Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34972 | |
Entity Registrant Name | Booz Allen Hamilton Holding Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2634160 | |
Entity Address, Address Line One | 8283 Greensboro Drive, | |
Entity Address, City or Town | McLean, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 703 | |
Local Phone Number | 902-5000 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | BAH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 137,802,479 | |
Current Fiscal Year End Date | --03-31 | |
Entity Central Index Key | 0001443646 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 620,612 | $ 741,901 |
Accounts receivable, net of allowance | 1,521,545 | 1,459,471 |
Prepaid expenses and other current assets | 101,383 | 126,816 |
Total current assets | 2,243,540 | 2,328,188 |
Property and equipment, net of accumulated depreciation | 205,096 | 208,077 |
Operating lease right-of-use assets | 230,630 | 240,122 |
Intangible assets, net of accumulated amortization | 303,469 | 300,987 |
Goodwill | 1,581,160 | 1,581,160 |
Other long-term assets | 140,094 | 135,432 |
Total assets | 4,703,989 | 4,793,966 |
Current liabilities: | ||
Current portion of long-term debt | 77,865 | 177,865 |
Accounts payable and other accrued expenses | 748,875 | 698,011 |
Accrued compensation and benefits | 301,405 | 348,775 |
Operating lease liabilities | 50,339 | 49,021 |
Other current liabilities | 60,295 | 54,006 |
Total current liabilities | 1,238,779 | 1,327,678 |
Long-term debt, net of current portion | 1,989,328 | 2,007,979 |
Operating lease liabilities, net of current portion | 259,706 | 270,266 |
Other long-term liabilities | 333,709 | 331,687 |
Total liabilities | 3,821,522 | 3,937,610 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 161,856,727 shares at June 30, 2020 and 161,333,973 shares at March 31, 2020; outstanding, 138,196,736 shares at June 30, 2020 and 138,719,921 shares at March 31, 2020 | 1,618 | 1,613 |
Treasury stock, at cost — 23,659,991 at June 30, 2020 and 22,614,052 shares at March 31, 2020 | (973,601) | (898,095) |
Additional paid-in capital | 486,739 | 468,027 |
Retained earnings | 1,415,129 | 1,330,812 |
Accumulated other comprehensive loss | (47,418) | (46,001) |
Total stockholders’ equity | 882,467 | 856,356 |
Total liabilities and stockholders’ equity | $ 4,703,989 | $ 4,793,966 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 161,856,727 | 161,333,973 |
Common stock, outstanding (in shares) | 138,196,736 | 138,719,921 |
Treasury stock (in shares) | 23,659,991 | 22,614,052 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 1,956,453 | $ 1,825,176 |
Operating costs and expenses: | ||
Cost of revenue | 948,902 | 840,654 |
Billable expenses | 549,077 | 551,175 |
General and administrative expenses | 245,855 | 234,280 |
Depreciation and amortization | 20,732 | 20,021 |
Total operating costs and expenses | 1,764,566 | 1,646,130 |
Operating income | 191,887 | 179,046 |
Interest expense | (20,235) | (25,187) |
Other (expense) income, net | (836) | 1,971 |
Income before income taxes | 170,816 | 155,830 |
Income tax expense | 41,487 | 38,444 |
Net income | $ 129,329 | $ 117,386 |
Earnings per common share (Note 4): | ||
Basic (in dollars per share) | $ 0.93 | $ 0.83 |
Diluted (in dollars per share) | $ 0.92 | $ 0.83 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 129,329 | $ 117,386 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Change in unrealized (loss) gain on derivatives designated as cash flow hedges | (1,439) | (14,965) |
Change in postretirement plan costs | 22 | 34 |
Total other comprehensive income (loss), net of tax | (1,417) | (14,931) |
Comprehensive income | $ 127,912 | $ 102,455 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 129,329 | $ 117,386 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,732 | 20,021 |
Noncash lease expense | 13,242 | 13,970 |
Stock-based compensation expense | 10,833 | 6,444 |
Amortization of debt issuance costs | 1,070 | 1,219 |
Losses on dispositions | 3 | 23 |
Changes in assets and liabilities: | ||
Accounts receivable, net of allowance | (62,570) | (77,352) |
Deferred income taxes and income taxes receivable / payable | 35,027 | 42,342 |
Prepaid expenses and other current assets | (11,877) | (15,540) |
Other long-term assets | 1,496 | 623 |
Accrued compensation and benefits | (36,294) | (70,845) |
Accounts payable and other accrued expenses | 50,864 | 24,757 |
Other current liabilities | (1,700) | 1,047 |
Operating lease liabilities | (12,992) | (15,232) |
Other long-term liabilities | 3,255 | 2,120 |
Net cash provided by operating activities | 140,418 | 50,983 |
Cash flows from investing activities | ||
Purchases of property, equipment, and software | (20,058) | (27,336) |
Net cash used in investing activities | (20,058) | (27,336) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock | 4,423 | 3,378 |
Stock option exercises | 3,125 | 2,155 |
Repurchases of common stock | (85,899) | (12,178) |
Cash dividends paid | (43,832) | (32,412) |
Repayment of debt | (119,466) | (19,480) |
Proceeds from debt issuance | 0 | 400,000 |
Net cash (used in) provided by financing activities | (241,649) | 341,463 |
Net (decrease) increase in cash and cash equivalents | (121,289) | 365,110 |
Cash and cash equivalents––beginning of period | 741,901 | 283,990 |
Cash and cash equivalents––end of period | 620,612 | 649,100 |
Net cash paid (refunded) during the period for: | ||
Interest | 19,032 | 26,726 |
Income taxes | 3,123 | (4,238) |
Supplemental disclosures of non-cash investing and financing activities | ||
Share repurchases transacted but not settled and paid | 344 | 2,423 |
Noncash financing activities | $ 178 | $ 2,682 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period Of Adoption, Adjustment | Cumulative Effect, Period Of Adoption, AdjustmentRetained Earnings | ||
Beginning balance (shares) at Mar. 31, 2019 | 159,924,825 | (19,896,972) | ||||||||
Beginning of period at Mar. 31, 2019 | $ 675,366 | $ 1,599 | $ (711,450) | $ 401,596 | $ 994,811 | $ (11,190) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (shares) | 158,092 | |||||||||
Issuance of common stock | 3,378 | $ 2 | 3,376 | |||||||
Stock options exercised (shares) | 161,302 | |||||||||
Stock options exercised | 2,155 | $ 1 | 2,154 | |||||||
Repurchase of common stock (shares) | (93,000) | (129,128) | [1] | |||||||
Repurchase of common stock | (8,286) | [1] | $ (5,900) | $ (8,286) | [1] | |||||
Recognition of liability related to future stock option exercises | (277) | (277) | ||||||||
Net income | 117,386 | 117,386 | ||||||||
Other comprehensive income (loss), net of tax | (14,931) | (14,931) | ||||||||
Dividends paid per common share | (32,412) | (32,412) | ||||||||
Stock-based compensation expense | 6,444 | 6,444 | ||||||||
Ending balance (shares) at Jun. 30, 2019 | 160,244,219 | (20,026,100) | ||||||||
End of period at Jun. 30, 2019 | 748,823 | $ 1,602 | $ (719,736) | 413,293 | 1,079,785 | (26,121) | ||||
Beginning balance (shares) at Mar. 31, 2020 | 161,333,973 | (22,614,052) | ||||||||
Beginning of period at Mar. 31, 2020 | 856,356 | $ 1,613 | $ (898,095) | 468,027 | 1,330,812 | (46,001) | $ (1,180) | $ (1,180) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (shares) | 361,856 | |||||||||
Issuance of common stock | 4,423 | $ 3 | 4,420 | |||||||
Stock options exercised (shares) | 160,898 | |||||||||
Stock options exercised | 3,125 | $ 2 | 3,123 | |||||||
Repurchase of common stock (shares) | (900,000) | (1,045,939) | [2] | |||||||
Repurchase of common stock | (75,506) | [2] | $ (66,400) | $ (75,506) | [2] | |||||
Recognition of liability related to future restricted stock units vesting | 339 | 339 | ||||||||
Net income | 129,329 | 129,329 | ||||||||
Other comprehensive income (loss), net of tax | (1,417) | (1,417) | ||||||||
Dividends paid per common share | (43,832) | (43,832) | ||||||||
Stock-based compensation expense | 10,830 | 10,830 | ||||||||
Ending balance (shares) at Jun. 30, 2020 | 161,856,727 | (23,659,991) | ||||||||
End of period at Jun. 30, 2020 | $ 882,467 | $ 1,618 | $ (973,601) | $ 486,739 | $ 1,415,129 | $ (47,418) | ||||
[1] | During the three months ended June 30, 2019 , the Company purchased 93 thousand shares of the Company’s Class A Common Stock in a series of open market transactions for $5.9 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2020 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2019. | |||||||||
[2] | During the three months ended June 30, 2020 , the Company purchased 0.9 million shares of the Company’s Class A Common Stock in a series of open market transactions for $66.4 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2021 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2020. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | |||
Dividends paid (in dollars per share) | $ 0.31 | $ 0.23 | ||
Repurchase of common stock, value | $ 75,506 | [1] | $ 8,286 | [2] |
Class A Common Stock | ||||
Repurchase of common stock (in shares) | 900 | 93 | ||
Repurchase of common stock, value | $ 66,400 | $ 5,900 | ||
[1] | During the three months ended June 30, 2020 , the Company purchased 0.9 million shares of the Company’s Class A Common Stock in a series of open market transactions for $66.4 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2021 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2020. | |||
[2] | During the three months ended June 30, 2019 , the Company purchased 93 thousand shares of the Company’s Class A Common Stock in a series of open market transactions for $5.9 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2020 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2019. |
Business Overview
Business Overview | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | BUSINESS OVERVIEW Booz Allen Hamilton Holding Corporation, including its wholly owned subsidiaries, or the Company, we, us, and our, was incorporated in Delaware in May 2008. The Company provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to U.S. and international governments, major corporations, and not-for-profit organizations. The Company reports operating results and financial data in one reportable segment. The Company is headquartered in McLean, Virginia, with approximately 27,400 employees as of June 30, 2020 . |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission, or SEC, and should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K for the year ended March 31, 2020. The interim period unaudited condensed consolidated financial statements are presented as described below. Certain information and disclosures normally required for annual financial statements have been condensed or omitted pursuant to GAAP and SEC rules and regulations. In the opinion of management, all adjustments considered necessary for fair presentation of the results of the interim period presented have been included. The Company’s fiscal year ends on March 31 and unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended March 31. The results of operations for the three months ended June 30, 2020 are not necessarily indicative of results to be expected for the full fiscal year. The condensed consolidated financial statements and notes of the Company include its subsidiaries, and the joint ventures and partnerships over which the Company has a controlling financial interest. The Company uses the equity method to account for investments in entities that it does not control if it is otherwise able to exert significant influence over the entities' operating and financial policies. Certain amounts reported in the Company's prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation. Accounting Estimates The preparation of financial statements in conformity with 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 financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition, including the accrual of indirect costs, bonus and other incentive compensation, stock-based compensation, reserves for uncertain tax positions and valuation allowances on deferred tax assets, provisions for income taxes, postretirement obligations, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ materially from management's estimates. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). This guidance requires companies to record an allowance for expected credit losses over the contractual term of certain financial assets, including trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. The Company adopted this standard effective April 1, 2020 using the modified retrospective method. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This guidance requires a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with that of implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 is effective for interim reporting periods for fiscal years beginning after December 15, 2019. The Company adopted this standard effective April 1, 2020 on a prospective basis, and adoption of this standard did not have a material impact on the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The guidance includes removal of certain exceptions to the general principles of Topic 740, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The provisions of this standard are effective for years beginning after December 15, 2020, with early adoption permitted. The Company early adopted the standard effective April 1, 2020, and applied most of the relevant amendments prospectively. The Company’s adoption did not have a material impact on the condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The guidance contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other areas or transactions that are impacted by reference rate reform. The Company elected to adopt Topic 848 in fiscal 2020 and as of June 30, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the Company’s ability to apply hedge accounting to our derivative financial instruments. The Company continues to evaluate the impact of the guidance and may apply other elections, as applicable and as allowed by Topic 848. Recent Accounting Pronouncements Not Yet Adopted Other accounting and reporting pronouncements effective after June 30, 2020 and issued through the filing date are not expected to have a material impact on the Company's condensed consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The Company's revenues from contracts with customers (clients) are derived from offerings that include management and technology consulting services, analytics, digital solutions, engineering, mission operations, and cyber services, substantially with the U.S. government and its agencies and, to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international commercial clients. The Company performs under various types of contracts, which include cost-reimbursable contracts, time-and-materials contracts, and fixed-price contracts. Contract Estimates Many of our contracts recognize revenue under a contract cost-based input method and require an Estimate-at-Completion (EAC) process, which management uses to review and monitor the progress towards the completion of our performance obligations. Under this process, management considers various inputs and assumptions related to the EAC, including, but not limited to, progress towards completion, labor costs and productivity, material and subcontractor costs, and identified risks. Estimating the total cost at completion of performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized on a cumulative catch-up basis in the period when such changes are determinable and reasonably estimable. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For each of the three months ended June 30, 2020 and 2019 , the aggregate impact of adjustments in contract estimates was not material. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by contract type, customer, as well as whether the Company acts as prime contractor or sub-contractor, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories. Revenue by Contract Type: We generate revenue under the following three basic types of contracts: • Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee. • Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates. • Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss. The table below presents the total revenue for each type of contract: Three Months Ended 2020 2019 Cost-reimbursable $ 1,092,048 56 % $ 1,026,593 56 % Time-and-materials 502,546 26 % 420,595 23 % Fixed-price 361,859 18 % 377,988 21 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % Revenue by Customer Type: Three Months Ended 2020 2019 U.S. government: Defense Clients $ 931,336 47 % $ 858,936 47 % Intelligence Clients 407,104 21 % 419,067 23 % Civil Clients 557,923 29 % 492,033 27 % Total U.S. government 1,896,363 97 % 1,770,036 97 % Global Commercial Clients 60,090 3 % 55,140 3 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Three Months Ended 2020 2019 Prime Contractor $ 1,803,604 92 % $ 1,673,429 92 % Sub-contractor 152,849 8 % 151,747 8 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % Performance Obligations Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations do not include negotiated but unexercised options or the unfunded value of expired contracts. As of both June 30, 2020 and March 31, 2020 , the Company had $6.3 billion of remaining performance obligations and we expect to recognize more than half of the remaining performance obligations at June 30, 2020 as revenue over the next 12 months, and approximately three quarters over the next 24 months. The remainder is expected to be recognized thereafter. Contract Balances The Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-material contracts are typically billed to the customer at periodic intervals (e.g. monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections results in net contract assets or liabilities being recognized at the end of each reporting period. Contract assets primarily consist of unbilled receivables typically resulting from revenue recognized exceeding the amount billed to the customer and right to payment is not just subject to the passage of time. Contract liabilities primarily consist of advance payments, billings in excess of costs incurred and deferred revenue. Contract assets and liabilities are reported on a net contract basis at the end of each reporting period. The Company maintains an allowance for doubtful accounts to provide for an estimate of uncollected receivables. Refer to Note 5 for more information on receivables recognized from contracts accounted for under Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers (Topic 606). The following table summarizes the contract balances recognized on the Company’s condensed consolidated balance sheets: Balance Sheet line item June 30, March 31, Contract assets: Current Accounts receivable, net of allowance $ 999,497 $ 988,634 Long-term Other long-term assets 63,016 62,600 Total $ 1,062,513 $ 1,051,234 Contract liabilities: Advance payments, billings in excess of costs incurred and deferred revenue Other current liabilities $ 24,631 $ 26,018 Changes in contract assets and contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. For the three months ended June 30, 2020 and 2019 , we recognized revenue of $ 19.5 million and $ 16.7 million |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes basic and diluted earnings per share amounts based on net income for the periods presented. The Company uses the weighted-average number of common shares outstanding during the period to calculate basic earnings per share, or EPS. Diluted EPS adjusts the weighted average number of shares outstanding to include the dilutive effect of outstanding common stock options and other stock-based awards. The Company currently has outstanding shares of Class A Common Stock. Unvested Class A Restricted Common Stock holders are entitled to participate in non-forfeitable dividends or other distributions. These unvested restricted shares participated in the Company's dividends declared and were paid in the first quarter of fiscal 2021 and 2020 . As such, EPS is calculated using the two-class method whereby earnings are reduced by distributed earnings as well as any available undistributed earnings allocable to holders of unvested restricted shares. A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows: Three Months Ended 2020 2019 Earnings for basic computations (1) $ 128,686 $ 116,766 Weighted-average common shares outstanding for basic computations 138,153,464 140,004,627 Earnings for diluted computations (1) $ 128,689 $ 116,770 Dilutive stock options and restricted stock 1,018,990 1,124,674 Weighted-average common shares outstanding for diluted computations 139,172,454 141,129,301 Earnings per common share Basic $ 0.93 $ 0.83 Diluted $ 0.92 $ 0.83 (1) During both the three months ended June 30, 2020 and 2019 , approximately 0.7 million participating securities were paid dividends totaling $0.2 million . For both the three months ended June 30, 2020 and 2019 , there were undistributed earnings of $0.4 million allocated to the participating class of securities in both basic and diluted EPS. The allocated undistributed earnings and the dividends paid comprise the difference between net income presented on the condensed consolidated statements of operations and earnings for basic and diluted computations for both the three months ended June 30, 2020 and 2019 . The EPS calculation for the three months ended June 30, 2020 and 2019 excludes 0.2 million and 0.1 million |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowance | 3 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowance | ACCOUNTS RECEIVABLE, NET OF ALLOWANCE Accounts receivable, net of allowance consisted of the following: June 30, March 31, Current assets Accounts receivable–billed $ 526,500 $ 474,822 Accounts receivable–unbilled 999,497 988,634 Allowance for doubtful accounts (4,452 ) (3,985 ) Accounts receivable, net of allowance 1,521,545 1,459,471 Other long-term assets Accounts receivable–unbilled 63,016 62,600 Total accounts receivable, net $ 1,584,561 $ 1,522,071 Unbilled amounts represent revenues for which billings have not been presented to customers at quarter-end or year-end. These amounts are generally billed and collected within one year subject to various conditions including, without limitation, appropriated and available funding. Long-term unbilled receivables not anticipated to be billed and collected within one year, which are primarily related to retainage, holdbacks, and long-term rate settlements to be billed at contract closeout, are included in other long-term assets in the accompanying condensed consolidated balance sheets. The Company recognized a (benefit) provision for doubtful accounts of $(0.03) million and $1.9 million for the three months ended June 30, 2020 and 2019 , respectively. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Expenses | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Expenses | ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES Accounts payable and other accrued expenses consisted of the following: June 30, March 31, Vendor payables $ 383,523 $ 432,953 Accrued expenses 365,352 265,058 Total accounts payable and other accrued expenses $ 748,875 $ 698,011 Accrued expenses consisted primarily of the Company’s provision for claimed indirect costs, which were approximately $232.5 million and $224.6 million as of June 30, 2020 and March 31, 2020 , respectively. See Note 18 for further discussion of this provision. |
Accrued Compensation and Benefi
Accrued Compensation and Benefits | 3 Months Ended |
Jun. 30, 2020 | |
Compensation Related Costs [Abstract] | |
