Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CACI INTERNATIONAL INC /DE/ | ' |
Entity Central Index Key | '0000016058 | ' |
Trading Symbol | 'caci | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 23,425,631 |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements Of Operations [Abstract] | ' | ' |
Revenue | $864,265 | $931,236 |
Costs of revenue: | ' | ' |
Direct costs | 601,422 | 645,637 |
Indirect costs and selling expenses | 188,710 | 207,623 |
Depreciation and amortization | 12,951 | 13,239 |
Total costs of revenue | 803,083 | 866,499 |
Income from operations | 61,182 | 64,737 |
Interest expense and other, net | 7,388 | 6,782 |
Income before income taxes | 53,794 | 57,955 |
Income taxes | 20,402 | 21,965 |
Net income including portion attributable to noncontrolling interest in earnings of joint venture | 33,392 | 35,990 |
Noncontrolling interest in earnings of joint venture | -400 | -282 |
Net income attributable to CACI | $32,992 | $35,708 |
Basic earnings per share (in dollars per share) | $1.42 | $1.55 |
Diluted earnings per share (in dollars per share) | $1.33 | $1.49 |
Weighted-average basic shares outstanding (in shares) | 23,314 | 23,032 |
Weighted-average diluted shares outstanding (in shares) | 24,835 | 23,980 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' |
Net income including portion attributable to noncontrolling interest in earnings of joint venture | $33,392 | $35,990 |
Change in foreign currency translation adjustment | 6,796 | 3,545 |
Effect of post-retirement adjustments | 208 | ' |
Change in fair value of interest rate swap agreements | -231 | -590 |
Comprehensive income including portion attributable to noncontrolling interest in earnings of joint venture | 40,165 | 38,945 |
Noncontrolling interest in earnings of joint venture | -400 | -282 |
Comprehensive income attributable to CACI | $39,765 | $38,663 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $102,725 | $64,337 |
Accounts receivable, net | 635,126 | 614,616 |
Deferred income taxes | 7,497 | 18,953 |
Prepaid expenses and other current assets | 32,967 | 25,875 |
Total current assets | 778,315 | 723,781 |
Goodwill | 1,481,671 | 1,476,965 |
Intangible assets, net | 97,681 | 104,188 |
Property and equipment, net | 63,628 | 65,510 |
Supplemental retirement savings plan assets | 84,598 | 83,419 |
Accounts receivable, long-term | 9,961 | 11,330 |
Other long-term assets | 34,395 | 31,878 |
Total assets | 2,550,249 | 2,497,071 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 299,046 | 295,517 |
Accounts payable | 139,516 | 133,073 |
Accrued compensation and benefits | 153,549 | 166,538 |
Other accrued expenses and current liabilities | 136,391 | 147,366 |
Total current liabilities | 728,502 | 742,494 |
Long-term debt, net of current portion | 319,895 | 300,790 |
Supplemental retirement savings plan obligations, net of current portion | 77,577 | 74,757 |
Deferred income taxes | 124,738 | 119,885 |
Other long-term liabilities | 53,756 | 51,573 |
Total liabilities | 1,304,468 | 1,289,499 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued | ' | ' |
Common stock $0.10 par value, 80,000 shares authorized, 41,365 and 41,172 shares issued, respectively | 4,136 | 4,117 |
Additional paid-in capital | 529,151 | 530,154 |
Retained earnings | 1,290,630 | 1,257,638 |
Accumulated other comprehensive loss | -3,042 | -9,815 |
Treasury stock, at cost (17,943 and 17,950 shares, respectively) | -577,173 | -577,191 |
Total CACI shareholders' equity | 1,243,702 | 1,204,903 |
Noncontrolling interest in joint venture | 2,079 | 2,669 |
Total shareholders' equity | 1,245,781 | 1,207,572 |
Total liabilities and shareholders' equity | $2,550,249 | $2,497,071 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 80,000 | 80,000 |
Common stock, shares issued | 41,365 | 41,172 |
Treasury stock, shares at cost | 17,943 | 17,950 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income including portion attributable to noncontrolling interest in earnings of joint venture | $33,392 | $35,990 |
Reconciliation of net income including portion attributable to noncontrolling interest to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 12,951 | 13,239 |
Non-cash interest expense | 3,360 | 3,140 |
Amortization of deferred financing costs | 509 | 494 |
Stock-based compensation expense | 2,484 | 2,400 |
Deferred income tax expense | 16,243 | 4,540 |
Equity in earnings of unconsolidated joint ventures | -444 | -426 |
Changes in operating assets and liabilities, net of effect of business acquisitions: | ' | ' |
Accounts receivable, net | -13,578 | 51,768 |
Prepaid expenses and other assets | -8,807 | -14,126 |
Accounts payable and other accrued expenses | -7,118 | -21,350 |
Accrued compensation and benefits | -13,523 | -24,632 |
Income taxes payable and receivable | 310 | 9,515 |
Supplemental retirement savings plan obligations and other long-term liabilities | 1,524 | 10,720 |
Net cash provided by operating activities | 27,303 | 71,272 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -3,020 | -5,886 |
Cash paid for business acquisitions, net of cash acquired | ' | -42,986 |
Other | -945 | -341 |
Net cash used in investing activities | -3,965 | -49,213 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from borrowings under bank credit facilities, net of financing costs | 147,093 | 453,500 |
Principal payments made under bank credit facilities | -128,500 | -317,375 |
Proceeds from employee stock purchase plans | 962 | 1,460 |
Proceeds from exercise of stock options | ' | 468 |
Repurchases of common stock | -972 | -124,352 |
Payment of taxes for equity transactions | -7,170 | -3,558 |
Other | 2,759 | 430 |
Net cash provided by financing activities | 14,172 | 10,573 |
Effect of exchange rate changes on cash and cash equivalents | 878 | 219 |
Net increase in cash and cash equivalents | 38,388 | 32,851 |
Cash and cash equivalents, beginning of period | 64,337 | 15,740 |
Cash and cash equivalents, end of period | 102,725 | 48,591 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid during the period for income taxes, net of refunds | 1,307 | 7,502 |
Cash paid during the period for interest | $1,563 | $1,728 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Sep. 30, 2013 | ||
Basis Of Presentation [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and joint ventures that are more than 50 percent owned or otherwise controlled by the Company. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated in consolidation. | ||
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt outstanding as of September 30, 2013 under its bank credit facility approximates its carrying value. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities. The fair value of the Company’s $300.0 million of 2.125 percent convertible senior subordinated notes issued May 16, 2007 and that mature on May 16, 2014 (the Notes) is based on quoted market prices using Level 1 inputs. See Notes 3 and 9. | ||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the periods presented. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest annual report to the SEC on Form 10-K for the year ended June 30, 2013. The results of operations for the three months ended September 30, 2013 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year. | ||
Certain reclassifications have been made to the prior period’s financial statements to conform to the current presentation. |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Intangible Assets | ' | ||||||||
2 | Intangible Assets | ||||||||
Intangible assets consisted of the following (in thousands): | |||||||||
September 30, | June 30, | ||||||||
