Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34972 | |
Entity Registrant Name | Booz Allen Hamilton Holding Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2634160 | |
Entity Address, Address Line One | 8283 Greensboro Drive, | |
Entity Address, City or Town | McLean, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 703 | |
Local Phone Number | 902-5000 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | BAH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,190,782 | |
Entity Central Index Key | 0001443646 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 297,664 | $ 554,257 |
Accounts receivable, net | 2,281,581 | 2,047,342 |
Prepaid expenses and other current assets | 121,440 | 137,310 |
Total current assets | 2,700,685 | 2,738,909 |
Property and equipment, net of accumulated depreciation | 185,529 | 188,279 |
Operating lease right-of-use assets | 179,134 | 174,345 |
Intangible assets, net of accumulated amortization | 621,942 | 601,043 |
Goodwill | 2,394,109 | 2,343,789 |
Deferred tax assets | 260,117 | 227,171 |
Other long-term assets | 299,271 | 290,152 |
Total assets | 6,640,787 | 6,563,688 |
Current liabilities: | ||
Current portion of long-term debt | 72,188 | 61,875 |
Accounts payable and other accrued expenses | 1,138,961 | 1,050,670 |
Accrued compensation and benefits | 407,427 | 506,130 |
Operating lease liabilities | 47,340 | 43,187 |
Other current liabilities | 71,022 | 30,328 |
Total current liabilities | 1,736,938 | 1,692,190 |
Long-term debt, net of current portion | 3,330,351 | 3,349,941 |
Operating lease liabilities, net of current portion | 181,049 | 182,134 |
Income tax reserves | 125,332 | 120,237 |
Other long-term liabilities | 183,176 | 172,624 |
Total liabilities | 5,556,846 | 5,517,126 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock, Class A - $0.01 par value - authorized: 600,000,000 shares; issued: 167,705,104 and 167,402,268 shares at June 30, 2024 and March 31, 2024, respectively; outstanding: 129,350,374 and 129,643,123 shares at June 30, 2024 and March 31, 2024, respectively | 1,677 | 1,674 |
Treasury stock, at cost - 38,354,730 and 37,759,145 shares at June 30, 2024 and March 31, 2024 | (2,367,452) | (2,277,546) |
Additional paid-in capital | 940,404 | 908,837 |
Retained earnings | 2,501,909 | 2,404,065 |
Accumulated other comprehensive income | 7,403 | 9,532 |
Total stockholders’ equity | 1,083,941 | 1,046,562 |
Total liabilities and stockholders’ equity | $ 6,640,787 | $ 6,563,688 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Mar. 31, 2024 |
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) | 167,705,104 | 167,402,268 |
Common stock, outstanding (in shares) | 129,350,374 | 129,643,123 |
Treasury stock (in shares) | 38,354,730 | 37,759,145 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 2,941,797 | $ 2,654,486 |
Operating costs and expenses: | ||
Cost of revenue | 1,371,234 | 1,251,916 |
Billable expenses | 944,981 | 812,304 |
General and administrative expenses | 329,289 | 314,001 |
Depreciation and amortization | 41,129 | 41,847 |
Total operating costs and expenses | 2,686,633 | 2,420,068 |
Operating income | 255,164 | 234,418 |
Interest expense | (45,931) | (35,474) |
Other income, net | 5,128 | 1,924 |
Income before income taxes | 214,361 | 200,868 |
Income tax expense | 49,128 | 39,480 |
Net income attributable to common stockholders | $ 165,233 | $ 161,388 |
Earnings per common share (Note 4): | ||
Basic (in dollars per share) | $ 1.27 | $ 1.22 |
Diluted (in dollars per share) | $ 1.27 | $ 1.22 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 165,233 | $ 161,388 |
Other comprehensive income, net of tax: | ||
Change in unrealized gain (loss) on derivatives designated as cash flow hedges | (2,240) | 3,741 |
Change in postretirement plan costs | 111 | (383) |
Total other comprehensive income (loss), net of tax | (2,129) | 3,358 |
Comprehensive income attributable to common stockholders | $ 163,104 | $ 164,746 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Cash flows from operating activities | |||
Net income | $ 165,233 | $ 161,388 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 41,129 | 41,847 | |
Noncash lease expense | 12,450 | 13,610 | |
Stock-based compensation expense | 19,928 | 17,685 | |
Amortization of debt issuance costs | 1,351 | 1,027 | |
Net losses on dispositions, and other | 1,169 | 1,208 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (217,089) | (325,363) | |
Deferred income taxes and income taxes receivable / payable | 44,086 | 31,509 | |
Prepaid expenses and other current and long-term assets | (26,692) | (10,217) | |
Accrued compensation and benefits | (76,124) | (56,738) | |
Accounts payable and other accrued expenses | 90,203 | 74,389 | |
Other current and long-term liabilities | (3,516) | (21,877) | |
Net cash provided by (used in) operating activities | 52,128 | (71,532) | |
Cash flows from investing activities | |||
Purchases of property, equipment, and software | (32,442) | (10,488) | |
Payments for business acquisitions and dispositions, net of cash acquired | (92,541) | (406) | |
Payments for cost method investments | (2,344) | (4,160) | |
Net cash used in investing activities | (127,327) | (15,054) | |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 8,613 | 6,925 | |
Stock option exercises | 3,029 | 11,176 | |
Repurchases of common stock | (116,289) | (128,390) | |
Cash dividends paid | (66,434) | (63,034) | |
Proceeds from revolving credit facility | 0 | 75,000 | |
Repayments on revolving credit facility, term loans, and Senior Notes | (10,313) | (10,313) | |
Net cash used in financing activities | (181,394) | (108,636) | |
Net decrease in cash and cash equivalents | (256,593) | (195,222) | |
Cash and cash equivalents––beginning of period | 554,257 | 404,862 | $ 404,862 |
Cash and cash equivalents––end of period | 297,664 | 209,640 | $ 554,257 |
Net cash paid during the period for: | |||
Interest | 26,792 | 26,091 | |
Income taxes | (52) | 2,868 | |
Supplemental disclosures of non-cash investing activities: | |||
Unpaid property, equipment and software purchases | $ 7,893 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED 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) | ||
Beginning of period (in shares) at Mar. 31, 2023 | 165,872,332 | ||||||||
Beginning of period at Mar. 31, 2023 | $ 992,002 | $ 1,659 | $ (1,859,905) | $ 769,460 | $ 2,051,455 | $ 29,333 | |||
Beginning of period (in shares) at Mar. 31, 2023 | (34,234,744) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock (in shares) | 396,569 | ||||||||
Issuance of common stock | 6,925 | $ 4 | 6,921 | ||||||
Stock options exercised (in shares) | 252,382 | ||||||||
Stock options exercised | 11,176 | $ 2 | 11,174 | ||||||
Repurchase of common stock (in shares) | (1,000,000) | (1,170,169) | [1] | ||||||
Repurchase of common stock | (112,981) | [1] | $ (100,100) | $ (112,981) | [1] | ||||
Net income | 161,388 | 161,388 | |||||||
Other comprehensive (loss) income, net of tax | 3,358 | 3,358 | |||||||
Dividends paid | (62,482) | (62,482) | |||||||
Stock-based compensation expense | 17,685 | 17,685 | |||||||
End of period (in shares) at Jun. 30, 2023 | 166,521,283 | ||||||||
End of period at Jun. 30, 2023 | $ 1,017,071 | $ 1,665 | $ (1,972,886) | 805,240 | 2,150,361 | 32,691 | |||
End of period (in shares) at Jun. 30, 2023 | (35,404,913) | ||||||||
Beginning of period (in shares) at Mar. 31, 2024 | 129,643,123 | 167,402,268 | |||||||
Beginning of period at Mar. 31, 2024 | $ 1,046,562 | $ 1,674 | $ (2,277,546) | 908,837 | 2,404,065 | 9,532 | |||
Beginning of period (in shares) at Mar. 31, 2024 | (37,759,145) | (37,759,145) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock (in shares) | 236,588 | ||||||||
Issuance of common stock | $ 8,613 | $ 2 | 8,611 | ||||||
Stock options exercised (in shares) | 66,248 | ||||||||
Stock options exercised | 3,029 | $ 1 | 3,028 | ||||||
Repurchase of common stock (in shares) | (500,000) | (595,585) | [2] | ||||||
Repurchase of common stock | (89,906) | [2] | $ (78,300) | $ (89,906) | [2] | ||||
Net income | 165,233 | 165,233 | |||||||
Other comprehensive (loss) income, net of tax | (2,129) | (2,129) | |||||||
Dividends paid | (67,389) | (67,389) | |||||||
Stock-based compensation expense | $ 19,928 | 19,928 | |||||||
End of period (in shares) at Jun. 30, 2024 | 129,350,374 | 167,705,104 | |||||||
End of period at Jun. 30, 2024 | $ 1,083,941 | $ 1,677 | $ (2,367,452) | $ 940,404 | $ 2,501,909 | $ 7,403 | |||
End of period (in shares) at Jun. 30, 2024 | (38,354,730) | (38,354,730) | |||||||
