CACI INTERNATIONAL INC /DE/, 10-Q filed on 1/28/2021
Quarterly Report
v3.20.4
Document And Entity Information - shares
 6 Months Ended
Dec. 31, 2020
Jan. 19, 2021
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   25,231,269
Document Type 10-Q  
Document Period End Date Dec. 31, 2020  
Amendment Flag false  
Document Fiscal Year Focus 2021  
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 1100 North Glebe Road  
Entity Address, City or Town Arlington  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 22201  
City Area Code 703  
Local Phone Number 841-7800  
Document Quarterly Report true  
Document Transition Report false  
v3.20.4
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]        
Revenue $ 1,468,711 $ 1,395,469 $ 2,928,217 $ 2,758,861
Operating costs and expenses:        
Costs of revenue 947,131 904,867 1,887,065 1,783,748
Indirect costs and selling expenses 347,807 352,448 702,811 710,040
Depreciation and amortization 32,234 27,967 62,378 54,729
Total operating costs and expenses 1,327,172 1,285,282 2,652,254 2,548,517
Income from operations 141,539 110,187 275,963 210,344
Interest expense and other, net 9,087 14,714 19,067 31,525
Income before income taxes 132,452 95,473 256,896 178,819
Income tax expense 25,974 16,278 56,774 31,647
Net income $ 106,478 $ 79,195 $ 200,122 $ 147,172
Basic earnings per share $ 4.22 $ 3.16 $ 7.95 $ 5.89
Diluted earnings per share $ 4.18 $ 3.11 $ 7.86 $ 5.78
Weighted-average basic shares outstanding 25,225 25,065 25,162 24,979
Weighted-average diluted shares outstanding 25,451 25,435 25,469 25,483
v3.20.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 106,478 $ 79,195 $ 200,122 $ 147,172
Other comprehensive income (loss):        
Foreign currency translation adjustment 13,713 11,215 21,506 5,907
Change in fair value of interest rate swap agreements, net of tax 2,644 3,735 4,896 (1,229)
Other comprehensive income (loss), net of tax 16,357 14,950 26,402 4,678
Comprehensive income $ 122,835 $ 94,145 $ 226,524 $ 151,850
v3.20.4
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Current assets:    
Cash and cash equivalents $ 102,114 $ 107,236
Accounts receivable, net 747,845 841,227
Prepaid expenses and other current assets 145,747 137,423
Total current assets 995,706 1,085,886
Goodwill 3,631,496 3,407,110
Intangible assets, net 510,101 [1] 406,885
Property and equipment, net 180,258 170,521
Operating lease right-of-use assets 374,310 330,767
Supplemental retirement savings plan assets 102,176 96,355
Accounts receivable, long-term 11,248 9,629
Other long-term assets 46,190 35,319
Total assets 5,851,485 5,542,472
Current liabilities:    
Current portion of long-term debt 46,920 46,920
Accounts payable 60,683 89,961
Accrued compensation and benefits 379,978 338,760
Other accrued expenses and current liabilities 285,223 293,518
Total current liabilities 772,804 769,159
Long-term debt, net of current portion 1,371,222 1,357,519
Supplemental retirement savings plan obligations, net of current portion 110,517 103,004
Deferred income taxes 208,957 213,096
Operating lease liabilities, noncurrent 376,039 309,680
Other long-term liabilities 127,667 128,704
Total liabilities 2,967,206 2,881,162
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; 42,663 shares issued and 25,231 outstanding at December 31, 2020 and 42,525 shares issued and 25,093 outstanding at June 30, 2020 4,266 4,253
Additional paid-in capital 570,176 573,744
Retained earnings 2,931,766 2,731,644
Accumulated other comprehensive loss (45,883) (72,285)
Treasury stock, at cost (17,432 and 17,432 shares, respectively) (576,181) (576,181)
Total CACI shareholders’ equity 2,884,144 2,661,175
Noncontrolling interest 135 135
Total shareholders’ equity 2,884,279 2,661,310
Total liabilities and shareholders’ equity $ 5,851,485 $ 5,542,472
[1] During the six months ended December 31, 2020, the Company removed $0.6 million in fully amortized intangible assets.
v3.20.4
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares
Dec. 31, 2020
Jun. 30, 2020
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 42,663,000 42,525,000
Common stock, shares outstanding 25,231,000 25,093,000
Treasury stock, shares at cost 17,432,000 17,432,000
v3.20.4
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 200,122 $ 147,172
Reconciliation of net income to net cash provided by operating activities:    
Depreciation and amortization 62,378 54,729
Amortization of deferred financing costs 1,163 1,176
Non-cash lease expense 38,436 35,850
Stock-based compensation expense 15,041 14,499
Deferred income taxes (6,311) 14,104
Changes in operating assets and liabilities, net of effect of business acquisitions:    
Accounts receivable, net 94,292 51,458
Prepaid expenses and other assets (20,605) (28,921)
Accounts payable and other accrued expenses (30,087) 8,121
Accrued compensation and benefits 39,461 1,529
Income taxes payable and receivable 11,107 (21,384)
Operating lease liabilities (37,916) (37,989)
Long-term liabilities 15,206 (3,319)
Net cash provided by operating activities 382,287 237,025
CASH FLOWS FROM INVESTING ACTIVITIES    
Capital expenditures (31,873) (41,035)
Cash paid for business acquisitions, net of cash acquired (355,127) (102,056)
Net cash used in investing activities (387,000) (143,091)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from borrowings under bank credit facilities 1,174,000 1,034,000
Principal payments made under bank credit facilities (1,161,460) (1,102,460)
Proceeds from employee stock purchase plans 4,664 3,665
Repurchases of common stock (4,420) (3,596)
Payment of taxes for equity transactions (18,649) (29,083)
Net cash used in financing activities (5,865) (97,474)
Effect of exchange rate changes on cash and cash equivalents 5,456 157
Net decrease in cash and cash equivalents (5,122) (3,383)
Cash and cash equivalents at beginning of period 107,236 72,028
Cash and cash equivalents at end of period 102,114 68,645
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for income taxes, net of refunds 50,903 38,048
Cash paid during the period for interest 17,210 28,410
Non-cash financing and investing activities:    
Landlord sponsored tenant improvement 13,853 759
Accrued capital expenditures $ 1,047 $ 4,910
v3.20.4
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, 2019 $ 2,371,466 $ 4,231 $ 576,277 $ 2,410,164 $ (43,156) $ (576,185) $ 2,371,331 $ 135
Beginning balance, shares at Jun. 30, 2019   42,314       17,434    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 147,172     147,172     147,172  
Stock-based compensation expense 14,499   14,499       14,499  
Tax withholdings on restricted share vestings (29,070) $ 19 (29,089)       (29,070)  
Tax withholdings on restricted share vestings (in shares)   191            
Change in fair value of interest rate swap agreements, net (1,229)       (1,229)   (1,229)  
Currency translation adjustment 5,907       5,907   5,907  
Repurchases of common stock (3,596)   (179)     $ (3,417) (3,596)  
Repurchases of common stock (in shares)           17    
Treasury stock issued under stock purchase plans 3,431   13     $ 3,418 3,431  
Treasury stock issued under stock purchase plans (in shares)           (17)    
Ending balance at Dec. 31, 2019 2,508,580 $ 4,250 561,521 2,557,336 (38,478) $ (576,184) 2,508,445 135
Ending balance, shares at Dec. 31, 2019   42,505       17,434    
Beginning balance at Sep. 30, 2019 2,425,251 $ 4,239 572,348 2,478,141 (53,428) $ (576,184) 2,425,116 135
Beginning balance, shares at Sep. 30, 2019   42,392       17,434    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 79,195     79,195     79,195  
Stock-based compensation expense 7,461   7,461       7,461  
Tax withholdings on restricted share vestings (18,210) $ 11 (18,221)       (18,210)  
Tax withholdings on restricted share vestings (in shares)   113            
Change in fair value of interest rate swap agreements, net 3,735       3,735   3,735  
Currency translation adjustment 11,215       11,215   11,215  
Repurchases of common stock (1,879)   (67)     $ (1,812) (1,879)  
Repurchases of common stock (in shares)           9    
Treasury stock issued under stock purchase plans 1,812         $ 1,812 1,812  
Treasury stock issued under stock purchase plans (in shares)           (9)    
Ending balance at Dec. 31, 2019 2,508,580 $ 4,250 561,521 2,557,336 (38,478) $ (576,184) 2,508,445 135
Ending balance, shares at Dec. 31, 2019   42,505       17,434    
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            
Change in fair value of interest rate swap agreements, net 4,896       4,896   4,896  
Currency translation adjustment 21,506       21,506   21,506  
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            
Change in fair value of interest rate swap agreements, net 2,644       2,644   2,644  
Currency translation adjustment 13,713       13,713   13,713  
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    
v3.20.4
Basis of Presentation
 6 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