Accrued Compensation and Benefits | ACCRUED COMPENSATION AND BENEFITS Accrued compensation and benefits consisted of the following: June 30, March 31, Bonus $ 22,496 $ 114,359 Retirement 59,688 41,604 Vacation 196,443 159,512 Other 22,778 33,300 Total accrued compensation and benefits $ 301,405 $ 348,775 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following: June 30, 2020 March 31, 2020 Interest Rate Outstanding Balance Interest Rate Outstanding Balance Term Loan A 1.68 % $ 1,345,245 2.49 % $ 1,363,739 Term Loan B 1.93 % 387,129 2.74 % 388,102 Revolver — 3.75 % 100,000 Senior Notes 5.13 % 350,000 5.13 % 350,000 Less: Unamortized debt issuance costs and discount on debt (15,181 ) (15,997 ) Total 2,067,193 2,185,844 Less: Current portion of long-term debt (77,865 ) (177,865 ) Long-term debt, net of current portion $ 1,989,328 $ 2,007,979 Term Loans and Revolving Credit Facility On November 26, 2019 (the "Amendment Effective Date"), Booz Allen Hamilton Inc. ("Booz Allen Hamilton") and Booz Allen Hamilton Investor Corporation ("Investor"), and certain wholly-owned subsidiaries of Booz Allen Hamilton, entered into the Seventh Amendment (the "Seventh Amendment") to the Credit Agreement (as amended, the "Credit Agreement"), dated as of July 31, 2012 among Booz Allen Hamilton, Investor, certain wholly-owned subsidiaries of Booz Allen Hamilton and Bank of America, N.A., as Administrative Agent and Collateral Agent and the other lenders and financial institutions from time to time party thereto (as previously amended by the First Amendment to the Credit Agreement, dated as of August 16, 2013, the Second Amendment to the Credit Agreement, dated as of May 7, 2014, the Third Amendment to the Credit Agreement, dated as of July 13, 2016, the Fourth Amendment to the Credit Agreement, dated as of February 6, 2017, the Fifth Amendment to the Credit Agreement, dated as of March 7, 2018, and the Sixth Amendment to the Credit Agreement, dated July 23, 2018). Pursuant to the Seventh Amendment, the Company reduced the applicable margin applicable to the Term Loan B ("Term Loan B" and, together with the Term Loan A, the "Term Loans") from 2.00% to 1.75% for LIBOR loans and from 1.00% to 0.75% for base rate loans and extended the maturity of the Term Loan B to November 26, 2026. The applicable margin and maturity date applicable to the Term Loan A (the "Term Loan A") remained unchanged. Prior to the Seventh Amendment, approximately $389.0 million was outstanding under Term Loan B. Pursuant to the Seventh Amendment, certain lenders converted their existing Term Loan B loans into a new tranche of Term Loan B loans in an aggregate amount, along with Term Loan B loans advanced by certain new lenders, of approximately $389.0 million (the “New Refinancing Tranche B Term Loans”). The proceeds from the new lenders were used to prepay in full all of the existing Term Loan B loans that were not converted into the new Term Loan B tranche. Voluntary prepayments of the New Refinancing Tranche B Term Loans are permitted at any time, in minimum principal amounts, without premium or penalty, subject to a 1.00% premium payable in connection with certain repricing transactions within the first six months after the Seventh Amendment. The other terms of the New Refinancing Tranche B Term Loans are generally the same as the existing Term Loan B prior to the Seventh Amendment. As of June 30, 2020 , the Credit Agreement provided Booz Allen Hamilton with a $1,345.2 million Term Loan A, a $387.1 million Term Loan B, and $500.0 million revolving credit facility (the "Revolving Credit Facility") with a sub-limit for letters of credit of $100.0 million . As of June 30, 2020 , the maturity date of Term Loan A and the termination date for the Revolving Credit Facility was July 23, 2023 and the maturity date of Term Loan B was November 26, 2026. Booz Allen Hamilton’s obligations and the guarantors’ guarantees under the Credit Agreement are secured by a first priority lien on substantially all of the assets (including capital stock of subsidiaries) of Booz Allen Hamilton, Investor, and the subsidiary guarantors, subject to certain exceptions set forth in the Credit Agreement and related documentation. Subject to specified conditions, without the consent of the then-existing lenders (but subject to the receipt of commitments), the Term Loans or the Revolving Credit Facility may be expanded (or a new term loan facility or revolving credit facility added to the existing facilities) by up to (i) the greater of (x) $627 million and (y) 100% of consolidated EBITDA of Booz Allen Hamilton, as of the end of the most recently ended four quarter period for which financial statements have been delivered pursuant to the Credit Agreement plus (ii) the aggregate principal amount under which pro forma consolidated net secured leverage remains less than or equal to 3.50 : 1.00 . At Booz Allen Hamilton’s option, borrowings under the Secured Credit Facility bear interest based either at LIBOR (adjusted for maximum reserves, and subject to a floor of zero ) for the applicable interest period or a base rate (equal to the highest of (x) the administrative agent’s prime corporate rate, (y) the overnight federal funds rate plus 0.50% , and (z) three-month LIBOR (adjusted for maximum reserves, and subject to a floor of zero ) plus 1.00% ), in each case plus an applicable margin, payable at the end of the applicable interest period and in any event at least quarterly. The applicable margin for Term Loan A and borrowings under the Revolving Credit Facility ranges from 1.25% to 2.00% for LIBOR loans and 0.25% to 1.00% for base rate loans, in each case based on Booz Allen Hamilton’s consolidated total net leverage ratio. The applicable margin for Term Loan B is 1.75% for LIBOR loans and 0.75% for base rate loans. Unused commitments under the Revolving Credit Facility are subject to a quarterly fee ranging from 0.20% to 0.35% based on Booz Allen Hamilton’s consolidated total net leverage ratio. Booz Allen Hamilton occasionally borrows under the Revolving Credit Facility in anticipation of cash demands. For both the three months ended June 30, 2020 and 2019 , Booz Allen Hamilton accessed no amounts of its $500.0 million Revolving Credit Facility. As of June 30, 2020 , there was no outstanding balance on the Revolving Credit Facility. As of March 31, 2020 , $100.0 million was outstanding on the Revolving Credit Facility, which was repaid in June 2020. The Credit Agreement, as amended, requires quarterly principal payments of 1.25% of the stated principal amount of Term Loan A until maturity, and quarterly principal payments of 0.25% of the stated principal amount of Term Loan B until maturity. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include limitations on the following, in each case subject to certain exceptions: (i) indebtedness and liens; (ii) mergers, consolidations or amalgamations, liquidations, wind-ups or dissolutions, and disposition of all or substantially all assets; (iii) dispositions of property; (iv) restricted payments; (v) investments; (vi) transactions with affiliates; (vii) change in fiscal periods; (viii) negative pledges; (ix) restrictive agreements; (x) line of business; and (xi) speculative hedging. The events of default include the following, in each case subject to certain exceptions: (a) failure to make required payments under the Secured Credit Facility; (b) material breaches of representations or warranties under the Secured Credit Facility; (c) failure to observe covenants or agreements under the Secured Credit Facility; (d) failure to pay or default under certain other material indebtedness; (e) bankruptcy or insolvency; (f) certain Employee Retirement Income Security Act, or ERISA events; (g) certain material judgments; (h) actual or asserted invalidity of the Guarantee and Collateral Agreements or the other security documents or failure of the guarantees or perfected liens thereunder; and (i) a change of control. In addition, Booz Allen Hamilton is required to meet certain financial covenants at each quarter end, namely Consolidated Net Total Leverage and Consolidated Net Interest Coverage Ratios. As of June 30, 2020 and March 31, 2020 , Booz Allen Hamilton was in compliance with all financial covenants associated with its debt and debt-like instruments. For the three months ended June 30, 2020 and 2019 , interest payments of $6.9 million and $13.3 million were made for Term Loan A and $2.2 million and $4.4 million were made for Term Loan B, respectively. Senior Notes On April 25, 2017, Booz Allen Hamilton issued $350 million aggregate principal amount of its 5.125% Senior Notes due 2025 (the "Senior Notes"), under an Indenture, dated as of April 25, 2017, among Booz Allen Hamilton, certain subsidiaries of Booz Allen Hamilton, as guarantors (the "Subsidiary Guarantors"), and Wilmington Trust, National Association, as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture, dated as of April 25, 2017, among Booz Allen Hamilton, the Subsidiary Guarantors and the Trustee. Each of Booz Allen Hamilton's existing and future domestic restricted subsidiaries that guarantee its obligations under the Secured Credit Facility and certain other indebtedness guarantee the Senior Notes on a senior unsecured basis. Booz Allen Hamilton has the right to redeem the Senior Notes at its option, in whole at any time or in part from time to time, upon certain required notice, at any time (i) on and after May 1, 2020, at a price equal to 102.56% of the principal amount of the Senior Notes, (ii) on or after May 1, 2021, at a price equal to 101.28% of the principal amount of the Senior Notes, and (iii) on May 1, 2022 and thereafter, at a price equal to 100.00% of the principal amount of the Senior Notes, in each case, plus accrued and unpaid interest, if any, to (but not including) the applicable redemption date. Interest is payable semi-annually on May 1 and November 1 of each year, beginning on November 1, 2017, and principal is due at maturity on May 1, 2025. In connection with the Senior Notes, the Company recognized $6.7 million of issuance costs, which were recorded as an offset against the carrying value of debt and will be amortized to interest expense over the term of the Senior Notes. For both the three months ended June 30, 2020 and 2019 , Booz Allen Hamilton made interest payments of $9.0 million for the Senior Notes. Borrowings under the Term Loans, and if used, the Revolving Credit Facility, incur interest at a variable rate. In accordance with Booz Allen Hamilton’s risk management strategy, between April 6, 2017 and April 4, 2019, Booz Allen Hamilton executed a series of interest rate swaps. As of June 30, 2020 , Booz Allen Hamilton had interest rate swaps with an aggregate notional amount of $1 billion . These instruments hedge the variability of cash outflows for interest payments on the floating portion of the term loan debt. The Company's objectives in using cash flow hedges are to reduce volatility due to interest rate movements and to add stability to interest expense (See Note 9 to our condensed consolidated financial statements). Interest on debt and debt-like instruments consisted of the following: Three Months Ended 2020 2019 (In thousands) Term Loan A Interest Expense $ 6,918 $ 13,450 Term Loan B Interest Expense 2,214 4,420 Interest on Revolving Credit Facility 799 — Senior Notes Interest Expense 4,484 4,484 Deferred Payment Obligation Interest — 2,011 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 1,070 1,219 Interest Swap Expense 4,441 (523 ) Other 309 126 Total Interest Expense $ 20,235 $ 25,187 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the condensed consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Revolving Credit Facility is recorded as a long-term asset on the condensed consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives
