CACI INTERNATIONAL INC /DE/, 10-K filed on 8/21/2019
Annual Report
v3.19.2
Document And Entity Information - USD ($)
 12 Months Ended
Jun. 30, 2019
Aug. 15, 2019
Dec. 31, 2018
Document And Entity Information [Abstract]      
Entity Registrant Name CACI INTERNATIONAL INC /DE/    
Entity Central Index Key 0000016058    
Trading Symbol CACI    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --06-30    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Common Stock, Shares Outstanding   24,881,546  
Entity Public Float     $ 3,520,375,787
Document Type 10-K    
Document Period End Date Jun. 30, 2019    
Amendment Flag false    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity File Number 001-31400    
Entity Tax Identification Number 541345888    
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    
v3.19.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Statement [Abstract]                      
Revenue $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814 $ 4,986,341 $ 4,467,860 $ 4,354,617
Costs of revenue:                      
Direct costs                 3,304,053 2,978,608 2,934,804
Indirect costs and selling expenses                 1,218,544 1,076,356 1,050,792
Depreciation and amortization                 85,877 72,196 71,760
Total costs of revenue                 4,608,474 4,127,160 4,057,356
Income from operations 81,096 94,908 102,263 99,600 80,340 104,794 88,262 67,304 377,867 340,700 297,261
Interest expense and other, net                 49,958 42,036 48,642
Income before income taxes                 327,909 298,664 248,619
Income tax (benefit) expense                 62,305 (2,507) 84,948
Net income $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 51,831 $ 64,499 $ 142,795 $ 42,046 $ 265,604 $ 301,171 $ 163,671
Basic earnings per share $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 2.10 $ 2.62 $ 5.80 $ 1.72 $ 10.70 $ 12.23 $ 6.71
Diluted earnings per share $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 2.05 $ 2.56 $ 5.66 $ 1.67 $ 10.46 $ 11.93 $ 6.53
Weighted-average basic shares outstanding 24,875 24,866 24,856 24,737 24,700 24,656 24,622 24,487 24,833 24,616 24,401
Weighted-average diluted shares outstanding 25,472 25,348 25,338 25,424 25,331 25,234 25,211 25,243 25,395 25,255 25,069
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]      
Net income $ 265,604 $ 301,171 $ 163,671
Other comprehensive income (loss):      
Foreign currency translation adjustment (6,103) 1,986 (2,804)
Effects of post-retirement adjustments, net of tax (109) 627 184
Change in fair value of interest rate swap agreements, net of tax (17,914) 7,473 14,587
Other comprehensive income (loss), net of tax (24,126) 10,086 11,967
Comprehensive income $ 241,478 $ 311,257 $ 175,638
v3.19.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Current assets:    
Cash and cash equivalents $ 72,028 $ 66,194
Accounts receivable, net 869,840 806,871
Prepaid expenses and other current assets 89,652 58,126
Total current assets 1,031,520 931,191
Goodwill 3,336,079 2,620,835
Intangible assets, net 436,115 241,755 [1]
Property and equipment, net 149,676 101,140
Supplemental retirement savings plan assets 92,736 91,490
Accounts receivable, long-term 7,381 8,620
Other long-term assets 33,336 39,175
Total assets 5,086,843 4,034,206
Current liabilities:    
Current portion of long-term debt 46,920 46,920
Accounts payable 118,917 82,017
Accrued compensation and benefits 290,274 259,442
Other accrued expenses and current liabilities 235,611 150,602
Total current liabilities 691,722 538,981
Long-term debt, net of current portion 1,618,093 1,015,420
Supplemental retirement savings plan obligations, net of current portion 92,291 86,851
Deferred income taxes 205,339 200,880
Other long-term liabilities 107,932 85,187
Total liabilities 2,715,377 1,927,319
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; 42,314 issued and 24,880 outstanding at June 30, 2019 and 42,139 issued and 24,704 outstanding at June 30, 2018 4,231 4,214
Additional paid-in capital 576,277 570,964
Retained earnings 2,410,164 2,126,790
Accumulated other comprehensive loss (43,156) (19,030)
Treasury stock, at cost (17,434 and 17,434 shares, respectively) (576,185) (576,186)
Total CACI shareholders’ equity 2,371,331 2,106,752
Noncontrolling interest 135 135
Total shareholders’ equity 2,371,466 2,106,887
Total liabilities and shareholders’ equity $ 5,086,843 $ 4,034,206
[1] During FY2019 and FY2018, the Company removed $1.5 million and $264.1 million, respectively, in fully amortized intangible assets.
v3.19.2
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Jun. 30, 2019
Jun. 30, 2018
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 42,314,000 42,139,000
Common stock, shares outstanding 24,880,000 24,704,000
Treasury stock, shares at cost 17,434,000 17,434,000
v3.19.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 265,604 $ 301,171 $ 163,671
Reconciliation of net income to net cash provided by operating activities:      
Depreciation and amortization 85,877 72,196 71,760
Amortization of deferred financing costs 2,406 4,061 4,484
Loss on extinguishment of debt 363 104  
Loss on disposal of assets 70 989 1,025
Stock-based compensation expense 25,272 23,628 21,945
Deferred income taxes (1,009) (77,324) 15,148
Equity in earnings of unconsolidated ventures     (167)
Gain on sale of assets     (1,545)
Changes in operating assets and liabilities, net of effect of business acquisitions:      
Accounts receivable, net 96,754 (42,575) 46,158
Prepaid expenses and other assets (5,372) (9,146) (5,221)
Accounts payable and other accrued expenses 70,692 1,097 (46,825)
Accrued compensation and benefits 8,387 13,544 12,048
Income taxes payable and receivable 1,119 6,090 (9,954)
Deferred rent (538) (183) (952)
Long-term liabilities 5,672 27,808 9,675
Net cash provided by operating activities 555,297 321,460 281,250
CASH FLOWS FROM INVESTING ACTIVITIES      
Capital expenditures (47,902) (41,594) (43,268)
Cash paid for business acquisitions, net of cash acquired (1,082,809) (76,910) (7,276)
Proceeds from net working capital and other refunds of acquired business     19,287
Proceeds from equity method investments     4,681
Other 2,729 3,898 1,772
Net cash used in investing activities (1,127,982) (114,606) (24,804)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from borrowings under bank credit facilities 2,531,500 477,000 485,500
Principal payments made under bank credit facilities (1,928,420) (647,474) (714,465)
Payment of financing costs under bank credit facilities (3,177) (2,915)  
Payment of contingent consideration (616) (11,553)  
Proceeds from employee stock purchase plans 5,702 4,929 4,316
Repurchases of common stock (5,838) (5,138) (4,386)
Payment of taxes for equity transactions (19,595) (21,365) (10,951)
Net cash provided by (used in) financing activities 579,556 (206,516) (239,986)
Effect of exchange rate changes on cash and cash equivalents (1,037) 317 (3)
Net increase in cash and cash equivalents 5,834 655 16,457
Cash and cash equivalents, beginning of year 66,194 65,539 49,082
Cash and cash equivalents, end of year 72,028 66,194 65,539
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      
Cash paid during the period for income taxes, net of refunds 68,303 57,941 79,268
Cash paid during the period for interest 44,673 40,100 45,015
Non-cash financing and investing activities:      
Accrued capital expenditures 8,223 $ 609 $ 667
Landlord sponsored tenant incentives $ 5,180    
v3.19.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Total CACI Shareholders' Equity
Noncontrolling Interest
Beginning balance at Jun. 30, 2016 $ 1,607,313 $ 4,176 $ 558,324 $ 1,661,948 $ (41,083) $ (576,187) $ 1,607,178 $ 135
Beginning balance, shares at Jun. 30, 2016   41,758       17,435    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 163,671     163,671     163,671  
Stock-based compensation expense 21,945   21,945       21,945  
Tax withholdings on restricted share vesting (10,943) $ 14 (10,957)       (10,943)  
Tax withholdings on restricted share vesting (in shares)   138            
Change in fair value of interest rate swap agreements, net 14,587       14,587   14,587  
Currency translation adjustment (2,804)       (2,804)   (2,804)  
Repurchases of common stock (4,386)   (236)     $ (4,150) (4,386)  
Repurchases of common stock (in shares)           41    
Treasury stock issued under stock purchase plans 4,154   4     $ 4,150 4,154  
Treasury stock issued under stock purchase plans (in shares)           (41)    
Post-retirement benefit costs 184       184   184  
Ending balance at Jun. 30, 2017 1,793,721 $ 4,190 569,080 1,825,619 (29,116) $ (576,187) 1,793,586 135
Ending balance, shares at Jun. 30, 2017   41,896       17,435    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 301,171     301,171     301,171  
Stock-based compensation expense 23,628   23,628       23,628  
Tax withholdings on restricted share vesting (21,344) $ 24 (21,368)       (21,344)  
Tax withholdings on restricted share vesting (in shares)   243            
Change in fair value of interest rate swap agreements, net 7,473       7,473   7,473  
Currency translation adjustment 1,986       1,986   1,986  
Repurchases of common stock (5,138)   (383)     $ (4,755) (5,138)  
Repurchases of common stock (in shares)           36    
Treasury stock issued under stock purchase plans 4,763   7     $ 4,756 4,763  
Treasury stock issued under stock purchase plans (in shares)           (37)    
Post-retirement benefit costs 627       627   627  
Ending balance at Jun. 30, 2018 2,106,887 $ 4,214 570,964 2,126,790 (19,030) $ (576,186) 2,106,752 135
Ending balance, shares at Jun. 30, 2018   42,139       17,434    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 265,604     265,604     265,604  
Stock-based compensation expense 25,272   25,272       25,272  
Tax withholdings on restricted share vesting (19,555) $ 17 (19,572)       (19,555)  
Tax withholdings on restricted share vesting (in shares)   175            
Change in fair value of interest rate swap agreements, net (17,914)       (17,914)   (17,914)  
Currency translation adjustment (6,103)       (6,103)   (6,103)  
Repurchases of common stock (5,838)   (392)     $ (5,446) (5,838)  
Repurchases of common stock (in shares)           34    
Treasury stock issued under stock purchase plans 5,452   5     $ 5,447 5,452  
Treasury stock issued under stock purchase plans (in shares)           (34)    
Post-retirement benefit costs (109)       (109)   (109)  
Ending balance at Jun. 30, 2019 2,371,466 $ 4,231 $ 576,277 2,410,164 $ (43,156) $ (576,185) 2,371,331 $ 135
Ending balance, shares at Jun. 30, 2019   42,314       17,434    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cumulative effect adjustment of ASC 606, net of taxes $ 17,770     $ 17,770     $ 17,770  
v3.19.2
ORGANIZATION AND BASIS OF PRESENTATION
 12 Months Ended
Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
ORGANIZATION AND BASIS OF PRESENTATION

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

Business Activities

CACI International Inc, along with its wholly-owned subsidiaries and joint ventures that are majority owned or otherwise controlled by it (collectively, the Company), is an international information solutions and services provider to its customers, primarily the U.S. government. Other customers include state and local governments, commercial enterprises and agencies of foreign governments.

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

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company.  All intercompany balances and transactions have been eliminated in consolidation.
v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Revenue Recognition

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

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

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

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

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

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

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

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

Costs of Revenue

Costs of revenue include all direct contract costs including subcontractor costs, as well as indirect overhead costs and selling, general and administrative expenses that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also include expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations.

Accounts Receivable and Allowance for Doubtful Accounts

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

Contract Assets

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

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

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

Contract Liabilities

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

Remaining Performance Obligations

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

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

Cash and Cash Equivalents

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

Inventories

Inventories are stated at the lower of cost or net realizable value.  A provision for damaged, deteriorated, or obsolete inventory is recorded based on historical usage patterns and forecasted sales.  As of June 30, 2019 and 2018, the Company had $47.2 million and $25.9 million of net inventory, respectively, included within prepaid expenses and other current assets on the accompanying consolidated balance sheets.

Accounting for Business Combinations and Goodwill

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

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

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

The Company evaluates goodwill as of the first day of the fiscal fourth quarter.  In addition, the Company will perform interim impairment testing should circumstances requiring it arise.  The Company completed its annual goodwill assessment as of April 1, 2019 and no impairment charge was necessary as a result of this assessment.

Long-Lived Assets (Excluding Goodwill)

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

External Software Development Costs

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

Supplemental Retirement Savings Plan

The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan.  Each participant directs his or her investments in the Supplemental Savings Plan (see Note 20).  

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

Income Taxes

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

Costs of Acquisitions

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

Foreign Currency Translation

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

Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock unit (RSUs) that are no longer subject to a market or performance condition.  Information about the weighted-average number of basic and diluted shares is presented in Note 23.

Fair Value of Financial Instruments

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

The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2019. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.  

Concentrations of Credit Risk

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

Other Comprehensive Income (Loss)

Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $6.4 million, $4.2 million and $9.5 million for the years ended June 30, 2019, 2018 and 2017, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 16).

As of June 30, 2019 and 2018, accumulated other comprehensive loss included a loss of $33.6 million and $27.5 million, respectively, related to foreign currency translation adjustments, a loss of $9.0 million and a gain of $0.9 million, respectively, related to the fair value of its interest rate swap agreements, and a loss of $0.6 million and $0.5 million, respectively, related to unrecognized post-retirement costs.  

Commitments and Contingencies

The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity.  Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.
v3.19.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 12 Months Ended
Jun. 30, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

NOTE 3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software (Subtopic 350-40). ASU 2018-15 becomes effective for the Company in the first quarter of FY2021 and may be adopted either retrospectively or prospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes the presentation of net periodic pension and postretirement cost (net benefit cost) on the consolidated statements of operations.  The service cost component of net benefit cost will continue to be part of operating income while all other components of net benefit cost (interest costs, actuarial gains and losses and amortization of prior service cost) will be shown outside of operating income.  The Company adopted this standard on July 1, 2018 and applied the standard retrospectively.  The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified on the statement of cash flows to reduce diversity in practice.  The Company adopted this standard on July 1, 2018 and applied the standard retrospectively.  As a result of adoption, the Company reclassified $3.7 million of proceeds received from the settlement of corporate owned life insurance (COLI) policies from operating activities to investing activities on the Consolidated Statement of Cash Flows for the year ended June 30, 2018.  During the year ended June 30, 2019, $2.7 million of COLI proceeds are presented as investing activities.  

In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance on accounting for leases.  The new standard requires lessees to put virtually all leases on the balance sheet by recognizing lease assets and lease liabilities. Lessor accounting is largely unchanged from that applied under previous guidance. The amended guidance is effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2018, and requires a modified retrospective approach.  Early adoption is permitted. The Company adopted this standard on July 1, 2019 for its FY2020, and has substantially completed its adoption, including measuring its existing leases, reviewing lease contracts, implementing a new lease accounting solution and establishing accounting policy and internal control changes. The Company has elected to adopt certain practical expedients provided under ASC 842, including reassessment of whether expired or existing contracts contain leases, reassessment of lease classification for expired or existing leases, and reassessing initial direct costs for existing leases. We expect that upon adoption we will recognize a right-of-use asset ranging from $345-$365 million and lease liability ranging from $390-$410 million on our balance sheet, which is inclusive of required conforming balance sheet reclassifications. We do not expect the standard to have a material impact on our cash flows or results of operations. The Company is continuing to refine its processes in order to meet the accounting and disclosure requirements upon adoption of Topic 842 in the first quarter of FY2020.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as amended (ASC 606), which superseded nearly all existing revenue recognition guidance under GAAP.  The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.  ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than were required under previous GAAP.  In addition, ASU 2014-09 added ASC 340-40 to codify guidance on other assets and deferred costs for contracts with customers.  

Effective July 1, 2018, the Company adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption.  In addition, for our fiscal year ending June 30, 2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard.  The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605.

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

 

 

June 30, 2018

As Reported

Under

ASC 605

 

 

Adjustments

Due to

ASC 606

 

 

July 1, 2018

Balance Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

806,871

 

 

$

20,454

 

 

$

827,325

 

Prepaid expenses and other current assets

 

58,126

 

 

 

2,342

 

 

 

60,468

 

Other long-term assets

 

39,175

 

 

 

3,923

 

 

 

43,098

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

150,602

 

 

 

2,212

 

 

 

152,814

 

Deferred income taxes

 

200,880

 

 

 

6,639

 

 

 

207,519

 

Other long-term liabilities

 

85,187

 

 

 

98

 

 

 

85,285

 

Retained earnings

 

2,126,790

 

 

 

17,770

 

 

 

2,144,560

 

ASC 606 changed the pattern of revenue recognition for some of our contracts with customers.  For our award and incentive fee contracts, we recognize an estimated amount of variable consideration throughout the performance period rather than defer recognition of the relevant portion of fee until customer notification of the amount earned.  Some of our fixed price services-type contracts in which revenue was previously recognized on a straight-line basis over the performance period converted to recognition of revenue using a cost-to-cost input method to measure our progress towards the complete satisfaction of the performance obligation.  The cumulative effect of these changes in the pattern of revenue recognition resulted in an increase to accounts receivable with an offset to retained earnings.

In addition, ASC 606 changed the timing of revenue recognition for license renewal performance obligations.  Under prior GAAP, license renewals were generally recognized in the period the renewal contract was executed.  However, upon adoption of ASC 606, the consideration received for a license renewal may not be recognized until the start of the term of the renewal.  The cumulative effect of this change resulted in an increase to contract liabilities with an offset to retained earnings.

The adoption of ASC 606 did not have a material impact on the Company’s revenue recognition for cost-plus-fee, fixed price/level-of-effort, time-and-materials (T&M), fixed price contracts previously recognized under ASC 605-35, and fixed price product revenue arrangements.

