Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Jan. 12, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | CACI International Inc | |
Entity Central Index Key | 0000016058 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,508,119 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CACI | |
Security Exchange Name | NYSE | |
Entity File Number | 001-31400 | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,649,416 | $ 1,485,778 | $ 3,255,175 | $ 2,976,676 |
Costs of revenues: | ||||
Direct costs | 1,094,314 | 974,018 | 2,150,086 | 1,948,189 |
Indirect costs and selling expenses | 388,303 | 354,977 | 770,384 | 712,083 |
Depreciation and amortization | 35,932 | 32,676 | 71,035 | 65,268 |
Total costs of revenues | 1,518,549 | 1,361,671 | 2,991,505 | 2,725,540 |
Income from operations | 130,867 | 124,107 | 263,670 | 251,136 |
Interest expense and other, net | 19,942 | 11,009 | 36,135 | 21,407 |
Income before income taxes | 110,925 | 113,098 | 227,535 | 229,729 |
Income taxes | 23,824 | 22,799 | 51,309 | 51,321 |
Net income | $ 87,101 | $ 90,299 | $ 176,226 | $ 178,408 |
Basic earnings per share | $ 3.71 | $ 3.86 | $ 7.51 | $ 7.60 |
Diluted earnings per share | $ 3.68 | $ 3.83 | $ 7.44 | $ 7.52 |
Weighted-average basic shares outstanding | 23,506 | 23,399 | 23,463 | 23,480 |
Weighted-average diluted shares outstanding | 23,676 | 23,598 | 23,677 | 23,722 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 87,101 | $ 90,299 | $ 176,226 | $ 178,408 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 17,123 | 575 | (366) | (6,187) |
Change in fair value of interest rate swap agreements, net of tax | (1,516) | 5,424 | 14,013 | 7,638 |
Other comprehensive income, net of tax | 15,607 | 5,999 | 13,647 | 1,451 |
Comprehensive income | $ 102,708 | $ 96,298 | $ 189,873 | $ 179,859 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 114,738 | $ 114,804 |
Accounts receivable, net | 868,629 | 926,144 |
Prepaid expenses and other current assets | 191,811 | 168,690 |
Total current assets | 1,175,178 | 1,209,638 |
Goodwill | 4,063,834 | 4,058,291 |
Intangible assets, net | 543,058 | 581,385 |
Property, plant and equipment, net | 195,567 | 205,622 |
Operating lease right-of-use assets | 301,012 | 317,359 |
Supplemental retirement savings plan assets | 95,752 | 96,114 |
Accounts receivable, long-term | 11,843 | 10,199 |
Other long-term assets | 168,305 | 150,823 |
Total assets | 6,554,549 | 6,629,431 |
Current liabilities: | ||
Current portion of long-term debt | 30,625 | 30,625 |
Accounts payable | 270,768 | 303,443 |
Accrued compensation and benefits | 345,779 | 405,722 |
Other accrued expenses and current liabilities | 334,476 | 287,571 |
Total current liabilities | 981,648 | 1,027,361 |
Long-term debt, net of current portion | 1,534,961 | 1,702,148 |
Supplemental retirement savings plan obligations, net of current portion | 103,512 | 102,127 |
Deferred income taxes | 273,626 | 356,841 |
Operating lease liabilities, noncurrent | 296,637 | 315,315 |
Other long-term liabilities | 113,919 | 72,096 |
Total liabilities | 3,304,303 | 3,575,888 |
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; 42,911 shares issued and 23,508 outstanding at December 31, 2022 and 42,820 shares issued and 23,416 outstanding at June 30, 2022 | 4,291 | 4,282 |
Additional paid-in capital | 578,470 | 571,650 |
Retained earnings | 3,732,107 | 3,555,881 |
Accumulated other comprehensive loss | (17,429) | (31,076) |
Treasury stock, at cost (19,404 and 19,404 shares, respectively) | (1,047,328) | (1,047,329) |
Total CACI shareholders’ equity | 3,250,111 | 3,053,408 |
Noncontrolling interest | 135 | 135 |
Total shareholders’ equity | 3,250,246 | 3,053,543 |
Total liabilities and shareholders’ equity | $ 6,554,549 | $ 6,629,431 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2022 | Jun. 30, 2022 |
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 | 42,911,000 | 42,820,000 |
Common stock, shares outstanding | 23,508,000 | 23,416,000 |
Treasury stock, shares at cost | 19,404,000 | 19,404,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 176,226 | $ 178,408 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 71,035 | 65,268 |
Amortization of deferred financing costs | 1,126 | 1,147 |
Loss on extinguishment of debt | 891 | |
Non-cash lease expense | 34,909 | 33,943 |
Stock-based compensation expense | 20,196 | 14,698 |
Deferred income taxes | (48,320) | (1,962) |
Changes in operating assets and liabilities, net of effect of business acquisitions: | ||
Accounts receivable, net | 55,518 | 72,650 |
Prepaid expenses and other assets | (30,322) | (24,701) |
Accounts payable and other accrued expenses | 28,157 | 39,535 |
Accrued compensation and benefits | (59,917) | (89,752) |
Income taxes payable and receivable | (5,110) | 46,402 |
Operating lease liabilities | (40,050) | (34,169) |
Long-term liabilities | 3,642 | 6,407 |
Net cash provided by operating activities | 207,090 | 308,765 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (25,670) | (21,632) |
Acquisition of businesses, net of cash acquired | (609,356) | |
Other | 923 | |
Net cash used in investing activities | (25,670) | (630,065) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings under bank credit facilities | 1,101,500 | 1,735,095 |
Principal payments made under bank credit facilities | (1,269,813) | (1,356,230) |
Payment of financing costs under bank credit facilities | (6,286) | |
Proceeds from employee stock purchase plans | 5,288 | 5,221 |
Repurchases of common stock | (5,286) | (4,995) |
Payment of taxes for equity transactions | (13,269) | (13,956) |
Net cash (used in) provided by financing activities | (181,580) | 358,849 |
Effect of exchange rate changes on cash and cash equivalents | 94 | (1,477) |
Net change in cash and cash equivalents | (66) | 36,072 |