Derivatives | 3 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company utilizes derivative financial instruments to manage interest rate risk related to its variable rate debt. The Company’s objectives in using these interest rate derivatives, which were designated as cash flow hedges, are to manage its exposure to interest rate movements and reduce volatility of interest expense. The aggregate notional amount of all interest rate swap agreements was $1 billion as of June 30, 2020 . The swaps have staggered maturities, ranging from June 30, 2021 to June 30, 2025. These swaps mature within the last tranche of the Company's floating rate debt (November 26, 2026). The floating-to-fixed interest rate swaps involve the exchange of variable interest amounts from a counterparty for the Company making fixed-rate interest payments over the life of the agreements without exchange of the underlying notional amount and effectively convert a portion of the variable rate debt into fixed interest rate debt. Derivative instruments are recorded in the condensed consolidated balance sheet on a gross basis at estimated fair value. As of June 30, 2020 , $21.2 million and $37.4 million were classified as other current liabilities and other long-term liabilities, respectively, on the condensed consolidated balance sheet. As of March 31, 2020 , $18.8 million , and $37.8 million were classified as other current liabilities, and other long-term liabilities, respectively, on the condensed consolidated balance sheet. For interest rate swaps designated as cash flow hedges, the changes in the fair value of derivatives is recorded in Accumulated Other Comprehensive Loss, or AOCL, net of taxes, and is subsequently reclassified into interest expense in the period that the hedged forecasted interest payments are made on the Company's variable-rate debt. The effect of derivative instruments on the accompanying condensed consolidated financial statements for the three months ended June 30, 2020 and 2019 is as follows: Three Months Ended June 30, Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain or (Loss) Recognized in AOCL on Derivatives Amount of Gain or (Loss) Reclassified from AOCL into Income Interest Expense on Condensed Consolidated Statements of Operations 2020 2019 2020 2019 2020 2019 Interest rate swaps Interest expense $ (6,387 ) $ (19,748 ) $ (4,441 ) $ 523 $ (20,235 ) $ (25,187 ) Over the next 12 months, the Company estimates that $21.4 million will be reclassified as an increase to interest expense. Cash flows associated with periodic settlements of interest rate swaps will be classified as operating activities in the condensed consolidated statement of cash flows. The Company is subject to counterparty risk in connection with its interest rate swap derivative contracts. Credit risk related to a derivative financial instrument represents the possibility that the counterparty will not fulfill the terms of the contract. The Company mitigates this credit risk by entering into agreements with credit-worthy counterparties and regularly reviews its credit exposure and the creditworthiness of the counterparties. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company’s total lease cost is recorded primarily within general and administrative expenses on the condensed consolidated statement of operations and consisted of the following: Three Months Ended 2020 2019 Operating lease cost $ 17,127 $ 17,960 Short-term lease cost 1,601 2,417 Variable lease cost 3,534 2,562 Total operating lease costs $ 22,262 $ 22,939 Future minimum operating lease payments for noncancelable operating leases as of June 30, 2020 are as follows: Fiscal Year Ending Operating Lease Payments Remainder of 2021 $ 47,461 2022 66,454 2023 62,476 2024 51,212 2025 45,691 Thereafter 86,459 Total future lease payments 359,753 Less: imputed interest (49,708 ) Total lease liabilities $ 310,045 Supplemental cash flow information related to leases was as follows: Three Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 16,719 $ 19,912 Operating lease liabilities arising from obtaining ROU assets (1) 3,750 2,440 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: June 30, 2020 Weighted average remaining lease term (in years) 5.88 Weighted average discount rate 4.75 % |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective income tax rates were 24.3% and 24.7% for the three months ended June 30, 2020 and 2019 , respectively. The decrease in the effective tax rate as compared to the same period last fiscal year was primarily due to the larger excess tax benefits recognized in the current quarter. The three months effective tax rates of 24.3% and 24.7% differ from the federal statutory rate of 21.0% primarily due to the inclusion of state and foreign income taxes and permanent rate differences, which are predominantly related to certain executive compensation, partially offset by research and development tax credits and excess tax benefits for employee share-based compensation. The Company is currently contesting tax assessments from the District of Columbia Office of Tax and Revenue for fiscal years 2013 through 2015 at various stages of applicable administrative and judicial processes, with a combined amount at issue of approximately $11.7 million , net of associated federal tax benefits as of June 30, 2020 . The Company has taken similar tax positions with respect to subsequent fiscal years, net of expiring statute of limitations, totaling in aggregate $32.5 million . As of June 30, 2020 , the Company does not maintain reserves for any uncertain tax positions related to the contested tax benefits or the similar tax positions taken in the subsequent fiscal years. Given the recoverable nature of the state tax expense, the Company does not believe that the resolution of these matters will have a material adverse effect on its results of operations, cash flows or financial condition. The Company maintained reserves for uncertain tax positions of $59.1 million and $56.1 million as of June 30, 2020 and March 31, 2020, respectively, which is included in other long-term liabilities in the accompanying condensed consolidated balance sheets. As of June 30, 2020, the Company maintained reserves for uncertain tax positions of $47.6 million relating to research and development tax credits and $10.2 million relating to the acquisition of eGov Holdings, Inc. (d/b/a Aquilent) in the fourth quarter of fiscal 2017 for pre-acquisition period tax return uncertain tax positions. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following: June 30, March 31, Postretirement benefit obligations 125,584 124,375 Other (1) 208,125 207,312 Total other long-term liabilities $ 333,709 $ 331,687 (1) Because of condensed financial statement presentation, components of other long-term liabilities at June 30, 2020 and March 31, 2020 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution Plan The Company sponsors the Employees’ Capital Accumulation Plan, or ECAP, which is a qualified defined contribution plan that covers eligible U.S. and certain international employees. ECAP provides for distributions to participants by reason of retirement, death, disability, or termination of employment. The Company provides an annual matching contribution of up to 6% of eligible annual compensation. Total expense recognized under ECAP was $41.1 million and $36.9 million for the three months ended June 30, 2020 and 2019 , respectively. The Company-paid contributions were $23.2 million and $19.9 million for the three months ended June 30, 2020 and 2019 , respectively. Defined Benefit Plan and Other Postretirement Benefit Plans The Company provides postretirement healthcare benefits to former officers under a medical indemnity insurance plan, with premiums paid by the Company. This plan is referred to as the Officer Medical Plan. The Company also established a non-qualified defined benefit plan for all officers in May 1995, or the Retired Officers' Bonus Plan, which pays a lump-sum amount of $10,000 per year of service as an officer, provided the officer meets retirement vesting requirements. In addition, the Company provides a fixed annual allowance after retirement to cover financial counseling, tax preparation and other financial or wellness expenses. The Retired Officers' Bonus Plan is not salary related, but rather is based primarily on years of service. The Company also provides for a one-time lump sum retirement payment of one month’s salary when a vice-president retires from the Company. This is referred to as the Retired Vice-President Bonus Plan. The components of net postretirement medical expense for the Officer Medical Plan were as follows: Three Months Ended 2020 2019 Service cost $ 1,414 $ 1,239 Interest cost 1,059 1,215 Total postretirement medical expense $ 2,473 $ 2,454 The service cost component of net periodic benefit cost is included in cost of revenue and general and administrative expenses, and the non-service cost components of net periodic benefit cost (interest cost and net actuarial loss) is included as part of other income (expense), net in the accompanying condensed consolidated statements of operations. As of June 30, 2020 and March 31, 2020 , the unfunded status of the post-retirement medical plan was $120.9 million and $119.6 million , respectively, which is included in other long-term liabilities in the accompanying condensed consolidated balance sheets. Long-term Disability Benefits The Company offers medical and dental benefits to inactive employees (and their eligible dependents) on long-term disability. These benefits do not vary with an employee's years of service; therefore, the Company is required to accrue the costs of the benefits at the date the inactive employee becomes disability eligible and elects to participate in the benefit. The accrued cost for such benefits is calculated using an actuarial estimate. The accrued cost for these benefits was $10.7 million at both June 30, 2020 and March 31, 2020 , and is presented in other long-term liabilities in the accompanying condensed consolidated balance sheets. Deferred Compensation Plan The Company established a non-qualified deferred compensation plan (the "Plan") for certain executives and other highly compensated employees that was effective in fiscal 2018. Pursuant to the Plan, participants are eligible to defer up to 100% of their incentive cash compensation on a tax deferred basis in excess of the IRS limits imposed on 401(k) plans. The assets of the plan are held in a consolidated trust and are subject to the claims of the Company's general creditors under federal and state laws in the event of insolvency. Consequently, the trust qualifies as a Rabbi trust for income tax purposes. The fair values of plan investments and obligations at June 30, 2020 and March 31, 2020 were $12.3 million and $5.9 million , respectively, and were recorded in other long-term assets and in other long-term liabilities, respectively, in the condensed consolidated balance sheets. Adjustments to the fair value of the plan investments and obligations are recorded in operating expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS All amounts recorded in other comprehensive loss are related to the Company's post-retirement plans and interest rate swaps designated as cash flow hedges. The following table shows the changes in accumulated other comprehensive loss, net of tax: Three Months Ended June 30, 2020 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ (4,127 ) $ (41,874 ) $ (46,001 ) Other comprehensive loss before reclassifications (1) — (4,722 ) (4,722 ) Amounts reclassified from accumulated other comprehensive loss 22 3,283 3,305 Net current-period other comprehensive income (loss) 22 (1,439 ) (1,417 ) End of period $ (4,105 ) $ (43,313 ) $ (47,418 ) (1) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $1.7 million for the three months ended June 30, 2020 . Three Months Ended June 30, 2019 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ (9,068 ) $ (2,122 ) $ (11,190 ) Other comprehensive loss before reclassifications (2) — (14,579 ) (14,579 ) Amounts reclassified from accumulated other comprehensive loss 34 (386 ) (352 ) Net current-period other comprehensive income (loss) 34 (14,965 ) (14,931 ) End of period $ (9,034 ) $ (17,087 ) $ (26,121 ) (2) Changes in other comprehensive loss before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $5.2 million for the three months ended June 30, 2019 . The following table presents the reclassifications out of accumulated other comprehensive loss to net income: Three Months Ended 2020 2019 Amounts reclassified from accumulated other comprehensive loss: Post-retirement plans (Note 13): Amortization of net actuarial loss included in net periodic benefit cost $ 29 $ 44 Tax benefit (7 ) (10 ) Net of tax $ 22 $ 34 Derivatives designated as cash flow hedges (Note 9): Reclassification of hedge loss (gain) $ 4,441 $ (523 ) Tax (benefit) expense (1,158 ) 137 Net of tax $ 3,283 $ (386 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense recognized in the condensed consolidated statements of operations: Three Months Ended 2020 2019 Cost of revenue $ 4,498 $ 1,934 General and administrative expenses 6,335 4,510 Total $ 10,833 $ 6,444 The following table summarizes the total stock-based compensation expense recognized in the condensed consolidated statements of operations by the following types of equity awards; Three Months Ended 2020 2019 Equity Incentive Plan Options $ 446 $ 485 Restricted Stock Awards 10,387 5,959 Total $ 10,833 $ 6,444 As of June 30, 2020 , there was $58.2 million of total unrecognized compensation cost related to unvested stock-based compensation agreements. The unrecognized compensation cost as of June 30, 2020 is expected to be fully amortized over the next 4.75 years. Absent the effect of accelerating stock compensation cost for any departures of employees who may continue to vest in their equity awards, the following table summarizes the unrecognized compensation cost and the weighted-average period the cost is expected to be amortized. June 30, 2020 Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized (in years) Equity Incentive Plan Options $ 5,886 4.02 Restricted Stock Awards 52,328 1.78 Total $ 58,214 Equity Incentive Plan During the three months ended June 30, 2020 , 255,541 options were granted under the Amended and Restated Equity Incentive Plan, or EIP. The aggregate fair value of options granted was $3.3 million and was based on the estimated fair value per-option granted of $12.91 . As of June 30, 2020 , there were 1,780,511 EIP options outstanding, of which 768,587 were unvested. During the three months ended June 30, 2020 , the Board of Directors granted 472,595 restricted stock units to certain employees of the Company. The aggregate value of these awards was $34.2 million based on the grant date stock price, which ranged from $69.60 to $79.74 . As permitted under the terms of the EIP, the Compensation Committee, as Administrator of the EIP, authorized the withholding of taxes not to exceed the minimum statutory withholding amount, through the surrender of restricted stock units upon the vesting of restricted stock units and the surrender of shares of Class A Common Stock issuable upon the vesting of restricted stock. The participants surrendered 122,586 shares of Class A Common Stock issuable upon the vesting of restricted stock and recorded them as treasury shares at a cost of $9.1 million during the three months ended June 30, 2020. Employee Stock Purchase Plan For the quarterly offering period that closed on June 30, 2020 , 59,855 Class A Common Stock shares were purchased by employees under the Company's Employee Stock Purchase Plan, or ESPP. Since the program's inception, 2,719,658 shares have been purchased by employees. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3). A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The financial instruments measured at fair value in the accompanying condensed consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long-term deferred compensation plan asset (1) 12,293 — — 12,293 Total Assets $ 12,293 $ — $ — $ 12,293 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,223 1,223 Current derivative instruments (3) — 21,224 — 21,224 Long-term derivative instruments (3) — 37,372 — 37,372 Long-term deferred compensation plan liability (1) 12,293 — — 12,293 Total Liabilities $ 12,293 $ 58,596 $ 1,223 $ 72,112 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long-term deferred compensation plan asset (1) 5,879 — — 5,879 Total Assets $ 5,879 $ — $ — $ 5,879 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,224 $ 1,224 Current derivative instruments (3) — 18,831 — 18,831 Long-term derivative instruments (3) — 37,819 — 37,819 Long-term deferred compensation plan liability (1) 5,879 — — 5,879 Total Liabilities $ 5,879 $ 56,650 $ 1,224 $ 63,753 (1) Investments in this category consist primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our condensed consolidated balance sheets. (2) The Company recognized a contingent consideration liability of $3.6 million in connection with its acquisition of Aquilent in fiscal 2017. As of both June 30, 2020 and March 31, 2020 , the estimated fair value of the contingent consideration liability was $1.2 million , and was valued using probability-weighted cash flows, which is based on the use of Level 3 fair value measurement inputs. (3) The Company’s interest rate swaps are considered over-the-counter derivatives and fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 9 to the condensed consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. The fair value of the Company's cash and cash equivalents, which are Level 1 inputs, approximated its carrying values at June 30, 2020 and March 31, 2020 . The fair value of the Company's debt instruments approximated its carrying value at June 30, 2020 and March 31, 2020 . The fair value of debt is determined using quoted prices or other market information obtained from recent trading activity of each debt tranche in markets that are not active (Level 2 inputs). The fair value is corroborated by prices derived from the interest rate spreads of recently completed leveraged loan transactions of a similar credit profile, industry, and terms to that of the Company. The fair value of the Senior Notes is determined using quoted prices or other market information obtained from recent trading activity in the high-yield bond market (Level 2 inputs). |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS Two of our directors currently serve on the board of directors of a subcontractor to which the Company subcontracted $23.3 million and $24.2 million of services for the three months ended June 30, 2020 and 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Letters of Credit and Third-Party Guarantees As of June 30, 2020 and March 31, 2020 , the Company was contingently liable under open standby letters of credit and bank guarantees issued by our banks in favor of third parties that totaled $9.6 million and $9.7 million , respectively. These letters of credit and bank guarantees primarily support insurance and bid and performance obligations. At both June 30, 2020 and March 31, 2020 , approximately $0.9 million of these instruments reduced the available borrowings under the Revolving Credit Facility. The remainder is guaranteed under a separate $20.0 million facility, originally established in fiscal 2015 and most recently increased to $20.0 million in the first quarter of fiscal 2021, of which $11.3 million and $6.2 million were available to the Company at June 30, 2020 and March 31, 2020 , respectively. Government Contracting Matters - Provision for Claimed Indirect Costs For both the three months ended June 30, 2020 and 2019 , approximately 97% of the Company's revenue was generated from contracts where the end user was an agency or department of the U.S. government, including contracts where the Company performed either as a prime contractor or subcontractor, and regardless of the geographic location in which the work was performed. U.S. government contracts and subcontracts are subject to extensive legal and regulatory requirements. From time to time and in the ordinary course of business, agencies of the U.S. government audit our claimed indirect costs and conduct inquiries and investigations of our business practices with respect to government contracts to determine whether the Company’s operations are conducted in accordance with these requirements and the terms of the relevant contracts. U.S. government agencies, including the Defense Contract Audit Agency (DCAA), routinely audit our claimed indirect costs for compliance with the Cost Accounting Standards and the Federal Acquisition Regulation. These agencies also conduct reviews and investigations and make inquiries regarding our accounting and other systems in connection with our performance and business practices with respect to our government contracts and subcontracts. U.S. government audits, inquiries, or investigations of the Company, whether related to the Company's U.S. government contracts or subcontracts or conducted for other reasons, could result in administrative, civil, or criminal liabilities, including withholding of payments, suspension of payments, repayments, fines, or penalties being imposed upon the Company, or could lead to suspension or debarment from future U.S. government contracting. Management believes it has recorded the appropriate provision for claimed indirect costs for any audit, inquiry, or investigation of which it is aware that may be subject to any reductions and/or penalties. As of June 30, 2020 and March 31, 2020 , the Company had recorded liabilities of approximately $232.5 million and $224.6 million , respectively, for estimated adjustments to claimed indirect costs based on its historical DCAA audit results, including the final resolution of such audits with the Defense Contract Management Agency, for claimed indirect costs incurred subsequent to fiscal 2011, and for contracts not yet closed that are subject to audit and final resolution. Litigation Our performance under U.S. government contracts and compliance with the terms of those contracts and applicable laws and regulations are subject to continuous audit, review, and investigation by the U.S. government, which may include such investigative techniques as subpoenas or civil investigative demands. Given the nature of our business, these audits, reviews, and investigations may focus, among other areas, on various aspects of procurement integrity, labor time reporting, sensitive and/or classified information access and control, executive compensation, and post government employment restrictions. We are not always aware of our status in such matters, but we are currently aware of certain pending audits and investigations involving labor time reporting, procurement integrity, and classified information access. In addition, from time to time, we are also involved in legal proceedings and investigations arising in the ordinary course of business, including those relating to employment matters, relationships with clients and contractors, intellectual property disputes, and other business matters. These legal proceedings seek various remedies, including claims for monetary damages in varying amounts, none of which are considered material, or are unspecified as to amount. Although the outcome of any such matter is inherently uncertain and may be materially adverse, based on current information, we do not expect any of the currently ongoing audits, reviews, investigations, or litigation to have a material adverse effect on our financial condition and results of operations. As of June 30, 2020 and March 31, 2020 , there were no material amounts accrued in the condensed consolidated financial statements related to these proceedings. On June 7, 2017, Booz Allen Hamilton Inc. was informed that the U.S. Department of Justice (DOJ) is conducting a civil and criminal investigation of the Company. In connection with the investigation, the DOJ has requested information from the Company relating to certain elements of the Company’s cost accounting and indirect cost charging practices with the U.S. government. Since learning of the investigation, the Company has engaged a law firm experienced in these matters to represent the Company in connection with this matter and respond to the government's requests. As is commonly the case with this type of matter, the Company has also been in contact with other regulatory agencies and bodies, including the SEC, which notified the Company that it is conducting an investigation that the Company believes relates to the matters that are also the subject of the DOJ's investigation. The Company may receive additional regulatory or governmental inquiries related to the matters that are the subject of the DOJ's investigation. In accordance with the Company's practice, the Company is cooperating with all relevant government parties. The total cost associated with these matters will depend on many factors, including the duration of these matters and any related findings. At this stage, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these matters. On June 19, 2017, a purported stockholder of the Company filed a putative class action lawsuit in the United States District Court for the Eastern District of Virginia styled Langley v. Booz Allen Hamilton Holding Corp., No. 17-cv-00696 naming the Company, its Chief Executive Officer and its Chief Financial Officer as defendants purportedly on behalf of all purchasers of the Company’s securities from May 19, 2016 through June 15, 2017. On September 5, 2017, the court named two lead plaintiffs, and on October 20, 2017, the lead plaintiffs filed a consolidated amended complaint. The complaint asserts claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, alleging misrepresentations or omissions by the Company purporting to relate to matters that are the subject of the DOJ investigation described above. The plaintiffs seek to recover from the Company and the individual defendants an unspecified amount of damages. The Company believes the suit lacks merit and intends to defend against the lawsuit. Motions to dismiss were argued on January 12, 2018, and on February 8, 2018, the court dismissed the amended complaint in its entirety without prejudice. At this stage of the lawsuit, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with the lawsuit. On November 13, 2017, a Verified Shareholder Derivative Complaint was filed in the United States District Court for the District of Delaware styled Celine Thum v. Rozanski et al., C.A. No. 17-cv-01638, naming the Company as a nominal defendant and numerous current and former officers and directors as defendants. The complaint asserts claims for breach of fiduciary duties, unjust enrichment, waste of corporate assets, abuse of control, gross mismanagement, and violations of Sections 14(a), 10(b) and 20(a) of the Exchange Act, purportedly relating to matters that are the subject of the DOJ investigation described above. The parties have stipulated to a stay of the proceedings pending the outcome of the securities litigation (described above), which the court so ordered on January 24, 2018. On December 12, 2019, the court ordered that the stay remain in effect and ordered the parties to submit periodic status reports. On May 27, 2020, the parties submitted status reports stating that plaintiff believes the stay should remain in effect and defendants do not object to the stay remaining in effect. At this stage of the lawsuit, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with the lawsuit. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with 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 financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition, including the accrual of indirect costs, bonus and other incentive compensation, stock-based compensation, reserves for uncertain tax positions and valuation allowances on deferred tax assets, provisions for income taxes, postretirement obligations, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ materially from management's estimates. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). This guidance requires companies to record an allowance for expected credit losses over the contractual term of certain financial assets, including trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. The Company adopted this standard effective April 1, 2020 using the modified retrospective method. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This guidance requires a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with that of implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 is effective for interim reporting periods for fiscal years beginning after December 15, 2019. The Company adopted this standard effective April 1, 2020 on a prospective basis, and adoption of this standard did not have a material impact on the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The guidance includes removal of certain exceptions to the general principles of Topic 740, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The provisions of this standard are effective for years beginning after December 15, 2020, with early adoption permitted. The Company early adopted the standard effective April 1, 2020, and applied most of the relevant amendments prospectively. The Company’s adoption did not have a material impact on the condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The guidance contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other areas or transactions that are impacted by reference rate reform. The Company elected to adopt Topic 848 in fiscal 2020 and as of June 30, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the Company’s ability to apply hedge accounting to our derivative financial instruments. The Company continues to evaluate the impact of the guidance and may apply other elections, as applicable and as allowed by Topic 848. Recent Accounting Pronouncements Not Yet Adopted Other accounting and reporting pronouncements effective after June 30, 2020 and issued through the filing date are not expected to have a material impact on the Company's condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below presents the total revenue for each type of contract: Three Months Ended 2020 2019 Cost-reimbursable $ 1,092,048 56 % $ 1,026,593 56 % Time-and-materials 502,546 26 % 420,595 23 % Fixed-price 361,859 18 % 377,988 21 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % Revenue by Customer Type: Three Months Ended 2020 2019 U.S. government: Defense Clients $ 931,336 47 % $ 858,936 47 % Intelligence Clients 407,104 21 % 419,067 23 % Civil Clients 557,923 29 % 492,033 27 % Total U.S. government 1,896,363 97 % 1,770,036 97 % Global Commercial Clients 60,090 3 % 55,140 3 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Three Months Ended 2020 2019 Prime Contractor $ 1,803,604 92 % $ 1,673,429 92 % Sub-contractor 152,849 8 % 151,747 8 % Total Revenue $ 1,956,453 100 % $ 1,825,176 100 % |
Summary of Contract Balances | The following table summarizes the contract balances recognized on the Company’s condensed consolidated balance sheets: Balance Sheet line item June 30, March 31, Contract assets: Current Accounts receivable, net of allowance $ 999,497 $ 988,634 Long-term Other long-term assets 63,016 62,600 Total $ 1,062,513 $ 1,051,234 Contract liabilities: Advance payments, billings in excess of costs incurred and deferred revenue Other current liabilities $ 24,631 $ 26,018 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the income used to compute basic and diluted EPS | A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows: Three Months Ended 2020 2019 Earnings for basic computations (1) $ 128,686 $ 116,766 Weighted-average common shares outstanding for basic computations 138,153,464 140,004,627 Earnings for diluted computations (1) $ 128,689 $ 116,770 Dilutive stock options and restricted stock 1,018,990 1,124,674 Weighted-average common shares outstanding for diluted computations 139,172,454 141,129,301 Earnings per common share Basic $ 0.93 $ 0.83 Diluted $ 0.92 $ 0.83 (1) During both the three months ended June 30, 2020 and 2019 , approximately 0.7 million participating securities were paid dividends totaling $0.2 million . For both the three months ended June 30, 2020 and 2019 , there were undistributed earnings of $0.4 million allocated to the participating class of securities in both basic and diluted EPS. The allocated undistributed earnings and the dividends paid comprise the difference between net income presented on the condensed consolidated statements of operations and earnings for basic and diluted computations for both the three months ended June 30, 2020 and 2019 . |
Accounts Receivable, Net of A_2
Accounts Receivable, Net of Allowance (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net of Allowance | Accounts receivable, net of allowance consisted of the following: June 30, March 31, Current assets Accounts receivable–billed $ 526,500 $ 474,822 Accounts receivable–unbilled 999,497 988,634 Allowance for doubtful accounts (4,452 ) (3,985 ) Accounts receivable, net of allowance 1,521,545 1,459,471 Other long-term assets Accounts receivable–unbilled 63,016 62,600 Total accounts receivable, net $ 1,584,561 $ 1,522,071 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued expenses consisted of the following: June 30, March 31, Vendor payables $ 383,523 $ 432,953 Accrued expenses 365,352 265,058 Total accounts payable and other accrued expenses $ 748,875 $ 698,011 |
Accrued Compensation and Bene_2
Accrued Compensation and Benefits (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Compensation Related Costs [Abstract] | |
Schedule of accrued compensation and benefits | Accrued compensation and benefits consisted of the following: June 30, March 31, Bonus $ 22,496 $ 114,359 Retirement 59,688 41,604 Vacation 196,443 159,512 Other 22,778 33,300 Total accrued compensation and benefits $ 301,405 $ 348,775 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: June 30, 2020 March 31, 2020 Interest Rate Outstanding Balance Interest Rate Outstanding Balance Term Loan A 1.68 % $ 1,345,245 2.49 % $ 1,363,739 Term Loan B 1.93 % 387,129 2.74 % 388,102 Revolver — 3.75 % 100,000 Senior Notes 5.13 % 350,000 5.13 % 350,000 Less: Unamortized debt issuance costs and discount on debt (15,181 ) (15,997 ) Total 2,067,193 2,185,844 Less: Current portion of long-term debt (77,865 ) (177,865 ) Long-term debt, net of current portion $ 1,989,328 $ 2,007,979 |
Schedule of Interest Expense | Interest on debt and debt-like instruments consisted of the following: Three Months Ended 2020 2019 (In thousands) Term Loan A Interest Expense $ 6,918 $ 13,450 Term Loan B Interest Expense 2,214 4,420 Interest on Revolving Credit Facility 799 — Senior Notes Interest Expense 4,484 4,484 Deferred Payment Obligation Interest — 2,011 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 1,070 1,219 Interest Swap Expense 4,441 (523 ) Other 309 126 Total Interest Expense $ 20,235 $ 25,187 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the condensed consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Revolving Credit Facility is recorded as a long-term asset on the condensed consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The effect of derivative instruments on the accompanying condensed consolidated financial statements for the three months ended June 30, 2020 and 2019 is as follows: Three Months Ended June 30, Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain or (Loss) Recognized in AOCL on Derivatives Amount of Gain or (Loss) Reclassified from AOCL into Income Interest Expense on Condensed Consolidated Statements of Operations 2020 2019 2020 2019 2020 2019 Interest rate swaps Interest expense $ (6,387 ) $ (19,748 ) $ (4,441 ) $ 523 $ (20,235 ) $ (25,187 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedules of Lease Cost | The Company’s total lease cost is recorded primarily within general and administrative expenses on the condensed consolidated statement of operations and consisted of the following: Three Months Ended 2020 2019 Operating lease cost $ 17,127 $ 17,960 Short-term lease cost 1,601 2,417 Variable lease cost 3,534 2,562 Total operating lease costs $ 22,262 $ 22,939 Supplemental cash flow information related to leases was as follows: Three Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 16,719 $ 19,912 Operating lease liabilities arising from obtaining ROU assets (1) 3,750 2,440 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: June 30, 2020 Weighted average remaining lease term (in years) 5.88 Weighted average discount rate 4.75 % |
Schedule of Future Minimum Operating Lease Payments | Future minimum operating lease payments for noncancelable operating leases as of June 30, 2020 are as follows: Fiscal Year Ending Operating Lease Payments Remainder of 2021 $ 47,461 2022 66,454 2023 62,476 2024 51,212 2025 45,691 Thereafter 86,459 Total future lease payments 359,753 Less: imputed interest (49,708 ) Total lease liabilities $ 310,045 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: June 30, March 31, Postretirement benefit obligations 125,584 124,375 Other (1) 208,125 207,312 Total other long-term liabilities $ 333,709 $ 331,687 (1) Because of condensed financial statement presentation, components of other long-term liabilities at June 30, 2020 and March 31, 2020 primarily include the Company's long-term liability portion of the Company's derivative instruments, the long-term disability obligation, deferred tax liabilities and reserves for uncertain tax positions. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of net postretirement medical expense | The components of net postretirement medical expense for the Officer Medical Plan were as follows: Three Months Ended 2020 2019 Service cost $ 1,414 $ 1,239 Interest cost 1,059 1,215 Total postretirement medical expense $ 2,473 $ 2,454 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table shows the changes in accumulated other comprehensive loss, net of tax: Three Months Ended June 30, 2020 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ (4,127 ) $ (41,874 ) $ (46,001 ) Other comprehensive loss before reclassifications (1) — (4,722 ) (4,722 ) Amounts reclassified from accumulated other comprehensive loss 22 3,283 3,305 Net current-period other comprehensive income (loss) 22 (1,439 ) (1,417 ) End of period $ (4,105 ) $ (43,313 ) $ (47,418 ) (1) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $1.7 million for the three months ended June 30, 2020 . Three Months Ended June 30, 2019 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ (9,068 ) $ (2,122 ) $ (11,190 ) Other comprehensive loss before reclassifications (2) — (14,579 ) (14,579 ) Amounts reclassified from accumulated other comprehensive loss 34 (386 ) (352 ) Net current-period other comprehensive income (loss) 34 (14,965 ) (14,931 ) End of period $ (9,034 ) $ (17,087 ) $ (26,121 ) (2) Changes in other comprehensive loss before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $5.2 million for the three months ended June 30, 2019 . |
