Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | May 20, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34972 | ||
Entity Registrant Name | Booz Allen Hamilton Holding Corporation | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,260,987,781 | ||
Entity Common Stock, Shares Outstanding | 129,320,488 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its Annual Meeting of Stockholders scheduled for July 24, 2024 ar e incorporated by reference into Part III. | ||
Entity Central Index Key | 0001443646 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 554,257 | $ 404,862 |
Accounts receivable, net | $ 2,047,342 | $ 1,774,830 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Prepaid expenses and other current assets | $ 137,310 | $ 108,366 |
Total current assets | 2,738,909 | 2,288,058 |
Property and equipment, net of accumulated depreciation | 188,279 | 195,186 |
Operating lease right-of-use assets | 174,345 | 187,798 |
Intangible assets, net of accumulated amortization | 601,043 | 685,615 |
Goodwill | 2,343,789 | 2,338,399 |
Deferred tax assets | $ 227,171 | $ 573,780 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Other long-term assets | $ 290,152 | $ 281,816 |
Total assets | 6,563,688 | 6,550,652 |
Current liabilities: | ||
Current portion of long-term debt | 61,875 | 41,250 |
Accounts payable and other accrued expenses | 1,050,670 | 1,316,640 |
Accrued compensation and benefits | 506,130 | 445,205 |
Operating lease liabilities | $ 43,187 | $ 51,238 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other current liabilities | $ 30,328 | $ 42,721 |
Total current liabilities | 1,692,190 | 1,897,054 |
Long-term debt, net of current portion | 3,349,941 | 2,770,895 |
Operating lease liabilities, net of current portion | 182,134 | 198,144 |
Income tax reserves | $ 120,237 | $ 552,623 |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Other long-term liabilities | $ 172,624 | $ 139,934 |
Total liabilities | 5,517,126 | 5,558,650 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity: | ||
Common stock, Class A - $0.01 par value - 600,000,000 shares authorized; 167,402,268 shares and 165,872,332 shares issued at March 31, 2024 and March 31, 2023, respectively; 129,643,123 shares and 131,637,588 shares outstanding at March 31, 2024 and March 31, 2023, respectively | 1,674 | 1,659 |
Treasury stock, at cost - 37,759,145 and 34,234,744 shares at March 31, 2024 and March 31, 2023, respectively | (2,277,546) | (1,859,905) |
Additional paid-in capital | 908,837 | 769,460 |
Retained earnings | 2,404,065 | 2,051,455 |
Accumulated other comprehensive income | 9,532 | 29,333 |
Total stockholders’ equity | 1,046,562 | 992,002 |
Total liabilities and stockholders’ equity | $ 6,563,688 | $ 6,550,652 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
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) | 167,402,268 | 165,872,332 |
Common stock, outstanding (in shares) | 129,643,123 | 131,637,588 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | |||
Revenue | $ 10,661,896 | $ 9,258,911 | $ 8,363,700 |
Operating costs and expenses: | |||
Cost of revenue | 4,921,071 | 4,304,810 | 3,899,622 |
Billable expenses | 3,281,776 | 2,808,857 | 2,474,163 |
General and administrative expenses | 1,281,443 | 1,532,912 | 1,158,987 |
Depreciation and amortization | 164,203 | 165,484 | 145,747 |
Total operating costs and expenses | 9,648,493 | 8,812,063 | 7,678,519 |
Operating income | 1,013,403 | 446,848 | 685,181 |
Interest expense | (172,901) | (119,850) | (92,352) |
Other income, net | 12,818 | 40,951 | 11,214 |
Income before income taxes | 853,320 | 367,949 | 604,043 |
Income tax expense | 247,614 | 96,734 | 137,466 |
Net income | 605,706 | 271,215 | 466,577 |
Net loss attributable to non-controlling interest | 0 | 576 | 163 |
Net income attributable to common stockholders | $ 605,706 | $ 271,791 | $ 466,740 |
Earnings per share of common stock (Note 4): | |||
Basic (in dollars per share) | $ 4.61 | $ 2.04 | $ 3.46 |
Diluted (in dollars per share) | $ 4.59 | $ 2.03 | $ 3.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 605,706 | $ 271,215 | $ 466,577 |
Other comprehensive income, net of tax: | |||
Change in unrealized (loss) gain on derivatives designated as cash flow hedges | (2,327) | 10,109 | 27,983 |
Change in postretirement plan costs | (17,474) | 10,639 | 10,373 |
Total other comprehensive (loss) income, net of tax | (19,801) | 20,748 | 38,356 |
Comprehensive income | 585,905 | 291,963 | 504,933 |
Comprehensive loss attributable to non-controlling interest | 0 | 576 | 163 |
Comprehensive income attributable to common stockholders | $ 585,905 | $ 292,539 | $ 505,096 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | |||
Net income | $ 605,706 | $ 271,215 | $ 466,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 164,203 | 165,484 | 145,747 |
Noncash lease expense | 53,604 | 55,950 | 55,881 |
Stock-based compensation expense | 94,982 | 80,272 | 69,784 |
Deferred income taxes | (101,006) | (353,902) | (130,197) |
Amortization of debt issuance costs | 4,920 | 4,350 | 4,619 |
Loss on debt extinguishment | 965 | 10,251 | 2,515 |
Net loss (gains) on dispositions, impairments and other | 8,461 | (45,754) | (3,388) |
Net loss (gains) associated with equity method investment activities | 421 | 2,116 | (12,759) |
Changes in assets and liabilities: | |||
Accounts receivable, net | (269,639) | (130,187) | (154,652) |
Income taxes receivable / payable | (11,370) | 3,708 | 132,029 |
Prepaid expenses and other current and long-term assets | (10,367) | 181,907 | (19,489) |
Accrued compensation and benefits | 47,741 | 1,332 | 12,620 |
Accounts payable and other accrued expenses | (282,072) | 409,516 | 194,827 |
Other current and long-term liabilities | (47,711) | (53,436) | (27,588) |
Net cash provided by operating activities | 258,838 | 602,822 | 736,526 |
Cash flows from investing activities | |||
Purchases of property, equipment, and software | (66,699) | (76,130) | (79,964) |
Payments for business acquisitions, net of cash acquired | (406) | (440,295) | (780,334) |
Payments for cost method investments | (23,535) | (5,000) | (7,000) |
Proceeds from sale of businesses | 0 | 53,409 | 0 |
Other investing activities | 0 | 0 | (427) |
Net cash used in investing activities | (90,640) | (468,016) | (867,725) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 28,665 | 24,663 | 23,371 |
Stock option exercises | 15,745 | 11,384 | 5,929 |
Repurchases of common stock | (404,141) | (223,858) | (418,859) |
Cash dividends paid | (253,413) | (235,726) | (209,057) |
Proceeds from revolving credit facility | 500,000 | 0 | 60,000 |
Repayments on revolving credit facility, term loans, and Senior Notes | (541,250) | (417,068) | (112,257) |
Net proceeds from debt issuance | 635,591 | 414,751 | 487,027 |
Net cash used in financing activities | (18,803) | (425,854) | (163,846) |
Net increase (decrease) in cash and cash equivalents | 149,395 | (291,048) | (295,045) |
Cash and cash equivalents––beginning of year | 404,862 | 695,910 | 990,955 |
Cash and cash equivalents––end of year | 554,257 | 404,862 | 695,910 |
Net cash paid during the period for: | |||
Interest | 155,848 | 115,578 | 64,699 |
Income taxes | 335,911 | 256,394 | 127,069 |
Supplemental disclosures of non-cash investing and financing activities | |||
Share repurchases transacted but not settled and paid | 29,445 | 16,432 | 15,839 |
Unpaid property, equipment and software purchases | $ 16,117 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Common Stock Class A Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
End of period (in shares) | (26,704,577) | |||||||
Beginning of period (in shares) at Mar. 31, 2021 | 162,950,606 | |||||||
Beginning of period at Mar. 31, 2021 | $ 1,071,176 | $ 1,629 | $ (1,216,163) | $ 557,957 | $ 1,757,524 | $ (29,771) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 1,224,207 | |||||||
Issuance of common stock | 22,170 | $ 15 | 22,155 | |||||
Stock options exercised (in shares) | 197,732 | |||||||
Stock options exercised | 5,929 | $ 2 | 5,927 | |||||
Repurchase of common stock (in shares) | (5,083,620) | |||||||
Repurchase of common stock | (419,291) | $ (419,291) | ||||||
Recognition of liability related to future restricted stock units vesting | 1,213 | 1,213 | ||||||
Net income | 466,577 | 466,740 | (163) | |||||
Other comprehensive income, net of tax | 38,356 | 38,356 | ||||||
Dividends paid | (209,193) | (209,193) | ||||||
Stock-based compensation expense | 69,784 | 69,784 | ||||||
Contribution to non-controlling interest | 0 | (814) | 814 | |||||
End of period (in shares) at Mar. 31, 2022 | 164,372,545 | |||||||
End of period at Mar. 31, 2022 | 1,046,721 | $ 1,646 | $ (1,635,454) | 656,222 | 2,015,071 | 8,585 | 651 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
End of period (in shares) | (31,788,197) | |||||||
Issuance of common stock (in shares) | 1,170,726 | |||||||
Issuance of common stock | 24,663 | $ 10 | 24,653 | |||||
Stock options exercised (in shares) | 329,061 | |||||||
Stock options exercised | 11,384 | $ 3 | 11,381 | |||||
Repurchase of common stock (in shares) | (2,100,000) | (2,446,547) | ||||||
Repurchase of common stock | (224,451) | $ (196,200) | $ (224,451) | |||||
Net income | 271,215 | 271,791 | (576) | |||||
Other comprehensive income, net of tax | 20,748 | 20,748 | ||||||
Dividends paid | (235,407) | (235,407) | ||||||
Stock-based compensation expense | 80,272 | 80,272 | ||||||
Contribution to non-controlling interest | 0 | (3,068) | 3,068 | |||||
De-Consolidation of non-controlling interest | $ (3,143) | (3,143) | ||||||
End of period (in shares) at Mar. 31, 2023 | 131,637,588 | 165,872,332 | ||||||
End of period at Mar. 31, 2023 | $ 992,002 | $ 1,659 | $ (1,859,905) | 769,460 | 2,051,455 | 29,333 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
End of period (in shares) | 34,234,744 | (34,234,744) | ||||||
Issuance of common stock (in shares) | 1,194,324 | |||||||
Issuance of common stock | $ 28,665 | $ 12 | 28,653 | |||||
Stock options exercised (in shares) | 335,612 | |||||||
Stock options exercised | 15,745 | $ 3 | 15,742 | |||||
Repurchase of common stock (in shares) | (3,200,000) | (3,524,401) | ||||||
Repurchase of common stock | (417,641) | $ (372,800) | $ (417,641) | |||||
Net income | 605,706 | 605,706 | 0 | |||||
Other comprehensive income, net of tax | (19,801) | (19,801) | ||||||
Dividends paid | (253,096) | (253,096) | ||||||
Stock-based compensation expense | $ 94,982 | 94,982 | ||||||
End of period (in shares) at Mar. 31, 2024 | 129,643,123 | 167,402,268 | ||||||
End of period at Mar. 31, 2024 | $ 1,046,562 | $ 1,674 | $ (2,277,546) | $ 908,837 | $ 2,404,065 | $ 9,532 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
End of period (in shares) | 37,759,145 | (37,759,145) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Accounting standards update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||
Dividends paid (in dollars per share) | $ 1.92 | $ 1.76 | $ 1.54 |
Business Overview
Business Overview | 12 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview Our Business 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 34,200 employees as of March 31, 2024. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are majority-owned or otherwise controlled by the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and notes of the Company include its subsidiaries and other entities over which the Company has a controlling financial interest or where the Company is a primary beneficiary. 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. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost (measurement alternative). 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 accompanying consolidated financial statements present the financial position of the Company as of March 31, 2024 and 2023 and the Company’s results of operations for fiscal 2024, 2023, and 2022. Certain amounts reported in the Company's prior year consolidated financial statements have been reclassified to conform to the current year presentation. Accounting Estimates The preparation of consolidated 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 consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and expected 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. Revenue Recognition 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 all 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 and generates revenue under three basic types of contracts, as described below: • 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 Company considers a contract with a customer to exist under Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers (“Topic 606”), when there is approval and commitment from both the Company and the customer, the rights of the parties and payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company also will consider whether two or more contracts entered into with the same customer should be combined and accounted for as a single contract. Furthermore, in certain transactions with commercial clients and with the U.S. government, the Company may commence providing services prior to receiving a formal approval from the customer. In these situations, the Company will consider the factors noted above, the risks associated with commencing the work and legal enforceability in determining whether a contract with the customer exists under Topic 606. Customer contracts are often modified to change the scope, price, specifications or other terms within the existing arrangement. Contract modifications are evaluated by management to determine whether the modification should be accounted for as part of the original performance obligation(s) or as a separate contract. If the modification adds distinct goods or services and increases the contract value proportionate to the stand-alone selling price of the additional goods or services, it will be accounted for as a separate contract. Generally, the Company’s contract modifications do not include goods or services which are distinct, and therefore are accounted for as part of the original performance obligation(s) with any impact on transaction price or estimated costs at completion being recorded as through a cumulative catch-up adjustment to revenue. The Company evaluates each service deliverable contracted with the customer to determine whether it represents promises to transfer distinct goods or services. Under Topic 606, these are referred to as performance obligations. One or more service deliverables often represent a single performance obligation. This evaluation requires significant judgment and the impact of combining or separating performance obligations may change the time over which revenue from the contract is recognized. The Company’s contracts generally provide a set of integrated or highly interrelated tasks or services and are therefore accounted for as a single performance obligation. However, in cases where we provide more than one distinct good or service within a customer contract, the contract is separated into individual performance obligations which are accounted for discretely. 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-materials 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 result 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. Unbilled amounts represent revenues for which billings have not yet been presented to customers. 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 consolidated balance sheets. 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 credit losses to provide for an estimate of uncollectible receivables. 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. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances. Contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (the “FAR”) and are priced based on estimated or actual costs of providing the goods or services. The Company derives a majority of its revenue from contracts awarded through a competitive bidding process. Pricing for non-U.S. government agencies and commercial customers is based on discrete negotiations with each customer. Certain of the Company’s contracts contain award fees, incentive fees or other provisions that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. Management estimates variable consideration as the most likely amount that we expect to achieve based on our assessment of the variable fee provisions within the contract, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. The Company may perform work under a contract that has not been fully funded if the work has been authorized by management and the customer to proceed. The Company evaluates unfunded amounts as variable consideration in estimating the transaction price. We include the estimated variable consideration in our transaction price to the extent that it is probable that a significant reversal of revenue will not occur upon the ultimate settlement of the variable fee provision. Our U.S. government contracts generally contain FAR provisions that enable the customer to terminate a contract for default or for the convenience of the U.S. government. The Company recognizes revenue for each performance obligation identified within our customer contracts when, or as, the performance obligation is satisfied by transferring the promised goods or services. Revenue may either be recognized over time or at a point in time. The Company generally recognizes revenue over time as our contracts typically involve a continuous transfer of control to the customer. A continuous transfer of control under contracts with the U.S. government and its agencies is evidenced by clauses which require the Company to be paid for costs incurred plus a reasonable margin in the event that the customer unilaterally terminates the contract for convenience. For contracts where the Company recognizes revenue over time, a contract cost-based input method is generally used to measure progress towards satisfaction of the underlying performance obligation(s). Contract costs include direct costs such as materials, labor and subcontract costs, as well as indirect costs identifiable with, or allocable to, a specific contract that are expensed as incurred. The Company does not incur material incremental costs to acquire or fulfill contracts. Under a contract cost-based input method, revenue is recognized based on the proportion of contract costs incurred to the total estimated costs expected to be incurred upon completion of the underlying performance obligation. The Company generally includes both funded and unfunded portions of customer contracts in this estimation process. For interim financial reporting periods, contract revenue attributable to indirect costs is recognized based upon agreed-upon annual forward-pricing rates established with the U.S. government at the start of each fiscal year. Forward pricing rates are estimated and agreed upon between the Company and the U.S. government and represent indirect contract costs required to execute and administer contract obligations. The impact of any agreed-upon changes, or changes in the estimated annual forward-pricing rates, are recorded in the interim financial reporting period when such changes are identified. These changes relate to the interim financial reporting period differences between the actual indirect costs incurred and allocated to customer contracts compared to the estimated amounts allocated to contracts using the estimated annual forward-pricing rates established with the U.S. government. At the end of each fiscal year, estimated annual forward-pricing rates are adjusted to reported actual rates, with contract revenue attributable to indirect costs adjusted accordingly. These preliminary actual rates and their ultimate impact on contract revenue are subject to final audit and negotiation with the U.S. government, which may take place several years in the future. On certain contracts, principally time-and-materials and cost-reimbursable-plus-fee contracts, revenue is recognized using the right-to-invoice practical expedient as the Company is contractually able to invoice the customer based on the control transferred. However, we did not elect to use the practical expedient which would allow the Company to exclude contracts recognized using the right-to-invoice practical expedient from the remaining performance obligations disclosed below. Additionally, for stand-ready performance obligations to provide services under fixed-price contracts, revenue is recognized over time using a straight-line measure of progress as the control of the services is provided to the customer ratably over the term of the contract. If a contract does not meet the criteria for recognition of revenue over time, we recognize revenue at the point in time when control of the good or service is transferred to the customer. Determining a measure of progress towards the satisfaction of performance obligations requires management to make judgments that may affect the timing of revenue recognition. 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 in the period when such changes are made on a cumulative catch-up basis. 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 fiscal 2024, 2023 and 2022, the aggregate impact of adjustments in contract estimates was not material. 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 exclude negotiated but unexercised options, the unfunded value of expired contracts, and certain variable consideration which the Company does not expect to recognize as revenue. Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash accounts and highly liquid investments that have a maturity of three months or less at the date of purchase. The Company’s cash equivalents consist primarily of government money market funds and money market deposit accounts. The Company maintains its cash and cash equivalents in bank accounts that, at times, exceed the federally insured FDIC limits. The Company has not experienced any losses in such accounts. Valuation of Accounts Receivable The Company maintains allowances for doubtful accounts against certain accounts receivables based upon the latest information regarding whether specific charges are recoverable or invoices are ultimately collectible. Assessing the recoverability of charges and collectability of customer receivables requires management judgment. The Company determines its allowance for doubtful accounts by specifically analyzing individual accounts receivable, historical bad debts, customer credit-worthiness, current economic conditions, accounts receivable aging trends for billed receivables, availability of funding, compliance with contractual terms and conditions, client satisfaction with work performed, and other factors impacting accounts receivables. Valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate recoverability and collectability of accounts receivable becomes available. Upon determination that a receivable is uncollectible, the receivable balance and any associated reserve are written off. