Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | May 17, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34972 | ||
Entity Registrant Name | Booz Allen Hamilton Holding Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2634160 | ||
Entity Address, Address Line One | 8283 Greensboro Drive, | ||
Entity Address, City or Town | McLean, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
City Area Code | 703 | ||
Local Phone Number | 902-5000 | ||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | BAH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,457,916,666 | ||
Entity Common Stock, Shares Outstanding | 132,185,735 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its Annual Meeting of Stockholders scheduled for July 27, 2022 ar e incorporated by reference into Part III. | ||
Entity Central Index Key | 0001443646 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 695,910 | $ 990,955 |
Accounts receivable, net | 1,622,989 | 1,411,894 |
Prepaid expenses and other current assets | 126,777 | 233,323 |
Total current assets | 2,445,676 | 2,636,172 |
Property and equipment, net of accumulated depreciation | 202,229 | 204,642 |
Operating lease right-of-use assets | 227,231 | 239,374 |
Intangible assets, net of accumulated amortization | 646,682 | 307,128 |
Goodwill | 2,021,931 | 1,581,160 |
Other long-term assets | 481,826 | 531,125 |
Total assets | 6,025,575 | 5,499,601 |
Current liabilities: | ||
Current portion of long-term debt | 68,379 | 77,865 |
Accounts payable and other accrued expenses | 902,616 | 666,971 |
Accrued compensation and benefits | 438,634 | 425,615 |
Operating lease liabilities | 52,334 | 54,956 |
Other current liabilities | 71,991 | 65,698 |
Total current liabilities | 1,533,954 | 1,291,105 |
Long-term debt, net of current portion | 2,731,693 | 2,278,731 |
Operating lease liabilities, net of current portion | 247,070 | 263,144 |
Deferred tax liabilities | 239,602 | 364,461 |
Other long-term liabilities | 226,535 | 230,984 |
Total liabilities | 4,978,854 | 4,428,425 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity: | ||
Common Stock, Value, Issued | 1,646 | 1,629 |
Treasury Stock, Value | (1,635,454) | (1,216,163) |
Additional paid-in capital | 656,222 | 557,957 |
Retained earnings | 2,015,071 | 1,757,524 |
Accumulated other comprehensive income (loss) | 8,585 | (29,771) |
Total Booz Allen stockholders’ equity | 1,046,070 | 1,071,176 |
Non-controlling interest | 651 | 0 |
Total stockholders’ equity | 1,046,721 | 1,071,176 |
Total liabilities and stockholders’ equity | $ 6,025,575 | $ 5,499,601 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 164,372,545 | 162,950,606 |
Common stock, outstanding (in shares) | 132,584,348 | 136,246,029 |
Treasury stock (in shares) | 31,788,197 | 26,704,577 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 8,363,700 | $ 7,858,938 | $ 7,463,841 |
Operating costs and expenses: | |||
Cost of revenue | 3,899,622 | 3,657,530 | 3,379,180 |
Billable expenses | 2,474,163 | 2,325,888 | 2,298,413 |
General and administrative expenses | 1,158,987 | 1,036,834 | 1,035,965 |
Depreciation and amortization | 145,747 | 84,315 | 81,081 |
Total operating costs and expenses | 7,678,519 | 7,104,567 | 6,794,639 |
Operating income | 685,181 | 754,371 | 669,202 |
Interest expense | (92,352) | (81,270) | (96,960) |
Other income (expense), net | 11,214 | (10,662) | 7,192 |
Income before income taxes | 604,043 | 662,439 | 579,434 |
Income tax expense | 137,466 | 53,481 | 96,831 |
Net income | 466,577 | 608,958 | 482,603 |
Net loss attributable to non-controlling interest | (163) | 0 | 0 |
Net income attributable to common stockholders | $ 466,740 | $ 608,958 | $ 482,603 |
Earnings per share of common stock (Note 4): | |||
Basic (in dollars per share) | $ 3.46 | $ 4.40 | $ 3.43 |
Diluted (in dollars per share) | $ 3.44 | $ 4.37 | $ 3.41 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 466,577 | $ 608,958 | $ 482,603 |
Other comprehensive income, net of tax: | |||
Change in unrealized gain (loss) on derivatives designated as cash flow hedges | 27,983 | 13,665 | (39,752) |
Change in postretirement plan costs | 10,373 | 2,565 | 4,941 |
Total other comprehensive (loss) income, net of tax | 38,356 | 16,230 | (34,811) |
Comprehensive income | $ 504,933 | $ 625,188 | $ 447,792 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 466,577 | $ 608,958 | $ 482,603 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 145,747 | 84,315 | 81,081 |
Noncash lease expense | 55,881 | 53,202 | 55,096 |
Stock-based compensation expense | 69,784 | 59,844 | 43,290 |
Deferred income taxes | (130,197) | 231,998 | 65,434 |
Amortization of debt issuance costs | 4,619 | 4,395 | 4,688 |
Loss on debt extinguishment | 2,515 | 13,239 | 1,451 |
(Gains) losses on dispositions, and other | (3,388) | (3,322) | 1,772 |
Gains associated with equity method investment activities | (12,759) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (154,652) | 47,081 | (129,107) |
Income taxes receivable / payable | 132,029 | (363,396) | (122,977) |
Prepaid expenses and other current and long-term assets | (19,489) | (5,069) | (13,506) |
Accrued compensation and benefits | 12,620 | 71,713 | 18,044 |
Accounts payable and other accrued expenses | 194,827 | (31,506) | 48,260 |
Other current and long-term liabilities | (27,588) | (52,768) | 15,299 |
Net cash provided by operating activities | 736,526 | 718,684 | 551,428 |
Cash flows from investing activities | |||
Purchases of property, equipment, and software | (79,964) | (87,210) | (128,079) |
Payments for business acquisitions, net of cash acquired | (780,334) | 0 | 0 |
Proceeds from sales of assets, net of payment | 0 | 3,094 | 0 |
Payment for minority investment in entity | 0 | (74,168) | 0 |
Payments for cost method investments | (7,000) | 0 | 0 |
Other investing activities | (427) | 0 | 0 |
Net cash used in investing activities | (867,725) | (158,284) | (128,079) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 23,371 | 19,408 | 14,987 |
Stock option exercises | 5,929 | 11,747 | 8,925 |
Repurchases of common stock | (418,859) | (313,397) | (182,224) |