Under ASC 340-40, the Company capitalizes certain costs to fulfill and obtain a contract.  The cumulative effect of this change resulted in an increase to contract assets with an offset to retained earnings.  These capitalized costs are amortized over the period of contract performance as revenue is recognized from the transfer of goods or services and the underlying performance obligation is satisfied.    

In addition, under the modified retrospective approach for adopting ASC 606, for FY2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard.  The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605.  The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the year ended June 30, 2019 (in thousands):

 

 

Year Ended June 30, 2019

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Revenue

$

4,975,846

 

 

$

10,495

 

 

$

4,986,341

 

Costs of revenue:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

3,304,053

 

 

 

—

 

 

 

3,304,053

 

Indirect costs and selling expenses

 

1,220,317

 

 

 

(1,773

)

 

 

1,218,544

 

Depreciation and amortization

 

85,877

 

 

 

—

 

 

 

85,877

 

Total costs of revenue

 

4,610,247

 

 

 

(1,773

)

 

 

4,608,474

 

Income from operations

 

365,599

 

 

 

12,268

 

 

 

377,867

 

Interest expense and other, net

 

49,958

 

 

 

—

 

 

 

49,958

 

Income before taxes

$

315,641

 

 

$

12,268

 

 

$

327,909

 

Income tax expense

 

59,179

 

 

 

3,126

 

 

 

62,305

 

Net income

$

256,462

 

 

$

9,142

 

 

$

265,604

 

Basic earnings per share

$

10.33

 

 

$

0.37

 

 

$

10.70

 

Diluted earnings per share

$

10.10

 

 

$

0.36

 

 

$

10.46

 

For the year ended June 30, 2019, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition.

The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of June 30, 2019 (in thousands):

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

841,781

 

 

$

28,059

 

 

$

869,840

 

Prepaid expenses and other current assets

 

86,967

 

 

 

2,685

 

 

 

89,652

 

Other long-term assets

 

27,983

 

 

 

5,353

 

 

 

33,336

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

231,822

 

 

 

3,789

 

 

 

235,611

 

Deferred income taxes

 

199,943

 

 

 

5,396

 

 

 

205,339

 

Other long-term liabilities

 

107,932

 

 

 

—

 

 

 

107,932

 

Retained earnings

 

2,383,252

 

 

 

26,912

 

 

 

2,410,164

 

 

 
v3.19.2
ACQUISITIONS
 12 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
ACQUISITIONS

NOTE 4. ACQUISITIONS

Year Ended June 30, 2019

Domestic Acquisitions

SE&A BU

On August 15, 2018, CACI acquired certain assets of the systems engineering and acquisition support services business unit (SE&A BU) of CSRA LLC, a managed affiliate of General Dynamics Information Technology, Inc.   The initial purchase consideration paid at closing to acquire the SE&A BU was $84.0 million plus $6.0 million representing a preliminary net working capital adjustment.  Subsequent to closing, CACI made an additional payment of $4.4 million to the sellers for a net working capital adjustment.  The Company recognized fair values of the assets acquired and liabilities assumed and allocated $44.0 million to goodwill and $8.9 million to intangible assets. The intangible assets consist of customer relationships. Of the value attributed to goodwill and intangible assets, approximately $52.9 million is deductible for income tax purposes.  The final purchase price allocation was completed in Q1 FY2020. The differences between the preliminary and final purchase price allocation did not have a material impact on CACI’s results of operations or financial position.

Mastodon

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

The Company recognized fair values of the assets acquired and liabilities assumed and allocated $139.2 million to goodwill and $83.9 million to intangible assets.  The goodwill of $139.2 million is largely attributable to the assembled workforce of Mastodon and expected synergies between the Company and Mastodon.  The intangible assets consist of customer relationships of $19.8 million and technology of $64.1 million.  The estimated fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 9 years for technology.  The fair value attributed to the intangible assets acquired was based on preliminary estimates, assumptions, and other information compiled by management, including independent valuations that utilized established valuation techniques.  Of the value attributed to goodwill and intangible assets, approximately $223.1 million is deductible for income tax purposes.  The final purchase price allocation, which is provisional and is expected to be completed by Q3 FY2020, will be based on final analysis of fair values of acquired assets and liabilities.

LGS

On March 1, 2019, CACI acquired all of the equity interests of Legos Intermediate Holdings, LLC and MDCP Legos Blocker, Inc., the parent companies of LGS Innovations (LGS).  The purchase consideration is approximately $750.5 million, which includes $759.9 million of cash paid at close net of cash acquired partially offset by a $9.4 million estimated net purchase price reduction for returnable consideration, deferred consideration, and estimated post-close net working capital adjustments.  LGS is a leading provider of SIGINT and cyber products and solutions to the Intelligence Community and Department of Defense.

CACI is in the process of finalizing its valuation of all the assets acquired and liabilities assumed. As the amounts recorded for certain assets and liabilities are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date.  The final determination of fair values of certain assets and liabilities will be completed within the measurement period of up to one-year from the acquisition date as permitted under GAAP. The LGS acquisition could necessitate the need to use the full one-year measurement period to adequately analyze and assess several factors used in establishing the asset and liability fair values as of the acquisition date, including intangible assets, receivables, inventory, deferred revenue, deferred taxes, income tax obligations, and certain reserves. Any potential adjustments made could be material in relation to the preliminary values presented in the table below. Based on the Company’s preliminary valuation, the total estimated consideration of $750.5 million has been allocated to assets acquired and liabilities assumed as follows (in thousands):

 

Accounts receivable

 

$

83,320

 

Prepaid expenses and other current assets

 

 

20,781

 

Property and equipment

 

 

23,283

 

Intangible assets

 

 

147,650

 

Goodwill

 

 

526,879

 

Other long-term assets

 

 

877

 

Accounts payable

 

 

(10,309

)

Accrued compensation and benefits

 

 

(22,347

)

Other accrued expenses and current liabilities

 

 

(8,823

)

Deferred income taxes

 

 

(5,171

)

Other long-term liabilities

 

 

(5,644

)

Total estimated consideration

 

$

750,496

 

 

During the quarter ended June 30, 2019 we continued to obtain information to refine estimated fair values. As a result of the additional information, the Company recorded measurement period adjustments reducing total consideration by $9.0 million related to an estimated net working capital adjustment.  In addition, the Company recorded measurement period adjustments that increased deferred income tax liabilities and goodwill by approximately $5.2 million.

The goodwill of $526.9 million is largely attributable to the assembled workforce of LGS and expected synergies between the Company and LGS.  The intangible assets consist of customer relationships of $86.9 million and technology of $60.8 million. The estimated fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 15 years for technology.  The fair value attributed to the intangible assets acquired was based on preliminary estimates, 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 $589.1 million is deductible for income tax purposes.

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

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

Revenue

 

$

5,271,872

 

 

$

4,822,318

 

Net income

 

 

275,630

 

 

 

289,143

 

Basic EPS

 

 

11.10

 

 

 

11.75

 

Diluted EPS

 

 

10.85

 

 

 

11.45

 

 

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

International Acquisitions

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

Year Ended June 30, 2018

Domestic Acquisitions

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

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

International Acquisitions

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

On November 1, 2017, CACI Limited acquired 100 percent of the outstanding shares of a London-based software and mapping data company. The acquired company provides geographical information systems, logistics and route optimization software and related map data. The purchase consideration was approximately $7.5 million, which includes initial cash payments, deferred consideration and an estimated net working capital payment.

Year Ended June 30, 2017

On October 1, 2016, CACI Limited acquired a business in the United Kingdom that provides outsourced database managed services and associated database segmentation and analytics for large corporate customers.  The purchase consideration for this business was approximately $2.8 million, which includes initial cash payments, deferred consideration and contingent consideration to be paid upon achieving certain metrics.
v3.19.2
ACCOUNTS RECEIVABLE
 12 Months Ended
Jun. 30, 2019
Accounts Receivable Net [Abstract]  
ACCOUNTS RECEIVABLE

NOTE 5. ACCOUNTS RECEIVABLE

Total accounts receivable, net of allowance for doubtful accounts of $4.2 million, $3.7 million, and $3.6 million at June 30, 2019, 2018, and 2017, respectively, consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Billed receivables

 

$

638,135

 

 

$

625,336

 

Billable receivables

 

 

141,632

 

 

 

129,183

 

Unbilled receivables

 

 

90,073

 

 

 

52,352

 

Total accounts receivable, current

 

 

869,840

 

 

 

806,871

 

Unbilled receivables, long-term

 

 

7,381

 

 

 

8,620

 

Total accounts receivable

 

$

877,221

 

 

$

815,491

 

 
v3.19.2
GOODWILL
 12 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
GOODWILL

NOTE 6. GOODWILL

The changes in the carrying amount of goodwill for the years ended June 30, 2019 and 2018 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2017

 

$

2,479,496

 

 

$

97,939

 

 

$

2,577,435

 

Goodwill acquired (1)

 

 

35,024

 

 

 

6,867

 

 

 

41,891

 

Foreign currency translation

 

 

—

 

 

 

1,509

 

 

 

1,509

 

Balance at June 30, 2018

 

$

2,514,520

 

 

$

106,315

 

 

$

2,620,835

 

Goodwill acquired (1)

 

 

710,165

 

 

 

9,038

 

 

 

719,203

 

Foreign currency translation

 

 

—

 

 

 

(3,959

)

 

 

(3,959

)

Balance at June 30, 2019

 

$

3,224,685

 

 

$

111,394

 

 

$

3,336,079

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.19.2
INTANGIBLE ASSETS
 12 Months Ended
Jun. 30, 2019
Finite Lived Intangible Assets Net [Abstract]  
INTANGIBLE ASSETS

NOTE 7. INTANGIBLE ASSETS

Intangible assets consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2019

 

 

2018 (1)

 

Intangible assets

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

549,552

 

 

$

435,933

 

Acquired technologies

 

 

137,959

 

 

 

13,237

 

Other

 

 

800

 

 

 

804

 

Intangible assets

 

 

688,311

 

 

 

449,974

 

Less accumulated amortization

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(236,935

)

 

 

(199,018

)

Acquired technologies

 

 

(14,750

)

 

 

(8,761

)

Other

 

 

(511

)

 

 

(440

)

Accumulated amortization

 

 

(252,196

)

 

 

(208,219

)

Total intangible assets, net

 

$

436,115

 

 

$

241,755

 

 

 

(1)

During FY2019 and FY2018, the Company removed $1.5 million and $264.1 million, respectively, in fully amortized intangible assets.

Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to twenty years. The weighted-average period of amortization for customer contracts and related customer relationships as of June 30, 2019 is 16.6 years, and the weighted-average remaining period of amortization is 13.9 years. The weighted-average period of amortization for acquired technologies as of June 30, 2019 is 10.3 years, and the weighted-average remaining period of amortization is 9.9 years.

Amortization expense for the years ended June 30, 2019, 2018 and 2017 was $45.8 million, $38.2 million and $40.7 million, respectively. Expected amortization expense for each of the fiscal years through June 30, 2024 and for years thereafter is as follows (in thousands):

 

 

 

Amount

 

Year ending June 30, 2020

 

$

57,616

 

Year ending June 30, 2021

 

 

56,467

 

Year ending June 30, 2022

 

 

53,318

 

Year ending June 30, 2023

 

 

48,143

 

Year ending June 30, 2024

 

 

41,401

 

Thereafter

 

 

179,170

 

Total intangible assets, net

 

$

436,115

 

 
v3.19.2
PROPERTY AND EQUIPMENT
 12 Months Ended
Jun. 30, 2019
Property Plant And Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 8. PROPERTY AND EQUIPMENT

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Equipment and furniture

 

$

193,940

 

 

$

152,682

 

Leasehold improvements

 

 

149,935

 

 

 

109,849

 

Property and equipment, at cost

 

 

343,875

 

 

 

262,531

 

Less accumulated depreciation and amortization

 

 

(194,199

)

 

 

(161,391

)

Total property and equipment, net

 

$

149,676

 

 

$

101,140

 

Depreciation expense, including amortization of leasehold improvements, was $36.4 million, $30.7 million and $27.5 million for the years ended June 30, 2019, 2018 and 2017, respectively.
v3.19.2
ACCRUED COMPENSATION AND BENEFITS
 12 Months Ended
Jun. 30, 2019
Employee Related Liabilities Current [Abstract]  
ACCRUED COMPENSATION AND BENEFITS

NOTE 9. ACCRUED COMPENSATION AND BENEFITS

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Accrued salaries and withholdings

 

$

164,631

 

 

$

144,213

 

Accrued leave

 

 

97,832

 

 

 

88,547

 

Accrued fringe benefits

 

 

27,811

 

 

 

26,682

 

Total accrued compensation and benefits

 

$

290,274

 

 

$

259,442

 

 
v3.19.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES
 12 Months Ended
Jun. 30, 2019
Other Accrued Expenses And Current Liabilities [Abstract]  
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

NOTE 10. OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Vendor obligations

 

$

90,238

 

 

$

91,048

 

Deferred revenue (see Note 12)

 

 

55,667

 

 

 

41,744

 

MARPA Facility payable (see Note 13)

 

 

54,567

 

 

 

—

 

Other

 

 

35,139

 

 

 

17,810

 

Total other accrued expenses and current liabilities

 

$

235,611

 

 

$

150,602

 

 
v3.19.2
REVENUE RECOGNITION
 12 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
REVENUE RECOGNITION

NOTE 11. REVENUE RECOGNITION

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

 

Revenue by Contract Type

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

2,764,291

 

 

$

—

 

 

$

2,764,291

 

Firm fixed-price

 

 

1,365,052

 

 

 

100,507

 

 

 

1,465,559

 

Time and materials

 

 

700,107

 

 

 

56,384

 

 

 

756,491

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Customer Information

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

3,489,854

 

 

$

—

 

 

$

3,489,854

 

Federal civilian agencies

 

 

1,263,681

 

 

 

—

 

 

 

1,263,681

 

Commercial and other

 

 

75,915

 

 

 

156,891

 

 

 

232,806

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Prime or Subcontractor

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

4,429,439

 

 

$

156,891

 

 

$

4,586,330

 

Subcontractor

 

 

400,011

 

 

 

—

 

 

 

400,011

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

 

Significant Estimates

The Company uses an estimate at completion (EAC) as the basis to measure progress towards the complete satisfaction of its contractual performance obligations, for each of its contracts in which revenue is recognized using a percentage of completion calculation.  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.  Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded.  During the year ended June 30, 2019, we recognized an increase to income before income taxes of $19.7 million ($0.57 per diluted share), from EAC adjustments.  The Company used its statutory tax rate when calculating the impact to diluted earnings per share.

The Company records final true-up adjustments to its 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.  These final true-up adjustments are disclosed as revenue recognized from previously satisfied performance obligations.  For the year ended June 30, 2019, the revenue recognized from previously satisfied performance obligations was not material.

Remaining Performance Obligations

The Company’s remaining performance obligations balance as of period end represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts.  This balance excludes unexercised contract option years and task orders that may be issued underneath an IDIQ vehicle.  Our remaining performance obligations balance as of June 30, 2019 was $6.2 billion.

The Company expects to recognize approximately 77 percent of our remaining performance obligations balance as revenue over the next year and the remaining 23 percent thereafter.
v3.19.2
CONTRACT BALANCES
 12 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
CONTRACT BALANCES

NOTE 12. CONTRACT BALANCES

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

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

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

 

Description of Contract Related Balance

 

Financial Statement Classification

 

June 30,

2019

 

 

July 1,

2018 (1)

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

90,073

 

 

$

72,511

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

2,685

 

 

 

2,342

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

7,381

 

 

 

8,620

 

Costs to obtain – long-term

 

Other long-term assets

 

 

5,353

 

 

 

3,923

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities

 

Other accrued expenses and current liabilities

 

 

(55,667

)

 

 

(43,940

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities

 

Other long-term liabilities

 

 

(7,445

)

 

 

(4,740

)

Net contract assets (liabilities)

 

 

 

$

42,380

 

 

$

38,716

 

 

 

(1)

Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.

During FY2019, we recognized $35.5 million that was included in a previously recorded contract liability as of the beginning of the period.
v3.19.2
SALES OF RECEIVABLES
 12 Months Ended
Jun. 30, 2019
Transfers And Servicing Of Financial Assets [Abstract]  
SALES OF RECEIVABLES

NOTE 13. SALES OF RECEIVABLES

On December 28, 2018, the Company entered into a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd. (the Purchaser), for the sale of certain designated eligible U.S. government receivables.  The MARPA Facility has an initial term of one-year.  Under the MARPA Facility, 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 Facility without recourse for any U.S. government credit risk.

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

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services.  The Company estimated that its servicing fee was at fair value and therefore no servicing asset or liability related to these receivables was recognized as of June 30, 2019.  Proceeds from the sold receivables are reflected in our operating cash flows on the statement of cash flows.

During the year ended June 30, 2019, the Company sold $1.1 billion of receivables.  The amount outstanding as of June 30, 2019 was $192.5 million.  As of June 30, 2019, collections not remitted to the Purchaser related to the sold receivables were $54.6 million.  This amount represents an obligation to the Purchaser and is included in other accrued expenses and current liabilities in the accompanying consolidated balance sheet.

During the year ended June 30, 2019, the Company incurred purchase discount fees of $3.0 million, which are recorded within interest expense and other, net in our accompanying consolidated statements of operations.