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. The Company’s cash equivalents are generally invested in U.S. government money market funds and money market deposit accounts. The Company believes that credit risk for accounts receivable is limited as the receivables are primarily with the U.S. government. Property and Equipment Property and equipment are recorded at cost, and the balances are presented net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Furniture and equipment is depreciated over five Business Combinations The accounting for the Company’s business combinations consists of allocating the purchase price to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. The Company has up to one year from the acquisition date to use information as of each acquisition date to adjust the fair value of the acquired assets and liabilities which may result in material changes to their recorded values with an offsetting adjustment to goodwill. Intangible Assets Intangible assets primarily consist of programs and contracts assets, channel relationships, the Company's trade name, customer relationships, software and other amortizable intangible assets. The Company capitalizes the following costs associated with developing internal-use computer software pertaining to upgrades in our business and financial systems: (i) external direct costs of materials and services consumed in developing or obtaining internal-use computer software and (ii) certain payroll and payroll-related costs for Company employees who are directly associated with the development of internal-use software, to the extent of the time spent directly on the project. Programs and contract assets, channel relationships, and other amortizable intangible assets are generally amortized on an accelerated basis over the expected life based on projected future cash flows of approximately two one Goodwill The Company assesses goodwill for impairment on at least an annual basis on January 1 unless interim indicators of impairment exist. Goodwill is considered to be impaired when the net book value of a reporting unit exceeds its estimated fair value. The Company operates as a single operating segment and as a single reporting unit for the purpose of evaluating goodwill. As of January 1, 2024, the Company performed its annual impairment test of goodwill by comparing the fair value of the Company (based on market capitalization) to the carrying value of the Company's net equity, and concluded that the fair value of the reporting unit was significantly greater than the carrying amount. During the fiscal years ended March 31, 2024, 2023, and 2022, the Company did not record any impairment of goodwill. Long-Lived Assets The Company reviews its long-lived assets, including property and equipment, amortizable intangible assets, and right-of-use (“ROU”) assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for any excess of the carrying amount over the fair value of the asset. During the fiscal years ended March 31, 2024, 2023, and 2022, the Company did not record any material impairment charges. Leases At contract inception, the Company determines whether the contract is, or contains, a lease, which exists when the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. Operating lease balances are included in operating lease ROU assets, operating lease liabilities, and operating lease liabilities, net of current portion in our consolidated balance sheet. Cash payments arising from operating leases are classified within operating activities in the consolidated statement of cash flows. As of March 31, 2024, the Company had no finance leases. The Company's leases are generally for facilities and office space and the Company recognizes ROU assets and lease liabilities at the lease commencement date for those arrangements. The initial lease liability is equal to the present value of the future minimum lease payments over the lease term. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepaid lease payments, less any lease incentives. At the lease commencement date, the Company estimates its collateralized incremental borrowing rate based on publicly available yields adjusted for Company-specific considerations and the Company's varying lease terms in determining the present value of future payments. Certain of the Company’s leases contain options to renew or to terminate the lease which are included in the determination of the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. The Company's leases may also include variable lease payments, such as an escalation clause based on consumer price index rates, maintenance costs, and utilities. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date, whereas variable lease-related payments that do not depend on an index or rate are recorded as lease expense in the period incurred. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. As permitted under Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“Topic 842”), the Company elected the short-term lease policy election not to recognize ROU assets and lease liabilities for leases with an initial term of 12 months or less; lease expense from these leases is recognized on a straight-line basis over the lease term. As further permitted under Topic 842, for all material classes of leased assets, the Company elected to apply the practical expedient to not separate lease components from non-lease components, and instead account for both components as a single lease component. As of March 31, 2024, the Company did not have any lease agreements with residual value guarantees or material restrictions or covenants. Income Taxes The Company provides for income taxes as a “C” corporation on income earned from operations. The Company is subject to federal, state, and foreign taxation in various jurisdictions. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are computed based on the difference between the consolidated financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates and laws for the years in which these items are expected to reverse. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to an appropriate level in that period. In determining the need for a valuation allowance, management considers all positive and negative evidence, including historical earnings, projected future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryback periods, and prudent, feasible tax-planning strategies. The Company periodically assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the Internal Revenue Service (“IRS”) or other taxing authorities. The Company reserves for these uncertain tax positions related to unrecognized income tax benefits where it is not more likely than not that the Company’s tax position will be sustained on examination and settlement with the various taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. As uncertain tax positions in periods open to examination are closed out, or as new information becomes available, the resulting change is reflected in the recorded liability and income tax expense. Penalties and interest recognized related to the reserves for uncertain tax positions are recorded as a component of income tax expense. Comprehensive Income Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and is presented in the consolidated statements of comprehensive income. Accumulated other comprehensive income as of March 31, 2024 and 2023 consisted of net unrealized gains or losses on the Company’s defined and postretirement benefit plans and unrealized gains or losses on interest rate swaps designated as cash flow hedges. Stock-Based Compensation Stock-based compensation to employees is recognized in the consolidated statements of operations based on the grant date fair values with the expense for time vested awards recognized on an accelerated basis over the vesting perio d. The Company estimates forfeitures anticipated to occur during the vesting period for the purposes of recognizing costs associated with stock-based compensation. The expense for performance awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria and is recognized straight line over the vesting pe riod. The Company uses the Black-Scholes option-pricing model to determine the fair value of its option awards at the time of grant. Defined Contribution Plan and Other Post-Retirement Benefits The Company recognizes the underfunded status of defined contribution plans and other post-retirement benefits on the consolidated balance sheets within other long-term liabilities. Gains and losses, and prior service costs and credits that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, and will be amortized as a component of net periodic cost in future periods. The measurement date, the date at which the benefit obligations are measured, is the Company’s fiscal year-end. Self-Funded Medical Plans The Company maintains self-funded medical insurance. Self-funded plans include Consumer Driven Health Plans with a Health Savings Account option and traditional choice plans. Further, self-funded plans also include prescription drug and dental benefits. The Company records an incurred but unreported claim liability in the accrued compensation and benefits line of the consolidated balance sheets for self-funded plans based on an actuarial valuation. The estimate of the incurred but unreported claim liability was provided by a third-party valuation firm, primarily based on claims and participant data for the medical, dental, and pharmacy related costs. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company considers the principal or most advantageous market in which the asset or liability would transact, and if necessary, considers assumptions that market participants would use when pricing the asset or liability. 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. Investments in Variable Interest Entities and Other Investments The Company invests in certain companies that advance or develop new technologies applicable to its business. Each investment is evaluated for consolidation under the variable interest entities model and/or the voting interest model. The results of these investments are not material to the consolidated financial statements for the periods presented. 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. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are Level 3 inputs and are accounted for under the measurement alternative. As of March 31, 2024 and March 31, 2023, respectively, the total of equity and other investments related to unconsolidated entities included in other long term assets of the Company’s consolidated balance sheet were $42.0 million and $23.1 million. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“Topic 805”) , which amends the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms, and their effect on subsequent revenue recognized by the acquirer. Topic 805 is effective for annual periods beginning after December 15, 2022 on a prospective basis. Early adoption is permitted. The Company early adopted the requirements of Topic 805 to apply the amendments prospectively to all business combinations that occurred on or after April 1, 2022. In March 2020, the FASB issued ASU 2020-04, Reference Rate Refo |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue We disaggregate our revenue from contracts with customers by contract type and by customer type, as well as by 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: Fiscal Year Ended March 31, 2024 2023 2022 Cost-reimbursable $ 5,873,045 55% $ 4,908,451 53% $ 4,514,262 54% Time-and-materials 2,530,366 24% 2,296,965 25% 2,017,094 24% Fixed-price 2,258,485 21% 2,053,495 22% 1,832,344 22% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% Revenue by Customer Type: Fiscal Year Ended March 31, 2024 2023 2022 U.S. government (1) : Defense Clients $ 5,055,779 47% $ 4,228,110 45% $ 3,965,590 47% Intelligence Clients 1,774,405 17% 1,686,622 18% 1,573,216 19% Civil Clients 3,658,465 34% 3,112,537 34% 2,608,618 31% Total U.S. government 10,488,649 98% 9,027,269 97% 8,147,424 97% Global Commercial Clients 173,247 2% 231,642 3% 216,276 3% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% (1) Certain contracts were reassigned between the various verticals of our U.S. government business shown in the table above to better align our operations to the customers we serve within each market. Comparative periods revenue by customer type has been recast to reflect the changes. Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Fiscal Year Ended March 31, 2024 2023 2022 Prime Contractor $ 10,143,192 95% $ 8,755,628 95% $ 7,864,273 94% Sub-contractor 518,704 5% 503,283 5% 499,427 6% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% Performance Obligations As of March 31, 2024 and 2023, the Company had $8.7 billion and $7.9 billion of remaining performance obligations, respectively. We expect to recognize approximately 70% of the remaining performance obligations as of March 31, 2024 as revenue over the next 12 months, and approximately 80% over the next 24 months. The remainder is expected to be recognized thereafter. Contract Balances The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s consolidated balance sheets: March 31, 2024 2023 Current assets: Accounts receivable–billed $ 700,066 $ 551,666 Accounts receivable–unbilled (contract assets) 1,347,577 1,223,482 Allowance for credit losses (301) (318) Accounts receivable, net 2,047,342 1,774,830 Other long-term assets: Accounts receivable–unbilled (contract assets) 57,355 59,455 Total accounts receivable, net $ 2,104,697 $ 1,834,285 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 15,527 $ 18,995 For fiscal 2024, 2023 and 2022, we recognized revenue of $17.2 million, $24.4 million and $14.9 million, respectively, related to our contract liabilities on April 1, 2023, 2022 and 2021, respectively. Benefit for credit losses recognized were $(0.3) million, $(2.0) million, and $(1.5) million for fiscal 2024, 2023, and 2022, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes basic and diluted earnings per share amounts based on net income attributable to common stockholders for the periods presented. The Company uses the weighted average number of shares of common stock outstanding during the period to calculate basic earnings per share (“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. Holders of unvested Class A Restricted Common Stock are entitled to participate in non-forfeitable dividends or other distributions (“participating securities”). These unvested restricted shares participated in the Company's dividends declared and paid in each quarter of fiscal 2024, 2023, and 2022. 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 these unvested restricted shares. A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows: Fiscal Year Ended 2024 2023 2022 Numerator: (1) Earnings for basic computations $ 600,740 $ 269,656 $ 463,626 Earnings for diluted computations $ 600,750 $ 269,657 $ 463,635 Denominator: Weighted-average common stock shares outstanding, basic 130,366,501 132,161,646 134,134,034 Dilutive stock options and restricted stock 449,402 554,790 716,774 Weighted-average common stock shares outstanding, diluted (2) 130,815,903 132,716,436 134,850,808 Earnings per share of common share: Basic $ 4.61 $ 2.04 $ 3.46 Diluted (2) $ 4.59 $ 2.03 $ 3.44 (1) The difference between earnings for basic and diluted computations and net income presented on the consolidated statements of operations is due to undistributed earnings and dividends allocated to the participating securities. During fiscal 2024, 2023, and 2022, respectively, approximately 1.1 million, 1.1 million, and 0.9 million shares of participating securities were paid dividends totaling $2.1 million, $1.8 million, and $1.4 million, respectively. There were undistributed earnings of $2.9 million, $0.3 million, and $1.7 million allocated to the participating class of securities in both basic and diluted earnings per share of common stock for fiscal 2024, 2023, and 2022, respectively. (2) The impact of anti-dilutive options excluded from the calculation of diluted EPS was not material during the periods presented. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisition and Divestitures Acquisition On October 14, 2022, the Company completed the acquisition of EverWatch Corp. (“EverWatch”), a leading provider of advanced solutions to the defense and intelligence communities for approximately $445.1 million, net of post-closing adjustments and also incurred transaction costs as part of the acquisition. The acquisition was funded with cash on hand. As a result of the transaction, EverWatch became a wholly owned subsidiary of Booz Allen Hamilton Inc. The Company recognized $108.6 million of intangible assets which consists primarily of contract assets and were valued using the excess earnings method discounted cash flow approach, incorporating Level 3 inputs as described under the fair value hierarchy of Topic 820. These unobservable inputs reflect the Company's own judgment about which assumptions market participants would use in pricing an asset on a non-recurring basis. The intangible assets will be amortized over the estimated useful life of fourteen years. The goodwill of $330.9 million is primarily attributable to EverWatch's specialized workforce and the expected synergies between the Company and EverWatch, and is non-deductible for tax purposes. The following table summarizes the consideration and the allocation of the purchase price paid for EverWatch: Cash consideration (gross of cash acquired) $ 445,074 Purchase price allocation: Cash 4,779 Current assets 27,725 Operating lease right-of-use asset 7,894 Other long-term assets 5,078 Intangible assets 108,600 Deferred tax liabilities (20,394) Current liabilities (11,612) Operating lease liabilities - short-term (1,362) Operating lease liabilities - long-term (6,532) Total fair value of identifiable net assets acquired $ 114,176 Goodwill $ 330,898 The acquisition was accounted for under the acquisition method of accounting, which requires the total acquisition consideration to be allocated to the assets acquired and liabilities assumed based on an estimate of the acquisition date fair value, with the difference reflected in goodwill. During the first quarter of fiscal 2024, the Company completed the determination of fair values of the acquired assets and liabilities assumed. See note 6, “Goodwill and Intangible Assets,” for additional information. Pro forma results of operations for this acquisition are not presented because the acquisition is not material to the Company's consolidated results of operations. Divestitures Middle East and North Africa Management Consulting Business On September 1, 2022, the Company completed the divestiture of its management consulting business serving the Middle East and North Africa (“MENA”) region to Oliver Wyman, a global management consulting firm and a business of Marsh McLennan. The divestiture was substantially comprised of the contracts associated with the MENA business, the assets and liabilities associated with those contracts, and the workforce that provides services under those contracts. As a result of this transaction, the Company de-recognized the assets and liabilities associated with the MENA business and recognized a pre-tax gain of $31.2 million in the second quarter of fiscal 2023, which is reflected in other income, net, on the consolidated statement of operations. Managed Threat Services Business On December 5, 2022, the Company completed the divestiture of its commercial Managed Threat Services (“MTS”) business to Security On-Demand. The divestiture was substantially comprised of the contracts associated with the MTS business, the assets and liabilities associated with those contracts, and the workforce that provides services under those contracts. As a result of this transaction, the Company de-recognized the assets and liabilities associated with the MTS business and recognized a pre-tax gain of $4.6 million during the third quarter of fiscal 2023, which is reflected in other income, net, on the consolidated statement of operations. Business Deconsolidation |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill was $2,343.8 million and $2,338.4 million as of March 31, 2024 and March 31, 2023, respectively. The $5.4 million increase in the carrying amount of goodwill was attributable to the Company's finalization of the accounting for the acquisition of EverWatch. The Company performed an annual impairment test of the goodwill as of January 1, 2024 and 2023, and did not identify any impairment. Intangible Assets Intangible assets consisted of the following: March 31, 2024 March 31, 2023 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Programs and contract assets, channel relationships, and other amortizable intangible assets $ 591,895 $ 237,764 $ 354,131 $ 599,794 $ 169,316 $ 430,478 Software 146,284 89,572 56,712 134,152 69,215 64,937 Total amortizable intangible assets $ 738,179 $ 327,336 $ 410,843 $ 733,946 $ 238,531 $ 495,415 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 928,379 $ 327,336 $ 601,043 $ 924,146 $ 238,531 $ 685,615 The decrease in the gross carrying value of amortizable intangible assets (excluding software) was primarily attributable to a $7.9 million adjustment related to the Company's finalization of the accounting for the acquisition of EverWatch in the first quarter of fiscal 2024. Programs and contract assets, channel relationships, and other amortizable intangible assets are generally amortized on an accelerated basis over periods ranging from two one The Company performed an annual impairment test of the trade name as of January 1, 2024 and 2023, and did not identify any impairment. Amortization expense for fiscal 2024, 2023, and 2022 was $93.3 million, $94.3 million, and $76.2 million, respectively. The following table summarizes the estimated annual amortization expense for future periods, which does not reflect amortization expense for certain intangible assets that are not yet placed in service: For the Fiscal Year Ended March 31, 2025 $ 82,085 2026 70,883 2027 58,885 2028 50,833 2029 43,315 Thereafter 104,842 Total estimated amortization expense $ 410,843 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The components of property and equipment, net were as follows: March 31, 2024 2023 Furniture and equipment $ 121,544 $ 119,316 Computer equipment 107,902 111,538 Leasehold improvements 269,964 258,258 Total 499,410 489,112 Less: Accumulated depreciation and amortization (311,131) (293,926) Property and equipment, net $ 188,279 $ 195,186 Depreciation and amortization expense relating to property and equipment for fiscal 2024, 2023, and 2022 was $70.9 million, $71.2 million, and $69.5 million, respectively. During fiscal 2024 and 2023, the Company reduced the gross cost and accumulated depreciation and amortization by $36.3 million |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Expenses | 12 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 2023 Vendor payables $ 653,131 $ 597,808 Accrued expenses 397,539 718,832 Total accounts payable and other accrued expenses $ 1,050,670 $ 1,316,640 Accrued expenses consisted primarily of the Company’s provision for claimed indirect costs, (approximately $363.7 million and $326.7 million as of March 31, 2024 and 2023, respectively). Accrued expenses at March 31, 2023 also included a $350.0 million reserve associated with the settlement of the U.S. Department of Justice's investigation of the Company which was subsequently settled and paid in the second quarter of fiscal 2024. Refer to Note 20, “Commitments and Contingencies,” to the consolidated financial statements for further discussion of these items. |
Accrued Compensation and Benefi
Accrued Compensation and Benefits | 12 Months Ended |
Mar. 31, 2024 | |
Compensation Related Costs [Abstract] | |