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, 2020 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 11 and 18.

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, 2020.  The results of operations for the three and six months ended December 31, 2020 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year.
v3.20.4
Recent Accounting Pronouncements
 6 Months Ended
Dec. 31, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
Recent Accounting Pronouncements

2.

Recent Accounting Pronouncements

Accounting Standards Updates Adopted

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software (Subtopic 350-40). The Company adopted this standard on July 1, 2020 using the prospective method. The adoption of this standard did not have a material impact on our operating results, financial position or cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. The Company adopted this standard on July 1, 2020 using the modified retrospective method.  The adoption of this standard did not have a material impact on our operating results, financial position or cash flows.
v3.20.4
Acquisition
 6 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Acquisition

3.

Acquisition

On August 11, 2020, CACI completed the acquisition of Ascent Vision Technologies (AVT) for a purchase price of approximately $348.8 million.  AVT specializes in Electro-Optical Infrared payloads, On-Board Computer Vision Processing and counter-unmanned aircraft system (C-UAS) solutions.  The Company preliminarily recognized fair values of the assets acquired and liabilities assumed and allocated $211.0 million to goodwill and $133.8 million to intangible assets.  The goodwill of $211.0 million is largely attributable to the assembled workforce of AVT and expected synergies between the Company and AVT.  The intangible assets consist of customer relationships of $65.7 million and technology of $68.1 million.  The fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over approximately 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 $319.7 million is deductible for income tax purposes.
v3.20.4
Intangible Assets
 6 Months Ended
Dec. 31, 2020
Finite Lived Intangible Assets Net [Abstract]  
Intangible Assets

4.

Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

December 31,

 

 

June 30,

 

 

 

2020 (1)

 

 

2020

 

Intangible assets:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

639,294

 

 

$

570,562

 

Acquired technologies

 

 

198,243

 

 

 

129,925

 

Other

 

 

7

 

 

 

8

 

Intangible assets

 

 

837,544

 

 

 

700,495

 

Less accumulated amortization:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(293,304

)

 

 

(271,708

)

Acquired technologies

 

 

(34,137

)

 

 

(21,900

)

Other

 

 

(2

)

 

 

(2

)

Less accumulated amortization

 

 

(327,443

)

 

 

(293,610

)

Total intangible assets, net

 

$

510,101

 

 

$

406,885

 

__________________

 

(1)

During the six months ended December 31, 2020, the Company removed $0.6 million in fully amortized intangible assets.

Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to twenty years.  The weighted-average period of amortization for all customer contracts and related customer relationships as of December 31, 2020 is 17.7 years, and the weighted-average remaining period of amortization is 14.6 years.  The weighted-average period of amortization for acquired technologies as of December 31, 2020 is 10.5 years, and the weighted-average remaining period of amortization is 9.2 years.

Expected amortization expense for the remainder of the fiscal year ending June 30, 2021, and for each of the fiscal years thereafter, is as follows (in thousands):

 

Fiscal year ending June 30,

 

Amount

 

2021 (six months)

 

$

33,878

 

2022

 

 

68,590

 

2023

 

 

65,160

 

2024

 

 

57,809

 

2025

 

 

50,551

 

Thereafter

 

 

234,113

 

Total intangible assets, net

 

$

510,101

 

 
v3.20.4
Goodwill
 6 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

5.

Goodwill

The changes in the carrying amount of goodwill for the six months ended December 31, 2020 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2020

 

$

3,279,856

 

 

$

127,254

 

 

$

3,407,110

 

Goodwill acquired (1)

 

 

211,004

 

 

 

(1,478

)

 

 

209,526

 

Foreign currency translation

 

 

1,391

 

 

 

13,469

 

 

 

14,860

 

Balance at December 31, 2020

 

$

3,492,251

 

 

$

139,245

 

 

$

3,631,496

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.

 
v3.20.4
Revenue Recognition
 6 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

6.

Revenue Recognition

We disaggregate our revenue arrangements by contract type, customer, whether we perform on the contract as the prime or subcontractor, and whether the solution provided is primarily expertise or technology as defined herein.  We believe that these categories allow for a better understanding of the nature, amount, timing, and uncertainty of revenue and cash flows arising from our contracts.

Revenue by Contract Type

The Company generated revenue on our cost-plus-fee, fixed-price, and time-and-materials contracts as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

818,477

 

 

$

—

 

 

$

818,477

 

 

$

1,566,191

 

 

$

—

 

 

$

1,566,191

 

Fixed-price

 

 

361,016

 

 

 

27,851

 

 

 

388,867

 

 

 

752,552

 

 

 

54,291

 

 

 

806,843

 

Time-and-materials

 

 

174,300

 

 

 

13,825

 

 

 

188,125

 

 

 

359,823

 

 

 

26,004

 

 

 

385,827

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 


 

Customer Group

The Company generated revenue from our primary customer groups as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

990,381

 

 

$

—

 

 

$

990,381

 

 

$

1,928,021

 

 

$

—

 

 

$

1,928,021

 

Federal Civilian agencies

 

 

342,029

 

 

 

—

 

 

 

342,029

 

 

 

706,022

 

 

 

—

 

 

 

706,022

 

Commercial and other

 

 

21,383

 

 

 

41,676

 

 

 

63,059

 

 

 

44,523

 

 

 

80,295

 

 

 

124,818

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

Prime or Subcontractor

The Company generated revenue as either the prime or subcontractor as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,227,317

 

 

$

39,338

 

 

$

1,266,655

 

 

$

2,424,951

 

 

$

76,809

 

 

$

2,501,760

 

Subcontractor

 

 

126,476

 

 

 

2,338

 

 

 

128,814

 

 

 

253,615

 

 

 

3,486

 

 

 

257,101

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

 


 

Expertise or Technology

The Company generated revenue by providing expertise or technology solutions to our customers as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

726,476

 

 

$

15,558

 

 

$

742,034

 

 

$

1,435,501

 

 

$

28,886

 

 

$

1,464,387

 

Technology

 

 

627,317

 

 

 

26,118

 

 

 

653,435

 

 

 

1,243,065

 

 

 

51,409

 

 

 

1,294,474

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

 

Significant Estimates

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

Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded.  For the three and six months ended December 31, 2020, we recognized an increase to income before income taxes of $18.1 million ($0.53 per diluted share) and $25.9 million ($0.75 per diluted share), respectively, compared with $17.2 million ($0.50 per diluted share) and $23.8 million ($0.69 per diluted share) for the three and six months ended December 31, 2019, respectively, from EAC adjustments.  The Company used its statutory tax rate when calculating the impact to diluted earnings per share.