Cash dividends paid | (209,057) | (181,066) | (146,602) |
Debt extinguishment costs | 0 | (8,971) | 0 |
Repayments on revolving credit facility, term loans, and Senior Notes | (112,257) | (527,865) | (76,922) |
Net proceeds from debt issuance | 487,027 | 691,496 | 497,891 |
Payment of deferred payment obligation | 0 | 0 | (80,000) |
Proceeds from revolving credit facility | 60,000 | 0 | 0 |
Other financing activities | 0 | (2,698) | (1,493) |
Net cash (used in) provided by financing activities | (163,846) | (311,346) | 34,562 |
Net (decrease) increase in cash and cash equivalents | (295,045) | 249,054 | 457,911 |
Cash and cash equivalents––beginning of year | 990,955 | 741,901 | 283,990 |
Cash and cash equivalents––end of year | 695,910 | 990,955 | 741,901 |
Supplemental disclosures of cash flow information | |||
Interest | 64,699 | 60,955 | 84,125 |
Income taxes | 127,069 | 176,711 | 109,754 |
Supplemental disclosures of non-cash investing and financing activities | |||
Share repurchases transacted but not settled and paid | 15,839 | 15,408 | 10,736 |
Noncash financing activities | $ 0 | $ 178 | $ 3,920 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Common StockClass A Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest |
Beginning of period (in shares) at Mar. 31, 2019 | 159,924,825 | (19,896,972) | ||||||||
Beginning of period at Mar. 31, 2019 | $ 675,366 | $ 1,599 | $ (711,450) | $ 401,596 | $ 994,811 | $ (11,190) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 833,258 | |||||||||
Issuance of common stock | 14,987 | $ 8 | 14,979 | |||||||
Stock options exercised (in shares) | 575,890 | |||||||||
Stock options exercised | 8,925 | $ 6 | 8,919 | |||||||
Repurchase of common stock (in shares) | (2,717,080) | |||||||||
Repurchase of common stock | (186,645) | $ (186,645) | ||||||||
Recognition of liability related to future restricted stock units vesting | (757) | (757) | ||||||||
Net income | $ 482,603 | 482,603 | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||
Other comprehensive income, net of tax | $ (34,811) | (34,811) | ||||||||
Dividends paid | (146,602) | (146,602) | ||||||||
Stock-based compensation expense | 43,290 | 43,290 | ||||||||
End of period (shares) at Mar. 31, 2020 | 161,333,973 | (22,614,052) | ||||||||
End of period at Mar. 31, 2020 | 856,356 | $ (1,180) | $ 1,613 | $ (898,095) | 468,027 | 1,330,812 | $ (1,180) | (46,001) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 1,112,183 | |||||||||
Issuance of common stock | 18,814 | $ 11 | 18,803 | |||||||
Stock options exercised (in shares) | 504,450 | |||||||||
Stock options exercised | 11,747 | $ 5 | 11,742 | |||||||
Repurchase of common stock (in shares) | (3,800,000) | (4,090,525) | ||||||||
Repurchase of common stock | (318,068) | $ (318,068) | ||||||||
Recognition of liability related to future restricted stock units vesting | (456) | (456) | ||||||||
Net income | 608,958 | 608,958 | ||||||||
Other comprehensive income, net of tax | 16,230 | 16,230 | ||||||||
Dividends paid | (181,066) | (181,066) | ||||||||
Stock-based compensation expense | 59,841 | 59,841 | ||||||||
End of period (shares) at Mar. 31, 2021 | 162,950,606 | (26,704,577) | ||||||||
End of period at Mar. 31, 2021 | 1,071,176 | $ 1,629 | $ (1,216,163) | 557,957 | 1,757,524 | (29,771) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 1,224,207 | |||||||||
Issuance of common stock | 22,170 | $ 15 | 22,155 | |||||||
Stock options exercised (in shares) | 197,732 | |||||||||
Stock options exercised | 5,929 | $ 2 | 5,927 | |||||||
Repurchase of common stock (in shares) | (4,700,000) | (5,083,620) | ||||||||
Repurchase of common stock | (419,291) | $ (419,291) | ||||||||
Recognition of liability related to future restricted stock units vesting | 1,213 | 1,213 | ||||||||
Net income | 466,577 | 466,740 | (163) | |||||||
Other comprehensive income, net of tax | 38,356 | 38,356 | ||||||||
Dividends paid | (209,193) | (209,193) | ||||||||
Stock-based compensation expense | 69,784 | 69,784 | ||||||||
Contribution to non-controlling interest | 0 | (814) | 814 | |||||||
End of period (shares) at Mar. 31, 2022 | 164,372,545 | (31,788,197) | ||||||||
End of period at Mar. 31, 2022 | $ 1,046,721 | $ 1,646 | $ (1,635,454) | $ 656,222 | $ 2,015,071 | $ 8,585 | $ 651 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 1.54 | $ 1.30 | $ 1.04 |
BUSINESS OVERVIEW
BUSINESS OVERVIEW | 12 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS OVERVIEW | BUSINESS OVERVIEW Our Business Booz Allen Hamilton Holding Corporation, including its wholly owned subsidiaries, or the Company, we, us, and our, was incorporated in Delaware in May 2008. The Company provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to U.S. and international governments, major corporations, and not-for-profit organizations. The Company reports operating results and financial data in one reportable segment. The Company is headquartered in McLean, Virginia, with approximately 29,300 employees as of March 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are majority-owned or otherwise controlled by the Company and have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and notes of the Company include its subsidiaries and other entities over which the Company has a controlling financial interest or where the company is a primary beneficiary. The Company uses the equity method to account for investments in entities that it does not control if it is otherwise able to exert significant influence over the entities' operating and financial policies. