QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | o | ||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||
Emerging growth company |
PAGE | ||||||||
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenues | $ | $ | ||||||||||||
Costs of revenues: | ||||||||||||||
Direct costs | ||||||||||||||
Indirect costs and selling expenses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total costs of revenues | ||||||||||||||
Income from operations | ||||||||||||||
Interest expense and other, net | ||||||||||||||
Income before income taxes | ||||||||||||||
Income taxes | ||||||||||||||
Net income | $ | $ | ||||||||||||
Basic earnings per share | $ | $ | ||||||||||||
Diluted earnings per share | $ | $ | ||||||||||||
Weighted-average basic shares outstanding | ||||||||||||||
Weighted-average diluted shares outstanding |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||
Foreign currency translation adjustment | ( | ( | ||||||||||||
Change in fair value of interest rate swap agreements, net of tax | ||||||||||||||
Total other comprehensive loss, net of tax | ( | ( | ||||||||||||
Comprehensive income | $ | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Supplemental retirement savings plan assets | ||||||||||||||
Accounts receivable, long-term | ||||||||||||||
Other long-term assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Accrued compensation and benefits | ||||||||||||||
Other accrued expenses and current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, net of current portion | ||||||||||||||
Supplemental retirement savings plan obligations, net of current portion | ||||||||||||||
Deferred income taxes | ||||||||||||||
Operating lease liabilities, noncurrent | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | $ | $ | ||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred stock $ | $ | $ | ||||||||||||
Common stock $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock, at cost ( | ( | ( | ||||||||||||
Total CACI shareholders’ equity | ||||||||||||||
Noncontrolling interest | ||||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Amortization of deferred financing costs | ||||||||||||||
Non-cash lease expense | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Deferred income taxes | ( | ( | ||||||||||||
Changes in operating assets and liabilities, net of effect of business acquisitions: | ||||||||||||||
Accounts receivable, net | ( | |||||||||||||
Prepaid expenses and other assets | ( | ( | ||||||||||||
Accounts payable and other accrued expenses | ( | |||||||||||||
Accrued compensation and benefits | ( | ( | ||||||||||||
Income taxes payable and receivable | ||||||||||||||
Operating lease liabilities | ( | ( | ||||||||||||
Long-term liabilities | ||||||||||||||
Net cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Acquisitions of businesses, net of cash acquired | ( | |||||||||||||
Other | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Proceeds from borrowings under bank credit facilities | ||||||||||||||
Principal payments made under bank credit facilities | ( | ( | ||||||||||||
Proceeds from employee stock purchase plans | ||||||||||||||
Repurchases of common stock | ( | ( | ||||||||||||
Payment of taxes for equity transactions | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ( | ||||||||||||
Net change in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents, beginning of period | ||||||||||||||
Cash and cash equivalents, end of period | $ | $ | ||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||
Cash paid during the period for income taxes, net of refunds | $ | $ | ||||||||||||
Cash paid during the period for interest | $ | $ | ||||||||||||
Non-cash financing and investing activities: | ||||||||||||||
Accrued share repurchases | $ | $ | ||||||||||||
Accrued capital expenditures | $ | $ | ||||||||||||
Landlord sponsored tenant incentives | $ | $ |
Common Stock Shares Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Shares Amount | Total CACI Shareholders’ Equity | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholdings on restricted share vestings | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | ( | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued under stock purchase plans | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Domestic | International | Total | ||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | |||||||||||||||||
Goodwill acquired (1) | ( | ( | ||||||||||||||||||
Foreign currency translation | ( | ( | ( | |||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | |||||||||||||||||||||||||||||||||
Customer contracts and related customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Acquired technologies | ( | ( | ||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Cost-plus-fee | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Fixed-price | ||||||||||||||||||||||||||||||||||||||