Cash and cash equivalents at beginning of period | 114,804 | 88,031 |
Cash and cash equivalents at end of period | 114,738 | 124,103 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for income taxes, net of refunds | 100,400 | 4,509 |
Cash paid during the period for interest | 27,654 | 19,042 |
Non-cash financing and investing activities: | ||
Landlord sponsored tenant incentives | 1,908 | 1,178 |
Accrued capital expenditures | $ 736 | $ 813 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total CACI Shareholders' Equity | Noncontrolling Interest |
Beginning balance at Jun. 30, 2021 | $ 2,665,278 | $ 4,268 | $ 484,260 | $ 3,189,087 | $ (36,291) | $ (976,181) | $ 2,665,143 | $ 135 |
Beginning balance, shares at Jun. 30, 2021 | 42,676 | 19,122 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 178,408 | 178,408 | 178,408 | |||||
Stock-based compensation expense | 14,698 | 14,698 | 14,698 | |||||
Tax withholdings on restricted share vestings | (13,799) | $ 13 | (13,812) | (13,799) | ||||
Tax withholdings on restricted share vestings (in shares) | 134 | |||||||
Other comprehensive income, net of tax | 1,451 | 1,451 | 1,451 | |||||
Repurchases of common stock | (4,995) | 70,761 | $ (75,756) | (4,995) | ||||
Repurchases of common stock (in shares) | 301 | |||||||
Treasury stock issued under stock purchase plans | 4,669 | 61 | $ 4,608 | 4,669 | ||||
Treasury stock issued under stock purchase plans (in shares) | (19) | |||||||
Ending balance at Dec. 31, 2021 | 2,845,710 | $ 4,281 | 555,968 | 3,367,495 | (34,840) | $ (1,047,329) | 2,845,575 | 135 |
Ending balance, shares at Dec. 31, 2021 | 42,810 | 19,404 | ||||||
Beginning balance at Sep. 30, 2021 | 2,755,122 | $ 4,271 | 561,688 | 3,277,196 | (40,839) | $ (1,047,329) | 2,754,987 | 135 |
Beginning balance, shares at Sep. 30, 2021 | 42,710 | 19,404 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 90,299 | 90,299 | 90,299 | |||||
Stock-based compensation expense | 8,029 | 8,029 | 8,029 | |||||
Tax withholdings on restricted share vestings | (13,526) | $ 10 | (13,536) | (13,526) | ||||
Tax withholdings on restricted share vestings (in shares) | 100 | |||||||
Other comprehensive income, net of tax | 5,999 | 5,999 | 5,999 | |||||
Repurchases of common stock | (2,523) | (213) | $ (2,310) | (2,523) | ||||
Repurchases of common stock (in shares) | 9 | |||||||
Treasury stock issued under stock purchase plans | 2,310 | $ 2,310 | 2,310 | |||||
Treasury stock issued under stock purchase plans (in shares) | (9) | |||||||
Ending balance at Dec. 31, 2021 | 2,845,710 | $ 4,281 | 555,968 | 3,367,495 | (34,840) | $ (1,047,329) | 2,845,575 | 135 |
Ending balance, shares at Dec. 31, 2021 | 42,810 | 19,404 | ||||||
Beginning balance at Jun. 30, 2022 | 3,053,543 | $ 4,282 | 571,650 | 3,555,881 | (31,076) | $ (1,047,329) | 3,053,408 | 135 |
Beginning balance, shares at Jun. 30, 2022 | 42,820 | 19,404 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 176,226 | 176,226 | 176,226 | |||||
Stock-based compensation expense | 20,196 | 20,196 | 20,196 | |||||
Tax withholdings on restricted share vestings | (13,106) | $ 9 | (13,115) | (13,106) | ||||
Tax withholdings on restricted share vestings (in shares) | 91 | |||||||
Other comprehensive income, net of tax | 13,647 | 13,647 | 13,647 | |||||
Repurchases of common stock | (5,286) | (325) | $ (4,961) | (5,286) | ||||
Repurchases of common stock (in shares) | 19 | |||||||
Treasury stock issued under stock purchase plans | 5,026 | 64 | $ 4,962 | 5,026 | ||||
Treasury stock issued under stock purchase plans (in shares) | (19) | |||||||
Ending balance at Dec. 31, 2022 | 3,250,246 | $ 4,291 | 578,470 | 3,732,107 | (17,429) | $ (1,047,328) | 3,250,111 | 135 |
Ending balance, shares at Dec. 31, 2022 | 42,911 | 19,404 | ||||||
Beginning balance at Sep. 30, 2022 | 3,148,570 | $ 4,283 | 579,511 | 3,645,006 | (33,036) | $ (1,047,329) | 3,148,435 | 135 |
Beginning balance, shares at Sep. 30, 2022 | 42,826 | 19,404 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 87,101 | 87,101 | 87,101 | |||||
Stock-based compensation expense | 11,757 | 11,757 | 11,757 | |||||
Tax withholdings on restricted share vestings | (12,671) | $ 8 | (12,679) | (12,671) | ||||
Tax withholdings on restricted share vestings (in shares) | 85 | |||||||
Other comprehensive income, net of tax | 15,607 | 15,607 | 15,607 | |||||
Repurchases of common stock | (2,639) | (143) | $ (2,496) | (2,639) | ||||
Repurchases of common stock (in shares) | 10 | |||||||
Treasury stock issued under stock purchase plans | 2,521 | 24 | $ 2,497 | 2,521 | ||||
Treasury stock issued under stock purchase plans (in shares) | (10) | |||||||
Ending balance at Dec. 31, 2022 | $ 3,250,246 | $ 4,291 | $ 578,470 | $ 3,732,107 | $ (17,429) | $ (1,047,328) | $ 3,250,111 | $ 135 |
Ending balance, shares at Dec. 31, 2022 | 42,911 | 19,404 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – The accompanying unaudited condensed consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations, comprehensive income and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated in consolidation. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt outstanding as of December 31, 2022 under its bank credit facility approximates its carrying value. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data of companies with a corporate rating similar to CACI’s that have recently priced credit facilities. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the periods presented. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest annual report to the SEC on Form 10-K for the year ended June 30, 2022. The results of operations for the three and six months ended December 31, 2022 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2022 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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, as reference rate reform activities occur through December 31, 2022. However, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024 to align the temporary accounting relief guidance with the expected LIBOR cessation date of June 30, 2023. During the year ended June 30, 2020, 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 relevant contract and hedge accounting relationship modifications are made during the course of the reference rate reform transition period . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 3 – Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the six months ended December 31, 2022 are as follows (in thousands): Domestic International Total Balance at June 30, 2022 $ 3,934,625 $ 123,666 $ 4,058,291 Goodwill acquired (1) 6,072 — 6,072 Foreign currency translation (188 ) (341 ) (529 ) Balance at December 31, 2022 $ 3,940,509 $ 123,325 $ 4,063,834 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Purchase price allocations for all of the fiscal year 2022 acquisitions were complete as of December 31, 2022. There were no impairments of goodwill during the periods presented. Intangible Assets Intangible assets consisted of the following (in thousands): December 31, 2022 June 30, 2022 Gross carrying Accumulated Net carrying Gross carrying Accumulated Net carrying value amortization value value amortization value Customer contracts and related customer relationships $ 656,249 $ (296,255 ) $ 359,994 $ 656,353 $ (275,538 ) $ 380,815 Acquired technologies 280,188 (97,124 ) 183,064 280,196 (79,626 ) 200,570 Total intangible assets $ 936,437 $ (393,379 ) $ 543,058 $ 936,549 $ (355,164 ) $ 581,385 Amortization expense related to intangible assets was $19.1 million and $38.2 million for the three and six months ended December 31, 2022, respectively, and $18.1 million and $35.6 million for the three and six months ended December 31, 2021, respectively. |
Revenues and Contract Balances
Revenues and Contract Balances | 6 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenues and Contract Balances | Note 4 – Revenues and Contract Balances Disaggregation of Revenues The Company disaggregates revenues by contract type, customer type, prime vs. subcontractor, and whether the solution provided is primarily Expertise or Technology. These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected. Disaggregated revenues by contract type were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Cost-plus-fee $ 953,344 $ — $ 953,344 $ 1,888,090 $ — $ 1,888,090 Fixed-price 478,201 31,155 509,356 926,763 64,366 991,129 Time-and-materials 173,630 13,086 186,716 349,217 26,739 375,956 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Cost-plus-fee $ 889,358 $ — $ 889,358 $ 1,783,071 $ — $ 1,783,071 Fixed-price 400,011 33,279 433,290 774,485 66,510 840,995 Time-and-materials 148,881 14,249 163,130 324,416 28,194 352,610 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by customer type were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Department of Defense $ 1,160,060 $ — $ 1,160,060 $ 2,255,380 $ — $ 2,255,380 Federal Civilian agencies 399,768 — 399,768 823,855 — 823,855 Commercial and other 45,347 44,241 89,588 84,835 91,105 175,940 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Department of Defense $ 1,037,014 $ — $ 1,037,014 $ 2,037,141 $ — $ 2,037,141 Federal Civilian agencies 371,897 — 371,897 785,561 — 785,561 Commercial and other 29,339 47,528 76,867 59,270 94,704 153,974 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by prime vs. subcontractor were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Prime contractor $ 1,420,367 $ 40,472 $ 1,460,839 $ 2,827,821 $ 83,328 $ 2,911,149 Subcontractor 184,808 3,769 188,577 336,249 7,777 344,026 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Prime contractor $ 1,292,529 $ 43,317 $ 1,335,846 $ 2,591,182 $ 86,223 $ 2,677,405 Subcontractor 145,721 4,211 149,932 290,790 8,481 299,271 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by expertise or technology were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Expertise $ 725,503 $ 16,117 $ 741,620 $ 1,443,153 $ 32,670 $ 1,475,823 Technology 879,672 28,124 907,796 1,720,917 58,435 1,779,352 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Expertise $ 668,209 $ 18,100 $ 686,309 $ 1,351,833 $ 37,522 $ 1,389,355 Technology 770,041 29,428 799,469 1,530,139 57,182 1,587,321 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Changes in Estimates Aggregate net changes in estimates for the three and six months ended December 31, 2022 reflected an increase to income before income taxes of $5.8 million ($0.18 per diluted share) and $11.5 million ($0.36 per diluted share), respectively, compared with $5.5 million ($0.17 per diluted share) and for the three and six months ended December 31, 2021 Revenues recognized from previously satisfied performance obligations were not material for the three and six months ended December 31, 2022 and 2021, respectively. The change in revenues generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customer’s final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied. Remaining Performance Obligations As of December 31, 2022, the Company had $8.6 billion of remaining performance obligations and expects to recognize approximately 47% and 67% over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter. Contract Balances Contract balances consisted of the following (in thousands): December 31, June 30, Description of Contract Related Balance Financial Statement Classification 2022 2022 Billed and billable receivables Accounts receivable, net $ 753,254 $ 800,597 Contract assets – current unbilled receivables Accounts receivable, net 115,375 125,547 Contract assets – current costs to obtain Prepaid expenses and other current assets 5,186 5,167 Contract