[1]During the three months ended June 30, 2023, the Company purchased 1.0 million shares of the Company’s Class A Common Stock in a series of open market transactions for $100.1 million. Additionally, the Company repurchased shares for $12.9 million during the three months ended June 30, 2023 to cover the minimum statutory taxes on repurchases and restricted stock units that vested on various dates during the period.[2]During the three months ended June 30, 2024, the Company purchased 0.5 million shares of the Company’s Class A Common Stock in a series of open market transactions for $78.3 million. Additionally, the Company repurchased shares for $11.6 million during the three months ended June 30, 2024 to cover the minimum statutory taxes on repurchases and restricted stock units that vested on various dates during the period. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | |||
Dividends paid (in dollars per share) | $ 0.51 | $ 0.47 | ||
Repurchase of common stock, value | $ 89,906 | [1] | $ 112,981 | [2] |
Repurchase of shares to cover tax withholding on restricted stock units that vested | $ 11,600 | $ 12,900 | ||
Class A Common Stock | ||||
Repurchase of common stock (in shares) | 0.5 | 1 | ||
Repurchase of common stock, value | $ 78,300 | $ 100,100 | ||
[1]During the three months ended June 30, 2024, the Company purchased 0.5 million shares of the Company’s Class A Common Stock in a series of open market transactions for $78.3 million. Additionally, the Company repurchased shares for $11.6 million during the three months ended June 30, 2024 to cover the minimum statutory taxes on repurchases and restricted stock units that vested on various dates during the period.[2]During the three months ended June 30, 2023, the Company purchased 1.0 million shares of the Company’s Class A Common Stock in a series of open market transactions for $100.1 million. Additionally, the Company repurchased shares for $12.9 million during the three months ended June 30, 2023 to cover the minimum statutory taxes on repurchases and restricted stock units that vested on various dates during the period. |
Business Overview
Business Overview | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview Booz Allen Hamilton Holding Corporation, including its wholly owned subsidiaries, or the Company, we, us, and our, was incorporated in Delaware in May 2008. The Company provides management and technology consulting, analytics, engineering, digital solutions, mission operations, cyber services and artificial intelligence 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 35,100 employees as of June 30, 2024. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed 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 (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K for the year ended March 31, 2024. The interim period unaudited condensed consolidated financial statements are presented as described below. Certain information and disclosures normally required for annual financial statements have been condensed or omitted pursuant to GAAP and SEC rules and regulations. In the opinion of management, all adjustments considered necessary for fair presentation of the results of the interim periods presented have been included. The Company’s fiscal year ends on March 31 and, unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended March 31. The results of operations for the three months ended June 30, 2024 are not necessarily indicative of results to be expected for the full fiscal year. The condensed consolidated financial statements and notes of the Company include its subsidiaries, and other entities over which the Company has a controlling financial interest or where the Company is a primary beneficiary. Certain amounts reported in the Company's prior fiscal year condensed consolidated financial statements have been reclassified to conform to the current fiscal year presentation. 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 unaudited condensed and 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 accounted for under the measurement alternative. As of June 30, 2024 and March 31, 2024, respectively, the total of equity and other investments related to unconsolidated entities included in other long term assets of the Company’s condensed consolidated balance sheet were $44.4 million and $42.0 million . Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and 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. Recent Accounting Pronouncements Not Yet Adopted |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company's revenues from contracts with customers (clients) are derived from offerings that include management and technology consulting services, analytics, digital solutions, engineering, mission operations, cyber services and artificial intelligence, 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, which include cost-reimbursable contracts, time-and-materials contracts, and fixed-price contracts. Contract Estimates We recognize revenue for many of our contracts 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 the completion of our performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized on a cumulative catch-up basis in the period when such changes are determinable and reasonably estimable. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For each of the three months ended June 30, 2024 and 2023, the aggregate impact of adjustments in contract estimates was not material. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by contract type 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: The Company performs and generates revenue under the following three basic types of contracts: • Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee. • Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates. • Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss. The table below presents the total revenue for each type of contract: Three Months Ended 2024 2023 Cost-reimbursable $ 1,659,923 56 % $ 1,450,184 55 % Time-and-materials 670,568 23 % 635,733 24 % Fixed-price 611,306 21 % 568,569 21 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % Revenue by Customer Type: Three Months Ended 2024 2023 Defense Clients $ 1,416,870 48 % $ 1,224,317 46 % Intelligence Clients 461,039 16 % 476,497 18 % Civil Clients (1) 1,063,888 36 % 953,672 36 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % (1) As of the first quarter of fiscal 2025, Civil Clients includes revenue from Global Commercial Clients, which was previously separately reported. Prior periods’ revenues have been recast to reflect the change. Revenue by Whether the Company Acts as a Prime Contractor or a Subcontractor: Three Months Ended 2024 2023 Prime Contractor $ 2,807,685 95 % $ 2,517,558 95 % Subcontractor 134,112 5 % 136,928 5 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % Performance Obligations Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations 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. As of June 30, 2024 and March 31, 2024, the Company had $9.6 billion and $8.7 billion of remaining performance obligations, respectively. We expect to recognize approximately 70% of the remaining performance obligations at June 30, 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 Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-material contracts are typically billed to the customer at periodic intervals (e.g., monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections 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 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 condensed 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. Provision for credit losses recognized was not material for each of the three months ended June 30, 2024 and 2023. The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s condensed consolidated balance sheets: June 30, March 31, Current assets Accounts receivable–billed $ 847,174 $ 700,066 Accounts receivable–unbilled (contract assets) 1,434,759 1,347,577 Allowance for credit losses (352) (301) Accounts receivable, net 2,281,581 2,047,342 Other long-term assets Accounts receivable–unbilled (contract assets) 57,673 57,355 Total accounts receivable, net $ 2,339,254 $ 2,104,697 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 21,966 $ 15,527 Changes in contract assets and contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. For the three |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 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 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, or EPS. Diluted EPS adjusts the weighted average number of shares outstanding to include the dilutive effect of outstanding common stock options and other stock-based awards. The Company currently has outstanding shares of Class A Common Stock. Holders of certain 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 the first quarter of fiscal 2025 and 2024. 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: Three Months Ended 2024 2023 Numerator (1) : Earnings for basic computations $ 164,433 $ 160,146 Earnings for diluted computations $ 164,435 $ 160,149 Denominator: Weighted-average common stock shares outstanding, basic 129,387,052 131,031,979 Dilutive stock options and restricted stock 530,211 498,654 Weighted-average common stock shares outstanding, diluted (2) 129,917,263 131,530,633 Earnings per common share: Basic $ 1.27 $ 1.22 Diluted (2) $ 1.27 $ 1.22 (1) The difference between earnings for basic and diluted computations and net income presented on the condensed consolidated statements of operations is due to undistributed earnings and dividends allocated to the participating securities. There were approximately 0.6 million and 1.0 million shares of participating securities for the three months ended June 30, 2024 and 2023, respectively. (2) The impact of anti-dilutive options excluded from the calculation of EPS was not material during the periods presented. |
