Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jul. 28, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | CACI International Inc | ||
Entity Central Index Key | 0000016058 | ||
Trading Symbol | CACI | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 23,586,037 | ||
Entity Public Float | $ 6,202,453,506 | ||
ICFR Auditor Attestation Flag | true | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2021 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-31400 | ||
Entity Tax Identification Number | 54-1345888 | ||
Entity Address, Address Line One | 12021 Sunset Hills Road | ||
Entity Address, City or Town | Reston | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 20190 | ||
City Area Code | 703 | ||
Local Phone Number | 841-7800 | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the Registrant’s Proxy Statement to be filed with the Securities Exchange Commission (SEC) pursuant to Regulation 14A for the 2021 Annual Meeting of Stockholders. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 6,044,135 | $ 5,720,042 | $ 4,986,341 |
Costs of revenue: | |||
Direct costs | 3,930,707 | 3,719,056 | 3,304,053 |
Indirect costs and selling expenses | 1,448,614 | 1,432,602 | 1,218,544 |
Depreciation and amortization | 125,363 | 110,688 | 85,877 |
Total costs of revenue | 5,504,684 | 5,262,346 | 4,608,474 |
Income from operations | 539,451 | 457,696 | 377,867 |
Interest expense and other, net | 39,836 | 56,059 | 49,958 |
Income before income taxes | 499,615 | 401,637 | 327,909 |
Income taxes | 42,172 | 80,157 | 62,305 |
Net income | $ 457,443 | $ 321,480 | $ 265,604 |
Basic earnings per share | $ 18.52 | $ 12.84 | $ 10.70 |
Diluted earnings per share | $ 18.30 | $ 12.61 | $ 10.46 |
Weighted-average basic shares outstanding | 24,705 | 25,031 | 24,833 |
Weighted-average diluted shares outstanding | 24,992 | 25,485 | 25,395 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 457,443 | $ 321,480 | $ 265,604 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 22,656 | (4,990) | (6,103) |
Effects of post-retirement adjustments, net of tax | 585 | 141 | (109) |
Change in fair value of interest rate swap agreements, net of tax | 12,753 | (24,280) | (17,914) |
Other comprehensive income (loss), net of tax | 35,994 | (29,129) | (24,126) |
Comprehensive income | $ 493,437 | $ 292,351 | $ 241,478 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 88,031 | $ 107,236 | |
Accounts receivable, net | 879,851 | 841,227 | |
Prepaid expenses and other current assets | 363,294 | 137,423 | |
Total current assets | 1,331,176 | 1,085,886 | |
Goodwill | 3,632,578 | 3,407,110 | |
Intangible assets, net | 476,106 | [1] | 406,885 |
Property and equipment, net | 190,444 | 170,521 | |
Operating lease right-of-use assets | 356,887 | 330,767 | |
Supplemental retirement savings plan assets | 102,984 | 96,355 | |
Accounts receivable, long-term | 12,159 | 9,629 | |
Other long-term assets | 70,038 | 35,319 | |
Total assets | 6,172,372 | 5,542,472 | |
Current liabilities: | |||
Current portion of long-term debt | 46,920 | 46,920 | |
Accounts payable | 148,636 | 89,961 | |
Accrued compensation and benefits | 409,275 | 338,760 | |
Other accrued expenses and current liabilities | 279,970 | 293,518 | |
Total current liabilities | 884,801 | 769,159 | |
Long-term debt, net of current portion | 1,688,919 | 1,357,519 | |
Supplemental retirement savings plan obligations, net of current portion | 104,490 | 103,004 | |
Deferred income taxes | 327,230 | 213,096 | |
Operating lease liabilities, noncurrent | 363,302 | 309,680 | |
Other long-term liabilities | 138,352 | 128,704 | |
Total liabilities | 3,507,094 | 2,881,162 | |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding | |||
Common stock $0.10 par value, 80,000 shares authorized; 42,676 issued and 23,554 outstanding at June 30, 2021 and 42,525 issued and 25,093 outstanding at June 30, 2020 | 4,268 | 4,253 | |
Additional paid-in capital | 484,260 | 573,744 | |
Retained earnings | 3,189,087 | 2,731,644 | |
Accumulated other comprehensive loss | (36,291) | (72,285) | |
Treasury stock, at cost (19,122 and 17,432 shares, respectively) | (976,181) | (576,181) | |
Total CACI shareholders’ equity | 2,665,143 | 2,661,175 | |
Noncontrolling interest | 135 | 135 | |
Total shareholders’ equity | 2,665,278 | 2,661,310 | |
Total liabilities and shareholders’ equity | $ 6,172,372 | $ 5,542,472 | |
[1] | During FY2021, the Company removed $38.2 million in fully amortized intangible assets. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 42,676,000 | 42,525,000 |
Common stock, shares outstanding | 23,554,000 | 25,093,000 |
Treasury stock, shares at cost | 19,122,000 | 17,432,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 457,443 | $ 321,480 | $ 265,604 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 125,363 | 110,688 | 85,877 |
Amortization of deferred financing costs | 2,320 | 2,346 | 2,406 |
Non-cash lease expense | 77,148 | 73,248 | |
Loss on extinguishment of debt | 363 | ||
Loss on disposal of assets | 6 | 190 | 70 |
Stock-based compensation expense | 30,463 | 29,302 | 25,272 |
Deferred income taxes | 108,973 | 17,874 | (1,009) |
Changes in operating assets and liabilities, net of effect of business acquisitions: | |||
Accounts receivable, net | (38,162) | 34,550 | 96,754 |
Prepaid expenses and other assets | (15,766) | (38,432) | (5,372) |
Accounts payable and other accrued expenses | 49,812 | (24,406) | 70,692 |
Accrued compensation and benefits | 68,742 | 46,769 | 8,387 |
Income taxes payable and receivable | (231,971) | (25,118) | 1,119 |
Deferred rent | (538) | ||
Operating lease liabilities | (73,057) | (74,928) | |
Long-term liabilities | 30,901 | 45,142 | 5,672 |
Net cash provided by operating activities | 592,215 | 518,705 | 555,297 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (73,129) | (72,303) | (47,902) |
Cash paid for business acquisitions, net of cash acquired | (356,261) | (106,226) | (1,082,809) |
Other | 2,744 | 2,729 | |
Net cash used in investing activities | (426,646) | (178,529) | (1,127,982) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings under bank credit facilities | 3,290,000 | 1,698,000 | 2,531,500 |
Principal payments made under bank credit facilities | (2,960,920) | (1,960,920) | (1,928,420) |
Payment of financing costs under bank credit facilities | (3,177) | ||
Payment of contingent consideration | (8,700) | (616) | |
Proceeds from employee stock purchase plans | 9,181 | 7,432 | 5,702 |
Repurchases of common stock | (509,137) | (7,806) | (5,838) |
Payment of taxes for equity transactions | (19,720) | (31,400) | (19,595) |
Net cash provided by (used in) financing activities | (190,596) | (303,394) | 579,556 |
Effect of exchange rate changes on cash and cash equivalents | 5,822 | (1,574) | (1,037) |
Net change in cash and cash equivalents | (19,205) | 35,208 | 5,834 |
Cash and cash equivalents, beginning of year | 107,236 | 72,028 | 66,194 |
Cash and cash equivalents, end of year | 88,031 | 107,236 | 72,028 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid during the period for income taxes, net of refunds | 142,177 | 79,071 | 68,303 |
Cash paid during the period for interest | 36,137 | 50,986 | 44,673 |
Non-cash financing and investing activities: | |||
Accrued capital expenditures | 950 | 1,078 | 8,223 |
Landlord sponsored tenant incentives | $ 16,363 | $ 2,925 | $ 5,180 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect adjustment of ASC 606 | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative effect adjustment of ASC 606 | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total CACI Shareholders' Equity | Total CACI Shareholders' EquityCumulative effect adjustment of ASC 606 | Noncontrolling Interest |
Beginning balance at Jun. 30, 2018 | $ 2,106,887 | $ 4,214 | $ 570,964 | $ 2,126,790 | $ (19,030) | $ (576,186) | $ 2,106,752 | $ 135 | |||
Beginning balance, shares at Jun. 30, 2018 | 42,139 | 17,434 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 265,604 | 265,604 | 265,604 | ||||||||
Stock-based compensation expense | 25,272 | 25,272 | 25,272 | ||||||||
Tax withholdings on restricted share vestings | (19,555) | $ 17 | (19,572) | (19,555) | |||||||
Tax withholdings on restricted share vestings (in shares) | 175 | ||||||||||
Change in fair value of interest rate swap agreements, net | (17,914) | (17,914) | (17,914) | ||||||||
Currency translation adjustment | (6,103) | (6,103) | (6,103) | ||||||||
Repurchases of common stock | (5,838) | (392) | $ (5,446) | (5,838) | |||||||
Repurchases of common stock (in shares) | 34 | ||||||||||
Treasury stock issued under stock purchase plans | 5,452 | 5 | $ 5,447 | 5,452 | |||||||
Treasury stock issued under stock purchase plans (in shares) | (34) | ||||||||||
Post-retirement benefit costs | (109) | (109) | (109) | ||||||||
Ending balance at Jun. 30, 2019 | 2,371,466 | $ 17,770 | $ 4,231 | 576,277 | 2,410,164 | $ 17,770 | (43,156) | $ (576,185) | 2,371,331 | $ 17,770 | 135 |
Ending balance, shares at Jun. 30, 2019 | 42,314 | 17,434 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 321,480 | 321,480 | 321,480 | ||||||||
Stock-based compensation expense | 29,302 | 29,302 | 29,302 | ||||||||
Tax withholdings on restricted share vestings | (31,271) | $ 22 | (31,293) | (31,271) | |||||||
Tax withholdings on restricted share vestings (in shares) | 211 | ||||||||||
Change in fair value of interest rate swap agreements, net | (24,280) | (24,280) | (24,280) | ||||||||
Currency translation adjustment | (4,990) | (4,990) | (4,990) | ||||||||
Repurchases of common stock | (7,806) | (622) | $ (7,184) | (7,806) | |||||||
Repurchases of common stock (in shares) | 34 | ||||||||||
Treasury stock issued under stock purchase plans | 7,268 | 80 | $ 7,188 | 7,268 | |||||||
Treasury stock issued under stock purchase plans (in shares) | (36) | ||||||||||
Post-retirement benefit costs | 141 | 141 | 141 | ||||||||
Ending balance at Jun. 30, 2020 | 2,661,310 | $ 4,253 | 573,744 | 2,731,644 | (72,285) | $ (576,181) | 2,661,175 | 135 | |||
Ending balance, shares at Jun. 30, 2020 | 42,525 | 17,432 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 457,443 | 457,443 | 457,443 | ||||||||
Stock-based compensation expense | 30,463 | 30,463 | 30,463 | ||||||||
Tax withholdings on restricted share vestings | (19,719) | $ 15 | (19,734) | (19,719) | |||||||
Tax withholdings on restricted share vestings (in shares) | 151 | ||||||||||
Change in fair value of interest rate swap agreements, net | 12,753 | 12,753 | 12,753 | ||||||||
Currency translation adjustment | 22,656 | 22,656 | 22,656 | ||||||||
Repurchases of common stock | (509,137) | (100,232) | $ (408,905) | (509,137) | |||||||
Repurchases of common stock (in shares) | 1,731 | ||||||||||
Treasury stock issued under stock purchase plans | 8,924 | 19 | $ 8,905 | 8,924 | |||||||
Treasury stock issued under stock purchase plans (in shares) | (41) | ||||||||||
Post-retirement benefit costs | 585 | 585 | 585 | ||||||||
Ending balance at Jun. 30, 2021 | $ 2,665,278 | $ 4,268 | $ 484,260 | $ 3,189,087 | $ (36,291) | $ (976,181) | $ 2,665,143 | $ 135 | |||
Ending balance, shares at Jun. 30, 2021 | 42,676 | 19,122 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Business Activities CACI International Inc (collectively, with its consolidated subsidiaries, the Company, we, us and our) is a leading provider of information solutions and services primarily to the U.S. government. Other customers include state and local governments, commercial enterprises and agencies of foreign governments. The Company’s operations are subject to certain risks and uncertainties including, among others, the dependence on contracts with federal government agencies, dependence on revenue derived from contracts awarded through competitive bidding, existence of contracts with fixed pricing, dependence on subcontractors to fulfill contractual obligations, dependence on key management personnel, ability to attract and retain qualified employees, ability to successfully integrate acquired companies, and current and potential competitors with greater resources. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company. All intercompany balances and transactions have been eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reported periods. The most significant of these estimates and assumptions relate to estimating contract revenue and costs, measuring progress against the Company’s performance obligations, assessing the fair value of acquired assets and liabilities accounted for through business acquisitions, valuing and determining the amortization periods for long-lived intangible assets, assessing the recoverability of long-lived assets, reserves for accounts receivable, and reserves for contract related matters. Management evaluates its estimates on an ongoing basis using the most current and available information. However, actual results may differ significantly from estimates. Changes in estimates are recorded in the period in which they become known. Revenue Recognition The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials (T&M) contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services. We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires professional judgment and it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue. Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract. This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation. We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements. This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations. For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation. When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion method. For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided. When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation. Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program. Costs of Revenue Costs of revenue includes all direct contract costs such as labor, materials, subcontractor costs, and indirect costs that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also includes expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at amounts earned less an allowance for doubtful accounts. The Company periodically reassesses its allowance for doubtful accounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract specific factors. Upon determination that a specific receivable is uncollectible, the receivable is written off against the allowance for doubtful accounts reserve. Contract Assets Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables. In addition, the costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract (e.g., ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation. The incremental costs of obtaining a contract (e.g., sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception. Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value. Contract Liabilities Contract liabilities primarily include advance payments received from a customer in excess of revenue that may be recognized as of the balance sheet date. The advance payment is subsequently recognized into revenue as the performance obligation is satisfied. Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end. The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle until such task orders are issued. The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied. The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations. Based on this analysis, an adjustment to the period end balance may be required. Cash and Cash Equivalents The Company considers all investments with an original maturity of three months or less on their trade date to be cash equivalents. The Company classifies investments with an original maturity of more than three months but less than twelve months on their trade date as short-term marketable securities. Accounting for Business Combinations and Goodwill The purchase price of an acquired business is allocated to the tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values, with the excess recorded as goodwill. Determining the fair value of the acquired intangibles requires significant judgment in selecting underlying assumptions, including projected revenue growth rates, profit margins, and discount rates. In some cases, the Company uses discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long-term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The Company evaluates goodwill at least annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation includes comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of such unit. The level at which the Company tests goodwill for impairment requires management to determine whether the operations below the operating segments constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results. If the fair value exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds its fair value, the goodwill of the reporting unit may be impaired. Impairment is measured by comparing the implied fair value of the goodwill to its carrying value. Separately identifiable intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if impairment indicators are present. As part of the annual assessment, the Company estimates the fair value of its reporting units using both an income approach and a market approach. The valuation process considers management’s estimates of the future operating performance of each reporting unit. Companies in similar industries are researched and analyzed and management considers the domestic and international economic and financial market conditions, both in general and specific to the industry in which the Company operates, prevailing as of the valuation date. The income approach utilizes discounted cash flows. The Company calculates a weighted average cost of capital for each reporting unit in order to estimate the discounted cash flows. The Company evaluates goodwill as of the first day of the fiscal fourth quarter. In addition, the Company will perform interim impairment testing should circumstances requiring it arise. The Company completed its annual goodwill assessment as of April 1, 2021 and no impairment charge was necessary as a result of this assessment. Leases The Company enters into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment. These arrangements contain a lease when the Company controls the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset. All of our leases are operating leases. The Company records a right of use (ROU) asset and lease liability as of the lease commencement date equal to the present value of the remaining lease payments. Most of our leases do not provide an implicit rate that can be readily determined. Therefore, we use a discount rate based on the Company’s incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. The ROU asset is then adjusted for initial direct costs and certain lease incentives included in the contractual arrangement. The Company has elected to not apply the lease recognition guidance for short-term equipment leases and to separate lease from non-lease components. Our operating lease arrangements may contain options to extend the lease term or for early termination. We account for these options when it is reasonably certain we will exercise them. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. Operating lease expense is recognized on a straight-line basis over the lease term and is recorded primarily within indirect costs and selling expenses on the consolidated statement of operations. Variable lease expenses are generally recorded in the period they are incurred and are excluded from the ROU asset and lease liability. Long-Lived Assets (Excluding Goodwill) Long-lived assets such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Property and equipment is recorded at cost. Depreciation of equipment and furniture has been provided over the estimated useful life of the respective assets (ranging from three to eight years) using the straight-line method. Leasehold improvements are generally amortized using the straight-line method over the remaining lease term or the useful life of the improvements, whichever is shorter. Repairs and maintenance costs are expensed as incurred. Separately identifiable definite-lived intangible assets are amortized over their respective estimated useful lives. External Software Development Costs Costs incurred in creating a software product to be sold or licensed for external use are expensed as incurred until technological feasibility has been established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. Thereafter, all such software development costs are capitalized and subsequently reported at the lower of unamortized cost or estimated net realizable value. Capitalized costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Supplemental Retirement Savings Plan The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan. Each participant directs his or her investments in the Supplemental Savings Plan (see Note 21). A Rabbi Trust is a grantor trust established to fund compensation for a select group of management. The assets of this trust are available to satisfy the claims of general creditors in the event of bankruptcy of the Company. The assets held by the Rabbi Trust are invested in corporate owned life insurance (COLI) products. The COLI products are recorded at cash surrender value in the consolidated financial statements as supplemental retirement savings plan assets. The amounts due to participants are based on contributions, participant investment elections, and other participant activity and are recorded as supplemental retirement savings plan obligations. Income Taxes Income taxes are accounted for using the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of assets and liabilities, and their respective tax bases, and operating loss and tax credit carry forwards. The Company accounts for tax contingencies in accordance with ASC 740-10-25, Income Taxes – Recognition Costs of Acquisitions Costs associated with legal, financial and other professional advisors related to acquisitions, whether successful or unsuccessful, are expensed as incurred. Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the weighted-average exchange rate during the period. The Company’s primary practice is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency fluctuations. The net translation gains and losses are not included in net income, but are accumulated as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as incurred in indirect costs and selling expenses in the accompanying consolidated statements of operations. Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock units (RSUs) that are no longer subject to a market or performance condition. Information about the weighted-average number of basic and diluted shares is presented in Note 24. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2021. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities. Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk include accounts receivable and cash equivalents. Management believes that credit risk related to the Company’s accounts receivable is limited due to a large number of customers in differing segments and agencies of the U.S. government. Accounts receivable credit risk is also limited due to the credit worthiness of the U.S. government. Management believes the credit risk associated with the Company’s cash equivalents is limited due to the credit worthiness of the obligors of the investments underlying the cash equivalents. In addition, although the Company maintains cash balances at financial institutions that exceed federally insured limits, these balances are placed with high quality financial institutions. Accounting for Sales of Financial Assets The Company accounts for receivable transfers under its Master Accounts Receivable Purchase Agreement (MARPA) as sales under ASC 860, Transfers and Servicing Other Comprehensive Income (Loss) Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $4.5 million, $8.7 million and $6.4 million for the years ended June 30, 2021, 2020 and 2019, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 17). As of June 30, 2021 and 2020, accumulated other comprehensive loss included a loss of $15.9 million and $38.6 million, respectively, related to foreign currency translation adjustments, a loss of $20.5 million and $33.2 million, respectively, related to the fair value of its interest rate swap agreements, and a gain of $0.1 million and a loss of $0.5 million, respectively, related to unrecognized post-retirement costs. Commitments and Contingencies The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Accounting Standards Updates Issued but Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The guidance in this ASU is optional and expedients may be elected over time through December 31, 2022, as reference rate reform activities occur. During the fourth quarter of FY2020, CACI elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives consistent with past presentation. Application of these expedients assisted in preserving the Company's presentation of derivatives as qualifying cash flow hedges. The Company continues to evaluate this guidance and may apply other elections, as applicable, as additional changes in the market occur . Accounting Standards Updates Adopted In August 2018, the Financial Accounting standards Board (FASB) issued Accounting standards update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 4. ACQUISITIONS Year Ended June 30, 2021 On August 11, 2020, CACI completed the acquisition of Ascent Vision Technologies (AVT) for a purchase price of approximately $348.8 million. AVT specializes in Electro-Optical Infrared payloads, On-Board Computer Vision Processing and counter-unmanned aircraft system (C-UAS) solutions. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $211.0 million to goodwill and $133.8 million to intangible assets. The goodwill of $211.0 million is largely attributable to the assembled workforce of AVT and expected synergies between the Company and AVT. The intangible assets consist of customer relationships of $65.7 million and technology of $68.1 million. The fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over approximately 10 years for technology. The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. Of the value attributed to goodwill and intangible assets, approximately $319.7 million is deductible for income tax purposes. Year Ended June 30, 2020 During the second quarter of FY2020, CACI completed three strategic acquisitions adding key capabilities in mission expertise and technology. The aggregate purchase consideration was approximately $109.4 million. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $70.3 million to goodwill and $29.5 million to intangible assets. Year Ended June 30, 2019 Domestic Acquisitions SE&A BU On August 15, 2018, CACI acquired certain assets of the systems engineering and acquisition support services business unit (SE&A BU) of CSRA LLC, a managed affiliate of General Dynamics Information Technology, Inc. for purchase consideration of $96.1 million. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $46.4 million to goodwill and $8.9 million to intangible assets. The intangible assets consist of customer relationships. Of the value attributed to goodwill and intangible assets, approximately $55.3 million is deductible for income tax purposes. Mastodon On January 29, 2019, CACI acquired all of the equity interests of Mastodon Design LLC (Mastodon) for a purchase consideration of $225.0 million, which includes a $220.0 million initial cash payment and $5.0 million of deferred consideration. Mastodon specializes in the rapid design of rugged tactical communications, signals intelligence (SIGINT) and electronic warfare (EW) equipment. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $139.2 million to goodwill and $83.9 million to intangible assets. The goodwill is largely attributable to the assembled workforce of Mastodon and expected synergies between the Company and Mastodon. The intangible assets consist of customer relationships of $19.8 million and technology of $64.1 million. The fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 9 years for technology. The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. Of the value attributed to goodwill and intangible assets, approximately $223.1 million is deductible for income tax purposes. LGS On March 1, 2019, CACI acquired all of the equity interests of Legos Intermediate Holdings, LLC and MDCP Legos Blocker, Inc., the parent companies of LGS Innovations (LGS). The purchase consideration was $758.2 million. LGS is a leading provider of SIGINT and cyber products and solutions to the Intelligence Community and Department of Defense. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $530.8 million to goodwill and $147.7 million to intangible assets. The goodwill is largely attributable to the assembled workforce of LGS and expected synergies between the Company and LGS. The intangible assets consist of customer relationships of $86.9 million and technology of $60.8 million. The estimated fair value attributed to intangible assets is being amortized on an accelerated basis over approximately 20 years for customer relationships and over a range of approximately 5 to 15 years for technology. The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. Of the value attributed to goodwill and intangible assets, approximately $599.9 million is deductible for income tax purposes. International Acquisitions Effective June 1, 2019 CACI Limited acquired 100 percent of the outstanding shares of Mood Enterprises Limited, a United Kingdom company that provides software and managed services to defense, national security and commercial organizations. Its technology platform improves enterprise transparency and enables significant improvement in business processes and is typically deployed in organizations with complex data environments where access to critical information in a timely manner is essential. The purchase consideration was approximately $9.1 million, which includes initial cash payments and deferred consideration. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable Net [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5. ACCOUNTS RECEIVABLE Total accounts receivable, net of allowance for doubtful accounts of $3.1 million, $3.0 million, and $4.2 million at June 30, 2021, 2020, and 2019, respectively, consisted of the following (in thousands): June 30, 2021 2020 Billed and billable receivables 763,921 779,339 Unbilled receivables 115,930 61,888 Total accounts receivable, current 879,851 841,227 Unbilled receivables, long-term 12,159 9,629 Total accounts receivable $ 892,010 $ 850,856 |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 6. GOODWILL The changes in the carrying amount of goodwill for the years ended June 30, 2021 and 2020 are as follows (in thousands): Domestic International Total Balance at June 30, 2019 $ 3,224,685 $ 111,394 $ 3,336,079 Goodwill acquired (1) 55,171 19,978 75,149 Foreign currency translation — (4,118 ) (4,118 ) Balance at June 30, 2020 $ 3,279,856 $ 127,254 $ 3,407,110 Goodwill acquired (1) 211,004 (1,478 ) 209,526 Foreign currency translation 887 15,055 15,942 Balance at June 30, 2021 $ 3,491,747 $ 140,831 $ 3,632,578 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2021 | |
Finite Lived Intangible Assets Net [Abstract] | |
INTANGIBLE ASSETS | NOTE 7. INTANGIBLE ASSETS Intangible assets consisted of the following (in thousands): June 30, 2021 (1) 2020 Intangible assets Customer contracts and related customer relationships $ 601,509 $ 570,562 Acquired technologies 198,273 129,925 Other 7 8 Intangible assets 799,789 700,495 Less accumulated amortization Customer contracts and related customer relationships (276,496 ) (271,708 ) Acquired technologies (47,185 ) (21,900 ) Other (2 ) (2 ) Accumulated amortization (323,683 ) (293,610 ) Total intangible assets, net $ 476,106 $ 406,885 (1) During FY2021, the Company removed $38.2 million in fully amortized intangible assets. Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to twenty years. The weighted-average period of amortization for customer contracts and related customer relationships as of June 30, 2021 is 17.8 years, and the weighted-average remaining period of amortization is 14.2 years. The weighted-average period of amortization for acquired technologies as of June 30, 2021 is 10.6 years, and the weighted-average remaining period of amortization is 8.8 years. Amortization expense for the years ended June 30, 2021, 2020 and 2019 was $67.5 million, $59.3 million and $45.8 million, respectively. Expected amortization expense for each of the fiscal years through June 30, 2026 and for years thereafter is as follows (in thousands): Amount Year ending June 30, 2022 $ 68,594 Year ending June 30, 2023 65,164 Year ending June 30, 2024 57,811 Year ending June 30, 2025 50,551 Year ending June 30, 2026 42,939 Thereafter 191,047 Total intangible assets, net $ 476,106 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 8. PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): June 30, 2021 2020 Equipment and furniture $ 234,721 $ 214,107 Leasehold improvements 187,542 160,723 Property and equipment, at cost 422,263 374,830 Less accumulated depreciation and amortization (231,819 ) (204,309 ) Total property and equipment, net $ 190,444 $ 170,521 Depreciation expense, including amortization of leasehold improvements, was $57.9 million, $49.4 million and $36.4 million for the years ended June 30, 2021, 2020 and 2019, respectively. |
ACCRUED COMPENSATION AND BENEFI
ACCRUED COMPENSATION AND BENEFITS | 12 Months Ended |
Jun. 30, 2021 | |
Employee Related Liabilities Current [Abstract] | |
ACCRUED COMPENSATION AND BENEFITS | NOTE 9. ACCRUED COMPENSATION AND BENEFITS Accrued compensation and benefits consisted of the following (in thousands): June 30, 2021 2020 Accrued salaries and withholdings $ 185,844 $ 178,293 Accrued leave 140,529 123,972 Accrued fringe benefits 36,342 36,495 Deferred payroll taxes 46,560 — Total accrued compensation and benefits $ 409,275 $ 338,760 |
OTHER ACCRUED EXPENSES AND CURR
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2021 | |
Other Accrued Expenses And Current Liabilities [Abstract] | |