2013 | 2013 | ||||||||
Customer contracts and related customer relationships | $ | 351,908 | $ | 351,349 | |||||
Acquired technologies | 27,177 | 27,177 | |||||||
Covenants not to compete | 3,435 | 3,401 | |||||||
Other | 1,586 | 1,639 | |||||||
Intangible assets | 384,106 | 383,566 | |||||||
Less accumulated amortization | (286,425 | ) | (279,378 | ) | |||||
Total intangible assets, net | $ | 97,681 | $ | 104,188 | |||||
Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to fifteen years. The weighted-average period of amortization for all customer contracts and related customer relationships as of September 30, 2013 is 9.0 years, and the weighted-average remaining period of amortization is 7.8 years. The weighted-average period of amortization for acquired technologies as of September 30, 2013 is 6.7 years, and the weighted-average remaining period of amortization is 5.0 years. | |||||||||
Expected amortization expense for the remainder of the fiscal year ending June 30, 2014, and for each of the fiscal years thereafter, is as follows (in thousands): | |||||||||
Fiscal year ending June 30, | Amount | ||||||||
2014 (nine months) | $ | 18,861 | |||||||
2015 | 20,038 | ||||||||
2016 | 15,190 | ||||||||
2017 | 13,081 | ||||||||
2018 | 9,706 | ||||||||
Thereafter | 20,805 | ||||||||
Total intangible assets, net | $ | 97,681 |
Longterm_Debt
Long-term Debt | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long-Term Debt [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
3 | Long-term Debt | ||||||||
Long-term debt consisted of the following (in thousands): | |||||||||
September 30, | June 30, | ||||||||
2013 | 2013 | ||||||||
Convertible notes payable | $ | 300,000 | $ | 300,000 | |||||
Bank credit facility – Term Loan | 131,250 | 131,250 | |||||||
Bank credit facility – Revolving Facility | 200,000 | 180,000 | |||||||
Principal amount of long-term debt | 631,250 | 611,250 | |||||||
Less unamortized discount | (8,061 | ) | (11,421 | ) | |||||
Less unamortized debt issuance costs | (4,248 | ) | (3,522 | ) | |||||
Total long-term debt | 618,941 | 596,307 | |||||||
Less current portion | (299,046 | ) | (295,517 | ) | |||||
Long-term debt, net of current portion | $ | 319,895 | $ | 300,790 | |||||
Bank Credit Facility | |||||||||
The Company has a $900.0 million credit facility (the Credit Facility), which consists of a $750.0 million revolving credit facility (the Revolving Facility) and a $150.0 million term loan (the Term Loan). The Revolving Facility has subfacilities of $50.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $250.0 million or an amount subject to 2.75 times secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. The Credit Facility is available to refinance existing indebtedness and for general corporate purposes, including working capital expenses and capital expenditures. The Credit Facility matures on August 6, 2018. | |||||||||
The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $750.0 million. As of September 30, 2013, the Company had $200.0 million outstanding under the Revolving Facility, no borrowings on the swing line and an outstanding letter of credit of $0.4 million. The Company pays a quarterly facility fee for the unused portion of the Revolving Facility. | |||||||||
The Term Loan is a five-year secured facility under which, principal payments are due in quarterly installments of $1.9 million through September 30, 2016 and $3.8 million thereafter until the balance is due in full on August 6, 2018. | |||||||||
The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable margin based upon the Company’s consolidated total leverage ratio. As of September 30, 2013, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 2.08 percent. | |||||||||
The Credit Facility requires the Company to comply with certain financial covenants, including a maximum senior secured leverage ratio, a maximum total leverage ratio and a minimum fixed charge coverage ratio. The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility. Since the inception of the Credit Facility, the Company has been in compliance with all of the financial covenants. A majority of the Company’s assets serve as collateral under the Credit Facility. | |||||||||
The Company has capitalized $9.3 million of debt issuance costs associated with the Credit Facility. All debt issuance costs are being amortized from the date incurred to the expiration date of the Credit Facility. As of September 30, 2013, $3.9 million of the unamortized balance is included in long-term debt and $1.6 million is included in other long-term assets. | |||||||||
Convertible Notes Payable | |||||||||
Effective May 16, 2007, the Company issued the Notes in a private placement. The Notes were issued at par value and are subordinate to the Company’s senior secured debt. Interest on the Notes is payable on May 1 and November 1 of each year. The Notes mature on May 1, 2014. | |||||||||
Holders may convert their notes at a conversion rate of 18.2989 shares of CACI common stock for each $1,000 of note principal (an initial conversion price of $54.65 per share) under the following circumstances: 1) if the last reported sale price of CACI stock is greater than or equal to 130 percent of the applicable conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter; 2) during the five consecutive business day period immediately after any ten consecutive trading day period (the note measurement period) in which the average of the trading price per $1,000 principal amount of convertible note was equal to or less than 97 percent of the average product of the closing price of a share of the Company’s common stock and the conversion rate of each date during the note measurement period; 3) upon the occurrence of certain corporate events constituting a fundamental change, as defined in the indenture governing the Notes; or 4) during the last three-month period prior to maturity. CACI is required to satisfy 100 percent of the principal amount of these notes solely in cash, with any amounts above the principal amount to be satisfied in common stock. As of September 30, 2013, none of the conditions permitting conversion of the Notes had been satisfied. | |||||||||
In the event of a fundamental change, as defined in the indenture governing the Notes, holders may require the Company to repurchase the Notes at a price equal to the principal amount plus any accrued interest. Also, if certain fundamental changes occur prior to maturity, the Company will in certain circumstances increase the conversion rate by a number of additional shares of common stock or, in lieu thereof, the Company may in certain circumstances elect to adjust the conversion rate and related conversion obligation so that these notes are convertible into shares of the acquiring or surviving company. The Company is not permitted to redeem the Notes. | |||||||||
The Company separately accounts for the liability and the equity (conversion option) components of the Notes and recognizes interest expense on the Notes using an interest rate in effect for comparable debt instruments that do not contain conversion features. The effective interest rate for the Notes excluding the conversion option was determined to be 6.9 percent. | |||||||||
The fair value of the liability component of the Notes was calculated to be $221.9 million at May 16, 2007, the date of issuance. The excess of the $300.0 million of gross proceeds over the $221.9 million fair value of the liability component, or $78.1 million, represents the fair value of the equity component, which was recorded, net of income tax effect, as additional paid-in capital within shareholders’ equity. This $78.1 million difference represents a debt discount that is amortized over the seven-year term of the Notes as a non-cash component of interest expense. The components of interest expense related to the Notes were as follows (in thousands): | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Coupon interest | $ | 1,594 | $ | 1,594 | |||||