Acquisition, Goodwill and Intan
Acquisition, Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisition, Goodwill and Intangible Assets | Acquisition, Goodwill and Intangible Assets Acquisition On June 7, 2024, the Company completed the acquisition of PAR Government Systems Corporation (“PGSC”), a wholly owned subsidiary of PAR Technology Corporation, for approximately $94.8 million, net of post-closing adjustments and incurred transaction costs as part of the acquisition. PGSC was founded in 1985 and headquartered in Rome, New York, and delivers differentiated services and solutions in strategic mission areas, including the provision of real-time communications and mobile situational awareness to maintain battlespace dominance for a range of government customers. The acquisition was funded with cash on hand. As a result of the transaction, PGSC became a wholly owned subsidiary of Booz Allen Hamilton Inc. Under the terms of the purchase agreement, the purchase price is subject to post-closing working capital and other customary adjustments. The final purchase price allocations will be completed after the underlying information has been finalized and agreed upon by the seller and the Company. The acquisition is 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. The preliminary goodwill of $50.3 million is primarily attributable to the expected synergies between the Company and PGSC and PGSC’s specialized workforce and is deductible for tax purposes. The Company preliminarily recognized $33.7 million of intangible assets which consists primarily of contract assets and are being amortized over the estimated useful life of twelve years. The valuation of PGSC’s assets acquired and liabilities assumed are preliminary and based on valuation estimates and assumptions. Although the Company does not currently expect material changes to the initial value of net assets acquired, the Company continues to evaluate assumptions related to the valuation of the assets acquired and liabilities assumed. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Goodwill As of June 30, 2024 and March 31, 2024, goodwill was $2,394.1 million and $2,343.8 million, respectively. The $50.3 million increase in the carrying amount of goodwill was attributable the Company's acquisition of PGSC. Intangible Assets Intangible assets consisted of the following: June 30, 2024 March 31, 2024 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 $ 624,664 $ 253,836 $ 370,828 $ 591,895 $ 237,764 $ 354,131 Software 157,438 96,524 60,914 146,284 89,572 56,712 Total amortizable intangible assets $ 782,102 $ 350,360 $ 431,742 $ 738,179 $ 327,336 $ 410,843 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 972,302 $ 350,360 $ 621,942 $ 928,379 $ 327,336 $ 601,043 The $43.9 million increase in the gross carrying amount of intangible assets was primarily attributable the Company's acquisition of PGSC, with the remainder resulting from increases in the Company’s internally developed software. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Expenses | 3 Months Ended |
Jun. 30, 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: June 30, March 31, Vendor payables $ 661,948 $ 653,131 Accrued expenses 477,013 397,539 Total accounts payable and other accrued expenses $ 1,138,961 $ 1,050,670 Accrued expenses consisted primarily of the Company’s provision for claimed indirect costs (approximately $374.8 million and $363.7 million as of June 30, 2024 and March 31, 2024, respectively). See Note 15, “Commitments and Contingencies,” to the condensed consolidated financial statements for further discussion of this item. |
Accrued Compensation and Benefi
Accrued Compensation and Benefits | 3 Months Ended |
Jun. 30, 2024 | |
Compensation Related Costs [Abstract] | |
Accrued Compensation and Benefits | Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following: June 30, March 31, Bonus $ 30,889 $ 151,063 Retirement 86,976 57,465 Vacation 244,576 223,385 Other 44,986 74,217 Total accrued compensation and benefits $ 407,427 $ 506,130 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following on the dates below: June 30, 2024 March 31, 2024 Interest Outstanding Interest Outstanding Term Loan A 6.679 % $ 1,577,813 6.677 % $ 1,588,125 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 5.950 % 650,000 Less: Unamortized debt issuance costs and discount on debt (25,274) (26,309) Total 3,402,539 3,411,816 Less: Current portion of long-term debt (72,188) (61,875) Long-term debt, net of current portion $ 3,330,351 $ 3,349,941 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 June 30, 2024, the Credit Agreement provided Booz Allen Hamilton with a $1,577.8 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 June 30, 2024, the maturity date of Term Loan A and the Revolving Commitments is September 7, 2027. Voluntary prepayments of 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 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 the first quarter of fiscal 2024, we borrowed $75.0 million on our Revolving Credit Facility for working capital needs, which was subsequently repaid in the second quarter of fiscal 2024. There were no borrowings during the first quarter of fiscal 2025 and as of June 30, 2024 and March 31, 2024, 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 June 30, 2024, The Company 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 a portion of the Company’s floating rate borrowings under the Credit Agreement. The Company's objectives in using cash flow hedges are to reduce volatility due to interest rate movements and to add stability to interest expense (See Note 9, “ Derivatives, ” to our condensed consolidated financial statements). Interest payments made on the Company ’ s term loan during the quarter ended June 30, 2024 and 2023, respectively, were $26.8 million and $26.1 million. 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, specifically the consolidated net total leverage ratio. As of June 30, 2024 and March 31, 2024, Booz Allen Hamilton was in compliance with all financial covenants associated with its debt and debt-like instruments. Senior Notes The following table summarizes the material terms of the Company’s Senior Notes as of June 30, 2024: Indenture Date Principal Interest Rate Maturity Date Interest Payable Issuance Costs Senior Notes due 2033 8/4/2023 $ 650,000 5.950% 8/4/2033 February and August 4 $ 12,400 Senior Notes due 2029 6/17/2021 500,000 4.000% 7/1/2029 July and January 1 6,500 Senior Notes due 2028 8/24/2020 700,000 3.875% 9/1/2028 March and September 1 9,200 Total $ 1,850,000 $ 28,100 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. For further information on the Senior Notes, including terms, conditions, restrictions and redemption options, see Note 10, “Debt,” of the Company’s consolidated financial statements included in the fiscal 2024 Annual Report on Form 10-K. All 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. The Senior Notes due 2033 are fully and unconditionally guaranteed on an unsecured and unsubordinated basis by Booz Allen Hamilton Holding Corporation, pursuant to the relevant indenture. Interest Expense Interest expense consisted of the following: Three Months Ended 2024 2023 (In thousands) Term Loan A 26,789 26,103 Revolving Credit Facility — 17 Senior Notes 21,450 11,781 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 1,351 1,027 Interest Rate Swaps (3,760) (3,568) Other 101 114 Total Interest Expense $ 45,931 $ 35,474 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the condensed consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company’s Revolving Credit Facility is recorded as a long-term asset on the condensed consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives
Derivatives | 3 Months Ended |