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES | NOTE 10. OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES Other accrued expenses and current liabilities consisted of the following (in thousands): June 30, 2021 2020 Vendor obligations $ 68,001 $ 82,104 Deferred revenue (Note 12) 70,907 57,082 MARPA payable (Note 14) 62,159 57,020 Operating lease liabilities, current (Note 16) 61,280 67,549 Other 17,623 29,763 Total other accrued expenses and current liabilities $ 279,970 $ 293,518 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 11. REVENUE RECOGNITION We disaggregate our revenue arrangements by contract type, customer, and whether the Company performs on the contract as the prime or subcontractor. We believe that these categories allow for a better understanding of the nature, amount, timing, and uncertainty of revenue and cash flows arising from our contracts. Revenue by Contract Type The Company generated revenue on our cost-plus-fee, firm fixed-price, and time-and-materials contracts as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Cost-plus-fee $ 3,504,838 $ — $ 3,504,838 $ 3,274,707 $ — $ 3,274,707 Firm fixed-price 1,651,343 118,498 1,769,841 1,524,381 105,094 1,629,475 Time and materials 712,211 57,245 769,456 757,584 58,276 815,860 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Customer Information The Company generated revenue from our primary customer groups as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Department of Defense $ 4,185,292 $ — $ 4,185,292 $ 3,999,261 $ — $ 3,999,261 Federal civilian agencies 1,585,672 — 1,585,672 1,467,801 — 1,467,801 Commercial and other 97,428 175,743 273,171 89,610 163,370 252,980 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Prime or Subcontractor The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Prime contractor $ 5,284,761 $ 164,829 $ 5,449,590 $ 5,057,930 $ 153,436 $ 5,211,366 Subcontractor 583,631 10,914 594,545 498,742 9,934 508,676 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Expertise and Technology The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Expertise $ 2,901,204 $ 71,762 $ 2,972,966 $ 2,938,379 $ 63,133 $ 3,001,512 Technology 2,967,188 103,981 3,071,169 2,618,293 100,237 2,718,530 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Significant Estimates For many of our fixed price revenue arrangements and for revenue arrangements that have award or incentive fees, the Company uses an estimate at completion (EAC) to measure progress towards the complete satisfaction of its performance obligations. For these revenue arrangements, revenue is recognized over time primarily using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. The EAC process requires the Company to use professional judgment when assessing risks, estimating contract revenue and costs, estimating variable consideration, and making assumptions for schedule and technical issues. The Company periodically reassesses its EAC assumptions and updates its estimates as needed. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded. For the twelve months June 30, 2021 and 2020, we recognized an increase to income before income taxes of $44.1 million ($1.30 per diluted share) and $33.0 million ($0.95 per diluted share), respectively. The Company used its statutory tax rate when calculating the impact to diluted earnings per share. Revenue recognized from previously satisfied performance obligations was $2.5 million for the twelve months ended June 30, 2021, compared with $10.5 million for the twelve months ended June 30, 2020. The change in revenue generally relates to final true-up adjustments to our estimated award or incentive fees in the period in which we receive the customer’s final performance score or when we can determine that more objective, contractually-defined criteria have been fully satisfied. During the twelve months ended June 30, 2020, the Company received notification that certain contract close out risks had been mitigated on previously satisfied performance obligations and therefore recorded a reduction to its established reserve amount. Remaining Performance Obligations The Company’s remaining performance obligations balance as of period end represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an IDIQ vehicle. Our remaining performance obligations balance as of June 30, 2021 was $6.9 billion. The Company expects to recognize approximately 85 percent of our remaining performance obligations balance as revenue over the next year and the remaining 15 percent thereafter |
CONTRACT BALANCES
CONTRACT BALANCES | 12 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
CONTRACT BALANCES | NOTE 12. CONTRACT BALANCES Contract assets are primarily comprised of conditional unbilled receivables in which revenue has been recognized but an invoice has not yet been issued to the customer as of the balance sheet date. Contract assets exclude billed and billable receivables and are not stated above their net realizable value. Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation. Net contract assets (liabilities) consisted of the following (in thousands): Description of Contract Related Balance Financial Statement Classification June 30, 2021 June 30, 2020 Contract assets – current: Unbilled receivables Accounts receivable, net $ 115,930 $ 61,888 Costs to obtain – short-term Prepaid expenses and other current assets 4,144 3,492 Contract assets – noncurrent: Unbilled receivables Accounts receivable, long-term 12,159 9,629 Costs to obtain – long-term Other long-term assets 9,584 7,708 Contract liabilities – current: Deferred revenue and other contract liabilities – short-term Other accrued expenses and current liabilities (70,907 ) (57,082 ) Contract liabilities – noncurrent: Deferred revenue and other contract liabilities – long-term Other long-term liabilities (6,837 ) (6,507 ) Net contract assets (liabilities) $ 64,073 $ 19,128 For the year ended June 30, 2021 and 2020, respectively, we recognized $57.1 million and $48.7 million of revenue that was included in a previously recorded contract liability as of the beginning of the period. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 13. INVENTORIES Inventories consisted of the following (in thousands): June 30, 2021 2020 Materials, purchased parts and supplies $ 52,615 $ 36,692 Work in process 11,353 10,867 Finished goods 15,728 17,608 Total $ 79,696 $ 65,167 Inventories are stated at the lower of cost (average cost or first-in, first-out) or net realizable value and are included in prepaid expenses and other current assets on the accompanying consolidated balance sheets. The Company periodically assesses its current inventory balances and records a provision for damaged, deteriorated, or obsolete inventory based on historical patterns and forecasted sales. |
SALES OF RECEIVABLES
SALES OF RECEIVABLES | 12 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
SALES OF RECEIVABLES | NOTE 14. SALES OF RECEIVABLES On December 24, 2020, the Company amended its Master Accounts Receivable Purchase Agreement (MARPA) with MUFG Bank, Ltd. (the Purchaser), for the sale of certain designated eligible U.S. government receivables. The amendment extended the term of the MARPA to December 23, 2021. Under the MARPA, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $200.0 million. The Company’s receivables are sold under the MARPA without recourse for any U.S. government credit risk. The Company accounts for receivable transfers under the MARPA as sales under ASC 860, Transfers and Servicing The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore no servicing asset or liability related to these receivables was recognized as of June 30, 2021. Proceeds from the sold receivables are reflected in our operating cash flows on the statement of cash flows. MARPA activity consisted of the following (in thousands): As of and for the Year Ended June 30, 2021 2020 Beginning balance: $ 200,000 $ 192,527 Sales of receivables 2,741,518 2,393,684 Cash collections (2,759,491 ) (2,386,211 ) Outstanding balance sold to Purchaser: (1) 182,027 200,000 Cash collected, not remitted to Purchaser (2) (62,159 ) (57,020 ) Remaining sold receivables $ 119,868 $ 142,980 (1) For the year ended June 30, 2021 and 2020, the Company recorded a net cash outflow in its cash flows from operating activities of $18.0 million and a net cash inflow of $7.5 million, respectively, from sold receivables. MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year. (2) Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2021 and 2020. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jun. 30, 2021 | |
Long Term Debt [Abstract] | |
LONG-TERM DEBT | NOTE 15. LONG-TERM DEBT Long-term debt consisted of the following (in thousands): June 30, 2021 2020 Bank credit facility – term loans $ 797,635 $ 844,555 Bank credit facility – revolver loans 945,000 569,000 Principal amount of long-term debt 1,742,635 1,413,555 Less unamortized discounts and debt issuance costs (6,796 ) (9,116 ) Total long-term debt 1,735,839 1,404,439 Less current portion (46,920 ) (46,920 ) Long-term debt, net of current portion $ 1,688,919 $ 1,357,519 Bank Credit Facility The Company has a $2,438.4 million credit facility (the Credit Facility), which consists of a $1,500.0 million revolving credit facility (the Revolving Facility) and a $938.4 million term loan (the Term Loan). The Revolving Facility has sub-facilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $500.0 million or an amount subject to 3.50 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. The Credit Facility is available to refinance existing indebtedness and for general corporate purposes, including working capital expenses and capital expenditures. The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,500.0 million. As of June 30, 2021, the Company had $945.0 million outstanding under the Revolving Facility and no borrowings on the swing line. The Company pays a quarterly facility fee for the unused portion of the Revolving Facility. The Term Loan is a five-year The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable rate based upon the Company’s consolidated total leverage ratio. As of June 30, 2021, 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 2.33 percent. The Credit Facility requires the Company to comply with certain financial covenants, including a maximum total leverage ratio and a minimum interest coverage ratio. The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility. As of June 30, 2021, the Company was in compliance with all of the financial covenants. A majority of the Company’s assets serve as collateral under the Credit Facility. All debt issuance costs are being amortized from the date incurred to the expiration date of the Credit Facility. The aggregate maturities of long-term debt at June 30, 2021 are as follows (in thousands): Year ending June 30, 2022 $ 46,920 2023 46,920 2024 1,648,795 Principal amount of long-term debt 1,742,635 Less unamortized discounts and debt issuance costs (6,796 ) Total long-term debt $ 1,735,839 Cash Flow Hedges The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations. The Company has entered into several floating-to-fixed interest rate swap agreements for an aggregate notional amount of $800.0 million which hedge a portion of the Company’s floating rate indebtedness. The swaps mature at various dates through 2026. The Company has designated the swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed. Realized gains and losses in connection with each required interest payment are reclassified from accumulated other comprehensive income or loss to interest expense. The Company does not hold or issue derivative financial instruments for trading purposes. The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2021, 2020 and 2019 is as follows (in thousands): Interest Rate Swaps 2021 2020 2019 Gain (loss) recognized in other comprehensive income $ (1,458 ) $ (26,915 ) $ (14,011 ) Amounts reclassified to earnings from accumulated other comprehensive loss 14,211 2,635 (3,903 ) Net current period other comprehensive income (loss) $ 12,753 $ (24,280 ) $ (17,914 ) |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 16. LEASES All of the Company’s leases are operating leases. The current portion of operating lease liabilities is included in other accrued expenses and current liabilities in our consolidated balance sheets. Lease balances in our consolidated balance sheet are as follows (in thousands): June 30, 2021 2020 Operating lease right-of-use assets $ 356,887 $ 330,767 Operating lease liabilities, current 61,280 67,549 Operating lease liabilities, noncurrent 363,302 309,680 $ 424,582 $ 377,229 The Company’s total lease cost is recorded primarily within indirect costs and selling expenses and had the following impact on the consolidated statement of operations (in thousands): Fiscal Year Ended June 30, 2021 2020 Operating lease cost $ 89,254 $ 86,039 Short-term and variable lease cost 15,160 14,777 Sublease income (379 ) (1,201 ) Total lease cost $ 104,035 $ 99,615 The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2021 are as follows (in thousands): Year ending June 30: 2022 $ 72,160 2023 78,333 2024 71,953 2025 63,032 2026 53,540 Thereafter 127,808 Total undiscounted lease payments 466,826 Less: imputed interest (42,244 ) Total discounted lease liabilities $ 424,582 The weighted-average remaining lease term (in years) and weighted-average discount rate was 6.79 years and 2.76 percent, respectively. Cash paid for operating leases was $85.2 million for the year ended June 30, 2021. During the year ended June 30, 2021 operating lease liabilities arising from obtaining new ROU assets was $102.8 million, which includes all noncash changes arising from new or remeasured operating lease arrangements. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Noncurrent [Abstract] | |
OTHER LONG-TERM LIABILITIES | NOTE 17. OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following (in thousands): June 30, 2021 2020 Interest rate swap agreements $ 24,838 $ 43,168 Deferred and contingent acquisition consideration — 740 Deferred revenue 6,837 6,507 Deferred payroll taxes 46,560 40,594 Accrued post-retirement obligations 6,980 6,715 Reserve for unrecognized tax benefits 31,617 8,869 Transition tax 4,496 5,071 Other 17,024 17,040 Total other long-term liabilities $ 138,352 $ 128,704 Accrued post-retirement obligations include projected liabilities for benefits the Company is obligated to provide under long-term care, group health, and executive life insurance plans, each of which is unfunded. Plan benefits are provided to certain current and former executives, their dependents and other eligible employees, as defined. Post-retirement obligations also include accrued benefits under supplemental retirement benefit plans covering certain executives. The expense recorded under these plans was $1.3 million and $1.2 million during the years ended June 30, 2021 and 2020, respectively. The Company has entered into floating-to-fixed interest rate swap agreements related to a portion of the Company’s floating rate indebtedness (see Note 15). See Note 23 for fair values of the swap agreements as of June 30, 2021 and 2020. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 18. BUSINESS SEGMENTS Segment Information The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide information solutions and services to its customers. Its customers are primarily U.S. federal government agencies. Other customers of the Company’s domestic operations include commercial enterprises. The Company places employees in locations around the world in support of its customers. International operations offer services to both commercial and non-U.S. government customers primarily within the Company’s business systems and enterprise IT markets. The Company evaluates the performance of its operating segments based on net income. Summarized financial information concerning the Company’s reportable segments is shown in the following tables. Domestic Operations International Operations Total (in thousands) Year Ended June 30, 2021 Revenue from external customers $ 5,868,392 $ 175,743 $ 6,044,135 Net income 432,912 24,531 457,443 Net assets 2,461,048 204,230 2,665,278 Goodwill 3,491,747 140,831 3,632,578 Total long-term assets 4,665,782 175,414 4,841,196 Total assets 5,898,869 273,503 6,172,372 Capital expenditures 69,610 3,519 73,129 Depreciation and amortization 121,725 3,638 125,363 Year Ended June 30, 2020 Revenue from external customers $ 5,556,672 $ 163,370 $ 5,720,042 Net income 302,822 18,658 321,480 Net assets 2,482,283 179,027 2,661,310 Goodwill 3,279,856 127,254 3,407,110 Total long-term assets 4,297,885 158,701 4,456,586 Total assets 5,293,588 248,884 5,542,472 Capital expenditures 70,499 1,804 72,303 Depreciation and amortization 105,874 4,814 110,688 Year Ended June 30, 2019 Revenue from external customers $ 4,829,450 $ 156,891 $ 4,986,341 Net income 249,793 15,811 265,604 Net assets 2,206,109 165,357 2,371,466 Goodwill 3,224,685 111,394 3,336,079 Total long-term assets 3,927,783 127,540 4,055,323 Total assets 4,876,399 210,444 5,086,843 Capital expenditures 46,406 1,496 47,902 Depreciation and amortization 81,205 4,672 85,877 Interest income and interest expense are not presented above as the amounts attributable to the Company’s international operations are insignificant. Customer Information The Company earned 95.5 percent, 95.6 percent and 95.3 percent of its revenue from various agencies and departments of the U.S. government for the years ended June 30, 2021, 2020 and 2019, respectively. |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | NOTE 19. OTHER COMMITMENTS AND CONTINGENCIES General Legal Matters The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity. Government Contracting Payments to the Company on cost-plus-fee and T&M contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) and other government agencies that do not utilize DCAA’s services. The DCAA has completed audits of the Company’s annual incurred cost proposals through fiscal year 2019. We are still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe our reserves for such are adequate. In the opinion of management, adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues are identified, discussed and settled. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20. INCOME TAXES The Company changed its method of accounting related to the capitalization of property and equipment for its FY2020 U.S. federal income tax return (filed in the fourth quarter of FY2021), increasing its taxable income. Subsequently, the Company made a related change in its method of accounting that will result in a net operating loss (NOL) on its FY2021 income tax returns. Pursuant to provisions under the CARES Act, the U.S. federal income tax NOL generated in FY2021 will be carried back to tax years when the U.S. federal statutory income tax rate was greater than the current 21.0 percent. As a result of these method changes, in the fourth quarter of FY2021 the Company recorded a $56.2 million dollar income tax benefit and an income tax receivable of $232.6 million, which is included within prepaid expenses and other current assets on the accompanying consolidated balance sheet. The domestic and foreign components of income before provision for income taxes are as follows (in thousands): Year Ended June 30, 2021 2020 2019 Domestic $ 471,711 $ 379,414 $ 308,922 Foreign 27,904 22,223 18,987 Income before income taxes $ 499,615 $ 401,637 $ 327,909 The components of income tax expense are as follows (in thousands): Year Ended June 30, 2021 2020 2019 Current: Federal $ (94,143 ) $ 42,268 $ 41,675 State and local 19,958 14,744 17,606 Foreign 7,384 5,271 4,033 Total current (66,801 ) 62,283 63,314 Deferred: Federal 109,157 12,940 (27 ) State and local 185 5,465 (877 ) Foreign (369 ) (531 ) (105 ) Total deferred 108,973 17,874 (1,009 ) Total income tax expense $ 42,172 $ 80,157 $ 62,305 Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0 percent as a result of the following (in thousands): Year Ended June 30, 2021 2020 2019 Expected tax expense computed at federal statutory rate $ 104,919 $ 84,344 $ 68,861 State and local taxes, net of federal benefit 21,252 15,965 13,216 Remeasurement of current year NOL (56,192 ) — — Nonincludible and nondeductible items, net (2,269 ) 3,133 1,971 Remeasurement of deferred taxes and transition tax — — (2,182 ) Effect of foreign tax rates (687 ) (377 ) (380 ) R&D tax credit, net (18,173 ) (10,700 ) (6,755 ) Other tax credits (648 ) (1,183 ) (2,138 ) Stock-based compensation (5,525 ) (10,900 ) (7,493 ) Other (505 ) (125 ) (2,795 ) Total income tax expense $ 42,172 $ 80,157 $ 62,305 Effective income tax rate 8.4 % 20.0 % 19.0 % The effective income tax rate in FY2021, FY2020, and FY2019, was 8.4 percent, 20.0 percent, and 19.0 percent, respectively. The effective income tax rate decreased in FY2021 primarily as a result of the $56.2 million benefit related to the carryback of the federal income tax NOL under the CARES Act, as well as an increase in research and development tax credits for past and current year returns. The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands): June 30, 2021 2020 Deferred tax assets: Deferred compensation and post-retirement obligations $ 36,183 $ 33,094 Reserves and accruals 58,900 41,137 Stock-based compensation 11,767 9,860 NOL carryforward 39,123 — Lease liability 110,282 99,539 Interest rate swaps 6,800 11,349 Other assets 2,757 6,786 Total deferred tax assets 265,812 201,765 Deferred tax liabilities: Goodwill and other intangible assets (291,282 ) (273,088 ) Unbilled revenue (35,115 ) (17,429 ) Prepaid expenses (8,932 ) (6,444 ) Right of use assets (90,186 ) (85,275 ) Property and equipment (167,527 ) (32,625 ) Total deferred tax liabilities (593,042 ) (414,861 ) Net deferred tax liability $ (327,230 ) $ (213,096 ) As discussed above, the FY2021 change in method of accounting will result in net operating losses on the Company’s FY2021 tax returns. For state tax purposes, the related losses will be carried forward, thus a NOL carryforward was recorded. The increase in the property and equipment deferred tax liability largely relates to the Company's changes in method of accounting and represents income to be recognized in future years 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 the Internal Revenue Service for fiscal years 2017 through 2019. 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. U.S. income taxes have not been provided for undistributed earnings of foreign subsidiaries that have been permanently reinvested outside the United States. As of June 30, 2021, the estimated deferred tax liability associated with these undistributed earnings is approximately $1.9 million. Changes in the Company’s liability for unrecognized tax benefits is shown in the table below (in thousands): Year Ended June 30, 2021 2020 2019 Beginning of year $ 8,826 $ 1,530 $ 4,122 Additions based on current year tax positions 5,702 2,293 676 Lapse of statute of limitations — — (164 ) Additions based on prior year tax positions 20,025 5,003 — Reductions based on prior tax year positions — — (3,104 ) Settlement with taxing authorities (3,048 ) — — End of year $ 31,505 $ 8,826 $ 1,530 The Company’s total liability for unrecognized tax benefits as of June 30, 2021, 2020 and 2019 was approximately $ 31.5 million, $8.8 million and $1.5 million, respectively. During FY2021, the Company recognized an increase in reserves primarily related to current and prior year research and development tax credits. Any amount, if recognized, would positively impact the Company’s effective tax rate. The Company recognizes net interest and penalties as a component of income tax expense. Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at June 30, 2021. As of June 30, 2021, the entire balance of unrecognized tax benefits is included in other long-term liabilities. |
RETIREMENT SAVINGS PLANS
RETIREMENT SAVINGS PLANS | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
RETIREMENT SAVINGS PLANS | NOTE 21. RETIREMENT SAVINGS PLANS 401(k) Plan The Company maintains a defined contribution plan under Section 401(k) of the Internal Revenue Code, the CACI $MART Plan (the 401(k) Plan). Employees can contribute up to 75 percent (subject to certain statutory limitations) of their total cash compensation. The Company provides matching contributions equal to 50 percent of the amount of salary deferral employees elect, up to 8 percent of each employee’s total calendar year cash compensation, as defined. The Company may also make discretionary profit sharing contributions to the 401(k) Plan. Employee contributions vest immediately. Employer contributions vest in full after three- years The Company maintains several qualified 401(k) profit-sharing plans (PSP) that cover eligible employees. Employees are eligible to participate in the PSP beginning on the first of the month following the start of employment and attainment of age 18. Under the PSP, the Company may make discretionary contributions based on a percentage of the total compensation of all eligible participants. Company contribution expense for the year ended June 30, 2021, 2020 and 2019 was $42.7 million, $41.8 million and $32.0 million, respectively. Supplemental Savings Plan The Company maintains the Supplemental Savings Plan through which, on a calendar year basis, officers at the director level and above can elect to defer for contribution to the Supplemental Savings Plan up to 50 percent of their base compensation and up to 100 percent of their bonuses. The Company provides a contribution of 5 percent of compensation for each participant’s compensation that exceeds the limit as set forth in IRC 401(a)(17) (currently $290,000 per year). The Company also has the option to make annual discretionary contributions. Company contributions vest five-years Supplemental Savings Plan obligations due to participants totaled $124.0 million at June 30, 2021, of which $19.5 million is included in accrued compensation and benefits in the accompanying consolidated balance sheet. Supplemental Savings Plan obligations increased by $13.3 million during the year ended June 30, 2021, consisting of $10.2 million of investment gains, $12.8 million of participant compensation deferrals, and $2.0 million of Company contributions, offset by $11.7 million of distributions. The Company maintains COLI assets in a Rabbi Trust to offset the obligations under the Supplemental Savings Plan. The value of the COLI in the Rabbi Trust was $103.0 million at June 30, 2021 and COLI gains were $9.7 million for the year ended June 30, 2021. The value of the COLI in the Rabbi Trust was $96.4 million at June 30, 2020 and COLI gains were $4.7 million for the year ended June 30, 2020. Contribution expense for the Supplemental Savings Plan during the years ended June 30, 2021, 2020, and 2019, was $1.6 million, $1.9 million, and $1.6 million, respectively. |
STOCK PLANS AND STOCK-BASED COM
STOCK PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK PLANS AND STOCK-BASED COMPENSATION | NOTE 22. STOCK PLANS AND STOCK-BASED COMPENSATION Historically, the Company grants stock options, SSARs, non-performance-based RSUs and performance-based RSUs to key employees. Stock-based compensation expense is recognized on a straight-line basis ratably over the respective vesting periods. Performance-based RSUs are subject to achievement of a performance metric in addition to grantee service. Stock-based compensation expense for performance-based RSUs is recognized on an accelerated basis by treating each vesting tranche as if it was a separate grant. A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2021, 2020, and 2019, together with the income tax benefits realized, is as follows (in thousands): Year Ended June 30, 2021 2020 2019 Stock-based compensation included in indirect costs and selling expense: Restricted stock and RSU expense $ 30,463 $ 29,302 $ 25,272 Income tax benefit recognized for stock-based compensation $ 8,009 $ 5,849 $ 4,865 The Company recognizes the effect of expected forfeitures of equity grants by estimating an expected forfeiture rate for grants of equity instruments. Amounts recognized for expected forfeitures are subsequently adjusted periodically and at major vesting dates to reflect actual forfeitures. The incremental income tax benefits realized upon the exercise or vesting of equity instruments are reported as operating cash flows. During the years ended June 30, 2021, 2020, and 2019, the Company recognized $7.3 million, $13.5 million, and $9.2 million of excess tax benefits, respectively, which have been reported as operating cash inflows in the accompanying consolidated statements of cash flows. Equity Grants and Valuation Under the terms of its 2016 Amended and Restated Incentive Compensation Plan (the 2016 Plan), the Company may issue, among others, non-qualified stock options, restricted stock, RSUs, SSARs, and performance awards, collectively referred to herein as equity instruments. The 2016 Plan was approved by the Company’s stockholders in November 2016 and amended and restated the 2006 Stock Incentive Plan (the 2006 Plan) which was due to expire at the end of the ten-year Annual grants under the 2016 Plan and the 2006 Plan are generally made to the Company’s key employees during the first quarter of the Company’s fiscal year and to members of the Company’s Board of Directors during the second quarter of the Company’s fiscal year. With the approval of its Chief Executive Officer, the Company also issues equity instruments to strategic new hires and to employees who have demonstrated superior performance. Upon the vesting of restricted shares and RSUs, the Company fulfills its obligations under the equity instrument agreements by either issuing new shares of authorized common stock or by issuing shares from treasury. The total number of shares authorized by shareholders for grants under the 2016 Plan and its predecessor plan was 1,200,000 plus any forfeitures from the 2006 Plan. The aggregate number of grants that may be made may exceed this approved amount as forfeited restricted stock and RSUs become available for future grants. As of June 30, 2021, cumulative grants of 1,062,994 equity instruments underlying the shares authorized have been awarded, and 221,277 of these instruments have been forfeited. The Company granted performance-based stock awards to key employees in October of 2020, 2019 and 2018. The final number of RSUs that are earned by participants and vest is based on the achievement of a specified EPS for the fiscal year and on the average share price for the 90-day period ended for the following three years. If the 90-day average share price of the Company’s stock in years one, two and three exceeds the 90-day average share price at the grant date by 100 percent or more the number of shares ultimately awarded could range up to 200 percent of the specified target award. In addition to the performance and market conditions, there is a service vesting condition that stipulates 50 percent of the award will vest 3 years from the grant date and 50 percent will vest approximately 4 years from the grant date, depending on the award date. The annual performance-based awards granted for each of the fiscal years presented were as follows: Performance-based stock awards granted Number of additional shares earned under performance-based stock awards Fiscal year 2021 111,729 — Fiscal year 2020 108,844 — Fiscal year 2019 129,108 12,462 We account for stock-based payments to employees, including grants of employee stock awards and purchases under employee stock purchase plans, in accordance with ASC 718, Compensation-Stock Compensation, We determine the fair value of our market-based and performance-based RSUs at the date of grant using generally accepted valuation techniques and the closing market price of our stock. The fair value for the annual grant made in October 2020 was determined using a Monte Carlo simulation model incorporating the following factors: 90-day average stock price at the grant date of $216.00 a share, risk free rate of return of 0.16 percent and expected volatility of 31.95 percent. Stock-based compensation cost is recognized as expense on an accelerated basis over the requisite service period for performance-based awards. The weighted-average fair value of RSUs granted during the years ended June 30, 2021, 2020, and 2019, was $243.87, $252.25, and $201.27, respectively. The Company also issues equity instruments in the form of RSUs under its Management Stock Purchase Plan (MSPP) and Director Stock Purchase Plan (DSPP). In addition, annual grants are made to members of the Company’s Board of Directors in the form of a set dollar value of RSUs. Grants to members of the Board of Directors vest based on the passage of time and continued service as a Director of the Company. Restricted shares and most non-performance-based RSUs generally vest in full three years from the date of grant. Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2021, 2020, and 2019, together with the corresponding weighted-average fair values, are as follows: Restricted Stock and Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at June 30, 2018 663,987 $ 107.96 Granted 274,261 201.27 Vested (276,626 ) 61.85 Forfeited (32,816 ) 123.55 Unvested at June 30, 2019 628,806 $ 134.10 Granted 271,542 252.25 Vested (348,897 ) 77.33 Forfeited (49,528 ) 181.89 Unvested at June 30, 2020 501,923 $ 173.18 Granted 198,564 243.87 Vested (240,950 ) 99.55 Forfeited (33,566 ) 219.94 Unvested at June 30, 2021 425,971 $ 209.60 The total intrinsic value of RSUs that vested during the years ended June 30, 2021, 2020, and 2019 was $52.7 million, $79.6 million and $53.0 million, respectively, and the income tax benefit realized was $13.9 million, $15.9 million and $10.2 million, respectively. As of June 30, 2021, there was no unrecognized compensation cost related to SSARs and stock options and $38.6 million of unrecognized compensation cost related to restricted stock and RSUs scheduled to be recognized over a weighted-average period of 2.5 years. Stock Purchase Plans The Company adopted the 2002 Employee Stock Purchase Plan (ESPP), MSPP and DSPP in November 2002, and implemented these plans beginning July 1, 2003. There are 1,500,000, 500,000, and 75,000 shares authorized for grants under the ESPP, MSPP and DSPP, respectively. The ESPP allows eligible full-time employees to purchase shares of common stock at 95 percent of the fair market value of a share of common stock on the last day of the quarter. The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter. The ESPP is a qualified plan under Section 423 of the Internal Revenue Code and, for financial reporting purposes, was amended effective July 1, 2005 so as to be considered non-compensatory. Accordingly, there is no stock-based compensation expense associated with shares acquired under the ESPP. As of June 30, 2021, participants have purchased 1,258,062 shares under the ESPP, at a weighted-average price per share of $66.67. Of these shares, 40,658 were purchased by employees at a weighted-average price per share of $221.79 during the year ended June 30, 2021. During the year ended June 30, 2013, the Company established a 10b5-1 plan to facilitate the open market purchase of shares of Company stock to satisfy its obligations under the ESPP. The MSPP provides those senior executives with stock holding requirements a mechanism to receive RSUs in lieu of up to 100 percent of their annual bonus. For the fiscal years ended June 30, 2021, 2020, and 2019, RSUs awarded in lieu of bonuses earned were granted at 85 percent of the closing price of a share of the Company’s common stock on the date of the award, as reported by the New York Stock Exchange. RSUs granted under the MSPP vest at the earlier of 1) three-years Activity related to the MSPP during the year ended June 30, 2021 is as follows: MSPP RSUs outstanding, June 30, 2020 2,223 Granted 1,409 Issued (528 ) Forfeited (11 ) RSUs outstanding, June 30, 2021 3,093 Weighted average grant date fair value as adjusted for the applicable discount $ 185.45 The DSPP allows directors to elect to receive RSUs at the market price of the Company’s common stock on the date of the award in lieu of up to 100 percent of their annual retainer fees. Vested RSUs are settled in shares of common stock. There were no DSPP awards outstanding during the year ended June 30, 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 23. FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820, Fair Value Measurements and Disclosures 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 following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and June 30, 2020, and the level they fall within the fair value hierarchy (in thousands): As of June 30, Financial Statement Fair Value 2021 2020 Description of Financial Instrument Classification Hierarchy Fair Value Interest rate swap agreements Other accrued expenses and current liabilities Level 2 $ 1,028 $ — Interest rate swap agreements Other long-term liabilities Level 2 $ 24,838 $ 43,168 The Company entered into interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 24. EARNINGS PER SHARE Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data): Year Ended June 30, 2021 2020 2019 Net income $ 457,443 $ 321,480 $ 265,604 Weighted-average number of basic shares outstanding during the period 24,705 25,031 24,833 Dilutive effect of RSUs after application of treasury stock method 287 454 562 Weighted-average number of diluted shares outstanding during the period 24,992 25,485 25,395 Basic earnings per share $ 18.52 $ 12.84 $ 10.70 Diluted earnings per share $ 18.30 $ 12.61 $ 10.46 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jun. 30, 2021 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 25. QUARTERLY FINANCIAL DATA (UNAUDITED) This data is unaudited, but in the opinion of management, includes and reflects all adjustments that are normal and recurring in nature, and necessary, for a fair presentation of the selected data for these interim periods. Quarterly condensed financial operating results of the Company for the years ended June 30, 2021 and 2020, are presented below (in thousands except per share data). Year Ended June 30, 2021 First Second Third Fourth Revenue $ 1,459,506 $ 1,468,711 $ 1,551,918 $ 1,564,000 Income from operations $ 134,424 $ 141,539 $ 151,438 $ 112,050 Net income $ 93,644 $ 106,478 $ 120,344 $ 136,977 Basic earnings per share $ 3.73 $ 4.22 $ 4.83 $ 5.82 Diluted earnings per share $ 3.67 $ 4.18 $ 4.78 $ 5.74 Weighted-average shares outstanding: Basic 25,099 25,225 24,935 23,552 Diluted 25,486 25,451 25,166 23,856 Year Ended June 30, 2020 First Second Third Fourth Revenue $ 1,363,392 $ 1,395,469 $ 1,465,600 $ 1,495,581 Income from operations $ 100,157 $ 110,187 $ 113,676 $ 133,676 Net income $ 67,977 $ 79,195 $ 80,577 $ 93,731 Basic earnings per share $ 2.73 $ 3.16 $ 3.21 $ 3.74 Diluted earnings per share $ 2.66 $ 3.11 $ 3.16 $ 3.68 Weighted-average shares outstanding: Basic 24,894 25,065 25,078 25,089 Diluted 25,532 25,435 25,478 25,496 |