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost or cost net of other-than-temporary impairments. The Company’s fiscal year ends on March 31 and unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended March 31. The accompanying consolidated financial statements present the financial position of the Company as of March 31, 2022 and 2021 and the Company’s results of operations for fiscal 2022, 2021, and 2020. Certain amounts reported in the Company's prior year consolidated financial statements have been reclassified to conform to the current year presentation. Accounting Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and expected lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition, including the accrual of indirect costs, bonus and other incentive compensation, stock-based compensation, reserves for uncertain tax positions and valuation allowances on deferred tax assets, provisions for income taxes, postretirement obligations, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ materially from management's estimates. Revenue Recognition The Company's revenues from contracts with customers (clients) are derived from offerings that include consulting, analytics, digital solutions, engineering, and cyber services, substantially with the U.S. government and its agencies, and to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international commercial clients. The Company performs under various types of contracts, which include cost-reimbursable-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. The Company considers a contract with a customer to exist under Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers (Topic 606), when there is approval and commitment from both the Company and the customer, the rights of the parties and payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company also will consider whether two or more contracts entered into with the same customer should be combined and accounted for as a single contract. Furthermore, in certain transactions with commercial clients and with the U.S. government, the Company may commence providing services prior to receiving a formal approval from the customer. In these situations, the Company will consider the factors noted above, the risks associated with commencing the work and legal enforceability in determining whether a contract with the customer exists under Topic 606. Customer contracts are often modified to change the scope, price, specifications or other terms within the existing arrangement. Contract modifications are evaluated by management to determine whether the modification should be accounted for as part of the original performance obligation(s) or as a separate contract. If the modification adds distinct goods or services and increases the contract value proportionate to the stand-alone selling price of the additional goods or services, it will be accounted for as a separate contract. Generally, the Company’s contract modifications do not include goods or services which are distinct, and therefore are accounted for as part of the original performance obligation(s) with any impact on transaction price or estimated costs at completion being recorded as through a cumulative catch-up adjustment to revenue. The Company evaluates each service deliverable contracted with the customer to determine whether it represents promises to transfer distinct goods or services. Under Topic 606, these are referred to as performance obligations. One or more service deliverables often represent a single performance obligation. This evaluation requires significant judgment and the impact of combining or separating performance obligations may change the time over which revenue from the contract is recognized. The Company’s contracts generally provide a set of integrated or highly interrelated tasks or services and are therefore accounted for as a single performance obligation. However, in cases where we provide more than one distinct good or service within a customer contract, the contract is separated into individual performance obligations which are accounted for discretely. Contracts with the U.S. government are generally subject to the FAR and are priced based on estimated or actual costs of providing the goods or services. The Company derives a majority of its revenue from contracts awarded through a competitive bidding process. Pricing for non-U.S. government agencies and commercial customers is based on discrete negotiations with each customer. Certain of the Company’s contracts contain award fees, incentive fees or other provisions that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. Management estimates variable consideration as the most likely amount that we expect to achieve based on our assessment of the variable fee provisions within the contract, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. The Company may perform work under a contract that has not been fully funded if the work has been authorized by management and the customer to proceed. The Company evaluates unfunded amounts as variable consideration in estimating the transaction price. We include the estimated variable consideration in our transaction price to the extent that it is probable that a significant reversal of revenue will not occur upon the ultimate settlement of the variable fee provision. In the limited number of situations where our contracts with customers contain more than one performance obligation, the Company allocates the transaction price of a contract between the performance obligations in the proportion to their respective stand-alone selling prices. The Company generally estimates the stand-alone selling price of performance obligations based on an expected cost-plus margin approach as allowed under Topic 606. Our U.S. government contracts generally contain FAR provisions that enable the customer to terminate a contract for default or for the convenience of the U.S. government. The Company recognizes revenue for each performance obligation identified within our customer contracts when, or as, the performance obligation is satisfied by transferring the promised goods or services. Revenue may either be recognized over time or at a point in time. The Company generally recognizes revenue over time as our contracts typically involve a continuous transfer of control to the customer. A continuous transfer of control under contracts with the U.S. government and its agencies is evidenced by clauses which require the Company to be paid for costs incurred plus a reasonable margin in the event that the customer unilaterally terminates the contract for convenience. For