Non-cash amortization of discount | 3,360 | 3,140 | |||||||
Amortization of issuance costs | 205 | 205 | |||||||
Total | $ | 5,159 | $ | 4,939 | |||||
The balance of the unamortized discount as of September 30, 2013 and June 30, 2013, was $8.1 million and $11.4 million, respectively. The balance as of September 30, 2013 will be amortized as additional, non-cash interest expense over the remaining term of the Notes (through May 1, 2014) using the effective interest method. | |||||||||
The fair value of the Notes as of September 30, 2013 was $382.5 million based on quoted market values. | |||||||||
The contingently issuable shares that may result from the conversion of the Notes were included in CACI’s diluted share count for the three months ended September 30, 2013 and 2012 because CACI’s average stock price during both three month periods was above the conversion price of $54.65 per share. Of total debt issuance costs of $7.8 million, $5.8 million is being amortized to interest expense over seven years. The remaining $2.0 million of debt issuance costs attributable to the embedded conversion option was recorded in additional paid-in capital. Upon closing of the sale of the Notes, $45.5 million of the net proceeds was used to concurrently repurchase one million shares of CACI’s common stock. | |||||||||
In connection with the issuance of the Notes, the Company purchased in a private transaction at a cost of $84.4 million call options (the Call Options) to purchase approximately 5.5 million shares of its common stock at a price equal to the conversion price of $54.65 per share. The cost of the Call Options was recorded as a reduction of additional paid-in capital. The Call Options allow CACI to receive shares of its common stock from the counterparties equal to the amount of common stock related to the excess conversion value that CACI would pay the holders of the Notes upon conversion. | |||||||||
For income tax reporting purposes, the Notes and the Call Options are integrated. This created an original issue discount for income tax reporting purposes, and therefore the cost of the Call Options is being accounted for as interest expense over the term of the Notes for income tax reporting purposes. The associated income tax benefit of $32.8 million to be realized for income tax reporting purposes over the term of the Notes was recorded as an increase in additional paid-in capital and a long-term deferred tax asset. The majority of this deferred tax asset is offset in the Company’s balance sheet by the $30.7 million deferred tax liability associated with the non-cash interest expense to be recorded for financial reporting purposes. | |||||||||
In addition, the Company sold warrants (the Warrants) to issue approximately 5.5 million shares of CACI common stock at an exercise price of $68.31 per share. The proceeds from the sale of the Warrants totaled $56.5 million and were recorded as an increase to additional paid-in capital. | |||||||||
On a combined basis, the Call Options and the Warrants are intended to reduce the potential dilution of CACI’s common stock in the event that the Notes are converted by effectively increasing the conversion price of these notes from $54.65 to $68.31. The Call Options are anti-dilutive and are therefore excluded from the calculation of diluted shares outstanding. The Warrants will result in additional diluted shares outstanding if CACI’s average common stock price exceeds $68.31. The Call Options and the Warrants are separate and legally distinct instruments that bind CACI and the counterparties and have no binding effect on the holders of the Notes. | |||||||||
Cash Flow Hedges | |||||||||
The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations. On April 5, 2012, the Company entered into two floating-to-fixed interest rate swap agreements for an aggregate notional amount of $100.0 million ($50.0 million for each agreement) related to a portion of the Company’s floating rate indebtedness. The agreements were effective beginning July 1, 2013 and mature July 3, 2017. The Company designated the interest rate swap agreements as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed. Unrealized gains and losses on these swaps are designated as effective or ineffective. The effective portion of such gains or losses is recorded as a component of accumulated other comprehensive income or loss, while the ineffective portion of such gains or losses will be recorded as a component of interest expense. Future realized gains and losses in connection with each required interest payment will be reclassified from accumulated other comprehensive income or loss to interest expense. The Company does not hold or issue derivative financial instruments for trading purposes. | |||||||||
The effect of derivative instruments in the condensed consolidated statements of operations and accumulated other comprehensive loss for the three months ended September 30, 2013 and 2012 is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Loss recognized in other comprehensive income | $ | 231 | $ | 590 | |||||
Loss reclassified to earnings from accumulated other comprehensive loss | $ | 333 | $ | — | |||||
The aggregate maturities of long-term debt at September 30, 2013 are as follows (in thousands): | |||||||||
Twelve months ending September 30, | |||||||||
2014 | $ | 307,500 | |||||||
2015 | 7,500 | ||||||||
2016 | 7,500 | ||||||||
2017 | 15,000 | ||||||||
2018 | 293,750 | ||||||||
Principal amount of long-term debt | 631,250 | ||||||||
Less unamortized discount | (8,061 | ) | |||||||
Less unamortized debt issuance costs | (4,248 | ) | |||||||
Total long-term debt | $ | 618,941 |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended | |
Sep. 30, 2013 | ||
Commitments And Contingencies [Abstract] | ' | |
Commitments And Contingencies | ' | |
4 | Commitments and Contingencies | |
The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity. | ||
Government Contracting | ||
Payments to the Company on cost-plus-fee and time-and-materials contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA). The DCAA is currently in the process of auditing the Company’s incurred cost submissions for the years ended June 30, 2007 and 2008. The DCAA has completed its audits of the Company’s incurred cost submissions for the year ended June 30, 2006, and the Company is awaiting the Defense Contract Management Agency’s decisions regarding those incurred cost submissions. In the opinion of management, audit adjustments that may result from audits not yet completed or started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues are identified, discussed and settled. | ||
On March 26, 2012, the Company received a subpoena from the Defense Criminal Investigative Service seeking documents related to one of the Company’s contracts for the period of January 1, 2007 through March 26, 2012. The Company is providing documents responsive to the subpoena and cooperating fully with the government’s investigation. The Company has accrued its current best estimate of the potential outcome within its estimated range of zero to $1.8 million. | ||
German Value-Added Taxes | ||