Revenue recognized from previously satisfied performance obligations was $1.2 million and $1.6 million for the three and six months ended December 31, 2020, respectively, compared with $9.8 million and $10.2 million for the three and six months ended December 31, 2019, respectively.  The change in revenue generally relates to final true-up adjustments to our estimated award or incentive fees in the period in which we receive the customer’s final performance score or when we can determine that more objective, contractually-defined criteria have been fully satisfied.  

Remaining Performance Obligations

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

The Company continues to monitor this balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations.  Based on this analysis, an adjustment to the period end balance may be required.  Our remaining performance obligations balance as of December 31, 2020 was $6.5 billion.

The Company expects to recognize approximately 90 percent of our remaining performance obligations balance as revenue over the next twelve months and the remaining 10 percent thereafter.
v3.20.4
Accounts Receivable
 6 Months Ended
Dec. 31, 2020
Accounts Receivable Net [Abstract]  
Accounts Receivable

7.

Accounts Receivable

 

 

 

December 31,

 

 

June 30,

 

 

 

2020

 

 

2020

 

Billed and billable receivables

 

$

668,563

 

 

$

779,339

 

Unbilled receivables

 

 

79,282

 

 

 

61,888

 

Total accounts receivable, net – current

 

 

747,845

 

 

 

841,227

 

Unbilled receivables, long-term

 

 

11,248

 

 

 

9,629

 

Total accounts receivable

 

$

759,093

 

 

$

850,856

 

 

Accounts receivable are recorded at amounts earned less an allowance for doubtful accounts.  The Company periodically reassesses its allowance for doubtful accounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract specific factors.  In addition, the Company monitors its exposure to customer credit risk for its financial assets, including its trade receivables and contract balances.

The Company’s allowance for doubtful accounts was $2.8 million and $3.0 million at December 31, 2020 and June 30, 2020, respectively.
v3.20.4
Contract Balances
 6 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Contract Balances

8.

Contract Balances

Contract assets are primarily comprised of unbilled receivables in which revenue has been recognized but our right to consideration is conditional on factors other than the passage of time.  Contract assets exclude billed and billable receivables.

The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins.  These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance.  Contract assets are not stated above their net realizable value.

Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation.  The advance payment is subsequently recognized into revenue as the performance obligation is satisfied.

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

 

 

 

 

 

December 31,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2020

 

 

2020

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

79,282

 

 

$

61,888

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

3,692

 

 

 

3,492

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

11,248

 

 

 

9,629

 

Costs to obtain – long-term

 

Other long-term assets

 

 

8,658

 

 

 

7,708

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other

   contract liabilities – short-term

 

Other accrued expenses and current

   liabilities

 

 

(68,773

)

 

 

(57,082

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other

   contract liabilities – long-term

 

Other long-term liabilities

 

 

(6,585

)

 

 

(6,507

)

Net contract assets (liabilities)

 

 

 

$

27,522

 

 

$

19,128

 

 

During the three and six months ended December 31, 2020, we recognized $19.4 million and $52.9 million of revenue, respectively, compared with $12.1 million and $38.7 million of revenue for the three and six months ended December 31, 2019, respectively, that was included in a previously recorded contract liability as of the beginning of the period.
v3.20.4
Inventories
 6 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories

9.

Inventories

Inventories consisted of the following (in thousands):

 

 

 

 

December 31,

 

 

June 30,

 

 

 

 

2020

 

 

2020

 

Materials, purchased parts and supplies

 

 

$

50,120

 

 

$

36,692

 

Work in process

 

 

 

11,307

 

 

 

10,867

 

Finished goods

 

 

 

16,491

 

 

 

17,608

 

Total

 

 

$

77,918

 

 

$

65,167

 

Inventories are stated at the lower of cost (average cost or first-in, first-out) or net realizable value and are included in prepaid expenses and other current assets on the accompanying consolidated balance sheets.  The Company periodically assesses its current inventory balances and records a provision for damaged, deteriorated, or obsolete inventory based on historical patterns and forecasted sales.
v3.20.4
Sales of Receivables
 6 Months Ended
Dec. 31, 2020
Transfers And Servicing Of Financial Assets [Abstract]  
Sales of Receivables

10.

Sales of Receivables

On December 24, 2020, 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 23, 2021.  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, 2020.  Proceeds from the sold receivables are reflected in our operating cash flows on the statement of cash flows.

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the Six Months Ended

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Beginning balance:

 

$

200,000

 

 

$

192,527

 

Sales of receivables

 

 

1,354,577

 

 

 

1,144,293

 

Cash collections

 

 

(1,354,819

)

 

 

(1,139,382

)

Outstanding balance sold to Purchaser: (1)

 

 

199,758

 

 

 

197,438

 

Cash collected, not remitted to Purchaser (2)

 

 

(43,304

)

 

 

(53,904

)

Remaining sold receivables

 

$

156,454

 

 

$

143,534

 

 

 

(1)

For the six months ended December 31, 2020 and 2019, the Company recorded a net cash outflow of $0.2 million and a net cash inflow of $4.9 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, 2020 and 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.20.4
Long-term Debt
 6 Months Ended
Dec. 31, 2020
Long Term Debt [Abstract]  
Long-term Debt

11.

Long-term Debt 

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

 

 

 

December 31,

 

 

June 30,

 

 

 

2020

 

 

2020

 

Bank credit facility – term loans

 

$

821,095

 

 

$

844,555

 

Bank credit facility – revolver loans

 

 

605,000

 

 

 

569,000

 

Principal amount of long-term debt

 

 

1,426,095

 

 

 

1,413,555

 

Less unamortized discounts and debt issuance costs

 

 

(7,953

)

 

 

(9,116

)

Total long-term debt

 

 

1,418,142

 

 

 

1,404,439

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,371,222

 

 

$

1,357,519

 

Bank Credit Facility

The Company has a $2,438.4 million credit facility (the Credit Facility), which consists of an $1,500.0 million revolving credit facility (the Revolving Facility) and a $938.4 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 $1,500.0 million. As of December 31, 2020, the Company had $605.0 million outstanding under the Revolving Facility and no borrowings on the swing line.  The Company pays a quarterly facility fee for the unused portion of the Revolving Facility.  

The Term Loan is a five-year secured facility under which principal payments are due in quarterly installments of $11.7 million until the balance is due in full on June 30, 2024. As of December 31, 2020, the Company had $821.1 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, 2020, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 2.49 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, 2020, the Company was in compliance with all of the financial covenants.  A majority of the Company’s assets serve as collateral under the Credit Facility.