Accrued Compensation and Benefits | Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following: March 31, 2024 2023 Bonus $ 151,063 $ 120,023 Retirement 57,465 52,480 Vacation 223,385 203,627 Other 74,217 69,075 Total accrued compensation and benefits $ 506,130 $ 445,205 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following on the dates below: March 31, 2024 March 31, 2023 Interest Outstanding Interest Outstanding Term Loan A 6.677 % $ 1,588,125 5.970 % $ 1,629,375 Senior Notes due 2028 3.875 % 700,000 3.875 % 700,000 Senior Notes due 2029 4.000 % 500,000 4.000 % 500,000 Senior Notes due 2033 5.950 % 650,000 — % — Less: Unamortized debt issuance costs and discount on debt (26,309) (17,230) Total 3,411,816 2,812,145 Less: Current portion of long-term debt (61,875) (41,250) Long-term debt, net of current portion $ 3,349,941 $ 2,770,895 Credit Agreement Booz Allen Hamilton Inc. (“Booz Allen Hamilton”), Booz Allen Hamilton Investor Corporation (“Investor”), and certain wholly owned subsidiaries of Booz Allen Hamilton are parties to a Credit Agreement dated as of July 31, 2012, as amended (the “Credit Agreement”), with certain institutional lenders and Bank of America, N.A., as Administrative Agent, Collateral Agent and Issuing Lender. As of March 31, 2024, the Credit Agreement provided Booz Allen Hamilton with a $1,588.1 million Term Loan A (“Term Loan A”) and a $1.0 billion revolving credit facility (the “Revolving Credit Facility”), with a sub-limit for letters of credit of $200.0 million. As of March 31, 2024, the maturity date of the Term Loan A and the Revolving Commitments is September 7, 2027. Voluntary prepayments of the Term Loan A and the Revolving Loans are permitted at any time, in minimum principal amounts, without premium or penalty. Booz Allen Hamilton’s obligations and the guarantors’ guarantees under the Credit Agreement were 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; such security was released in connection with Booz Allen Hamilton obtaining investment grade ratings from both Moody's and S&P. On September 7, 2022 (the “Ninth Amendment Effective Date”), the previously outstanding Term Loan B loans under the Credit Agreement were prepaid in full. On July 27, 2023 (the “Tenth Amendment Effective Date”), Booz Allen Hamilton entered into a Tenth Amendment (the “Amendment”) to the Credit Agreement (as amended prior to the Tenth Amendment Effective Date, the “Existing Credit Agreement” and, as amended by the Amendment, the “Amended Credit Agreement”) with Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”), and the lenders and other financial institutions party thereto, in order to make permanent certain changes to the Existing Credit Agreement in connection with Booz Allen Hamilton obtaining investment grade ratings from both Moody's and S&P and prepaying the Term Loan B loans in full and to make certain additional changes in connection therewith, including, among other things, (i) removing the requirements for the obligations under the Amended Credit Agreement to be secured, (ii) removing the requirement for any subsidiary or other affiliate of Booz Allen Hamilton (other than the Company) to provide any guarantee of the obligations under the Amended Credit Agreement, and (iii) removing or modifying certain covenants applicable to Booz Allen Hamilton. Pursuant to the Amendment, all guarantees in respect of the Existing Credit Agreement have been released. The Amendment did not impact any of the terms of the Credit Agreement related to amortization or payments. On the Tenth Amendment Effective Date in connection with the Amendment, the Company entered into a Guarantee Agreement (the “Guarantee Agreement”) in favor of the Administrative Agent, pursuant to which the Company guarantees on an unsecured basis the obligations of Booz Allen Hamilton under the Amended Credit Agreement subject to certain conditions. Pursuant to the Amended Credit Agreement Booz Allen Hamilton has the option, though not any obligation, to join one or more of its domestic subsidiaries as a guarantor under the Guarantee Agreement. Term Loan A amortizes in consecutive quarterly installments in an amount equal to (i) on the last business day of each full fiscal quarter that begins after the Ninth Amendment Effective Date but on or before the two year anniversary of the Ninth Amendment Effective Date, 0.625% of the stated principal amount of Term Loan A and (ii) on the last business day of each full fiscal quarter that begins after the two year anniversary of the Ninth Amendment Effective Date but before the five year anniversary of the Ninth Amendment Effective Date, 1.25% of the stated principal amount of Term Loan A. The remaining balance of Term Loan A will be payable upon maturity. The rate at which Term Loan A and the Revolving Loans bear interest will be based either on Term SOFR (subject to a 0.10% adjustment and a floor of zero) for the applicable interest period or a base rate (equal to the highest of (i) the administrative agent’s prime corporate rate, (ii) the overnight federal funds rate plus 0.50% and (iii) three-month Term SOFR (subject to a 0.10% adjustment and 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 the Revolving Loans ranges from 1.00% to 2.00% for Term SOFR loans and zero to 1.00% for base rate loans, in each case based on the lower of (i) the applicable rate per annum determined pursuant to a consolidated total net leverage ratio grid and (ii) the applicable rate per annum determined pursuant to a ratings grid. Unused New Revolving Commitments are subject to a quarterly fee ranging from 0.10% to 0.35% based on the lower of (i) the applicable fee rate per annum determined pursuant to a consolidated total net leverage ratio grid and (ii) the applicable fee rate per annum determined pursuant to a ratings grid. Booz Allen Hamilton has also agreed to pay customary letter of credit and agency fees. The Company occasionally borrows under the Revolving Credit Facility for our working capital needs. During fiscal 2024, the Company borrowed $500.0 million on its Revolving Credit Facility for working capital needs, which was subsequently repaid as of March 31, 2024. As of March 31, 2024 and March 31, 2023, respectively, there was no outstanding balance on the Revolving Credit Facility. Borrowings under Term Loan A, and if used, the Revolving Credit Facility, incur interest at a variable rate. As of March 31, 2024, Booz Allen Hamilton had interest rate swaps with an aggregate notional amount of $550.0 million. These instruments hedge the variability of cash outflows for interest payments on Term Loan A and the Revolving Credit Facility. 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 11, “Derivatives,” to the consolidated financial statements). The following table summarizes interest payments made on the Company ’ s term loans: Three Months Ended Fiscal Year Ended 2024 2023 2024 2023 Term Loan A 27,027 24,233 107,286 63,244 Term Loan B — — — 5,209 Total $ 27,027 $ 24,233 $ 107,286 $ 68,453 The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. In connection with Booz Allen Hamilton obtaining investment grade ratings from both Moody's and S&P, certain activities previously restricted by certain negative covenants are permitted subject to pro forma compliance with the financial covenants and no events of default having occurred or are continuing. 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 March 31, 2024 and March 31, 2023, Booz Allen Hamilton was in compliance with all financial covenants associated with its debt and debt-like instruments. Senior Notes On August 4, 2023, Booz Allen Hamilton issued $650.0 million aggregate principal amount of its 5.950% Senior Notes due August 4, 2033 (the “Senior Notes due 2033”) under an Indenture and First Supplemental Indenture, both dated as of August 4, 2023 (the “Indenture”), among Booz Allen Hamilton, Booz Allen Hamilton Holding Corporation, as parent guarantor, and U.S. Bank Trust Company, National Association, as trustee. The Senior Notes due 2033 are unsecured senior indebtedness of Booz Allen Hamilton and are fully and unconditionally guaranteed on an unsecured and unsubordinated basis by Booz Allen Hamilton Holding Corporation, and rank equally and ratably in right of payment with all of Booz Allen Hamilton’s and Booz Allen Hamilton Holding Corporation’s other unsecured and unsubordinated indebtedness outstanding from time to time, pursuant to the Indenture. On June 17, 2021, Booz Allen Hamilton issued $500.0 million aggregate principal amount of its 4.000% Senior Notes due July 1, 2029 (the “Senior Notes due 2029”) under an Indenture and First Supplemental Indenture, both dated as of June 17, 2021, among Booz Allen Hamilton, certain subsidiaries of Booz Allen Hamilton, as guarantors (the “2029 Subsidiary Guarantors”), and Wilmington Trust, National Association, as trustee. The Senior Notes due 2029 are Booz Allen Hamilton’s senior unsecured obligations and rank equally in right of payment with all of Booz Allen Hamilton’s and the 2029 Subsidiary Guarantors’ existing and future senior indebtedness and rank senior in right of payment to any of Booz Allen Hamilton’s future subordinated indebtedness. The net proceeds from the sale of the Senior Notes due 2029 were used to fund the acquisition of Liberty and to pay related fees and expenses. On August 24, 2020, Booz Allen Hamilton issued $700.0 million aggregate principal amount of its 3.875% Senior Notes due September 1, 2028 (the “Senior Notes due 2028”, and, together with the Senior Notes due 2029 and Senior Notes due 2033, the “Senior Notes”) under an Indenture and First Supplemental Indenture, both dated as of August 24, 2020, among Booz Allen Hamilton, certain subsidiaries of Booz Allen Hamilton, as guarantors (the “2028 Subsidiary Guarantors”), and Wilmington Trust, National Association, as trustee. The Senior Notes due 2028 are Booz Allen Hamilton’s senior unsecured obligations and rank equally in right of payment with all of Booz Allen Hamilton’s and the 2028 Subsidiary Guarantors’ existing and future senior indebtedness and rank senior in right of payment to any of Booz Allen Hamilton’s future subordinated indebtedness. The following table summarizes the material terms of the Company’s Senior Notes as of March 31, 2024: Indenture Date Principal Interest Rate Maturity Date Interest Payable Issuance Costs Senior Notes due 2033 8/4/2023 $650.0 million 5.950% 8/4/2033 February and August 4 $12.4 million Senior Notes due 2029 6/17/2021 $500.0 million 4.000% 7/1/2029 July and January 1 $6.5 million Senior Notes due 2028 8/24/2020 $700.0 million 3.875% 9/1/2028 March and September 1 $9.2 million Interest is payable semi-annually in cash in arrears, with the principal due at maturity. Issuance Costs were recorded as an offset against the carrying value of respective debt and are being amortized to interest expense over the term of the respective debt. All the Senior Notes’ Indentures contain certain covenants, events of default, and other customary provisions. In connection with the Senior Notes obtaining investment grade ratings from Moody’s and S&P, in January 2023, certain negative covenants in the indentures governing the Senior Notes 2028 and Senior Notes 2029 were suspended, and the related guarantees were released. Senior Notes Redemption Options Booz Allen Hamilton may redeem some or all of the Senior Notes due 2033 prior to May 4, 2033 at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the Senior Notes 2033 matured on May 4, 2033) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the Supplemental Indenture) plus 35 basis points less (b) interest accrued to, but excluding, the redemption date, and (2) 100.00% of the principal amount of the Senior Notes 2033 to be redeemed, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the redemption date. On or after May 4, 2033, Booz Allen Hamilton may redeem the Senior Notes 2033, in whole or in part, at any time and from time to time, at a redemption price equal to 100.00% of the principal amount of the Senior Notes 2033 being redeemed plus accrued and unpaid interest on the principal amount being redeemed, but excluding, to the redemption date. Booz Allen Hamilton may redeem some or all of the Senior Notes due 2029 at any time prior to July 1, 2024, at a price equal to 100.00% of the principal amount of the Senior Notes due 2029 redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date, plus an applicable “make-whole premium.” Booz Allen Hamilton may redeem the Senior Notes due 2029 at its option, in whole at any time or in part from time to time, upon certain required notice, (i) on and after July 1, 2024, at a price equal to 102.00% of the principal amount of the Senior Notes due 2029 redeemed, (ii) on or after July 1, 2025, at a price equal to 101.00% of the principal amount of the Senior Notes due 2029 redeemed, and (iii) on July 1, 2026 and thereafter, at a price equal to 100.00% of the principal amount of the Senior Notes due 2029 redeemed, in each case, plus accrued and unpaid interest, if any, to (but not including) the applicable redemption date. In addition, at any time on or prior to July 1, 2024, Booz Allen Hamilton may redeem up to 40.00% of the original aggregate principal amount of the Senior Notes due 2029 with an amount equal to the net cash proceeds of certain equity offerings at a redemption price equal to 104.00% of the principal amount of the Senior Notes due 2029, plus accrued and unpaid interest, if any, to (but not including) the redemption date, provided that at least 50.00% of the original aggregate principal amount of the Senior Notes due 2029 remains outstanding after each such redemption; and provided, further, that such redemption occurs within 180 days after the date on which any such equity offering is consummated. Booz Allen Hamilton has the ability to redeem the Senior Notes due 2028 at its option, in whole at any time or in part from time to time, upon certain required notice, (i) on and after September 1, 2023, at a price equal to 101.938% of the principal amount of the Senior Notes due 2028 redeemed, (ii) on or after September 1, 2024, at a price equal to 100.969% of the principal amount of the Senior Notes due 2028 redeemed, and (iii) on September 1, 2025 and thereafter, at a price equal to 100.00% of the principal amount of the Senior Notes due 2028 redeemed, in each case, plus accrued and unpaid interest, if any, to (but not including) the applicable redemption date. Scheduled Maturities and Interest Expense The following table summarizes required future debt repayments: Payments Due By March 31, Total 2025 2026 2027 2028 2029 Thereafter Term Loan A $ 1,588,125 $ 61,875 $ 82,500 $ 82,500 $ 1,361,250 $ — $ — Senior Notes due 2028 700,000 — — — — 700,000 — Senior Notes due 2029 500,000 — — — — — 500,000 Senior Notes due 2033 650,000 — — — — — 650,000 Interest on indebtedness 942,804 192,101 187,040 181,454 125,934 72,237 184,038 Total $ 4,380,929 $ 253,976 $ 269,540 $ 263,954 $ 1,487,184 $ 772,237 $ 1,334,038 Interest expense on debt and debt-like instruments consisted of the following: Fiscal Year Ended March 31, 2024 2023 2022 Term Loan A $ 107,891 $ 63,463 $ 19,570 Term Loan B — 5,186 7,207 Revolving Credit Facility 1,438 — 25 Senior Notes 72,693 47,125 42,902 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 4,920 4,350 4,619 Interest Rate Swaps (14,932) (1,237) 17,535 Other 891 963 494 Total Interest Expense $ 172,901 $ 119,850 $ 92,352 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company's Revolving Credit Facility is recorded as a long-term asset on the consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives
Derivatives | 12 Months Ended |
Mar. 31, 2024 | |
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 following table summarizes the material terms of the Company’s outstanding interest rate swap derivative contracts as of March 31, 2024: Effective Date Maturity Date Terms Notional Amount April 28, 2023 (1) June 30, 2024 Variable to Fixed $ 200,000 April 28, 2023 (1) June 30, 2025 Variable to Fixed 200,000 June 30, 2023 June 30, 2026 Variable to Fixed 150,000 Total $ 550,000 (1) Swap agreement was originally effective on April 30, 2019 and were amended during the first quarter of fiscal 2024 to transition from LIBOR-indexed to Term SOFR-indexed periodic swap payments to align with interest payments in connection with its Term SOFR-indexed debt. See Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements for further information on the transition. 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 converting a portion of the variable rate debt into fixed interest rate debt. Derivative instruments are recorded in the consolidated balance sheet on a gross basis at estimated fair value. As of March 31, 2024, $8.7 million and $1.6 million were classified as other current assets and other long-term assets, respectively, on the consolidated balance sheet. As of March 31, 2023, $11.2 million, $3.5 million and $1.4 million were classified as other current assets, other long term assets and other long-term liabilities, respectively, on the consolidated balance sheet. See Note 18, “Fair Value Measurements,” to the consolidated financial statements for additional information on the fair values and location of our derivative instruments on the 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 Income (“AOCI”), net of taxes, and is subsequently reclassified into interest expense, net in the period that the hedged forecasted interest payments are made on the Company's variable-rate debt. See Note 15, “Accumulated Other Comprehensive Income,” and Note 10, “Debt,” to the consolidated financial statements for additional information on reclassifications from AOCI and interest payments related to the derivatives. The effect of derivative instruments on the accompanying consolidated financial statements is as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Income (1) Fiscal year ended March 31, Fiscal year ended March 31, 2024 2023 2022 2024 2023 2022 Interest rate swaps Interest expense $ 11,794 $ 14,919 $ 20,352 $ 14,932 $ 1,237 $ (17,535) (1) The reclassifications from accumulated other comprehensive gain (loss) to net income was reduced by taxes of $4.0 million, $0.3 million and $4.6 million, respectively, for fiscal 2024, 2023 and 2022. Over the next 12 months, the Company estimates that $8.7 million will be reclassified as a decrease to interest expense. Cash flows associated with periodic settlements of interest rate swaps will be classified as operating activities in the 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 | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company's leases are generally for facilities and office space. The Company’s total lease cost is recorded primarily within general and administrative expenses on the consolidated statement of operations and consisted of the following: Fiscal Year Ended 2024 2023 2022 Operating lease cost $ 63,575 $ 68,620 $ 69,831 Short-term lease cost 1,211 455 585 Variable lease cost 12,911 11,237 11,641 Total operating lease costs $ 77,697 $ 80,312 $ 82,057 Future minimum operating lease payments for noncancelable operating leases as of March 31, 2024 are as follows: For the Fiscal Year Ending March 31, Operating Lease Payments 2025 $ 54,337 2026 61,710 2027 49,558 2028 41,357 2029 18,929 Thereafter 29,948 Total future lease payments 255,839 Less: imputed interest (30,518) Total lease liabilities $ 225,321 Supplemental cash flow information related to leases was as follows: Fiscal Year Ended 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 75,633 $ 66,529 $ 76,100 Operating lease liabilities arising from obtaining ROU assets (1) $ 40,151 $ 16,517 $ 41,206 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: March 31, 2024 2023 Weighted average remaining lease term (in years) 4.5 4.6 Weighted average discount rate 4.9 % 4.7 % |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Current U.S. Federal $ 229,234 $ 354,569 $ 232,844 State and local 116,751 86,947 26,333 Foreign 2,635 9,120 8,486 Total current 348,620 450,636 267,663 Deferred U.S. Federal (94,321) (300,494) (146,581) State and local (5,990) (50,318) 11,781 Foreign (695) (3,090) 4,603 Total deferred (101,006) (353,902) (130,197) Total $ 247,614 $ 96,734 $ 137,466 A reconciliation of the provision for income tax to the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for each of the three years ended March 31 is as follows: Fiscal Year Ended March 31, 2024 2023 2022 Income tax expense computed at U.S. federal statutory rate $ 179,197 $ 77,269 $ 126,981 Increases (reductions) resulting from: State and local income taxes, net of federal tax 85,486 32,599 28,762 Foreign income taxes, net of federal tax (7,932) 4,765 9,243 Non-deductible expenses, including non-deductible penalties 4,867 34,825 859 Excess tax benefits from stock-based compensation (10,091) (5,247) (4,227) Research and development and other federal credits (31,289) (33,159) (34,080) Executive compensation -162(m) 6,307 4,295 3,614 Foreign-Derived Intangible Income (FDII) (13,971) (15,869) (9,115) Changes in uncertain tax positions (including indirect effects) 37,592 (6,498) 16,938 Other (2,552) 3,754 (1,509) Income tax expense from operations $ 247,614 $ 96,734 $ 137,466 Tax Receivables and Payables The Company has both income tax receivables and income tax payable on its consolidated balance sheet as follows: March 31, 2024 2023 Current income tax receivable $ 47,158 $ 23,633 Long term income tax receivable $ 152,474 $ 167,821 Current income tax payable $ 11,331 $ 14,523 Current income tax receivable represents previously made estimated payments that will be applied to the Company’s future U.S. federal and state tax returns. This amount is classified as prepaid expenses and other current assets on the consolidated balance sheet. Current income tax payable represents current liabilities associated with the Company’s current tax returns that the Company intends to file in fiscal 2025. This amount is classified as other current liabilities on the consolidated balance sheet. The long-term income tax receivable represents the amended U.S. federal return refund claims for research and development tax credits and the carryback claim for the fiscal 2021 net operating loss which is classified as other long-term assets on the consolidated balance sheet. The Company is currently under federal audit by the IRS for fiscal years 2016, 2017 and 2019-2021 and the receipt of our U.S federal return refund claims is contingent upon the completion of the ongoing IRS audits. Deferred Taxes The significant components of the Company’s deferred income tax assets and liabilities were as follows: March 31, 2024 2023 Deferred income tax assets: Accrued expenses $ 102,618 $ 146,945 Deferred compensation 54,314 47,931 Stock-based compensation 11,107 11,628 Pension and postretirement benefits 34,895 28,585 Net operating loss and other carryforwards 9,621 16,984 Research and development expenditures and indirect effects 248,147 599,381 State tax credits 108 11,516 Operating lease liabilities 63,781 69,604 Other 10,261 9,100 Total gross deferred income tax assets 534,852 941,674 Less: Valuation allowance (8,078) (11,788) Total net deferred income tax assets 526,774 929,886 Deferred income tax liabilities: Unbilled receivables (131,919) (177,321) Intangible assets (93,207) (88,858) Property and equipment (25,725) (34,905) Operating lease right-of-use assets (45,022) (48,939) Other (3,730) (6,083) Total deferred income tax liabilities (299,603) (356,106) Net deferred income tax asset $ 227,171 $ 573,780 Deferred tax balances arise from temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized. In determining if the Company's deferred tax assets are realizable, management considers all positive and negative evidence, including the history of generating financial reporting earnings, future reversals of existing taxable temporary differences, projected future taxable income, as well as any tax planning strategies. As of March 31, 2024 and 2023, the Company had available federal, state, and foreign net operating loss (“NOL carryforwards”) of $9.2 million and $13.7 million, respectively, that may be applied against future taxable income. The federal net operating loss of $1.2 million is primarily attributable to an acquisition and will begin to expire in fiscal 2037. The state net operating loss of $3.1 million is primarily attributable to losses in jurisdictions in which the Company does not file a consolidated return. The foreign net operating loss of $4.9 million is primarily attributable to operations in jurisdictions where the Company has not historically been profitable. The Company recorded a partial val uation allowance against those federal, state and foreign net operating losses it believes will expire prior to utilization. Uncertain Tax Positions The Company maintains reserves for uncertain tax positions related to unrecognized income tax benefits. These reserves involve considerable judgment a nd estimation and are evaluated by management based on the best information available including changes in tax laws and other information. As of March 31, 2024, 2023, and 2022, the Company has recorded $115.4 million, $552.3 million, and $79.9 million, respectively, of reserves for uncertain tax positions which include potential tax benefits of $104.2 million, $91.1 million, and $78.5 million, respectively, that, when recognized, impact the effective tax rate. As of March 31, 2024 and 2023, $1.4 million and $3.0 million, respectively, of the reserve is reflected as a reduction to deferred taxes and the remaining balance is recorded as a component of other long-term liabilities in the consolidated balance sheet. A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows: March 31, 2024 2023 2022 Beginning of year $ 547,885 $ 78,519 $ 62,742 Increases in prior year position 40,704 — 2,620 Increases in current year position 13,352 470,881 13,530 Decreases in prior year position (473,848) (1,328) (373) Settlements with taxing authorities (23,696) — — Lapse of statute of limitations (234) (187) — End of year $ 104,163 $ 547,885 $ 78,519 The Company recognized accrued interest and penalties of $7.4 million, $2.9 million and $1.7 million for fiscal 2024, 2023, and 2022, respectively, related to the reserves for uncertain tax positions in the income tax provision. Included in the total reserve for uncertain tax positions are accrued penalties and interest of approximately $13.2 million, $5.8 million and $2.9 million at March 31, 2024, 2023, and 2022, respectively. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of March 31, 2024, the Company's tax years ended March 31, 2016 and forward are open and subject to examination by the federal tax authorities. The other jurisdictions currently open or under examination are not considered to be material. During fiscal 2023, the Company recognized an increase in reserves for uncertain tax positions related to an increase in research and development tax credits available, as in prior years, and the required capitalization of research and development expenditures, which became effective in fiscal 2023. The uncertain tax positions related to the capitalization of research and development expenditures were offset by a deferred tax asset. During fiscal 2024, the Company completed a detailed study of its research and development expenditures and confirmed management's position that only certain contracts and activities are required to be capitalized and amortized under the rules enacted as part of the Tax Cuts and Jobs Act of 2017, specifically Section 174. This was further supported by guidance issued by the Internal Revenue Service in September and December 2023. As a result, the Company reversed its uncertain tax position reserve related to Section 174 with a corresponding decrease to deferred tax assets. Dur ing fiscal 2024, the Company also recognized an increase in reserves for uncertain tax position reserve related to research and development tax credits, as in prior years. In the fourth quarter of fiscal 2024, the Company received an unfavorable ruling from the District of Columbia Court of Appeals related to contested tax assessments from the District of Columbia Office of Tax and Revenue (“DC OTR”) for fiscal years 2013 through 2015. As previously disclosed, no reserves had previously been accrued related to this matter and as such, $42.7 million of income tax expense has been recorded in the fiscal 2024 consolidated statement of operations, which reflects the tax liability including interest and penalties, net of federal benefit. This expense is related to the years at issue in the litigation, which were previously paid under protest, and the subsequent periods in which the position had been taken. The Company has filed amended tax returns related to these subsequent periods and paid $13.2 million of incremental cash taxes in the fourth quarter of fiscal 2024. The remaining $10.5 million of settlements with taxing authorities was previously paid. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plan The Company sponsors the Employees’ Capital Accumulation Plan (the “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 for fiscal 2024, 2023, and 2022 was $218.4 million, $190.5 million, and $176.8 million, respectively, and the Company-paid contributions were $213.3 million, $185.7 million, and $171.6 million, respectively. Post Retirement Benefits 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 recognizes a liability for the defined benefit plans' underfunded status, measures the defined benefit plans' obligations that determine its funded status as of the end of the fiscal year, and recognizes as a component of accumulated other comprehensive income the changes in the defined benefit plans' funded status that are not recognized as components of net periodic benefit cost. See Note 15, “Accumulated Other Comprehensive Income,” to our consolidated financial statements. The components of net postretirement medical expense for the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Service cost $ 5,100 $ 6,117 $ 6,505 Interest cost 5,067 4,182 4,063 Total postretirement medical expense $ 10,167 $ 10,299 $ 10,568 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) are included as part of other income (expense), net in the accompanying consolidated statements of operations. The weighted-average discount rate used to determine the year-end benefit obligation for the Officer Medical Plan were 5.20%, 4.90% and 3.75% for fiscal 2024, 2023, and 2022, respectively. Assumed healthcare cost trend rates for the Officer Medical Plan at March 31 were as follows: Pre-65 initial rate 2024 2023 Healthcare cost trend rate assumed for next year 7.25 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2032 Post-65 initial rate 2024 2023 Healthcare cost trend rate assumed for next year 7.50 % 6.80 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2032 The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Benefit obligation, beginning of the year $ 105,585 $ 113,505 $ 121,518 Service cost 5,100 6,117 6,505 Interest cost 5,067 4,182 4,063 Net actuarial loss (gain) 17,163 (14,288) (13,563) Benefits paid (5,927) (3,931) (5,018) Benefit obligation, end of the year $ 126,988 $ 105,585 $ 113,505 The net actuarial loss related to the benefit obligation in fiscal 2024 was primarily due to unfavorable updates in estimated medical claims, medical inflation, and demographic assumptions, partially offset by increases in discount rates. The net actuarial gain related to the benefit obligation in fiscal 2023 was primarily due to a favorable change from using an amounts-weighted to a headcount-weighted mortality table and increases in discount rates, partially offset by updates to estimated medical costs and the outlook of higher future medical inflation. The net actuarial gain related to the benefit obligation in fiscal 2022 was primarily due to favorable changes in estimated medical costs and increases in discount rates, partially offset by updates to demographic assumptions and outlook of higher future medical inflation. Fiscal Year Ended March 31, Changes in plan assets 2024 2023 2022 Fair value of plan assets, beginning of the year $ — $ — $ — Employer contributions 5,927 3,931 5,018 Benefits paid (5,927) (3,931) (5,018) Fair value of plan assets, end of the year $ — $ — $ — As of March 31, 2024 and 2023, the unfunded status of the Officer Medical Plan was $127.0 million and $105.6 million, respectively, which is included in other long-term liabilities in the accompanying consolidated balance sheets. The expected future medical benefit payments and related contributions are as follows: For the Fiscal Year Ending March 31, 2025 $ 5,142 2026 5,677 2027 6,117 2028 6,658 2029 7,173 2030 - 2034 42,398 Total $ 73,165 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income 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 presents the changes in accumulated other comprehensive income, net of tax: Fiscal Year Ended March 31, 2024 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ 19,450 $ 9,883 $ 29,333 Other comprehensive (loss) income before reclassifications (1) (15,989) 8,643 (7,346) Amounts reclassified from accumulated other comprehensive income (1,485) (10,970) (12,455) Net current-period other comprehensive income (17,474) (2,327) (19,801) End of year $ 1,976 $ 7,556 $ 9,532 (1) Changes in other comprehensive income before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit (expense) of $5.5 million and $(3.2) million, respectively, for the fiscal year ended March 31, 2024. Fiscal Year Ended March 31, 2023 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ 8,811 $ (226) $ 8,585 Other comprehensive income before reclassifications (2) 10,644 11,021 21,665 Amounts reclassified from accumulated other comprehensive income (5) (912) (917) Net current-period other comprehensive income 10,639 10,109 20,748 End of year $ 19,450 $ 9,883 $ 29,333 (2) Changes in other comprehensive income (loss) before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit of $3.8 million and $3.9 million, respectively, for the fiscal year ended March 31, 2023. Fiscal Year Ended March 31, 2022 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ (1,562) $ (28,209) $ (29,771) Other comprehensive income before reclassifications (3) 10,294 15,032 25,326 Amounts reclassified from accumulated other comprehensive income 79 12,951 13,030 Net current-period other comprehensive income 10,373 27,983 38,356 End of year $ 8,811 $ (226) $ 8,585 (3) Changes in other comprehensive income (loss) before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit of $3.6 million and $5.3 million, respectively, for the fiscal year ended March 31, 2022. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common Stock Holders of Class A Common Stock are entitled to one vote for each share. Each share of Class A Common is entitled to participate equally in all dividends and other distributions declared on and payable with respect to the Class A Common Stock, subject to the preferences and rights of any preferred stock and the General Corporation Law of the State of Delaware. The Company’s ability to pay dividends to stockholders is limited as a practical matter by restrictions in the agreements governing the Company's indebtedness. The authorized and unissued shares of Class A Common Stock are available for future issuance upon stock option exercises and vesting of restricted stock units without additional stockholder approval. Share Repurchase Program On December 21, 2011, the Board of Directors adopted a share repurchase program, which was most recently increased by $525.0 million to $3,085.0 million on May 22, 2024. A special committee of the Board evaluates market conditions and other relevant factors and initiates repurchases under the program from time to time. The share repurchase program may be suspended, modified or discontinued at any time at the Company’s discretion without prior notice. During fiscal 2024, the Company purchased 3.2 million shares of Class A Common Stock in a series of open market transactions for $372.8 million. During fiscal 2023, the Company purchased 2.1 million shares of Class A Common Stock in a series of open market transactions for $196.2 million. As of March 31, 2024, the Company had $483.2 million remaining under the share repurchase program. Dividends The following table summarizes the cash distributions recognized in the consolidated statement of cash flows: Fiscal Year Ended March 31, 2024 2023 2022 Recurring dividends (1) $ 253,413 $ 235,726 $ 209,057 (1) |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The following table summarizes stock-based compensation expense recognized in the consolidated statements of operations: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 43,995 $ 43,378 $ 36,836 General and administrative expenses 50,987 36,894 32,948 Total $ 94,982 $ 80,272 $ 69,784 The following table summarizes the total stock-based compensation expense recognized in the consolidated statements of operations by the following types of equity awards, including stock options, time-based and performance-based restricted stock awards. Compensation expense for performance-based awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria of each tranche during the respective performance periods: Fiscal Year Ended March 31, 2024 2023 2022 Equity Incentive Plan Options $ 1,319 $ 2,550 $ 1,793 Restricted Stock and Other Awards 93,663 77,722 67,991 Total $ 94,982 $ 80,272 $ 69,784 As of March 31, 2024 and 2023, there was $62.3 million and $50.9 million, respectively, of total unrecognized compensation cost related to unvested stock-based compensation agreements. The unrecognized compensation cost as of March 31, 2024 is expected to be fully amortized over the next five years. Absent the effect of forfeiture or acceleration of stock compensation cost for departures of employees, the following tables summarize the unrecognized compensation cost and the weighted average period the cost is expected to be amortized (excludes any future award): Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized March 31, March 31, March 31, March 31, Equity Incentive Plan Options $ 2,592 $ 3,495 3.6 3.7 Restricted Stock and Other Awards 59,706 47,451 1.7 1.8 Total $ 62,298 $ 50,946 Equity Incentive Plan Awards under the Company's Equity Incentive Plan (the “EIP”) may be made in the form of stock options; stock purchase rights; restricted stock; restricted stock units; performance shares; performance units; stock appreciation rights; deferred share units; dividend equivalents; and other stock-based awards. As of March 31, 2024 and 2023, there were 6.0 million and 7.7 million shares, respectively, available for future grant under the EIP. Stock Options Stock options under the EIP are granted at the discretion of the Board of Directors or its Compensation, Culture and People Committee and expire ten years from the grant date. Stock options generally vest in equal installments over a five-year period subject to the grantee’s continued service on each applicable vesting. All options under the EIP are exercisable, upon vesting, for shares of Class A Common Stock of Holding. As of March 31, 2024 and 2023, 0.2 million and 0.4 million options were unvested under the EIP, with a weighted average grant date fair value of $18.45 and $15.61, respectively. There were 0.8 million and 1.1 million EIP options outstanding as of March 31, 2024 and 2023, with a weighted average exercise price of $67.98 and $60.55, respectively. Annual Incentive Plans On October 1, 2010, the Board of Directors adopted an Annual Incentive Plan, or AIP, in connection with the initial public offering to more appropriately align the Company’s compensation programs with those of similarly situated companies. The amount of the annual incentive payment is determined based on performance targets established by the Board and a portion of the bonus may be paid in the form of equity (including stock and other awards under the EIP). Such equity awards vest over a three-year period subject to the employee’s continued service to the Company. The related expense is recognized in the accompanying consolidated statements of operations based on grant date fair value over the vesting period of three years. The Company maintains annual incentive programs for officers and key employees. The equity compensation would be issued in the form of restricted stock units of which a portion would vest based on the passage of time, and the other portion would vest based on specified performance conditions to be achieved over a specified time period. A restricted stock unit represents a contingent right to receive one share of Class A Common Stock upon vesting. Service-based restricted stock units vest in equal installments over a three-year period subject to the grantee's continued service on each applicable vesting date and are settled for shares of Class A Common Stock. Dividend equivalents are paid in respect of the service-based restricted stock units when dividends are paid on the Company's Class A Common Stock. The related expense is recognized in the accompanying consolidated statements of operations based on grant date fair value over the vesting period. Performance-based awards vest at the end of a three-year period, subject to certain specified financial performance criteria, the grantee's continued service through the period, and certification of final performance by the Compensation, Culture and People Committee of the Board of Directors. The performance-based awards granted during fiscal 2024 included additional market conditions related to the Company’s total shareholder return relative to its peer group over the three-year performance period. The Company recognizes compensation expense for these performance-based awards with market conditions based on the grant-date fair value calculated using a Monte Carlo model. T hese awards are settled for Class A Common Stock and dividend equivalents. Compensation expense for performance-based awards during the performance period is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria. The Company also issues equity awards under other programs in the form of restricted stock units that would vest immediately after issuance or over an applicable vesting period subject to the employee's continued service for the Company. The associated expenses are recognized in the accompanying consolidated statements of operations based on grant date fair value. Grants of Class A Restricted Common Stock and Restricted Stock Units During fiscal 2024, the Board of Directors granted an aggregate of 1.0 million Restricted Stock Units with service-based and performance-based vesting conditions to existing officers, vice presidents, and other employees and non-employees of the Company, as well as to newly promoted and hired partners and vice presidents. The awards will vest based on the applicable vesting period for the specific award subject to the employees' continued employment with the Company. The Board also granted Class A Restricted Common Stock to members of the Board during fiscal 2024. These awards generally vest over one year. The aggregate fair value of all awards issued during fiscal 2024 was $97.2 million and will be recognized in the accompanying consolidated statements of operations over the applicable vesting period of the awards. The total fair value of restricted stock shares vested during fiscal 2024 and 2023 was $86.2 million and $70.2 million, respectively. As permitted under the terms of the EIP, the Compensation, Culture and People Committee, as Administrator of the Plan, authorized the withholding of taxes not to exceed the minimum statutory withholding amount, through the surrender of shares of Class A Common Stock issuable upon the vesting or accelerated vesting of Restricted Stock. As a result of these transactions, the Company repurchase d 0.3 million shares a nd recorded them as treasury shares at a total cost of $42.3 million in fiscal 2024. The following table summarizes unvested restricted stock activity for the periods presented: Number of Weighted Unvested Restricted Stock Awards Unvested at March 31, 2023 1,184,587 $ 87.08 Granted 982,447 98.94 Vested 949,651 90.79 Forfeited 106,720 96.81 Unvested at March 31, 2024 (1) 1,110,663 $ 93.46 (1) Unvested restricted stock includes 0.1 million shares of performance-based awards that completed the three-year performance period but remained unsettled at March 31, 2024, subject to the certification of final performance by the Compensation, Culture and People Committee of the Board of Directors. Employee Stock Purchase Plan The Company offers a tax qualified Employee Stock Purchase Plan, or ESPP, which is designed to enable eligible employees to periodically purchase shares of the Class A Common Stock at a five percent discount from the fair market value of the Class A Common Stock. The ESPP provides for quarterly offering periods. For the year ended March 31, 2024, 0.2 million shares of Class A Common Stock were purchased by employees under the ESPP. Since the program's inception, 3.7 million shares have been purchased by employees of the total 10.0 million shares available. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The financial instruments measured at fair value on a recurring basis in the accompanying consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 8,713 $ — $ 8,713 Long-term derivative instruments (1) — 1,556 — 1,556 Long term deferred compensation plan asset (2) 28,957 — — 28,957 Total Assets $ 28,957 $ 10,269 $ — $ 39,226 Liabilities: Long term deferred compensation plan liability (2) 28,957 — — 28,957 Total Liabilities $ 28,957 $ — $ — $ 28,957 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 11,245 $ — $ 11,245 Long-term derivative instruments (1) — 3,530 — 3,530 Long term deferred compensation plan asset (2) $ 20,090 $ — $ — $ 20,090 Total Assets $ 20,090 $ 14,775 $ — $ 34,865 Liabilities: Long-term derivative instruments (1) — 1,369 — 1,369 Long term deferred compensation plan liability (2) 20,090 — — 20,090 Total liabilities $ 20,090 $ 1,369 $ — $ 21,459 (1) 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 11, “Derivatives,” to the consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. (2) 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 consolidated balance sheets. The fair value of the Company's cash and cash equivalents, which are Level 1 inputs, approximated its carrying values at March 31, 2024 and 2023. The Company’s cash and cash equivalent balances presented on the accompanying consolidated balance sheets include $192.7 million and $237.8 million of marketable securities in money market funds as of March 31, 2024 and 2023, respectively. The Company's long-term debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair values of debt are determined using quoted prices or other market information obtained from recent trading activity of the debt 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 are determined using quoted prices or other market information obtained from recent trading activity in the high-yield bond market (Level 2 inputs). The carrying amount and estimated fair value of debt consists of the following: March 31, 2024 March 31, 2023 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Term Loan A $ 1,588,125 $ 1,582,170 $ 1,629,375 $ 1,600,861 3.875% Senior Notes due 2028 700,000 656,677 700,000 638,540 4.000% Senior Notes due 2029 500,000 465,470 500,000 451,930 5.950% Senior Notes due 2033 650,000 672,815 — — For our investments that are measured at fair value on a non-recurring basis, we did not have any material measurement adjustments during fiscal 2024. See Note 5, “Acquisition and Divestitures,” to the consolidated financial statements for details on non-recurring fair value measurement adjustments related to the assets and liabilities acquired through our acquisitions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Two of our directors served on the board of directors of a subcontractor to which the Company subcontracted $70.0 million of services for fiscal 2022. The subcontractor was acquired by another company in August 2021, at which point the two directors ceased to serve on the board of directors. Other than the fiscal 2022 subcontractor fees noted, we did not have any other material related party transactions in fiscal 2024, 2023 or 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit and Third-Party Guarantees As of March 31, 2024 and 2023, 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 $4.4 million and $6.1 million, respectively. These letters of credit and bank guarantees primarily support insurance and bid and performance obligations. At both March 31, 2024 and 2023, approximately $1.3 million of these instruments reduce the available borrowings under the Revolving Credit Facility. The remainder is guaranteed under a separate $7.5 million facility of which $4.4 million and $2.7 million were available to the Company at March 31, 2024 and March 31, 2023, respectively. Government Contracting Matters - Provision for Claimed Indirect Costs For each of the fiscal years 2024, 2023, and 2022, approximately 98%, 97%, and 97%, respectively, 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, including the Defense Contract Audit Agency (“DCAA”), audit the Company’s 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. Based upon DCAA’s recent audit findings, the Company reduced a portion of its provision for claimed indirect costs related to fiscal 2022 by approximately $18.3 million during the second quarter of fiscal 2024, which resulted in a corresponding increase to revenue, to reflect our best estimate of the final indirect cost rates for fiscal 2022. Operating income for the fiscal year ended March 31, 2024 was accordingly increased by $18.3 million and net income was increased by $13.5 million (or $0.10 of basic and diluted earnings per common share for the fiscal year ended March 31, 2024). Our final indirect cost rates for fiscal 2022 remain subject to negotiation with the Defense Contract Management Agency (“DCMA”) Administrative Contracting Officer. M anagement 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 March 31, 2024 and 2023, the Company had recorded liabilities of approximately $363.7 million and $326.7 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 March 31, 2024 and 2023, there were no material amounts accrued in the consolidated financial statements related to these proceedings. On June 7, 2017, Booz Allen Hamilton was informed that the U.S. Department of Justice (“DOJ”) was conducting a civil and criminal investigation of the Company. In connection with the investigation, the DOJ 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. The investigation resulted from a qui tam lawsuit filed on or about September 26, 2016 in the United States District Court for the District of Columbia pursuant to the qui tam provisions of the civil False Claims Act (the “Civil Action”), which lawsuit was under judicial seal until July 21, 2023. After learning of the investigation, the Company 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 was also contacted by other regulatory agencies and bodies, including the SEC, which notified the Company that it was conducting an investigation that the Company believes related to the matters that were also the subject of the DOJ's investigation. On May 12, 2021, the Company was informed that the DOJ closed its criminal investigation. On July 21, 2023, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the United States of America, acting through the DOJ and on behalf of the Department of Defense and Defense Contract Management Agency (collectively the “United States”), and Relator Sarah A. Feinberg, to resolve the DOJ’s civil investigation and the Civil Action. The Company entered into the Settlement Agreement to avoid the delay, uncertainty and expense of protracted litigation. The Settlement Agreement contains no admission of liability by the Company. Under the terms of the Settlement Agreement, the Company agreed to pay to the United States $377.5 million (the “Settlement Amount”). The Company paid the Settlement Amount with cash on hand and by drawing on its revolving credit facility. As of June 30, 2023, the Company had recorded a $377.5 million reserve relating to this investigation and had previously disclosed that it believed the range of reasonably possible loss in connection with the investigation to be between $350 million and $378 million. Following the United States’ receipt of the Settlement Amount, the Company was released from any civil or administrative monetary claims under the civil False Claims Act and other specified civil statutes and common law theories of liability for certain elements of the Company’s cost accounting and indirect cost charging practices from April 1, 2011 through March 31, 2021, and the claim brought in the Civil Action was dismissed with prejudice. On July 27, 2023, the Company was informed that the SEC concluded its investigation without recommending an enforcement action. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company reports operating results and financial data in one operating and reportable segment. The Company manages its business as a single profit center in order to promote collaboration, provide comprehensive functional service offerings across its entire client base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding served markets and functional capabilities is discussed for purposes of promoting an understanding of the Company’s complex business, the Company manages its business and allocates resources at the consolidated level of a single operating segment. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn May 24, 2024, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.51 per share. Payment of the dividend will be made on June 28, 2024 to stockholders of record at the close of business on June 13, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 605,706 | $ 271,791 | $ 466,740 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 shares | Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Melody Barnes [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Melody Barnes, a member of the Board of Directors, adopted a new Rule 10b5-1 trading arrangement on March 14, 2024 that will terminate on March 14, 2025. Under the trading arrangement, up to an aggregate of 1,041 shares of common stock are available to be sold by the broker upon reaching pricing targets defined in the trading arrangement. | |
Name | Melody Barnes | |
Title | Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 14, 2024 | |
Arrangement Duration | 365 days | |
Aggregate Available | 1,041 | 1,041 |
Richard Crowe [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Richard Crowe, an Executive Vice President and President for the Company's Civil sector, adopted a new Rule 10b5-1 trading arrangement on March 4, 2024 that will terminate on February 28, 2025. Under the trading arrangement, up to an aggregate of 5,249 shares of common stock are available to be sold by the broker upon reaching pricing targets defined in the trading arrangement | |
Name | Richard Crowe | |
Title | Executive Vice President and President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 4, 2024 | |
Arrangement Duration | 361 days | |
Aggregate Available | 5,249 | 5,249 |
Susan Penfield [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Susan Penfield, our Chief Technology Officer, adopted a new Rule 10b5-1 trading arrangement on February 8, 2024 that will terminate on June 7, 2024. Under the trading arrangement, up to an aggregate of 30,161 shares of common stock issuable upon the exercise of options are available to be sold by the broker upon reaching pricing targets defined in the trading arrangement | |
Name | Susan Penfield | |
Title | Chief Technology Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | February 8, 2024 | |
Arrangement Duration | 120 days | |
Aggregate Available | 30,161 | 30,161 |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Mar. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are majority-owned or otherwise controlled by the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and notes of the Company include its subsidiaries and other entities over which the Company has a controlling financial interest or where the Company is a primary beneficiary. 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. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost (measurement alternative). |
Reclassification | Certain amounts reported in the Company's prior year consolidated financial statements have been reclassified to conform to the current year presentation. |
Accounting Estimates | Accounting Estimates The preparation of consolidated 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 consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and expected 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. |
Revenue Recognition | Revenue Recognition 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 all 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 and generates revenue under three basic types of contracts, as described below: • 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 Company considers a contract with a customer to exist under Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers (“Topic 606”), when there is approval and commitment from both the Company and the customer, the rights of the parties and payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company also will consider whether two or more contracts entered into with the same customer should be combined and accounted for as a single contract. Furthermore, in certain transactions with commercial clients and with the U.S. government, the Company may commence providing services prior to receiving a formal approval from the customer. In these situations, the Company will consider the factors noted above, the risks associated with commencing the work and legal enforceability in determining whether a contract with the customer exists under Topic 606. Customer contracts are often modified to change the scope, price, specifications or other terms within the existing arrangement. Contract modifications are evaluated by management to determine whether the modification should be accounted for as part of the original performance obligation(s) or as a separate contract. If the modification adds distinct goods or services and increases the contract value proportionate to the stand-alone selling price of the additional goods or services, it will be accounted for as a separate contract. Generally, the Company’s contract modifications do not include goods or services which are distinct, and therefore are accounted for as part of the original performance obligation(s) with any impact on transaction price or estimated costs at completion being recorded as through a cumulative catch-up adjustment to revenue. The Company evaluates each service deliverable contracted with the customer to determine whether it represents promises to transfer distinct goods or services. Under Topic 606, these are referred to as performance obligations. One or more service deliverables often represent a single performance obligation. This evaluation requires significant judgment and the impact of combining or separating performance obligations may change the time over which revenue from the contract is recognized. The Company’s contracts generally provide a set of integrated or highly interrelated tasks or services and are therefore accounted for as a single performance obligation. However, in cases where we provide more than one distinct good or service within a customer contract, the contract is separated into individual performance obligations which are accounted for discretely. 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-materials 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 result 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. Unbilled amounts represent revenues for which billings have not yet been presented to customers. 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 consolidated balance sheets. 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 credit losses to provide for an estimate of uncollectible receivables. 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. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances. Contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (the “FAR”) and are priced based on estimated or actual costs of providing the goods or services. The Company derives a majority of its revenue from contracts awarded through a competitive bidding process. Pricing for non-U.S. government agencies and commercial customers is based on discrete negotiations with each customer. Certain of the Company’s contracts contain award fees, incentive fees or other provisions that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. Management estimates variable consideration as the most likely amount that we expect to achieve based on our assessment of the variable fee provisions within the contract, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. The Company may perform work under a contract that has not been fully funded if the work has been authorized by management and the customer to proceed. The Company evaluates unfunded amounts as variable consideration in estimating the transaction price. We include the estimated variable consideration in our transaction price to the extent that it is probable that a significant reversal of revenue will not occur upon the ultimate settlement of the variable fee provision. Our U.S. government contracts generally contain FAR provisions that enable the customer to terminate a contract for default or for the convenience of the U.S. government. The Company recognizes revenue for each performance obligation identified within our customer contracts when, or as, the performance obligation is satisfied by transferring the promised goods or services. Revenue may either be recognized over time or at a point in time. The Company generally recognizes revenue over time as our contracts typically involve a continuous transfer of control to the customer. A continuous transfer of control under contracts with the U.S. government and its agencies is evidenced by clauses which require the Company to be paid for costs incurred plus a reasonable margin in the event that the customer unilaterally terminates the contract for convenience. For contracts where the Company recognizes revenue over time, a contract cost-based input method is generally used to measure progress towards satisfaction of the underlying performance obligation(s). Contract costs include direct costs such as materials, labor and subcontract costs, as well as indirect costs identifiable with, or allocable to, a specific contract that are expensed as incurred. The Company does not incur material incremental costs to acquire or fulfill contracts. Under a contract cost-based input method, revenue is recognized based on the proportion of contract costs incurred to the total estimated costs expected to be incurred upon completion of the underlying performance obligation. The Company generally includes both funded and unfunded portions of customer contracts in this estimation process. For interim financial reporting periods, contract revenue attributable to indirect costs is recognized based upon agreed-upon annual forward-pricing rates established with the U.S. government at the start of each fiscal year. Forward pricing rates are estimated and agreed upon between the Company and the U.S. government and represent indirect contract costs required to execute and administer contract obligations. The impact of any agreed-upon changes, or changes in the estimated annual forward-pricing rates, are recorded in the interim financial reporting period when such changes are identified. These changes relate to the interim financial reporting period differences between the actual indirect costs incurred and allocated to customer contracts compared to the estimated amounts allocated to contracts using the estimated annual forward-pricing rates established with the U.S. government. At the end of each fiscal year, estimated annual forward-pricing rates are adjusted to reported actual rates, with contract revenue attributable to indirect costs adjusted accordingly. These preliminary actual rates and their ultimate impact on contract revenue are subject to final audit and negotiation with the U.S. government, which may take place several years in the future. On certain contracts, principally time-and-materials and cost-reimbursable-plus-fee contracts, revenue is recognized using the right-to-invoice practical expedient as the Company is contractually able to invoice the customer based on the control transferred. However, we did not elect to use the practical expedient which would allow the Company to exclude contracts recognized using the right-to-invoice practical expedient from the remaining performance obligations disclosed below. Additionally, for stand-ready performance obligations to provide services under fixed-price contracts, revenue is recognized over time using a straight-line measure of progress as the control of the services is provided to the customer ratably over the term of the contract. If a contract does not meet the criteria for recognition of revenue over time, we recognize revenue at the point in time when control of the good or service is transferred to the customer. Determining a measure of progress towards the satisfaction of performance obligations requires management to make judgments that may affect the timing of revenue recognition. 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 in the period when such changes are made on a cumulative catch-up basis. 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 fiscal 2024, 2023 and 2022, the aggregate impact of adjustments in contract estimates was not material. 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 exclude negotiated but unexercised options, the unfunded value of expired contracts, and certain variable consideration which the Company does not expect to recognize as revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash accounts and highly liquid investments that have a maturity of three months or less at the date of purchase. The Company’s cash equivalents consist primarily of government money market funds and money market deposit accounts. The Company maintains its cash and cash equivalents in bank accounts that, at times, exceed the federally insured FDIC limits. The Company has not experienced any losses in such accounts. |
Valuation of Accounts Receivable | Valuation of Accounts Receivable The Company maintains allowances for doubtful accounts against certain accounts receivables based upon the latest information regarding whether specific charges are recoverable or invoices are ultimately collectible. Assessing the recoverability of charges and collectability of customer receivables requires management judgment. The Company determines its allowance for doubtful accounts by specifically analyzing individual accounts receivable, historical bad debts, customer credit-worthiness, current economic conditions, accounts receivable aging trends for billed receivables, availability of funding, compliance with contractual terms and conditions, client satisfaction with work performed, and other factors impacting accounts receivables. Valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate recoverability and collectability of accounts receivable becomes available. Upon determination that a receivable is uncollectible, the receivable balance and any associated reserve are written off. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. The Company’s cash equivalents are generally invested in U.S. government money market funds and money market deposit accounts. The Company believes that credit risk for accounts receivable is limited as the receivables are primarily with the U.S. government. |
Property and Equipment | Property and Equipment five |
Business Combinations | Business Combinations |
Intangible Assets | Intangible Assets two one |
Goodwill | Goodwill |
Long-Lived Assets | Long-Lived Assets |
Leases | Leases At contract inception, the Company determines whether the contract is, or contains, a lease, which exists when the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. Operating lease balances are included in operating lease ROU assets, operating lease liabilities, and operating lease liabilities, net of current portion in our consolidated balance sheet. Cash payments arising from operating leases are classified within operating activities in the consolidated statement of cash flows. As of March 31, 2024, the Company had no finance leases. The Company's leases are generally for facilities and office space and the Company recognizes ROU assets and lease liabilities at the lease commencement date for those arrangements. The initial lease liability is equal to the present value of the future minimum lease payments over the lease term. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepaid lease payments, less any lease incentives. At the lease commencement date, the Company estimates its collateralized incremental borrowing rate based on publicly available yields adjusted for Company-specific considerations and the Company's varying lease terms in determining the present value of future payments. Certain of the Company’s leases contain options to renew or to terminate the lease which are included in the determination of the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. The Company's leases may also include variable lease payments, such as an escalation clause based on consumer price index rates, maintenance costs, and utilities. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date, whereas variable lease-related payments that do not depend on an index or rate are recorded as lease expense in the period incurred. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. As permitted under Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) |
