Revenues and Contract Balances

3 Months Ended

Sep. 30, 2023

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):

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	1,134,435	$	—	$	1,134,435	$	934,746	$	—	$	934,746
Fixed-price	467,216		34,861		502,077		448,562		33,211		481,773
Time-and-materials	193,517		20,118		213,635		175,587		13,653		189,240
Total	$	1,795,168	$	54,979	$	1,850,147	$	1,558,895	$	46,864	$	1,605,759

Disaggregated revenues by customer type were as follows (in thousands):

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Domestic		International		Total		Domestic		International		Total
Department of Defense	$	1,352,306	$	—	$	1,352,306	$	1,095,320	$	—	$	1,095,320
Federal civilian agencies	407,344		—		407,344		424,087		—		424,087
Commercial and other	35,518		54,979		90,497		39,488		46,864		86,352
Total	$	1,795,168	$	54,979	$	1,850,147	$	1,558,895	$	46,864	$	1,605,759

Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Domestic		International		Total		Domestic		International		Total
Prime contractor	$	1,601,091	$	48,271	$	1,649,362	$	1,407,454	$	42,856	$	1,450,310
Subcontractor	194,077		6,708		200,785		151,441		4,008		155,449
Total	$	1,795,168	$	54,979	$	1,850,147	$	1,558,895	$	46,864	$	1,605,759

Disaggregated revenues by expertise or technology were as follows (in thousands):

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Domestic		International		Total		Domestic		International		Total
Expertise	$	857,196	$	20,898	$	878,094	$	717,650	$	16,553	$	734,203
Technology	937,972		34,081		972,053		841,245		30,311		871,556
Total	$	1,795,168	$	54,979	$	1,850,147	$	1,558,895	$	46,864	$	1,605,759

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):

Description of Contract Related Balance	Financial Statement Classification	September 30, 2023		June 30, 2023
Billed and billable receivables	Accounts receivable, net	$	852,523	$	763,547
Contract assets – current unbilled receivables	Accounts receivable, net	150,115		131,399
Contract assets – current costs to obtain	Prepaid expenses and other current assets	5,512		5,163
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term	13,296		11,857
Contract assets – noncurrent costs to obtain	Other long-term assets	9,840		8,294
Contract liabilities – current deferred revenue and other contract liabilities	Other accrued expenses and current liabilities	(127,806)		(138,469)
Contract liabilities – noncurrent deferred revenue and other contract liabilities	Other long-term liabilities	(5,613)		(5,522)

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.