assets – noncurrent unbilled receivables Accounts receivable, long-term 11,843 10,199 Contract assets – noncurrent costs to obtain Other long-term assets 9,197 10,703 Contract liabilities – current deferred revenue and other contract liabilities Other accrued expenses and current liabilities (110,227 ) (84,810 ) Contract liabilities – noncurrent deferred revenue and other contract liabilities Other long-term liabilities (6,308 ) (7,552 ) During the three and six months ended December 31, 2022, we recognized $7.6 million and $58.1 million of revenues, respectively, compared with $13.6 million and $68.3 million of revenues , |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 – Inventories consisted of the following (in thousands): December 31, June 30, 2022 2022 Materials, purchased parts and supplies $ 64,788 $ 57,407 Work in process 20,423 13,207 Finished goods 28,558 28,748 Total $ 113,769 $ 99,362 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. Prior year amounts for work in process and finished goods have been revised. |
Sales of Receivables
Sales of Receivables | 6 Months Ended |
Dec. 31, 2022 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Sales of Receivables | Note 6 – Sales of Receivables On December 22, 2022, the Company amended its Master Accounts Receivable Purchase Agreement (MARPA) with MUFG Bank, Ltd. (Purchaser), for the sale of certain designated eligible U.S. government receivables. The amendment extended the term of the MARPA to December 21, 2023. 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 December 31, 2022. Proceeds from the sold receivables are reflected in operating cash flows on the statement of cash flows. MARPA activity consisted of the following (in thousands): As of and for the Six Months Ended December 31, 2022 2021 Beginning balance: $ 157,785 $ 182,027 Sales of receivables 1,460,825 1,361,521 Cash collections (1,418,648 ) (1,356,070 ) Outstanding balance sold to Purchaser: (1) 199,962 187,478 Cash collected, not remitted to Purchaser (2) (59,827 ) (49,166 ) Remaining sold receivables $ 140,135 $ 138,312 (1) For the six months ended December 31, 2022 and 2021, the Company recorded net cash inflows of $42.2 million and $5.5 million in its cash flows from operating activities, 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 Purchaser as of December 31, 2022 and 2021. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2022 | |
Long Term Debt [Abstract] | |
Debt | Note 7 – Debt Long-term debt consisted of the following (in thousands): December 31, June 30, 2022 2022 Bank credit facility – term loans $ 1,194,375 $ 1,209,688 Bank credit facility – revolver loans 380,000 533,000 Principal amount of long-term debt 1,574,375 1,742,688 Less unamortized discounts and debt issuance costs (8,789 ) (9,915 ) Total long-term debt 1,565,586 1,732,773 Less current portion (30,625 ) (30,625 ) Long-term debt, net of current portion $ 1,534,961 $ 1,702,148 Bank Credit Facility On December 13, 2021, the Company amended its credit facility (the Credit Facility) primarily to extend the maturity date, increase borrowing capacity, and improve pricing. As amended, the Company’s $3,200.0 million Credit Facility consists of a $1,975.0 million revolving credit facility (the Revolving Facility) and a $1,225.0 million term loan (the Term Loan). The Revolving Facility has subfacilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,975.0 million. As of December 31, 2022, the Company had $380.0 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 net leverage ratio. As of December 31, 2022, 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 4.50%. 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 December 31, 2022, 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. 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 2028. 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 three and six months ended December 31, 2022 and 2021 is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Gain recognized in other comprehensive income $ 904 $ 2,194 $ 16,490 $ 1,186 Amounts reclassified to earnings from accumulated other comprehensive loss (2,420 ) 3,230 (2,477 ) 6,452 Net current period other comprehensive (loss) income $ (1,516 ) $ 5,424 $ 14,013 $ 7,638 |
Legal Proceedings and Other Com
Legal Proceedings and Other Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings and Other Commitments and Contingencies | Note 8 – Legal Proceedings and Other Commitments and Contingencies Legal Proceedings The Company is involved in various claims, lawsuits, and administrative proceedings arising in the normal course of business, none of which, based on current information, are expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Government Contracting Payments to the Company on cost-plus-fee and time-and-materials contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) 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 2021. The Company is still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believes its reserves for such are adequate. 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 and 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 may be identified, discussed and settled. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Net income $ 87,101 $ 90,299 $ 176,226 $ 178,408 Weighted-average number of basic shares outstanding during the period 23,506 23,399 23,463 23,480 Dilutive effect of RSUs after application of treasury stock method 170 199 214 242 Weighted-average number of diluted shares outstanding during the period 23,676 23,598 23,677 23,722 Basic earnings per share $ 3.71 $ 3.86 $ 7.51 $ 7.60 Diluted earnings per share $ 3.68 $ 3.83 $ 7.44 $ 7.52 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination by the Internal Revenue Service for fiscal years 2017 through 2021. The Company does not expect resolution of the examination to have a material impact on its results of operations, financial condition, or cash flows. During fiscal year 2023, a provision of the Tax Cuts and Jobs Act of 2017 (TCJA) went into effect which eliminated the option to deduct domestic research and development costs in the year incurred and instead requires taxpayers to amortize such costs over five years. Although it is possible that Congress amends this provision of the TCJA, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. For the three and six months ended December 31, 2022, the Company recognized a liability for unrecognized tax benefits and a corresponding deferred tax asset of $20.0 million and $39.8 million, respectively, related to the capitalization and amortization of research costs related to provisions of the TCJA becoming effective. The Company’s effective income tax rate was 21.5% and 22.5% for the three and six months ended December 31, 2022, respectively, and 20.2% and 22.3% for the three and six months ended December 31, 2021, respectively. The effective tax rates for the three and six months ended December 31, 2022 and 2021 both benefited from the favorable impact of research and development credits and the amount of excess tax benefits related to stock-based compensation, and are partially offset by the unfavorable impacts of certain executive compensation. |
Business Segments
Business Segments | 6 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Note 11 – Business Segments The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide Expertise and Technology primarily to U.S. federal government agencies. International operations provide Expertise and Technology primarily to international government and commercial customers. The Company evaluates the performance of its operating segments based on net income. Summarized financial information for the Company’s reportable segments is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Revenues: Domestic $ 1,605,175 $ 1,438,250 $ 3,164,070 $ 2,881,972 International 44,241 47,528 91,105 94,704 Total revenues $ 1,649,416 $ 1,485,778 $ 3,255,175 $ 2,976,676 Net income: Domestic $ 80,362 $ 83,407 $ 160,915 $ 165,104 International 6,739 6,892 15,311 13,304 Total net income $ 87,101 $ 90,299 $ 176,226 $ 178,408 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 – Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures The financial instruments measured at fair value on a recurring basis consist of the following (in thousands): December 31, June 30, Financial Statement Fair Value 2022 2022 Description of Financial Instrument Classification Hierarchy Fair Value Interest rate swap agreements Prepaid expenses and other current assets Level 2 $ 1,305 $ 337 Interest rate swap agreements Other long-term assets Level 2 $ 37,126 $ 19,184 The Company uses 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events On January 24, 2023, CACI’s Board of Directors authorized the repurchase of up to $750.0 million of CACI’s outstanding common stock. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill | The changes in the carrying amount of goodwill for the six months ended December 31, 2022 are as follows (in thousands): Domestic International Total Balance at June 30, 2022 $ 3,934,625 $ 123,666 $ 4,058,291 Goodwill acquired (1) 6,072 — 6,072 Foreign currency translation (188 ) (341 ) (529 ) Balance at December 31, 2022 $ 3,940,509 $ 123,325 $ 4,063,834 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Purchase price allocations for all of the fiscal year 2022 acquisitions were complete as of December 31, 2022. |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): December 31, 2022 June 30, 2022 Gross carrying Accumulated Net carrying Gross carrying Accumulated Net carrying value amortization value value amortization value Customer contracts and related customer relationships $ 656,249 $ (296,255 ) $ 359,994 $ 656,353 $ (275,538 ) $ 380,815 Acquired technologies 280,188 (97,124 ) 183,064 280,196 (79,626 ) 200,570 Total intangible assets $ 936,437 $ (393,379 ) $ 543,058 $ 936,549 $ (355,164 ) $ 581,385 |
Revenues and Contract Balances
Revenues and Contract Balances (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenues | Disaggregated revenues by contract type were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Cost-plus-fee $ 953,344 $ — $ 953,344 $ 1,888,090 $ — $ 1,888,090 Fixed-price 478,201 31,155 509,356 926,763 64,366 991,129 Time-and-materials 173,630 13,086 186,716 349,217 26,739 375,956 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Cost-plus-fee $ 889,358 $ — $ 889,358 $ 1,783,071 $ — $ 1,783,071 Fixed-price 400,011 33,279 433,290 774,485 66,510 840,995 Time-and-materials 148,881 14,249 163,130 324,416 28,194 352,610 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by customer type were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Department of Defense $ 1,160,060 $ — $ 1,160,060 $ 2,255,380 $ — $ 2,255,380 Federal Civilian agencies 399,768 — 399,768 823,855 — 823,855 Commercial and other 45,347 44,241 89,588 84,835 91,105 175,940 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Department of Defense $ 1,037,014 $ — $ 1,037,014 $ 2,037,141 $ — $ 2,037,141 Federal Civilian agencies 371,897 — 371,897 785,561 — 785,561 Commercial and other 29,339 47,528 76,867 59,270 94,704 153,974 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by prime vs. subcontractor were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Prime contractor $ 1,420,367 $ 40,472 $ 1,460,839 $ 2,827,821 $ 83,328 $ 2,911,149 Subcontractor 184,808 3,769 188,577 336,249 7,777 344,026 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Prime contractor $ 1,292,529 $ 43,317 $ 1,335,846 $ 2,591,182 $ 86,223 $ 2,677,405 Subcontractor 145,721 4,211 149,932 290,790 8,481 299,271 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 Disaggregated revenues by expertise or technology were as follows (in thousands): Three Months Ended Six Months Ended December 31, 2022 December 31, 2022 Domestic International Total Domestic International Total Expertise $ 725,503 $ 16,117 $ 741,620 $ 1,443,153 $ 32,670 $ 1,475,823 Technology 879,672 28,124 907,796 1,720,917 58,435 1,779,352 Total $ 1,605,175 $ 44,241 $ 1,649,416 $ 3,164,070 $ 91,105 $ 3,255,175 Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 Domestic International Total Domestic International Total Expertise $ 668,209 $ 18,100 $ 686,309 $ 1,351,833 $ 37,522 $ 1,389,355 Technology 770,041 29,428 799,469 1,530,139 57,182 1,587,321 Total $ 1,438,250 $ 47,528 $ 1,485,778 $ 2,881,972 $ 94,704 $ 2,976,676 |