Time-and-materials | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Department of Defense | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Federal civilian agencies | ||||||||||||||||||||||||||||||||||||||
Commercial and other | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Prime contractor | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Subcontractor | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||
Expertise | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Technology | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Description of Contract Related Balance | Financial Statement Classification | September 30, 2023 | June 30, 2023 | |||||||||||||||||
Billed and billable receivables | Accounts receivable, net | $ | $ | |||||||||||||||||
Contract assets – current unbilled receivables | Accounts receivable, net | |||||||||||||||||||
Contract assets – current costs to obtain | Prepaid expenses and other current assets | |||||||||||||||||||
Contract assets – noncurrent unbilled receivables | Accounts receivable, long-term | |||||||||||||||||||
Contract assets – noncurrent costs to obtain | Other long-term assets | |||||||||||||||||||
Contract liabilities – current deferred revenue and other contract liabilities | Other accrued expenses and current liabilities | ( | ( | |||||||||||||||||
Contract liabilities – noncurrent deferred revenue and other contract liabilities | Other long-term liabilities | ( | ( |
September 30, 2023 | June 30, 2023 | |||||||||||||
Materials, purchased parts and supplies | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Finished goods | ||||||||||||||
Total | $ | $ |
As of and for the Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Beginning balance: | $ | $ | ||||||||||||
Sales of receivables | ||||||||||||||
Cash collections | ( | ( | ||||||||||||
Outstanding balance sold to Purchaser: (1) | ||||||||||||||
Cash collected, not remitted to Purchaser (2) | ( | ( | ||||||||||||
Remaining sold receivables | $ | $ |
September 30, 2023 | June 30, 2023 | |||||||||||||
Bank credit facility – term loans | $ | $ | ||||||||||||
Bank credit facility – revolver loans | ||||||||||||||
Principal amount of long-term debt | ||||||||||||||
Less unamortized discounts and debt issuance costs | ( | ( | ||||||||||||
Total long-term debt | ||||||||||||||
Less current portion | ( | ( | ||||||||||||
Long-term debt, net of current portion | $ | $ |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Gain recognized in other comprehensive income | $ | $ | ||||||||||||
Amounts reclassified to earnings from accumulated other comprehensive loss | ( | ( | ||||||||||||
Net current period other comprehensive income | $ | $ |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net income | $ | $ | ||||||||||||
Weighted-average number of basic shares outstanding during the period | ||||||||||||||
Dilutive effect of RSUs after application of treasury stock method | ||||||||||||||
Weighted-average number of diluted shares outstanding during the period | ||||||||||||||
Basic earnings per share | $ | $ | ||||||||||||
Diluted earnings per share | $ | $ |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenues: | ||||||||||||||
Domestic | $ | $ | ||||||||||||
International | ||||||||||||||
Total revenues | $ | $ | ||||||||||||
Net income: | ||||||||||||||
Domestic | $ | $ | ||||||||||||
International | ||||||||||||||
Total net income | $ | $ |
Description of Financial Instrument | Financial Statement Classification | Fair Value Hierarchy | September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Interest rate swap agreements | Prepaid expenses and other current assets | Level 2 | $ | $ | ||||||||||||||||||||||
Interest rate swap agreements | Other long-term assets | Level 2 | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Dollars | Percent | ||||||||||||||||||||||
Revenues | $ | 1,850,147 | $ | 1,605,759 | $ | 244,388 | 15.2 | % | |||||||||||||||
Costs of revenues: | |||||||||||||||||||||||
Direct costs | 1,272,918 | 1,055,772 | 217,146 | 20.6 | |||||||||||||||||||
Indirect costs and selling expenses | 404,633 | 382,081 | 22,552 | 5.9 | |||||||||||||||||||
Depreciation and amortization | 35,247 | 35,103 | 144 | 0.4 | |||||||||||||||||||
Total costs of revenues | 1,712,798 | 1,472,956 | 239,842 | 16.3 | |||||||||||||||||||
Income from operations | 137,349 | 132,803 | 4,546 | 3.4 | |||||||||||||||||||
Interest expense and other, net | 25,571 | 16,193 | 9,378 | 57.9 | |||||||||||||||||||
Income before income taxes | 111,778 | 116,610 | (4,832) | (4.1) | |||||||||||||||||||
Income taxes | 25,731 | 27,485 | (1,754) | (6.4) | |||||||||||||||||||
Net income | $ | 86,047 | $ | 89,125 | $ | (3,078) | (3.5) |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Dollars | Percent | ||||||||||||||||||||||