The Company is under audit by the German tax authorities for issues related to value-added tax returns. At this time, the Company has not been assessed any deficiency and, based on sound factual and legal precedent, believes it is in compliance with the applicable value-added tax regulations. The Company has not accrued any liability for this matter because an unfavorable outcome is not considered probable. The Company estimates the range of reasonably possible losses to be between $1.5 million and $3.5 million. | ||
Virginia Sales and Use Tax Audit | ||
The Company is under audit for sales and use tax related issues by the Commonwealth of Virginia. While no assessment has been issued, the Company has accrued its current best estimate of the potential outcome within its estimated range of $0.9 million to $3.7 million. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
5 | Stock-Based Compensation | ||||||||
Stock-based compensation expense recognized, together with the income tax benefits recognized, is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Stock-based compensation included in indirect costs and selling expenses: | |||||||||
Restricted stock unit (RSU) expense | $ | 2,443 | $ | 2,154 | |||||
Non-qualified stock option and stock settled stock appreciation right (SSAR) expense | 41 | 246 | |||||||
Total stock-based compensation expense | $ | 2,484 | $ | 2,400 | |||||
Income tax benefit recognized for stock-based compensation expense | $ | 949 | $ | 914 | |||||
Under the terms of its 2006 Stock Incentive Plan (the 2006 Plan), the Company may issue, among others, non-qualified stock options, restricted stock, RSUs, SSARs, and performance awards, collectively referred to herein as equity instruments. During the periods presented all equity instrument grants were made in the form of RSUs. Other than performance-based RSUs which contain a market-based element, the fair value of RSU grants was determined based on the closing price of a share of the Company’s common stock on the date of grant. The fair value of RSUs with market-based vesting features was also measured on the grant date, but was done so using a binomial lattice model. | |||||||||
Annual grants under the 2006 Plan are generally made to the Company’s key employees during the first quarter of the Company’s fiscal year and to members of the Company’s Board of Directors during the second quarter of the Company’s fiscal year. With the approval of its Chief Executive Officer, the Company also issues equity instruments to strategic new hires and to employees who have demonstrated superior performance. In September 2013, the Company made its annual grant to its key employees consisting of 202,170 Performance Restricted Stock Units (PRSUs). The final number of such performance-based RSUs which will be considered earned by the participants and eventually vest is based on the achievement of a specified Net After Tax Profit (NATP) for the year ending June 30, 2014 and on the average share price of Company stock for the 90 day period ending September 13, 2014 as compared to the average share price for the 90 day period ended September 13, 2013. No PRSUs will be earned if the specified NATP for the fiscal year ending June 30, 2014 is not met. If NATP for the year ending June 30, 2014 exceeds the specified NATP and the average share price of the Company’s stock for the 90 day period ending September 13, 2014 exceeds the average share price of the Company’s stock for the 90 day period ended September 13, 2013 by 100 percent or more then an additional 202,170 RSUs could be earned by participants. This is the maximum number of additional RSUs that can be earned related to the September 2013 annual grant. In addition to the performance and market conditions, there is a service vesting condition which stipulates that 50 percent of the earned award will vest on September 1, 2016 and 50 percent of the earned award will vest on September 1, 2017, in both cases dependent upon continuing service by the grantee as an employee of the Company, unless the grantee is eligible for earlier vesting upon retirement, as defined. | |||||||||
The total number of shares authorized by shareholders for grants under the 2006 Plan and its predecessor plan is 12,450,000 as of September 30, 2013. The aggregate number of grants that may be made may exceed this approved amount as forfeited SSARs, stock options, restricted stock and RSUs, and vested but unexercised SSARs and stock options that expire, become available for future grants. As of September 30, 2013, cumulative grants of 13,129,660 equity instruments underlying the shares authorized have been awarded, and 4,033,221 of these instruments have been forfeited. | |||||||||
Activity related to SSARs/non-qualified stock options and RSUs during the three months ended September 30, 2013 is as follows: | |||||||||
SSARs/ | RSUs | ||||||||
Non-qualified | |||||||||
Stock Options | |||||||||
Outstanding, June 30, 2013 | 275,550 | 1,042,746 | |||||||
Granted | — | 217,974 | |||||||
Exercised/Issued | (86,100 | ) | (280,505 | ) | |||||
Forfeited/Lapsed | (3,230 | ) | (24,472 | ) | |||||
Outstanding, September 30, 2013 | 186,220 | 955,743 | |||||||
Weighted average grant date fair value for RSUs | $ | 72.12 | |||||||
As of September 30, 2013, there was $30.3 million of total unrecognized compensation cost related to RSUs scheduled to be recognized over a weighted-average period of 3.5 years. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
6 | Earnings Per Share | ||||||||
ASC 260, Earnings Per Share (ASC 260), requires dual presentation of basic and diluted earnings per share on the face of the income statement. Basic earnings per share exclude dilution and are computed by dividing income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and SSARs with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share include the incremental effect of SSARs, stock options, restricted shares, and those RSUs that are no longer subject to a market or performance condition. For the three months ended September 30, 2012, there were forty eight thousand weighted-average common stock equivalents excluded from the diluted per share computation due to their anti-dilutive effects. There were no anti-dilutive common stock equivalents for the three months ended September 30, 2013. The PRSUs granted in September 2013 are excluded from the calculation of diluted earnings per share as the underlying shares are considered to be contingently issuable shares. These shares will be included in the calculation of diluted earnings per share beginning in the first reporting period in which the performance metric is achieved. The shares underlying the Notes were included in the computation of diluted earnings per share for the three months ended September 30, 2013 and 2012 because the average share price was above the conversion price during both three month periods. The Warrants were excluded from the computation of diluted earnings per share during both periods presented because the Warrants’ exercise price of $68.31 was greater than the average market price of a share of Company common stock during the three month periods ended September 30, 2013 and 2012. The chart below shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Net income attributable to CACI | $ | 32,992 | $ | 35,708 | |||||
Weighted average number of basic shares outstanding during the period | 23,314 | 23,032 | |||||||
Dilutive effect of SSARs/stock options and RSUs after application of treasury stock method | 526 | 935 | |||||||
Dilutive effect of the Notes | 995 | 13 | |||||||
Weighted average number of diluted shares outstanding during the period | 24,835 | 23,980 | |||||||
Basic earnings per share | $ | 1.42 | $ | 1.55 | |||||
