2.2
Goodwill and Intangible Assets - Roll Forward of Goodwill (Details)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
USD ($)
Goodwill [Roll Forward]  
Balance at June 30, 2022 $ 4,058,291
Goodwill acquired 5,742 [1]
Foreign currency translation (11,255)
Balance at September 30, 2022 4,052,778
Domestic  
Goodwill [Roll Forward]  
Balance at June 30, 2022 3,934,625
Goodwill acquired 5,742 [1]
Foreign currency translation (1,082)
Balance at September 30, 2022 3,939,285
International  
Goodwill [Roll Forward]  
Balance at June 30, 2022 123,666
Foreign currency translation (10,173)
Balance at September 30, 2022 $ 113,493
[1] Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Final purchase price allocations for two of the fiscal year 2022 acquisitions were completed during the three months ended September 30, 2022 and two remain open for the finalization of net working capital and income taxes.
v3.22.2.2
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Finite Lived Intangible Assets Net [Abstract]    
Amortization expense $ 19.1 $ 17.6
v3.22.2.2
Goodwill and Intangible Assets - Schedule of Intangible Assets Net (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Finite Lived Intangible Assets [Line Items]    
Gross carrying value $ 935,371 $ 936,549
Accumulated amortization (373,807) (355,164)
Net carrying value 561,564 581,385
Customer contracts and related customer relationships    
Finite Lived Intangible Assets [Line Items]    
Gross carrying value 655,342 656,353
Accumulated amortization (285,545) (275,538)
Net carrying value 369,797 380,815
Acquired technologies    
Finite Lived Intangible Assets [Line Items]    
Gross carrying value 280,029 280,196
Accumulated amortization (88,262) (79,626)
Net carrying value $ 191,767 $ 200,570
v3.22.2.2
Revenues and Contract Balances - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Disaggregation Of Revenue [Line Items]    
Revenues $ 1,605,759 $ 1,490,898
Expertise    
Disaggregation Of Revenue [Line Items]    
Revenues 734,203 703,046
Technology    
Disaggregation Of Revenue [Line Items]    
Revenues 871,556 787,852
Prime contractor    
Disaggregation Of Revenue [Line Items]    
Revenues 1,450,310 1,341,559
Subcontractor    
Disaggregation Of Revenue [Line Items]    
Revenues 155,449 149,339
Department of Defense    
Disaggregation Of Revenue [Line Items]    
Revenues 1,095,320 1,000,127
Federal civilian agencies    
Disaggregation Of Revenue [Line Items]    
Revenues 424,087 413,664
Commercial and other    
Disaggregation Of Revenue [Line Items]    
Revenues 86,352 77,107
Cost-plus-fee    
Disaggregation Of Revenue [Line Items]    
Revenues 934,746 893,713
Fixed-price    
Disaggregation Of Revenue [Line Items]    
Revenues 481,773 407,705
Time and materials    
Disaggregation Of Revenue [Line Items]    
Revenues 189,240 189,480
Domestic    
Disaggregation Of Revenue [Line Items]    
Revenues 1,558,895 1,443,722
Domestic | Expertise    
Disaggregation Of Revenue [Line Items]    
Revenues 717,650 683,624
Domestic | Technology    
Disaggregation Of Revenue [Line Items]    
Revenues 841,245 760,098
Domestic | Prime contractor    
Disaggregation Of Revenue [Line Items]    
Revenues 1,407,454 1,298,653
Domestic | Subcontractor    
Disaggregation Of Revenue [Line Items]    
Revenues 151,441 145,069
Domestic | Department of Defense    
Disaggregation Of Revenue [Line Items]    
Revenues 1,095,320 1,000,127
Domestic | Federal civilian agencies    
Disaggregation Of Revenue [Line Items]    
Revenues 424,087 413,664
Domestic | Commercial and other    
Disaggregation Of Revenue [Line Items]    
Revenues 39,488 29,931
Domestic | Cost-plus-fee    
Disaggregation Of Revenue [Line Items]    
Revenues 934,746 893,713
Domestic | Fixed-price    
Disaggregation Of Revenue [Line Items]    
Revenues 448,562 374,474
Domestic | Time and materials    
Disaggregation Of Revenue [Line Items]    
Revenues 175,587 175,535
International    
Disaggregation Of Revenue [Line Items]    
Revenues 46,864 47,176
International | Expertise    
Disaggregation Of Revenue [Line Items]    
Revenues 16,553 19,422
International | Technology    
Disaggregation Of Revenue [Line Items]    
Revenues 30,311 27,754
International | Prime contractor    
Disaggregation Of Revenue [Line Items]    
Revenues 42,856 42,906
International | Subcontractor    
Disaggregation Of Revenue [Line Items]    
Revenues 4,008 4,270
International | Commercial and other    
Disaggregation Of Revenue [Line Items]    
Revenues 46,864 47,176
International | Fixed-price    
Disaggregation Of Revenue [Line Items]    
Revenues 33,211 33,231
International | Time and materials    
Disaggregation Of Revenue [Line Items]    
Revenues $ 13,653 $ 13,945
v3.22.2.2
Revenues and Contract Balances (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Change In Accounting Estimate [Line Items]    
Income before income taxes $ 116,610 $ 116,631
Diluted earnings per share $ 3.76 $ 3.70
Change in Contract with Customer, Liability [Abstract]    
Liability, revenue recognized $ 50,500 $ 54,700
EAC Adjustments    
Change In Accounting Estimate [Line Items]    
Income before income taxes $ 5,700 $ 2,800
Diluted earnings per share $ 0.18 $ 0.09
v3.22.2.2
Revenues and Contract Balances - Remaining Performance Obligations (Details)
$ in Billions
Sep. 30, 2022
USD ($)
Revenue From Contract With Customer [Abstract]  
Remaining performance obligations $ 9.2
v3.22.2.2
Revenues and Contract Balances - Remaining Performance Obligations (Details 1)