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

The aggregate maturities of long-term debt at December 31, 2020 are as follows (in thousands):

 

Twelve months ending December 31,

 

 

 

 

2021

 

$

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,285,335

 

Principal amount of long-term debt

 

 

1,426,095

 

Less unamortized discounts and debt issuance costs

 

 

(7,953

)

Total long-term debt

 

$

1,418,142

 

 

 

Cash Flow Hedges

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

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2020 and 2019 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gain (loss) recognized in other comprehensive income

 

$

(908

)

 

$

3,557

 

 

$

(2,188

)

 

$

(639

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

3,552

 

 

 

178

 

 

 

7,084

 

 

 

(590

)

Net current period other comprehensive income (loss)

 

$

2,644

 

 

$

3,735

 

 

$

4,896

 

 

$

(1,229

)

 
v3.20.4
Leases
 6 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

12.

Leases

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

 

 

 

December 31, 2020

 

 

June 30, 2020

 

Operating lease right-of-use assets

 

$

374,310

 

 

$

330,767

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, current

 

 

60,175

 

 

 

67,549

 

Operating lease liabilities, noncurrent

 

 

376,039

 

 

 

309,680

 

 

 

$

436,214

 

 

$

377,229

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating lease cost

 

$

22,615

 

 

$

21,382

 

 

$

44,587

 

 

$

42,588

 

Short-term and variable lease cost

 

 

3,611

 

 

 

3,623

 

 

 

7,279

 

 

 

6,993

 

Sublease income

 

 

(86

)

 

 

(438

)

 

 

(212

)

 

 

(902

)

Total lease cost

 

$

26,140

 

 

$

24,567

 

 

$

51,654

 

 

$

48,679

 

 

 

The Company’s future minimum lease payments under non-cancelable operating leases for the remainder of the fiscal year ending June 30, 2021, and for each of the fiscal years thereafter, are as follows (in thousands):  

 

Fiscal year ending June 30,

 

 

 

 

2021 (six months)

 

$

33,167

 

2022

 

 

77,286

 

2023

 

 

73,707

 

2024

 

 

66,459

 

2025

 

 

58,069

 

Thereafter

 

 

174,510

 

Total undiscounted lease payments

 

 

483,198

 

Less:  imputed interest

 

 

(46,984

)

Total discounted lease liabilities

 

$

436,214

 

The weighted-average remaining lease term (in years) and weighted-average discount rate was 7.09 years and 2.85 percent, respectively.

Cash paid for operating leases was $44.2 million for the six months ended December 31, 2020.  During the six months ended December 31, 2020 operating lease liabilities arising from obtaining new ROU assets was $81.8 million, which includes all noncash changes arising from new or remeasured operating lease arrangements.
v3.20.4
Commitments and Contingencies
 6 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

13.

Commitments and Contingencies

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

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.  We are still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe our reserves for such are adequate. In the opinion of management, adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues are identified, discussed and settled.
v3.20.4
Stock-Based Compensation
 6 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

14.

Stock-Based Compensation

For the six months ended December 31, 2020 and 2019, the Company recognized $15.0 million and $14.5 million of stock-based compensation, respectively, related to restricted stock units (RSUs).  The stock-based compensation was included in indirect costs and selling expenses in the consolidated statements of operations.

Activity related to RSUs during the six months ended December 31, 2020 is as follows:

 

 

 

RSUs

 

Unvested at June 30, 2020

 

 

501,923

 

Granted

 

 

184,319

 

Vested

 

 

(223,180

)

Forfeited

 

 

(17,207

)

Unvested at December 31, 2020

 

 

445,855

 

 

As of December 31, 2020, there was $54.4 million of total unrecognized compensation costs related to RSUs scheduled to be recognized over a weighted-average period of 2.8 years.
v3.20.4
Earnings Per Share
 6 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

15.

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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

106,478

 

 

$

79,195

 

 

$

200,122

 

 

$

147,172

 

Weighted-average number of basic shares outstanding

   during the period

 

 

25,225

 

 

 

25,065

 

 

 

25,162

 

 

 

24,979

 

Dilutive effect of RSUs after application of treasury

   stock method

 

 

226

 

 

 

370

 

 

 

307

 

 

 

504

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,451

 

 

 

25,435

 

 

 

25,469

 

 

 

25,483

 

Basic earnings per share

 

$

4.22

 

 

$

3.16

 

 

$

7.95

 

 

$

5.89

 

Diluted earnings per share

 

$

4.18

 

 

$

3.11

 

 

$

7.86

 

 

$

5.78

 

 
v3.20.4
Income Taxes
 6 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

16.

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 year 2016.  The Company does not expect resolution of this examination 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, 2020 and June 30, 2020 was $9.5 million and $8.8 million, respectively. The $9.5 million unrecognized tax benefit at December 31, 2020, if recognized, would positively impact the Company’s effective tax rate.

The Company’s effective tax rate for the three and six months ended December 31, 2020 and 2019 are reflected below (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Income tax expense

 

$

25,974

 

 

$

16,278

 

 

$

56,774

 

 

$

31,647

 

Effective income tax rate

 

 

19.6

%

 

 

17.1

%

 

 

22.1

%

 

 

17.7

%

The effective income tax rate was 19.6 percent and 22.1 percent for the three and six months ended December 31, 2020, respectively, compared with 17.1 percent and 17.7 percent, respectively, for the same periods last year.  For both comparative reporting periods, the increase in the effective tax rate was primarily due to a decrease in excess tax benefits related to employee stock-based compensation, partially offset by favorable changes related to the value of assets invested in COLI policies
v3.20.4
Business Segment Information
 6 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segment Information

17.

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):

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

Net income

 

 

99,921

 

 

 

6,557

 

 

 

106,478

 

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

Net income

 

 

74,684

 

 

 

4,511

 

 

 

79,195

 

Six Months Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Net income

 

 

188,058

 

 

 

12,064

 

 

 

200,122

 

Six Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

Net income

 

 

138,895

 

 

 

8,277

 

 

 

147,172

 

 
v3.20.4
Fair Value of Financial Instruments
 6 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

18.

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, 2020 and June 30, 2020, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

December 31,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2020

 

 

2020

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

847

 

 

$

—

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

35,678

 

 

$

43,168

 

Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss.
v3.20.4
Intangible Assets (Tables)
 6 Months Ended
Dec. 31, 2020
Finite Lived Intangible Assets Net [Abstract]  
Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

December 31,

 

 

June 30,

 

 

 

2020 (1)

 

 

2020

 

Intangible assets:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

639,294

 

 

$

570,562

 

Acquired technologies

 

 

198,243

 

 

 

129,925

 

Other

 

 

7

 

 

 

8

 

Intangible assets

 

 

837,544

 

 

 

700,495

 

Less accumulated amortization:

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(293,304

)

 

 

(271,708

)

Acquired technologies

 

 

(34,137

)

 

 

(21,900

)

Other

 

 

(2

)

 

 

(2

)

Less accumulated amortization

 

 

(327,443

)

 

 

(293,610

)

Total intangible assets, net

 

$

510,101

 

 

$

406,885

 

__________________

 

(1)

During the six months ended December 31, 2020, the Company removed $0.6 million in fully amortized intangible assets.
Expected Amortization Expense

Expected amortization expense for the remainder of the fiscal year ending June 30, 2021, and for each of the fiscal years thereafter, is as follows (in thousands):

 

Fiscal year ending June 30,

 

Amount

 

2021 (six months)

 

$

33,878

 

2022

 

 

68,590

 

2023

 

 

65,160

 

2024

 

 

57,809

 

2025

 

 

50,551

 

Thereafter

 

 

234,113

 

Total intangible assets, net

 