Diluted earnings per share | $ | 1.33 | $ | 1.49 |
Income_Taxes
Income Taxes | 3 Months Ended | |
Sep. 30, 2013 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
7 | Income Taxes | |
The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination by two state jurisdictions and one foreign jurisdiction for years ended June 30, 2004 through June 30, 2012. The Company does not expect the resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows. | ||
The Company’s total liability for unrecognized tax benefits as of September 30, 2013 and June 30, 2013 was $8.8 million and $8.2 million, respectively. Of the $8.8 million unrecognized tax benefit at September 30, 2013, $2.7 million, if recognized, would impact the Company’s effective tax rate. | ||
As of June 30, 2013, the Company corrected the classification of $4.2 million of deferred tax liabilities by reclassifying this amount from non-current deferred tax liabilities to a reduction of current deferred tax assets and concluded that this reclassification was not material. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Business Segment Information [Abstract] | ' | ||||||||||||
Business Segment Information | ' | ||||||||||||
8 | Business Segment Information | ||||||||||||
The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide information solutions and services to its customers. Its customers are primarily U.S. federal government agencies. Other customers of the Company’s domestic operations include state and local governments and commercial enterprises. The Company does not measure revenue or profit by its major market areas or service offerings, either for internal management or external financial reporting purposes, as it would be impractical to do so. The Company places employees in locations around the world in support of its clients. International operations offer services to both commercial and non-U.S. government customers primarily within the Company’s business systems and enterprise IT markets. The Company evaluates the performance of its operating segments based on net income attributable to CACI. Summarized financial information concerning the Company’s reportable segments is as follows (in thousands): | |||||||||||||
Domestic | International | Total | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 830,875 | $ | 33,390 | $ | 864,265 | |||||||
Net income attributable to CACI | 30,680 | 2,312 | 32,992 | ||||||||||
Three Months Ended September 30, 2012 | |||||||||||||
Revenue from external customers | $ | 898,284 | $ | 32,952 | $ | 931,236 | |||||||
Net income attributable to CACI | 33,407 | 2,301 | 35,708 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
9 | Fair Value of Financial Instruments | ||||||||||||
ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in an orderly transaction. The market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability is known as the principal market. When no principal market exists, the most advantageous market is used. This is the market in which the reporting entity would sell the asset or transfer the liability with the price that maximizes the amount that would be received or minimizes the amount that would be paid. Fair value is based on assumptions market participants would make in pricing the asset or liability. Generally, fair value is based on observable quoted market prices or derived from observable market data when such market prices or data are available. When such prices or inputs are not available, the reporting entity should use valuation models. | |||||||||||||
The Company’s financial assets and liabilities recorded at fair value on a recurring basis are categorized based on the priority of the inputs used to measure fair value. The inputs used in measuring fair value are categorized into three levels, as follows: | |||||||||||||
• | Level 1 Inputs – unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||
• | Level 2 Inputs – unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. | ||||||||||||
• | Level 3 Inputs – amounts derived from valuation models in which unobservable inputs reflect the reporting entity’s own assumptions about the assumptions of market participants that would be used in pricing the asset or liability. | ||||||||||||
The Company’s financial instruments measured at fair value included non-corporate owned life insurance (COLI) money market investments and mutual funds held in the Company’s supplemental retirement savings plan (the Supplemental Savings Plan), contingent consideration in connection with past acquisitions and interest rate swap agreements. Contingent consideration recorded at September 30, 2013 and June 30, 2013 related to the February 1, 2012 U.K. acquisition of Tomorrow Communications, Ltd (TCL). The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and June 30, 2013, and the level they fall within the fair value hierarchy (in thousands): | |||||||||||||
Financial Statement | Fair Value | September 30, | June 30, | ||||||||||
2013 | 2013 | ||||||||||||
Description of Financial Instrument | Classification | Hierarchy | Fair Value | ||||||||||
Non-COLI assets held in connection with the Supplemental Savings Plan | Long-term asset | Level 1 | $ | — | $ | 830 | |||||||
Contingent Consideration | Current liability | Level 3 | $ | 3,189 | $ | 2,977 | |||||||
Interest rate swap agreements | Other long-term liabilities | Level 2 | $ | 2,145 | $ | 1,765 | |||||||
Changes in the fair value of the assets held in connection with the Supplemental Savings Plan are recorded in indirect costs and selling expenses. | |||||||||||||
Contingent consideration at September 30, 2013 and June 30, 2013 related to the requirement that the Company pay contingent consideration in the event TCL achieved certain specified earnings results during the one year period subsequent to acquisition. The Company determined the fair value of contingent consideration as of the acquisition date using a valuation model which included the evaluation of all possible outcomes and the application of an appropriate discount rate. At the end of each reporting period, the fair value of the contingent consideration is remeasured and any changes are recorded in indirect costs and selling expenses. During the three month periods ended September 30, 2013 and 2012, this remeasurement did not result in a significant change to the liability recorded. The maximum contingent consideration associated with the TCL acquisition is approximately $6.0 million. During the year ended June 30, 2013, the Company determined that the maximum contingent consideration possible had been earned. One-half of this amount was paid to the former shareholders of TCL in February 2013. The remaining one-half is scheduled to be paid in February 2014. | |||||||||||||
Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
10 | Subsequent Events | |
On October 8, 2013, CACI signed a definitive agreement to acquire Six3 Systems, Inc., a provider of highly specialized support to the national security community in the areas of cyber and signals intelligence; intelligence, surveillance, and reconnaissance; and intelligence operations, from private equity firm GTCR. The purchase price is $820 million and closing is anticipated during CACI’s quarter ending December 31, 2013, subject to regulatory approvals. As part of this transaction, CACI has secured a firm financing commitment for $800 million. CACI will finance the acquisition through this new commitment and borrowings under the Revolving Facility. |
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Schedule of intangible assets | ' | ||||||||
September 30, | June 30, | ||||||||
2013 | 2013 | ||||||||