Contract Assets and Liabilities | Contract balances consisted of the following (in thousands): December 31, June 30, Description of Contract Related Balance Financial Statement Classification 2022 2022 Billed and billable receivables Accounts receivable, net $ 753,254 $ 800,597 Contract assets – current unbilled receivables Accounts receivable, net 115,375 125,547 Contract assets – current costs to obtain Prepaid expenses and other current assets 5,186 5,167 Contract assets – noncurrent unbilled receivables Accounts receivable, long-term 11,843 10,199 Contract assets – noncurrent costs to obtain Other long-term assets 9,197 10,703 Contract liabilities – current deferred revenue and other contract liabilities Other accrued expenses and current liabilities (110,227 ) (84,810 ) Contract liabilities – noncurrent deferred revenue and other contract liabilities Other long-term liabilities (6,308 ) (7,552 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): December 31, June 30, 2022 2022 Materials, purchased parts and supplies $ 64,788 $ 57,407 Work in process 20,423 13,207 Finished goods 28,558 28,748 Total $ 113,769 $ 99,362 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. Prior year amounts for work in process and finished goods have been revised. |
Sales of Receivables (Tables)
Sales of Receivables (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Summary of MARPA Activity | MARPA activity consisted of the following (in thousands): As of and for the Six Months Ended December 31, 2022 2021 Beginning balance: $ 157,785 $ 182,027 Sales of receivables 1,460,825 1,361,521 Cash collections (1,418,648 ) (1,356,070 ) Outstanding balance sold to Purchaser: (1) 199,962 187,478 Cash collected, not remitted to Purchaser (2) (59,827 ) (49,166 ) Remaining sold receivables $ 140,135 $ 138,312 (1) For the six months ended December 31, 2022 and 2021, the Company recorded net cash inflows of $42.2 million and $5.5 million in its cash flows from operating activities, 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 Purchaser as of December 31, 2022 and 2021. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Long Term Debt [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): December 31, June 30, 2022 2022 Bank credit facility – term loans $ 1,194,375 $ 1,209,688 Bank credit facility – revolver loans 380,000 533,000 Principal amount of long-term debt 1,574,375 1,742,688 Less unamortized discounts and debt issuance costs (8,789 ) (9,915 ) Total long-term debt 1,565,586 1,732,773 Less current portion (30,625 ) (30,625 ) Long-term debt, net of current portion $ 1,534,961 $ 1,702,148 |
Cash Flow Hedges | The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2022 and 2021 is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Gain recognized in other comprehensive income $ 904 $ 2,194 $ 16,490 $ 1,186 Amounts reclassified to earnings from accumulated other comprehensive loss (2,420 ) 3,230 (2,477 ) 6,452 Net current period other comprehensive (loss) income $ (1,516 ) $ 5,424 $ 14,013 $ 7,638 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
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): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Net income $ 87,101 $ 90,299 $ 176,226 $ 178,408 Weighted-average number of basic shares outstanding during the period 23,506 23,399 23,463 23,480 Dilutive effect of RSUs after application of treasury stock method 170 199 214 242 Weighted-average number of diluted shares outstanding during the period 23,676 23,598 23,677 23,722 Basic earnings per share $ 3.71 $ 3.86 $ 7.51 $ 7.60 Diluted earnings per share $ 3.68 $ 3.83 $ 7.44 $ 7.52 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | Summarized financial information for the Company’s reportable segments is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Revenues: Domestic $ 1,605,175 $ 1,438,250 $ 3,164,070 $ 2,881,972 International 44,241 47,528 91,105 94,704 Total revenues $ 1,649,416 $ 1,485,778 $ 3,255,175 $ 2,976,676 Net income: Domestic $ 80,362 $ 83,407 $ 160,915 $ 165,104 International 6,739 6,892 15,311 13,304 Total net income $ 87,101 $ 90,299 $ 176,226 $ 178,408 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The financial instruments measured at fair value on a recurring basis consist of the following (in thousands): December 31, June 30, Financial Statement Fair Value 2022 2022 Description of Financial Instrument Classification Hierarchy Fair Value Interest rate swap agreements Prepaid expenses and other current assets Level 2 $ 1,305 $ 337 Interest rate swap agreements Other long-term assets Level 2 $ 37,126 $ 19,184 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Roll Forward of Goodwill (Details) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Goodwill [Roll Forward] | ||
Balance | $ 4,058,291 | |
Goodwill acquired | 6,072 | [1] |
Foreign currency translation | (529) | |
Balance | 4,063,834 | |
Domestic | ||
Goodwill [Roll Forward] | ||
Balance | 3,934,625 | |
Goodwill acquired | 6,072 | [1] |