$

510,101

 
v3.20.4
Goodwill (Tables)
 6 Months Ended
Dec. 31, 2020
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, 2020 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2020

 

$

3,279,856

 

 

$

127,254

 

 

$

3,407,110

 

Goodwill acquired (1)

 

 

211,004

 

 

 

(1,478

)

 

 

209,526

 

Foreign currency translation

 

 

1,391

 

 

 

13,469

 

 

 

14,860

 

Balance at December 31, 2020

 

$

3,492,251

 

 

$

139,245

 

 

$

3,631,496

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.20.4
Revenue Recognition (Tables)
 6 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor

Revenue by Contract Type

The Company generated revenue on our cost-plus-fee, fixed-price, and time-and-materials contracts as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

818,477

 

 

$

—

 

 

$

818,477

 

 

$

1,566,191

 

 

$

—

 

 

$

1,566,191

 

Fixed-price

 

 

361,016

 

 

 

27,851

 

 

 

388,867

 

 

 

752,552

 

 

 

54,291

 

 

 

806,843

 

Time-and-materials

 

 

174,300

 

 

 

13,825

 

 

 

188,125

 

 

 

359,823

 

 

 

26,004

 

 

 

385,827

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 


 

Customer Group

The Company generated revenue from our primary customer groups as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

990,381

 

 

$

—

 

 

$

990,381

 

 

$

1,928,021

 

 

$

—

 

 

$

1,928,021

 

Federal Civilian agencies

 

 

342,029

 

 

 

—

 

 

 

342,029

 

 

 

706,022

 

 

 

—

 

 

 

706,022

 

Commercial and other

 

 

21,383

 

 

 

41,676

 

 

 

63,059

 

 

 

44,523

 

 

 

80,295

 

 

 

124,818

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

Prime or Subcontractor

The Company generated revenue as either the prime or subcontractor as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

1,227,317

 

 

$

39,338

 

 

$

1,266,655

 

 

$

2,424,951

 

 

$

76,809

 

 

$

2,501,760

 

Subcontractor

 

 

126,476

 

 

 

2,338

 

 

 

128,814

 

 

 

253,615

 

 

 

3,486

 

 

 

257,101

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

 


 

Expertise or Technology

The Company generated revenue by providing expertise or technology solutions to our customers as follows during the three and six months ended December 31, 2020 and 2019 (in thousands):

 

 

 

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

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

 

Domestic

 

 

International

 

 

Total

 

Expertise

 

$

726,476

 

 

$

15,558

 

 

$

742,034

 

 

$

1,435,501

 

 

$

28,886

 

 

$

1,464,387

 

Technology

 

 

627,317

 

 

 

26,118

 

 

 

653,435

 

 

 

1,243,065

 

 

 

51,409

 

 

 

1,294,474

 

Total

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

 
v3.20.4
Accounts Receivable (Tables)
 6 Months Ended
Dec. 31, 2020
Accounts Receivable Net [Abstract]  
Schedule of Total Accounts Receivable

 

 

 

December 31,

 

 

June 30,

 

 

 

2020

 

 

2020

 

Billed and billable receivables

 

$

668,563

 

 

$

779,339

 

Unbilled receivables

 

 

79,282

 

 

 

61,888

 

Total accounts receivable, net – current

 

 

747,845

 

 

 

841,227

 

Unbilled receivables, long-term

 

 

11,248

 

 

 

9,629

 

Total accounts receivable

 

$

759,093

 

 

$

850,856

 
v3.20.4
Contract Balances (Tables)
 6 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Contract Assets and Liabilities

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

 

 

 

 

 

December 31,

 

 

June 30,

 

Description of Contract Related Balance

 

Financial Statement Classification

 

2020

 

 

2020

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

79,282

 

 

$

61,888

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

3,692

 

 

 

3,492

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

11,248

 

 

 

9,629

 

Costs to obtain – long-term

 

Other long-term assets

 

 

8,658

 

 

 

7,708

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other

   contract liabilities – short-term

 

Other accrued expenses and current

   liabilities

 

 

(68,773

)

 

 

(57,082

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other

   contract liabilities – long-term

 

Other long-term liabilities

 

 

(6,585

)

 

 

(6,507

)

Net contract assets (liabilities)

 

 

 

$

27,522

 

 

$

19,128

 

 
v3.20.4
Inventories (Tables)
 6 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Components of Inventories

Inventories consisted of the following (in thousands):

 

 

 

 

December 31,

 

 

June 30,

 

 

 

 

2020

 

 

2020

 

Materials, purchased parts and supplies

 

 

$

50,120

 

 

$

36,692

 

Work in process

 

 

 

11,307

 

 

 

10,867

 

Finished goods

 

 

 

16,491

 

 

 

17,608

 

Total

 

 

$

77,918

 

 

$

65,167

 
v3.20.4
Sales of Receivables (Tables)
 6 Months Ended
Dec. 31, 2020
Transfers And Servicing Of Financial Assets [Abstract]  
Summary of MARPA Activity

MARPA activity consisted of the following (in thousands):

 

 

 

As of and for the Six Months Ended

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Beginning balance:

 

$

200,000

 

 

$

192,527

 

Sales of receivables

 

 

1,354,577

 

 

 

1,144,293

 

Cash collections

 

 

(1,354,819

)

 

 

(1,139,382

)

Outstanding balance sold to Purchaser: (1)

 

 

199,758

 

 

 

197,438

 

Cash collected, not remitted to Purchaser (2)

 

 

(43,304

)

 

 

(53,904

)

Remaining sold receivables

 

$

156,454

 

 

$

143,534

 

 

 

(1)

For the six months ended December 31, 2020 and 2019, the Company recorded a net cash outflow of $0.2 million and a net cash inflow of $4.9 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, 2020 and 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.20.4
Long-term Debt (Tables)
 6 Months Ended
Dec. 31, 2020
Long Term Debt [Abstract]  
Schedule of Long-term Debt

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

 

 

 

December 31,

 

 

June 30,

 

 

 

2020

 

 

2020

 

Bank credit facility – term loans

 

$

821,095

 

 

$

844,555

 

Bank credit facility – revolver loans

 

 

605,000

 

 

 

569,000

 

Principal amount of long-term debt

 

 

1,426,095

 

 

 

1,413,555

 

Less unamortized discounts and debt issuance costs

 

 

(7,953

)

 

 

(9,116

)

Total long-term debt

 

 

1,418,142

 

 

 

1,404,439

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,371,222

 

 

$

1,357,519

 
Aggregate Maturities of Long-term Debt

The aggregate maturities of long-term debt at December 31, 2020 are as follows (in thousands):

 

Twelve months ending December 31,

 

 

 

 

2021

 

$

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,285,335

 

Principal amount of long-term debt

 

 

1,426,095

 

Less unamortized discounts and debt issuance costs

 

 

(7,953

)

Total long-term debt

 

$

1,418,142

 

 

 
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, 2020 and 2019 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gain (loss) recognized in other comprehensive income

 

$

(908

)

 

$

3,557

 

 

$

(2,188

)

 

$

(639

)

Amounts reclassified to earnings from accumulated other

   comprehensive loss

 

 

3,552

 

 

 

178

 

 

 

7,084

 

 

 

(590

)

Net current period other comprehensive income (loss)

 

$

2,644

 

 

$

3,735

 

 

$

4,896

 

 