Department of Defense | $ | 1,352,306 | $ | 1,095,320 | $ | 256,986 | 23.5 | % | |||||||||||||||
Federal Civilian Agencies | 407,344 | 424,087 | (16,743) | (3.9) | |||||||||||||||||||
Commercial and other | 90,497 | 86,352 | 4,145 | 4.8 | |||||||||||||||||||
Total | $ | 1,850,147 | $ | 1,605,759 | $ | 244,388 | 15.2 | % |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash provided by operating activities | $ | 70,088 | $ | 144,843 | ||||||||||
Net cash used in investing activities | (12,364) | (12,771) | ||||||||||||
Net cash used in financing activities | (45,561) | (106,096) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,393) | (4,144) | ||||||||||||
Net change in cash and cash equivalents | $ | 9,770 | $ | 21,832 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
July 2023 | 8,067 | $ | 344.80 | 8,067 | 1,852,435 | |||||||||||||||||||||
August 2023 | 186,371 | 339.72 | 186,371 | 1,666,064 | ||||||||||||||||||||||
September 2023 | 390,369 | 318.33 | 390,369 | 1,275,695 | ||||||||||||||||||||||
Total | 584,807 | $ | 325.52 | 584,807 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Description | Filed with this Form 10-Q | Form | Filing Date | Exhibit No. | |||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||
101.INS | XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) |
CACI International Inc | ||||||||
Registrant | ||||||||
Date: October 26, 2023 | By: | /s/ John S. Mengucci | ||||||
John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer) | ||||||||
Date: October 26, 2023 | By: | /s/ Jeffrey D. MacLauchlan | ||||||
Jeffrey D. MacLauchlan Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer) | ||||||||
Date: October 26, 2023 | |||||
/s/ JOHN S. MENGUCCI | |||||
John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer) |
Date: October 26, 2023 | |||||
/s/ JEFFREY D. MACLAUCHLAN | |||||
Jeffrey D. MacLauchlan Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)) |
Date: October 26, 2023 | |||||
/s/ JOHN S. MENGUCCI | |||||
John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer) |
Date: October 26, 2023 | |||||
/s/ JEFFREY D. MACLAUCHLAN | |||||
Jeffrey D. MacLauchlan Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||
Revenues | $ 1,850,147 | $ 1,605,759 |
Costs of revenues: | ||
Direct costs | 1,272,918 | 1,055,772 |
Indirect costs and selling expenses | 404,633 | 382,081 |
Depreciation and amortization | 35,247 | 35,103 |
Total costs of revenues | 1,712,798 | 1,472,956 |
Income from operations | 137,349 | 132,803 |
Interest expense and other, net | 25,571 | 16,193 |
Income before income taxes | 111,778 | 116,610 |
Income taxes | 25,731 | 27,485 |
Net income | $ 86,047 | $ 89,125 |
Basic earnings per share (in dollars per shares) | $ 3.80 | $ 3.81 |
Diluted earnings per share (in dollars per shares) | $ 3.76 | $ 3.76 |
Weighted-average basic shares outstanding (in shares) | 22,647 | 23,420 |
Weighted-average diluted shares outstanding (in shares) | 22,894 | 23,678 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 86,047 | $ 89,125 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (9,201) | (17,489) |
Change in fair value of interest rate swap agreements, net of tax | 5,432 | 15,529 |
Total other comprehensive loss, net of tax | (3,769) | (1,960) |
Comprehensive income | $ 82,278 | $ 87,165 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 42,929,000 | 42,923,000 |
Common stock, shares outstanding (in shares) | 22,226,000 | 22,797,000 |
Treasury stock, shares at cost (in shares) | 20,703,000 | 20,126,000 |
Basis of Presentation |
3 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations, 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 September 30, 2023 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, 2023. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year.
|
Recent Accounting Pronouncements |
3 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsThere have been no recently adopted or recently issued accounting pronouncements that are material or expected to be material to the Company's consolidated financial statements. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the three months ended September 30, 2023 are as follows (in thousands):
__________________________________________________ (1)Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. The final purchase price allocation for our fiscal year 2023 acquisition remains open as of September 30, 2023. There were no impairments of goodwill during the periods presented. Intangible Assets Intangible assets consisted of the following (in thousands):
Amortization expense related to intangible assets was $18.4 million and $19.1 million for the three months ended September 30, 2023 and September 30, 2022, respectively.