Jun. 30, 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 June 30, 2024: Effective Date Maturity Date Terms Notional Amount April 28, 2023 June 30, 2025 Variable to Fixed $ 200,000 June 30, 2023 June 30, 2026 Variable to Fixed 150,000 June 28, 2024 June 30, 2027 Variable to Fixed 200,000 Total $ 550,000 The floating-to-fixed interest rate swaps involve the exchange of variable interest amounts from a counterparty for the Company making fixed-rate interest payments over the life of the agreements without exchange of the underlying notional amount and effectively convert a portion of the variable rate debt into fixed interest rate debt. Derivative instruments are recorded in the condensed consolidated balance sheet on a gross basis at estimated fair value. As of June 30, 2024, $8.3 million, $0.6 million and $1.7 million were classified as other current assets, other long-term assets and other long-term liabilities, respectively, on the condensed consolidated balance sheet. 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 condensed consolidated balance sheet. For interest rate swaps designated as cash flow hedges, the changes in the fair value of derivatives are recorded in Accumulated Other Comprehensive Income (“AOCI”), net of taxes, and are subsequently reclassified into interest expense, net in the period that the hedged forecasted interest payments are made on the Company's variable-rate debt. The effect of derivative instruments on the accompanying condensed consolidated financial statements for the periods presented is as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivatives Pre-Tax Gain Recognized in AOCI on Derivatives Pre-Tax Gain Reclassified from AOCI into Income Three Months Ended Three Months Ended 2024 2023 2024 2023 Interest rate swaps Interest expense $ 739 $ 8,599 $ 3,760 $ 3,568 Over the next 12 months, the Company estimates that $8.3 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 condensed consolidated statement of cash flows. The Company is subject to counterparty risk in connection with its interest rate swap derivative contracts. Credit risk related to a derivative financial instrument represents the possibility that the counterparty will not fulfill the terms of the contract. The Company mitigates this credit risk by entering into agreements with credit-worthy counterparties, diversifying across multiple counterparties, and regularly reviewing credit exposure and the creditworthiness of each counterparty. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rates were 22.9% and 19.7% for the three months ended June 30, 2024 and 2023, respectively. Our effective tax rates for these periods differ from the federal statutory rate of 21.0% primarily due to the inclusion of state and foreign income taxes and permanent rate differences, which are predominantly related to certain executive compensation and the accrual of reserves for uncertain tax positions, offset by research and development tax credits, excess tax benefits for employee share-based compensation, and the Foreign Derived Intangible Income deduction. As of June 30, 2024 and March 31, 2024 the Company recorded $120.0 million and $115.4 million, respectively, of reserves for uncertain tax positions primarily related to research and development tax credits. As of June 30, 2024 and March 31, 2024 , the Company has recorded both a current income tax receivable (classified as prepaid expenses and other current assets) and a current income tax payable (classified as other current liabilities) on its condensed consolidated balance sheet. These amounts are reflective of fiscal 2024 and 2025 tax accruals in each U.S. Federal, state, and foreign jurisdiction, as adjusted for estimated payments made to date. In addition, a s of both June 30, 2024 and March 31, 2024, the Company has recorded a long-term income tax receivable of $152.5 million, which 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 condensed 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. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 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. The 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 for matching contributions under the ECAP were $61.7 million and $54.3 million for the three months ended June 30, 2024 and 2023, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income All amounts recorded in other comprehensive income are related to the Company's post-retirement plans and interest rate swaps designated as cash flow hedges. The following table shows the changes in accumulated other comprehensive income, net of tax: Three Months Ended Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ 1,976 $ 7,556 $ 9,532 Other comprehensive income before reclassifications (1) — 548 548 Amounts reclassified from accumulated other comprehensive income (2) 111 (2,788) (2,677) Net current-period other comprehensive income (loss) 111 (2,240) (2,129) End of period $ 2,087 $ 5,316 $ 7,403 (1) Changes in other comprehensive income before reclassification for derivatives designated as cash flow hedges are recorded net of ta x expense of $0.2 million for the three months ended June 30, 2024. The tax impact of other comprehensive income before reclassification for post-retirement plans for the three months ended June 30, 2024 was immaterial. (2) The reclassifications from accumulated other comprehensive income to net income for derivatives designated as cash flow hedges are recorded net of tax expense of $1.0 million for the three months ended June 30, 2024. The tax impact of reclassifications from accumulated other comprehensive income to net income for post-retirement plans for the three months ended June 30, 2024 was immaterial. Three Months Ended Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ 19,450 $ 9,883 $ 29,333 Other comprehensive income before reclassifications (3) — 6,356 6,356 Amounts reclassified from accumulated other comprehensive income (4) (383) (2,615) (2,998) Net current-period other comprehensive (loss) income (383) 3,741 3,358 End of period $ 19,067 $ 13,624 $ 32,691 (3) Changes in other comprehensive income before reclassification for derivatives designated as cash flow hedges are recorded net of tax expense of $2.2 million for the three months ended June 30, 2023. The tax impact of other comprehensive income before reclassification for post-retirement plans for the three months ended June 30, 2023 was immaterial. (4) The reclassifications from accumulated other comprehensive income to net income for derivatives designated as cash flow hedges are recorded net of tax expense of $0.9 million for the three months ended June 30, 2023. The tax impact of reclassifications from accumulated other comprehensive income to net income for post-retirement plans for the three months ended June 30, 2023 was immaterial. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes stock-based compensation expense recognized in the condensed consolidated statements of operations: Three Months Ended 2024 2023 Cost of revenue $ 7,359 $ 7,914 General and administrative expenses 12,569 9,771 Total $ 19,928 $ 17,685 The following table summarizes the total stock-based compensation expense recognized in the condensed consolidated statements of operations by the following types of equity awards, 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: Three Months Ended 2024 2023 Equity Incentive Plan Options $ 248 $ 320 Restricted Stock and other awards 19,680 17,365 Total $ 19,928 $ 17,685 As of June 30, 2024, there was $123.1 million of total unrecognized compensation cost related to unvested stock-based compensation agreements. Absent the effect of forfeiture or acceleration of stock compensation cost for any departures of employees, the following table summarizes the unrecognized compensation cost and the weighted-average period the cost is expected to be amortized (excludes any future award): June 30, 2024 Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized (in years) Equity Incentive Plan Options $ 2,214 3.45 Restricted Stock Awards 120,884 2.04 Total $ 123,098 Equity Incentive Plan During the three months ended June 30, 2024, the Board of Directors granted 0.5 million time-based and performance-based restricted stock units to certain employees of the Company. The aggregate value of these awards was $82.5 million based on the grant date fair value. The performance-based awards granted during the three months ended June 30, 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3). A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The financial instruments measured at fair value in the accompanying condensed consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 8,289 $ — $ 8,289 Long-term derivative instruments (1) — 645 — 645 Long-term deferred compensation plan asset (2) 37,163 — — 37,163 Total Assets $ 37,163 $ 8,934 $ — $ 46,097 Liabilities: Long-term derivative instruments (1) — 1,686 — 1,686 Long-term deferred compensation plan liability (2) 37,163 — — 37,163 Total Liabilities $ 37,163 $ 1,686 $ — $ 38,849 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 (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 9, “ Derivatives, ” to the condensed 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 and liabilities represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our condensed consolidated balance sheets. The fair value of the Company's cash and cash equivalents, which are Level 1 inputs, approximated its carrying value at June 30, 2024 and March 31, 2024. The Company’s cash and cash equivalent balances presented on the accompanying condensed consolidated balance sheets include $98.2 million and $192.7 million of marketable securities in money market funds as of June 30, 2024 and March 31, 2024, 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 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 long-term debt consists of the following: June 30, 2024 March 31, 2024 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Term Loan A $ 1,577,813 $ 1,573,868 $ 1,588,125 $ 1,582,170 3.875% Senior Notes due 2028 700,000 659,785 700,000 656,677 4.000% Senior Notes due 2029 500,000 469,020 500,000 465,470 5.950% Senior Notes due 2033 650,000 667,654 650,000 672,815 For our investments that are measured at fair value on a non-recurring basis, we did not have any material measurement adjustments during the three months ended June 30, 2024, with the exception of the assets and liabilities acquired through our acquisitions (see Note 5, “Acquisition, Goodwill and Intangible Assets,” to the condensed consolidated financial statements). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit and Third-Party Guarantees As of June 30, 2024 and March 31, 2024, 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 $4.8 million and $4.4 million, respectively. These letters of credit and bank guarantees primarily support insurance and bid and performance obligations. At June 30, 2024 and March 31, 2024, respectively, approximately $1.7 million and $1.3 million of these instruments reduced the available borrowings under the Revolving Credit Facility. The remainder is guaranteed under a separate $7.5 million facility of which $4.4 million was available to the Company at both June 30, 2024 and March 31, 2024. Government Contracting Matters - Provision for Claimed Indirect Costs For the three months ended June 30, 2024 and 2023, approximately 99% and 98%, 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. As noted in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024, 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. Management believes it has recorded the appropriate provision for claimed indirect costs for any audit, inquiry, or investigation of which it is aware that may be subject to any reductions and/or penalties. As of June 30, 2024 and March 31, 2024, the Company had recorded liabilities of approximately $374.8 million and $363.7 million, respectively, for estimated adjustments to claimed indirect costs based on its historical DCAA audit results, including the final resolution of such audits with DCMA, 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 both June 30, 2024 and March 31, 2024, there were no material amounts accrued in the condensed consolidated financial statements related to these proceedings as either the amounts are immaterial or the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these matters. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 165,233 | $ 161,388 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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 |
Matthew A. Calderone [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Matthew A. Calderone, our Chief Financial Officer, adopted a new Rule 10b5-1 trading arrangement on June 5, 2024 that will terminate on June 6, 2025. Under the trading arrangement, up to an aggregate of 7,930 shares of common stock are available to be sold by the broker upon reaching pricing targets defined in the trading arrangement. |
Name | Matthew A. Calderone |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 5, 2024 |
Expiration Date | June 6, 2025 |
Arrangement Duration | 366 days |
Aggregate Available | 7,930 |
Nancy J. Laben [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Nancy J. Laben, our Chief Legal Officer, adopted a new Rule 10b5-1 trading arrangement on May 30, 2024 that will terminate on May 30, 2025. Under the trading arrangement, up to an aggregate of 11,984 shares of common stock are available to be sold by the broker upon reaching pricing targets defined in the trading arrangement. |
Name | Nancy J. Laben |
Title | Chief Legal Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 30, 2024 |
Expiration Date | May 30, 2025 |
Arrangement Duration | 365 days |
Aggregate Available | 11,984 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed 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 (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K for the year ended March 31, 2024. The interim period unaudited condensed consolidated financial statements are presented as described below. Certain information and disclosures normally required for annual financial statements have been condensed or omitted pursuant to GAAP and SEC rules and regulations. In the opinion of management, all adjustments considered necessary for fair presentation of the results of the interim periods presented have been included. The Company’s fiscal year ends on March 31 and, unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended March 31. The results of operations for the three months ended June 30, 2024 are not necessarily indicative of results to be expected for the full fiscal year. The condensed consolidated financial statements and notes of the Company include its subsidiaries, and other entities over which the Company has a controlling financial interest or where the Company is a primary beneficiary. Certain amounts reported in the Company's prior fiscal year condensed consolidated financial statements have been reclassified to conform to the current fiscal year presentation. |
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 unaudited condensed and 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 accounted for under the measurement alternative. As of June 30, 2024 and March 31, 2024, respectively, the total of equity and other investments related to unconsolidated entities included in other long term assets of the Company’s condensed consolidated balance sheet were $44.4 million and $42.0 million . |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and 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. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted |
Revenue | The Company's revenues from contracts with customers (clients) are derived from offerings that include management and technology consulting services, analytics, digital solutions, engineering, mission operations, cyber services and artificial intelligence, 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, which include cost-reimbursable contracts, time-and-materials contracts, and fixed-price contracts. Contract Estimates We recognize revenue for many of our contracts 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 the completion of our performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized on a cumulative catch-up basis in the period when such changes are determinable and reasonably estimable. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For each of the three months ended June 30, 2024 and 2023, the aggregate impact of adjustments in contract estimates was not material. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by contract type 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: The Company performs and generates revenue under the following three basic types of contracts: • Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee. • Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates. • Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss. 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. The Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-material contracts are typically billed to the customer at periodic intervals (e.g., monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections result in net contract assets or liabilities being recognized at the end of each reporting period. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below presents the total revenue for each type of contract: Three Months Ended 2024 2023 Cost-reimbursable $ 1,659,923 56 % $ 1,450,184 55 % Time-and-materials 670,568 23 % 635,733 24 % Fixed-price 611,306 21 % 568,569 21 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % Revenue by Customer Type: Three Months Ended 2024 2023 Defense Clients $ 1,416,870 48 % $ 1,224,317 46 % Intelligence Clients 461,039 16 % 476,497 18 % Civil Clients (1) 1,063,888 36 % 953,672 36 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % (1) As of the first quarter of fiscal 2025, Civil Clients includes revenue from Global Commercial Clients, which was previously separately reported. Prior periods’ revenues have been recast to reflect the change. Revenue by Whether the Company Acts as a Prime Contractor or a Subcontractor: Three Months Ended 2024 2023 Prime Contractor $ 2,807,685 95 % $ 2,517,558 95 % Subcontractor 134,112 5 % 136,928 5 % Total Revenue $ 2,941,797 100 % $ 2,654,486 100 % |