Income Taxes | Income Taxes The Company provides for income taxes as a “C” corporation on income earned from operations. The Company is subject to federal, state, and foreign taxation in various jurisdictions. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are computed based on the difference between the consolidated financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates and laws for the years in which these items are expected to reverse. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to an appropriate level in that period. In determining the need for a valuation allowance, management considers all positive and negative evidence, including historical earnings, projected future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryback periods, and prudent, feasible tax-planning strategies. The Company periodically assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the Internal Revenue Service (“IRS”) or other taxing authorities. The Company reserves for these uncertain tax positions related to unrecognized income tax benefits where it is not more likely than not that the Company’s tax position will be sustained on examination and settlement with the various taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. As uncertain tax positions in periods open to examination are closed out, or as new information becomes available, the resulting change is reflected in the recorded liability and income tax expense. Penalties and interest recognized related to the reserves for uncertain tax positions are recorded as a component of income tax expense. |
Comprehensive Income | Comprehensive Income Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and is presented in the consolidated statements of comprehensive income. Accumulated other comprehensive income as of March 31, 2024 and 2023 consisted of net unrealized gains or losses on the Company’s defined and postretirement benefit plans and unrealized gains or losses on interest rate swaps designated as cash flow hedges. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation to employees is recognized in the consolidated statements of operations based on the grant date fair values with the expense for time vested awards recognized on an accelerated basis over the vesting perio d. The Company estimates forfeitures anticipated to occur during the vesting period for the purposes of recognizing costs associated with stock-based compensation. The expense for performance awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria and is recognized straight line over the vesting pe riod. The Company uses the Black-Scholes option-pricing model to determine the fair value of its option awards at the time of grant. |
Defined Contribution Plan and Other Post-Retirement Benefits | Defined Contribution Plan and Other Post-Retirement Benefits The Company recognizes the underfunded status of defined contribution plans and other post-retirement benefits on the consolidated balance sheets within other long-term liabilities. Gains and losses, and prior service costs and credits that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, and will be amortized as a component of net periodic cost in future periods. The measurement date, the date at which the benefit obligations are measured, is the Company’s fiscal year-end. |
Self-Funded Medical Plans | Self-Funded Medical Plans The Company maintains self-funded medical insurance. Self-funded plans include Consumer Driven Health Plans with a Health Savings Account option and traditional choice plans. Further, self-funded plans also include prescription drug and dental benefits. The Company records an incurred but unreported claim liability in the accrued compensation and benefits line of the consolidated balance sheets for self-funded plans based on an actuarial valuation. The estimate of the incurred but unreported claim liability was provided by a third-party valuation firm, primarily based on claims and participant data for the medical, dental, and pharmacy related costs. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company considers the principal or most advantageous market in which the asset or liability would transact, and if necessary, considers assumptions that market participants would use when pricing the asset or liability. |
Investments in Variable Interest Entities and Other Investments | Investments in Variable Interest Entities and Other Investments The Company invests in certain companies that advance or develop new technologies applicable to its business. Each investment is evaluated for consolidation under the variable interest entities model and/or the voting interest model. The results of these investments are not material to the consolidated financial statements for the periods presented. 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. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are Level 3 inputs and are accounted for under the measurement alternative. As of March 31, 2024 and March 31, 2023, respectively, the total of equity and other investments related to unconsolidated entities included in other long term assets of the Company’s consolidated balance sheet were $42.0 million and $23.1 million. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“Topic 805”) , which amends the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms, and their effect on subsequent revenue recognized by the acquirer. Topic 805 is effective for annual periods beginning after December 15, 2022 on a prospective basis. Early adoption is permitted. The Company early adopted the requirements of Topic 805 to apply the amendments prospectively to all business combinations that occurred on or after April 1, 2022. 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 (“Topic 848”). The guidance is intended to provide relief for entities impacted by reference rate reform. Topic 848 contains provisions and optional accounting expedients designed to simplify requirements around the designation of hedging relationships, probability assessments of hedged forecasted transactions, and accounting for modifications of contracts that refer to the London Interbank Offered Rate (“LIBOR”) or other rates affected by reference rate reform. The guidance is elective and is effective on the date of issuance. Topic 848 is applied prospectively to contract modifications and as of the effective date for existing and new eligible hedging relationships. During the first quarter of fiscal 2024, the Company modified its interest rate swap agreements to transition from LIBOR-indexed to Term Secured Overnight Financing Rate (“SOFR”) indexed periodic swap payments to align with interest payments in connection with its Term SOFR-indexed debt. As such, the Company elected the optional expedients under Topic 848 which allows the cash flow hedge to continue being recognized under hedge accounting without de-designation upon a change in critical terms affected by the reference rate reform. The adoption of this guidance did not have a material impact on the consolidated financial statements and disclosures. The Company has elected to apply the hedge accounting practical expedient related to the probability of hedged future LIBOR-indexed cash flows and continued its quantitative method of assessing subsequent hedge effectiveness in the fourth quarter of fiscal 2020. Further, during the second quarter of fiscal year 2023, the Company transitioned its term loans from LIBOR-indexed interest payments to Term SOFR-indexed interest payments in connection with the Ninth Amendment of the Credit Agreement. For its interest rate swaps designated as cash flow hedges, the Company elected to apply certain of the accounting expedients to assume that the reference rates, which hedged forecasted transactions will be based on, match the LIBOR-indexed rates used in the Company's interest rate swaps consistent with past presentation. The Company continues to evaluate the impact of Topic 848 and may apply other elections, as applicable. The adoption of this guidance did not have a material impact on the consolidated financial statements and disclosures. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), which enhances reportable segment disclosure requirements, including significant segment expenses and interim disclosures (“Topic 280”). The guidance allows for disclosure of multiple measures of a segment’s profit or loss, and it requires that public entities with a single reportable segment provide all disclosures required by the ASU and all existing disclosures in Topic 280. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments are to be applied retrospectively, and early adoption is permitted. The Company is currently assessing the impact of this update and does not expect this update to have a material impact on its present or historical consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by Contract Type: Fiscal Year Ended March 31, 2024 2023 2022 Cost-reimbursable $ 5,873,045 55% $ 4,908,451 53% $ 4,514,262 54% Time-and-materials 2,530,366 24% 2,296,965 25% 2,017,094 24% Fixed-price 2,258,485 21% 2,053,495 22% 1,832,344 22% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% Revenue by Customer Type: Fiscal Year Ended March 31, 2024 2023 2022 U.S. government (1) : Defense Clients $ 5,055,779 47% $ 4,228,110 45% $ 3,965,590 47% Intelligence Clients 1,774,405 17% 1,686,622 18% 1,573,216 19% Civil Clients 3,658,465 34% 3,112,537 34% 2,608,618 31% Total U.S. government 10,488,649 98% 9,027,269 97% 8,147,424 97% Global Commercial Clients 173,247 2% 231,642 3% 216,276 3% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% (1) Certain contracts were reassigned between the various verticals of our U.S. government business shown in the table above to better align our operations to the customers we serve within each market. Comparative periods revenue by customer type has been recast to reflect the changes. Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Fiscal Year Ended March 31, 2024 2023 2022 Prime Contractor $ 10,143,192 95% $ 8,755,628 95% $ 7,864,273 94% Sub-contractor 518,704 5% 503,283 5% 499,427 6% Total Revenue $ 10,661,896 100% $ 9,258,911 100% $ 8,363,700 100% |
Schedule of Contract Assets and Liabilities | The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s consolidated balance sheets: March 31, 2024 2023 Current assets: Accounts receivable–billed $ 700,066 $ 551,666 Accounts receivable–unbilled (contract assets) 1,347,577 1,223,482 Allowance for credit losses (301) (318) Accounts receivable, net 2,047,342 1,774,830 Other long-term assets: Accounts receivable–unbilled (contract assets) 57,355 59,455 Total accounts receivable, net $ 2,104,697 $ 1,834,285 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 15,527 $ 18,995 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of 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: Fiscal Year Ended 2024 2023 2022 Numerator: (1) Earnings for basic computations $ 600,740 $ 269,656 $ 463,626 Earnings for diluted computations $ 600,750 $ 269,657 $ 463,635 Denominator: Weighted-average common stock shares outstanding, basic 130,366,501 132,161,646 134,134,034 Dilutive stock options and restricted stock 449,402 554,790 716,774 Weighted-average common stock shares outstanding, diluted (2) 130,815,903 132,716,436 134,850,808 Earnings per share of common share: Basic $ 4.61 $ 2.04 $ 3.46 Diluted (2) $ 4.59 $ 2.03 $ 3.44 (1) The difference between earnings for basic and diluted computations and net income presented on the consolidated statements of operations is due to undistributed earnings and dividends allocated to the participating securities. During fiscal 2024, 2023, and 2022, respectively, approximately 1.1 million, 1.1 million, and 0.9 million shares of participating securities were paid dividends totaling $2.1 million, $1.8 million, and $1.4 million, respectively. There were undistributed earnings of $2.9 million, $0.3 million, and $1.7 million allocated to the participating class of securities in both basic and diluted earnings per share of common stock for fiscal 2024, 2023, and 2022, respectively. (2) The impact of anti-dilutive options excluded from the calculation of diluted EPS was not material during the periods presented. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the consideration and the allocation of the purchase price paid for EverWatch: Cash consideration (gross of cash acquired) $ 445,074 Purchase price allocation: Cash 4,779 Current assets 27,725 Operating lease right-of-use asset 7,894 Other long-term assets 5,078 Intangible assets 108,600 Deferred tax liabilities (20,394) Current liabilities (11,612) Operating lease liabilities - short-term (1,362) Operating lease liabilities - long-term (6,532) Total fair value of identifiable net assets acquired $ 114,176 Goodwill $ 330,898 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consisted of the following: March 31, 2024 March 31, 2023 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Programs and contract assets, channel relationships, and other amortizable intangible assets $ 591,895 $ 237,764 $ 354,131 $ 599,794 $ 169,316 $ 430,478 Software 146,284 89,572 56,712 134,152 69,215 64,937 Total amortizable intangible assets $ 738,179 $ 327,336 $ 410,843 $ 733,946 $ 238,531 $ 495,415 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 928,379 $ 327,336 $ 601,043 $ 924,146 $ 238,531 $ 685,615 |
Summary of Expected Amortization Expense for Intangible Assets | The following table summarizes the estimated annual amortization expense for future periods, which does not reflect amortization expense for certain intangible assets that are not yet placed in service: For the Fiscal Year Ended March 31, 2025 $ 82,085 2026 70,883 2027 58,885 2028 50,833 2029 43,315 Thereafter 104,842 Total estimated amortization expense $ 410,843 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property and Equipment, Net | The components of property and equipment, net were as follows: March 31, 2024 2023 Furniture and equipment $ 121,544 $ 119,316 Computer equipment 107,902 111,538 Leasehold improvements 269,964 258,258 Total 499,410 489,112 Less: Accumulated depreciation and amortization (311,131) (293,926) Property and equipment, net $ 188,279 $ 195,186 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Accrued Expenses | Accounts payable and other accrued expenses consisted of the following: March 31, 2024 2023 Vendor payables $ 653,131 $ 597,808 Accrued expenses 397,539 718,832 Total accounts payable and other accrued expenses $ 1,050,670 $ 1,316,640 |
Accrued Compensation and Bene_2
Accrued Compensation and Benefits (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Compensation Related Costs [Abstract] | |
Schedule of Accrued Compensation and Benefits | Accrued compensation and benefits consisted of the following: March 31, 2024 2023 Bonus $ 151,063 $ 120,023 Retirement 57,465 52,480 Vacation 223,385 203,627 Other 74,217 69,075 Total accrued compensation and benefits $ 506,130 $ 445,205 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following on the dates below: March 31, 2024 March 31, 2023 Interest Outstanding Interest Outstanding Term Loan A 6.677 % $ 1,588,125 5.970 % $ 1,629,375 Senior Notes due 2028 3.875 % 700,000 3.875 % 700,000 Senior Notes due 2029 4.000 % 500,000 4.000 % 500,000 Senior Notes due 2033 5.950 % 650,000 — % — Less: Unamortized debt issuance costs and discount on debt (26,309) (17,230) Total 3,411,816 2,812,145 Less: Current portion of long-term debt (61,875) (41,250) Long-term debt, net of current portion $ 3,349,941 $ 2,770,895 The following table summarizes interest payments made on the Company ’ s term loans: Three Months Ended Fiscal Year Ended 2024 2023 2024 2023 Term Loan A 27,027 24,233 107,286 63,244 Term Loan B — — — 5,209 Total $ 27,027 $ 24,233 $ 107,286 $ 68,453 The following table summarizes the material terms of the Company’s Senior Notes as of March 31, 2024: Indenture Date Principal Interest Rate Maturity Date Interest Payable Issuance Costs Senior Notes due 2033 8/4/2023 $650.0 million 5.950% 8/4/2033 February and August 4 $12.4 million Senior Notes due 2029 6/17/2021 $500.0 million 4.000% 7/1/2029 July and January 1 $6.5 million Senior Notes due 2028 8/24/2020 $700.0 million 3.875% 9/1/2028 March and September 1 $9.2 million |
Schedule of Future Debt Principal Repayments | The following table summarizes required future debt repayments: Payments Due By March 31, Total 2025 2026 2027 2028 2029 Thereafter Term Loan A $ 1,588,125 $ 61,875 $ 82,500 $ 82,500 $ 1,361,250 $ — $ — Senior Notes due 2028 700,000 — — — — 700,000 — Senior Notes due 2029 500,000 — — — — — 500,000 Senior Notes due 2033 650,000 — — — — — 650,000 Interest on indebtedness 942,804 192,101 187,040 181,454 125,934 72,237 184,038 Total $ 4,380,929 $ 253,976 $ 269,540 $ 263,954 $ 1,487,184 $ 772,237 $ 1,334,038 |
Schedule of Interest Expense | Interest expense on debt and debt-like instruments consisted of the following: Fiscal Year Ended March 31, 2024 2023 2022 Term Loan A $ 107,891 $ 63,463 $ 19,570 Term Loan B — 5,186 7,207 Revolving Credit Facility 1,438 — 25 Senior Notes 72,693 47,125 42,902 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 4,920 4,350 4,619 Interest Rate Swaps (14,932) (1,237) 17,535 Other 891 963 494 Total Interest Expense $ 172,901 $ 119,850 $ 92,352 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company's Revolving Credit Facility is recorded as a long-term asset on the consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effect of Derivative Instruments | The following table summarizes the material terms of the Company’s outstanding interest rate swap derivative contracts as of March 31, 2024: Effective Date Maturity Date Terms Notional Amount April 28, 2023 (1) June 30, 2024 Variable to Fixed $ 200,000 April 28, 2023 (1) June 30, 2025 Variable to Fixed 200,000 June 30, 2023 June 30, 2026 Variable to Fixed 150,000 Total $ 550,000 (1) Swap agreement was originally effective on April 30, 2019 and were amended during the first quarter of fiscal 2024 to transition from LIBOR-indexed to Term SOFR-indexed periodic swap payments to align with interest payments in connection with its Term SOFR-indexed debt. See Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements for further information on the transition. Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Income (1) Fiscal year ended March 31, Fiscal year ended March 31, 2024 2023 2022 2024 2023 2022 Interest rate swaps Interest expense $ 11,794 $ 14,919 $ 20,352 $ 14,932 $ 1,237 $ (17,535) (1) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedules of Lease Cost | The Company’s total lease cost is recorded primarily within general and administrative expenses on the consolidated statement of operations and consisted of the following: Fiscal Year Ended 2024 2023 2022 Operating lease cost $ 63,575 $ 68,620 $ 69,831 Short-term lease cost 1,211 455 585 Variable lease cost 12,911 11,237 11,641 Total operating lease costs $ 77,697 $ 80,312 $ 82,057 Supplemental cash flow information related to leases was as follows: Fiscal Year Ended 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 75,633 $ 66,529 $ 76,100 Operating lease liabilities arising from obtaining ROU assets (1) $ 40,151 $ 16,517 $ 41,206 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: March 31, 2024 2023 Weighted average remaining lease term (in years) 4.5 4.6 Weighted average discount rate 4.9 % 4.7 % |
Schedule of Future Minimum Operating Lease Payments | Future minimum operating lease payments for noncancelable operating leases as of March 31, 2024 are as follows: For the Fiscal Year Ending March 31, Operating Lease Payments 2025 $ 54,337 2026 61,710 2027 49,558 2028 41,357 2029 18,929 Thereafter 29,948 Total future lease payments 255,839 Less: imputed interest (30,518) Total lease liabilities $ 225,321 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense | The components of income tax expense were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Current U.S. Federal $ 229,234 $ 354,569 $ 232,844 State and local 116,751 86,947 26,333 Foreign 2,635 9,120 8,486 Total current 348,620 450,636 267,663 Deferred U.S. Federal (94,321) (300,494) (146,581) State and local (5,990) (50,318) 11,781 Foreign (695) (3,090) 4,603 Total deferred (101,006) (353,902) (130,197) Total $ 247,614 $ 96,734 $ 137,466 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income tax to the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for each of the three years ended March 31 is as follows: Fiscal Year Ended March 31, 2024 2023 2022 Income tax expense computed at U.S. federal statutory rate $ 179,197 $ 77,269 $ 126,981 Increases (reductions) resulting from: State and local income taxes, net of federal tax 85,486 32,599 28,762 Foreign income taxes, net of federal tax (7,932) 4,765 9,243 Non-deductible expenses, including non-deductible penalties 4,867 34,825 859 Excess tax benefits from stock-based compensation (10,091) (5,247) (4,227) Research and development and other federal credits (31,289) (33,159) (34,080) Executive compensation -162(m) 6,307 4,295 3,614 Foreign-Derived Intangible Income (FDII) (13,971) (15,869) (9,115) Changes in uncertain tax positions (including indirect effects) 37,592 (6,498) 16,938 Other (2,552) 3,754 (1,509) Income tax expense from operations $ 247,614 $ 96,734 $ 137,466 |
Schedule of Components of Income Tax Receivables and Payables | The Company has both income tax receivables and income tax payable on its consolidated balance sheet as follows: March 31, 2024 2023 Current income tax receivable $ 47,158 $ 23,633 Long term income tax receivable $ 152,474 $ 167,821 Current income tax payable $ 11,331 $ 14,523 |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred income tax assets and liabilities were as follows: March 31, 2024 2023 Deferred income tax assets: Accrued expenses $ 102,618 $ 146,945 Deferred compensation 54,314 47,931 Stock-based compensation 11,107 11,628 Pension and postretirement benefits 34,895 28,585 Net operating loss and other carryforwards 9,621 16,984 Research and development expenditures and indirect effects 248,147 599,381 State tax credits 108 11,516 Operating lease liabilities 63,781 69,604 Other 10,261 9,100 Total gross deferred income tax assets 534,852 941,674 Less: Valuation allowance (8,078) (11,788) Total net deferred income tax assets 526,774 929,886 Deferred income tax liabilities: Unbilled receivables (131,919) (177,321) Intangible assets (93,207) (88,858) Property and equipment (25,725) (34,905) Operating lease right-of-use assets (45,022) (48,939) Other (3,730) (6,083) Total deferred income tax liabilities (299,603) (356,106) Net deferred income tax asset $ 227,171 $ 573,780 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows: March 31, 2024 2023 2022 Beginning of year $ 547,885 $ 78,519 $ 62,742 Increases in prior year position 40,704 — 2,620 Increases in current year position 13,352 470,881 13,530 Decreases in prior year position (473,848) (1,328) (373) Settlements with taxing authorities (23,696) — — Lapse of statute of limitations (234) (187) — End of year $ 104,163 $ 547,885 $ 78,519 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Postretirement Medical Expense | The components of net postretirement medical expense for the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Service cost $ 5,100 $ 6,117 $ 6,505 Interest cost 5,067 4,182 4,063 Total postretirement medical expense $ 10,167 $ 10,299 $ 10,568 |