MARPA Facility activity consisted of the following (in thousands):

 

 

 

As of and for the

Year Ended

June 30, 2019

 

Beginning balance:

 

 

 

 

Sales of receivables

 

$

1,126,395

 

Cash collections

 

 

(933,868

)

Outstanding balance sold to Purchaser: (1)

 

 

192,527

 

Cash collected, not remitted to Purchaser (2)

 

 

(54,567

)

Remaining sold receivables

 

$

137,960

 

 

 

(1)

Represents the increase to cash flows from operations.

 

(2)

Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.19.2
LONG-TERM DEBT
 12 Months Ended
Jun. 30, 2019
Long Term Debt [Abstract]  
LONG-TERM DEBT

NOTE 14. LONG-TERM DEBT

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Bank credit facility – term loans

 

$

891,475

 

 

$

938,394

 

Bank credit facility – revolver loans

 

 

785,000

 

 

 

135,000

 

Principal amount of long-term debt

 

 

1,676,475

 

 

 

1,073,394

 

Less unamortized discounts and debt issuance costs

 

 

(11,462

)

 

 

(11,054

)

Total long-term debt

 

 

1,665,013

 

 

 

1,062,340

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,618,093

 

 

$

1,015,420

 

 

Bank Credit Facility

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

The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,500.0 million. As of June 30, 2019, the Company had $785.0 million outstanding under the Revolving Facility and no borrowings on the swing line.  The Company pays a quarterly facility fee for the unused portion of the Revolving Facility.

The Term Loan is a five-year secured facility under which principal payments are due in quarterly installments of $11.7 million until the balance is due in full on June 30, 2024. As of June 30, 2019, the Company had $891.5 million outstanding under the Term Loan.

The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable rate based upon the Company’s consolidated total leverage ratio.  As of June 30, 2019, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 3.81 percent.

The Credit Facility requires the Company to comply with certain financial covenants, including a maximum total leverage ratio and a minimum interest coverage ratio.  The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility.  As of June 30, 2019, the Company was in compliance with all of the financial covenants.  A majority of the Company’s assets serve as collateral under the Credit Facility.

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

Cash Flow Hedges

The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations.  The Company has entered into several floating-to-fixed interest rate swap agreements for an aggregate notional amount of $900.0 million which hedge a portion of the Company’s floating rate indebtedness.  The swaps mature at various dates through 2026.  The Company has designated the swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed.  Realized gains and losses in connection with each required interest payment are reclassified from accumulated other comprehensive income or loss to interest expense.  The Company does not hold or issue derivative financial instruments for trading purposes.

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2019, 2018 and 2017 is as follows (in thousands):

 

 

 

Interest Rate Swaps

 

 

 

2019

 

 

2018

 

 

2017

 

Gain (loss) recognized in other comprehensive income

 

$

(14,011

)

 

$

6,344

 

 

$

6,872

 

Amounts reclassified to earnings from accumulated

   other comprehensive loss

 

 

(3,903

)

 

 

1,129

 

 

 

7,715

 

Net current period other comprehensive income (loss)

 

$

(17,914

)

 

$

7,473

 

 

$

14,587

 

The aggregate maturities of long-term debt at June 30, 2019 are as follows (in thousands):

 

Year ending June 30,

 

 

 

 

2020

 

$

46,920

 

2021

 

 

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,488,795

 

Principal amount of long-term debt

 

 

1,676,475

 

Less unamortized discounts and debt issuance costs

 

 

(11,462

)

Total long-term debt

 

$

1,665,013

 

 

 
v3.19.2
LEASES
 12 Months Ended
Jun. 30, 2019
Leases [Abstract]  
LEASES

NOTE 15. LEASES

The Company conducts its operations from leased office facilities, all of which are classified as operating leases and expire over the next 11 years. Future minimum lease payments due under non-cancelable leases as of June 30, 2019, are as follows (in thousands):

 

Year ending June 30:

 

 

 

 

2020

 

$

81,027

 

2021

 

 

72,331

 

2022

 

 

63,655

 

2023

 

 

54,056

 

2024

 

 

43,691

 

Thereafter

 

 

132,792

 

Total minimum lease payments

 

$

447,552

 

 

The minimum lease payments above are shown net of sublease rental income of $4.4 million scheduled to be received over the next four years under non-cancelable sublease agreements.

Rent expense incurred under operating leases for the years ended June 30, 2019, 2018, and 2017 totaled $79.0 million, $68.0 million, and $76.2 million, respectively.
v3.19.2
OTHER LONG-TERM LIABILITIES
 12 Months Ended
Jun. 30, 2019
Other Liabilities Noncurrent [Abstract]  
OTHER LONG-TERM LIABILITIES

NOTE 16. OTHER LONG-TERM LIABILITIES

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Deferred rent, net of current portion

 

$

41,427

 

 

$

32,768

 

Interest rate swap agreements

 

 

12,264

 

 

 

—

 

Deferred and contingent acquisition consideration

 

 

6,510

 

 

 

11,000

 

Deferred revenue

 

 

7,445

 

 

 

4,642

 

Accrued post-retirement obligations

 

 

5,982

 

 

 

5,651

 

Long-term incentive compensation

 

 

13,085

 

 

 

11,935

 

Reserve for unrecognized tax benefits (see Note 19)

 

 

1,544

 

 

 

4,195

 

Transition tax

 

 

4,472

 

 

 

8,128

 

Other

 

 

15,203

 

 

 

6,868

 

Total other long-term liabilities

 

$

107,932

 

 

$

85,187

 

 

Deferred rent liabilities result from recording rent expense and incentives for tenant improvements on a straight-line basis over the life of the respective lease.

Accrued post-retirement obligations include projected liabilities for benefits the Company is obligated to provide under long-term care, group health, and executive life insurance plans, each of which is unfunded. Plan benefits are provided to certain current and former executives, their dependents and other eligible employees, as defined. Post-retirement obligations also include accrued benefits under supplemental retirement benefit plans covering certain executives. The expense recorded under these plans was $0.4 million during the year ended June 30, 2019 and $0.4 million during the year ended June 30, 2018, respectively.

The Company has entered into floating-to-fixed interest rate swap agreements related to a portion of the Company’s floating rate indebtedness (see Note 14).  See Note 22 for fair values of the swap agreements as of June 30, 2019 and 2018.

 
v3.19.2
BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION
 12 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION

NOTE 17. BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION

Segment Information

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

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

 

 

(in thousands)

 

Year Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Net income

 

 

249,793

 

 

 

15,811

 

 

 

265,604

 

Net assets

 

 

2,206,109

 

 

 

165,357

 

 

 

2,371,466

 

Goodwill

 

 

3,224,685

 

 

 

111,394

 

 

 

3,336,079

 

Total long-term assets

 

 

3,927,783

 

 

 

127,540

 

 

 

4,055,323

 

Total assets

 

 

4,876,399

 

 

 

210,444

 

 

 

5,086,843

 

Capital expenditures

 

 

46,406

 

 

 

1,496

 

 

 

47,902

 

Depreciation and amortization

 

 

81,205

 

 

 

4,672

 

 

 

85,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,304,602

 

 

$

163,258

 

 

$

4,467,860

 

Net income

 

 

286,024

 

 

 

15,147

 

 

 

301,171

 

Net assets

 

 

1,948,768

 

 

 

158,119

 

 

 

2,106,887

 

Goodwill

 

 

2,514,520

 

 

 

106,315

 

 

 

2,620,835

 

Total long-term assets

 

 

2,975,620

 

 

 

127,395

 

 

 

3,103,015

 

Total assets

 

 

3,829,417

 

 

 

204,789

 

 

 

4,034,206

 

Capital expenditures

 

 

40,639

 

 

 

955

 

 

 

41,594

 

Depreciation and amortization

 

 

67,891

 

 

 

4,305

 

 

 

72,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,217,488

 

 

$

137,129

 

 

$

4,354,617

 

Net income

 

 

150,271

 

 

 

13,400

 

 

 

163,671

 

Net assets

 

 

1,652,736

 

 

 

140,985

 

 

 

1,793,721

 

Goodwill

 

 

2,479,496

 

 

 

97,939

 

 

 

2,577,435

 

Total long-term assets

 

 

2,912,488

 

 

 

118,692

 

 

 

3,031,180

 

Total assets

 

 

3,716,893

 

 

 

194,189

 

 

 

3,911,082

 

Capital expenditures

 

 

41,832

 

 

 

1,436

 

 

 

43,268

 

Depreciation and amortization

 

 

67,042

 

 

 

4,718

 

 

 

71,760

 

 

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

 

Customer Information

The Company earned 95.3 percent, 94.8 percent and 95.1 percent of its revenue from various agencies and departments of the U.S. government for the years ended June 30, 2019, 2018 and 2017, respectively.

 
v3.19.2
OTHER COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
OTHER COMMITMENTS AND CONTINGENCIES

NOTE 18. OTHER COMMITMENTS AND CONTINGENCIES

General Legal Matters

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

Government Contracting

Payments to the Company on cost-plus-fee and T&M contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) and other government agencies that do not utilize DCAA’s services.  The DCAA has completed audits of the Company’s annual incurred cost proposals for fiscal years 2016 and 2017 and is nearing completion of the incurred cost proposal audits for fiscal year 2018.  We are still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe our reserves for such are adequate. In the opinion of management, adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues are identified, discussed and settled.
v3.19.2
INCOME TAXES
 12 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 19. INCOME TAXES

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

In the second quarter of FY2019 the Company completed its assessment for the income tax effects of the TCJA, including true-up to all provisional amounts previously recorded, within the allowed one-year measurement period provided for under Staff Accounting Bulletin No. 118 on December 22, 2018.  During the year ended June 30, 2019, the Company recognized a $2.2 million tax benefit related to the reduction of our provisional calculation of the one-time transition tax liability and a $0.5 million tax benefit related to its final analysis of its deferred tax remeasurement.

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Domestic

 

$

308,922

 

 

$

279,360

 

 

$

231,982

 

Foreign

 

 

18,987

 

 

 

19,304

 

 

 

16,637

 

Income before income taxes

 

$

327,909

 

 

$

298,664

 

 

$

248,619

 

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

41,675

 

 

$

56,467

 

 

$

54,425

 

State and local

 

 

17,606

 

 

 

13,006

 

 

 

11,334

 

Foreign

 

 

4,033

 

 

 

5,344

 

 

 

4,041

 

Total current

 

 

63,314

 

 

 

74,817

 

 

 

69,800

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(27

)

 

 

(80,395

)

 

 

13,076

 

State and local

 

 

(877

)

 

 

3,481

 

 

 

2,917

 

Foreign

 

 

(105

)

 

 

(410

)

 

 

(845

)

Total deferred

 

 

(1,009

)

 

 

(77,324

)

 

 

15,148

 

Total income tax (benefit) expense

 

$

62,305

 

 

$

(2,507

)

 

$

84,948

 

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Expected tax expense computed at federal statutory rate (1)

 

$

68,861

 

 

$

83,805

 

 

$

87,017

 

State and local taxes, net of federal benefit

 

 

13,216

 

 

 

11,860

 

 

 

9,263

 

Nonincludible and nondeductible items, net

 

 

1,971

 

 

 

1,832

 

 

 

1,087

 

Remeasurement of deferred taxes and transition tax

 

 

(2,182

)

 

 

(86,593

)

 

 

—

 

Effect of foreign tax rates

 

 

(380

)

 

 

(1,261

)

 

 

(2,320

)

R&D tax credit

 

 

(6,755

)

 

 

(3,630

)

 

 

(4,894

)

Other tax credits

 

 

(2,138

)

 

 

(2,102

)

 

 

(1,321

)

ASU 2016-09 share-based compensation

 

 

(7,493

)

 

 

(5,388

)

 

 

(1,390

)

Other

 

 

(2,795

)

 

 

(1,030

)

 

 

(2,494

)

Total income tax (benefit) expense

 

$

62,305

 

 

$

(2,507

)

 

$

84,948

 

 

 

(1)

The U.S. federal statutory income tax rate for FY2019 is 21.0 percent.  The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA.  The federal statutory rate for FY2017 was 35.0 percent.

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation and post-retirement obligations

 

$

29,206

 

 

$

27,842

 

Reserves and accruals

 

 

30,205

 

 

 

30,180

 

Stock-based compensation

 

 

9,881

 

 

 

7,793

 

Deferred rent

 

 

4,876

 

 

 

3,750

 

Interest rate swap

 

 

2,688

 

 

 

—

 

Total deferred tax assets

 

 

76,856

 

 

 

69,565

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Goodwill and other intangible assets

 

 

(257,762

)

 

 

(238,020

)

Unbilled revenue

 

 

(17,640

)

 

 

(17,363

)

Prepaid expenses

 

 

(2,974

)

 

 

(3,991

)

Interest rate swap

 

 

—

 

 

 

(3,701

)

Other

 

 

(3,819

)

 

 

(7,370

)

Total deferred tax liabilities

 

 

(282,195

)

 

 

(270,445

)

Net deferred tax liability

 

$

(205,339

)

 

$

(200,880

)

 

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's consolidated federal income tax returns through June 30, 2014 are no longer subject to audit. The Company is currently under examination by the Internal Revenue Service for year 2015; one state jurisdiction for years 2011 through 2017; and one foreign jurisdiction for years 2011 through 2015. The Company does not expect the resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows.

The effective income tax rate for FY2019 is higher than FY2018 primarily due to the favorable impact of the remeasurement of deferred taxes in FY2018 as a result of the TCJA.  In both periods, the effective tax rate was also favorably affected by excess tax benefits from employee share-based payment awards under ASU 2016-09, a benefit from the research and development tax credit, and gains from the change in value of assets invested in corporate-owned life insurance (COLI) policies.

U.S. income taxes have not been provided for undistributed earnings of foreign subsidiaries that have been permanently reinvested outside the United States. As of June 30, 2019, the estimated deferred tax liability associated with these undistributed earnings is approximately $0.9 million.

The Company’s total liability for unrecognized tax benefits as of June 30, 2019, 2018 and 2017 was approximately $1.5 million, $4.1 million and $1.6 million, respectively. Of the unrecognized tax benefits at June 30, 2019, 2018 and 2017, $1.5 million, $4.1 million and $1.6 million, respectively, if recognized, would impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized benefits is shown in the table below (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Beginning of year

 

$

4,122

 

 

$

1,639

 

 

$

398

 

Additions based on current year tax positions

 

 

676

 

 

 

2,483

 

 

 

1,475

 

Lapse of statute of limitations

 

 

(164

)

 

 

—

 

 

 

(234

)

Reductions based on prior tax year positions

 

 

(3,104

)

 

 

—

 

 

 

—

 

Settlement with taxing authorities

 

 

—

 

 

 

—

 

 

 

—

 

End of year

 

$

1,530

 

 

$

4,122

 

 

$

1,639

 

The Company recognizes net interest and penalties as a component of income tax expense.  Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at June 30, 2019. As of June 30, 2019, the entire balance of unrecognized tax benefits is included in other long-term liabilities.
v3.19.2
RETIREMENT SAVINGS PLANS
 12 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
RETIREMENT SAVINGS PLANS

NOTE 20. RETIREMENT SAVINGS PLANS

401(k) Plan

The Company maintains a defined contribution plan under Section 401(k) of the Internal Revenue Code, the CACI $MART Plan (the 401(k) Plan). Employees can contribute up to 75 percent (subject to certain statutory limitations) of their total cash compensation. The Company provides matching contributions equal to 50 percent of the amount of salary deferral employees elect, up to 8 percent of each employee’s total calendar year cash compensation, as defined. The Company may also make discretionary profit sharing contributions to the 401(k) Plan. Employee contributions vest immediately. Employer contributions vest in full after three- years of employment. Total 401(k) Plan Company contribution expense for the years ended June 30, 2019, 2018, and 2017 were $35.0 million, $27.1 million, and $24.0 million, respectively.

The Company maintains several qualified 401(k) profit-sharing plans (PSP) that cover eligible employees.  Employees are eligible to participate in the PSP beginning on the first of the month following the start of employment and attainment of age 18.  Under the PSP, the Company may make discretionary contributions based on a percentage of the total compensation of all eligible participants.  Company contribution expense for the year ended June 30, 2019, 2018 and 2017 was $32.0 million, $26.3 million and $22.8 million, respectively.

Supplemental Savings Plan

The Company maintains the Supplemental Savings Plan through which, on a calendar year basis, officers at the director level and above can elect to defer for contribution to the Supplemental Savings Plan up to 50 percent of their base compensation and up to 100 percent of their bonuses. The Company provides a contribution of 5 percent of compensation for each participant’s compensation that exceeds the limit as set forth in IRC 401(a)(17) (currently $280,000 per year). The Company also has the option to make annual discretionary contributions. Company contributions vest five-years from the date of enrollment, and vesting is accelerated in the event of a change of control of the Company. Participant deferrals and Company contributions will be credited with the rate of return based on the investment options and asset allocations selected by the Participant. Participants may change their asset allocation as often as daily, if they so choose. A Rabbi Trust has been established to hold and provide a measure of security for the investments that finance benefit payments. Distributions from the Supplemental Savings Plan are made upon retirement, termination, death, or total disability.  The Supplemental Savings Plan also allows for in-service distributions.

Supplemental Savings Plan obligations due to participants totaled $98.9 million at June 30, 2019, of which $6.7 million is included in accrued compensation and benefits in the accompanying consolidated balance sheet. Supplemental Savings Plan obligations increased by $5.0 million during the year ended June 30, 2019, consisting of $4.8 million of investment gains, $10.3 million of participant compensation deferrals, and $1.6 million of Company contributions, offset by $11.7 million of distributions.  