Customer contracts and related customer relationships | $ | 351,908 | $ | 351,349 | |||||
Acquired technologies | 27,177 | 27,177 | |||||||
Covenants not to compete | 3,435 | 3,401 | |||||||
Other | 1,586 | 1,639 | |||||||
Intangible assets | 384,106 | 383,566 | |||||||
Less accumulated amortization | (286,425 | ) | (279,378 | ) | |||||
Total intangible assets, net | $ | 97,681 | $ | 104,188 | |||||
Schedule of expected amortization expense | ' | ||||||||
Fiscal year ending June 30, | Amount | ||||||||
2014 (nine months) | $ | 18,861 | |||||||
2015 | 20,038 | ||||||||
2016 | 15,190 | ||||||||
2017 | 13,081 | ||||||||
2018 | 9,706 | ||||||||
Thereafter | 20,805 | ||||||||
Total intangible assets, net | $ | 97,681 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long-Term Debt [Abstract] | ' | ||||||||
Schedule of long-term debt | ' | ||||||||
September 30, | June 30, | ||||||||
2013 | 2013 | ||||||||
Convertible notes payable | $ | 300,000 | $ | 300,000 | |||||
Bank credit facility – Term Loan | 131,250 | 131,250 | |||||||
Bank credit facility – Revolving Facility | 200,000 | 180,000 | |||||||
Principal amount of long-term debt | 631,250 | 611,250 | |||||||
Less unamortized discount | (8,061 | ) | (11,421 | ) | |||||
Less unamortized debt issuance costs | (4,248 | ) | (3,522 | ) | |||||
Total long-term debt | 618,941 | 596,307 | |||||||
Less current portion | (299,046 | ) | (295,517 | ) | |||||
Long-term debt, net of current portion | $ | 319,895 | $ | 300,790 | |||||
Schedule of components of interest expense | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Coupon interest | $ | 1,594 | $ | 1,594 | |||||
Non-cash amortization of discount | 3,360 | 3,140 | |||||||
Amortization of issuance costs | 205 | 205 | |||||||
Total | $ | 5,159 | $ | 4,939 | |||||
Schedule of effect of derivative instruments | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Loss recognized in other comprehensive income | $ | 231 | $ | 590 | |||||
Loss reclassified to earnings from accumulated other comprehensive loss | $ | 333 | $ | — | |||||
Schedule of aggregate maturities of long-term debt | ' | ||||||||
Twelve months ending September 30, | |||||||||
2014 | $ | 307,500 | |||||||
2015 | 7,500 | ||||||||
2016 | 7,500 | ||||||||
2017 | 15,000 | ||||||||
2018 | 293,750 | ||||||||
Principal amount of long-term debt | 631,250 | ||||||||
Less unamortized discount | (8,061 | ) | |||||||
Less unamortized debt issuance costs | (4,248 | ) | |||||||
Total long-term debt | $ | 618,941 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of stock-based compensation expense recognized | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Stock-based compensation included in indirect costs and selling expenses: | |||||||||
Restricted stock unit (RSU) expense | $ | 2,443 | $ | 2,154 | |||||
Non-qualified stock option and stock settled stock appreciation right (SSAR) expense | 41 | 246 | |||||||
Total stock-based compensation expense | $ | 2,484 | $ | 2,400 | |||||
Income tax benefit recognized for stock-based compensation expense | $ | 949 | $ | 914 | |||||
Schedule of activity related to SSARs/non-qualified stock options and RSUs | ' | ||||||||
SSARs/ | RSUs | ||||||||
Non-qualified | |||||||||
Stock Options | |||||||||
Outstanding, June 30, 2013 | 275,550 | 1,042,746 | |||||||
Granted | — | 217,974 | |||||||
Exercised/Issued | (86,100 | ) | (280,505 | ) | |||||
Forfeited/Lapsed | (3,230 | ) | (24,472 | ) | |||||
Outstanding, September 30, 2013 | 186,220 | 955,743 | |||||||
Weighted average grant date fair value for RSUs | $ | 72.12 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of calculation of basic and diluted earnings per share | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Net income attributable to CACI | $ | 32,992 | $ | 35,708 | |||||
Weighted average number of basic shares outstanding during the period | 23,314 | 23,032 | |||||||
Dilutive effect of SSARs/stock options and RSUs after application of treasury stock method | 526 | 935 | |||||||
Dilutive effect of the Notes | 995 | 13 | |||||||
Weighted average number of diluted shares outstanding during the period | 24,835 | 23,980 | |||||||
Basic earnings per share | $ | 1.42 | $ | 1.55 | |||||
Diluted earnings per share | $ | 1.33 | $ | 1.49 | |||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Business Segment Information [Abstract] | ' | ||||||||||||
Schedule of summarized financial information concerning the Company's reportable segments | ' | ||||||||||||
Domestic | International | Total | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 830,875 | $ | 33,390 | $ | 864,265 | |||||||
Net income attributable to CACI | 30,680 | 2,312 | 32,992 | ||||||||||
Three Months Ended September 30, 2012 | |||||||||||||
Revenue from external customers | $ | 898,284 | $ | 32,952 | $ | 931,236 | |||||||
Net income attributable to CACI | 33,407 | 2,301 | 35,708 |
Recovered_Sheet1
Fair Value Of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Schedule of summarizes the financial assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||
Financial Statement | Fair Value | September 30, | June 30, | ||||||||||
2013 | 2013 | ||||||||||||
Description of Financial Instrument | Classification | Hierarchy | Fair Value | ||||||||||
Non-COLI assets held in connection with the Supplemental Savings Plan | Long-term asset | Level 1 | $ | — | $ | 830 | |||||||
Contingent Consideration | Current liability | Level 3 | $ | 3,189 | $ | 2,977 | |||||||
Interest rate swap agreements | Other long-term liabilities | Level 2 | $ | 2,145 | $ | 1,765 |
Basis_Of_Presentation_Detail_T
Basis Of Presentation (Detail Textuals) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Basis Of Presentation [Abstract] | ' |
Variable interest entity, ownership percentage | 50.00% |
Convertible notes payable | $300 |
Convertible senior subordinated notes rate | 2.13% |
Convertible senior subordinated notes, issuance date | 16-May-07 |
Convertible senior subordinated notes, maturity date | 16-May-14 |
Intangible_Assets_Summary_of_i
Intangible Assets - Summary of intangible Assets (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets [Abstract] | ' | ' |
Customer contracts and related customer relationships | $351,908 | $351,349 |
Acquired technologies | 27,177 | 27,177 |
Covenants not to compete | 3,435 | 3,401 |
Other | 1,586 | 1,639 |
Intangible assets | 384,106 | 383,566 |
Less accumulated amortization | -286,425 | -279,378 |
Total intangible assets, net | $97,681 | $104,188 |
Intangible_Assets_Summary_of_e
Intangible Assets - Summary of expected amortization expense (Details 1) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets [Abstract] | ' | ' |
2014 (nine months) | $18,861 | ' |
2015 | 20,038 | ' |
2016 | 15,190 | ' |
2017 | 13,081 | ' |
2018 | 9,706 | ' |
Thereafter | 20,805 | ' |
Total intangible assets, net | $97,681 | $104,188 |
Intangible_Assets_Detail_Textu
Intangible Assets (Detail Textuals) | 3 Months Ended |
Sep. 30, 2013 | |
Minimum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset amortization period | '1 year |
Maximum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset amortization period | '15 years |
Customer Contracts And Related Customer Relationships | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-average amortization period | '9 years |
Weighted-average remaining amortization period | '7 years 9 months 18 days |
Acquired technologies | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-average amortization period | '6 years 8 months 12 days |
Weighted-average remaining amortization period | '5 years |
LongTerm_Debt_Summary_of_longt