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Revenues and Contract Balances |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and Contract Balances | 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):
Disaggregated revenues by customer type were as follows (in thousands):
Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):
Disaggregated revenues by expertise or technology were as follows (in thousands):
Changes in Estimates Aggregate net changes in estimates for the three months ended September 30, 2023 reflected an increase to income before income taxes of $2.4 million ($0.08 per diluted share), compared with $5.7 million ($0.18 per diluted share), for the three months ended September 30, 2022. The Company uses its statutory tax rate when calculating the impact to diluted earnings per share. Revenues recognized from previously satisfied performance obligations were not material for the three months ended September 30, 2023 and 2022, respectively. The change in revenues recognized from previously satisfied performance obligations 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 September 30, 2023, the Company had $10.3 billion of remaining performance obligations and expects to recognize approximately 44% and 66% as revenue 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):
During the three months ended September 30, 2023, we recognized $64.4 million of revenues, compared with $50.5 million of revenues for the three months ended September 30, 2022, that was included in a previously recorded contract liability as of the beginning of the period.
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Inventories |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following (in thousands):
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.
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Sales of Receivables |
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Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of Receivables | 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, and derecognizes the sold receivables from its balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature. 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 September 30, 2023. 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):
__________________________________________________ (1)For the three months ended September 30, 2023 and 2022, the Company recorded a net cash outflow of $23.2 million and a net cash inflow of $1.9 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 September 30, 2023 and 2022. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt consisted of the following (in thousands):
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 September 30, 2023, the Company had $625.0 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 secured facility under which principal payments are due in quarterly installments of $7.7 million through December 31, 2023 and $15.3 million thereafter until the balance is due in full on December 13, 2026. As of September 30, 2023, the Company had $1,171.4 million outstanding under the Term Loan. 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 Secured Overnight Financing Rate (SOFR) rate plus, in each case, an applicable rate based upon the Company’s consolidated total net leverage ratio. As of September 30, 2023, 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 4.92%. 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 September 30, 2023, 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 $1,100.0 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 months ended September 30, 2023 and 2022 is as follows (in thousands):
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Legal Proceedings and Other Commitments and Contingencies |
3 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Other Commitments and Contingencies | 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.
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data):
Share Repurchases On January 26, 2023, the Company’s Board of Directors authorized a share repurchase program of up to $750.0 million of the Company’s common stock (the "2023 Repurchase Program"). On January 30, 2023, CACI entered into an Accelerated Share Repurchase (ASR) Agreement with Citibank, N.A (Citibank). Under the ASR Agreement, we paid $250.0 million to Citibank and received an initial delivery of approximately 0.7 million shares of our common stock, which became treasury shares. On August 4, 2023, the ASR was completed and an additional 0.1 million shares of common stock were received which became treasury shares. In total, 0.8 million shares were repurchased at an average price per share of $303.57. In addition to the ASR, during the three months ended September 30, 2023, CACI repurchased 0.4 million shares of its outstanding common stock for $137.6 million on the open market at an average share price of $319.24 including commissions paid. The total remaining authorization for future common share repurchases under the 2023 Repurchase Program was $349.7 million as of September 30, 2023.
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Income Taxes |
3 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 and a state jurisdiction for fiscal years 2019 and 2020. The Company does not expect resolution of these examinations 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 capitalize and amortize such costs over five years. Based upon our interpretation of the law as currently enacted, we estimate that the fiscal 2024 impact will result in increases of $75.3 million to both our income taxes payable and net deferred tax assets. We also estimate a fiscal 2024 increase to our liability for unrecognized tax benefits of $72.9 million, with a corresponding increase to net deferred tax assets. Although it is possible that Congress amends this provision, potentially with retroactive effect, we have no assurance that Congress will take any action with respect to this provision. For the three months ended September 30, 2023, the Company recognized a $13.0 million increase in our liability for unrecognized tax benefits and a $13.4 million increase in income taxes payable, with corresponding increases to net deferred tax assets. The Company’s effective income tax rate was 23.0% and 23.6% for the three months ended September 30, 2023 and 2022, respectively. The effective tax rates for the three months ended September 30, 2023, and 2022 were favorably impacted by research and development tax credits, partially offset by the unfavorable impacts of certain executive compensation.