The Company maintains COLI assets in a Rabbi Trust to offset the obligations under the Supplemental Savings Plan. The value of the COLI in the Rabbi Trust was $92.7 million at June 30, 2019 and COLI gains were $4.6 million for the year ended June 30, 2019.  The value of the COLI in the Rabbi Trust was $91.5 million at June 30, 2018 and COLI gains were $3.5 million for the year ended June 30, 2018.

Contribution expense for the Supplemental Savings Plan during the years ended June 30, 2019, 2018, and 2017, was $1.6 million, $1.2 million, and $0.7 million, respectively.
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION
 12 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
STOCK PLANS AND STOCK-BASED COMPENSATION

NOTE 21. STOCK PLANS AND STOCK-BASED COMPENSATION

Historically, the Company grants stock options, SSARs, non-performance-based RSUs and performance-based RSUs to key employees. Stock-based compensation expense is recognized on a straight-line basis ratably over the respective vesting periods.  Performance-based RSUs are subject to achievement of a performance metric in addition to grantee service. Stock-based compensation expense for performance-based RSUs is recognized on an accelerated basis by treating each vesting tranche as if it was a separate grant. A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2019, 2018, and 2017, together with the income tax benefits realized, is as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Stock-based compensation included in indirect costs and

   selling expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock and RSU expense

 

$

25,272

 

 

$

23,628

 

 

$

21,945

 

Income tax benefit recognized for stock-based compensation

 

$

4,865

 

 

$

7,769

 

 

$

7,498

 

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

The incremental income tax benefits realized upon the exercise or vesting of equity instruments are reported as operating cash flows. During the years ended June 30, 2019, 2018, and 2017, the Company recognized $9.2 million, $6.3 million, and $1.6 million of excess tax benefits, respectively, which have been reported as operating cash inflows in the accompanying consolidated statements of cash flows.

Equity Grants and Valuation

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

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

Upon the vesting of restricted shares and RSUs, the Company fulfills its obligations under the equity instrument agreements by either issuing new shares of authorized common stock or by issuing shares from treasury. The total number of shares authorized by shareholders for grants under the 2016 Plan and its predecessor plan was 1,200,000 plus any forfeitures from the 2006 Plan. The aggregate number of grants that may be made may exceed this approved amount as forfeited restricted stock and RSUs become available for future grants. As of June 30, 2019, cumulative grants of 592,888 equity instruments underlying the shares authorized have been awarded, and 138,183 of these instruments have been forfeited.

The Company granted performance-based stock awards to key employees in October of 2018 and September of 2017 and 2016. The final number of RSUs that are earned by participants and vest is based on the achievement of a specified EPS for the fiscal year and on the average share price for the 90-day period ended for the following three years. If the 90-day average share price of the Company’s stock in years one, two and three exceeds the 90-day average share price at the grant date by 100 percent or more the number of shares ultimately awarded could range up to 200 percent of the specified target award. In addition to the performance and market conditions, there is a service vesting condition that stipulates 50 percent of the award will vest 3 years from the grant date and 50 percent will vest approximately 4 years from the grant date, depending on the award date.

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

 

 

 

Performance-based stock awards granted

 

 

Number of additional shares earned under performance-based stock awards

 

Fiscal year 2019

 

 

129,108

 

 

 

—

 

Fiscal year 2018

 

 

185,056

 

 

 

20,116

 

Fiscal year 2017

 

 

193,420

 

 

 

73,065

 

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

We determine the fair value of our market-based and performance-based RSUs at the date of grant using generally accepted valuation techniques and the closing market price of our stock. The fair value for the annual grant made in October 2018 was determined using a Monte Carlo simulation model incorporating the following factors:  90-day average stock price at the grant date of $184.96 a share, risk free rate of return of 2.88 percent and expected volatility of 27.76 percent. Stock-based compensation cost is recognized as expense on an accelerated basis over the requisite service period for performance-based awards.  The weighted-average fair value of RSUs granted during the years ended June 30, 2019, 2018, and 2017, was $201.27, $146.27, and $104.45, respectively.

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

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

Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2019, 2018, and 2017, together with the corresponding weighted-average fair values, are as follows:

 

 

 

Restricted Stock and

Restricted Stock Units

 

 

 

Number

of Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested at June 30, 2016

 

 

873,854

 

 

$

64.79

 

Granted

 

 

256,853

 

 

 

104.45

 

Vested

 

 

(233,296

)

 

 

65.07

 

Forfeited

 

 

(62,804

)

 

 

93.12

 

Unvested at June 30, 2017

 

 

834,607

 

 

$

71.20

 

Granted

 

 

276,871

 

 

 

146.27

 

Vested

 

 

(394,293

)

 

 

66.29

 

Forfeited

 

 

(53,198

)

 

 

95.03

 

Unvested at June 30, 2018

 

 

663,987

 

 

$

107.96

 

Granted

 

 

274,261

 

 

 

201.27

 

Vested

 

 

(276,626

)

 

 

61.85

 

Forfeited

 

 

(32,816

)

 

 

123.55

 

Unvested at June 30, 2019

 

 

628,806

 

 

$

134.10

 

The total intrinsic value of RSUs that vested during the years ended June 30, 2019, 2018, and 2017 was $53.0 million, $55.2 million and $26.6 million, respectively, and the income tax benefit realized was $10.2 million, $13.3 million and $4.8 million, respectively.

As of June 30, 2019, there was no unrecognized compensation cost related to SSARs and stock options and $42.0 million of unrecognized compensation cost related to restricted stock and RSUs scheduled to be recognized over a weighted-average period of 2.5 years.

        Stock Purchase Plans

The Company adopted the 2002 Employee Stock Purchase Plan (ESPP), MSPP and DSPP in November 2002, and implemented these plans beginning July 1, 2003. There are 1,250,000, 500,000, and 75,000 shares authorized for grants under the ESPP, MSPP and DSPP, respectively.

The ESPP allows eligible full-time employees to purchase shares of common stock at 95 percent of the fair market value of a share of common stock on the last day of the quarter. The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter. The ESPP is a qualified plan under Section 423 of the Internal Revenue Code and, for financial reporting purposes, was amended effective July 1, 2005 so as to be considered non-compensatory. Accordingly, there is no stock-based compensation expense associated with shares acquired under the ESPP. As of June 30, 2019, participants have purchased 1,183,510 shares under the ESPP, at a weighted-average price per share of $57.18. Of these shares, 34,186 were purchased by employees at a weighted-average price per share of $159.30 during the year ended June 30, 2019. During the year ended June 30, 2013, the Company established a 10b5-1 plan to facilitate the open market purchase of shares of Company stock to satisfy its obligations under the ESPP.

The MSPP provides those senior executives with stock holding requirements a mechanism to receive RSUs in lieu of up to 100 percent of their annual bonus. For the fiscal years ended June 30, 2019, 2018, and 2017, RSUs awarded in lieu of bonuses earned were granted at 85 percent of the closing price of a share of the Company’s common stock on the date of the award, as reported by the New York Stock Exchange.  RSUs granted under the MSPP vest at the earlier of 1) three-years from the grant date, 2) upon a change of control of the Company, 3) upon a participant’s retirement at or after age 65, or 4) upon a participant’s death or permanent disability. Vested RSUs are settled in shares of common stock. The Company recognizes the value of the discount applied to RSUs granted under the MSPP as stock compensation expense ratably over the three-year vesting period. 

Activity related to the MSPP during the year ended June 30, 2019 is as follows:

 

 

 

MSPP

 

RSUs outstanding, June 30, 2018

 

 

3,938

 

Granted

 

 

1,560

 

Issued

 

 

(691

)

Forfeited

 

 

(1,886

)

RSUs outstanding, June 30, 2019

 

 

2,921

 

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

 

$

125.82

 

 

The DSPP allows directors to elect to receive RSUs at the market price of the Company’s common stock on the date of the award in lieu of up to 100 percent of their annual retainer fees. Vested RSUs are settled in shares of common stock.  There were no DSPP awards outstanding during the year ended June 30, 2019.
v3.19.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 22. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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

 

•

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

 

•

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

 

•

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

The Company’s financial instruments measured at fair value included interest rate swap agreements and contingent consideration in connection with business combinations.  The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and June 30, 2018, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

As of June 30,

 

 

 

Financial Statement

 

Fair Value

 

2019

 

 

2018

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Contingent consideration

 

Other accrued expenses and

   current liabilities

 

Level 3

 

$

12,000

 

 

$

693

 

Contingent consideration

 

Other long-term liabilities

 

Level 3

 

$

—

 

 

$

11,000

 

Interest rate swap agreements

 

Prepaid expenses and other

   current assets

 

Level 2

 

$

—

 

 

$

672

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

2,081

 

 

$

13,405

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

43

 

 

$

—

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

12,264

 

 

$

—

 

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

Various acquisitions completed during prior fiscal years (see Note 4) contained provisions requiring that the Company pay contingent consideration in the event the acquired businesses achieved certain specified earnings results during the two and three year periods subsequent to each acquisition.  The Company determined the fair value of the contingent consideration as of each acquisition date using a valuation model which included the evaluation of the most likely outcome and the application of an appropriate discount rate.  At the end of each reporting period, the fair value of the contingent consideration was remeasured and any changes were recorded in indirect costs and selling expenses.  During the years ended June 30, 2019 and 2018, this remeasurement resulted in a $1.0 million and $9 thousand net increase to the liability recorded, respectively.
v3.19.2
EARNINGS PER SHARE
 12 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

NOTE 23. EARNINGS PER SHARE

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Net income

 

$

265,604

 

 

$

301,171

 

 

$

163,671

 

Weighted-average number of basic shares outstanding

   during the period

 

 

24,833

 

 

 

24,616

 

 

 

24,401

 

Dilutive effect of RSUs after application of treasury stock method

 

 

562

 

 

 

639

 

 

 

668

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,395

 

 

 

25,255

 

 

 

25,069

 

Basic earnings per share

 

$

10.70

 

 

$

12.23

 

 

$

6.71

 

Diluted earnings per share

 

$

10.46

 

 

$

11.93

 

 

$

6.53

 

 

The calculation of diluted earnings per share for the year ended June 30, 2019 includes the shares underlying the performance-based RSUs granted in October 2018, September 2017 and September 2016.  

v3.19.2
QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Jun. 30, 2019
Quarterly Financial Data [Abstract]  
QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 24. QUARTERLY FINANCIAL DATA (UNAUDITED)

This data is unaudited, but in the opinion of management, includes and reflects all adjustments that are normal and recurring in nature, and necessary, for a fair presentation of the selected data for these interim periods. Quarterly condensed financial operating results of the Company for the years ended June 30, 2019 and 2018, are presented below (in thousands except per share data).

 

 

 

Year Ended June 30, 2019

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,165,864

 

 

$

1,181,641

 

 

$

1,264,958

 

 

$

1,373,878

 

Income from operations

 

$

99,600

 

 

$

102,263

 

 

$

94,908

 

 

$

81,096

 

Net income

 

$

78,833

 

 

$

68,596

 

 

$

68,145

 

 

$

50,030

 

Basic earnings per share

 

$

3.19

 

 

$

2.76

 

 

$

2.74

 

 

$

2.01

 

Diluted earnings per share

 

$

3.10

 

 

$

2.71

 

 

$

2.69

 

 

$

1.96

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,737

 

 

 

24,856

 

 

 

24,866

 

 

 

24,875

 

Diluted

 

 

25,424

 

 

 

25,338

 

 

 

25,348

 

 

 

25,472

 

 

 

 

Year Ended June 30, 2018

 

 

 

First

 

 

Second (1)

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,085,814

 

 

$

1,087,860

 

 

$

1,124,100

 

 

$

1,170,086

 

Income from operations

 

$

67,304

 

 

$

88,262

 

 

$

104,794

 

 

$

80,340

 

Net income attributable to CACI

 

$

42,046

 

 

$

142,795

 

 

$

64,499

 

 

$

51,831

 

Basic earnings per share

 

$

1.72

 

 

$

5.80

 

 

$

2.62

 

 

$

2.10

 

Diluted earnings per share

 

$

1.67

 

 

$

5.66

 

 

$

2.56

 

 

$

2.05

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,487

 

 

 

24,622

 

 

 

24,656

 

 

 

24,700

 

Diluted

 

 

25,243

 

 

 

25,211

 

 

 

25,234

 

 

 

25,331

 

 

 

(1)

Net income for the second quarter of FY2019 includes a net benefit related to the TCJA.  See Note 19.

 
v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

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

Use of Estimates

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

Revenue Recognition

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

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

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

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

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

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

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

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

Costs of Revenue

Costs of revenue include all direct contract costs including subcontractor costs, as well as indirect overhead costs and selling, general and administrative expenses that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also include expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations.
Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

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

Contract Assets

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

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

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

Contract Liabilities

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

Remaining Performance Obligations

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

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

Cash and Cash Equivalents

Cash and Cash Equivalents

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

Inventories

Inventories are stated at the lower of cost or net realizable value.  A provision for damaged, deteriorated, or obsolete inventory is recorded based on historical usage patterns and forecasted sales.  As of June 30, 2019 and 2018, the Company had $47.2 million and $25.9 million of net inventory, respectively, included within prepaid expenses and other current assets on the accompanying consolidated balance sheets.
Accounting for Business Combinations and Goodwill

Accounting for Business Combinations and Goodwill

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

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

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

The Company evaluates goodwill as of the first day of the fiscal fourth quarter.  In addition, the Company will perform interim impairment testing should circumstances requiring it arise.  The Company completed its annual goodwill assessment as of April 1, 2019 and no impairment charge was necessary as a result of this assessment.
Long-Lived Assets (Excluding Goodwill)

Long-Lived Assets (Excluding Goodwill)

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

External Software Development Costs

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

Supplemental Retirement Savings Plan

The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan.  Each participant directs his or her investments in the Supplemental Savings Plan (see Note 20).  

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

Income Taxes

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

Costs of Acquisitions

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

Foreign Currency Translation

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

Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock unit (RSUs) that are no longer subject to a market or performance condition.  Information about the weighted-average number of basic and diluted shares is presented in Note 23.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

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

The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2019. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.  
Concentrations of Credit Risk

Concentrations of Credit Risk

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

Other Comprehensive Income (Loss)

Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $6.4 million, $4.2 million and $9.5 million for the years ended June 30, 2019, 2018 and 2017, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 16).

As of June 30, 2019 and 2018, accumulated other comprehensive loss included a loss of $33.6 million and $27.5 million, respectively, related to foreign currency translation adjustments, a loss of $9.0 million and a gain of $0.9 million, respectively, related to the fair value of its interest rate swap agreements, and a loss of $0.6 million and $0.5 million, respectively, related to unrecognized post-retirement costs.  
Commitments and Contingencies

Commitments and Contingencies

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

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs associated with internal-use software (Subtopic 350-40). ASU 2018-15 becomes effective for the Company in the first quarter of FY2021 and may be adopted either retrospectively or prospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes the presentation of net periodic pension and postretirement cost (net benefit cost) on the consolidated statements of operations.  The service cost component of net benefit cost will continue to be part of operating income while all other components of net benefit cost (interest costs, actuarial gains and losses and amortization of prior service cost) will be shown outside of operating income.  The Company adopted this standard on July 1, 2018 and applied the standard retrospectively.  The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified on the statement of cash flows to reduce diversity in practice.  The Company adopted this standard on July 1, 2018 and applied the standard retrospectively.  As a result of adoption, the Company reclassified $3.7 million of proceeds received from the settlement of corporate owned life insurance (COLI) policies from operating activities to investing activities on the Consolidated Statement of Cash Flows for the year ended June 30, 2018.  During the year ended June 30, 2019, $2.7 million of COLI proceeds are presented as investing activities.  

In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance on accounting for leases.  The new standard requires lessees to put virtually all leases on the balance sheet by recognizing lease assets and lease liabilities. Lessor accounting is largely unchanged from that applied under previous guidance. The amended guidance is effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2018, and requires a modified retrospective approach.  Early adoption is permitted. The Company adopted this standard on July 1, 2019 for its FY2020, and has substantially completed its adoption, including measuring its existing leases, reviewing lease contracts, implementing a new lease accounting solution and establishing accounting policy and internal control changes. The Company has elected to adopt certain practical expedients provided under ASC 842, including reassessment of whether expired or existing contracts contain leases, reassessment of lease classification for expired or existing leases, and reassessing initial direct costs for existing leases. We expect that upon adoption we will recognize a right-of-use asset ranging from $345-$365 million and lease liability ranging from $390-$410 million on our balance sheet, which is inclusive of required conforming balance sheet reclassifications. We do not expect the standard to have a material impact on our cash flows or results of operations. The Company is continuing to refine its processes in order to meet the accounting and disclosure requirements upon adoption of Topic 842 in the first quarter of FY2020.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as amended (ASC 606), which superseded nearly all existing revenue recognition guidance under GAAP.  The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services.  ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than were required under previous GAAP.  In addition, ASU 2014-09 added ASC 340-40 to codify guidance on other assets and deferred costs for contracts with customers.  

Effective July 1, 2018, the Company adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption.  In addition, for our fiscal year ending June 30, 2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard.  The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605.