Foreign currency translation | (188) | |
Balance | 3,940,509 | |
International | ||
Goodwill [Roll Forward] | ||
Balance | 123,666 | |
Foreign currency translation | (341) | |
Balance | $ 123,325 | |
[1]Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. Purchase price allocations for all of the fiscal year 2022 acquisitions were complete as of December 31, 2022. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets Net [Abstract] | ||||
Amortization expense | $ 19.1 | $ 18.1 | $ 38.2 | $ 35.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 936,437 | $ 936,549 |
Accumulated amortization | (393,379) | (355,164) |
Net carrying value | 543,058 | 581,385 |
Customer contracts and related customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | 656,249 | 656,353 |
Accumulated amortization | (296,255) | (275,538) |
Net carrying value | 359,994 | 380,815 |
Acquired technologies | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | 280,188 | 280,196 |
Accumulated amortization | (97,124) | (79,626) |
Net carrying value | $ 183,064 | $ 200,570 |
Revenues and Contract Balance_2
Revenues and Contract Balances - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 1,649,416 | $ 1,485,778 | $ 3,255,175 | $ 2,976,676 |
Expertise | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 741,620 | 686,309 | 1,475,823 | 1,389,355 |
Technology | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 907,796 | 799,469 | 1,779,352 | 1,587,321 |
Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,460,839 | 1,335,846 | 2,911,149 | 2,677,405 |
Subcontractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 188,577 | 149,932 | 344,026 | 299,271 |
Department of Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,160,060 | 1,037,014 | 2,255,380 | 2,037,141 |
Federal civilian agencies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 399,768 | 371,897 | 823,855 | 785,561 |
Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 89,588 | 76,867 | 175,940 | 153,974 |
Cost-plus-fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 953,344 | 889,358 | 1,888,090 | 1,783,071 |
Fixed-price | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 509,356 | 433,290 | 991,129 | 840,995 |
Time and materials | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 186,716 | 163,130 | 375,956 | 352,610 |
Domestic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,605,175 | 1,438,250 | 3,164,070 | 2,881,972 |
Domestic | Expertise | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 725,503 | 668,209 | 1,443,153 | 1,351,833 |
Domestic | Technology | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 879,672 | 770,041 | 1,720,917 | 1,530,139 |
Domestic | Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,420,367 | 1,292,529 | 2,827,821 | 2,591,182 |
Domestic | Subcontractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 184,808 | 145,721 | 336,249 | 290,790 |
Domestic | Department of Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,160,060 | 1,037,014 | 2,255,380 | 2,037,141 |
Domestic | Federal civilian agencies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 399,768 | 371,897 | 823,855 | 785,561 |
Domestic | Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 45,347 | 29,339 | 84,835 | 59,270 |
Domestic | Cost-plus-fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 953,344 | 889,358 | 1,888,090 | 1,783,071 |
Domestic | Fixed-price | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 478,201 | 400,011 | 926,763 | 774,485 |
Domestic | Time and materials | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 173,630 | 148,881 | 349,217 | 324,416 |
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 44,241 | 47,528 | 91,105 | 94,704 |
International | Expertise | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 16,117 | 18,100 | 32,670 | 37,522 |
International | Technology | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 28,124 | 29,428 | 58,435 | 57,182 |
International | Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 40,472 | 43,317 | 83,328 | 86,223 |
International | Subcontractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 3,769 | 4,211 | 7,777 | 8,481 |
International | Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 44,241 | 47,528 | 91,105 | 94,704 |
International | Fixed-price | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 31,155 | 33,279 | 64,366 | 66,510 |
International | Time and materials | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 13,086 | $ 14,249 | $ 26,739 | $ 28,194 |
Revenues and Contract Balance_3
Revenues and Contract Balances (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change In Accounting Estimate [Line Items] | ||||
Income before income taxes | $ 110,925 | $ 113,098 | $ 227,535 | $ 229,729 |
Diluted earnings per share | $ 3.68 | $ 3.83 | $ 7.44 | $ 7.52 |
Change in Contract with Customer, Liability [Abstract] | ||||
Liability, revenue recognized | $ 7,600 | $ 13,600 | $ 58,100 | $ 68,300 |
EAC Adjustments | ||||
Change In Accounting Estimate [Line Items] | ||||
Income before income taxes | $ 5,800 | $ 5,500 | $ 11,500 | $ 8,200 |
Diluted earnings per share | $ 0.18 | $ 0.17 | $ 0.36 | $ 0.26 |
Revenues and Contract Balance_4
Revenues and Contract Balances - Remaining Performance Obligations (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining performance obligations | $ 8.6 |
Revenues and Contract Balance_5
Revenues and Contract Balances - Remaining Performance Obligations (Details 1) | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 47% |
Remaining performance obligations, expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 67% |
Remaining performance obligations, expected timing of satisfaction | 24 months |
Revenues and Contract Balance_6
Revenues and Contract Balances - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Contract with Customer, Asset and Liability [Abstract] | ||