Reclassification out of accumulated other comprehensive loss to net income | The following table presents the reclassifications out of accumulated other comprehensive loss to net income: Three Months Ended 2020 2019 Amounts reclassified from accumulated other comprehensive loss: Post-retirement plans (Note 13): Amortization of net actuarial loss included in net periodic benefit cost $ 29 $ 44 Tax benefit (7 ) (10 ) Net of tax $ 22 $ 34 Derivatives designated as cash flow hedges (Note 9): Reclassification of hedge loss (gain) $ 4,441 $ (523 ) Tax (benefit) expense (1,158 ) 137 Net of tax $ 3,283 $ (386 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense Recognized in the Condensed Consolidated Statements of Operations | The following table summarizes stock-based compensation expense recognized in the condensed consolidated statements of operations: Three Months Ended 2020 2019 Cost of revenue $ 4,498 $ 1,934 General and administrative expenses 6,335 4,510 Total $ 10,833 $ 6,444 The following table summarizes the total stock-based compensation expense recognized in the condensed consolidated statements of operations by the following types of equity awards; Three Months Ended 2020 2019 Equity Incentive Plan Options $ 446 $ 485 Restricted Stock Awards 10,387 5,959 Total $ 10,833 $ 6,444 |
Schedule of Unrecognized Compensation Cost | Absent the effect of accelerating stock compensation cost for any departures of employees who may continue to vest in their equity awards, the following table summarizes the unrecognized compensation cost and the weighted-average period the cost is expected to be amortized. June 30, 2020 Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized (in years) Equity Incentive Plan Options $ 5,886 4.02 Restricted Stock Awards 52,328 1.78 Total $ 58,214 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The financial instruments measured at fair value in the accompanying condensed consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long-term deferred compensation plan asset (1) 12,293 — — 12,293 Total Assets $ 12,293 $ — $ — $ 12,293 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,223 1,223 Current derivative instruments (3) — 21,224 — 21,224 Long-term derivative instruments (3) — 37,372 — 37,372 Long-term deferred compensation plan liability (1) 12,293 — — 12,293 Total Liabilities $ 12,293 $ 58,596 $ 1,223 $ 72,112 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long-term deferred compensation plan asset (1) 5,879 — — 5,879 Total Assets $ 5,879 $ — $ — $ 5,879 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,224 $ 1,224 Current derivative instruments (3) — 18,831 — 18,831 Long-term derivative instruments (3) — 37,819 — 37,819 Long-term deferred compensation plan liability (1) 5,879 — — 5,879 Total Liabilities $ 5,879 $ 56,650 $ 1,224 $ 63,753 (1) Investments in this category consist primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our condensed consolidated balance sheets. (2) The Company recognized a contingent consideration liability of $3.6 million in connection with its acquisition of Aquilent in fiscal 2017. As of both June 30, 2020 and March 31, 2020 , the estimated fair value of the contingent consideration liability was $1.2 million , and was valued using probability-weighted cash flows, which is based on the use of Level 3 fair value measurement inputs. (3) The Company’s interest rate swaps are considered over-the-counter derivatives and fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 9 to the condensed consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. |
Business Overview (Details)
Business Overview (Details) | 3 Months Ended |
Jun. 30, 2020employeesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | segment | 1 |
Number of employees | employee | 27,400 |
Revenue - Schedules of Disaggre
Revenue - Schedules of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,956,453 | $ 1,825,176 |
Total revenue (as a percent) | 100.00% | 100.00% |
Prime Contractor | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,803,604 | $ 1,673,429 |
Total revenue (as a percent) | 92.00% | 92.00% |
Sub-contractor | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 152,849 | $ 151,747 |
Total revenue (as a percent) | 8.00% | 8.00% |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,896,363 | $ 1,770,036 |
Total revenue (as a percent) | 97.00% | 97.00% |
Defense Clients | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 931,336 | $ 858,936 |
Total revenue (as a percent) | 47.00% | 47.00% |
Intelligence Clients | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 407,104 | $ 419,067 |
Total revenue (as a percent) | 21.00% | 23.00% |
Civil Clients | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 557,923 | $ 492,033 |
Total revenue (as a percent) | 29.00% | 27.00% |
Global Commercial Clients | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 60,090 | $ 55,140 |
Total revenue (as a percent) | 3.00% | 3.00% |
Cost-reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,092,048 | $ 1,026,593 |
Total revenue (as a percent) | 56.00% | 56.00% |
Time-and-materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 502,546 | $ 420,595 |
Total revenue (as a percent) | 26.00% | 23.00% |
Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 361,859 | $ 377,988 |
Total revenue (as a percent) | 18.00% | 21.00% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue, amount of remaining performance obligation | $ 6,300 | $ 6,300 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 19.5 | $ 16.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, expected timing, period one | 12 months | ||
Remaining performance obligation, expected timing, period two | 24 months | ||
Remaining performance obligation, percentage | 75.00% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Contract assets: | ||
Current | $ 999,497 | $ 988,634 |
Long-term | 63,016 | 62,600 |
Total | 1,062,513 | 1,051,234 |
Contract liabilities: | ||
Advance payments, billings in excess of costs incurred and deferred revenue | $ 24,631 | $ 26,018 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Earnings for basic computations | $ 128,686 | $ 116,766 |
Earnings for diluted computations | $ 128,689 | $ 116,770 |
Dilutive stock options and restricted stock (in shares) | 1,018,990 | 1,124,674 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.93 | $ 0.83 |
Diluted (in dollars per share) | $ 0.92 | $ 0.83 |
Unvested shares, cash dividends paid | $ 43,832 | $ 32,412 |
Restricted stock | ||
Earnings per common share | ||
Unvested shares participating in the payment of the Company's dividends declared (in shares) | 700,000 | 700,000 |
Unvested shares, cash dividends paid | $ 200 | $ 200 |
Undistributed earnings allocated to participating securities, basic | 400 | 400 |
Undistributed earnings allocated to participating securities, diluted | $ 400 | $ 400 |
Stock options | ||
Earnings per common share | ||
Antidilutive options excluded from the computation of EPS (in shares) | 200,000 | 100,000 |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average common shares outstanding for basic computations (in shares) | 138,153,464 | 140,004,627 |
Weighted-average common shares outstanding for diluted computations (in shares) | 139,172,454 | 141,129,301 |
Accounts Receivable, Net of A_3
Accounts Receivable, Net of Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Current assets | |||
Accounts receivable–billed | $ 526,500 | $ 474,822 | |
Accounts receivable–unbilled | 999,497 | 988,634 | |
Allowance for doubtful accounts | (4,452) | (3,985) | |
Accounts receivable, net of allowance | 1,521,545 | 1,459,471 | |
Other long-term assets | |||
Accounts receivable–unbilled | 63,016 | 62,600 | |
Total accounts receivable, net | 1,584,561 | $ 1,522,071 | |
Provision for doubtful accounts | $ (30) | $ 1,900 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Vendor payables | $ 383,523 | $ 432,953 |
Accrued expenses | 365,352 | 265,058 |
Total accounts payable and other accrued expenses | 748,875 | 698,011 |
Unfavorable Regulatory Action | ||
Loss Contingencies [Line Items] | ||
Provision for claimed indirect costs | $ 232,500 | $ 224,600 |
Accrued Compensation and Bene_3
Accrued Compensation and Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Compensation Related Costs [Abstract] | ||
Bonus | $ 22,496 | $ 114,359 |
Retirement | 59,688 | 41,604 |
Vacation | 196,443 | 159,512 |
Other | 22,778 | 33,300 |
Total accrued compensation and benefits | $ 301,405 | $ 348,775 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Nov. 26, 2019 | Nov. 25, 2019 |
Long-term Debt, Current and Noncurrent [Abstract] | ||||
Less: Unamortized debt issuance costs and discount on debt | $ (15,181) | $ (15,997) | ||
Total | 2,067,193 | 2,185,844 | ||
Less: Current portion of long-term debt | (77,865) | (177,865) | ||
Long-term debt, net of current portion | 1,989,328 | $ 2,007,979 | ||
Revolver | ||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||
Interest rate | 3.75% | |||
Long-term debt outstanding | $ 0 | $ 100,000 | ||
Secured Debt | Term Loan A | ||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||
Interest rate | 1.68% | 2.49% | ||
Long-term debt outstanding | $ 1,345,245 | $ 1,363,739 | ||
Secured Debt | Term Loan B | ||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||
Interest rate | 1.93% | 2.74% | ||
Long-term debt outstanding | $ 387,129 | $ 388,102 | $ 389,000 | $ 389,000 |
Senior Notes | Senior Notes | ||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||
Interest rate | 5.13% | 5.13% | ||
Long-term debt outstanding | $ 350,000 | $ 350,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Nov. 26, 2019 | Nov. 25, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Apr. 25, 2017 |
Debt Instrument [Line Items] | ||||||
Long-term debt, maximum expanded loan facility | $ 627,000,000 | |||||
Percentage of consolidated EBITDA required for expansion of loan | 100.00% | |||||
Net secured leverage ratio | 350.00% | |||||
Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Interest payments | $ 2,200,000 | $ 4,400,000 | ||||
Term Loan B | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.75% | 2.00% | 1.75% | |||
Term Loan B | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.75% | 1.00% | 0.75% | |||
Term Loan A | ||||||
Debt Instrument [Line Items] | ||||||
Interest payments | $ 6,900,000 | 13,300,000 | ||||
Term Loan A | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.25% | |||||
Term Loan A | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 2.00% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Proceeds from lines of credit | $ 0 | 0 | ||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.25% | |||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 2.00% | |||||
Revolving Credit Facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.25% | |||||
Revolving Credit Facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.00% | |||||
Secured Debt | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.00% | |||||
Secured Debt | Overnight Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.50% | |||||
Secured Debt | Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 389,000,000 | $ 389,000,000 | $ 387,129,000 | $ 388,102,000 | ||
Premium payable (as a percent) | 1.00% | |||||
Period for premium payable in connection with repricing transactions | 6 months | |||||
Quarterly periodic payment percentage, principal | 0.25% | |||||
Secured Debt | Term Loan A | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 1,345,245,000 | 1,363,739,000 | ||||
Quarterly periodic payment percentage, principal | 1.25% | |||||
Secured Debt | Term Loan A | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.25% | |||||
Secured Debt | Term Loan A | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Secured Debt | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
Secured Debt | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.35% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Revolving credit facility, amount outstanding | 100,000,000 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | 100,000,000 | |||||
Senior Notes | Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 350,000,000 | $ 350,000,000 | ||||
Interest payments | 9,000,000 | $ 9,000,000 | ||||
Face amount of debt | $ 350,000,000 | |||||