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

 

 

June 30, 2018

As Reported

Under

ASC 605

 

 

Adjustments

Due to

ASC 606

 

 

July 1, 2018

Balance Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

806,871

 

 

$

20,454

 

 

$

827,325

 

Prepaid expenses and other current assets

 

58,126

 

 

 

2,342

 

 

 

60,468

 

Other long-term assets

 

39,175

 

 

 

3,923

 

 

 

43,098

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

150,602

 

 

 

2,212

 

 

 

152,814

 

Deferred income taxes

 

200,880

 

 

 

6,639

 

 

 

207,519

 

Other long-term liabilities

 

85,187

 

 

 

98

 

 

 

85,285

 

Retained earnings

 

2,126,790

 

 

 

17,770

 

 

 

2,144,560

 

ASC 606 changed the pattern of revenue recognition for some of our contracts with customers.  For our award and incentive fee contracts, we recognize an estimated amount of variable consideration throughout the performance period rather than defer recognition of the relevant portion of fee until customer notification of the amount earned.  Some of our fixed price services-type contracts in which revenue was previously recognized on a straight-line basis over the performance period converted to recognition of revenue using a cost-to-cost input method to measure our progress towards the complete satisfaction of the performance obligation.  The cumulative effect of these changes in the pattern of revenue recognition resulted in an increase to accounts receivable with an offset to retained earnings.

In addition, ASC 606 changed the timing of revenue recognition for license renewal performance obligations.  Under prior GAAP, license renewals were generally recognized in the period the renewal contract was executed.  However, upon adoption of ASC 606, the consideration received for a license renewal may not be recognized until the start of the term of the renewal.  The cumulative effect of this change resulted in an increase to contract liabilities with an offset to retained earnings.

The adoption of ASC 606 did not have a material impact on the Company’s revenue recognition for cost-plus-fee, fixed price/level-of-effort, time-and-materials (T&M), fixed price contracts previously recognized under ASC 605-35, and fixed price product revenue arrangements.

Under ASC 340-40, the Company capitalizes certain costs to fulfill and obtain a contract.  The cumulative effect of this change resulted in an increase to contract assets with an offset to retained earnings.  These capitalized costs are amortized over the period of contract performance as revenue is recognized from the transfer of goods or services and the underlying performance obligation is satisfied.    

In addition, under the modified retrospective approach for adopting ASC 606, for FY2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard.  The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605.  The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the year ended June 30, 2019 (in thousands):

 

 

Year Ended June 30, 2019

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Revenue

$

4,975,846

 

 

$

10,495

 

 

$

4,986,341

 

Costs of revenue:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

3,304,053

 

 

 

—

 

 

 

3,304,053

 

Indirect costs and selling expenses

 

1,220,317

 

 

 

(1,773

)

 

 

1,218,544

 

Depreciation and amortization

 

85,877

 

 

 

—

 

 

 

85,877

 

Total costs of revenue

 

4,610,247

 

 

 

(1,773

)

 

 

4,608,474

 

Income from operations

 

365,599

 

 

 

12,268

 

 

 

377,867

 

Interest expense and other, net

 

49,958

 

 

 

—

 

 

 

49,958

 

Income before taxes

$

315,641

 

 

$

12,268

 

 

$

327,909

 

Income tax expense

 

59,179

 

 

 

3,126

 

 

 

62,305

 

Net income

$

256,462

 

 

$

9,142

 

 

$

265,604

 

Basic earnings per share

$

10.33

 

 

$

0.37

 

 

$

10.70

 

Diluted earnings per share

$

10.10

 

 

$

0.36

 

 

$

10.46

 

For the year ended June 30, 2019, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition.

The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of June 30, 2019 (in thousands):

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

841,781

 

 

$

28,059

 

 

$

869,840

 

Prepaid expenses and other current assets

 

86,967

 

 

 

2,685

 

 

 

89,652

 

Other long-term assets

 

27,983

 

 

 

5,353

 

 

 

33,336

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

231,822

 

 

 

3,789

 

 

 

235,611

 

Deferred income taxes

 

199,943

 

 

 

5,396

 

 

 

205,339

 

Other long-term liabilities

 

107,932

 

 

 

—

 

 

 

107,932

 

Retained earnings

 

2,383,252

 

 

 

26,912

 

 

 

2,410,164

 

 
v3.19.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)
 12 Months Ended
Jun. 30, 2019
ASU 2014-09  
Summary of Impact of Adoption of ASC 606 on Financial Statements

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

 

 

June 30, 2018

As Reported

Under

ASC 605

 

 

Adjustments

Due to

ASC 606

 

 

July 1, 2018

Balance Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

806,871

 

 

$

20,454

 

 

$

827,325

 

Prepaid expenses and other current assets

 

58,126

 

 

 

2,342

 

 

 

60,468

 

Other long-term assets

 

39,175

 

 

 

3,923

 

 

 

43,098

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

150,602

 

 

 

2,212

 

 

 

152,814

 

Deferred income taxes

 

200,880

 

 

 

6,639

 

 

 

207,519

 

Other long-term liabilities

 

85,187

 

 

 

98

 

 

 

85,285

 

Retained earnings

 

2,126,790

 

 

 

17,770

 

 

 

2,144,560

 
The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the year ended June 30, 2019 (in thousands):

 

 

Year Ended June 30, 2019

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Revenue

$

4,975,846

 

 

$

10,495

 

 

$

4,986,341

 

Costs of revenue:

 

 

 

 

 

 

 

 

 

 

 

Direct costs

 

3,304,053

 

 

 

—

 

 

 

3,304,053

 

Indirect costs and selling expenses

 

1,220,317

 

 

 

(1,773

)

 

 

1,218,544

 

Depreciation and amortization

 

85,877

 

 

 

—

 

 

 

85,877

 

Total costs of revenue

 

4,610,247

 

 

 

(1,773

)

 

 

4,608,474

 

Income from operations

 

365,599

 

 

 

12,268

 

 

 

377,867

 

Interest expense and other, net

 

49,958

 

 

 

—

 

 

 

49,958

 

Income before taxes

$

315,641

 

 

$

12,268

 

 

$

327,909

 

Income tax expense

 

59,179

 

 

 

3,126

 

 

 

62,305

 

Net income

$

256,462

 

 

$

9,142

 

 

$

265,604

 

Basic earnings per share

$

10.33

 

 

$

0.37

 

 

$

10.70

 

Diluted earnings per share

$

10.10

 

 

$

0.36

 

 

$

10.46

 

For the year ended June 30, 2019, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition.

The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of June 30, 2019 (in thousands):

 

 

As Adjusted

Under

ASC 605

 

 

Effect of

ASC 606

 

 

As Reported

Under

ASC 606

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

$

841,781

 

 

$

28,059

 

 

$

869,840

 

Prepaid expenses and other current assets

 

86,967

 

 

 

2,685

 

 

 

89,652

 

Other long-term assets

 

27,983

 

 

 

5,353

 

 

 

33,336

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Other accrued expenses and current liabilities

 

231,822

 

 

 

3,789

 

 

 

235,611

 

Deferred income taxes

 

199,943

 

 

 

5,396

 

 

 

205,339

 

Other long-term liabilities

 

107,932

 

 

 

—

 

 

 

107,932

 

Retained earnings

 

2,383,252

 

 

 

26,912

 

 

 

2,410,164

 
v3.19.2
ACQUISITIONS (Tables) - LGS
 12 Months Ended
Jun. 30, 2019
Business Acquisition [Line Items]  
Assets Acquired and Liabilities Assumed Based on the Company’s preliminary valuation, the total estimated consideration of $750.5 million has been allocated to assets acquired and liabilities assumed as follows (in thousands):

 

Accounts receivable

 

$

83,320

 

Prepaid expenses and other current assets

 

 

20,781

 

Property and equipment

 

 

23,283

 

Intangible assets

 

 

147,650

 

Goodwill

 

 

526,879

 

Other long-term assets

 

 

877

 

Accounts payable

 

 

(10,309

)

Accrued compensation and benefits

 

 

(22,347

)

Other accrued expenses and current liabilities

 

 

(8,823

)

Deferred income taxes

 

 

(5,171

)

Other long-term liabilities

 

 

(5,644

)

Total estimated consideration

 

$

750,496

 

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

Revenue

 

$

5,271,872

 

 

$

4,822,318

 

Net income

 

 

275,630

 

 

 

289,143

 

Basic EPS

 

 

11.10

 

 

 

11.75

 

Diluted EPS

 

 

10.85

 

 

 

11.45

 

 
v3.19.2
ACCOUNTS RECEIVABLE (Tables)
 12 Months Ended
Jun. 30, 2019
Accounts Receivable Net [Abstract]  
Schedule of Total Accounts Receivable

Total accounts receivable, net of allowance for doubtful accounts of $4.2 million, $3.7 million, and $3.6 million at June 30, 2019, 2018, and 2017, respectively, consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Billed receivables

 

$

638,135

 

 

$

625,336

 

Billable receivables

 

 

141,632

 

 

 

129,183

 

Unbilled receivables

 

 

90,073

 

 

 

52,352

 

Total accounts receivable, current

 

 

869,840

 

 

 

806,871

 

Unbilled receivables, long-term

 

 

7,381

 

 

 

8,620

 

Total accounts receivable

 

$

877,221

 

 

$

815,491

 

 
v3.19.2
GOODWILL (Tables)
 12 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Roll Forward of Goodwill

The changes in the carrying amount of goodwill for the years ended June 30, 2019 and 2018 are as follows (in thousands):

 

 

 

Domestic

 

 

International

 

 

Total

 

Balance at June 30, 2017

 

$

2,479,496

 

 

$

97,939

 

 

$

2,577,435

 

Goodwill acquired (1)

 

 

35,024

 

 

 

6,867

 

 

 

41,891

 

Foreign currency translation

 

 

—

 

 

 

1,509

 

 

 

1,509

 

Balance at June 30, 2018

 

$

2,514,520

 

 

$

106,315

 

 

$

2,620,835

 

Goodwill acquired (1)

 

 

710,165

 

 

 

9,038

 

 

 

719,203

 

Foreign currency translation

 

 

—

 

 

 

(3,959

)

 

 

(3,959

)

Balance at June 30, 2019

 

$

3,224,685

 

 

$

111,394

 

 

$

3,336,079

 

 

 

(1)

Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.19.2
INTANGIBLE ASSETS (Tables)
 12 Months Ended
Jun. 30, 2019
Finite Lived Intangible Assets Net [Abstract]  
Schedule of Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

June 30,

 

 

 

2019

 

 

2018 (1)

 

Intangible assets

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

$

549,552

 

 

$

435,933

 

Acquired technologies

 

 

137,959

 

 

 

13,237

 

Other

 

 

800

 

 

 

804

 

Intangible assets

 

 

688,311

 

 

 

449,974

 

Less accumulated amortization

 

 

 

 

 

 

 

 

Customer contracts and related customer relationships

 

 

(236,935

)

 

 

(199,018

)

Acquired technologies

 

 

(14,750

)

 

 

(8,761

)

Other

 

 

(511

)

 

 

(440

)

Accumulated amortization

 

 

(252,196

)

 

 

(208,219

)

Total intangible assets, net

 

$

436,115

 

 

$

241,755

 

 

 

(1)

During FY2019 and FY2018, the Company removed $1.5 million and $264.1 million, respectively, in fully amortized intangible assets.
Expected Amortization Expense Expected amortization expense for each of the fiscal years through June 30, 2024 and for years thereafter is as follows (in thousands):

 

 

 

Amount

 

Year ending June 30, 2020

 

$

57,616

 

Year ending June 30, 2021

 

 

56,467

 

Year ending June 30, 2022

 

 

53,318

 

Year ending June 30, 2023

 

 

48,143

 

Year ending June 30, 2024

 

 

41,401

 

Thereafter

 

 

179,170

 

Total intangible assets, net

 

$

436,115

 
v3.19.2
PROPERTY AND EQUIPMENT (Tables)
 12 Months Ended
Jun. 30, 2019
Property Plant And Equipment [Abstract]  
Schedule of Property and Equipment

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Equipment and furniture

 

$

193,940

 

 

$

152,682

 

Leasehold improvements

 

 

149,935

 

 

 

109,849

 

Property and equipment, at cost

 

 

343,875

 

 

 

262,531

 

Less accumulated depreciation and amortization

 

 

(194,199

)

 

 

(161,391

)

Total property and equipment, net

 

$

149,676

 

 

$

101,140

 
v3.19.2
ACCRUED COMPENSATION AND BENEFITS (Tables)
 12 Months Ended
Jun. 30, 2019
Employee Related Liabilities Current [Abstract]  
Schedule of Accrued Compensation and Benefits

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Accrued salaries and withholdings

 

$

164,631

 

 

$

144,213

 

Accrued leave

 

 

97,832

 

 

 

88,547

 

Accrued fringe benefits

 

 

27,811

 

 

 

26,682

 

Total accrued compensation and benefits

 

$

290,274

 

 

$

259,442

 
v3.19.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES (Tables)
 12 Months Ended
Jun. 30, 2019
Other Accrued Expenses And Current Liabilities [Abstract]  
Schedule of Other Accrued Expenses and Current Liabilities

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Vendor obligations

 

$

90,238

 

 

$

91,048

 

Deferred revenue (see Note 12)

 

 

55,667

 

 

 

41,744

 

MARPA Facility payable (see Note 13)

 

 

54,567

 

 

 

—

 

Other

 

 

35,139

 

 

 

17,810

 

Total other accrued expenses and current liabilities

 

$

235,611

 

 

$

150,602

 
v3.19.2
REVENUE RECOGNITION (Tables)
 12 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor

Revenue by Contract Type

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Cost-plus-fee

 

$

2,764,291

 

 

$

—

 

 

$

2,764,291

 

Firm fixed-price

 

 

1,365,052

 

 

 

100,507

 

 

 

1,465,559

 

Time and materials

 

 

700,107

 

 

 

56,384

 

 

 

756,491

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Customer Information

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Department of Defense

 

$

3,489,854

 

 

$

—

 

 

$

3,489,854

 

Federal civilian agencies

 

 

1,263,681

 

 

 

—

 

 

 

1,263,681

 

Commercial and other

 

 

75,915

 

 

 

156,891

 

 

 

232,806

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Prime or Subcontractor

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

 

 

 

Year Ended June 30, 2019

 

 

 

Domestic

 

 

International

 

 

Total

 

Prime contractor

 

$

4,429,439

 

 

$

156,891

 

 

$

4,586,330

 

Subcontractor

 

 

400,011

 

 

 

—

 

 

 

400,011

 

Total

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 
v3.19.2
CONTRACT BALANCES (Tables)
 12 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Contract Assets and Liabilities

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

 

Description of Contract Related Balance

 

Financial Statement Classification

 

June 30,

2019

 

 

July 1,

2018 (1)

 

Contract assets – current:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, net

 

$

90,073

 

 

$

72,511

 

Costs to obtain – short-term

 

Prepaid expenses and other current assets

 

 

2,685

 

 

 

2,342

 

Contract assets – noncurrent:

 

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

Accounts receivable, long-term

 

 

7,381

 

 

 

8,620

 

Costs to obtain – long-term

 

Other long-term assets

 

 

5,353

 

 

 

3,923

 

Contract liabilities – current:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities

 

Other accrued expenses and current liabilities

 

 

(55,667

)

 

 

(43,940

)

Contract liabilities – noncurrent:

 

 

 

 

 

 

 

 

 

 

Deferred revenue and other contract

   liabilities

 

Other long-term liabilities

 

 

(7,445

)

 

 

(4,740

)

Net contract assets (liabilities)

 

 

 

$

42,380

 

 

$

38,716

 

 

 

(1)

Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.
v3.19.2
SALES OF RECEIVABLES (Tables)
 12 Months Ended
Jun. 30, 2019
Transfers And Servicing Of Financial Assets [Abstract]  
Summary of MARPA Facility Activity

MARPA Facility activity consisted of the following (in thousands):

 

 

 

As of and for the

Year Ended

June 30, 2019

 

Beginning balance:

 

 

 

 

Sales of receivables

 

$

1,126,395

 

Cash collections

 

 

(933,868

)

Outstanding balance sold to Purchaser: (1)

 

 

192,527

 

Cash collected, not remitted to Purchaser (2)

 

 

(54,567

)

Remaining sold receivables

 

$

137,960

 

 

 

(1)

Represents the increase to cash flows from operations.