Long-Term Debt - Summary of long-term debt (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Principal amount of long-term debt | $631,250 | $611,250 |
Less unamortized discount | -8,061 | -11,421 |
Less unamortized debt issuance costs | -4,248 | -3,522 |
Total long-term debt | 618,941 | 596,307 |
Less current portion | -299,046 | -295,517 |
Long-term debt, net of current portion | 319,895 | 300,790 |
Convertible Notes Payable | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of long-term debt | 300,000 | 300,000 |
Less unamortized debt issuance costs | -5,800 | ' |
Bank credit facility - Term Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of long-term debt | 131,250 | 131,250 |
Bank credit facility - Revolving Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of long-term debt | $200,000 | $180,000 |
LongTerm_Debt_Components_of_in
Long-Term Debt - Components of interest expense (Details 1) (Convertible Notes Payable, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Convertible Notes Payable | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Coupon interest | $1,594 | $1,594 |
Non-cash amortization of discount | 3,360 | 3,140 |
Amortization of issuance costs | 205 | 205 |
Total | $5,159 | $4,939 |
LongTerm_Debt_Effect_of_deriva
Long-Term Debt - Effect of derivative instruments (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Long-Term Debt [Abstract] | ' | ' |
Loss recognized in other comprehensive income | $231 | $590 |
Loss reclassified to earnings from accumulated other comprehensive loss | $333 | ' |
LongTerm_Debt_Aggregate_maturi
Long-Term Debt - Aggregate maturities of long-term debt (Details 3) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ' | ' |
2014 | $307,500 | ' |
2015 | 7,500 | ' |
2016 | 7,500 | ' |
2017 | 15,000 | ' |
2018 | 293,750 | ' |
Principal amount of long-term debt | 631,250 | 611,250 |
Less unamortized discount | -8,061 | -11,421 |
Less unamortized debt issuance costs | -4,248 | -3,522 |
Total long-term debt | $618,941 | $596,307 |
LongTerm_Debt_Detail_Textuals
Long-Term Debt (Detail Textuals) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Bank Credit Facility | Bank Credit Facility | Bank Credit Facility | Revolving Credit Facility | Same-Day Swing Line Loan | Stand-By Letters Of Credit | Term Loan | Principal Payment Through September 30, 2016 | Principal Payment Thereafter September 30, 2016 | |||
Long-term Debt | Other long-term assets | Term Loan | Term Loan | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maximum borrowing capacity | ' | ' | $900,000,000 | ' | ' | $750,000,000 | $50,000,000 | $25,000,000 | $150,000,000 | ' | ' |
Credit facility borrowing capacity, description | ' | ' | 'At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $250.0 million or an amount subject to 2.75 times the secured leverage calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. | ' | ' | ' | ' | ' | ' | ' | ' |
Loan maturity date | ' | ' | 6-Aug-18 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | ' | ' | ' | ' | ' | 200,000,000 | 0 | 400,000 | ' | ' | ' |
Term loan period | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Term loan principal payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 3,800,000 |
Term loan frequency of payment | ' | ' | 'Quarterly | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings interest rate | ' | ' | 2.08% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance cost capitalized | ' | ' | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance expense | $4,248,000 | $3,522,000 | ' | $3,900,000 | $1,600,000 | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Detail_Textuals_
Long-Term Debt (Detail Textuals 1) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Apr. 05, 2012 | Sep. 30, 2013 | 16-May-07 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 05, 2012 | Apr. 05, 2012 | Sep. 30, 2013 |
Day | Agreement | Convertible Notes Payable | Convertible Notes Payable | Convertible Notes Payable | Convertible Notes Payable | Convertible Notes Payable | Cash Flow Hedging | Floating To Fixed Interest Rate Swap Agreements Two | Minimum | |||
Call Options | Non-Cash Interest Expense | Warrants | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate of notes into shares | ' | ' | ' | ' | 18.2989 | ' | ' | ' | ' | ' | ' | ' |
Face value of convertible notes | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' |
Initial conversion price per share | ' | ' | ' | ' | $54.65 | ' | ' | ' | ' | ' | ' | ' |
Debt conversion circumstances | '1) if the last reported sale price of CACI stock is greater than or equal to 130 percent of the applicable conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter; 2) during the five consecutive business day period immediately after any ten consecutive trading day period (the note measurement period) in which the average of the trading price per $1,000 principal amount of convertible note was equal to or less than 97 percent of the average product of the closing price of a share of the Company's common stock and the conversion rate of each date during the note measurement period; 3) upon the occurrence of certain corporate events constituting a fundamental change, as defined in the indenture governing the Notes; or 4) during the last three-month period prior to maturity. CACI is required to satisfy 100 percent of the principal amount of these notes solely in cash, with any amounts above the principal amount to be satisfied in common stock. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold trading days of note | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement period for shares and conversion price | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of sale price of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% |
Note percent of average product closing price | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold of share and conversion price | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement period for shares and notes price | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of notes to be paid in cash | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate for the notes | ' | ' | ' | ' | 6.90% | ' | ' | ' | ' | ' | ' | ' |
Fair value of the liability component of notes | ' | ' | ' | ' | ' | 221,900,000 | ' | ' | ' | ' | ' | ' |
Proceed from notes payable | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of equity component note | ' | ' | ' | ' | 78,100,000 | ' | ' | ' | ' | ' | ' | ' |
Debt discount amortization period | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt discount | 8,061,000 | 11,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the notes | 382,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of note over principal if converted | 79,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt issuance costs | ' | ' | ' | ' | 7,800,000 | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs attributable to conversion option | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance expense | 4,248,000 | 3,522,000 | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of notes receivable | ' | ' | ' | ' | 45,500,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchases of common stock, shares | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock | ' | ' | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' |
Purchase of call option | ' | ' | ' | ' | ' | ' | 84,400,000 | ' | ' | ' | ' | ' |
Income tax benefit on discount on issue of notes | ' | ' | ' | ' | 32,800,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | ' | ' | ' | ' | 30,700,000 | ' | ' | ' | ' |
Common shares issuable under the sale of warrants | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' |