Schedule of Assumed Health Care Cost Trend Rates | Assumed healthcare cost trend rates for the Officer Medical Plan at March 31 were as follows: Pre-65 initial rate 2024 2023 Healthcare cost trend rate assumed for next year 7.25 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2032 Post-65 initial rate 2024 2023 Healthcare cost trend rate assumed for next year 7.50 % 6.80 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2032 |
Schedule of Change in Benefit Obligation | The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Benefit obligation, beginning of the year $ 105,585 $ 113,505 $ 121,518 Service cost 5,100 6,117 6,505 Interest cost 5,067 4,182 4,063 Net actuarial loss (gain) 17,163 (14,288) (13,563) Benefits paid (5,927) (3,931) (5,018) Benefit obligation, end of the year $ 126,988 $ 105,585 $ 113,505 |
Schedule of Change in Fair Value of Plan Assets | Fiscal Year Ended March 31, Changes in plan assets 2024 2023 2022 Fair value of plan assets, beginning of the year $ — $ — $ — Employer contributions 5,927 3,931 5,018 Benefits paid (5,927) (3,931) (5,018) Fair value of plan assets, end of the year $ — $ — $ — |
Schedule of Expected Future Benefit Payments | The expected future medical benefit payments and related contributions are as follows: For the Fiscal Year Ending March 31, 2025 $ 5,142 2026 5,677 2027 6,117 2028 6,658 2029 7,173 2030 - 2034 42,398 Total $ 73,165 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income, net of tax: Fiscal Year Ended March 31, 2024 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ 19,450 $ 9,883 $ 29,333 Other comprehensive (loss) income before reclassifications (1) (15,989) 8,643 (7,346) Amounts reclassified from accumulated other comprehensive income (1,485) (10,970) (12,455) Net current-period other comprehensive income (17,474) (2,327) (19,801) End of year $ 1,976 $ 7,556 $ 9,532 (1) Changes in other comprehensive income before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit (expense) of $5.5 million and $(3.2) million, respectively, for the fiscal year ended March 31, 2024. Fiscal Year Ended March 31, 2023 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ 8,811 $ (226) $ 8,585 Other comprehensive income before reclassifications (2) 10,644 11,021 21,665 Amounts reclassified from accumulated other comprehensive income (5) (912) (917) Net current-period other comprehensive income 10,639 10,109 20,748 End of year $ 19,450 $ 9,883 $ 29,333 (2) Changes in other comprehensive income (loss) before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit of $3.8 million and $3.9 million, respectively, for the fiscal year ended March 31, 2023. Fiscal Year Ended March 31, 2022 Post-retirement plans Derivatives designated as cash flow hedges Total Beginning of year $ (1,562) $ (28,209) $ (29,771) Other comprehensive income before reclassifications (3) 10,294 15,032 25,326 Amounts reclassified from accumulated other comprehensive income 79 12,951 13,030 Net current-period other comprehensive income 10,373 27,983 38,356 End of year $ 8,811 $ (226) $ 8,585 (3) Changes in other comprehensive income (loss) before reclassification for post-retirement plans and derivatives designated as cash flow hedges are recorded net of tax benefit of $3.6 million and $5.3 million, respectively, for the fiscal year ended March 31, 2022. |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of Dividends Declared | The following table summarizes the cash distributions recognized in the consolidated statement of cash flows: Fiscal Year Ended March 31, 2024 2023 2022 Recurring dividends (1) $ 253,413 $ 235,726 $ 209,057 (1) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense Recognized in the Condensed Consolidated Statements of Operations | The following table summarizes stock-based compensation expense recognized in the consolidated statements of operations: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 43,995 $ 43,378 $ 36,836 General and administrative expenses 50,987 36,894 32,948 Total $ 94,982 $ 80,272 $ 69,784 The following table summarizes the total stock-based compensation expense recognized in the consolidated statements of operations by the following types of equity awards, including stock options, time-based and performance-based restricted stock awards. Compensation expense for performance-based awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria of each tranche during the respective performance periods: Fiscal Year Ended March 31, 2024 2023 2022 Equity Incentive Plan Options $ 1,319 $ 2,550 $ 1,793 Restricted Stock and Other Awards 93,663 77,722 67,991 Total $ 94,982 $ 80,272 $ 69,784 |
Schedule of Unrecognized Compensation Cost | Absent the effect of forfeiture or acceleration of stock compensation cost for departures of employees, the following tables summarize the unrecognized compensation cost and the weighted average period the cost is expected to be amortized (excludes any future award): Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized March 31, March 31, March 31, March 31, Equity Incentive Plan Options $ 2,592 $ 3,495 3.6 3.7 Restricted Stock and Other Awards 59,706 47,451 1.7 1.8 Total $ 62,298 $ 50,946 |
Schedule of Unvested Restricted Stock Activity | The following table summarizes unvested restricted stock activity for the periods presented: Number of Weighted Unvested Restricted Stock Awards Unvested at March 31, 2023 1,184,587 $ 87.08 Granted 982,447 98.94 Vested 949,651 90.79 Forfeited 106,720 96.81 Unvested at March 31, 2024 (1) 1,110,663 $ 93.46 (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The financial instruments measured at fair value on a recurring basis in the accompanying consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 8,713 $ — $ 8,713 Long-term derivative instruments (1) — 1,556 — 1,556 Long term deferred compensation plan asset (2) 28,957 — — 28,957 Total Assets $ 28,957 $ 10,269 $ — $ 39,226 Liabilities: Long term deferred compensation plan liability (2) 28,957 — — 28,957 Total Liabilities $ 28,957 $ — $ — $ 28,957 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 11,245 $ — $ 11,245 Long-term derivative instruments (1) — 3,530 — 3,530 Long term deferred compensation plan asset (2) $ 20,090 $ — $ — $ 20,090 Total Assets $ 20,090 $ 14,775 $ — $ 34,865 Liabilities: Long-term derivative instruments (1) — 1,369 — 1,369 Long term deferred compensation plan liability (2) 20,090 — — 20,090 Total liabilities $ 20,090 $ 1,369 $ — $ 21,459 (1) 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 11, “Derivatives,” to the consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. (2) 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 consolidated balance sheets. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amount and estimated fair value of debt consists of the following: March 31, 2024 March 31, 2023 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Term Loan A $ 1,588,125 $ 1,582,170 $ 1,629,375 $ 1,600,861 3.875% Senior Notes due 2028 700,000 656,677 700,000 638,540 4.000% Senior Notes due 2029 500,000 465,470 500,000 451,930 5.950% Senior Notes due 2033 650,000 672,815 — — |
Business Overview (Details)
Business Overview (Details) | 12 Months Ended |
Mar. 31, 2024 employee segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Number of employees | employee | 34,200 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | Mar. 31, 2024 |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 4 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Intangible Assets and Goodwill (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2024 | Jan. 01, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge on intangibles | $ 0 | $ 0 | $ 0 | ||
Goodwill impairment | $ 0 | $ 0 | 0 | 0 | 0 |
Impairment charges | $ 0 | $ 0 | $ 0 | ||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 2 years | ||||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 14 years | ||||
Software | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 1 year | ||||
Software | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Investments in Variable Interest Entities and Other Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Accounting Policies [Abstract] | ||
Variable interest entities and other investments | $ 42 | $ 23.1 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10,661,896 | $ 9,258,911 | $ 8,363,700 |
Revenue (as a percent) | 100% | 100% | 100% |
Prime Contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10,143,192 | $ 8,755,628 | $ 7,864,273 |
Revenue (as a percent) | 95% | 95% | 94% |
Sub-contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 518,704 | $ 503,283 | $ 499,427 |
Revenue (as a percent) | 5% | 5% | 6% |
Global Commercial Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 173,247 | $ 231,642 | $ 216,276 |
Revenue (as a percent) | 2% | 3% | 3% |
Total U.S. government | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10,488,649 | $ 9,027,269 | $ 8,147,424 |
Revenue (as a percent) | 98% | 97% | 97% |
Total U.S. government | Defense Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,055,779 | $ 4,228,110 | $ 3,965,590 |
Revenue (as a percent) | 47% | 45% | 47% |
Total U.S. government | Intelligence Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,774,405 | $ 1,686,622 | $ 1,573,216 |
Revenue (as a percent) | 17% | 18% | 19% |
Total U.S. government | Civil Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,658,465 | $ 3,112,537 | $ 2,608,618 |
Revenue (as a percent) | 34% | 34% | 31% |
Cost-reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 5,873,045 | $ 4,908,451 | $ 4,514,262 |
Revenue (as a percent) | 55% | 53% | 54% |
Time-and-materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,530,366 | $ 2,296,965 | $ 2,017,094 |
Revenue (as a percent) | 24% | 25% | 24% |
Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,258,485 | $ 2,053,495 | $ 1,832,344 |
Revenue (as a percent) | 21% | 22% | 22% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue, amount of remaining performance obligation | $ 8,700 | $ 7,900 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with customer, liability, revenue recognized | 17.2 | 24.4 | $ 14.9 |
Provision (benefit) for credit losses | $ (0.3) | $ (2) | $ (1.5) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation (as per percent) | 70% | ||
Remaining performance obligation, expected timing, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation (as per percent) | 80% | ||
Remaining performance obligation, expected timing, period | 24 months |
Revenue - Summary of Contract B
Revenue - Summary of Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Accounts receivable–billed | $ 700,066 | $ 551,666 |
Accounts receivable–unbilled (contract assets) | 1,347,577 | 1,223,482 |
Allowance for credit losses | (301) | (318) |
Accounts receivable, net | 2,047,342 | 1,774,830 |
Accounts receivable–unbilled (contract assets) | 57,355 | 59,455 |
Total accounts receivable, net | 2,104,697 | 1,834,285 |
Other current liabilities | ||
Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) | $ 15,527 | $ 18,995 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Earnings for basic computations | $ 600,740 | $ 269,656 | $ 463,626 |
Earnings for diluted computations | $ 600,750 | $ 269,657 | $ 463,635 |
Weighted-average common stock shares outstanding, basic (in shares) | 130,366,501 | 132,161,646 | 134,134,034 |
Dilutive stock options and restricted stock (in shares) | 449,402 | 554,790 | 716,774 |
Weighted-average common stock shares outstanding, diluted (in shares) | 130,815,903 | 132,716,436 | 134,850,808 |
Earnings per share of common share: | |||
Basic (in dollars per share) | $ 4.61 | $ 2.04 | $ 3.46 |
Diluted (in dollars per share) | $ 4.59 | $ 2.03 | $ 3.44 |
Cash dividends paid | $ 253,413 | $ 235,726 | $ 209,057 |
Restricted Stock and Other Awards | |||
Earnings per share of common share: | |||
Unvested shares participating in the payment of the company's dividends declared (in shares) | 1,100,000 | 1,100,000 | 900,000 |
Cash dividends paid | $ 2,100 | $ 1,800 | $ 1,400 |
Undistributed earnings (loss) allocated to participating securities, basic | 2,900 | 300 | 1,700 |
Undistributed earnings (loss) allocated to participating securities, diluted | $ 2,900 | $ 300 | $ 1,700 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 14, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,343,789 | $ 2,338,399 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Business Acquisition [Line Items] | |||||
Equity securities, fair value | 7,600 | ||||
Equity securities gain (loss) | $ (7,600) | $ 8,900 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | MENA business | |||||
Business Acquisition [Line Items] | |||||
Gain on disposition of business | $ 31,200 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | MTS Business | |||||
Business Acquisition [Line Items] | |||||
Gain on disposition of business | $ 4,600 | ||||
EverWatch | |||||
Business Acquisition [Line Items] | |||||
Cash consideration (gross of cash acquired) | $ 445,074 | ||||
Intangible assets | $ 108,600 | ||||
Useful life (in years) | 14 years | ||||
Goodwill | $ 330,898 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 14, 2022 | Mar. 31, 2024 | Mar. 31, 2023 |
Purchase price allocation: | |||
Goodwill | $ 2,343,789 | $ 2,338,399 | |
EverWatch | |||
Business Acquisition [Line Items] | |||
Cash consideration (gross of cash acquired) | $ 445,074 | ||
Purchase price allocation: | |||
Cash | 4,779 | ||
Current assets | 27,725 | ||
Operating lease right-of-use asset | 7,894 | ||
Other long-term assets | 5,078 | ||
Intangible assets | 108,600 | ||
Deferred tax liabilities | (20,394) | ||
Current liabilities | (11,612) | ||
Operating lease liabilities - short-term | (1,362) | ||
Operating lease liabilities - long-term | (6,532) | ||
Total fair value of identifiable net assets acquired | 114,176 | ||
Goodwill | $ 330,898 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2024 | Jan. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 2,343,789,000 | $ 2,338,399,000 | ||||
Goodwill impairment | $ 0 | $ 0 | 0 | 0 | $ 0 | |
Impairment charge on intangibles | 0 | 0 | 0 | |||
Amortization of intangible assets | 93,300,000 | $ 94,300,000 | $ 76,200,000 | |||
Ever Watch | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 5,400,000 | |||||
Initial accounting incomplete, adjustment, intangibles | $ 7,900,000 | |||||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 2 years | |||||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 14 years | |||||
Software | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 1 year | |||||
Software | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life (in years) | 10 years | |||||
Trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment charge on intangibles | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | $ 738,179 | $ 733,946 |
Accumulated Amortization | 327,336 | 238,531 |
Net Carrying Value | 410,843 | 495,415 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets, gross | 928,379 | 924,146 |
Net Carrying Value | 601,043 | 685,615 |
Trade name | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Unamortizable intangible assets | 190,200 | 190,200 |
Programs and contract assets, channel relationships, and other amortizable intangible assets | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | 591,895 | 599,794 |
Accumulated Amortization | 237,764 | 169,316 |
Net Carrying Value | 354,131 | 430,478 |
Software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | 146,284 | 134,152 |
Accumulated Amortization | 89,572 | 69,215 |
Net Carrying Value | $ 56,712 | $ 64,937 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 | $ 82,085 | |
2026 | 70,883 | |
2027 | 58,885 | |
2028 | 50,833 | |
2029 | 43,315 | |
Thereafter | 104,842 | |
Net Carrying Value | $ 410,843 | $ 495,415 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 499,410 | $ 489,112 | |
Less: Accumulated depreciation and amortization | (311,131) | (293,926) | |
Property and equipment, net | 188,279 | 195,186 | |
Depreciation and amortization expense related to property and equipment | 70,900 | 71,200 | $ 69,500 |
Reduction to gross cost and accumulated depreciation for zero net book value assets | 36,300 | 24,700 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 121,544 | 119,316 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 107,902 | 111,538 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 269,964 | $ 258,258 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Payables and Accruals [Abstract] | ||||
Vendor payables | $ 653,131 | $ 597,808 | ||
Accrued expenses | 397,539 | 718,832 | ||
Total accounts payable and other accrued expenses | 1,050,670 | 1,316,640 | ||
U.S. Department of Justice | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 377,500 | 350,000 | ||
Payments for legal settlements | $ 350,000 | |||
Unfavorable Regulatory Action | Claimed Indirect Costs | ||||
Loss Contingencies [Line Items] | ||||
Provision for claimed indirect costs | $ 363,700 | $ 326,700 |
Accrued Compensation and Bene_3
Accrued Compensation and Benefits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Compensation Related Costs [Abstract] | ||
Bonus | $ 151,063 | $ 120,023 |
Retirement | 57,465 | 52,480 |
Vacation | 223,385 | 203,627 |
Other | 74,217 | 69,075 |
Total accrued compensation and benefits | $ 506,130 | $ 445,205 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Less: Unamortized debt issuance costs and discount on debt | $ (26,309) | $ (17,230) |
Total | 3,411,816 | 2,812,145 |
Less: Current portion of long-term debt | (61,875) | (41,250) |
Long-term debt, net of current portion | 3,349,941 | $ 2,770,895 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 1,588,125 | |
Term Loan A | Term Loans | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.677% | 5.97% |
Outstanding Balance | $ 1,588,125 | $ 1,629,375 |
Senior Notes due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.875% | 3.875% |
Outstanding Balance | $ 700,000 | $ 700,000 |
Senior Notes due 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4% | 4% |
Outstanding Balance | $ 500,000 | $ 500,000 |
Senior Notes due 2033 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.95% | 0% |
Outstanding Balance | $ 650,000 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||||
May 04, 2023 | Sep. 07, 2022 | Jun. 17, 2021 | Aug. 24, 2020 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Aug. 04, 2023 | |
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facility | $ 500,000,000 | $ 0 | $ 60,000,000 | ||||||
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount of interest rate swaps | 550,000,000 | ||||||||
Term Loans | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate, adjustment | 0.10% | ||||||||
Variable rate, floor | 0% | ||||||||
Term Loans | SOFR | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 1% | ||||||||
Term Loans | SOFR | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 2% | ||||||||
Term Loans | Overnight Federal Funds Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 0.50% | ||||||||
Term Loans | Three-month Term SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate, adjustment | 0.10% | ||||||||
Variable rate, floor | 0% | ||||||||
Long-term debt, basis spread on variable rate | 1% | ||||||||
Term Loans | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facility | 500,000,000 | ||||||||
Repayments of lines of credit | $ 500,000,000 | ||||||||
Revolving credit facility, amount outstanding | 0 | $ 0 | |||||||
Term Loans | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | 200,000,000 | ||||||||
Term Loan A | Term Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | 1,588,100,000 | ||||||||
Term Loan A | Term Loans | Base Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 0% | ||||||||
Term Loan A | Term Loans | Base Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 1% | ||||||||
Term Loan A | Term Loans | Before Two Year Anniversary | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument (as a percent) | 0.625% | ||||||||
Term Loan A | Term Loans | After Two Year But Before Five Year Anniversary | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument (as a percent) | 1.25% | ||||||||
Secured Credit Facility | Term Loans | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||
Revolving Commitments | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee (as a percent) | 0.10% | ||||||||
Revolving Commitments | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee (as a percent) | 0.35% | ||||||||
Senior Notes due 2033 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument (as a percent) | 5.95% | ||||||||
Face amount of debt | $ 650,000,000 | ||||||||
Senior Notes due 2033 | Senior Notes | Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100% | ||||||||
Senior Notes due 2033 | Senior Notes | Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100% | ||||||||
Senior Notes due 2033 | Senior Notes | Treasury Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, basis spread on variable rate | 0.35% | ||||||||
Senior Notes due 2029 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument (as a percent) | 4% | ||||||||
Face amount of debt | $ 500,000,000 | ||||||||
Redemption price (as a percent) | 104% | ||||||||
Percentage of principal amount outstanding (as a percent) | 50% | ||||||||
Redemption of principal, redemption period | 180 days | ||||||||
Senior Notes due 2029 | Senior Notes | Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 102% | ||||||||
Senior Notes due 2029 | Senior Notes | Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 101% | ||||||||
Senior Notes due 2029 | Senior Notes | Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100% | ||||||||
Redemption price (as a percent) | 40% | ||||||||
Senior Notes due 2029 | Senior Notes | Period Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100% | ||||||||
Senior Notes due 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument (as a percent) | 3.875% | 3.875% | |||||||
Face amount of debt | $ 700,000,000 | ||||||||
Senior Notes due 2028 | Senior Notes | Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 101.938% | ||||||||
Senior Notes due 2028 | Senior Notes | Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100.969% | ||||||||
Senior Notes due 2028 | Senior Notes | Period Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption of principal amount (as a percent) | 100% |
Debt - Schedule of Interest Pay
Debt - Schedule of Interest Payment (Details) - Term Loans - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Interest payments | $ 27,027 | $ 24,233 | $ 107,286 | $ 68,453 |
Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Interest payments | 27,027 | 24,233 | 107,286 | 63,244 |
Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Interest payments | $ 0 | $ 0 | $ 0 | $ 5,209 |
Debt - Schedule of Material Ter
Debt - Schedule of Material Terms of Senior Notes (Details) - Senior Notes - USD ($) | Mar. 31, 2024 | Aug. 04, 2023 | Jun. 17, 2021 | Aug. 24, 2020 |
Senior Notes due 2033 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 650,000,000 | |||
Interest Rate | 5.95% | |||
Issuance Costs | $ 12,400,000 | |||
Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 500,000,000 | |||
Interest Rate | 4% | |||
Issuance Costs | $ 6,500,000 | |||
Senior Notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 700,000,000 | |||
Interest Rate | 3.875% | 3.875% | ||
Issuance Costs | $ 9,200,000 |
Debt - Schedule of Future Debt