 

(2)

Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2019.  This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.19.2
LONG-TERM DEBT (Tables)
 12 Months Ended
Jun. 30, 2019
Long Term Debt [Abstract]  
Schedule of Long-term Debt

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Bank credit facility – term loans

 

$

891,475

 

 

$

938,394

 

Bank credit facility – revolver loans

 

 

785,000

 

 

 

135,000

 

Principal amount of long-term debt

 

 

1,676,475

 

 

 

1,073,394

 

Less unamortized discounts and debt issuance costs

 

 

(11,462

)

 

 

(11,054

)

Total long-term debt

 

 

1,665,013

 

 

 

1,062,340

 

Less current portion

 

 

(46,920

)

 

 

(46,920

)

Long-term debt, net of current portion

 

$

1,618,093

 

 

$

1,015,420

 

 
Cash Flow Hedges

The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2019, 2018 and 2017 is as follows (in thousands):

 

 

 

Interest Rate Swaps

 

 

 

2019

 

 

2018

 

 

2017

 

Gain (loss) recognized in other comprehensive income

 

$

(14,011

)

 

$

6,344

 

 

$

6,872

 

Amounts reclassified to earnings from accumulated

   other comprehensive loss

 

 

(3,903

)

 

 

1,129

 

 

 

7,715

 

Net current period other comprehensive income (loss)

 

$

(17,914

)

 

$

7,473

 

 

$

14,587

 
Aggregate Maturities of Long-term Debt

The aggregate maturities of long-term debt at June 30, 2019 are as follows (in thousands):

 

Year ending June 30,

 

 

 

 

2020

 

$

46,920

 

2021

 

 

46,920

 

2022

 

 

46,920

 

2023

 

 

46,920

 

2024

 

 

1,488,795

 

Principal amount of long-term debt

 

 

1,676,475

 

Less unamortized discounts and debt issuance costs

 

 

(11,462

)

Total long-term debt

 

$

1,665,013

 
v3.19.2
LEASES (Tables)
 12 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases Future minimum lease payments due under non-cancelable leases as of June 30, 2019, are as follows (in thousands):

 

Year ending June 30:

 

 

 

 

2020

 

$

81,027

 

2021

 

 

72,331

 

2022

 

 

63,655

 

2023

 

 

54,056

 

2024

 

 

43,691

 

Thereafter

 

 

132,792

 

Total minimum lease payments

 

$

447,552

 
v3.19.2
OTHER LONG-TERM LIABILITIES (Tables)
 12 Months Ended
Jun. 30, 2019
Other Liabilities Noncurrent [Abstract]  
Schedule of Other Long-Term Liabilities

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Deferred rent, net of current portion

 

$

41,427

 

 

$

32,768

 

Interest rate swap agreements

 

 

12,264

 

 

 

—

 

Deferred and contingent acquisition consideration

 

 

6,510

 

 

 

11,000

 

Deferred revenue

 

 

7,445

 

 

 

4,642

 

Accrued post-retirement obligations

 

 

5,982

 

 

 

5,651

 

Long-term incentive compensation

 

 

13,085

 

 

 

11,935

 

Reserve for unrecognized tax benefits (see Note 19)

 

 

1,544

 

 

 

4,195

 

Transition tax

 

 

4,472

 

 

 

8,128

 

Other

 

 

15,203

 

 

 

6,868

 

Total other long-term liabilities

 

$

107,932

 

 

$

85,187

 

 
v3.19.2
BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Summarized Financial Information of Reportable Segments Summarized financial information concerning the Company’s reportable segments is shown in the following tables.

 

 

 

Domestic

Operations

 

 

International

Operations

 

 

Total

 

 

 

(in thousands)

 

Year Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,829,450

 

 

$

156,891

 

 

$

4,986,341

 

Net income

 

 

249,793

 

 

 

15,811

 

 

 

265,604

 

Net assets

 

 

2,206,109

 

 

 

165,357

 

 

 

2,371,466

 

Goodwill

 

 

3,224,685

 

 

 

111,394

 

 

 

3,336,079

 

Total long-term assets

 

 

3,927,783

 

 

 

127,540

 

 

 

4,055,323

 

Total assets

 

 

4,876,399

 

 

 

210,444

 

 

 

5,086,843

 

Capital expenditures

 

 

46,406

 

 

 

1,496

 

 

 

47,902

 

Depreciation and amortization

 

 

81,205

 

 

 

4,672

 

 

 

85,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,304,602

 

 

$

163,258

 

 

$

4,467,860

 

Net income

 

 

286,024

 

 

 

15,147

 

 

 

301,171

 

Net assets

 

 

1,948,768

 

 

 

158,119

 

 

 

2,106,887

 

Goodwill

 

 

2,514,520

 

 

 

106,315

 

 

 

2,620,835

 

Total long-term assets

 

 

2,975,620

 

 

 

127,395

 

 

 

3,103,015

 

Total assets

 

 

3,829,417

 

 

 

204,789

 

 

 

4,034,206

 

Capital expenditures

 

 

40,639

 

 

 

955

 

 

 

41,594

 

Depreciation and amortization

 

 

67,891

 

 

 

4,305

 

 

 

72,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

4,217,488

 

 

$

137,129

 

 

$

4,354,617

 

Net income

 

 

150,271

 

 

 

13,400

 

 

 

163,671

 

Net assets

 

 

1,652,736

 

 

 

140,985

 

 

 

1,793,721

 

Goodwill

 

 

2,479,496

 

 

 

97,939

 

 

 

2,577,435

 

Total long-term assets

 

 

2,912,488

 

 

 

118,692

 

 

 

3,031,180

 

Total assets

 

 

3,716,893

 

 

 

194,189

 

 

 

3,911,082

 

Capital expenditures

 

 

41,832

 

 

 

1,436

 

 

 

43,268

 

Depreciation and amortization

 

 

67,042

 

 

 

4,718

 

 

 

71,760

 

 
v3.19.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income Loss Before Income Tax Expense

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Domestic

 

$

308,922

 

 

$

279,360

 

 

$

231,982

 

Foreign

 

 

18,987

 

 

 

19,304

 

 

 

16,637

 

Income before income taxes

 

$

327,909

 

 

$

298,664

 

 

$

248,619

 
Schedule of Components of Income Tax Expense (Benefit)

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

41,675

 

 

$

56,467

 

 

$

54,425

 

State and local

 

 

17,606

 

 

 

13,006

 

 

 

11,334

 

Foreign

 

 

4,033

 

 

 

5,344

 

 

 

4,041

 

Total current

 

 

63,314

 

 

 

74,817

 

 

 

69,800

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(27

)

 

 

(80,395

)

 

 

13,076

 

State and local

 

 

(877

)

 

 

3,481

 

 

 

2,917

 

Foreign

 

 

(105

)

 

 

(410

)

 

 

(845

)

Total deferred

 

 

(1,009

)

 

 

(77,324

)

 

 

15,148

 

Total income tax (benefit) expense

 

$

62,305

 

 

$

(2,507

)

 

$

84,948

 
Schedule of Effective Income Tax Rate Reconciliation

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Expected tax expense computed at federal statutory rate (1)

 

$

68,861

 

 

$

83,805

 

 

$

87,017

 

State and local taxes, net of federal benefit

 

 

13,216

 

 

 

11,860

 

 

 

9,263

 

Nonincludible and nondeductible items, net

 

 

1,971

 

 

 

1,832

 

 

 

1,087

 

Remeasurement of deferred taxes and transition tax

 

 

(2,182

)

 

 

(86,593

)

 

 

—

 

Effect of foreign tax rates

 

 

(380

)

 

 

(1,261

)

 

 

(2,320

)

R&D tax credit

 

 

(6,755

)

 

 

(3,630

)

 

 

(4,894

)

Other tax credits

 

 

(2,138

)

 

 

(2,102

)

 

 

(1,321

)

ASU 2016-09 share-based compensation

 

 

(7,493

)

 

 

(5,388

)

 

 

(1,390

)

Other

 

 

(2,795

)

 

 

(1,030

)

 

 

(2,494

)

Total income tax (benefit) expense

 

$

62,305

 

 

$

(2,507

)

 

$

84,948

 

 

 

(1)

The U.S. federal statutory income tax rate for FY2019 is 21.0 percent.  The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA.  The federal statutory rate for FY2017 was 35.0 percent.
Schedule of Deferred Tax Assets and Liabilities

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

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation and post-retirement obligations

 

$

29,206

 

 

$

27,842

 

Reserves and accruals

 

 

30,205

 

 

 

30,180

 

Stock-based compensation

 

 

9,881

 

 

 

7,793

 

Deferred rent

 

 

4,876

 

 

 

3,750

 

Interest rate swap

 

 

2,688

 

 

 

—

 

Total deferred tax assets

 

 

76,856

 

 

 

69,565

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Goodwill and other intangible assets

 

 

(257,762

)

 

 

(238,020

)

Unbilled revenue

 

 

(17,640

)

 

 

(17,363

)

Prepaid expenses

 

 

(2,974

)

 

 

(3,991

)

Interest rate swap

 

 

—

 

 

 

(3,701

)

Other

 

 

(3,819

)

 

 

(7,370

)

Total deferred tax liabilities

 

 

(282,195

)

 

 

(270,445

)

Net deferred tax liability

 

$

(205,339

)

 

$

(200,880

)

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Beginning of year

 

$

4,122

 

 

$

1,639

 

 

$

398

 

Additions based on current year tax positions

 

 

676

 

 

 

2,483

 

 

 

1,475

 

Lapse of statute of limitations

 

 

(164

)

 

 

—

 

 

 

(234

)

Reductions based on prior tax year positions

 

 

(3,104

)

 

 

—

 

 

 

—

 

Settlement with taxing authorities

 

 

—

 

 

 

—

 

 

 

—

 

End of year

 

$

1,530

 

 

$

4,122

 

 

$

1,639

 
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Components of Stock-Based Compensation Expense and Related Tax Benefits A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2019, 2018, and 2017, together with the income tax benefits realized, is as follows (in thousands):

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Stock-based compensation included in indirect costs and

   selling expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock and RSU expense

 

$

25,272

 

 

$

23,628

 

 

$

21,945

 

Income tax benefit recognized for stock-based compensation

 

$

4,865

 

 

$

7,769

 

 

$

7,498

 
Annual Performance-Based Awards Granted

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

 

 

 

Performance-based stock awards granted

 

 

Number of additional shares earned under performance-based stock awards

 

Fiscal year 2019

 

 

129,108

 

 

 

—

 

Fiscal year 2018

 

 

185,056

 

 

 

20,116

 

Fiscal year 2017

 

 

193,420

 

 

 

73,065

 
Summary of Activity Related to Restricted Stock and RSUs

Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2019, 2018, and 2017, together with the corresponding weighted-average fair values, are as follows:

 

 

 

Restricted Stock and

Restricted Stock Units

 

 

 

Number

of Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested at June 30, 2016

 

 

873,854

 

 

$

64.79

 

Granted

 

 

256,853

 

 

 

104.45

 

Vested

 

 

(233,296

)

 

 

65.07

 

Forfeited

 

 

(62,804

)

 

 

93.12

 

Unvested at June 30, 2017

 

 

834,607

 

 

$

71.20

 

Granted

 

 

276,871

 

 

 

146.27

 

Vested

 

 

(394,293

)

 

 

66.29

 

Forfeited

 

 

(53,198

)

 

 

95.03

 

Unvested at June 30, 2018

 

 

663,987

 

 

$

107.96

 

Granted

 

 

274,261

 

 

 

201.27

 

Vested

 

 

(276,626

)

 

 

61.85

 

Forfeited

 

 

(32,816

)

 

 

123.55

 

Unvested at June 30, 2019

 

 

628,806

 

 

$

134.10

 
Summary of Activity Related to MSPP

Activity related to the MSPP during the year ended June 30, 2019 is as follows:

 

 

 

MSPP

 

RSUs outstanding, June 30, 2018

 

 

3,938

 

Granted

 

 

1,560

 

Issued

 

 

(691

)

Forfeited

 

 

(1,886

)

RSUs outstanding, June 30, 2019

 

 

2,921

 

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

 

$

125.82

 

 
v3.19.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and June 30, 2018, and the level they fall within the fair value hierarchy (in thousands):

 

 

 

 

 

 

 

As of June 30,

 

 

 

Financial Statement

 

Fair Value

 

2019

 

 

2018

 

Description of Financial Instrument

 

Classification

 

Hierarchy

 

Fair Value

 

Contingent consideration

 

Other accrued expenses and

   current liabilities

 

Level 3

 

$

12,000

 

 

$

693

 

Contingent consideration

 

Other long-term liabilities

 

Level 3

 

$

—

 

 

$

11,000

 

Interest rate swap agreements

 

Prepaid expenses and other

   current assets

 

Level 2

 

$

—

 

 

$

672

 

Interest rate swap agreements

 

Other long-term assets

 

Level 2

 

$

2,081

 

 

$

13,405

 

Interest rate swap agreements

 

Other accrued expenses and

   current liabilities

 

Level 2

 

$

43

 

 

$

—

 

Interest rate swap agreements

 

Other long-term liabilities

 

Level 2

 

$

12,264

 

 

$

—

 
v3.19.2
EARNINGS PER SHARE (Tables)
 12 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Calculation of basic and diluted earnings per share

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

 

 

 

Year Ended June 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Net income

 

$

265,604

 

 

$

301,171

 

 

$

163,671

 

Weighted-average number of basic shares outstanding

   during the period

 

 

24,833

 

 

 

24,616

 

 

 

24,401

 

Dilutive effect of RSUs after application of treasury stock method

 

 

562

 

 

 

639

 

 

 

668

 

Weighted-average number of diluted shares outstanding

   during the period

 

 

25,395

 

 

 

25,255

 

 

 

25,069

 

Basic earnings per share

 

$

10.70

 

 

$

12.23

 

 

$

6.71

 

Diluted earnings per share

 

$

10.46

 

 

$

11.93

 

 

$

6.53

 

 
v3.19.2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Jun. 30, 2019
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Condensed Financial Operating Results Quarterly condensed financial operating results of the Company for the years ended June 30, 2019 and 2018, are presented below (in thousands except per share data).

 

 

 

Year Ended June 30, 2019

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,165,864

 

 

$

1,181,641

 

 

$

1,264,958

 

 

$

1,373,878

 

Income from operations

 

$

99,600

 

 

$

102,263

 

 

$

94,908

 

 

$

81,096

 

Net income

 

$

78,833

 

 

$

68,596

 

 

$

68,145

 

 

$

50,030

 

Basic earnings per share

 

$

3.19

 

 

$

2.76

 

 

$

2.74

 

 

$

2.01

 

Diluted earnings per share

 

$

3.10

 

 

$

2.71

 

 

$

2.69

 

 

$

1.96

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,737

 

 

 

24,856

 

 

 

24,866

 

 

 

24,875

 

Diluted

 

 

25,424

 

 

 

25,338

 

 

 

25,348

 

 

 

25,472

 

 

 

 

Year Ended June 30, 2018

 

 

 

First

 

 

Second (1)

 

 

Third

 

 

Fourth

 

Revenue

 

$

1,085,814

 

 

$

1,087,860

 

 

$

1,124,100

 

 

$

1,170,086

 

Income from operations

 

$

67,304

 

 

$

88,262

 

 

$

104,794

 

 

$

80,340

 

Net income attributable to CACI

 

$

42,046

 

 

$

142,795

 

 

$

64,499

 

 

$

51,831

 

Basic earnings per share

 

$

1.72

 

 

$

5.80

 

 

$

2.62

 

 

$

2.10

 

Diluted earnings per share

 

$

1.67

 

 

$

5.66

 

 

$

2.56

 

 

$

2.05

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,487

 

 

 

24,622

 

 

 

24,656

 

 

 

24,700

 

Diluted

 

 

25,243

 

 

 

25,211

 

 

 

25,234

 

 

 

25,331

 

 

 

(1)

Net income for the second quarter of FY2019 includes a net benefit related to the TCJA.  See Note 19.