ACCELERATED SHARE REPURCHASE
ACCELERATED SHARE REPURCHASE | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Repurchase Agreements [Abstract] | |
ACCELERATED SHARE REPURCHASE | NOTE 26. ACCELERATED SHARE REPURCHASE On March 12, 2021, CACI entered into an accelerated share repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank, National Association (JPMorgan). Under the ASR Agreement, we paid $500.0 million to JPMorgan and received an initial delivery of approximately 1.7 million shares of our common stock, which shares were recorded as a $400.0 million increase to treasury stock. The final number of shares to be repurchased will be based on the volume-weighted average stock price of our common stock during the term of the agreement, less a discount. This is evaluated as an unsettled forward contract indexed to our own stock, with $100.0 million classified within stockholders’ equity as additional paid-in-capital. The ASR Agreement is scheduled to settle prior to the end of the second quarter of FY2022. At final settlement, JPMorgan may be required to deliver additional shares of our common stock to us or, under certain circumstances, we may elect to make a cash payment or deliver shares of our common stock to JPMorgan. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reported periods. The most significant of these estimates and assumptions relate to estimating contract revenue and costs, measuring progress against the Company’s performance obligations, assessing the fair value of acquired assets and liabilities accounted for through business acquisitions, valuing and determining the amortization periods for long-lived intangible assets, assessing the recoverability of long-lived assets, reserves for accounts receivable, and reserves for contract related matters. Management evaluates its estimates on an ongoing basis using the most current and available information. However, actual results may differ significantly from estimates. Changes in estimates are recorded in the period in which they become known. |
Revenue Recognition | Revenue Recognition The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials (T&M) contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services. We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires professional judgment and it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue. Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract. This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation. We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements. This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations. For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation. When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion method. For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided. When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation. Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program. |
Costs of Revenue | Costs of Revenue Costs of revenue includes all direct contract costs such as labor, materials, subcontractor costs, and indirect costs that are allowable and allocable to contracts under federal procurement standards. Costs of revenue also includes expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenue but are necessary for business operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at amounts earned less an allowance for doubtful accounts. The Company periodically reassesses its allowance for doubtful accounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract specific factors. Upon determination that a specific receivable is uncollectible, the receivable is written off against the allowance for doubtful accounts reserve. |
Contract Assets | Contract Assets Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables. In addition, the costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract (e.g., ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation. The incremental costs of obtaining a contract (e.g., sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception. Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value. |
Contract Liabilities | Contract Liabilities Contract liabilities primarily include advance payments received from a customer in excess of revenue that may be recognized as of the balance sheet date. The advance payment is subsequently recognized into revenue as the performance obligation is satisfied. |
Remaining Performance Obligations | Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end. The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle until such task orders are issued. The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied. The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations. Based on this analysis, an adjustment to the period end balance may be required. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all investments with an original maturity of three months or less on their trade date to be cash equivalents. The Company classifies investments with an original maturity of more than three months but less than twelve months on their trade date as short-term marketable securities. |
Accounting for Business Combinations and Goodwill | Accounting for Business Combinations and Goodwill The purchase price of an acquired business is allocated to the tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values, with the excess recorded as goodwill. Determining the fair value of the acquired intangibles requires significant judgment in selecting underlying assumptions, including projected revenue growth rates, profit margins, and discount rates. In some cases, the Company uses discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long-term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The Company evaluates goodwill at least annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation includes comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of such unit. The level at which the Company tests goodwill for impairment requires management to determine whether the operations below the operating segments constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results. If the fair value exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds its fair value, the goodwill of the reporting unit may be impaired. Impairment is measured by comparing the implied fair value of the goodwill to its carrying value. Separately identifiable intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if impairment indicators are present. As part of the annual assessment, the Company estimates the fair value of its reporting units using both an income approach and a market approach. The valuation process considers management’s estimates of the future operating performance of each reporting unit. Companies in similar industries are researched and analyzed and management considers the domestic and international economic and financial market conditions, both in general and specific to the industry in which the Company operates, prevailing as of the valuation date. The income approach utilizes discounted cash flows. The Company calculates a weighted average cost of capital for each reporting unit in order to estimate the discounted cash flows. The Company evaluates goodwill as of the first day of the fiscal fourth quarter. In addition, the Company will perform interim impairment testing should circumstances requiring it arise. The Company completed its annual goodwill assessment as of April 1, 2021 and no impairment charge was necessary as a result of this assessment. |
Leases | Leases The Company enters into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment. These arrangements contain a lease when the Company controls the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset. All of our leases are operating leases. The Company records a right of use (ROU) asset and lease liability as of the lease commencement date equal to the present value of the remaining lease payments. Most of our leases do not provide an implicit rate that can be readily determined. Therefore, we use a discount rate based on the Company’s incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. The ROU asset is then adjusted for initial direct costs and certain lease incentives included in the contractual arrangement. The Company has elected to not apply the lease recognition guidance for short-term equipment leases and to separate lease from non-lease components. Our operating lease arrangements may contain options to extend the lease term or for early termination. We account for these options when it is reasonably certain we will exercise them. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. Operating lease expense is recognized on a straight-line basis over the lease term and is recorded primarily within indirect costs and selling expenses on the consolidated statement of operations. Variable lease expenses are generally recorded in the period they are incurred and are excluded from the ROU asset and lease liability. |
Long-Lived Assets (Excluding Goodwill) | Long-Lived Assets (Excluding Goodwill) Long-lived assets such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Property and equipment is recorded at cost. Depreciation of equipment and furniture has been provided over the estimated useful life of the respective assets (ranging from three to eight years) using the straight-line method. Leasehold improvements are generally amortized using the straight-line method over the remaining lease term or the useful life of the improvements, whichever is shorter. Repairs and maintenance costs are expensed as incurred. Separately identifiable definite-lived intangible assets are amortized over their respective estimated useful lives. |
External Software Development Costs | External Software Development Costs Costs incurred in creating a software product to be sold or licensed for external use are expensed as incurred until technological feasibility has been established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. Thereafter, all such software development costs are capitalized and subsequently reported at the lower of unamortized cost or estimated net realizable value. Capitalized costs are amortized on a straight-line basis over the remaining estimated economic life of the product. |
Supplemental Retirement Savings Plan | Supplemental Retirement Savings Plan The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Savings Plan) and maintains the underlying assets in a Rabbi Trust. The Supplemental Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer and contribute a portion of their compensation, as permitted by the plan. Each participant directs his or her investments in the Supplemental Savings Plan (see Note 21). A Rabbi Trust is a grantor trust established to fund compensation for a select group of management. The assets of this trust are available to satisfy the claims of general creditors in the event of bankruptcy of the Company. The assets held by the Rabbi Trust are invested in corporate owned life insurance (COLI) products. The COLI products are recorded at cash surrender value in the consolidated financial statements as supplemental retirement savings plan assets. The amounts due to participants are based on contributions, participant investment elections, and other participant activity and are recorded as supplemental retirement savings plan obligations. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of assets and liabilities, and their respective tax bases, and operating loss and tax credit carry forwards. The Company accounts for tax contingencies in accordance with ASC 740-10-25, Income Taxes – Recognition |
Costs of Acquisitions | Costs of Acquisitions Costs associated with legal, financial and other professional advisors related to acquisitions, whether successful or unsuccessful, are expensed as incurred. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the weighted-average exchange rate during the period. The Company’s primary practice is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency fluctuations. The net translation gains and losses are not included in net income, but are accumulated as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are recorded as incurred in indirect costs and selling expenses in the accompanying consolidated statements of operations. |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive, including stock options and stock settled stock appreciation rights (SSARs) with an exercise price greater than the average market price of the Company’s common stock. Using the treasury stock method, diluted earnings per share includes the incremental effect of SSARs, stock options, restricted shares, and those restricted stock units (RSUs) that are no longer subject to a market or performance condition. Information about the weighted-average number of basic and diluted shares is presented in Note 24. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt under its bank credit facility approximates its carrying value at June 30, 2021. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk include accounts receivable and cash equivalents. Management believes that credit risk related to the Company’s accounts receivable is limited due to a large number of customers in differing segments and agencies of the U.S. government. Accounts receivable credit risk is also limited due to the credit worthiness of the U.S. government. Management believes the credit risk associated with the Company’s cash equivalents is limited due to the credit worthiness of the obligors of the investments underlying the cash equivalents. In addition, although the Company maintains cash balances at financial institutions that exceed federally insured limits, these balances are placed with high quality financial institutions. |
Accounting for Sales of Financial Assets | Accounting for Sales of Financial Assets The Company accounts for receivable transfers under its Master Accounts Receivable Purchase Agreement (MARPA) as sales under ASC 860, Transfers and Servicing |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive income (loss) refers to revenue, expenses, and gains and losses that under U.S. GAAP are included in comprehensive income, but excluded from the determination of net income. The elements within other comprehensive income consist of foreign currency translation adjustments; the changes in the fair value of interest rate swap agreements, net of tax of $4.5 million, $8.7 million and $6.4 million for the years ended June 30, 2021, 2020 and 2019, respectively; and differences between actual amounts and estimates based on actuarial assumptions and the effect of changes in actuarial assumptions made under the Company’s post-retirement benefit plans, net of tax (see Note 17). As of June 30, 2021 and 2020, accumulated other comprehensive loss included a loss of $15.9 million and $38.6 million, respectively, related to foreign currency translation adjustments, a loss of $20.5 million and $33.2 million, respectively, related to the fair value of its interest rate swap agreements, and a gain of $0.1 million and a loss of $0.5 million, respectively, related to unrecognized post-retirement costs. |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | Accounting Standards Updates Issued but Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The guidance in this ASU is optional and expedients may be elected over time through December 31, 2022, as reference rate reform activities occur. During the fourth quarter of FY2020, CACI elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives consistent with past presentation. Application of these expedients assisted in preserving the Company's presentation of derivatives as qualifying cash flow hedges. The Company continues to evaluate this guidance and may apply other elections, as applicable, as additional changes in the market occur . Accounting Standards Updates Adopted In August 2018, the Financial Accounting standards Board (FASB) issued Accounting standards update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable Net [Abstract] | |
Schedule of Total Accounts Receivable | Total accounts receivable, net of allowance for doubtful accounts of $3.1 million, $3.0 million, and $4.2 million at June 30, 2021, 2020, and 2019, respectively, consisted of the following (in thousands): June 30, 2021 2020 Billed and billable receivables 763,921 779,339 Unbilled receivables 115,930 61,888 Total accounts receivable, current 879,851 841,227 Unbilled receivables, long-term 12,159 9,629 Total accounts receivable $ 892,010 $ 850,856 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill | The changes in the carrying amount of goodwill for the years ended June 30, 2021 and 2020 are as follows (in thousands): Domestic International Total Balance at June 30, 2019 $ 3,224,685 $ 111,394 $ 3,336,079 Goodwill acquired (1) 55,171 19,978 75,149 Foreign currency translation — (4,118 ) (4,118 ) Balance at June 30, 2020 $ 3,279,856 $ 127,254 $ 3,407,110 Goodwill acquired (1) 211,004 (1,478 ) 209,526 Foreign currency translation 887 15,055 15,942 Balance at June 30, 2021 $ 3,491,747 $ 140,831 $ 3,632,578 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Finite Lived Intangible Assets Net [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): June 30, 2021 (1) 2020 Intangible assets Customer contracts and related customer relationships $ 601,509 $ 570,562 Acquired technologies 198,273 129,925 Other 7 8 Intangible assets 799,789 700,495 Less accumulated amortization Customer contracts and related customer relationships (276,496 ) (271,708 ) Acquired technologies (47,185 ) (21,900 ) Other (2 ) (2 ) Accumulated amortization (323,683 ) (293,610 ) Total intangible assets, net $ 476,106 $ 406,885 (1) During FY2021, the Company removed $38.2 million in fully amortized intangible assets. |