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 condensed consolidated balance sheets: June 30, March 31, Current assets Accounts receivable–billed $ 847,174 $ 700,066 Accounts receivable–unbilled (contract assets) 1,434,759 1,347,577 Allowance for credit losses (352) (301) Accounts receivable, net 2,281,581 2,047,342 Other long-term assets Accounts receivable–unbilled (contract assets) 57,673 57,355 Total accounts receivable, net $ 2,339,254 $ 2,104,697 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 21,966 $ 15,527 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 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: Three Months Ended 2024 2023 Numerator (1) : Earnings for basic computations $ 164,433 $ 160,146 Earnings for diluted computations $ 164,435 $ 160,149 Denominator: Weighted-average common stock shares outstanding, basic 129,387,052 131,031,979 Dilutive stock options and restricted stock 530,211 498,654 Weighted-average common stock shares outstanding, diluted (2) 129,917,263 131,530,633 Earnings per common share: Basic $ 1.27 $ 1.22 Diluted (2) $ 1.27 $ 1.22 (1) The difference between earnings for basic and diluted computations and net income presented on the condensed consolidated statements of operations is due to undistributed earnings and dividends allocated to the participating securities. There were approximately 0.6 million and 1.0 million shares of participating securities for the three months ended June 30, 2024 and 2023, respectively. (2) The impact of anti-dilutive options excluded from the calculation of EPS was not material during the periods presented. |
Acquisition, Goodwill and Int_2
Acquisition, Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: June 30, 2024 March 31, 2024 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 $ 624,664 $ 253,836 $ 370,828 $ 591,895 $ 237,764 $ 354,131 Software 157,438 96,524 60,914 146,284 89,572 56,712 Total amortizable intangible assets $ 782,102 $ 350,360 $ 431,742 $ 738,179 $ 327,336 $ 410,843 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 972,302 $ 350,360 $ 621,942 $ 928,379 $ 327,336 $ 601,043 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued expenses consisted of the following: June 30, March 31, Vendor payables $ 661,948 $ 653,131 Accrued expenses 477,013 397,539 Total accounts payable and other accrued expenses $ 1,138,961 $ 1,050,670 |
Accrued Compensation and Bene_2
Accrued Compensation and Benefits (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Compensation Related Costs [Abstract] | |
Schedule of Accrued Compensation and Benefits | Accrued compensation and benefits consisted of the following: June 30, March 31, Bonus $ 30,889 $ 151,063 Retirement 86,976 57,465 Vacation 244,576 223,385 Other 44,986 74,217 Total accrued compensation and benefits $ 407,427 $ 506,130 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following on the dates below: June 30, 2024 March 31, 2024 Interest Outstanding Interest Outstanding Term Loan A 6.679 % $ 1,577,813 6.677 % $ 1,588,125 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 5.950 % 650,000 Less: Unamortized debt issuance costs and discount on debt (25,274) (26,309) Total 3,402,539 3,411,816 Less: Current portion of long-term debt (72,188) (61,875) Long-term debt, net of current portion $ 3,330,351 $ 3,349,941 The following table summarizes the material terms of the Company’s Senior Notes as of June 30, 2024: Indenture Date Principal Interest Rate Maturity Date Interest Payable Issuance Costs Senior Notes due 2033 8/4/2023 $ 650,000 5.950% 8/4/2033 February and August 4 $ 12,400 Senior Notes due 2029 6/17/2021 500,000 4.000% 7/1/2029 July and January 1 6,500 Senior Notes due 2028 8/24/2020 700,000 3.875% 9/1/2028 March and September 1 9,200 Total $ 1,850,000 $ 28,100 |
Schedule of Interest Expense | Interest expense consisted of the following: Three Months Ended 2024 2023 (In thousands) Term Loan A 26,789 26,103 Revolving Credit Facility — 17 Senior Notes 21,450 11,781 Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) 1,351 1,027 Interest Rate Swaps (3,760) (3,568) Other 101 114 Total Interest Expense $ 45,931 $ 35,474 (1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the condensed consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company’s Revolving Credit Facility is recorded as a long-term asset on the condensed consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jun. 30, 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 June 30, 2024: Effective Date Maturity Date Terms Notional Amount April 28, 2023 June 30, 2025 Variable to Fixed $ 200,000 June 30, 2023 June 30, 2026 Variable to Fixed 150,000 June 28, 2024 June 30, 2027 Variable to Fixed 200,000 Total $ 550,000 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivatives Pre-Tax Gain Recognized in AOCI on Derivatives Pre-Tax Gain Reclassified from AOCI into Income Three Months Ended Three Months Ended 2024 2023 2024 2023 Interest rate swaps Interest expense $ 739 $ 8,599 $ 3,760 $ 3,568 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table shows the changes in accumulated other comprehensive income, net of tax: Three Months Ended Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ 1,976 $ 7,556 $ 9,532 Other comprehensive income before reclassifications (1) — 548 548 Amounts reclassified from accumulated other comprehensive income (2) 111 (2,788) (2,677) Net current-period other comprehensive income (loss) 111 (2,240) (2,129) End of period $ 2,087 $ 5,316 $ 7,403 (1) Changes in other comprehensive income before reclassification for derivatives designated as cash flow hedges are recorded net of ta x expense of $0.2 million for the three months ended June 30, 2024. The tax impact of other comprehensive income before reclassification for post-retirement plans for the three months ended June 30, 2024 was immaterial. (2) The reclassifications from accumulated other comprehensive income to net income for derivatives designated as cash flow hedges are recorded net of tax expense of $1.0 million for the three months ended June 30, 2024. The tax impact of reclassifications from accumulated other comprehensive income to net income for post-retirement plans for the three months ended June 30, 2024 was immaterial. Three Months Ended Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of period $ 19,450 $ 9,883 $ 29,333 Other comprehensive income before reclassifications (3) — 6,356 6,356 Amounts reclassified from accumulated other comprehensive income (4) (383) (2,615) (2,998) Net current-period other comprehensive (loss) income (383) 3,741 3,358 End of period $ 19,067 $ 13,624 $ 32,691 (3) Changes in other comprehensive income before reclassification for derivatives designated as cash flow hedges are recorded net of tax expense of $2.2 million for the three months ended June 30, 2023. The tax impact of other comprehensive income before reclassification for post-retirement plans for the three months ended June 30, 2023 was immaterial. (4) The reclassifications from accumulated other comprehensive income to net income for derivatives designated as cash flow hedges are recorded net of tax expense of $0.9 million for the three months ended June 30, 2023. The tax impact of reclassifications from accumulated other comprehensive income to net income for post-retirement plans for the three months ended June 30, 2023 was immaterial. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 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 condensed consolidated statements of operations: Three Months Ended 2024 2023 Cost of revenue $ 7,359 $ 7,914 General and administrative expenses 12,569 9,771 Total $ 19,928 $ 17,685 The following table summarizes the total stock-based compensation expense recognized in the condensed consolidated statements of operations by the following types of equity awards, 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: Three Months Ended 2024 2023 Equity Incentive Plan Options $ 248 $ 320 Restricted Stock and other awards 19,680 17,365 Total $ 19,928 $ 17,685 |
Schedule of Unrecognized Compensation Cost | Absent the effect of forfeiture or acceleration of stock compensation cost for any departures of employees, the following table summarizes the unrecognized compensation cost and the weighted-average period the cost is expected to be amortized (excludes any future award): June 30, 2024 Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized (in years) Equity Incentive Plan Options $ 2,214 3.45 Restricted Stock Awards 120,884 2.04 Total $ 123,098 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The financial instruments measured at fair value in the accompanying condensed consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Current derivative instruments (1) $ — $ 8,289 $ — $ 8,289 Long-term derivative instruments (1) — 645 — 645 Long-term deferred compensation plan asset (2) 37,163 — — 37,163 Total Assets $ 37,163 $ 8,934 $ — $ 46,097 Liabilities: Long-term derivative instruments (1) — 1,686 — 1,686 Long-term deferred compensation plan liability (2) 37,163 — — 37,163 Total Liabilities $ 37,163 $ 1,686 $ — $ 38,849 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 (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 9, “ Derivatives, ” to the condensed 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 and liabilities represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our condensed consolidated balance sheets. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amount and estimated fair value of long-term debt consists of the following: June 30, 2024 March 31, 2024 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Term Loan A $ 1,577,813 $ 1,573,868 $ 1,588,125 $ 1,582,170 3.875% Senior Notes due 2028 700,000 659,785 700,000 656,677 4.000% Senior Notes due 2029 500,000 469,020 500,000 465,470 5.950% Senior Notes due 2033 650,000 667,654 650,000 672,815 |