$

(1,229

)

 
v3.20.4
Leases (Tables)
 6 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Summary of Lease Balances Lease balances in our consolidated balance sheet are as follows (in thousands):

 

 

 

December 31, 2020

 

 

June 30, 2020

 

Operating lease right-of-use assets

 

$

374,310

 

 

$

330,767

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, current

 

 

60,175

 

 

 

67,549

 

Operating lease liabilities, noncurrent

 

 

376,039

 

 

 

309,680

 

 

 

$

436,214

 

 

$

377,229

 
Summary of Lease Costs

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating lease cost

 

$

22,615

 

 

$

21,382

 

 

$

44,587

 

 

$

42,588

 

Short-term and variable lease cost

 

 

3,611

 

 

 

3,623

 

 

 

7,279

 

 

 

6,993

 

Sublease income

 

 

(86

)

 

 

(438

)

 

 

(212

)

 

 

(902

)

Total lease cost

 

$

26,140

 

 

$

24,567

 

 

$

51,654

 

 

$

48,679

 

 

 
Schedule of Future Minimum Operating Lease Payments

The Company’s future minimum lease payments under non-cancelable operating leases for the remainder of the fiscal year ending June 30, 2021, and for each of the fiscal years thereafter, are as follows (in thousands):  

 

Fiscal year ending June 30,

 

 

 

 

2021 (six months)

 

$

33,167

 

2022

 

 

77,286

 

2023

 

 

73,707

 

2024

 

 

66,459

 

2025

 

 

58,069

 

Thereafter

 

 

174,510

 

Total undiscounted lease payments

 

 

483,198

 

Less:  imputed interest

 

 

(46,984

)

Total discounted lease liabilities

 

$

436,214

 
v3.20.4
Stock-Based Compensation (Tables)
 6 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Activity Related to RSUs

Activity related to RSUs during the six months ended December 31, 2020 is as follows:

 

 

 

RSUs

 

Unvested at June 30, 2020

 

 

501,923

 

Granted

 

 

184,319

 

Vested

 

 

(223,180

)

Forfeited

 

 

(17,207

)

Unvested at December 31, 2020

 

 

445,855

 

 
v3.20.4
Earnings Per Share (Tables)
 6 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Calculation of basic and diluted earnings per share

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

106,478

 

 

$

79,195

 

 

$

200,122

 

 

$

147,172

 

Weighted-average number of basic shares outstanding

   during the period

 

 

25,225

 

 

 

25,065

 

 

 

25,162

 

 

 

24,979

 

Dilutive effect of RSUs after application of treasury

   stock method

 

 

226

 

 

 

370

 

 

 

307

 

 

 

504

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,451

 

 

 

25,435

 

 

 

25,469

 

 

 

25,483

 

Basic earnings per share

 

$

4.22

 

 

$

3.16

 

 

$

7.95

 

 

$

5.89

 

Diluted earnings per share

 

$

4.18

 

 

$

3.11

 

 

$

7.86

 

 

$

5.78

 

 
v3.20.4
Income Taxes (Tables)
 6 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate for the three and six months ended December 31, 2020 and 2019 are reflected below (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Income tax expense

 

$

25,974

 

 

$

16,278

 

 

$

56,774

 

 

$

31,647

 

Effective income tax rate

 

 

19.6

%

 

 

17.1

%

 

 

22.1

%

 

 

17.7

%
v3.20.4
Business Segment Information (Tables)
 6 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Summarized Financial Information of Reportable Segments Summarized financial information for the Company’s reportable segments is as follows (in thousands):

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

1,427,060

 

 

$

41,651

 

 

$

1,468,711

 

Net income

 

 

99,921

 

 

 

6,557

 

 

 

106,478

 

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

1,353,793

 

 

$

41,676

 

 

$

1,395,469

 

Net income

 

 

74,684

 

 

 

4,511

 

 

 

79,195

 

Six Months Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

2,845,247

 

 

$

82,970

 

 

$

2,928,217

 

Net income

 

 

188,058

 

 

 

12,064

 

 

 

200,122

 

Six Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

2,678,566

 

 

$

80,295

 

 

$

2,758,861

 

Net income

 

 

138,895

 

 

 

8,277

 

 

 

147,172

 

 
v3.20.4
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and June 30, 2020, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

December 31,

 

 

June 30,

 

 

 

Financial Statement

 

Fair Value

 

2020

 

 

2020

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

847

 

 

$

—

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

35,678

 

 