Debt instrument, stated percentage | 5.125% | |||||
Debt issuance costs | $ 6,700,000 | |||||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount of interest rate swaps | $ 1,000,000,000 | |||||
May 1, 2020 | Senior Notes | Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 102.56% | |||||
May 1, 2021 | Senior Notes | Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 101.28% | |||||
May 1, 2022 | Senior Notes | Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price (as a percent) | 100.00% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Deferred payment on obligation interest | $ 0 | $ 2,011 |
Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) | 1,070 | 1,219 |
Interest Swap Expense | 4,441 | (523) |
Other | 309 | 126 |
Total Interest Expense | 20,235 | 25,187 |
Secured Debt | Term Loan A | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | 6,918 | 13,450 |
Secured Debt | Term Loan B | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | 2,214 | 4,420 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | 799 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | $ 4,484 | $ 4,484 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 21.2 | $ 18.8 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 37.4 | $ 37.8 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of interest rate swaps | 1,000 | |
Estimate of amount to be reclassified over the next 12 months | $ 21.4 |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effect of Derivatives on Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest Expense on Condensed Consolidated Statements of Operations | $ (20,235) | $ (25,187) |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in AOCL on Derivatives | (6,387) | (19,748) |
Amount of Gain or (Loss) Reclassified from AOCL into Income | (4,441) | 523 |
Interest Expense on Condensed Consolidated Statements of Operations | $ (20,235) | $ (25,187) |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 17,127 | $ 17,960 |
Short-term lease cost | 1,601 | 2,417 |
Variable lease cost | 3,534 | 2,562 |
Total operating lease costs | $ 22,262 | $ 22,939 |
Leases - Minimum Future Obligat
Leases - Minimum Future Obligations for Operating Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 47,461 |
2022 | 66,454 |
2023 | 62,476 |
2024 | 51,212 |
2025 | 45,691 |
Thereafter | 86,459 |
Total future lease payments | 359,753 |
Less: imputed interest | (49,708) |
Total lease liabilities | $ 310,045 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 16,719 | $ 19,912 |
Operating lease liabilities arising from obtaining ROU assets | $ 3,750 | $ 2,440 |
Weighted average remaining lease term (in years) | 5 years 10 months 17 days | |
Weighted average discount rate (as a percent) | 4.75% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 24.30% | 24.70% | |
Federal statutory rate (as a percent) | 21.00% | ||
Income tax uncertainty | $ 59.1 | $ 56.1 | |
Reserve for uncertain tax positions, research and development tax credits | 47.6 | ||
Reserve for uncertain tax positions, acquisitions | 10.2 | ||
Tax Years 2013-2015 | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax assessments | 11.7 | ||
Tax Years 2016-2019 | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax assessments | $ 32.5 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Postretirement benefit obligations | $ 125,584 | $ 124,375 |
Other | 208,125 | 207,312 |
Total other long-term liabilities | $ 333,709 | $ 331,687 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percent of match | 6.00% | ||
Employees’ capital accumulation plan, total expense recognized | $ 41,100,000 | $ 36,900,000 | |
Employees’ capital accumulation plan, company-paid contributions | 23,200,000 | 19,900,000 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term disability obligation | $ 10,700,000 | $ 10,700,000 | |
Maximum eligible deferral of compensation, percentage | 100.00% | ||
Deferred compensation plan, assets | $ 12,300,000 | 5,879,000 | |
Deferred compensation plan, liabilities | 12,300,000 | 5,900,000 | |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, annual cash award granted per year of service, amount | 10,000 | ||
Officer Medical Plan | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1,414,000 | 1,239,000 | |
Interest cost | 1,059,000 | 1,215,000 | |
Total postretirement medical expense | 2,473,000 | $ 2,454,000 | |
Defined benefit plan, unfunded status of plan | $ 120,900,000 | $ 119,600,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | $ 856,356 | $ 675,366 |
Other comprehensive income (loss) before reclassifications | (4,722) | (14,579) |
Amounts reclassified from accumulated other comprehensive loss | 3,305 | (352) |
Total other comprehensive income (loss), net of tax | (1,417) | (14,931) |
End of period | 882,467 | 748,823 |
Post-retirement plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (4,127) | (9,068) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 22 | 34 |
Total other comprehensive income (loss), net of tax | 22 | 34 |
End of period | (4,105) | (9,034) |
Derivatives designated as cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (41,874) | (2,122) |
Other comprehensive income (loss) before reclassifications | (4,722) | (14,579) |
Amounts reclassified from accumulated other comprehensive loss | 3,283 | (386) |
Total other comprehensive income (loss), net of tax | (1,439) | (14,965) |
End of period | (43,313) | (17,087) |
Other comprehensive income (loss) before reclassifications, tax | 1,700 | 5,200 |
Totals | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (46,001) | (11,190) |
End of period | $ (47,418) | $ (26,121) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | $ 170,816 | $ 155,830 |
Tax (benefit) expense | (41,487) | (38,444) |
Net income | 129,329 | 117,386 |
Reclassification out of Accumulated Other Comprehensive Income | Post-retirement Plans | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 29 | 44 |
Tax (benefit) expense | 7 | 10 |
Net income | 22 | 34 |
Reclassification out of Accumulated Other Comprehensive Income | Derivatives designated as cash flow hedges | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 4,441 | (523) |
Tax (benefit) expense | (1,158) | 137 |
Net income | $ 3,283 | $ (386) |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 10,833 | $ 6,444 |
Stock options | EIP | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 446 | 485 |
Restricted stock | Annual Incentive Plan | Class A Common Stock | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 10,387 | 5,959 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4,498 | 1,934 |
General and administrative expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 6,335 | $ 4,510 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 58,214 |
Unrecognized compensation cost, amortization period | 4 years 9 months |
EIP | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 5,886 |
Unrecognized compensation cost, amortization period | 4 years 7 days |
Annual Incentive Plan | Restricted stock | Class A Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 52,328 |
Unrecognized compensation cost, amortization period | 1 year 9 months 10 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | 116 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Jun. 30, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock, total fair value | $ 34,200 | |||||
Repurchase of common stock, value | $ 75,506 | [1] | $ 8,286 | [2] | ||
EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted during period (in shares) | 255,541 | |||||
Repurchase of common stock (in shares) | 122,586,000 | |||||
Repurchase of common stock, value | $ 9,100 | |||||
Stock options | EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of options granted | $ 3,300 | |||||
Estimated fair value per option granted (in dollars per share) | $ 12.91 | |||||
Stock options outstanding (in shares) | 1,780,511 | 1,780,511 | ||||
Stock options outstanding, unvested (in shares) | 768,587 | 768,587 | ||||
Restricted stock units (RSUs) | EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted (in shares) | 472,595 | |||||
Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase of common stock (in shares) | 900,000 | 93,000 | ||||
Repurchase of common stock, value | $ 66,400 | $ 5,900 | ||||
Stock purchased by employees (in shares) | 59,855 | 2,719,658 | ||||
Minimum | EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock price on grant date (in dollars per share) | $ 69.60 | $ 69.60 | ||||
Maximum | EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock price on grant date (in dollars per share) | $ 79.74 | $ 79.74 | ||||
[1] | During the three months ended June 30, 2020 , the Company purchased 0.9 million shares of the Company’s Class A Common Stock in a series of open market transactions for $66.4 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2021 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2020. | |||||
[2] | During the three months ended June 30, 2019 , the Company purchased 93 thousand shares of the Company’s Class A Common Stock in a series of open market transactions for $5.9 million . Additionally, the Company repurchased shares during the first quarter of fiscal 2020 to cover the minimum statutory withholding taxes on restricted stock units that vested on June 30, 2019. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2017 |
Assets, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | $ 12,300 | $ 5,879 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | 12,300 | 5,900 | |
Fair Value, Measurements, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | 12,293 | ||
Total Assets | 12,293 | 5,879 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration, liability | 1,223 | 1,224 | |
Current derivative instruments | 21,224 | 18,831 | |
Long term derivative instruments | 37,372 | 37,819 | |
Long term deferred compensation costs | 12,293 | 5,879 | |
Total Liabilities | 72,112 | 63,753 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | 12,293 | 5,879 | |
Total Assets | 12,293 | 5,879 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration, liability | 0 | 0 | |
Current derivative instruments | 0 | 0 | |
Long term derivative instruments | 0 | 0 | |
Long term deferred compensation costs | 12,293 | 5,879 | |
Total Liabilities | 12,293 | 5,879 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration, liability | 0 | 0 | |
Current derivative instruments | 21,224 | 18,831 | |
Long term derivative instruments | 37,372 | 37,819 | |
Long term deferred compensation costs | 0 | 0 | |
Total Liabilities | 58,596 | 56,650 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long term deferred compensation costs | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration, liability | 1,223 | 1,224 | |
Current derivative instruments | 0 | 0 | |
Long term derivative instruments | 0 | 0 | |
Long term deferred compensation costs | 0 | 0 | |
Total Liabilities | 1,223 | 1,224 | |
Other noncurrent liabilities | Fair Value, Measurements, Recurring | Level 3 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration, liability | $ 1,200 | $ 1,200 | $ 3,600 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Affiliated Entity - Services Performed Under Subcontractor $ in Millions | 3 Months Ended | |
Jun. 30, 2020USD ($)director | Jun. 30, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Number of directors | director | 2 | |
Payments to related party | $ | $ 23.3 | $ 24.2 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees and Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Contracts with U.S. government agencies or other U.S. government contractors | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 97.00% | ||
Unfavorable Regulatory Action | |||
Loss Contingencies [Line Items] | |||
Liability for reductions and/or penalties from U.S Government audits | $ 232.5 | $ 224.6 | |
Financial Standby Letter of Credit | |||
Concentration Risk [Line Items] | |||
Guarantor obligations, carrying value | 9.6 | 9.7 | |
Guarantor obligations, reduction to available borrowings | 0.9 | $ 0.9 | |
Guarantor obligations, facility | 20 | ||
Guarantor obligations, available amount | $ 11.3 | $ 6.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) | Sep. 05, 2017plaintiff |
United States District Court for the Eastern District of Virginia styled Langley v. Booz Allen Hamilton Holding Corp. | |
Loss Contingencies [Line Items] | |
Loss contingencies, number of plaintiffs | 2 |