Warrant's exercise price | 68.31 | ' | 68.31 | ' | ' | ' | ' | ' | 68.31 | ' | ' | ' |
Proceeds from sales of warrant | ' | ' | ' | ' | ' | ' | ' | ' | 56,500,000 | ' | ' | ' |
Number of floating to fixed interest rate swap agreements | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Swap agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $50,000,000 | ' |
Commitments_And_Contingencies_
Commitments And Contingencies (Detail Textuals) (USD $) | 1 Months Ended | 3 Months Ended |
Mar. 26, 2012 | Sep. 30, 2013 | |
Contract | ||
Loss Contingencies [Line Items] | ' | ' |
Number of company contracts subpoenaed | 1 | ' |
Accrued estimates of the possible losses, low | ' | $0 |
Accrued estimates of the possible losses, high | ' | 1,800,000 |
Potential outcome minimum | ' | 1,500,000 |
Potential outcome maximum | ' | 3,500,000 |
Minimum | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Income tax examination, range of possible losses | ' | 900,000 |
Maximum | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Income tax examination, range of possible losses | ' | $3,700,000 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of stock-based compensation expense recognized (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Restricted stock unit (RSU) expense | $2,443 | $2,154 |
Non-qualified stock option and stock settled stock appreciation right (SSAR) expense | 41 | 246 |
Total stock-based compensation expense | 2,484 | 2,400 |
Income tax benefit recognized for stock-based compensation expense | $949 | $914 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of activity related to SSARs/non-qualified stock options and RSUs/restricted shares issued (Details 1) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
SSARs/ Non-qualified Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding, June 30, 2013 | 275,550 |
Granted | ' |
Exercised/Issued | -86,100 |
Forfeited/Lapsed | -3,230 |
Outstanding, September 30, 2013 | 186,220 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding, June 30, 2013 | 1,042,746 |
Granted | 217,974 |
Exercised/Issued | -280,505 |
Forfeited/Lapsed | -24,472 |
Outstanding, September 30, 2013 | 955,743 |
Weighted average grant date fair value for RSUs | 72.12 |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail Textuals) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
2006 Plan And Predecessor Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized for grants | 12,450,000 |
Cumulative grants of equity instruments | 13,129,660 |
Number of equity instruments forfeited | 4,033,221 |
Restricted Shares And Restricted Stock Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | 30.3 |
Weighted-average period to recognize unrecognized compensation cost (in years) | '3 years 6 months |
PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Period to establish average share price for performance measurement | '90 days |
PRSUs | September 2013 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
PRSUs granted | 202,170 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Description of issuance of awards condition | 'If NATP for the year ending June 30, 2014 exceeds the specified NATP and the average share price of the Company's stock for the 90 day period ending September 13, 2014 exceeds the average share price of the Company's stock for the 90 day period ending September 13, 2013 by 100 percent or more then an additional 202,170 RSUs could be earned by participants. |
Number of additional awards to be issued pursuant to condition | 202,170 |
Description of vesting of awards | 'In addition to the performance and market conditions, there is a service vesting condition which stipulates that 50 percent of the earned award will vest on September 1, 2016 and 50 percent of the earned award will vest on September 1, 2017 |
RSUs | September 2016 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting percentage of awards | 50.00% |
RSUs | September 2017 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting percentage of awards | 50.00% |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of earnings per share and weighted average number of basic and diluted shares (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Net income attributable to CACI | $32,992 | $35,708 |
Weighted average number of basic shares outstanding during the period | 23,314 | 23,032 |
Dilutive effect of SSARs/stock options and RSUs after application of treasury stock method | 526 | 935 |
Dilutive effect of the Notes | 995 | 13 |
Weighted average number of diluted shares outstanding during the period | 24,835 | 23,980 |
Basic earnings per share | $1.42 | $1.55 |
Diluted earnings per share | $1.33 | $1.49 |
Earnings_Per_Share_Detail_Text
Earnings Per Share (Detail Textuals) | 3 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Anti-dilutive effect shares | 48,000 | ' |
Warrant's exercise price | 68.31 | 68.31 |
Income_Taxes_Detail_Textuals
Income Taxes (Detail Textuals) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Foreign Jurisdiction | State Jurisdiction | ||
Contract | Contract | |||
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Number of jurisdictions | ' | ' | 1 | 2 |
Unrecognized tax benefits | $8.80 | $8.20 | ' | ' |
Unrecognized tax benefit that would impact the company's effective tax rate | 2.7 | ' | ' | ' |
Reclassified deferred tax liabilities from non-current to current | ' | $4.20 | ' | ' |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue from external customers | $864,265 | $931,236 |
Net income attributable to CACI | 32,992 | 35,708 |
Reportable Geographical Components | Domestic | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue from external customers | 830,875 | 898,284 |
Net income attributable to CACI | 30,680 | 33,407 |
Reportable Geographical Components | International | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue from external customers | 33,390 | 32,952 |
Net income attributable to CACI | $2,312 | $2,301 |
Business_Segment_Information_D1
Business Segment Information (Detail Textuals) (Reportable Geographical Components) | 3 Months Ended |
Sep. 30, 2013 | |
Segment | |
Reportable Geographical Components | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' |
Number of operating segments | 2 |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Asset | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Non-COLI assets held in connection with the Supplemental Savings Plan | ' | $830 |
Current Liability | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent Consideration | 3,189 | 2,977 |
Other long-term liabilities | Fair Value, Inputs, Level 2 | Interest Rate Swap Agreements | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Aggregate notional amount | $2,145 | $1,765 |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Detail textuals) (TCL, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Contingent consideration payment period (in years) | '1 year |
Maximum | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Contingent Consideration | 6,000 |
Payment February 2013 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Percentage of contingent consideration paid | 50.00% |
Payment February 2014 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Percentage of contingent consideration paid | 50.00% |
Subsequent_Events_Detail_Textu
Subsequent Events (Detail Textuals) (Subsequent event, Six3 Systems, USD $) | Oct. 08, 2013 |
In Millions, unless otherwise specified | |
Subsequent event | Six3 Systems | ' |
Subsequent Event [Line Items] | ' |
Business acquisition, purchase price | $820 |
Business acquisition, secured financing commitment | $800 |