Debt - Schedule of Future Debt Principal Repayments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Interest on indebtedness | ||
Total | $ 942,804 | |
2025 | 192,101 | |
2026 | 187,040 | |
2027 | 181,454 | |
2028 | 125,934 | |
2029 | 72,237 | |
Thereafter | 184,038 | |
Total | ||
Total | 4,380,929 | |
2025 | 253,976 | |
2026 | 269,540 | |
2027 | 263,954 | |
2028 | 1,487,184 | |
2029 | 772,237 | |
Thereafter | 1,334,038 | |
Term Loan A | ||
Long-term debt, gross | ||
Total | 1,588,125 | |
2025 | 61,875 | |
2026 | 82,500 | |
2027 | 82,500 | |
2028 | 1,361,250 | |
2029 | 0 | |
Thereafter | 0 | |
Senior Notes due 2028 | Senior Notes | ||
Long-term debt, gross | ||
Total | 700,000 | $ 700,000 |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
2029 | 700,000 | |
Thereafter | 0 | |
Senior Notes due 2029 | Senior Notes | ||
Long-term debt, gross | ||
Total | 500,000 | 500,000 |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
2029 | 0 | |
Thereafter | 500,000 | |
Senior Notes due 2033 | Senior Notes | ||
Long-term debt, gross | ||
Total | 650,000 | $ 0 |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
2029 | 0 | |
Thereafter | $ 650,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) | $ 4,920 | $ 4,350 | $ 4,619 |
Interest Rate Swaps | (14,932) | (1,237) | 17,535 |
Other | 891 | 963 | 494 |
Total Interest Expense | 172,901 | 119,850 | 92,352 |
Term Loans | Term Loan A | |||
Debt Instrument [Line Items] | |||
Interest expense on debt | 107,891 | 63,463 | 19,570 |
Term Loans | Term Loan B | |||
Debt Instrument [Line Items] | |||
Interest expense on debt | 0 | 5,186 | 7,207 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense on debt | 1,438 | 0 | 25 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest expense on debt | $ 72,693 | $ 47,125 | $ 42,902 |
Derivatives - Schedule of Outst
Derivatives - Schedule of Outstanding Interest Rate Swap Derivative Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Thousands | Mar. 31, 2024 USD ($) |
Interest Rate Swap 1 | |
Derivative [Line Items] | |
Notional Amount | $ 200,000 |
Interest Rate Swap 2 | |
Derivative [Line Items] | |
Notional Amount | 200,000 |
Interest Rate Swap 3 | |
Derivative [Line Items] | |
Notional Amount | 150,000 |
Interest rate swaps | |
Derivative [Line Items] | |
Notional Amount | $ 550,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Derivative [Line Items] | ||
Estimated amounts to be reclassified over 12 months | $ 8.7 | |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | 8.7 | $ 11.2 |
Other Long-Term Assets | ||
Derivative [Line Items] | ||
Derivative asset | $ 1.6 | 3.5 |
Other Long-Term Liabilities | ||
Derivative [Line Items] | ||
Derivative liability | $ 1.4 |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Gain (Loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification from AOCI, current period, tax | $ 4,000 | $ 300 | $ (4,600) |
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain Recognized in AOCI on Derivatives | 11,794 | 14,919 | 20,352 |
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 14,932 | $ 1,237 | $ (17,535) |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 63,575 | $ 68,620 | $ 69,831 |
Short-term lease cost | 1,211 | 455 | 585 |
Variable lease cost | 12,911 | 11,237 | 11,641 |
Total operating lease costs | $ 77,697 | $ 80,312 | $ 82,057 |
Leases - Future Minimum Obligat
Leases - Future Minimum Obligations for Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2025 | $ 54,337 |
2026 | 61,710 |
2027 | 49,558 |
2028 | 41,357 |
2029 | 18,929 |
Thereafter | 29,948 |
Total future lease payments | 255,839 |
Less: imputed interest | (30,518) |
Total lease liabilities | $ 225,321 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 75,633 | $ 66,529 | $ 76,100 |
Operating lease liabilities arising from obtaining ROU asset | $ 40,151 | $ 16,517 | $ 41,206 |
Weighted average remaining lease term (in years) | 4 years 6 months | 4 years 7 months 6 days | |
Weighted average discount rate | 4.90% | 4.70% |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Current | |||
U.S. Federal | $ 229,234 | $ 354,569 | $ 232,844 |
State and local | 116,751 | 86,947 | 26,333 |
Foreign | 2,635 | 9,120 | 8,486 |
Total current | 348,620 | 450,636 | 267,663 |
Deferred | |||
U.S. Federal | (94,321) | (300,494) | (146,581) |
State and local | (5,990) | (50,318) | 11,781 |
Foreign | (695) | (3,090) | 4,603 |
Total deferred | (101,006) | (353,902) | (130,197) |
Total | $ 247,614 | $ 96,734 | $ 137,466 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at U.S. federal statutory rate | $ 179,197 | $ 77,269 | $ 126,981 |
Increases (reductions) resulting from: | |||
State and local income taxes, net of federal tax | 85,486 | 32,599 | 28,762 |
Foreign income taxes, net of federal tax | (7,932) | 4,765 | 9,243 |
Non-deductible expenses, including non-deductible penalties | 4,867 | 34,825 | 859 |
Excess tax benefits from stock-based compensation | (10,091) | (5,247) | (4,227) |
Research and development and other federal credits | (31,289) | (33,159) | (34,080) |
Executive compensation -162(m) | 6,307 | 4,295 | 3,614 |
Foreign-Derived Intangible Income (FDII) | (13,971) | (15,869) | (9,115) |
Changes in uncertain tax positions (including indirect effects) | 37,592 | (6,498) | 16,938 |
Other | (2,552) | 3,754 | (1,509) |
Total | $ 247,614 | $ 96,734 | $ 137,466 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Receivable and Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Current income tax receivable | $ 47,158 | $ 23,633 |
Long term income tax receivable | 152,474 | 167,821 |
Current income tax payable | $ 11,331 | $ 14,523 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred income tax assets: | ||
Accrued expenses | $ 102,618 | $ 146,945 |
Deferred compensation | 54,314 | 47,931 |
Stock-based compensation | 11,107 | 11,628 |
Pension and postretirement benefits | 34,895 | 28,585 |
Net operating loss and other carryforwards | 9,621 | 16,984 |
Research and development expenditures and indirect effects | 248,147 | 599,381 |
State tax credits | 108 | 11,516 |
Operating lease liabilities | 63,781 | 69,604 |
Other | 10,261 | 9,100 |
Total gross deferred income tax assets | 534,852 | 941,674 |
Less: Valuation allowance | (8,078) | (11,788) |
Total net deferred income tax assets | 526,774 | 929,886 |
Deferred income tax liabilities: | ||
Unbilled receivables | (131,919) | (177,321) |
Intangible assets | (93,207) | (88,858) |
Property and equipment | (25,725) | (34,905) |
Operating lease right-of-use assets | (45,022) | (48,939) |
Other | (3,730) | (6,083) |
Total deferred income tax liabilities | (299,603) | (356,106) |
Net deferred income tax asset | $ 227,171 | $ 573,780 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||||
Net operating losses | $ 9.2 | $ 9.2 | $ 13.7 | ||
Reserves for uncertain tax positions | 115.4 | 115.4 | 552.3 | $ 79.9 | |
Unrecognized tax benefits that would impact effective tax rate | 104.2 | 104.2 | 91.1 | 78.5 | |
Unrecognized tax benefits that decrease deferred tax assets | 1.4 | 1.4 | 3 | ||
Accrued interest and penalties | 7.4 | 2.9 | 1.7 | ||
Income tax reserve, accrued penalties and interest | 13.2 | 13.2 | $ 5.8 | $ 2.9 | |
Income taxes paid | 13.2 | $ 10.5 | |||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating losses | 1.2 | 1.2 | |||
State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating losses | 3.1 | 3.1 | |||
Foreign | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating losses | $ 4.9 | 4.9 | |||
Tax Years 2013-2015 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax assessments | $ 42.7 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Potential Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of the beginning and ending amount of potential tax benefits | |||
Beginning of year | $ 547,885 | $ 78,519 | $ 62,742 |
Increases in prior year position | 40,704 | 0 | 2,620 |
Increases in current year position | 13,352 | 470,881 | 13,530 |
Decreases in prior year position | (473,848) | (1,328) | (373) |
Settlements with taxing authorities | (23,696) | 0 | 0 |
Lapse of statute of limitations | (234) | (187) | 0 |
End of year | $ 104,163 | $ 547,885 | $ 78,519 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Pension, Postretirement and Supplemental Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match (as a percent) | 6% | ||
Employees’ capital accumulation plan, total expense recognized | $ 218.4 | $ 190.5 | $ 176.8 |
Employees’ capital accumulation plan, company-paid contributions | $ 213.3 | $ 185.7 | $ 171.6 |
Officer Medical Plan | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average discount rate for benefit obligation (as a percent) | 5.20% | 4.90% | 3.75% |
Defined benefit plan, unfunded status of plan | $ 127 | $ 105.6 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Postretirement Medical Expense (Details) - Officer Medical Plan - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,100 | $ 6,117 | $ 6,505 |
Interest cost | 5,067 | 4,182 | 4,063 |
Total postretirement medical expense | $ 10,167 | $ 10,299 | $ 10,568 |
Employee Benefit Plans - Health
Employee Benefit Plans - Healthcare Cost Trend Rates (Details) - Officer Medical Plan - Other Postretirement Benefits Plan | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year, Pre 65 | 7.25% | 6.60% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate), Pre 65 | 4.50% | 4.50% |
Health care cost trend rate assumed for next year, Post 65 | 7.50% | 6.80% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate), Post 65 | 4.50% | 4.50% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Change in Plan Assets (Details) - Officer Medical Plan - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of the year | $ 105,585 | $ 113,505 | $ 121,518 |
Service cost | 5,100 | 6,117 | 6,505 |
Interest cost | 5,067 | 4,182 | 4,063 |
Net actuarial loss (gain) | 17,163 | (14,288) | (13,563) |
Benefits paid | (5,927) | (3,931) | (5,018) |
Benefit obligation, end of the year | 126,988 | 105,585 | 113,505 |
Changes in plan assets | |||
Fair value of plan assets, beginning of the year | 0 | 0 | 0 |
Employer contributions | 5,927 | 3,931 | 5,018 |
Benefits paid | (5,927) | (3,931) | (5,018) |
Fair value of plan assets, end of the year | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2025 | $ 5,142 |
2026 | 5,677 |
2027 | 6,117 |
2028 | 6,658 |
2029 | 7,173 |
2030 - 2034 | 42,398 |
Total | $ 73,165 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning of period | $ 992,002 | $ 1,046,721 | $ 1,071,176 |
Other comprehensive (loss) income before reclassifications | (7,346) | 21,665 | 25,326 |
Amounts reclassified from accumulated other comprehensive income | (12,455) | (917) | 13,030 |
Total other comprehensive (loss) income, net of tax | (19,801) | 20,748 | 38,356 |
End of period | 1,046,562 | 992,002 | 1,046,721 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning of period | 29,333 | 8,585 | (29,771) |
Total other comprehensive (loss) income, net of tax | (19,801) | 20,748 | 38,356 |
End of period | 9,532 | 29,333 | 8,585 |
Post-retirement plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning of period | 19,450 | 8,811 | (1,562) |
Other comprehensive (loss) income before reclassifications | (15,989) | 10,644 | 10,294 |
Amounts reclassified from accumulated other comprehensive income | (1,485) | (5) | 79 |
Total other comprehensive (loss) income, net of tax | (17,474) | 10,639 | 10,373 |
End of period | 1,976 | 19,450 | 8,811 |
Other comprehensive income benefit (expense) | 5,500 | 3,800 | 3,600 |
Derivatives designated as cash flow hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning of period | 9,883 | (226) | (28,209) |
Other comprehensive (loss) income before reclassifications | 8,643 | 11,021 | 15,032 |
Amounts reclassified from accumulated other comprehensive income | (10,970) | (912) | 12,951 |
Total other comprehensive (loss) income, net of tax | (2,327) | 10,109 | 27,983 |
End of period | 7,556 | 9,883 | (226) |
Other comprehensive income benefit (expense) | $ (3,200) | $ 3,900 | $ 5,300 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) $ in Thousands, shares in Millions | 12 Months Ended | |||
May 22, 2024 USD ($) | Mar. 31, 2024 USD ($) vote shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock votes per share | vote | 1 | |||
Repurchase of common stock | $ 417,641 | $ 224,451 | $ 419,291 | |
Share repurchase program, remaining authorized repurchase amount | $ 483,200 | |||
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock (in shares) | shares | 3.2 | 2.1 | ||
Repurchase of common stock | $ 372,800 | $ 196,200 | ||
Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, increase in authorized amount | $ 525,000 | |||
Share repurchase program, amount authorized | $ 3,085,000 |
Stockholders_ Equity - Summary
Stockholders’ Equity - Summary of Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | |||
Recurring dividends | $ 253,413 | $ 235,726 | $ 209,057 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-Based Compensation Expense Recognized in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 94,982 | $ 80,272 | $ 69,784 |
Equity Incentive Plan Options | Equity Incentive Plan Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,319 | 2,550 | 1,793 |
Restricted Stock and Other Awards | Restricted Stock and Other Awards | Class A Common Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 93,663 | 77,722 | 67,991 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 43,995 | 43,378 | 36,836 |
General and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 50,987 | $ 36,894 | $ 32,948 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Unrecognized compensation cost | $ 62,298 | $ 50,946 |
Performance period | 5 years |
Stock-based Compensation - Equi
Stock-based Compensation - Equity Incentive Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Oct. 01, 2010 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock | $ 417,641 | $ 224,451 | $ 419,291 | |
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock (in shares) | 3,200,000 | 2,100,000 | ||
Repurchase of common stock | $ 372,800 | $ 196,200 | ||
Equity Incentive Plan Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding, unvested (in shares) | 200,000 | 400,000 | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ 18.45 | $ 15.61 | ||
Stock options outstanding (in shares) | 800,000 | 1,100,000 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 67.98 | $ 60.55 | ||
Restricted stock granted (in shares) | 982,447 | |||
Repurchase of common stock (in shares) | 300,000 | |||
Repurchase of common stock | $ 42,300 | |||
Restricted Stock and Other Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Equity Incentive Plan Options | Equity Incentive Plan Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for future grant (in shares) | 6,000,000 | 7,700,000 | ||
Stock option expiration period | 10 years | |||
Stock option vesting period | 5 years | |||
Restricted Stock and Other Awards | Equity Incentive Plan Options | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of all awards issued | $ 86,200 | $ 70,200 | ||
Restricted Stock and Other Awards | Equity Incentive Plan Options | Director | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 1 year | |||
Restricted Stock and Other Awards | Restricted Stock and Other Awards | Officer | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Stock issued upon conversion (in shares) | 1 | |||
Restricted Stock and Other Awards | Restricted Stock and Other Awards | Director | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Equity Incentive Plan Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Equity Incentive Plan Options | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 1,000,000 | |||
Aggregate fair value of all awards issued | $ 97,200 |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Unrecognized Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Compensation Cost | $ 62,298 | $ 50,946 |
Weighted Average Remaining Period to be Recognized | 5 years | |
Equity Incentive Plan Options | Equity Incentive Plan Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Compensation Cost | $ 2,592 | $ 3,495 |
Weighted Average Remaining Period to be Recognized | 3 years 7 months 6 days | 3 years 8 months 12 days |
Restricted Stock and Other Awards | Restricted Stock and Other Awards | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Compensation Cost | $ 59,706 | $ 47,451 |
Weighted Average Remaining Period to be Recognized | 1 year 8 months 12 days | 1 year 9 months 18 days |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Details) - Equity Incentive Plan Options | 12 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Unvested, beginning balance (in shares) | 1,184,587 |
Granted (in shares) | 982,447 |
Vested (in shares) | 949,651 |
Forfeited (in shares) | 106,720 |
Unvested, ending balance (in shares) | 1,110,663 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 87.08 |
Granted (in dollars per share) | $ / shares | 98.94 |
Vested (in dollars per share) | $ / shares | 90.79 |
Forfeited (in dollars per share) | $ / shares | 96.81 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 93.46 |
Performance Shares | |
Number of Shares | |
Unvested, ending balance (in shares) | 100,000 |
Weighted Average Grant Date Fair Value | |
Performance period | 3 years |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock purchase Plan (Details) shares in Millions | 12 Months Ended | 161 Months Ended |
Mar. 31, 2024 shares | Mar. 31, 2024 shares | |
Equity Incentive Plan Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount for shares repurchased (as a percent) | 5% | |
Shares authorized to be repurchased (in shares) | 10 | 10 |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock issued during period, shares, employee stock purchase plans (in shares) | 0.2 | 3.7 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Assets: | ||
Current derivative instruments | $ 8,713 | $ 11,245 |
Long-term derivative instruments | 1,556 | 3,530 |
Long-term deferred compensation plan asset | 28,957 | 20,090 |
Total Assets | 39,226 | 34,865 |
Liabilities: | ||
Long-term derivative instruments | 1,369 | |
Long-term deferred compensation plan liability | 28,957 | 20,090 |
Total Liabilities | 28,957 | 21,459 |
Level 1 | ||
Assets: | ||
Current derivative instruments | 0 | 0 |
Long-term derivative instruments | 0 | 0 |
Long-term deferred compensation plan asset | 28,957 | 20,090 |
Total Assets | 28,957 | 20,090 |
Liabilities: | ||
Long-term derivative instruments | 0 | |
Long-term deferred compensation plan liability | 28,957 | 20,090 |
Total Liabilities | 28,957 | 20,090 |
Level 2 | ||
Assets: | ||
Current derivative instruments | 8,713 | 11,245 |
Long-term derivative instruments | 1,556 | 3,530 |
Long-term deferred compensation plan asset | 0 | 0 |
Total Assets | 10,269 | 14,775 |
Liabilities: | ||
Long-term derivative instruments | 1,369 | |
Long-term deferred compensation plan liability | 0 | 0 |
Total Liabilities | 0 | 1,369 |
Level 3 | ||
Assets: | ||
Current derivative instruments | 0 | 0 |
Long-term derivative instruments | 0 | 0 |
Long-term deferred compensation plan asset | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term derivative instruments | 0 | |
Long-term deferred compensation plan liability | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents, fair value | $ 554,257 | $ 404,862 |
Money Market Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents, fair value | $ 192,700 | $ 237,800 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Aug. 24, 2020 |
3.875% Senior Notes due 2028 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument (as a percent) | 3.875% | 3.875% | |
4.000% Senior Notes due 2029 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument (as a percent) | 4% | ||
$5.950% Senior Notes due 2033 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument (as a percent) | 5.95% | ||
Carrying Amount | Term Loan A | Term Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | $ 1,588,125 | $ 1,629,375 | |
Carrying Amount | 3.875% Senior Notes due 2028 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 700,000 | 700,000 | |
Carrying Amount | 4.000% Senior Notes due 2029 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 500,000 | 500,000 | |
Carrying Amount | $5.950% Senior Notes due 2033 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 650,000 | 0 | |
Estimated Fair Value | Term Loan A | Term Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 1,582,170 | 1,600,861 | |
Estimated Fair Value | 3.875% Senior Notes due 2028 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 656,677 | 638,540 | |
Estimated Fair Value | 4.000% Senior Notes due 2029 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 465,470 | 451,930 | |
Estimated Fair Value | $5.950% Senior Notes due 2033 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | $ 672,815 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) director | |
Related Party Transaction [Line Items] | |||
Amount of related party transaction | $ 0 | $ 0 | |
Affiliated Entity | Services Performed Under Subcontractor | |||
Related Party Transaction [Line Items] | |||
Number of directors | director | 2 | ||
Amount of related party transaction | $ 70 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 21, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | |||||
Operating income (loss) | $ 1,013,403 | $ 446,848 | $ 685,181 | ||
Net income | $ 605,706 | $ 271,791 | $ 466,740 | ||
Basic (in dollars per share) | $ 4.61 | $ 2.04 | $ 3.46 | ||
Diluted (in dollars per share) | $ 4.59 | $ 2.03 | $ 3.44 | ||
Claimed Indirect Costs | |||||
Concentration Risk [Line Items] | |||||
Decrease in reserve | $ 18,300 | ||||
Claimed Indirect Costs | Unfavorable Regulatory Action | |||||
Concentration Risk [Line Items] | |||||
Provision for claimed indirect costs | 363,700 | $ 326,700 | |||
Claimed Indirect Costs | Revision of Prior Period, Adjustment | |||||
Concentration Risk [Line Items] | |||||
Operating income (loss) | 18,300 | ||||
Net income | $ 13,500 | ||||
Basic (in dollars per share) | $ 0.10 | ||||
Diluted (in dollars per share) | $ 0.10 | ||||
U.S. Department of Justice | |||||
Concentration Risk [Line Items] | |||||
Estimate of possible loss | $ 350,000 | $ 377,500 | |||
U.S. Department of Justice | Minimum | |||||
Concentration Risk [Line Items] | |||||
Estimate of possible loss | 350,000 | ||||
U.S. Department of Justice | Maximum | |||||
Concentration Risk [Line Items] | |||||
Estimate of possible loss | $ 378,000 | ||||
U.S. Department of Justice | Unfavorable Regulatory Action | |||||
Concentration Risk [Line Items] | |||||
Amount awarded to other party | $ 377,500 | ||||
Total U.S. government | Revenue Benchmark | Contracts with U.S. Government Agencies or Other U.S. Government Contractors | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 98% | 97% | 97% | ||
Financial Standby Letter of Credit | |||||
Concentration Risk [Line Items] | |||||
Guarantor obligations, carrying value | $ 4,400 | $ 6,100 | |||
Guarantor obligations, reduction to available borrowings | 1,300 | ||||
Guarantor obligations, facility | 7,500 | ||||
Guarantor obligations, available amount | $ 4,400 | $ 2,700 |
Business Segment Information (D
Business Segment Information (Details) | 12 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Subsequent Events (Details)
Subsequent Events (Details) | May 24, 2024 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends declared per share (in dollars per share) | $ 0.51 |