Sep. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 44.00%
Remaining performance obligations, expected timing of satisfaction 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 62.00%
Remaining performance obligations, expected timing of satisfaction 24 months
v3.22.2.2
Revenues and Contract Balances - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Contract with Customer, Asset and Liability [Abstract]    
Billed and billable receivables $ 656,253 $ 800,597
Contract assets – current unbilled receivables 138,524 125,547
Contract assets – current costs to obtain 5,270 5,167
Accounts receivable, long-term 10,623 10,199
Contract assets – noncurrent costs to obtain 10,307 10,703
Contract liabilities – current deferred revenue and other contract liabilities (104,519) (84,810)
Contract liabilities – noncurrent deferred revenue and other contract liabilities $ (5,775) $ (7,552)
v3.22.2.2
Inventories - Components of Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Inventory Disclosure [Abstract]    
Materials, purchased parts and supplies $ 62,458 $ 57,407
Work in process 15,333 28,748
Finished goods 32,411 13,207
Total $ 110,202 $ 99,362
v3.22.2.2
Sales of Receivables (Details)
$ in Millions
Dec. 23, 2021
USD ($)
MARPA  
MARPA maturity date Dec. 22, 2022
MARPA maximum commitment $ 200.0
v3.22.2.2
Sales of Receivables - Summary of MARPA Activity (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Sep. 30, 2021
Jun. 30, 2021
Transfers And Servicing Of Financial Assets [Abstract]        
Outstanding balance sold to Purchaser $ 159,689 [1] $ 157,785 $ 193,516 [1] $ 182,027
Sales of receivables 737,873   690,132  
Cash collections (735,969)   (678,643)  
Cash collected, not remitted to Purchaser [2] (24,550)   (51,034)  
Remaining sold receivables $ 135,139   $ 142,482  
[1] For the three months ended September 30, 2022 and 2021, the Company recorded net cash inflows of $1.9 million and $11.5 million in its cash flows from operating activities, respectively, from sold receivables.  MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.
[2] Includes the cash collected on behalf of but not yet remitted to Purchaser as of September 30, 2022 and 2021.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.22.2.2
Sales of Receivables - Summary of MARPA Activity (Parentheticals) (Details) - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Transfers And Servicing Of Financial Assets [Abstract]    
Cash provided (used) by MARPA $ 1.9 $ 11.5
v3.22.2.2
Debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 1,637,031 $ 1,742,688
Less unamortized discounts and debt issuance costs (9,351) (9,915)
Total long-term debt 1,627,680 1,732,773
Less current portion (30,625) (30,625)
Long-term debt, net of current portion 1,597,055 1,702,148
Total long-term debt 1,627,680 1,732,773
Bank credit facility - term loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt 1,202,031 1,209,688
Bank credit facility - revolver loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 435,000 $ 533,000
v3.22.2.2
Debt (Details) - USD ($)
 3 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Debt Instrument [Line Items]    
Outstanding amount under Credit Facility $ 1,637,031,000 $ 1,742,688,000
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 $ 3,200,000,000.0  
Outstanding borrowings interest rate 3.57%  
Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 1,975,000,000.0  
Outstanding amount under Credit Facility 435,000,000 533,000,000
Term loans    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 1,225,000,000.0  
Outstanding amount under Credit Facility $ 1,202,031,000 $ 1,209,688,000
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  
v3.22.2.2
Debt - Cash Flow Hedges (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Long Term Debt [Abstract]    
Gain (loss) recognized in other comprehensive income $ 15,586 $ (1,008)
Amounts reclassified to earnings from accumulated other comprehensive loss (57) 3,222
Net current period other comprehensive income $ 15,529 $ 2,214
v3.22.2.2
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Earnings Per Share [Abstract]    
Net income $ 89,125 $ 88,109
Weighted-average basic shares outstanding 23,420 23,560
Dilutive effect of RSUs after application of treasury stock method 258 284
Weighted-average number of diluted shares outstanding during the period 23,678 23,844
Basic earnings per share $ 3.81 $ 3.74
Diluted earnings per share $ 3.76 $ 3.70
v3.22.2.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]    
Deferred tax assets, increase $ 19.8  
Effective income tax rate 23.60% 24.50%
v3.22.2.2
Business Segments (Details)
 3 Months Ended
Sep. 30, 2022
Segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.22.2.2
Business Segments - Summarized Financial Information of Reportable Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Segment Reporting Information [Line Items]    
Revenues $ 1,605,759 $ 1,490,898
Net income 89,125 88,109
Domestic    
Segment Reporting Information [Line Items]    
Revenues 1,558,895 1,443,722
Net income 80,553 81,697
International    
Segment Reporting Information [Line Items]    
Revenues 46,864 47,176
Net income $ 8,572 $ 6,412
v3.22.2.2
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Level 2 - Interest Rate Swap - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Prepaid expenses and other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 1,952 $ 337
Other long-term assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 38,526 $ 19,184