 
v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Summary Of Significant Accounting Policies [Line Items]      
Inventory, net $ 47.2 $ 25.9  
Amount of tax expense for changes in the fair value of interest rate swap agreements 6.4 4.2 $ 9.5
Accumulated other comprehensive loss related to foreign currency translation adjustments (33.6) (27.5)  
Accumulated other comprehensive gain related to fair value of interest rate swaps 9.0 0.9  
Accumulated other comprehensive loss related to unrecognized post-retirement medical plan costs $ (0.6) $ (0.5)  
Equipment and furniture      
Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life from three to eight years    
Leasehold improvements      
Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life over the remaining lease term or the useful life of the improvements, whichever is shorter    
v3.19.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jul. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Proceeds from settlement of corporate owned life insurance (COLI) $ 2.7 $ 3.7  
ASU 2016-02 | Subsequent Event | Minimum      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Right-of-use asset     $ 345.0
Lease liability     390.0
ASU 2016-02 | Subsequent Event | Maximum      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Right-of-use asset     365.0
Lease liability     $ 410.0
v3.19.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS - Impact of Adoption of ASC 606 on Financial Statements - Consolidated Balance Sheet (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jul. 01, 2018
Jun. 30, 2018
ASSETS      
Accounts receivable, net $ 869,840 $ 827,325 $ 806,871
Prepaid expenses and other current assets 89,652 60,468 58,126
Other long-term assets 33,336 43,098 39,175
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Accounts payable 118,917   82,017
Other accrued expenses and current liabilities 235,611 152,814 150,602
Deferred income taxes 205,339 207,519 200,880
Other long-term liabilities 107,932 85,285 85,187
Retained earnings 2,410,164 2,144,560 2,126,790
Under ASC 605      
ASSETS      
Accounts receivable, net 841,781   806,871
Prepaid expenses and other current assets 86,967   58,126
Other long-term assets 27,983   39,175
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Other accrued expenses and current liabilities 231,822   150,602
Deferred income taxes 199,943   200,880
Other long-term liabilities 107,932   85,187
Retained earnings 2,383,252   $ 2,126,790
ASU 2014-09 | Adjustments Due to ASC 606      
ASSETS      
Accounts receivable, net 28,059 20,454  
Prepaid expenses and other current assets 2,685 2,342  
Other long-term assets 5,353 3,923  
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Other accrued expenses and current liabilities 3,789 2,212  
Deferred income taxes 5,396 6,639  
Other long-term liabilities   98  
Retained earnings $ 26,912 $ 17,770  
v3.19.2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS - Impact of Adoption of ASC 606 on Financial Statements - Consolidated Statement of Operations (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Revenue Initial Application Period Cumulative Effect Transition [Line Items]                      
Revenue $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814 $ 4,986,341 $ 4,467,860 $ 4,354,617
Costs of revenue:                      
Direct costs                 3,304,053 2,978,608 2,934,804
Indirect costs and selling expenses                 1,218,544 1,076,356 1,050,792
Depreciation and amortization                 85,877 72,196 71,760
Total costs of revenue                 4,608,474 4,127,160 4,057,356
Income from operations 81,096 94,908 102,263 99,600 80,340 104,794 88,262 67,304 377,867 340,700 297,261
Interest expense and other, net                 49,958 42,036 48,642
Income before taxes                 327,909 298,664 248,619
Income tax (benefit) expense                 62,305 (2,507) 84,948
Net income $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 51,831 $ 64,499 $ 142,795 $ 42,046 $ 265,604 $ 301,171 $ 163,671
Basic earnings per share $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 2.10 $ 2.62 $ 5.80 $ 1.72 $ 10.70 $ 12.23 $ 6.71
Diluted earnings per share $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 2.05 $ 2.56 $ 5.66 $ 1.67 $ 10.46 $ 11.93 $ 6.53
Under ASC 605                      
Revenue Initial Application Period Cumulative Effect Transition [Line Items]                      
Revenue                 $ 4,975,846    
Costs of revenue:                      
Direct costs                 3,304,053    
Indirect costs and selling expenses                 1,220,317    
Depreciation and amortization                 85,877    
Total costs of revenue                 4,610,247    
Income from operations                 365,599    
Interest expense and other, net                 49,958    
Income before taxes                 315,641    
Income tax (benefit) expense                 59,179    
Net income                 $ 256,462    
Basic earnings per share                 $ 10.33    
Diluted earnings per share                 $ 10.10    
ASU 2014-09 | Effect of ASC 606                      
Revenue Initial Application Period Cumulative Effect Transition [Line Items]                      
Revenue                 $ 10,495    
Costs of revenue:                      
Indirect costs and selling expenses                 (1,773)    
Total costs of revenue                 (1,773)    
Income from operations                 12,268    
Income before taxes                 12,268    
Income tax (benefit) expense                 3,126    
Net income                 $ 9,142    
Basic earnings per share                 $ 0.37    
Diluted earnings per share                 $ 0.36    
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
ACQUISITIONS (Detail Textual) - USD ($)
$ in Thousands
Aug. 15, 2018
Sep. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Acquisition [Line Items]          
Goodwill   $ 3,336,079 $ 3,336,079 $ 2,620,835 $ 2,577,435
SE&A BU          
Business Acquisition [Line Items]          
Acquisition date Aug. 15, 2018        
Cash consideration $ 84,000        
Consideration, initial net working capital payment 6,000        
Consideration, additional final net working capital payment 4,400        
Goodwill 44,000        
Amount of tax deductible goodwill and intangibles 52,900        
Identifiable intangible assets $ 8,900        
v3.19.2
ACQUISITIONS (Detail Textual 1) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 29, 2019
Jun. 30, 2019
Sep. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Acquisition [Line Items]          
Goodwill   $ 3,336,079 $ 3,336,079 $ 2,620,835 $ 2,577,435
Customer contracts and related customer relationships          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets   16 years 7 months 6 days      
Technology          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets   10 years 3 months 18 days      
Mastodon          
Business Acquisition [Line Items]          
Acquisition date Jan. 29, 2019        
Purchase consideration $ 225,000        
Cash consideration 220,000        
Deferred consideration 5,000        
Goodwill 139,200        
Identifiable intangible assets 83,900        
Amount of tax deductible goodwill and intangibles 223,100        
Mastodon | Customer contracts and related customer relationships          
Business Acquisition [Line Items]          
Identifiable intangible assets $ 19,800        
Amortization period of acquired intangible assets 20 years        
Mastodon | Technology          
Business Acquisition [Line Items]          
Identifiable intangible assets $ 64,100        
Mastodon | Technology | Minimum          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets 5 years        
Mastodon | Technology | Maximum          
Business Acquisition [Line Items]          
Amortization period of acquired intangible assets 9 years        
v3.19.2
ACQUISITIONS (Detail Textual 2) - USD ($)
$ in Thousands
 3 Months Ended 4 Months Ended 12 Months Ended
Mar. 01, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Sep. 30, 2019
Business Acquisition [Line Items]                            
Cash consideration                     $ 1,082,809 $ 76,910 $ 7,276  
Goodwill   $ 3,336,079       $ 2,620,835       $ 3,336,079 3,336,079 2,620,835 2,577,435 $ 3,336,079
Revenue   1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814   4,986,341 4,467,860 4,354,617  
Net income   50,030 $ 68,145 $ 68,596 $ 78,833 $ 51,831 $ 64,499 $ 142,795 $ 42,046   265,604 301,171 163,671  
Amortization expense                     $ 45,800 $ 38,200 $ 40,700  
Customer contracts and related customer relationships                            
Business Acquisition [Line Items]                            
Amortization period of acquired intangible assets                     16 years 7 months 6 days      
Technology                            
Business Acquisition [Line Items]                            
Amortization period of acquired intangible assets                     10 years 3 months 18 days      
LGS                            
Business Acquisition [Line Items]                            
Purchase consideration $ 750,500                          
Cash consideration 759,900                          
Purchase consideration adjustments, net (9,400)                          
Measurement period adjustment to consideration   (9,000)                        
Measurement period adjustment to deferred income taxes   $ 5,200                        
Goodwill 526,879                          
Identifiable intangible assets 147,650                          
Amount of tax deductible goodwill and intangibles 589,100                          
Revenue                   132,300        
Net income                   1,300        
Amortization expense                   5,200        
Integration and restructuring costs                   $ 2,600        
Acquisition-related expenses                     $ 11,400      
LGS | Customer contracts and related customer relationships                            
Business Acquisition [Line Items]                            
Identifiable intangible assets $ 86,900                          
Amortization period of acquired intangible assets 20 years                          
LGS | Technology                            
Business Acquisition [Line Items]                            
Identifiable intangible assets $ 60,800                          
LGS | Technology | Minimum                            
Business Acquisition [Line Items]                            
Amortization period of acquired intangible assets 5 years                          
LGS | Technology | Maximum                            
Business Acquisition [Line Items]                            
Amortization period of acquired intangible assets 15 years                          
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Mar. 01, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Acquisition [Line Items]          
Goodwill $ 3,336,079 $ 3,336,079   $ 2,620,835 $ 2,577,435
LGS          
Business Acquisition [Line Items]          
Accounts receivable     $ 83,320    
Prepaid expenses and other current assets     20,781    
Property and equipment     23,283    
Identifiable intangible assets     147,650    
Goodwill     526,879    
Other long-term assets     877    
Accounts payable     (10,309)    
Accrued compensation and benefits     (22,347)    
Other accrued expenses and current liabilities     (8,823)    
Deferred income taxes     (5,171)    
Other long-term liabilities     (5,644)    
Total estimated consideration     $ 750,496    
v3.19.2
ACQUISITIONS - Unaudited Pro Forma Financial Information (Detail 1) - LGS - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]    
Revenue $ 5,271,872 $ 4,822,318
Net income $ 275,630 $ 289,143
Basic EPS $ 11.10 $ 11.75
Diluted EPS $ 10.85 $ 11.45
v3.19.2
ACQUISITIONS (Detail Textual 3) - International Acquisitions - USD ($)
$ in Millions
Jun. 01, 2019
Nov. 01, 2017
Oct. 01, 2017
Business Acquisition [Line Items]      
Acquisition date Jun. 01, 2019 Nov. 01, 2017 Oct. 01, 2017
Percentage of outstanding shares acquired 100.00% 100.00% 100.00%
Purchase consideration $ 9.1 $ 7.5 $ 9.1
v3.19.2
ACQUISITIONS (Detail Textual 4) - USD ($)
$ in Thousands
Jun. 01, 2019
May 31, 2018
Nov. 22, 2017
Nov. 01, 2017
Oct. 01, 2017
Sep. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Acquisition [Line Items]                  
Goodwill           $ 3,336,079 $ 3,336,079 $ 2,620,835 $ 2,577,435
Domestic Acquisitions                  
Business Acquisition [Line Items]                  
Acquisition date   May 31, 2018 Nov. 22, 2017            
Percentage of membership interests acquired     100.00%            
Purchase consideration   $ 24,000 $ 53,000            
Cash consideration     40,100            
Deferred consideration     4,500            
Contingent consideration     8,700            
Consideration, net working capital adjustment     300            
Goodwill   8,400 26,700            
Identifiable intangible assets   $ 14,900 $ 24,900            
International Acquisitions                  
Business Acquisition [Line Items]                  
Acquisition date Jun. 01, 2019     Nov. 01, 2017 Oct. 01, 2017        
Purchase consideration $ 9,100     $ 7,500 $ 9,100        
Percentage of outstanding shares acquired 100.00%     100.00% 100.00%        
v3.19.2
ACQUISITIONS (Detail Textual 5)
$ in Millions
Oct. 01, 2016
USD ($)
Business in United Kingdom  
Business Acquisition [Line Items]  
Purchase consideration $ 2.8
v3.19.2
ACCOUNTS RECEIVABLE (Detail Textual) - USD ($)
$ in Millions
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Accounts Receivable Net [Abstract]      
Allowance for doubtful accounts receivable $ 4.2 $ 3.7 $ 3.6
v3.19.2
ACCOUNTS RECEIVABLE - Schedule of Total Accounts Receivable (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jul. 01, 2018
Jun. 30, 2018
Accounts Receivable Net [Abstract]      
Billed receivables $ 638,135   $ 625,336
Billable receivables 141,632   129,183
Unbilled receivables 90,073 $ 72,511 [1] 52,352
Total accounts receivable, current 869,840 827,325 806,871
Unbilled receivables, long-term 7,381 $ 8,620 [1] 8,620
Total accounts receivable $ 877,221   $ 815,491
[1] Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.
v3.19.2
GOODWILL - Roll Forward of Goodwill (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Goodwill [Roll Forward]    
Balance $ 2,620,835 $ 2,577,435
Goodwill acquired [1] 719,203 41,891
Foreign currency translation (3,959) 1,509
Balance 3,336,079 2,620,835
Domestic    
Goodwill [Roll Forward]    
Balance 2,514,520 2,479,496
Goodwill acquired [1] 710,165 35,024
Balance 3,224,685 2,514,520
International    
Goodwill [Roll Forward]    
Balance 106,315 97,939
Goodwill acquired [1] 9,038 6,867
Foreign currency translation (3,959) 1,509
Balance $ 111,394 $ 106,315
[1] Includes goodwill initially allocated to new business combinations as well as measurement period adjustments.
v3.19.2
INTANGIBLE ASSETS - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
 [1]
Finite Lived Intangible Assets [Line Items]    
Intangible assets $ 688,311 $ 449,974
Less accumulated amortization (252,196) (208,219)
Total intangible assets, net 436,115 241,755
Customer contracts and related customer relationships    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 549,552 435,933
Less accumulated amortization (236,935) (199,018)
Acquired technologies    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 137,959 13,237
Less accumulated amortization (14,750) (8,761)
Other    
Finite Lived Intangible Assets [Line Items]    
Intangible assets 800 804
Less accumulated amortization $ (511) $ (440)
[1] During FY2019 and FY2018, the Company removed $1.5 million and $264.1 million, respectively, in fully amortized intangible assets.
v3.19.2
INTANGIBLE ASSETS - Summary of Intangible Assets (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Finite Lived Intangible Assets Net [Abstract]    
Removal of fully amortized intangible assets $ 1.5 $ 264.1
v3.19.2
INTANGIBLE ASSETS (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Finite Lived Intangible Assets [Line Items]      
Amortization expense $ 45.8 $ 38.2 $ 40.7
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 16 years 7 months 6 days    
Weighted-average remaining amortization period 13 years 10 months 24 days    
Acquired technologies      
Finite Lived Intangible Assets [Line Items]      
Weighted-average amortization period 10 years 3 months 18 days    
Weighted-average remaining amortization period 9 years 10 months 24 days    
v3.19.2
INTANGIBLE ASSETS - Expected Amortization Expense (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
 [1]
Finite Lived Intangible Assets Net [Abstract]    
Year ending June 30, 2020 $ 57,616  
Year ending June 30, 2021 56,467  
Year ending June 30, 2022 53,318  
Year ending June 30, 2023 48,143  
Year ending June 30, 2024 41,401  
Thereafter 179,170  
Total intangible assets, net $ 436,115 $ 241,755
[1] During FY2019 and FY2018, the Company removed $1.5 million and $264.1 million, respectively, in fully amortized intangible assets.
v3.19.2
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Property Plant And Equipment [Abstract]    
Equipment and furniture $ 193,940 $ 152,682
Leasehold improvements 149,935 109,849
Property and equipment, at cost 343,875 262,531
Less accumulated depreciation and amortization (194,199) (161,391)
Total property and equipment, net $ 149,676 $ 101,140
v3.19.2
PROPERTY AND EQUIPMENT (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Property Plant And Equipment [Abstract]      
Depreciation expense $ 36.4 $ 30.7 $ 27.5
v3.19.2
ACCRUED COMPENSATION AND BENEFITS - Schedule of Accrued Compensation and Benefits (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Employee Related Liabilities Current [Abstract]    
Accrued salaries and withholdings $ 164,631 $ 144,213
Accrued leave 97,832 88,547
Accrued fringe benefits 27,811 26,682
Total accrued compensation and benefits $ 290,274 $ 259,442
v3.19.2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES - Schedule of Other Accrued Expenses and Current Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jul. 01, 2018
Jun. 30, 2018
Other Accrued Expenses And Current Liabilities [Abstract]      
Vendor obligations $ 90,238   $ 91,048
Deferred revenue (see Note 12) 55,667   41,744
MARPA Facility payable (see Note 13) [1] 54,567    
Other 35,139   17,810
Total other accrued expenses and current liabilities $ 235,611 $ 152,814 $ 150,602
[1] Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2019. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.19.2
REVENUE RECOGNITION - Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Disaggregation Of Revenue [Line Items]                      
Revenue $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814 $ 4,986,341 $ 4,467,860 $ 4,354,617
Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 4,586,330    
Subcontractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 400,011    
Department of Defense                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,489,854    
Federal civilian agencies                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,263,681    
Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 232,806    
Cost-plus-fee                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 2,764,291    
Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,465,559    
Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 756,491    
Domestic                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 4,829,450 4,304,602 4,217,488
Domestic | Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 4,429,439    
Domestic | Subcontractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 400,011    
Domestic | Department of Defense                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 3,489,854    
Domestic | Federal civilian agencies                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,263,681    
Domestic | Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 75,915    
Domestic | Cost-plus-fee                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 2,764,291    
Domestic | Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 1,365,052    
Domestic | Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 700,107    
International                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 156,891 $ 163,258 $ 137,129
International | Prime contractor                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 156,891    
International | Commercial and other                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 156,891    
International | Firm fixed-price                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 100,507    
International | Time and materials                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 $ 56,384    
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
REVENUE RECOGNITION (Detail Textual) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Change In Accounting Estimate [Line Items]                      
Income before income taxes                 $ 327,909 $ 298,664 $ 248,619
Diluted earnings per share $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 2.05 $ 2.56 $ 5.66 $ 1.67 $ 10.46 $ 11.93 $ 6.53
EAC Adjustments                      
Change In Accounting Estimate [Line Items]                      
Income before income taxes                 $ 19,700    
Diluted earnings per share                 $ 0.57    
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
REVENUE - Remaining Performance Obligations (Detail)
$ in Billions
Jun. 30, 2019
USD ($)
Revenue From Contract With Customer [Abstract]  
Remaining performance obligations $ 6.2
v3.19.2
REVENUE - Remaining Performance Obligations (Detail 1)
Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 77.00%
Remaining performance obligations, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01  
Remaining Performance Obligations [Line Items]  
Remaining performance obligations, expected satisfaction, percentage 23.00%
Remaining performance obligations, expected timing of satisfaction
v3.19.2
CONTRACT BALANCES - Contract Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jul. 01, 2018
 [1]
Jun. 30, 2018
Contract assets – current:      
Unbilled receivables $ 90,073 $ 72,511 $ 52,352
Costs to obtain – short-term 2,685 2,342  
Contract assets – noncurrent:      
Unbilled receivables 7,381 8,620 $ 8,620
Costs to obtain – long-term 5,353 3,923  
Contract liabilities – current:      
Deferred revenue and other contract liabilities (55,667) (43,940)  
Contract liabilities – noncurrent:      
Deferred revenue and other contract liabilities (7,445) (4,740)  
Net contract assets (liabilities) $ 42,380 $ 38,716  
[1] Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method.
v3.19.2
CONTRACT BALANCES (Detail Textual)
$ in Millions
 12 Months Ended
Jun. 30, 2019
USD ($)
Revenue From Contract With Customer [Abstract]  
Liability, revenue recognized $ 35.5
v3.19.2
SALES OF RECEIVABLES (Detail Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2018
Jun. 30, 2019
MARPA Facility    
MARPA Facility term 1 year  
MARPA Facility maximum commitment $ 200,000  
Sales of receivables   $ 1,126,395
Outstanding balance sold to Purchaser [1]   192,527
Cash collected, not remitted to Purchaser [2]   54,567
Interest Expense and Other, Net    
MARPA Facility    
Purchase discount fees   $ 3,000
[1] Represents the increase to cash flows from operations.
[2] Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2019. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.19.2
SALES OF RECEIVABLES - Summary of MARPA Facility Activity (Detail)
$ in Thousands
Jun. 30, 2019
USD ($)
Transfers And Servicing Of Financial Assets [Abstract]  
Sales of receivables $ 1,126,395
Cash collections (933,868)
Outstanding balance sold to Purchaser 192,527 [1]
Cash collected, not remitted to Purchaser (54,567) [2]
Remaining sold receivables $ 137,960
[1] Represents the increase to cash flows from operations.
[2] Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2019. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
v3.19.2
LONG-TERM DEBT - Schedule of Long-term Debt (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 1,676,475 $ 1,073,394
Less unamortized discounts and debt issuance costs (11,462) (11,054)
Total long-term debt 1,665,013 1,062,340
Less current portion (46,920) (46,920)
Long-term debt, net of current portion 1,618,093 1,015,420
Bank credit facility - term loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt 891,475 938,394
Bank credit facility - revolver loans    
Debt Instrument [Line Items]    
Principal amount of long-term debt $ 785,000 $ 135,000
v3.19.2
LONG-TERM DEBT (Detail Textual) - USD ($)
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Debt Instrument [Line Items]    
Outstanding amount under Credit Facility $ 1,676,475,000 $ 1,073,394,000
Interest Rate Swap | Cash Flow Hedging    
Debt Instrument [Line Items]    
Aggregate notional amount 900,000,000  
Bank Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 2,438,400,000  
Credit facility borrowing capacity, description At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $500.0 million or an amount subject to 3.50 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals.  
Credit Facility optional increases to borrowing capacity $ 500,000,000  
Ratio that restricts optional increases to borrowing capacity 350.00%  
Outstanding borrowings interest rate 3.81%  
Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity $ 1,500,000,000  
Outstanding amount under Credit Facility 785,000,000 135,000,000
Term loans    
Debt Instrument [Line Items]    
Credit facility maximum borrowing capacity 938,400,000  
Outstanding amount under Credit Facility $ 891,475,000 $ 938,394,000
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  
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  
v3.19.2
LONG-TERM DEBT - Cash Flow Hedges (Detail 2) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Long Term Debt [Abstract]      
Gain (loss) recognized in other comprehensive income $ (14,011) $ 6,344 $ 6,872
Amounts reclassified to earnings from accumulated other comprehensive loss (3,903) 1,129 7,715
Net current period other comprehensive income (loss) $ (17,914) $ 7,473 $ 14,587
v3.19.2
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Detail 3) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Long Term Debt [Abstract]    
2020 $ 46,920  
2021 46,920  
2022 46,920  
2023 46,920  
2024 1,488,795  
Principal amount of long-term debt 1,676,475 $ 1,073,394
Less unamortized discounts and debt issuance costs (11,462) (11,054)
Total long-term debt $ 1,665,013 $ 1,062,340
v3.19.2
LEASES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Leases [Abstract]      
Operating leases, term of contract 11 years    
Net sublease rental income $ 4.4    
Operating lease rent expense $ 79.0 $ 68.0 $ 76.2
v3.19.2
LEASES - Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Detail)
$ in Thousands
Jun. 30, 2019
USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
2020 $ 81,027
2021 72,331
2022 63,655
2023 54,056
2024 43,691
Thereafter 132,792
Total minimum lease payments $ 447,552
v3.19.2
OTHER LONG-TERM LIABILITIES - Schedule of Other Long-Term Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jul. 01, 2018
Jun. 30, 2018
Other Liabilities Noncurrent [Abstract]      
Deferred rent, net of current portion $ 41,427   $ 32,768
Interest rate swap agreements 12,264    
Deferred and contingent acquisition consideration 6,510   11,000
Deferred revenue 7,445   4,642
Accrued post-retirement obligations 5,982   5,651
Long-term incentive compensation 13,085   11,935
Reserve for unrecognized tax benefits (see Note 19) 1,544   4,195
Transition tax 4,472   8,128
Other 15,203   6,868
Total other long-term liabilities $ 107,932 $ 85,285 $ 85,187
v3.19.2
OTHER LONG-TERM LIABILITIES (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Other Liabilities Noncurrent [Abstract]    
Net periodic post-retirement benefit cost $ 0.4 $ 0.4
v3.19.2
BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION (Detail Textual) - Segment
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Business Segment Customer And Geographic Information [Line Items]      
Number of reportable segments 2    
U.S. Government | Sales      
Business Segment Customer And Geographic Information [Line Items]      
Percentage of revenue 95.30% 94.80% 95.10%
v3.19.2
BUSINESS SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION - Summarized Financial Information of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Sep. 30, 2019
Jun. 30, 2016
Segment Reporting Information [Line Items]                          
Revenue from external customers $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814 $ 4,986,341 $ 4,467,860 $ 4,354,617    
Net income 50,030 $ 68,145 $ 68,596 $ 78,833 51,831 $ 64,499 $ 142,795 $ 42,046 265,604 301,171 163,671    
Net assets 2,371,466       2,106,887       2,371,466 2,106,887 1,793,721   $ 1,607,313
Goodwill 3,336,079       2,620,835       3,336,079 2,620,835 2,577,435 $ 3,336,079  
Total long-term assets 4,055,323       3,103,015       4,055,323 3,103,015 3,031,180    
Total assets 5,086,843       4,034,206       5,086,843 4,034,206 3,911,082    
Capital expenditures                 47,902 41,594 43,268    
Depreciation and amortization                 85,877 72,196 71,760    
Domestic Operations                          
Segment Reporting Information [Line Items]                          
Revenue from external customers                 4,829,450 4,304,602 4,217,488    
Net income                 249,793 286,024 150,271    
Net assets 2,206,109       1,948,768       2,206,109 1,948,768 1,652,736    
Goodwill 3,224,685       2,514,520       3,224,685 2,514,520 2,479,496 3,224,685  
Total long-term assets 3,927,783       2,975,620       3,927,783 2,975,620 2,912,488    
Total assets 4,876,399       3,829,417       4,876,399 3,829,417 3,716,893    
Capital expenditures                 46,406 40,639 41,832    
Depreciation and amortization                 81,205 67,891 67,042    
International Operations                          
Segment Reporting Information [Line Items]                          
Revenue from external customers                 156,891 163,258 137,129    
Net income                 15,811 15,147 13,400    
Net assets 165,357       158,119       165,357 158,119 140,985    
Goodwill 111,394       106,315       111,394 106,315 97,939 $ 111,394  
Total long-term assets 127,540       127,395       127,540 127,395 118,692    
Total assets $ 210,444       $ 204,789       210,444 204,789 194,189    
Capital expenditures                 1,496 955 1,436    
Depreciation and amortization                 $ 4,672 $ 4,305 $ 4,718    
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
INCOME TAXES (Detail Textual) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2016
Income Tax Disclosure [Abstract]          
Statutory U.S. Income Tax Rate 35.00% 21.00% 28.06% 35.00%  
TCJA one-time transition tax, measurement period adjustment to income tax expense   $ 2,200      
TCJA reameasurement of deferred taxes, measurement period adjustment to income tax expense   500      
Undistributed earnings   900      
Liability for unrecognized tax benefits   1,530 $ 4,122 $ 1,639 $ 398
Unrecognized tax benefit that would impact the company's effective tax rate   $ 1,500 $ 4,100 $ 1,600  
v3.19.2
INCOME TAXES - Schedule of Income Loss Before Income Tax Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]      
Domestic $ 308,922 $ 279,360 $ 231,982
Foreign 18,987 19,304 16,637
Income before income taxes $ 327,909 $ 298,664 $ 248,619
v3.19.2
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Detail 1) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Current:      
Federal $ 41,675 $ 56,467 $ 54,425
State and local 17,606 13,006 11,334
Foreign 4,033 5,344 4,041
Total current 63,314 74,817 69,800
Deferred:      
Federal (27) (80,395) 13,076
State and local (877) 3,481 2,917
Foreign (105) (410) (845)
Total deferred (1,009) (77,324) 15,148
Total income tax (benefit) expense $ 62,305 $ (2,507) $ 84,948
v3.19.2
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Detail 2) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]      
Expected tax expense computed at federal statutory rate [1] $ 68,861 $ 83,805 $ 87,017
State and local taxes, net of federal benefit 13,216 11,860 9,263
Nonincludible and nondeductible items, net 1,971 1,832 1,087
Remeasurement of deferred taxes and transition tax (2,182) (86,593)  
Effect of foreign tax rates (380) (1,261) (2,320)
R&D tax credit (6,755) (3,630) (4,894)
Other tax credits (2,138) (2,102) (1,321)
ASU 2016-09 share-based compensation (7,493) (5,388) (1,390)
Other (2,795) (1,030) (2,494)
Total income tax (benefit) expense $ 62,305 $ (2,507) $ 84,948
[1] The U.S. federal statutory income tax rate for FY2019 is 21.0 percent. The federal statutory rate for FY2018 was a blended rate of 28.06 percent due to the TCJA. The federal statutory rate for FY2017 was 35.0 percent.
v3.19.2
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Detail 2)
 6 Months Ended 12 Months Ended
Dec. 31, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
U.S. federal statutory income tax rate 35.00% 21.00% 28.06% 35.00%
v3.19.2
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Detail 3) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Deferred tax assets:    
Deferred compensation and post-retirement obligations $ 29,206 $ 27,842
Reserves and accruals 30,205 30,180
Stock-based compensation 9,881 7,793
Deferred rent 4,876 3,750
Interest rate swap 2,688  
Total deferred tax assets 76,856 69,565
Deferred tax liabilities:    
Goodwill and other intangible assets (257,762) (238,020)
Unbilled revenue (17,640) (17,363)
Prepaid expenses (2,974) (3,991)
Interest rate swap   (3,701)
Other (3,819) (7,370)
Total deferred tax liabilities (282,195) (270,445)
Net deferred tax liability $ (205,339) $ (200,880)
v3.19.2
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Detail 4) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning of year $ 4,122 $ 1,639 $ 398
Additions based on current year tax positions 676 2,483 1,475
Lapse of statute of limitations (164)   (234)
Reductions based on prior tax year positions (3,104)    
End of year $ 1,530 $ 4,122 $ 1,639
v3.19.2
RETIREMENT SAVINGS PLANS (Detail Textual) - USD ($)
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Supplemental Savings Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employee contribution, maximum percentage of compensation 50.00%    
Contribution expense $ 1,600,000 $ 1,200,000 $ 700,000
Employee contribution maximum, percentage of bonuses 100.00%    
Employer contribution percentage 5.00%    
Employer contribution vesting period 5 years    
Annual IRC compensation limit $ 280,000    
Supplemental savings plan obligation 98,900,000    
Supplemental savings plan obligation, current portion 6,700,000    
Change in supplemental savings plan obligation 5,000,000    
Supplemental Savings Plan investment gains 4,800,000    
Supplemental Savings Plan participant compensation deferral 10,300,000    
Company contributions 1,600,000    
Distributions paid to participants 11,700,000    
Supplemental Savings Plan COLI gains 4,600,000 3,500,000  
COLI portion of supplemental savings plan assets $ 92,700,000 91,500,000  
401 (k) Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employee contribution, maximum percentage of compensation 75.00%    
Employer matching contribution, percent of match 8.00%    
Employer matching contribution, percent of employee salary deferral 50.00%    
Contribution expense $ 35,000,000 27,100,000 24,000,000
Employer contribution vesting period 3 years    
401(k) profit-sharing plans (PSP)      
Defined Contribution Plan Disclosure [Line Items]      
Discretionary contribution expense $ 32,000,000 $ 26,300,000 $ 22,800,000
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Components of Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Stock-based compensation included in indirect costs and selling expense:      
Restricted stock and RSU expense $ 25,272 $ 23,628 $ 21,945
Income tax benefit recognized for stock-based compensation $ 4,865 $ 7,769 $ 7,498
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Excess tax benefits recognized $ 9.2 $ 6.3 $ 1.6
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period to establish average share price for performance measurement 90 days    
Average share price performance condition, percentage 100.00%    
Maximum earned award, percentage of target award 200.00%    
Percentage of earned award vesting after three years 50.00%    
Percentage of earned award vesting after four years 50.00%    
2006 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock incentive plan, expiration period 10 years    
2016 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 1,200,000    
Cumulative equity instruments awarded 592,888    
Cumulative equity instruments forfeited 138,183    
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Annual Performance-Based Awards Granted (Detail)
 12 Months Ended
Jun. 30, 2019
shares
FY2019 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 129,108
FY2018 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 185,056
Additional PRSUs earned pursuant to condition 20,116
FY2017 PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSUs granted 193,420
Additional PRSUs earned pursuant to condition 73,065
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual 1) - USD ($)
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Income tax benefit realized $ 4,865,000 $ 7,769,000 $ 7,498,000
ESPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 1,250,000    
Percentage of fair market value 95.00%    
Maximum number of shares that an eligible employee can purchase The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter.    
Cumulative shares purchased under ESPP Plan 1,183,510    
Cumulative weighted-average purchase price per share $ 57.18    
Shares purchased under ESPP Plan 34,186    
Weighted-average price per share $ 159.30    
MSPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 500,000    
Percentage of annual bonus in lieu of which RSU received 85.00% 85.00% 85.00%
MSPP Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of annual bonus in lieu of which RSU received 100.00%    
DSPP Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for grants 75,000    
Percentage of annual bonus in lieu of which RSU received 100.00%    
Number of awards outstanding 0    
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period to establish average share price for performance measurement 90 days    
Share price $ 184.96    
Risk free rate of return 2.88%    
Expected volatility 27.76%    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of RSUs granted $ 201.27 $ 146.27 $ 104.45
Vesting period (in years) 3 years    
Total intrinsic value of RSUs that vested $ 53,000,000 $ 55,200,000 $ 26,600,000
Income tax benefit realized 10,200,000 $ 13,300,000 $ 4,800,000
Unrecognized compensation cost $ 42,000,000    
Weighted-average period to recognize unrecognized compensation cost (in years) 2 years 6 months    
SSARs and Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation cost $ 0    
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to Restricted Stock and RSUs (Detail 1) - Restricted Stock Units - $ / shares
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Number of Shares      
Unvested restricted stock and RSUs Outstanding June 30 663,987 834,607 873,854
Granted 274,261 276,871 256,853
Vested (276,626) (394,293) (233,296)
Forfeited (32,816) (53,198) (62,804)
Unvested restricted stock and RSUs Outstanding June 30 628,806 663,987 834,607
Weighted Average Grant Date Fair Value      
Beginning balance unvested, June 30 $ 107.96 $ 71.20 $ 64.79
Granted 201.27 146.27 104.45
Vested 61.85 66.29 65.07
Forfeited 123.55 95.03 93.12
Ending balance unvested, June 30 $ 134.10 $ 107.96 $ 71.20
v3.19.2
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to MSPP (Detail 4) - MSPP RSUs
 12 Months Ended
Jun. 30, 2019
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Unvested restricted stock and RSUs Outstanding June 30 3,938
Granted 1,560
Issued (691)
Forfeited (1,886)
Unvested restricted stock and RSUs Outstanding June 30 2,921
Weighted average grant date fair value as adjusted for the applicable discount | $ / shares $ 125.82
v3.19.2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 12,264  
Fair Value, Measurements, Recurring | Other accrued expenses and current liabilities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration 12,000 $ 693
Fair Value, Measurements, Recurring | Other accrued expenses and current liabilities | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements 43  
Fair Value, Measurements, Recurring | Other long-term liabilities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration   11,000
Fair Value, Measurements, Recurring | Other long-term liabilities | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements 12,264  
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements   672
Fair Value, Measurements, Recurring | Other long-term assets | Level 2 | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ 2,081 $ 13,405
v3.19.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textual) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Fair Value Disclosures [Abstract]    
Business combination contingent consideration period two and three year periods  
Change in fair value of contingent consideration $ 1,000 $ 9
v3.19.2
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Earnings Per Share [Abstract]                      
Net income $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 51,831 $ 64,499 $ 142,795 $ 42,046 $ 265,604 $ 301,171 $ 163,671
Weighted-average number of basic shares outstanding during the period 24,875 24,866 24,856 24,737 24,700 24,656 24,622 24,487 24,833 24,616 24,401
Dilutive effect of RSUs after application of treasury stock method                 562 639 668
Weighted-average number of diluted shares outstanding during the period 25,472 25,348 25,338 25,424 25,331 25,234 25,211 25,243 25,395 25,255 25,069
Basic earnings per share $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 2.10 $ 2.62 $ 5.80 $ 1.72 $ 10.70 $ 12.23 $ 6.71
Diluted earnings per share $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 2.05 $ 2.56 $ 5.66 $ 1.67 $ 10.46 $ 11.93 $ 6.53
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.
v3.19.2
QUARTERLY FINANCIAL DATA (UNAUDITED) - Schedule of Quarterly Condensed Financial Operating Results (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Quarterly Financial Data [Abstract]                      
Revenue $ 1,373,878 $ 1,264,958 $ 1,181,641 $ 1,165,864 $ 1,170,086 $ 1,124,100 $ 1,087,860 $ 1,085,814 $ 4,986,341 $ 4,467,860 $ 4,354,617
Income from operations 81,096 94,908 102,263 99,600 80,340 104,794 88,262 67,304 377,867 340,700 297,261
Net income $ 50,030 $ 68,145 $ 68,596 $ 78,833 $ 51,831 $ 64,499 $ 142,795 $ 42,046 $ 265,604 $ 301,171 $ 163,671
Basic earnings per share $ 2.01 $ 2.74 $ 2.76 $ 3.19 $ 2.10 $ 2.62 $ 5.80 $ 1.72 $ 10.70 $ 12.23 $ 6.71
Diluted earnings per share $ 1.96 $ 2.69 $ 2.71 $ 3.10 $ 2.05 $ 2.56 $ 5.66 $ 1.67 $ 10.46 $ 11.93 $ 6.53
Weighted-average basic shares outstanding 24,875 24,866 24,856 24,737 24,700 24,656 24,622 24,487 24,833 24,616 24,401
Weighted-average diluted shares outstanding 25,472 25,348 25,338 25,424 25,331 25,234 25,211 25,243 25,395 25,255 25,069
[1] Net income for the second quarter of FY2019 includes a net benefit related to the TCJA. See Note 19.