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Business Segments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | 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):
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Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and categorizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data which requires development of assumptions that market participants would use in pricing the asset or liability (Level 3). The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):
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.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||
Net income | $ 86,047 | $ 89,125 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations, 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 September 30, 2023 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, 2023. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year.
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Recent Accounting Pronouncements | There have been no recently adopted or recently issued accounting pronouncements that are material or expected to be material to the Company's consolidated financial statements. |
Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the three months ended September 30, 2023 are as follows (in thousands):
__________________________________________________ (1)Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable. The final purchase price allocation for our fiscal year 2023 acquisition remains open as of September 30, 2023.
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Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands):
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Revenues and Contract Balances (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Revenues | Disaggregated revenues by contract type were as follows (in thousands):
Disaggregated revenues by customer type were as follows (in thousands):
Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):
Disaggregated revenues by expertise or technology were as follows (in thousands):
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Schedule of Contract Assets and Liabilities | Contract balances consisted of the following (in thousands):
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Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventories | Inventories consisted of the following (in thousands):
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Sales of Receivables (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of MARPA Activity | MARPA activity consisted of the following (in thousands):
__________________________________________________ (1)For the three months ended September 30, 2023 and 2022, the Company recorded a net cash outflow of $23.2 million and a net cash inflow of $1.9 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 September 30, 2023 and 2022. This balance is included in other accrued expenses and current liabilities as of the balance sheet date.
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands):
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Schedule of Cash Flow Hedges | The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three months ended September 30, 2023 and 2022 is as follows (in thousands):
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data):
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Business Segments (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summarized Financial Information of Reportable Segments | Summarized financial information for the Company’s reportable segments is as follows (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recurring Fair Value Measurements | The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):
|
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 4,084,705 |
Goodwill acquired | (633) |
Foreign currency translation | (5,704) |
Ending balance | 4,078,368 |
Domestic | |
Goodwill [Roll Forward] | |
Beginning balance | 3,940,064 |
Goodwill acquired | 0 |
Foreign currency translation | (531) |
Ending balance | 3,939,533 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 144,641 |
Goodwill acquired | (633) |
Foreign currency translation | (5,173) |
Ending balance | $ 138,835 |
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 932,435 | $ 933,057 |
Accumulated amortization | (443,309) | (425,222) |
Net carrying value | 489,126 | 507,835 |
Customer contracts and related customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | 655,330 | 655,877 |
Accumulated amortization | (323,302) | (313,745) |
Net carrying value | 332,028 | 342,132 |
Acquired technologies | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying value | 277,105 | 277,180 |
Accumulated amortization | (120,007) | (111,477) |
Net carrying value | $ 157,098 | $ 165,703 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 18.4 | $ 19.1 |
Revenues and Contract Balances - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Change In Accounting Estimate [Line Items] | ||
Income before income taxes | $ 111,778,000 | $ 116,610,000 |