Business Overview (Details)
Business Overview (Details) | 3 Months Ended |
Jun. 30, 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 | 35,100 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Variable interest entities and other investments | $ 44.4 | $ 42 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,941,797 | $ 2,654,486 |
Revenue from Contract with Customer Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 100% | 100% |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 100% | 100% |
Revenue from Contract with Customer Benchmark | Contractor Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 100% | 100% |
Prime Contractor | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,807,685 | $ 2,517,558 |
Prime Contractor | Revenue from Contract with Customer Benchmark | Contractor Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 95% | 95% |
Subcontractor | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 134,112 | $ 136,928 |
Subcontractor | Revenue from Contract with Customer Benchmark | Contractor Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 5% | 5% |
Defense Clients | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,416,870 | $ 1,224,317 |
Defense Clients | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 48% | 46% |
Intelligence Clients | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 461,039 | $ 476,497 |
Intelligence Clients | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 16% | 18% |
Civil Clients | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,063,888 | $ 953,672 |
Civil Clients | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 36% | 36% |
Cost-reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,659,923 | $ 1,450,184 |
Cost-reimbursable | Revenue from Contract with Customer Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 56% | 55% |
Time-and-materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 670,568 | $ 635,733 |
Time-and-materials | Revenue from Contract with Customer Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 23% | 24% |
Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 611,306 | $ 568,569 |
Fixed-price | Revenue from Contract with Customer Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 21% | 21% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue, amount of remaining performance obligation | $ 9,600 | $ 8,700 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 8.4 | $ 14.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation (as a 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 a percent) | 80% | ||
Remaining performance obligation, expected timing, period | 24 months |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets | ||
Accounts receivable–billed | $ 847,174 | $ 700,066 |
Accounts receivable–unbilled (contract assets) | 1,434,759 | 1,347,577 |
Allowance for credit losses | (352) | (301) |
Accounts receivable, net | 2,281,581 | 2,047,342 |
Other long-term assets | ||
Accounts receivable–unbilled (contract assets) | 57,673 | 57,355 |
Total accounts receivable, net | 2,339,254 | 2,104,697 |
Other current liabilities | ||
Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) | $ 21,966 | $ 15,527 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||
Earnings for basic computations | $ 164,433 | $ 160,146 |
Earnings for diluted computations | $ 164,435 | $ 160,149 |
Weighted-average common stock shares outstanding, basic (in shares) | 129,387,052 | 131,031,979 |
Dilutive stock options and restricted stock (in shares) | 530,211 | 498,654 |
Weighted-average common stock shares outstanding, diluted (in shares) | 129,917,263 | 131,530,633 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.27 | $ 1.22 |
Diluted (in dollars per share) | $ 1.27 | $ 1.22 |
Unvested shares participating in the payment of the company's dividends declared (in shares) | 600,000 | 1,000,000 |
Acquisition, Goodwill and Int_3
Acquisition, Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 10, 2024 | Jun. 07, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,394,109 | $ 2,343,789 | ||
PGSC | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 94,800 | |||
Goodwill | 50,300 | |||
Goodwill, expected tax deductible amount | 50,300 | |||
Finite-lived intangibles | $ 33,700 | |||
Useful life (in years) | 12 years | |||
Initial accounting incomplete, adjustment, intangibles | $ 43,900 |
Acquisition, Goodwill and Int_4
Acquisition, Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | $ 782,102 | $ 738,179 |
Accumulated Amortization | 350,360 | 327,336 |
Net Carrying Value | 431,742 | 410,843 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets, gross | 972,302 | 928,379 |
Intangible assets, net | 621,942 | 601,043 |
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 | 624,664 | 591,895 |
Accumulated Amortization | 253,836 | 237,764 |
Net Carrying Value | 370,828 | 354,131 |
Software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | 157,438 | 146,284 |
Accumulated Amortization | 96,524 | 89,572 |
Net Carrying Value | $ 60,914 | $ 56,712 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Payables and Accruals [Abstract] | ||
Vendor payables | $ 661,948 | $ 653,131 |
Accrued expenses | 477,013 | 397,539 |
Total accounts payable and other accrued expenses | 1,138,961 | 1,050,670 |
Unfavorable Regulatory Action | Claimed Indirect Costs | ||
Loss Contingencies [Line Items] | ||
Provision for claimed indirect costs | $ 374,800 | $ 363,700 |
Accrued Compensation and Bene_3
Accrued Compensation and Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Compensation Related Costs [Abstract] | ||
Bonus | $ 30,889 | $ 151,063 |
Retirement | 86,976 | 57,465 |
Vacation | 244,576 | 223,385 |
Other | 44,986 | 74,217 |
Total accrued compensation and benefits | $ 407,427 | $ 506,130 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Less: Unamortized debt issuance costs and discount on debt | $ (25,274) | $ (26,309) |
Total | 3,402,539 | 3,411,816 |
Less: Current portion of long-term debt | (72,188) | (61,875) |
Long-term debt, net of current portion | $ 3,330,351 | $ 3,349,941 |
Term Loans | Term Loan A | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Interest Rate | 6.679% | 6.677% |
Outstanding Balance | $ 1,577,813 | $ 1,588,125 |
Senior Notes | Senior Notes due 2028 | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Interest Rate | 3.875% | 3.875% |
Outstanding Balance | $ 700,000 | $ 700,000 |
Senior Notes | Senior Notes due 2029 | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Interest Rate | 4% | 4% |
Outstanding Balance | $ 500,000 | $ 500,000 |
Senior Notes | Senior Notes due 2033 | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Interest Rate | 5.95% | 5.95% |
Outstanding Balance | $ 650,000 | $ 650,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | |||
Sep. 07, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||||
Proceeds from revolving credit facility | $ 0 | $ 75,000,000 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||
Debt Instrument [Line Items] | ||||
Notional amount of interest rate swaps | 550,000,000 | |||
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% | |||
Term Loans | 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 | 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 | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Proceeds from revolving credit facility | 0 | 75,000,000 | ||
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 Loans | Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | 1,577,800,000 | |||
Interest payments | 26,800,000 | $ 26,100,000 | ||
Term Loans | Term Loan A | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, basis spread on variable rate | 0% | |||
Term Loans | Term Loan A | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, basis spread on variable rate | 1% | |||
Term Loans | Term Loan A | Before Two Year Anniversary | ||||
Debt Instrument [Line Items] | ||||
Debt instrument (as a percent) | 0.625% | |||
Term Loans | Term Loan A | After Two Year But Before Five Year Anniversary | ||||
Debt Instrument [Line Items] | ||||
Debt instrument (as a percent) | 1.25% | |||
Term Loans | Secured Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 1,000,000,000 |
Debt - Schedule of Material Ter
Debt - Schedule of Material Terms of Senior Notes (Details) - Senior Notes - USD ($) | Aug. 04, 2023 | Jun. 17, 2021 | Aug. 24, 2020 |