Billed and billable receivables | $ 753,254 | $ 800,597 |
Contract assets – current unbilled receivables | 115,375 | 125,547 |
Contract assets – current costs to obtain | 5,186 | 5,167 |
Accounts receivable, long-term | 11,843 | 10,199 |
Contract assets – noncurrent costs to obtain | 9,197 | 10,703 |
Contract liabilities – current deferred revenue and other contract liabilities | (110,227) | (84,810) |
Contract liabilities – noncurrent deferred revenue and other contract liabilities | $ (6,308) | $ (7,552) |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Materials, purchased parts and supplies | $ 64,788 | $ 57,407 |
Work in process | 20,423 | 13,207 |
Finished goods | 28,558 | 28,748 |
Total | $ 113,769 | $ 99,362 |
Sales of Receivables (Details)
Sales of Receivables (Details) $ in Millions | Dec. 22, 2022 USD ($) |
MARPA | |
MARPA maturity date | Dec. 21, 2023 |
MARPA maximum commitment | $ 200 |
Sales of Receivables - Summary
Sales of Receivables - Summary of MARPA Activity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |||
Transfers And Servicing Of Financial Assets [Abstract] | |||||||
Outstanding balance sold to Purchaser | $ 199,962 | [1] | $ 157,785 | $ 187,478 | [1] | $ 182,027 | |
Sales of receivables | 1,460,825 | 1,361,521 | |||||
Cash collections | (1,418,648) | (1,356,070) | |||||
Cash collected, not remitted to Purchaser | [2] | (59,827) | (49,166) | ||||
Remaining sold receivables | $ 140,135 | $ 138,312 | |||||
[1]For the six months ended December 31, 2022 and 2021, the Company recorded net cash inflows of $42.2 million and $5.5 million in its cash flows from operating activities, respectively, from sold receivables. MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.[2]Includes the cash collected on behalf of but not yet remitted to Purchaser as of December 31, 2022 and 2021. This balance is included in other accrued expenses and current liabilities as of the balance sheet date. |
Sales of Receivables - Summar_2
Sales of Receivables - Summary of MARPA Activity (Parentheticals) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers And Servicing Of Financial Assets [Abstract] | ||
Cash provided (used) by MARPA | $ 42.2 | $ 5.5 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 1,574,375 | $ 1,742,688 |
Less unamortized discounts and debt issuance costs | (8,789) | (9,915) |
Total long-term debt | 1,565,586 | 1,732,773 |
Less current portion | (30,625) | (30,625) |
Long-term debt, net of current portion | 1,534,961 | 1,702,148 |
Total long-term debt | 1,565,586 | 1,732,773 |
Bank credit facility - term loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | 1,194,375 | 1,209,688 |
Bank credit facility - revolver loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 380,000 | $ 533,000 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||
Outstanding amount under Credit Facility | $ 1,574,375,000 | $ 1,742,688,000 |
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 | $ 3,200,000,000 | |
Outstanding borrowings interest rate | 4.50% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 1,975,000,000 | |
Outstanding amount under Credit Facility | 380,000,000 | 533,000,000 |
Term loans | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | 1,225,000,000 | |
Outstanding amount under Credit Facility | $ 1,194,375,000 | $ 1,209,688,000 |
Term loan period | 5 years | |
Loan maturity date | Dec. 13, 2026 | |
Term loan frequency of payment | quarterly | |
Term loan principal payment | $ 7,700,000 | |
Term loans | Principal Payment After December 31, 2023 | ||
Debt Instrument [Line Items] | ||
Term loan principal payment | 15,300,000 | |
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 |
Debt - Cash Flow Hedges (Detail
Debt - Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long Term Debt [Abstract] | ||||
Gain recognized in other comprehensive income | $ 904 | $ 2,194 | $ 16,490 | $ 1,186 |
Amounts reclassified to earnings from accumulated other comprehensive loss | (2,420) | 3,230 | (2,477) | 6,452 |
Net current period other comprehensive (loss) income | $ (1,516) | $ 5,424 | $ 14,013 | $ 7,638 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 87,101 | $ 90,299 | $ 176,226 | $ 178,408 |
Weighted-average basic shares outstanding | 23,506 | 23,399 | 23,463 | 23,480 |
Dilutive effect of RSUs after application of treasury stock method | 170 | 199 | 214 | 242 |
Weighted-average number of diluted shares outstanding during the period | 23,676 | 23,598 | 23,677 | 23,722 |
Basic earnings per share | $ 3.71 | $ 3.86 | $ 7.51 | $ 7.60 |
Diluted earnings per share | $ 3.68 | $ 3.83 | $ 7.44 | $ 7.52 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Deferred tax assets, increase | $ 20 | $ 39.8 | ||
Effective income tax rate | 21.50% | 20.20% | 22.50% | 22.30% |
Business Segments (Details)
Business Segments (Details) | 6 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segments - Summarized
Business Segments - Summarized Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,649,416 | $ 1,485,778 | $ 3,255,175 | $ 2,976,676 |
Net income | 87,101 | 90,299 | 176,226 | 178,408 |
Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,605,175 | 1,438,250 | 3,164,070 | 2,881,972 |
Net income | 80,362 | 83,407 | 160,915 | 165,104 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 44,241 | 47,528 | 91,105 | 94,704 |
Net income | $ 6,739 | $ 6,892 | $ 15,311 | $ 13,304 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Level 2 - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 1,305 | $ 337 |
Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 37,126 | $ 19,184 |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textual) | Jan. 24, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Share repurchases, authorized amount | $ 750,000,000 |