Diluted earnings per share (in dollars per shares) | $ 3.76 | $ 3.76 |
EAC Adjustments | ||
Change In Accounting Estimate [Line Items] | ||
Income before income taxes | $ 2,400,000 | $ 5,700,000 |
Diluted earnings per share (in dollars per shares) | $ 0.08 | $ 0.18 |
Revenue from previously satisfied performance obligations | $ 0 | $ 0 |
Revenues and Contract Balances - Remaining Performance Obligations (Details) $ in Billions |
Sep. 30, 2023
USD ($)
|
---|---|
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations | $ 10.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 44.00% |
Remaining performance obligations, expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 66.00% |
Remaining performance obligations, expected timing of satisfaction | 24 months |
Revenues and Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Contract with Customer, Asset and Liability [Abstract] | ||
Billed and billable receivables | $ 852,523 | $ 763,547 |
Contract assets – current unbilled receivables | 150,115 | 131,399 |
Contract assets – current costs to obtain | 5,512 | 5,163 |
Contract assets – noncurrent unbilled receivables | 13,296 | 11,857 |
Contract assets – noncurrent costs to obtain | 9,840 | 8,294 |
Contract liabilities – current deferred revenue and other contract liabilities | (127,806) | (138,469) |
Contract liabilities – noncurrent deferred revenue and other contract liabilities | $ (5,613) | $ (5,522) |
Revenues and Contract Balances - Change in Contract with Customer Liability (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||
Liability, revenue recognized | $ 64.4 | $ 50.5 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Materials, purchased parts and supplies | $ 89,063 | $ 78,691 |
Work in process | 19,774 | 21,894 |
Finished goods | 32,043 | 30,006 |
Total | $ 140,880 | $ 130,591 |
Sales of Receivables - Narrative (Details) $ in Millions |
Dec. 22, 2022
USD ($)
|
---|---|
Transfers and Servicing of Financial Assets [Abstract] | |
MARPA maximum commitment | $ 200.0 |
Sales of Receivables - Schedule of MARPA Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Transfer of Financial Assets Accounted for as Sales, Amount [Roll Forward] | ||
Beginning balance | $ 200,000 | $ 157,785 |
Sales of receivables | 695,260 | 737,873 |
Cash collections | (718,427) | (735,969) |
Outstanding balance sold to Purchaser | 176,833 | 159,689 |
Cash collected, not remitted to Purchaser | (80,542) | (24,550) |
Remaining sold receivables | 96,291 | 135,139 |
Cash provided (used) by MARPA | $ (23,200) | $ 1,900 |
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 1,796,406 | $ 1,704,063 |
Less unamortized discounts and debt issuance costs | (7,135) | (7,682) |
Total long-term debt | 1,789,271 | 1,696,381 |
Less current portion | (53,594) | (45,938) |
Long-term debt, net of current portion | 1,735,677 | 1,650,443 |
Bank credit facility – term loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | 1,171,406 | 1,179,063 |
Bank credit facility – revolver loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 625,000 | $ 525,000 |
Debt - Schedule of Cash Flow Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Debt Disclosure [Abstract] | ||
Gain recognized in other comprehensive income | $ 12,173 | $ 15,586 |
Amounts reclassified to earnings from accumulated other comprehensive loss | (6,741) | (57) |
Net current period other comprehensive income | $ 5,432 | $ 15,529 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 86,047 | $ 89,125 |
Weighted-average number of basic shares outstanding during the period (in shares) | 22,647 | 23,420 |
Dilutive effect of RSUs after application of treasury stock method (in shares) | 247 | 258 |
Weighted-average number of diluted shares outstanding during the period (in shares) | 22,894 | 23,678 |
Basic earnings per share (in dollars per shares) | $ 3.80 | $ 3.81 |
Diluted earnings per share (in dollars per shares) | $ 3.76 | $ 3.76 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Expected increase in income tax payable and net deferred tax assets | $ 75.3 | |
Expected increase in unrecognized tax benefits | 72.9 | |
Unrecognized tax benefits, increase | 13.0 | |
Income taxes payable, increase | $ 13.4 | |
Effective income tax rate | 23.00% | 23.60% |
Business Segments - Narrative (Details) |
3 Months Ended |
---|---|
Sep. 30, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segments - Schedule of Summarized Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,850,147 | $ 1,605,759 |
Net income | 86,047 | 89,125 |
Domestic | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,795,168 | 1,558,895 |
Net income | 76,544 | 80,553 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenues | 54,979 | 46,864 |
Net income | $ 9,503 | $ 8,572 |
Fair Value Measurements - Schedule of Recurring Fair Value Measurements (Details) - Recurring - Level 2 - Interest rate swap agreements - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
---|---|---|
Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 2,363 | $ 17 |
Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 48,228 | $ 43,283 |
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