Debt Instrument [Line Items] | |||
Principal | $ 1,850,000,000 | ||
Issuance Costs | 28,100,000 | ||
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% | ||
Issuance Costs | $ 9,200,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||
Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) | $ 1,351 | $ 1,027 |
Interest Rate Swaps | (3,760) | (3,568) |
Other | 101 | 114 |
Total Interest Expense | 45,931 | 35,474 |
Term Loans | Term Loan A | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | 26,789 | 26,103 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | 0 | 17 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest expense on debt | $ 21,450 | $ 11,781 |
Derivatives - Schedule of Outst
Derivatives - Schedule of Outstanding Interest Rate Swap Derivative Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Thousands | Jun. 30, 2024 USD ($) |
Interest Rate Swap | |
Derivative [Line Items] | |
Notional Amount | $ 550,000 |
Interest Rate Swap 1 | |
Derivative [Line Items] | |
Notional Amount | 200,000 |
Interest Rate Swap 2 | |
Derivative [Line Items] | |
Notional Amount | 150,000 |
Interest Rate Swap 3 | |
Derivative [Line Items] | |
Notional Amount | $ 200,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Derivative [Line Items] | ||
Estimate of amount to be reclassified over the next 12 months | $ 8.3 | |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | 8.3 | $ 8.7 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative asset | 0.6 | $ 1.6 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative liability | $ 1.7 |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effect of Derivative Instruments (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Pre-Tax Gain Recognized in AOCI on Derivatives | $ 739 | $ 8,599 |
Pre-Tax Gain Reclassified from AOCI into Income | $ 3,760 | $ 3,568 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as a percent) | 22.90% | 19.70% | |
Long-term income tax receivable | $ 152,500 | $ 152,500 | |
Tax Credit Carryforward [Line Items] | |||
Income tax reserves | 125,332 | 120,237 | |
Research and Development Tax Credits | |||
Tax Credit Carryforward [Line Items] | |||
Income tax reserves | $ 120,000 | $ 115,400 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match (as a percent) | 6% | ||
Employees’ capital accumulation plan, total expense recognized | $ 61.7 | $ 54.3 | |
Officer Medical Plan | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, unfunded status of plan | $ 127.5 | $ 127 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning of period | $ 1,046,562 | $ 992,002 |
Other comprehensive income (loss) before reclassifications | 548 | 6,356 |
Amounts reclassified from accumulated other comprehensive income(4) | (2,677) | (2,998) |
Total other comprehensive income (loss), net of tax | (2,129) | 3,358 |
End of period | 1,083,941 | 1,017,071 |
Totals | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning of period | 9,532 | 29,333 |
Total other comprehensive income (loss), net of tax | (2,129) | 3,358 |
End of period | 7,403 | 32,691 |
Post-retirement plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning of period | 1,976 | 19,450 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income(4) | 111 | (383) |
Total other comprehensive income (loss), net of tax | 111 | (383) |
End of period | 2,087 | 19,067 |
Derivatives designated as cash flow hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning of period | 7,556 | 9,883 |
Other comprehensive income (loss) before reclassifications | 548 | 6,356 |
Amounts reclassified from accumulated other comprehensive income(4) | (2,788) | (2,615) |
Total other comprehensive income (loss), net of tax | (2,240) | 3,741 |
End of period | 5,316 | 13,624 |
Tax expense | 200 | 2,200 |
Reclassification from AOCI, current period, tax | $ 1,000 | $ 900 |
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 | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 19,928 | $ 17,685 |
Equity Incentive Plan Options | Equity Incentive Plan Options | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 248 | 320 |
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 | 19,680 | 17,365 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 7,359 | 7,914 |
General and administrative expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 12,569 | $ 9,771 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Incentive Plan (Narrative) (Details) $ in Thousands, shares in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 123,098 |
Equity Incentive Plan Options | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock granted (in shares) | shares | 0.5 |
Fair value of options granted | $ 82,500 |
Performance period | 3 years |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 123,098 |
Equity Incentive Plan Options | Equity Incentive Plan Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 2,214 |
Weighted Average Remaining Period to be Recognized (in years) | 3 years 5 months 12 days |
Restricted Stock and other awards | Restricted Stock Awards | Class A Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 120,884 |
Weighted Average Remaining Period to be Recognized (in years) | 2 years 14 days |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Recurring Fair Value Measurements (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Assets: | ||
Current derivative instruments | $ 8,289 | $ 8,713 |
Long term derivative instruments | 645 | 1,556 |
Long-term deferred compensation plan asset | 37,163 | 28,957 |
Total Assets | 46,097 | 39,226 |
Liabilities: | ||
Long-term derivative instruments | 1,686 | |
Long-term deferred compensation plan liability | 37,163 | 28,957 |
Total Liabilities | 38,849 | 28,957 |
Level 1 | ||
Assets: | ||
Current derivative instruments | 0 | 0 |
Long term derivative instruments | 0 | 0 |
Long-term deferred compensation plan asset | 37,163 | 28,957 |
Total Assets | 37,163 | 28,957 |
Liabilities: | ||
Long-term derivative instruments | 0 | |
Long-term deferred compensation plan liability | 37,163 | 28,957 |
Total Liabilities | 37,163 | 28,957 |
Level 2 | ||
Assets: | ||
Current derivative instruments | 8,289 | 8,713 |
Long term derivative instruments | 645 | 1,556 |
Long-term deferred compensation plan asset | 0 | 0 |
Total Assets | 8,934 | 10,269 |
Liabilities: | ||
Long-term derivative instruments | 1,686 | |
Long-term deferred compensation plan liability | 0 | 0 |
Total Liabilities | 1,686 | 0 |
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 | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents, at fair value | $ 297,664 | $ 554,257 |
Fair Value, Nonrecurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets, fair value adjustment | 0 | |
Liabilities, fair value adjustment | 0 | |
Money Market Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents, at fair value | $ 98,200 | $ 192,700 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
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% | |
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 | $ 1,577,813 | $ 1,588,125 |
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 | 650,000 |
Estimated Fair Value | Term Loan A | Term Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 1,573,868 | 1,582,170 |
Estimated Fair Value | 3.875% Senior Notes due 2028 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 659,785 | 656,677 |
Estimated Fair Value | 4.000% Senior Notes due 2029 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 469,020 | 465,470 |
Estimated Fair Value | 5.950% Senior Notes due 2033 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 667,654 | $ 672,815 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | |
Concentration Risk [Line Items] | ||||||
Operating income (loss) | $ 255,164 | $ 234,418 | ||||
Net income | $ 165,233 | $ 161,388 | ||||
Basic (in dollars per share) | $ 1.27 | $ 1.22 | ||||
Diluted (in dollars per share) | $ 1.27 | $ 1.22 | ||||
Claimed Indirect Costs | ||||||
Concentration Risk [Line Items] | ||||||
Decrease in reserve | $ 18,300 | |||||
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 | |||||
Claimed Indirect Costs | Unfavorable Regulatory Action | ||||||
Concentration Risk [Line Items] | ||||||
Liability for reductions and/or penalties from U.S Government audits | $ 374,800 | $ 363,700 | ||||
U.S. Government Contracts | ||||||
Concentration Risk [Line Items] | ||||||
Liability for reductions and/or penalties from U.S Government audits | $ 0 | 0 | ||||
Contracts with U.S. Government Agencies or Other U.S. Government Contractors | Revenue Benchmark | U.S. | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 99% | 98% | ||||
Financial Standby Letter of Credit | ||||||
Concentration Risk [Line Items] | ||||||
Guarantor obligations, carrying value | $ 4,800 | 4,400 | ||||
Guarantor obligations, reduction to available borrowings | $ 1,700 | $ 1,300 | ||||
Guarantor obligations, facility | 7,500 | 7,500 | ||||
Guarantor obligations, available amount | $ 4,400 | $ 4,400 |