$

43,168

 
v3.20.4
Acquisition (Detail Textual) - USD ($)
$ in Thousands
 6 Months Ended
Aug. 11, 2020
Dec. 31, 2020
Jun. 30, 2020
Business Acquisition [Line Items]      
Goodwill   $ 3,631,496 $ 3,407,110
Customer contracts and related customer relationships      
Business Acquisition [Line Items]      
Amortization period of acquired intangible assets   17 years 8 months 12 days  
Technology      
Business Acquisition [Line Items]      
Amortization period of acquired intangible assets   14 years 7 months 6 days  
AVT      
Business Acquisition [Line Items]      
Purchase consideration $ 348,800    
Acquisition date Aug. 11, 2020    
Goodwill $ 211,000    
Identifiable intangible assets 133,800    
Amount of tax deductible goodwill and intangibles 319,700    
AVT | Customer contracts and related customer relationships      
Business Acquisition [Line Items]      
Identifiable intangible assets $ 65,700    
Amortization period of acquired intangible assets 20 years    
AVT | Technology      
Business Acquisition [Line Items]      
Identifiable intangible assets $ 68,100    
Amortization period of acquired intangible assets 10 years    
v3.20.4
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
 [1]
Jun. 30, 2020
Finite Lived Intangible Assets [Line Items]    
Intangible assets $ 837,544 $ 700,495
Less accumulated amortization (327,443) (293,610)
Total intangible assets, net 510,101 406,885
Customer contracts and related customer relationships    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 639,294 570,562
Less accumulated amortization (293,304) (271,708)
Acquired technologies    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 198,243 129,925
Less accumulated amortization (34,137) (21,900)
Other    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 7 8
Less accumulated amortization $ (2) $ (2)
[1] During the six months ended December 31, 2020, the Company removed $0.6 million in fully amortized intangible assets.
v3.20.4
Intangible Assets - Summary of Intangible Assets (Parenthetical) (Detail)
$ in Millions
 6 Months Ended
Dec. 31, 2020
USD ($)
Finite Lived Intangible Assets Net [Abstract]  
Removal of fully amortized intangible assets $ 0.6
v3.20.4
Intangible Assets (Detail Textual)
 6 Months Ended
Dec. 31, 2020
Minimum  
Finite Lived Intangible Assets [Line Items]  
Intangible asset amortization period 1 year
Maximum  
Finite Lived Intangible Assets [Line Items]  
Intangible asset amortization period 20 years
Customer contracts and related customer relationships  
Finite Lived Intangible Assets [Line Items]  
Weighted-average amortization period 17 years 8 months 12 days
Weighted-average remaining amortization period 10 years 6 months
Acquired technologies  
Finite Lived Intangible Assets [Line Items]  
Weighted-average amortization period 14 years 7 months 6 days
Weighted-average remaining amortization period 9 years 2 months 12 days
v3.20.4
Intangible Assets - Expected Amortization Expense (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Finite Lived Intangible Assets Net [Abstract]    
2021 (six months) $ 33,878  
2022 68,590  
2023 65,160  
2024 57,809  
2025 50,551  
Thereafter 234,113  
Total intangible assets, net $ 510,101 [1] $ 406,885
[1] During the six months ended December 31, 2020, the Company removed $0.6 million in fully amortized intangible assets.
v3.20.4
Goodwill - Roll Forward of Goodwill (Detail)
$ in Thousands
 6 Months Ended
Dec. 31, 2020
USD ($)
Goodwill [Roll Forward]  
Balance $ 3,407,110
Goodwill acquired 209,526 [1]
Foreign currency translation 14,860
Balance 3,631,496
Domestic  
Goodwill [Roll Forward]  
Balance 3,279,856
Goodwill acquired 211,004 [1]
Foreign currency translation 1,391
Balance 3,492,251
International  
Goodwill [Roll Forward]  
Balance 127,254
Goodwill acquired (1,478) [1]
Foreign currency translation 13,469
Balance $ 139,245
[1] Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.20.4
Revenue Recognition - Disaggregation of Revenue (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Disaggregation Of Revenue [Line Items]        
Revenue $ 1,468,711 $ 1,395,469 $ 2,928,217 $ 2,758,861
Expertise        
Disaggregation Of Revenue [Line Items]        
Revenue 732,276 742,034 1,472,959 1,464,387
Technology        
Disaggregation Of Revenue [Line Items]        
Revenue 736,435 653,435 1,455,258 1,294,474
Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenue 1,327,025 1,266,655 2,653,863 2,501,760
Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenue 141,686 128,814 274,354 257,101
Department of Defense        
Disaggregation Of Revenue [Line Items]        
Revenue 1,012,875 990,381 2,017,070 1,928,021
Federal civilian agencies        
Disaggregation Of Revenue [Line Items]        
Revenue 390,034 342,029 780,213 706,022
Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenue 65,802 63,059 130,934 124,818
Cost-plus-fee        
Disaggregation Of Revenue [Line Items]        
Revenue 843,584 818,477 1,667,193 1,566,191
Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenue 440,821 388,867 874,635 806,843
Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenue 184,306 188,125 386,389 385,827
Domestic        
Disaggregation Of Revenue [Line Items]        
Revenue 1,427,060 1,353,793 2,845,247 2,678,566
Domestic | Expertise        
Disaggregation Of Revenue [Line Items]        
Revenue 715,812 726,476 1,439,009 1,435,501
Domestic | Technology        
Disaggregation Of Revenue [Line Items]        
Revenue 711,248 627,317 1,406,238 1,243,065
Domestic | Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenue 1,288,533 1,227,317 2,577,238 2,424,951
Domestic | Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenue 138,527 126,476 268,009 253,615
Domestic | Department of Defense        
Disaggregation Of Revenue [Line Items]        
Revenue 1,012,875 990,381 2,017,070 1,928,021
Domestic | Federal civilian agencies        
Disaggregation Of Revenue [Line Items]        
Revenue 390,034 342,029 780,213 706,022
Domestic | Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenue 24,151 21,383 47,964 44,523
Domestic | Cost-plus-fee        
Disaggregation Of Revenue [Line Items]        
Revenue 843,584 818,477 1,667,193 1,566,191
Domestic | Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenue 411,114 361,016 820,698 752,552
Domestic | Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenue 172,362 174,300 357,356 359,823
International        
Disaggregation Of Revenue [Line Items]        
Revenue 41,651 41,676 82,970 80,295
International | Expertise        
Disaggregation Of Revenue [Line Items]        
Revenue 16,464 15,558 33,950 28,886
International | Technology        
Disaggregation Of Revenue [Line Items]        
Revenue 25,187 26,118 49,020 51,409
International | Prime contractor        
Disaggregation Of Revenue [Line Items]        
Revenue 38,492 39,338 76,625 76,809
International | Subcontractor        
Disaggregation Of Revenue [Line Items]        
Revenue 3,159 2,338 6,345 3,486
International | Commercial and other        
Disaggregation Of Revenue [Line Items]        
Revenue 41,651 41,676 82,970 80,295
International | Fixed-price        
Disaggregation Of Revenue [Line Items]        
Revenue 29,707 27,851 53,937 54,291
International | Time and materials        
Disaggregation Of Revenue [Line Items]        
Revenue $ 11,944 $ 13,825 $ 29,033 $ 26,004
v3.20.4
Revenue Recognition (Detail Textual) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Change In Accounting Estimate [Line Items]        
Income before income taxes $ 132,452 $ 95,473 $ 256,896 $ 178,819
Diluted earnings per share $ 4.18 $ 3.11 $ 7.86 $ 5.78
EAC Adjustments        
Change In Accounting Estimate [Line Items]        
Income before income taxes $ 18,100 $ 17,200 $ 25,900 $ 23,800
Diluted earnings per share $ 0.53 $ 0.50 $ 0.75 $ 0.69
Revenue from previously satisfied performance obligations $ 1,200 $ 9,800 $ 1,600 $ 10,200
v3.20.4
Revenue - Remaining Performance Obligations (Detail)
$ in Billions
Dec. 31, 2020
USD ($)
Revenue From Contract With Customer [Abstract]  
Remaining performance obligations $ 6.5
v3.20.4
Revenue - Remaining Performance Obligations (Detail 1)
Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 90.00%
Remaining performance obligations, expected timing of satisfaction 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 10.00%
Remaining performance obligations, expected timing of satisfaction
v3.20.4
Accounts Receivable - Schedule of Total Accounts Receivable (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Accounts Receivable Net [Abstract]    
Billed and billable receivables $ 668,563 $ 779,339
Unbilled receivables 79,282 61,888
Total accounts receivable, net – current 747,845 841,227
Unbilled receivables, long-term 11,248 9,629
Total accounts receivable $ 759,093 $ 850,856
v3.20.4
Accounts Receivable (Detail Textual) - USD ($)
$ in Millions
Dec. 31, 2020
Jun. 30, 2020
Accounts Receivable Net [Abstract]    
Allowance for doubtful accounts receivable $ 2.8 $ 3.0
v3.20.4