Expected Amortization Expense | Expected amortization expense for each of the fiscal years through June 30, 2026 and for years thereafter is as follows (in thousands): Amount Year ending June 30, 2022 $ 68,594 Year ending June 30, 2023 65,164 Year ending June 30, 2024 57,811 Year ending June 30, 2025 50,551 Year ending June 30, 2026 42,939 Thereafter 191,047 Total intangible assets, net $ 476,106 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): June 30, 2021 2020 Equipment and furniture $ 234,721 $ 214,107 Leasehold improvements 187,542 160,723 Property and equipment, at cost 422,263 374,830 Less accumulated depreciation and amortization (231,819 ) (204,309 ) Total property and equipment, net $ 190,444 $ 170,521 |
ACCRUED COMPENSATION AND BENE_2
ACCRUED COMPENSATION AND BENEFITS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Employee Related Liabilities Current [Abstract] | |
Schedule of Accrued Compensation and Benefits | Accrued compensation and benefits consisted of the following (in thousands): June 30, 2021 2020 Accrued salaries and withholdings $ 185,844 $ 178,293 Accrued leave 140,529 123,972 Accrued fringe benefits 36,342 36,495 Deferred payroll taxes 46,560 — Total accrued compensation and benefits $ 409,275 $ 338,760 |
OTHER ACCRUED EXPENSES AND CU_2
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Accrued Expenses And Current Liabilities [Abstract] | |
Schedule of Other Accrued Expenses and Current Liabilities | Other accrued expenses and current liabilities consisted of the following (in thousands): June 30, 2021 2020 Vendor obligations $ 68,001 $ 82,104 Deferred revenue (Note 12) 70,907 57,082 MARPA payable (Note 14) 62,159 57,020 Operating lease liabilities, current (Note 16) 61,280 67,549 Other 17,623 29,763 Total other accrued expenses and current liabilities $ 279,970 $ 293,518 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue by Contract Type, Customer Information,Prime or Subcontractor and Expertise and Technology | Revenue by Contract Type The Company generated revenue on our cost-plus-fee, firm fixed-price, and time-and-materials contracts as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Cost-plus-fee $ 3,504,838 $ — $ 3,504,838 $ 3,274,707 $ — $ 3,274,707 Firm fixed-price 1,651,343 118,498 1,769,841 1,524,381 105,094 1,629,475 Time and materials 712,211 57,245 769,456 757,584 58,276 815,860 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Customer Information The Company generated revenue from our primary customer groups as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Department of Defense $ 4,185,292 $ — $ 4,185,292 $ 3,999,261 $ — $ 3,999,261 Federal civilian agencies 1,585,672 — 1,585,672 1,467,801 — 1,467,801 Commercial and other 97,428 175,743 273,171 89,610 163,370 252,980 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Prime or Subcontractor The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Prime contractor $ 5,284,761 $ 164,829 $ 5,449,590 $ 5,057,930 $ 153,436 $ 5,211,366 Subcontractor 583,631 10,914 594,545 498,742 9,934 508,676 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 Expertise and Technology The Company generated revenue as either the prime or subcontractor as follows during the year ended June 30, 2021 and 2020 (in thousands): Year Ended June 30, 2021 Year Ended June 30, 2020 Domestic International Total Domestic International Total Expertise $ 2,901,204 $ 71,762 $ 2,972,966 $ 2,938,379 $ 63,133 $ 3,001,512 Technology 2,967,188 103,981 3,071,169 2,618,293 100,237 2,718,530 Total $ 5,868,392 $ 175,743 $ 6,044,135 $ 5,556,672 $ 163,370 $ 5,720,042 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Liabilities | Net contract assets (liabilities) consisted of the following (in thousands): Description of Contract Related Balance Financial Statement Classification June 30, 2021 June 30, 2020 Contract assets – current: Unbilled receivables Accounts receivable, net $ 115,930 $ 61,888 Costs to obtain – short-term Prepaid expenses and other current assets 4,144 3,492 Contract assets – noncurrent: Unbilled receivables Accounts receivable, long-term 12,159 9,629 Costs to obtain – long-term Other long-term assets 9,584 7,708 Contract liabilities – current: Deferred revenue and other contract liabilities – short-term Other accrued expenses and current liabilities (70,907 ) (57,082 ) Contract liabilities – noncurrent: Deferred revenue and other contract liabilities – long-term Other long-term liabilities (6,837 ) (6,507 ) Net contract assets (liabilities) $ 64,073 $ 19,128 |
INVENTORIES (Table)
INVENTORIES (Table) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): June 30, 2021 2020 Materials, purchased parts and supplies $ 52,615 $ 36,692 Work in process 11,353 10,867 Finished goods 15,728 17,608 Total $ 79,696 $ 65,167 |
SALES OF RECEIVABLES (Tables)
SALES OF RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Summary of MARPA Activity | MARPA activity consisted of the following (in thousands): As of and for the Year Ended June 30, 2021 2020 Beginning balance: $ 200,000 $ 192,527 Sales of receivables 2,741,518 2,393,684 Cash collections (2,759,491 ) (2,386,211 ) Outstanding balance sold to Purchaser: (1) 182,027 200,000 Cash collected, not remitted to Purchaser (2) (62,159 ) (57,020 ) Remaining sold receivables $ 119,868 $ 142,980 (1) For the year ended June 30, 2021 and 2020, the Company recorded a net cash outflow in its cash flows from operating activities of $18.0 million and a net cash inflow of $7.5 million, respectively, from sold receivables. MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year. (2) Includes the cash collected on behalf of but not yet remitted to the Purchaser as of June 30, 2021 and 2020. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Long Term Debt [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): June 30, 2021 2020 Bank credit facility – term loans $ 797,635 $ 844,555 Bank credit facility – revolver loans 945,000 569,000 Principal amount of long-term debt 1,742,635 1,413,555 Less unamortized discounts and debt issuance costs (6,796 ) (9,116 ) Total long-term debt 1,735,839 1,404,439 Less current portion (46,920 ) (46,920 ) Long-term debt, net of current portion $ 1,688,919 $ 1,357,519 |
Aggregate Maturities of Long-term Debt | The aggregate maturities of long-term debt at June 30, 2021 are as follows (in thousands): Year ending June 30, 2022 $ 46,920 2023 46,920 2024 1,648,795 Principal amount of long-term debt 1,742,635 Less unamortized discounts and debt issuance costs (6,796 ) Total long-term debt $ 1,735,839 |
Cash Flow Hedges | The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the years ended June 30, 2021, 2020 and 2019 is as follows (in thousands): Interest Rate Swaps 2021 2020 2019 Gain (loss) recognized in other comprehensive income $ (1,458 ) $ (26,915 ) $ (14,011 ) Amounts reclassified to earnings from accumulated other comprehensive loss 14,211 2,635 (3,903 ) Net current period other comprehensive income (loss) $ 12,753 $ (24,280 ) $ (17,914 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Lease Balances | Lease balances in our consolidated balance sheet are as follows (in thousands): June 30, 2021 2020 Operating lease right-of-use assets $ 356,887 $ 330,767 Operating lease liabilities, current 61,280 67,549 Operating lease liabilities, noncurrent 363,302 309,680 $ 424,582 $ 377,229 |
Summary of Lease Costs | The Company’s total lease cost is recorded primarily within indirect costs and selling expenses and had the following impact on the consolidated statement of operations (in thousands): Fiscal Year Ended June 30, 2021 2020 Operating lease cost $ 89,254 $ 86,039 Short-term and variable lease cost 15,160 14,777 Sublease income (379 ) (1,201 ) Total lease cost $ 104,035 $ 99,615 |
Schedule of Future Minimum Operating Lease Payments | The Company’s future minimum lease payments under non-cancelable operating leases at June 30, 2021 are as follows (in thousands): Year ending June 30: 2022 $ 72,160 2023 78,333 2024 71,953 2025 63,032 2026 53,540 Thereafter 127,808 Total undiscounted lease payments 466,826 Less: imputed interest (42,244 ) Total discounted lease liabilities $ 424,582 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): June 30, 2021 2020 Interest rate swap agreements $ 24,838 $ 43,168 Deferred and contingent acquisition consideration — 740 Deferred revenue 6,837 6,507 Deferred payroll taxes 46,560 40,594 Accrued post-retirement obligations 6,980 6,715 Reserve for unrecognized tax benefits 31,617 8,869 Transition tax 4,496 5,071 Other 17,024 17,040 Total other long-term liabilities $ 138,352 $ 128,704 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | Summarized financial information concerning the Company’s reportable segments is shown in the following tables. Domestic Operations International Operations Total (in thousands) Year Ended June 30, 2021 Revenue from external customers $ 5,868,392 $ 175,743 $ 6,044,135 Net income 432,912 24,531 457,443 Net assets 2,461,048 204,230 2,665,278 Goodwill 3,491,747 140,831 3,632,578 Total long-term assets 4,665,782 175,414 4,841,196 Total assets 5,898,869 273,503 6,172,372 Capital expenditures 69,610 3,519 73,129 Depreciation and amortization 121,725 3,638 125,363 Year Ended June 30, 2020 Revenue from external customers $ 5,556,672 $ 163,370 $ 5,720,042 Net income 302,822 18,658 321,480 Net assets 2,482,283 179,027 2,661,310 Goodwill 3,279,856 127,254 3,407,110 Total long-term assets 4,297,885 158,701 4,456,586 Total assets 5,293,588 248,884 5,542,472 Capital expenditures 70,499 1,804 72,303 Depreciation and amortization 105,874 4,814 110,688 Year Ended June 30, 2019 Revenue from external customers $ 4,829,450 $ 156,891 $ 4,986,341 Net income 249,793 15,811 265,604 Net assets 2,206,109 165,357 2,371,466 Goodwill 3,224,685 111,394 3,336,079 Total long-term assets 3,927,783 127,540 4,055,323 Total assets 4,876,399 210,444 5,086,843 Capital expenditures 46,406 1,496 47,902 Depreciation and amortization 81,205 4,672 85,877 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Loss Before Income Tax Expense | The domestic and foreign components of income before provision for income taxes are as follows (in thousands): Year Ended June 30, 2021 2020 2019 Domestic $ 471,711 $ 379,414 $ 308,922 Foreign 27,904 22,223 18,987 Income before income taxes $ 499,615 $ 401,637 $ 327,909 |
Schedule of Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended June 30, 2021 2020 2019 Current: Federal $ (94,143 ) $ 42,268 $ 41,675 State and local 19,958 14,744 17,606 Foreign 7,384 5,271 4,033 Total current (66,801 ) 62,283 63,314 Deferred: Federal 109,157 12,940 (27 ) State and local 185 5,465 (877 ) Foreign (369 ) (531 ) (105 ) Total deferred 108,973 17,874 (1,009 ) Total income tax expense $ 42,172 $ 80,157 $ 62,305 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0 percent as a result of the following (in thousands): Year Ended June 30, 2021 2020 2019 Expected tax expense computed at federal statutory rate $ 104,919 $ 84,344 $ 68,861 State and local taxes, net of federal benefit 21,252 15,965 13,216 Remeasurement of current year NOL (56,192 ) — — Nonincludible and nondeductible items, net (2,269 ) 3,133 1,971 Remeasurement of deferred taxes and transition tax — — (2,182 ) Effect of foreign tax rates (687 ) (377 ) (380 ) R&D tax credit, net (18,173 ) (10,700 ) (6,755 ) Other tax credits (648 ) (1,183 ) (2,138 ) Stock-based compensation (5,525 ) (10,900 ) (7,493 ) Other (505 ) (125 ) (2,795 ) Total income tax expense $ 42,172 $ 80,157 $ 62,305 Effective income tax rate 8.4 % 20.0 % 19.0 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands): June 30, 2021 2020 Deferred tax assets: Deferred compensation and post-retirement obligations $ 36,183 $ 33,094 Reserves and accruals 58,900 41,137 Stock-based compensation 11,767 9,860 NOL carryforward 39,123 — Lease liability 110,282 99,539 Interest rate swaps 6,800 11,349 Other assets 2,757 6,786 Total deferred tax assets 265,812 201,765 Deferred tax liabilities: Goodwill and other intangible assets (291,282 ) (273,088 ) Unbilled revenue (35,115 ) (17,429 ) Prepaid expenses (8,932 ) (6,444 ) Right of use assets (90,186 ) (85,275 ) Property and equipment (167,527 ) (32,625 ) Total deferred tax liabilities (593,042 ) (414,861 ) Net deferred tax liability $ (327,230 ) $ (213,096 ) |
Schedule of Unrecognized Tax Benefits | Changes in the Company’s liability for unrecognized tax benefits is shown in the table below (in thousands): Year Ended June 30, 2021 2020 2019 Beginning of year $ 8,826 $ 1,530 $ 4,122 Additions based on current year tax positions 5,702 2,293 676 Lapse of statute of limitations — — (164 ) Additions based on prior year tax positions 20,025 5,003 — Reductions based on prior tax year positions — — (3,104 ) Settlement with taxing authorities (3,048 ) — — End of year $ 31,505 $ 8,826 $ 1,530 |
STOCK PLANS AND STOCK-BASED C_2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Components of Stock-Based Compensation Expense and Related Tax Benefits | A summary of the components of stock-based compensation expense recognized during the years ended June 30, 2021, 2020, and 2019, together with the income tax benefits realized, is as follows (in thousands): Year Ended June 30, 2021 2020 2019 Stock-based compensation included in indirect costs and selling expense: Restricted stock and RSU expense $ 30,463 $ 29,302 $ 25,272 Income tax benefit recognized for stock-based compensation $ 8,009 $ 5,849 $ 4,865 |
Annual Performance-Based Awards Granted | The annual performance-based awards granted for each of the fiscal years presented were as follows: Performance-based stock awards granted Number of additional shares earned under performance-based stock awards Fiscal year 2021 111,729 — Fiscal year 2020 108,844 — Fiscal year 2019 129,108 12,462 |
Summary of Activity Related to Restricted Stock and RSUs | Changes in the number of unvested restricted stock and RSUs during each of the years in the three-year period ended June 30, 2021, 2020, and 2019, together with the corresponding weighted-average fair values, are as follows: Restricted Stock and Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at June 30, 2018 663,987 $ 107.96 Granted 274,261 201.27 Vested (276,626 ) 61.85 Forfeited (32,816 ) 123.55 Unvested at June 30, 2019 628,806 $ 134.10 Granted 271,542 252.25 Vested (348,897 ) 77.33 Forfeited (49,528 ) 181.89 Unvested at June 30, 2020 501,923 $ 173.18 Granted 198,564 243.87 Vested (240,950 ) 99.55 Forfeited (33,566 ) 219.94 Unvested at June 30, 2021 425,971 $ 209.60 |
Summary of Activity Related to MSPP | Activity related to the MSPP during the year ended June 30, 2021 is as follows: MSPP RSUs outstanding, June 30, 2020 2,223 Granted 1,409 Issued (528 ) Forfeited (11 ) RSUs outstanding, June 30, 2021 3,093 Weighted average grant date fair value as adjusted for the applicable discount $ 185.45 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and June 30, 2020, and the level they fall within the fair value hierarchy (in thousands): As of June 30, Financial Statement Fair Value 2021 2020 Description of Financial Instrument Classification Hierarchy Fair Value Interest rate swap agreements Other accrued expenses and current liabilities Level 2 $ 1,028 $ — Interest rate swap agreements Other long-term liabilities Level 2 $ 24,838 $ 43,168 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data): Year Ended June 30, 2021 2020 2019 Net income $ 457,443 $ 321,480 $ 265,604 Weighted-average number of basic shares outstanding during the period 24,705 25,031 24,833 Dilutive effect of RSUs after application of treasury stock method 287 454 562 Weighted-average number of diluted shares outstanding during the period 24,992 25,485 25,395 Basic earnings per share $ 18.52 $ 12.84 $ 10.70 Diluted earnings per share $ 18.30 $ 12.61 $ 10.46 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Condensed Financial Operating Results | Quarterly condensed financial operating results of the Company for the years ended June 30, 2021 and 2020, are presented below (in thousands except per share data). Year Ended June 30, 2021 First Second Third Fourth Revenue $ 1,459,506 $ 1,468,711 $ 1,551,918 $ 1,564,000 Income from operations $ 134,424 $ 141,539 $ 151,438 $ 112,050 Net income $ 93,644 $ 106,478 $ 120,344 $ 136,977 Basic earnings per share $ 3.73 $ 4.22 $ 4.83 $ 5.82 Diluted earnings per share $ 3.67 $ 4.18 $ 4.78 $ 5.74 Weighted-average shares outstanding: Basic 25,099 25,225 24,935 23,552 Diluted 25,486 25,451 25,166 23,856 Year Ended June 30, 2020 First Second Third Fourth Revenue $ 1,363,392 $ 1,395,469 $ 1,465,600 $ 1,495,581 Income from operations $ 100,157 $ 110,187 $ 113,676 $ 133,676 Net income $ 67,977 $ 79,195 $ 80,577 $ 93,731 Basic earnings per share $ 2.73 $ 3.16 $ 3.21 $ 3.74 Diluted earnings per share $ 2.66 $ 3.11 $ 3.16 $ 3.68 Weighted-average shares outstanding: Basic 24,894 25,065 25,078 25,089 Diluted 25,532 25,435 25,478 25,496 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Amount of tax expense (benefit) for changes in the fair value of interest rate swap agreements | $ 4.5 | $ (8.7) | $ (6.4) |
Accumulated other comprehensive loss related to foreign currency translation adjustments | (15.9) | (38.6) | |
Accumulated other comprehensive loss related to fair value of interest rate swaps | (20.5) | (33.2) | |
Accumulated other comprehensive gain (loss) related to unrecognized post-retirement plan costs | $ 0.1 | $ (0.5) | |
Equipment and furniture | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | from three to eight years | ||
Leasehold improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | over the remaining lease term or the useful life of the improvements, whichever is shorter |
ACQUISITIONS (Detail Textual)
ACQUISITIONS (Detail Textual) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)Acquisition | Jun. 30, 2019USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,632,578 | $ 3,407,110 | $ 3,336,079 |
Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Weighted-average amortization period | 17 years 9 months 18 days | ||
Technology | |||
Business Acquisition [Line Items] | |||
Weighted-average amortization period | 10 years 7 months 6 days | ||
AVT | |||
Business Acquisition [Line Items] | |||
Acquisition date | Aug. 11, 2020 | ||
Goodwill | $ 211,000 | ||
Identifiable intangible assets | 133,800 | ||
Purchase consideration | 348,800 | ||
Amount of tax deductible goodwill and intangibles | 319,700 | ||
AVT | Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 65,700 | ||
Weighted-average amortization period | 20 years | ||
AVT | Technology | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 68,100 | ||
Weighted-average amortization period | 10 years | ||
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Goodwill | 70,300 | ||
Identifiable intangible assets | 29,500 | ||
Purchase consideration | $ 109,400 | ||
Number of strategic acquisitions | Acquisition | 3 |
ACQUISITIONS (Detail Textual 1)
ACQUISITIONS (Detail Textual 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2019 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,632,578 | $ 3,336,079 | $ 3,407,110 |
Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 17 years 9 months 18 days | ||
Technology | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 10 years 7 months 6 days | ||
SE&A BU | |||
Business Acquisition [Line Items] | |||
Acquisition date | Aug. 15, 2018 | ||
Purchase consideration | $ 96,100 | ||
Goodwill | 46,400 | ||
Amount of tax deductible goodwill and intangibles | 55,300 | ||
Identifiable intangible assets | $ 8,900 | ||
Mastodon | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jan. 29, 2019 | ||
Purchase consideration | $ 225,000 | ||
Goodwill | 139,200 | ||
Amount of tax deductible goodwill and intangibles | 223,100 | ||
Identifiable intangible assets | 83,900 | ||
Cash consideration | 220,000 | ||
Deferred consideration | 5,000 | ||
Mastodon | Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 19,800 | ||
Amortization period of acquired intangible assets | 20 years | ||
Mastodon | Technology | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 64,100 | ||
Mastodon | Technology | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 5 years | ||
Mastodon | Technology | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 9 years |
ACQUISITIONS (Detail Textual 2)
ACQUISITIONS (Detail Textual 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2019 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,632,578 | $ 3,336,079 | $ 3,407,110 |
Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 17 years 9 months 18 days | ||
Technology | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 10 years 7 months 6 days | ||
LGS | |||
Business Acquisition [Line Items] | |||
Purchase consideration | 758,200 | ||
Goodwill | 530,800 | ||
Amount of tax deductible goodwill and intangibles | 599,900 | ||
LGS | Customer contracts and related customer relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 86,900 | ||
Amortization period of acquired intangible assets | 20 years | ||
LGS | Technology | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 60,800 | ||
LGS | Technology | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 5 years | ||
LGS | Technology | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization period of acquired intangible assets | 15 years |
ACQUISITIONS (Detail Textual 3)
ACQUISITIONS (Detail Textual 3) - International Acquisitions $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Business Acquisition [Line Items] | |
Acquisition date | Jun. 1, 2019 |
Percentage of outstanding shares acquired | 100.00% |
Purchase consideration | $ 9.1 |
ACCOUNTS RECEIVABLE (Detail Tex
ACCOUNTS RECEIVABLE (Detail Textual) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Accounts Receivable Net [Abstract] | |||
Allowance for doubtful accounts receivable | $ 3.1 | $ 3 | $ 4.2 |
ACCOUNTS RECEIVABLE - Schedule
ACCOUNTS RECEIVABLE - Schedule of Total Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Accounts Receivable Net [Abstract] | ||
Billed and billable receivables | $ 763,921 | $ 779,339 |
Unbilled receivables | 115,930 | 61,888 |
Total accounts receivable, current | 879,851 | 841,227 |
Unbilled receivables, long-term | 12,159 | 9,629 |
Total accounts receivable | $ 892,010 | $ 850,856 |
GOODWILL - Roll Forward of Good
GOODWILL - Roll Forward of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Goodwill [Roll Forward] | |||
Balance | $ 3,407,110 | $ 3,336,079 | |
Goodwill acquired | [1] | 209,526 | 75,149 |
Foreign currency translation | 15,942 | (4,118) | |
Balance | 3,632,578 | 3,407,110 | |
Domestic | |||
Goodwill [Roll Forward] | |||
Balance | 3,279,856 | 3,224,685 | |
Goodwill acquired | [1] | 211,004 | 55,171 |
Foreign currency translation | 887 | ||
Balance | 3,491,747 | 3,279,856 | |
International | |||
Goodwill [Roll Forward] | |||
Balance | 127,254 | 111,394 | |
Goodwill acquired | [1] | (1,478) | 19,978 |
Foreign currency translation | 15,055 | (4,118) | |
Balance | $ 140,831 | $ 127,254 | |
[1] | Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | [1] | Jun. 30, 2020 |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 799,789 | $ 700,495 | |
Less accumulated amortization | (323,683) | (293,610) | |
Total intangible assets, net | 476,106 | 406,885 | |
Customer contracts and related customer relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 601,509 | 570,562 | |
Less accumulated amortization | (276,496) | (271,708) | |
Acquired technologies | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 198,273 | 129,925 | |
Less accumulated amortization | (47,185) | (21,900) | |
Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 7 | 8 | |
Less accumulated amortization | $ (2) | $ (2) | |
[1] | During FY2021, the Company removed $38.2 million in fully amortized intangible assets. |
INTANGIBLE ASSETS - Summary o_2
INTANGIBLE ASSETS - Summary of Intangible Assets (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Finite Lived Intangible Assets Net [Abstract] | |
Removal of fully amortized intangible assets | $ 38.2 |
INTANGIBLE ASSETS (Detail Textu
INTANGIBLE ASSETS (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 67.5 | $ 59.3 | $ 45.8 |
Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible asset amortization period | 1 year | ||
Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible asset amortization period | 20 years | ||
Customer contracts and related customer relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 17 years 9 months 18 days | ||
Weighted-average remaining amortization period | 14 years 2 months 12 days | ||
Acquired technologies | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 10 years 7 months 6 days | ||
Weighted-average remaining amortization period | 8 years 9 months 18 days |
INTANGIBLE ASSETS - Expected Am
INTANGIBLE ASSETS - Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite Lived Intangible Assets Net [Abstract] | |||
Year ending June 30, 2022 | $ 68,594 | ||
Year ending June 30, 2023 | 65,164 | ||
Year ending June 30, 2024 | 57,811 | ||
Year ending June 30, 2025 | 50,551 | ||
Year ending June 30, 2026 | 42,939 | ||
Thereafter | 191,047 | ||
Total intangible assets, net | $ 476,106 | [1] | $ 406,885 |
[1] | During FY2021, the Company removed $38.2 million in fully amortized intangible assets. |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Property Plant And Equipment [Abstract] | ||
Equipment and furniture | $ 234,721 | $ 214,107 |
Leasehold improvements | 187,542 | 160,723 |
Property and equipment, at cost | 422,263 | 374,830 |
Less accumulated depreciation and amortization | (231,819) | (204,309) |
Total property and equipment, net | $ 190,444 | $ 170,521 |
PROPERTY AND EQUIPMENT (Detail
PROPERTY AND EQUIPMENT (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 57.9 | $ 49.4 | $ 36.4 |
ACCRUED COMPENSATION AND BENE_3
ACCRUED COMPENSATION AND BENEFITS - Schedule of Accrued Compensation and Benefits (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Employee Related Liabilities Current [Abstract] | ||
Accrued salaries and withholdings | $ 185,844 | $ 178,293 |
Accrued leave | 140,529 | 123,972 |
Accrued fringe benefits | 36,342 | 36,495 |
Deferred payroll taxes | 46,560 | |
Total accrued compensation and benefits | $ 409,275 | $ 338,760 |
OTHER ACCRUED EXPENSES AND CU_3
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES - Schedule of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Other Accrued Expenses And Current Liabilities [Abstract] | ||
Vendor obligations | $ 68,001 | $ 82,104 |
Deferred revenue (Note 12) | 70,907 | 57,082 |
MARPA payable (Note 14) | 62,159 | 57,020 |
Operating lease liabilities, current | 61,280 | 67,549 |
Other | 17,623 | 29,763 |
Total other accrued expenses and current liabilities | $ 279,970 | $ 293,518 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 1,564,000 | $ 1,551,918 | $ 1,468,711 | $ 1,459,506 | $ 1,495,581 | $ 1,465,600 | $ 1,395,469 | $ 1,363,392 | $ 6,044,135 | $ 5,720,042 | $ 4,986,341 |
Expertise | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 2,972,966 | 3,001,512 | |||||||||
Technology | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 3,071,169 | 2,718,530 | |||||||||
Prime contractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 5,449,590 | 5,211,366 | |||||||||
Subcontractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 594,545 | 508,676 | |||||||||
Department of Defense | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 4,185,292 | 3,999,261 | |||||||||
Federal civilian agencies | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,585,672 | 1,467,801 | |||||||||
Commercial and other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 273,171 | 252,980 | |||||||||
Cost-plus-fee | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 3,504,838 | 3,274,707 | |||||||||
Firm fixed-price | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,769,841 | 1,629,475 | |||||||||
Time and materials | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 769,456 | 815,860 | |||||||||
Domestic | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 5,868,392 | 5,556,672 | 4,829,450 | ||||||||
Domestic | Expertise | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 2,901,204 | 2,938,379 | |||||||||
Domestic | Technology | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 2,967,188 | 2,618,293 | |||||||||
Domestic | Prime contractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 5,284,761 | 5,057,930 | |||||||||
Domestic | Subcontractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 583,631 | 498,742 | |||||||||
Domestic | Department of Defense | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 4,185,292 | 3,999,261 | |||||||||
Domestic | Federal civilian agencies | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,585,672 | 1,467,801 | |||||||||
Domestic | Commercial and other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 97,428 | 89,610 | |||||||||
Domestic | Cost-plus-fee | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 3,504,838 | 3,274,707 | |||||||||
Domestic | Firm fixed-price | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,651,343 | 1,524,381 | |||||||||
Domestic | Time and materials | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 712,211 | 757,584 | |||||||||
International | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 175,743 | 163,370 | $ 156,891 | ||||||||
International | Expertise | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 71,762 | 63,133 | |||||||||
International | Technology | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 103,981 | 100,237 | |||||||||
International | Prime contractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 164,829 | 153,436 | |||||||||
International | Subcontractor | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 10,914 | 9,934 | |||||||||
International | Commercial and other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 175,743 | 163,370 | |||||||||
International | Firm fixed-price | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 118,498 | 105,094 | |||||||||
International | Time and materials | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 57,245 | $ 58,276 |
REVENUE RECOGNITION (Detail Tex
REVENUE RECOGNITION (Detail Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Change In Accounting Estimate [Line Items] | |||||||||||
Income before income taxes | $ 499,615 | $ 401,637 | $ 327,909 | ||||||||
Diluted earnings per share | $ 5.74 | $ 4.78 | $ 4.18 | $ 3.67 | $ 3.68 | $ 3.16 | $ 3.11 | $ 2.66 | $ 18.30 | $ 12.61 | $ 10.46 |
EAC Adjustments | |||||||||||
Change In Accounting Estimate [Line Items] | |||||||||||
Income before income taxes | $ 44,100 | $ 33,000 | |||||||||
Diluted earnings per share | $ 1.30 | $ 0.95 | |||||||||
Revenue from previously satisfied performance obligations | $ 2,500 | $ 10,500 |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations (Detail) $ in Billions | Jun. 30, 2021USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining performance obligations | $ 6.9 |
REVENUE - Remaining Performan_2
REVENUE - Remaining Performance Obligations (Detail 1) | Jun. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 85.00% |
Remaining performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 15.00% |
Remaining performance obligations, expected timing of satisfaction |
CONTRACT BALANCES - Contract As
CONTRACT BALANCES - Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Contract assets – current: | ||
Unbilled receivables | $ 115,930 | $ 61,888 |
Costs to obtain – short-term | 4,144 | 3,492 |
Contract assets – noncurrent: | ||
Unbilled receivables | 12,159 | 9,629 |
Costs to obtain – long-term | 9,584 | 7,708 |
Contract liabilities – current: | ||
Deferred revenue and other contract liabilities – short-term | (70,907) | (57,082) |
Contract liabilities – noncurrent: | ||
Deferred revenue and other contract liabilities – long-term | (6,837) | (6,507) |
Net contract assets (liabilities) | $ 64,073 | $ 19,128 |
CONTRACT BALANCES (Detail Textu
CONTRACT BALANCES (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Liability, revenue recognized | $ 57.1 | $ 48.7 |
INVENTORIES - COMPONENTS OF INV
INVENTORIES - COMPONENTS OF INVENTORIES (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Materials, purchased parts and supplies | $ 52,615 | $ 36,692 |
Work in process | 11,353 | 10,867 |
Finished goods | 15,728 | 17,608 |
Total | $ 79,696 | $ 65,167 |
SALES OF RECEIVABLES (Detail Te
SALES OF RECEIVABLES (Detail Textual) $ in Millions | Dec. 24, 2020USD ($) |
MARPA | |
MARPA maturity date | Dec. 23, 2021 |
MARPA maximum commitment | $ 200 |
SALES OF RECEIVABLES - Summary
SALES OF RECEIVABLES - Summary of MARPA Activity (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Transfers And Servicing Of Financial Assets [Abstract] | |||
Outstanding balance sold to Purchaser | $ 182,027 | $ 200,000 | $ 192,527 |
Sales of receivables | 2,741,518 | 2,393,684 | |
Cash collections | (2,759,491) | (2,386,211) | |
Cash collected, not remitted to Purchaser | (62,159) | (57,020) | |
Remaining sold receivables | $ 119,868 | $ 142,980 |
SALES OF RECEIVABLES - Summar_2
SALES OF RECEIVABLES - Summary of MARPA Activity (Parentheticals) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Transfers And Servicing Of Financial Assets [Abstract] | ||
Cash provided (used) by MARPA | $ (18) | $ 7.5 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 1,742,635 | $ 1,413,555 |
Less unamortized discounts and debt issuance costs | (6,796) | (9,116) |
Total long-term debt | 1,735,839 | 1,404,439 |
Less current portion | (46,920) | (46,920) |
Long-term debt, net of current portion | 1,688,919 | 1,357,519 |
Bank credit facility - term loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | 797,635 | 844,555 |
Bank credit facility - revolver loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 945,000 | $ 569,000 |
LONG-TERM DEBT (Detail Textual)
LONG-TERM DEBT (Detail Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||
Outstanding amount under Credit Facility | $ 1,742,635,000 | $ 1,413,555,000 |
Interest Rate Swap | Cash Flow Hedging | ||
Debt Instrument [Line Items] | ||
Aggregate notional amount | 800,000,000 | |
Bank Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 2,438,400,000 | |
Credit facility borrowing capacity, description | At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $500.0 million or an amount subject to 3.50 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. | |
Credit Facility optional increases to borrowing capacity | $ 500,000,000 | |
Ratio that restricts optional increases to borrowing capacity | 350.00% | |
Outstanding borrowings interest rate | 2.33% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 1,500,000,000 | |
Outstanding amount under Credit Facility | 945,000,000 | 569,000,000 |
Term loans | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | 938,400,000 | |
Outstanding amount under Credit Facility | $ 797,635,000 | $ 844,555,000 |
Term loan period | 5 years | |
Loan maturity date | Jun. 30, 2024 | |
Term loan frequency of payment | quarterly | |
Term loan principal payment | $ 11,700,000 | |
Same-Day Swing Line Loan Revolving Credit Sub-Facility | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | 100,000,000 | |
Outstanding amount under Credit Facility | 0 | |
Stand-By Letters Of Credit Revolving Credit Sub-Facility | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 25,000,000 |
LONG-TERM DEBT - Aggregate Matu
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Detail ) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Long Term Debt [Abstract] | ||
2022 | $ 46,920 | |
2023 | 46,920 | |
2024 | 1,648,795 | |
Principal amount of long-term debt | 1,742,635 | $ 1,413,555 |
Less unamortized discounts and debt issuance costs | (6,796) | (9,116) |
Total long-term debt | $ 1,735,839 | $ 1,404,439 |
LONG-TERM DEBT - Cash Flow Hedg
LONG-TERM DEBT - Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Long Term Debt [Abstract] | |||
Gain (loss) recognized in other comprehensive income | $ (1,458) | $ (26,915) | $ (14,011) |