Contract Balances - Contract Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Contract assets – current:    
Unbilled receivables $ 79,282 $ 61,888
Costs to obtain – short-term 3,692 3,492
Contract assets – noncurrent:    
Unbilled receivables 11,248 9,629
Costs to obtain – long-term 8,658 7,708
Contract liabilities – current:    
Deferred revenue and other contract liabilities – short-term (68,773) (57,082)
Contract liabilities – noncurrent:    
Deferred revenue and other contract liabilities – long-term (6,585) (6,507)
Net contract assets (liabilities) $ 27,522 $ 19,128
v3.20.4
Contract Balances (Detail Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]        
Liability, revenue recognized $ 19.4 $ 12.1 $ 52.9 $ 38.7
v3.20.4
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Inventory Disclosure [Abstract]    
Materials, purchased parts and supplies $ 50,120 $ 36,692
Work in process 11,307 10,867
Finished goods 16,491 17,608
Total $ 77,918 $ 65,167
v3.20.4
Sales of Receivables (Detail Textual)
$ in Millions
Dec. 24, 2020
USD ($)
MARPA  
MARPA maturity date Dec. 23, 2021
MARPA maximum commitment $ 200.0
v3.20.4
Sales of Receivables - Summary of MARPA Activity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Transfers And Servicing Of Financial Assets [Abstract]        
Outstanding balance sold to Purchaser $ 199,758 [1] $ 200,000 $ 197,438 [1] $ 192,527
Sales of receivables 1,354,577   1,144,293  
Cash collections (1,354,819)   (1,139,382)  
Cash collected, not remitted to Purchaser [2] (43,304)   (53,904)  
Remaining sold receivables $ 156,454   $ 143,534  
[1] For the six months ended December 31, 2020 and 2019, the Company recorded a net cash outflow of $0.2 million and a net cash inflow of $4.9 million in its cash flows from operating activities, respectively, from sold receivables.  MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.
[2] Includes the cash collected on behalf of but not yet remitted to the Purchaser as of December 31, 2020 and 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.20.4
Sales of Receivables - Summary of MARPA Activity (Parentheticals) (Detail) - USD ($)
$ in Millions
 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Transfers And Servicing Of Financial Assets [Abstract]    
Cash provided (used) by MARPA $ (0.2) $ 4.9
v3.20.4
Long-term Debt - Schedule of Long-term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 1,426,095 $ 1,413,555
Less unamortized discounts and debt issuance costs (7,953) (9,116)
Total long-term debt 1,418,142 1,404,439
Less current portion (46,920) (46,920)
Long-term debt, net of current portion 1,371,222 1,357,519
Bank credit facility - term loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt 821,095 844,555
Bank credit facility - revolver loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 605,000 $ 569,000
v3.20.4
Long-term Debt (Detail Textual) - USD ($)
 6 Months Ended
Dec. 31, 2020
Jun. 30, 2020
Debt Instrument [Line Items]    
Outstanding amount under Credit Facility $ 1,426,095,000 $ 1,413,555,000
Interest Rate Swap | Cash Flow Hedging    
Debt Instrument [Line Items]    
Aggregate notional amount 800,000,000.0  
Bank Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 2,438,400,000  
Outstanding borrowings interest rate 2.49%  
Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 1,500,000,000.0  
Outstanding amount under Credit Facility 605,000,000 569,000,000
Term loans    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 938,400,000  
Outstanding amount under Credit Facility $ 821,095,000 $ 844,555,000
Term loan period 5 years  
Loan maturity date Jun. 30, 2024  
Term loan frequency of payment quarterly  
Term loan principal payment $ 11,700,000  
Same-Day Swing Line Loan Revolving Credit Sub-Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 100,000,000.0  
Outstanding amount under Credit Facility 0  
Stand-By Letters Of Credit Revolving Credit Sub-Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 25,000,000.0  
v3.20.4
Long-term Debt - Aggregate Maturities of Long-Term Debt (Detail 2) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Long Term Debt [Abstract]    
2021 $ 46,920  
2022 46,920  
2023 46,920  
2024 1,285,335  
Principal amount of long-term debt 1,426,095 $ 1,413,555
Less unamortized discounts and debt issuance costs (7,953) (9,116)
Total long-term debt $ 1,418,142 $ 1,404,439
v3.20.4
Long-term Debt - Cash Flow Hedges (Detail 3) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Long Term Debt [Abstract]        
Gain (loss) recognized in other comprehensive income $ (908) $ 3,557 $ (2,188) $ (639)
Amounts reclassified to earnings from accumulated other comprehensive loss 3,552 178 7,084 (590)
Net current period other comprehensive income (loss) $ 2,644 $ 3,735 $ 4,896 $ (1,229)
v3.20.4
Leases - Summary of Lease Balances (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Leases [Abstract]    
Operating lease right-of-use assets $ 374,310 $ 330,767
Operating lease liabilities, current 60,175 67,549
Operating lease liabilities, noncurrent 376,039 309,680
Operating lease liabilities $ 436,214 $ 377,229
v3.20.4
Leases - Summary of Lease Costs (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]        
Operating lease cost $ 22,615 $ 21,382 $ 44,587 $ 42,588
Short-term and variable lease cost 3,611 3,623 7,279 6,993
Sublease income (86) (438) (212) (902)
Total lease cost $ 26,140 $ 24,567 $ 51,654 $ 48,679
v3.20.4
Leases - Schedule of Future Minimum Operating Lease Payments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2021 (six months) $ 33,167  
2022 77,286  
2023 73,707  
2024 66,459  
2025 58,069  
Thereafter 174,510  
Total undiscounted lease payments 483,198  
Less: imputed interest (46,984)  
Total discounted lease liabilities $ 436,214 $ 377,229
v3.20.4
Leases (Detail Textual)
$ in Millions
 6 Months Ended
Dec. 31, 2020
USD ($)
Leases [Abstract]  
Operating lease, weighted average remaining lease term 7 years 1 month 2 days
Operating lease, weighted average discount rate 2.85%
Cash paid for operating leases $ 44.2
Operating lease liabilities arising from obtaining new ROU assets $ 81.8
v3.20.4
Stock-Based Compensation (Detail Textual) - USD ($)
$ in Millions
 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation related to restricted stock units $ 15.0 $ 14.5
RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation cost $ 54.4  
Weighted-average period to recognize unrecognized compensation cost (in years) 2 years 9 months 18 days  
v3.20.4
Stock-Based Compensation - Summary of Activity Related to RSUs (Detail 1) - RSUs
 6 Months Ended
Dec. 31, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unvested at June 30, 2020 501,923
Granted 184,319
Vested (223,180)
Forfeited (17,207)
Unvested at December 31, 2020 445,855
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]        
Net income $ 106,478 $ 79,195 $ 200,122 $ 147,172
Weighted-average number of basic shares outstanding during the period 25,225 25,065 25,162 24,979
Dilutive effect of RSUs after application of treasury stock method 226 370 307 504
Weighted-average number of diluted shares outstanding during the period 25,451 25,435 25,469 25,483
Basic earnings per share $ 4.22 $ 3.16 $ 7.95 $ 5.89
Diluted earnings per share $ 4.18 $ 3.11 $ 7.86 $ 5.78
v3.20.4
Income Taxes (Detail Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Jun. 30, 2020
Income Tax Disclosure [Abstract]          
Liability for unrecognized tax benefits $ 9.5   $ 9.5   $ 8.8
Unrecognized tax benefit that would impact the company's effective tax rate $ 9.5   $ 9.5    
Effective income tax rate 19.60% 17.10% 22.10% 17.70%  
v3.20.4
Income Taxes - Schedule Of Effective Income Tax Rate (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]        
Income tax expense $ 25,974 $ 16,278 $ 56,774 $ 31,647
Effective income tax rate 19.60% 17.10% 22.10% 17.70%
v3.20.4
Business Segment Information (Detail Textual)
 6 Months Ended
Dec. 31, 2020
Segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.20.4
Business Segment Information - Summarized Financial Information of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]        
Revenue from external customers $ 1,468,711 $ 1,395,469 $ 2,928,217 $ 2,758,861
Net income 106,478 79,195 200,122 147,172
Domestic Operations        
Segment Reporting Information [Line Items]        
Revenue from external customers 1,427,060 1,353,793 2,845,247 2,678,566
Net income 99,921 74,684 188,058 138,895
International Operations        
Segment Reporting Information [Line Items]        
Revenue from external customers 41,651 41,676 82,970 80,295
Net income $ 6,557 $ 4,511 $ 12,064 $ 8,277
v3.20.4
Fair Value of Financial Instruments - Recurring Fair Value Measurements (Detail) - Fair Value, Measurements, Recurring - Level 2 - Interest Rate Swap - USD ($)
$ in Thousands
Dec. 31, 2020
Jun. 30, 2020
Other accrued expenses and current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 847  
Other long-term liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 35,678 $ 43,168