Amounts reclassified to earnings from accumulated other comprehensive loss | 14,211 | 2,635 | (3,903) |
Net current period other comprehensive income (loss) | $ 12,753 | $ (24,280) | $ (17,914) |
LEASES - Summary of Lease Balan
LEASES - Summary of Lease Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 356,887 | $ 330,767 |
Operating lease liabilities, current | $ 61,280 | $ 67,549 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember |
Operating lease liabilities, noncurrent | $ 363,302 | $ 309,680 |
Operating lease liabilities | $ 424,582 | $ 377,229 |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 89,254 | $ 86,039 |
Short-term and variable lease cost | 15,160 | 14,777 |
Sublease income | (379) | (1,201) |
Total lease cost | $ 104,035 | $ 99,615 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Operating Lease Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 72,160 | |
2023 | 78,333 | |
2024 | 71,953 | |
2025 | 63,032 | |
2026 | 53,540 | |
Thereafter | 127,808 | |
Total undiscounted lease payments | 466,826 | |
Less: imputed interest | (42,244) | |
Total discounted lease liabilities | $ 424,582 | $ 377,229 |
LEASES (Detail Textual)
LEASES (Detail Textual) $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 6 years 9 months 14 days |
Operating lease, weighted average discount rate | 2.76% |
Cash paid for operating leases | $ 85.2 |
Operating lease liabilities arising from obtaining new ROU assets | $ 102.8 |
OTHER LONG-TERM LIABILITIES - S
OTHER LONG-TERM LIABILITIES - Schedule of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Other Liabilities Noncurrent [Abstract] | ||
Interest rate swap agreements | $ 24,838 | $ 43,168 |
Deferred and contingent acquisition consideration | 740 | |
Deferred revenue | 6,837 | 6,507 |
Deferred payroll taxes | 46,560 | 40,594 |
Accrued post-retirement obligations | 6,980 | 6,715 |
Reserve for unrecognized tax benefits | 31,617 | 8,869 |
Transition tax | 4,496 | 5,071 |
Other | 17,024 | 17,040 |
Total other long-term liabilities | $ 138,352 | $ 128,704 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other Liabilities Noncurrent [Abstract] | ||
Net periodic post-retirement benefit cost | $ 1.3 | $ 1.2 |
BUSINESS SEGMENTS (Detail Textu
BUSINESS SEGMENTS (Detail Textual) - Segment | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Segments | |||
Number of reportable segments | 2 | ||
U.S. Government | Sales | |||
Business Segments | |||
Percentage of revenue | 95.50% | 95.60% | 95.30% |
BUSINESS SEGMENTS - Summarized
BUSINESS SEGMENTS - Summarized Financial Information of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from external customers | $ 1,564,000 | $ 1,551,918 | $ 1,468,711 | $ 1,459,506 | $ 1,495,581 | $ 1,465,600 | $ 1,395,469 | $ 1,363,392 | $ 6,044,135 | $ 5,720,042 | $ 4,986,341 | |
Net income | 136,977 | $ 120,344 | $ 106,478 | $ 93,644 | 93,731 | $ 80,577 | $ 79,195 | $ 67,977 | 457,443 | 321,480 | 265,604 | |
Net assets | 2,665,278 | 2,661,310 | 2,665,278 | 2,661,310 | 2,371,466 | $ 2,106,887 | ||||||
Goodwill | 3,632,578 | 3,407,110 | 3,632,578 | 3,407,110 | 3,336,079 | |||||||
Total long-term assets | 4,841,196 | 4,456,586 | 4,841,196 | 4,456,586 | 4,055,323 | |||||||
Total assets | 6,172,372 | 5,542,472 | 6,172,372 | 5,542,472 | 5,086,843 | |||||||
Capital expenditures | 73,129 | 72,303 | 47,902 | |||||||||
Depreciation and amortization | 125,363 | 110,688 | 85,877 | |||||||||
Domestic Operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from external customers | 5,868,392 | 5,556,672 | 4,829,450 | |||||||||
Net income | 432,912 | 302,822 | 249,793 | |||||||||
Net assets | 2,461,048 | 2,482,283 | 2,461,048 | 2,482,283 | 2,206,109 | |||||||
Goodwill | 3,491,747 | 3,279,856 | 3,491,747 | 3,279,856 | 3,224,685 | |||||||
Total long-term assets | 4,665,782 | 4,297,885 | 4,665,782 | 4,297,885 | 3,927,783 | |||||||
Total assets | 5,898,869 | 5,293,588 | 5,898,869 | 5,293,588 | 4,876,399 | |||||||
Capital expenditures | 69,610 | 70,499 | 46,406 | |||||||||
Depreciation and amortization | 121,725 | 105,874 | 81,205 | |||||||||
International Operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from external customers | 175,743 | 163,370 | 156,891 | |||||||||
Net income | 24,531 | 18,658 | 15,811 | |||||||||
Net assets | 204,230 | 179,027 | 204,230 | 179,027 | 165,357 | |||||||
Goodwill | 140,831 | 127,254 | 140,831 | 127,254 | 111,394 | |||||||
Total long-term assets | 175,414 | 158,701 | 175,414 | 158,701 | 127,540 | |||||||
Total assets | $ 273,503 | $ 248,884 | 273,503 | 248,884 | 210,444 | |||||||
Capital expenditures | 3,519 | 1,804 | 1,496 | |||||||||
Depreciation and amortization | $ 3,638 | $ 4,814 | $ 4,672 |
INCOME TAXES (Detail Textual)
INCOME TAXES (Detail Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax [Line Items] | ||||
Statutory U.S. Income Tax Rate | 21.00% | 21.00% | 21.00% | |
Income tax expense (benefit) | $ 42,172 | $ 80,157 | $ 62,305 | |
Effective income tax rate | 8.40% | 20.00% | 19.00% | |
Undistributed earnings | $ 1,900 | |||
Liability for unrecognized tax benefits | 31,505 | $ 8,826 | $ 1,530 | $ 4,122 |
CARES Act, Income Tax | ||||
Income Tax [Line Items] | ||||
Income tax receivable | 232,600 | |||
Income tax expense (benefit) | $ (56,200) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Loss Before Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 471,711 | $ 379,414 | $ 308,922 |
Foreign | 27,904 | 22,223 | 18,987 |
Income before income taxes | $ 499,615 | $ 401,637 | $ 327,909 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Detail 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Current: | |||
Federal | $ (94,143) | $ 42,268 | $ 41,675 |
State and local | 19,958 | 14,744 | 17,606 |
Foreign | 7,384 | 5,271 | 4,033 |
Total current | (66,801) | 62,283 | 63,314 |
Deferred: | |||
Federal | 109,157 | 12,940 | (27) |
State and local | 185 | 5,465 | (877) |
Foreign | (369) | (531) | (105) |
Total deferred | 108,973 | 17,874 | (1,009) |
Total income tax expense | $ 42,172 | $ 80,157 | $ 62,305 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Detail 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense computed at federal statutory rate | $ 104,919 | $ 84,344 | $ 68,861 |
State and local taxes, net of federal benefit | 21,252 | 15,965 | 13,216 |
Remeasurement of current year NOL | (56,192) | ||
Nonincludible and nondeductible items, net | (2,269) | 3,133 | 1,971 |
Remeasurement of deferred taxes and transition tax | (2,182) | ||
Effect of foreign tax rates | (687) | (377) | (380) |
R&D tax credit, net | (18,173) | (10,700) | (6,755) |
Other tax credits | (648) | (1,183) | (2,138) |
Stock-based compensation | (5,525) | (10,900) | (7,493) |
Other | (505) | (125) | (2,795) |
Total income tax expense | $ 42,172 | $ 80,157 | $ 62,305 |
Effective income tax rate | 8.40% | 20.00% | 19.00% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Detail 3) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Deferred compensation and post-retirement obligations | $ 36,183 | $ 33,094 |
Reserves and accruals | 58,900 | 41,137 |
Stock-based compensation | 11,767 | 9,860 |
NOL carryforward | 39,123 | |
Lease liability | 110,282 | 99,539 |
Interest rate swaps | 6,800 | 11,349 |
Other assets | 2,757 | 6,786 |
Total deferred tax assets | 265,812 | 201,765 |
Deferred tax liabilities: | ||
Goodwill and other intangible assets | (291,282) | (273,088) |
Unbilled revenue | (35,115) | (17,429) |
Prepaid expenses | (8,932) | (6,444) |
Right of use assets | (90,186) | (85,275) |
Property and equipment | (167,527) | (32,625) |
Total deferred tax liabilities | (593,042) | (414,861) |
Net deferred tax liability | $ (327,230) | $ (213,096) |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Detail 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning of year | $ 8,826 | $ 1,530 | $ 4,122 |
Additions based on current year tax positions | 5,702 | 2,293 | 676 |
Lapse of statute of limitations | (164) | ||
Additions based on prior year tax positions | 20,025 | 5,003 | |
Reductions based on prior tax year positions | (3,104) | ||
Settlement with taxing authorities | (3,048) | ||
End of year | $ 31,505 | $ 8,826 | $ 1,530 |
RETIREMENT SAVINGS PLANS (Detai
RETIREMENT SAVINGS PLANS (Detail Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Savings Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee contribution, maximum percentage of compensation | 50.00% | ||
Contribution expense | $ 1,600,000 | $ 1,900,000 | $ 1,600,000 |
Employee contribution maximum, percentage of bonuses | 100.00% | ||
Employer contribution percentage | 5.00% | ||
Employer contribution vesting period | 5 years | ||
Annual IRC compensation limit | $ 290,000 | ||
Supplemental savings plan obligation | 124,000,000 | ||
Supplemental savings plan obligation, current portion | 19,500,000 | ||
Change in supplemental savings plan obligation | 13,300,000 | ||
Supplemental Savings Plan investment gains | 10,200,000 | ||
Supplemental Savings Plan participant compensation deferral | 12,800,000 | ||
Company contributions | 2,000,000 | ||
Distributions paid to participants | 11,700,000 | ||
Supplemental Savings Plan COLI gains | 9,700,000 | 4,700,000 | |
COLI portion of supplemental savings plan assets | $ 103,000,000 | 96,400,000 | |
401 (k) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee contribution, maximum percentage of compensation | 75.00% | ||
Employer matching contribution, percent of match | 8.00% | ||
Employer matching contribution, percent of employee salary deferral | 50.00% | ||
Contribution expense | $ 48,000,000 | 46,900,000 | 35,000,000 |
Employer contribution vesting period | 3 years | ||
401(k) profit-sharing plans (PSP) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Discretionary contribution expense | $ 42,700,000 | $ 41,800,000 | $ 32,000,000 |
STOCK PLANS AND STOCK-BASED C_3
STOCK PLANS AND STOCK-BASED COMPENSATION - Components of Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock-based compensation | |||
Stock-based compensation expense | $ 30,463 | $ 29,302 | $ 25,272 |
Income tax benefit recognized for stock-based compensation | $ 8,009 | $ 5,849 | $ 4,865 |
STOCK PLANS AND STOCK-BASED C_4
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefits recognized | $ 7.3 | $ 13.5 | $ 9.2 |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period to establish average share price for performance measurement | 90 days | ||
Average share price performance condition, percentage | 100.00% | ||
Maximum earned award, percentage of target award | 200.00% | ||
Percentage of earned award vesting after three years | 50.00% | ||
Percentage of earned award vesting after four years | 50.00% | ||
2006 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan, expiration period | 10 years | ||
2016 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grants | 1,200,000 | ||
Cumulative equity instruments awarded | 1,062,994 | ||
Cumulative equity instruments forfeited | 221,277 |
STOCK PLANS AND STOCK-BASED C_5
STOCK PLANS AND STOCK-BASED COMPENSATION - Annual Performance-Based Awards Granted (Detail) | 12 Months Ended |
Jun. 30, 2021shares | |
FY2021 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 111,729 |
FY2020 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 108,844 |
FY2019 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 129,108 |
Additional PRSUs earned pursuant to condition | 12,462 |
STOCK PLANS AND STOCK-BASED C_6
STOCK PLANS AND STOCK-BASED COMPENSATION (Detail Textual 1) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Income tax benefit realized | $ 8,009,000 | $ 5,849,000 | $ 4,865,000 |
ESPP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grants | 1,500,000 | ||
Percentage of fair market value | 95.00% | ||
Maximum number of shares that an eligible employee can purchase | The maximum number of shares that an eligible employee can purchase during any quarter is equal to two times an amount determined as follows: 20 percent of such employee’s compensation over the quarter, divided by 95 percent of the fair market value of a share of common stock on the last day of the quarter. | ||
Cumulative shares purchased under ESPP Plan | 1,258,062 | ||
Cumulative weighted-average purchase price per share | $ 66.67 | ||
Shares purchased under ESPP Plan | 40,658 | ||
Weighted-average price per share | $ 221.79 | ||
MSPP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grants | 500,000 | ||
Percentage of annual bonus in lieu of which RSU received | 85.00% | 85.00% | 85.00% |
MSPP Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of annual bonus in lieu of which RSU received | 100.00% | ||
DSPP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grants | 75,000 | ||
Percentage of annual bonus in lieu of which RSU received | 100.00% | ||
Number of awards outstanding | 0 | ||
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period to establish average share price for performance measurement | 90 days | ||
Share price | $ 216 | ||
Risk free rate of return | 0.16% | ||
Expected volatility | 31.95% | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of RSUs granted | $ 243.87 | $ 252.25 | $ 201.27 |
Vesting period (in years) | 3 years | ||
Total intrinsic value of RSUs that vested | $ 52,700,000 | $ 79,600,000 | $ 53,000,000 |
Income tax benefit realized | 13,900,000 | $ 15,900,000 | $ 10,200,000 |
Unrecognized compensation cost | $ 38,600,000 | ||
Weighted-average period to recognize unrecognized compensation cost (in years) | 2 years 6 months | ||
SSARs and Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 |
STOCK PLANS AND STOCK-BASED C_7
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to Restricted Stock and RSUs (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Shares | |||
Beginning balance unvested | 501,923 | 628,806 | 663,987 |
Granted | 198,564 | 271,542 | 274,261 |
Vested | (240,950) | (348,897) | (276,626) |
Forfeited | (33,566) | (49,528) | (32,816) |
Ending balance unvested | 425,971 | 501,923 | 628,806 |
Weighted Average Grant Date Fair Value | |||
Beginning balance unvested, June 30 | $ 173.18 | $ 134.10 | $ 107.96 |
Granted | 243.87 | 252.25 | 201.27 |
Vested | 99.55 | 77.33 | 61.85 |
Forfeited | 219.94 | 181.89 | 123.55 |
Ending balance unvested, June 30 | $ 209.60 | $ 173.18 | $ 134.10 |
STOCK PLANS AND STOCK-BASED C_8
STOCK PLANS AND STOCK-BASED COMPENSATION - Summary of Activity Related to MSPP (Detail) - MSPP RSUs | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance unvested | 2,223 |
Granted | 1,409 |
Issued | (528) |
Forfeited | (11) |
Ending balance unvested | 3,093 |
Weighted average grant date fair value as adjusted for the applicable discount | $ / shares | $ 185.45 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 24,838 | $ 43,168 |
Fair Value, Measurements, Recurring | Other accrued expenses and current liabilities | Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 1,028 | |
Fair Value, Measurements, Recurring | Other long-term liabilities | Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 24,838 | $ 43,168 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 136,977 | $ 120,344 | $ 106,478 | $ 93,644 | $ 93,731 | $ 80,577 | $ 79,195 | $ 67,977 | $ 457,443 | $ 321,480 | $ 265,604 |
Weighted-average number of basic shares outstanding during the period | 23,552 | 24,935 | 25,225 | 25,099 | 25,089 | 25,078 | 25,065 | 24,894 | 24,705 | 25,031 | 24,833 |
Dilutive effect of RSUs after application of treasury stock method | 287 | 454 | 562 | ||||||||
Weighted-average number of diluted shares outstanding during the period | 23,856 | 25,166 | 25,451 | 25,486 | 25,496 | 25,478 | 25,435 | 25,532 | 24,992 | 25,485 | 25,395 |
Basic earnings per share | $ 5.82 | $ 4.83 | $ 4.22 | $ 3.73 | $ 3.74 | $ 3.21 | $ 3.16 | $ 2.73 | $ 18.52 | $ 12.84 | $ 10.70 |
Diluted earnings per share | $ 5.74 | $ 4.78 | $ 4.18 | $ 3.67 | $ 3.68 | $ 3.16 | $ 3.11 | $ 2.66 | $ 18.30 | $ 12.61 | $ 10.46 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) - Schedule of Quarterly Condensed Financial Operating Results (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 1,564,000 | $ 1,551,918 | $ 1,468,711 | $ 1,459,506 | $ 1,495,581 | $ 1,465,600 | $ 1,395,469 | $ 1,363,392 | $ 6,044,135 | $ 5,720,042 | $ 4,986,341 |
Income from operations | 112,050 | 151,438 | 141,539 | 134,424 | 133,676 | 113,676 | 110,187 | 100,157 | 539,451 | 457,696 | 377,867 |
Net income | $ 136,977 | $ 120,344 | $ 106,478 | $ 93,644 | $ 93,731 | $ 80,577 | $ 79,195 | $ 67,977 | $ 457,443 | $ 321,480 | $ 265,604 |
Basic earnings per share | $ 5.82 | $ 4.83 | $ 4.22 | $ 3.73 | $ 3.74 | $ 3.21 | $ 3.16 | $ 2.73 | $ 18.52 | $ 12.84 | $ 10.70 |
Diluted earnings per share | $ 5.74 | $ 4.78 | $ 4.18 | $ 3.67 | $ 3.68 | $ 3.16 | $ 3.11 | $ 2.66 | $ 18.30 | $ 12.61 | $ 10.46 |
Weighted-average basic shares outstanding | 23,552 | 24,935 | 25,225 | 25,099 | 25,089 | 25,078 | 25,065 | 24,894 | 24,705 | 25,031 | 24,833 |
Weighted-average diluted shares outstanding | 23,856 | 25,166 | 25,451 | 25,486 | 25,496 | 25,478 | 25,435 | 25,532 | 24,992 | 25,485 | 25,395 |
ACCELERATED SHARE REPURCHASE (D
ACCELERATED SHARE REPURCHASE (Detail Textual) - USD ($) shares in Thousands, $ in Thousands | Mar. 12, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Accelerated Share Repurchases [Line Items] | ||||
Payment for repurchase of common stock | $ 509,137 | $ 7,806 | $ 5,838 | |
Repurchases of common stock | $ 509,137 | $ 7,806 | $ 5,838 | |
Treasury Stock | ||||
Accelerated Share Repurchases [Line Items] | ||||
Shares repurchased | (1,731) | (34) | (34) | |
Repurchases of common stock | $ 408,905 | $ 7,184 | $ 5,446 | |
Additional Paid-in Capital | ||||
Accelerated Share Repurchases [Line Items] | ||||
Repurchases of common stock | $ 100,232 | $ 622 | $ 392 | |
Accelerated Share Repurchase | ||||
Accelerated Share Repurchases [Line Items] | ||||
Payment for repurchase of common stock | $ 500,000 | |||
Shares repurchased | 1,700 | |||
Accelerated Share Repurchase | Treasury Stock | ||||
Accelerated Share Repurchases [Line Items] | ||||
Repurchases of common stock | $ 400,000 | |||
Accelerated Share Repurchase | Additional Paid-in Capital | ||||
Accelerated Share Repurchases [Line Items] | ||||
Repurchases of common stock | $ 100,000 |