contracts where the Company recognizes revenue over time, a contract cost-based input method is generally used to measure progress towards satisfaction of the underlying performance obligation(s). Contract costs include direct costs such as materials, labor and subcontract costs, as well as indirect costs identifiable with, or allocable to, a specific contract that are expensed as incurred. The Company does not incur material incremental costs to acquire or fulfill contracts. Under a contract cost-based input method, revenue is recognized based on the proportion of contract costs incurred to the total estimated costs expected to be incurred upon completion of the underlying performance obligation. The Company generally includes both funded and unfunded portions of customer contracts in this estimation process. For interim financial reporting periods, contract revenue attributable to indirect costs is recognized based upon agreed-upon annual forward-pricing rates established with the U.S. government at the start of each fiscal year. Forward pricing rates are estimated and agreed upon between the Company and the U.S. government and represent indirect contract costs required to execute and administer contract obligations. The impact of any agreed-upon changes, or changes in the estimated annual forward-pricing rates, are recorded in the interim financial reporting period when such changes are identified. These changes relate to the interim financial reporting period differences between the actual indirect costs incurred and allocated to customer contracts compared to the estimated amounts allocated to contracts using the estimated annual forward-pricing rates established with the U.S. government. On certain contracts, principally time-and-materials and cost-reimbursable-plus-fee contracts, revenue is recognized using the right-to-invoice practical expedient as the Company is contractually able to invoice the customer based on the control transferred. However, we did not elect to use the practical expedient which would allow the Company to exclude contracts recognized using the right-to-invoice practical expedient from the remaining performance obligations disclosed below. Additionally, for stand-ready performance obligations to provide services under fixed-price contracts, revenue is recognized over time using a straight-line measure of progress as the control of the services is provided to the customer ratably over the term of the contract. If a contract does not meet the criteria for recognition of revenue over time, we recognize revenue at the point in time when control of the good or service is transferred to the customer. Determining a measure of progress towards the satisfaction of performance obligations requires management to make judgments that may affect the timing of revenue recognition. Many of our contracts recognize revenue under a contract cost-based input method and require an Estimate-at-Completion (EAC) process, which management uses to review and monitor the progress towards the completion of our performance obligations. Under this process, management considers various inputs and assumptions related to the EAC, including, but not limited to, progress towards completion, labor costs and productivity, material and subcontractor costs, and identified risks. Estimating the total cost at completion of performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized in the period when such changes are made on a cumulative catch-up basis. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For fiscal 2022, 2021 and 2020, the aggregate impact of adjustments in contract estimates was not material. Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations do not include negotiated but unexercised options or the unfunded value of expired contracts. Cash and Cash Equivalents Cash and cash equivalents include operating cash on hand and highly liquid investments having a weighted average maturity of 60 days or less and a weighted average life of 120 days or less. The Company’s cash equivalents consist primarily of government money market funds and money market deposit accounts. The Company maintains its cash and cash equivalents in bank accounts that, at times, exceed the federally insured FDIC limits. The Company has not experienced any losses in such accounts. Valuation of Accounts Receivable The Company maintains allowances for doubtful accounts against certain accounts receivables based upon the latest information regarding whether specific charges are recoverable or invoices are ultimately collectible. Assessing the recoverability of charges and collectability of customer receivables requires management judgment. The Company determines its allowance for doubtful accounts by specifically analyzing individual accounts receivable, historical bad debts, customer credit-worthiness, current economic conditions, accounts receivable aging trends for billed receivables, availability of funding, compliance with contractual terms and conditions, client satisfaction with work performed, and other factors impacting accounts receivables. Valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate recoverability and collectability of accounts receivable becomes available. Upon determination that a receivable is uncollectible, the receivable balance and any associated reserve are written off. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. The Company’s cash equivalents are generally invested in U.S. government money market funds and money market deposit accounts. The Company believes that credit risk for accounts receivable is limited as the receivables are primarily with the U.S. government. Property and Equipment Property and equipment are recorded at cost, and the balances are presented net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Furniture and equipment is depreciated over five Business Combinations The accounting for the Company’s business combinations consists of allocating the purchase price to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. The Company has up to one year from the acquisition date to use information as of each acquisition date to adjust the fair value of the acquired assets and liabilities which may result in material changes to their recorded values with an offsetting adjustment to goodwill. Intangible Assets Intangible assets primarily consist of programs and contracts assets, channel relationships, the Company's trade name, customer relationships, software and other amortizable intangible assets. The Company capitalizes the following costs associated with developing internal-use computer software pertaining to upgrades in our business and financial systems: (i) external direct costs of materials and services consumed in developing or obtaining internal-use computer software and (ii) certain payroll and payroll-related costs for Company employees who are directly associated with the development of internal-use software, to the extent of the time spent directly on the project. Programs and contract assets, channel relationships, and other amortizable intangible assets are generally amortized on an accelerated basis over the expected life based on projected future cash flows of approximately two one Goodwill The Company assesses goodwill for impairment on at least an annual basis on January 1 unless interim indicators of impairment exist. Goodwill is considered to be impaired when the net book value of a reporting unit exceeds its estimated fair value. The Company operates as a single operating segment and as a single reporting unit for the purpose of evaluating goodwill. As of January 1, 2022, the Company performed its annual impairment test of goodwill by comparing the fair value of the Company (based on market capitalization) to the carrying value of the Company's net equity, and concluded that the fair value of the reporting unit was significantly greater than the carrying amount. During the fiscal years ended March 31, 2022, 2021, and 2020, the Company did not record any impairment of goodwill. Long-Lived Assets The Company reviews its long-lived assets, including property and equipment, amortizable intangible assets, and right-of-use (ROU) assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for any excess of the carrying amount over the fair value of the asset. During the fiscal years ended March 31, 2022, 2021, and 2020, the Company did not record any impairment charges. Leases At contract inception, the Company determines whether the contract is, or contains, a lease, which exists when the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. Operating lease balances are included in operating lease right-of-use ("ROU") assets, operating lease liabilities, and operating lease liabilities, net of current portion in our consolidated balance sheet. Cash payments arising from operating leases are classified within operating activities in the consolidated statement of cash flows. As of March 31, 2022, the Company had no finance leases. The Company's leases are generally for facilities and office space and the Company recognizes ROU assets and lease liabilities at the lease commencement date for those arrangements. The initial lease liability is equal to the present value of the future minimum lease payments over the lease term. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepaid lease payments, less any lease incentives. At the lease commencement date, the Company estimates its collateralized incremental borrowing rate based on publicly available yields adjusted for Company-specific considerations and the Company's varying lease terms in determining the present value of future payments. Certain of the Company’s leases contain options to renew or to terminate the lease which are included in the determination of the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. The Company's leases may also include variable lease payments, such as an escalation clause based on consumer price index rates, maintenance costs, and utilities. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date, whereas variable lease-related payments that do not depend on an index or rate are recorded as lease expense in the period incurred. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. As permitted under Topic 842, the Company elected not to recognize ROU assets and lease liabilities for leases with an initial term of 12 months or less; lease expense from these leases is recognized on a straight-line basis over the lease term. As further permitted under Topic 842, for all material classes of leased assets, the Company elected to not separate lease components from non-lease components, and instead account for both components as a single lease component. As of March 31, 2022, the Company did not have any lease agreements with residual value guarantees or material restrictions or covenants. Income Taxes The Company provides for income taxes as a “C” corporation on income earned from operations. The Company is subject to federal, state, and foreign taxation in various jurisdictions. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are computed based on the difference between the consolidated financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates and laws for the years in which these items are expected to reverse. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to an appropriate level in that period. In determining the need for a valuation allowance, management considers all positive and negative evidence, including historical earnings, projected future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryback periods, and prudent, feasible tax-planning strategies. The Company periodically assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the Internal Revenue Service (“IRS”) or other taxing authorities. The Company reserves for these uncertain tax positions related to unrecognized income tax benefits where it is not more likely than not that the Company’s tax position will be sustained on examination and settlement with the various taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. As uncertain tax positions in periods open to examination are closed out, or as new information becomes available, the resulting change is reflected in the recorded liability and income tax expense. Penalties and interest recognized related to the reserves for uncertain tax positions are recorded as a component of income tax expense. Stock-Based Compensation Stock-based compensation to employees is recognized in the consolidated statements of operations based on the grant date fair values with the expense for time vested awards recognized on an accelerated basis over the vesting perio d. The Company estimates forfeitures anticipated to occur during the vesting period for the purposes of recognizing costs associated with stock-based compensation. The expense for performance awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria and is recognized straight line over the vesting pe riod. The Company uses the Black-Scholes option-pricing model to determine the fair value of its option awards at the time of grant. Defined Benefit Plan, Other Post-Retirement Benefits and Long-term Disability Plan The Company recognizes the underfunded status of defined benefit plans and other post-retirement benefits on the consolidated balance sheets within other long-term liabilities. Gains and losses, and prior service costs and credits that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, and will be amortized as a component of net periodic cost in future periods. The measurement date, the date at which the benefit obligations are measured, is the Company’s fiscal year-end. The Company also offers medical and dental benefits to inactive employees (and their eligible dependents) on long-term disability. The Company accrues the costs of the benefits at the date the inactive employee becomes disability eligible and elects to participate in the benefit. The accrued cost for such benefits is calculated using an actuarial estimate of the present value of all future benefit payments for obligations at the end of the fiscal year. Self-Funded Medical Plans The Company maintains self-funded medical insurance. Self-funded plans include Consumer Driven Health Plans with a Health Savings Account option and traditional choice plans. Further, self-funded plans also include prescription drug and dental benefits. The Company records an incurred but unreported claim liability in the accrued compensation and benefits line of the consolidated balance sheets for self-funded plans based on an actuarial valuation. The estimate of the incurred but unreported claim liability was provided by a third-party valuation firm, primarily based on claims and participant data for the medical, dental, and pharmacy related costs. Recently Adopted Accounting Standards In November 2020, the SEC issued Release No. 33-10890, Amendments to Management's Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information , to simplify, modernize and enhance certain financial disclosure requirements in Regulation S-K. The Company updated its disclosures throughout this Annual Report on Form 10-K to comply with these amendments. The Company’s adoption only impacted the Company's disclosures and did not impact the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms, and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for annual periods beginning after December 15, 2022 on a prospective basis. Early adoption is permitted. The Company early adopted the requirements of ASU 2021-08 to apply the amendments prospectively to all business combinations that occurred on or after April 1, 2022. Recent Accounting Pronouncements Not Yet Adopted |
REVENUE
REVENUE | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company's revenues from contracts with customers (clients) are derived from offerings that include management and technology consulting services, analytics, digital solutions, engineering, mission operations, and cyber services, substantially with the U.S. government and its agencies, and to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international commercial clients. The Company performs under various types of contracts, which include cost-reimbursable-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by contract type, customer, as well as whether the Company acts as prime contractor or sub-contractor, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories. Revenue by Contract Type: We generate revenue under the following three basic types of contracts: • Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee. • Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates. • Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss. The table below presents the total revenue for each type of contract: Fiscal Year Ended March 31, 2022 2021 2020 Cost-reimbursable $ 4,514,262 54% $ 4,419,533 56% $ 4,211,592 57% Time-and-materials 2,017,094 24% 1,962,999 25% 1,737,414 23% Fixed-price 1,832,344 22% 1,476,406 19% 1,514,835 20% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% Revenue by Customer Type: Fiscal Year Ended March 31, 2022 2021 2020 U.S. government (1) : Defense Clients $ 3,955,473 47% $ 3,920,503 49% $ 3,596,081 47% Intelligence Clients 1,573,037 19% 1,549,417 20% 1,580,925 22% Civil Clients 2,618,914 31% 2,183,184 28% 2,020,320 27% Total U.S. government 8,147,424 97% 7,653,104 97% 7,197,326 96% Global Commercial Clients 216,276 3% 205,834 3% 266,515 4% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% (1) Certain contracts were reassigned between the various verticals of our U.S. government business shown in the table above to better align our operations to the customers we serve within each market. Prior year revenue by customer type has been recast to reflect the changes. Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Fiscal Year Ended March 31, 2022 2021 2020 Prime Contractor $ 7,864,273 94% $ 7,311,313 93% $ 6,884,763 92% Sub-contractor 499,427 6% 547,625 7% 579,078 8% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% Performance Obligations Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations exclude negotiated but unexercised options, the unfunded value of expired contracts, and certain variable consideration which the Company does not expect to recognize as revenue. As of March 31, 2022 and 2021, the Company had $7.4 billion and $6.7 billion of remaining performance obligations, respectively. We expect to recognize approximately 70% of the remaining performance obligations as of March 31, 2022 as revenue over the next 12 months, and approximately 85% over the next 24 months. The remainder is expected to be recognized thereafter. Contract Balances As discussed in Note 2, the Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-materials contracts are typically billed to the customer at periodic intervals (e.g. monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections result in net contract assets or liabilities being recognized at the end of each reporting period. Contract assets primarily consist of unbilled receivables typically resulting from revenue recognized exceeding the amount billed to the customer and right to payment is not just subject to the passage of time. Unbilled amounts represent revenues for which billings have not yet been presented to customers. These amounts are generally billed and collected within one year subject to various conditions including, without limitation, appropriated and available funding. Long-term unbilled receivables not anticipated to be billed and collected within one year, which are primarily related to retainage, holdbacks, and long-term rate settlements to be billed at contract closeout, are included in other long-term assets in the accompanying condensed consolidated balance sheets. Contract liabilities primarily consist of advance payments, billings in excess of costs incurred and deferred revenue. Contract assets and liabilities are reported on a net contract basis at the end of each reporting period. The Company maintains an allowance for credit losses to provide for an estimate of uncollectible receivables. Benefit for credit losses recognized were $(1.5) million, $(2.6) million, and $(6.4) million for fiscal 2022, 2021, and 2020, respectively. The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s condensed consolidated balance sheets: March 31, 2022 2021 Current assets: Accounts receivable–billed $ 465,322 $ 375,383 Accounts receivable–unbilled (contract assets) 1,157,667 1,037,968 Allowance for credit losses — (1,457) Accounts receivable, net 1,622,989 1,411,894 Other long-term assets: Accounts receivable–unbilled (contract assets) 64,339 63,869 Total accounts receivable, net $ 1,687,328 $ 1,475,763 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 26,747 $ 15,906 Changes in contract assets and contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. For fiscal 2022, 2021 and 2020, we recognized revenue of $14.9 million, $24.5 million and $18.9 million, respectively, related to our contract liabilities on April 1, 2021, 2020 and 2019, respectively. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company computes basic and diluted earnings per share amounts based on net income for the periods presented. The Company uses the weighted average number of shares of common stock outstanding during the period to calculate basic earnings per share, or EPS. Diluted EPS adjusts the weighted average number of shares outstanding to include the dilutive effect of outstanding common stock options and other stock-based awards. The Company currently has outstanding shares of Class A Common Stock. Holders of unvested Class A Restricted Common Stock are entitled to participate in non-forfeitable dividends or other distributions. These unvested restricted shares participated in the Company's dividends declared and paid in each quarter of fiscal 2022, 2021, and 2020. As such, EPS is calculated using the two-class method whereby earnings are reduced by distributed earnings as well as any available undistributed earnings allocable to holders of these unvested restricted shares. A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows: Fiscal Year Ended 2022 2021 2020 Earnings for basic computations (1) $ 463,626 $ 605,437 $ 481,085 Weighted-average of common stock shares outstanding for basic computations 134,134,034 137,722,589 140,059,494 Earnings for diluted computations (1) $ 463,635 $ 605,455 $ 481,092 Dilutive stock options and restricted stock 716,774 980,631 1,178,641 Weighted-average of common stock shares outstanding for diluted computations 134,850,808 138,703,220 141,238,135 Earnings per share of common stock Basic $ 3.46 $ 4.40 $ 3.43 Diluted $ 3.44 $ 4.37 $ 3.41 (1) During fiscal 2022, 2021, and 2020 approximately 0.9 million, 0.8 million, and 0.4 million shares of participating securities were paid dividends totaling $1.4 million, $1.0 million, and $0.7 million, respectively. There were undistributed earnings of $1.7 million, $2.5 million, and $0.9 million allocated to the participating class of securities in both basic and diluted earnings per share of common stock for fiscal 2022, 2021, and 2020, respectively. The allocated undistributed earnings and the dividends paid comprise the difference between net income presented on the consolidated statements of operations and earnings for basic and diluted computations for fiscal 2022, 2021, and 2020. The impact of any anti-dilutive options included in the calculation of EPS was not material. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Tracepoint Holdings, LLC On September 10, 2021, the Company acquired the remaining 60% equity interest in Tracepoint Holdings, LLC ("Tracepoint"), an industry-leading digital forensics and incident response company serving public and private sector clients, for cash consideration of approximately $120.3 million, net of adjustments (the "Tracepoint Transaction"). As a result of the transaction, Tracepoint and Tracepoint, LLC became wholly owned subsidiaries of Booz Allen Hamilton Inc. The acquisition complements the Company’s existing cybersecurity portfolio and expands its position in the private sector cyber market. Prior to the closing of the Tracepoint Transaction, the Company held a 40% interest in Tracepoint, which was accounted for as an equity method investment. The equity method investment associated with Tracepoint was remeasured at fair value on the closing date of the Tracepoint Transaction, resulting in a gain of $5.7 million. This gain is presented as a component of Other Income on the Consolidated Statement of Operations for fiscal 2022. The fair value of the previously held equity method investment was determined based upon valuations of the Tracepoint business and future business outlook using projected future cash flows. As a result of the Tracepoint transaction, the Company recognized $90.5 million of intangible assets which primarily consists of channel relationships. Channel relationships were valued using the excess earnings method discounted cash flow approach, incorporating Level 3 inputs as described under the fair value hierarchy of ASC No. 820, Fair Value Measurement (Topic 820). These unobservable inputs reflect the Company's own judgment about which assumptions market participants would use in pricing an asset on a non-recurring basis. The intangible asset is expected to be amortized over the estimated useful life of 10 years. The goodwill of $94.3 million is largely attributable to Tracepoint's specialized workfo rce. During the fourth quarter of fiscal 2022, the Company finalized Tracepoint's post-closing working capital. Liberty IT Solutions, LLC On June 11, 2021, the Company acquired Liberty IT Solutions, LLC ("Liberty") for cash consideration of approximately $669.1 million, net of adjustments related to working capital, and transaction costs incurred as part of the acquisition, including compensation expenses paid by the Company that were associated with employee retention. As a result of the transaction, Liberty became a wholly owned subsidiary of Booz Allen Hamilton Inc. Liberty is a leading digital partner driving transformation across the federal IT ecosystem. The acquisition complements the Company’s digital transformation portfolio resulting in a deeper range of advanced technology solutions. The Company recognized $309.0 million of intangible assets which consist of programs and contracts assets, and were valued using the excess earnings method discounted cash flow approach, incorporating Level 3 inputs as described under the fair value hierarchy of Topic 820. These unobservable inputs reflect the Company's own judgment about which assumptions market participants would use in pricing an asset on a non-recurring basis. The intangible assets are expected to be amortized over the estimated useful life of 12 years. The goodwill of $346.5 million is primarily attributable to Liberty's specialized workforce and the expected synergies between the Company and Liberty. During the third quarter of fiscal 2022, the Company finalized Liberty's post-closing working capital. Purchase Price Allocation The following table summarizes the cumulative consideration paid and the allocation of the purchase price paid for Tracepoint and Liberty: Cash consideration (gross of cash acquired and including net adjustments) $ 789,429 Fair value of non-controlling interest 80,063 Total purchase consideration 869,492 Purchase price allocation: Cash 9,096 Current assets 57,519 Operating lease right-of-use asset 2,532 Other long-term assets 2,825 Intangible assets 399,500 Current liabilities (40,217) Operating lease liabilities-current (1,017) Operating lease liabilities-long term (1,516) Total fair value of identifiable net assets acquired $ 428,722 Goodwill $ 440,770 The acquisitions of Liberty and Tracepoint were accounted for under the acquisition method of accounting, which requires the total acquisition consideration to be allocated to the assets acquired and liabilities assumed based on an estimate of the acquisition date fair value, with the difference reflected in goodwill. As of March 31, 2022, the Company had completed the determination of fair values of the acquired assets and liabilities assumed. Pro forma results of operations for these acquisitions in the aggregate are not presented because these acquisitions are not material to the Company's consolidated results of operations. EverWatch In the fourth quarter of fiscal 2022, the Company announced that it had entered into a definitive agreement to acquire EverWatch Corp. ("EverWatch"), a leading provider of advanced solutions to the defense and intelligence communities for approximately $440.0 million, subject to customary adjustments. The Company expects to fund the acquisition with cash on hand. The transaction is expected to close in fiscal 2023. Divestitures In April 2022, the Company entered into an agreement with Oliver Wyman, a global management consulting firm and a business of Marsh McLennan, to divest the Company's management consulting business serving the Middle East and North Africa (MENA) region, which is substantially comprised of the contracts associated with the MENA business and the team of management consultants that provide services under those contracts. The Company concluded that the assets and liabilities associated with the MENA business met the criteria to be reported as held for sale on the consolidated balance sheet as of March 31, 2022. As of March 31, 2022, $23.6 million of accounts receivable, $0.7 million of other assets, $1.7 million of deferred revenue, and $0.2 million of accounts payable were included in other current assets and other current liabilities on the consolidated balance sheet. The transaction is expected to close in fiscal 2023, subject to customary closing conditions, including regulatory approvals. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill was $2,021.9 million and $1,581.2 million as of March 31, 2022 and March 31, 2021, respectively. The increase in the carrying amount of goodwill was attributable to the Company's acquisitions of Liberty and Tracepoint, and the majority of goodwill is expected to be deductible for tax purposes. Approximately $10.0 million of goodwill was allocated to the assets held for sale related to the Company's divestiture of its MENA business noted above.The Company performed an annual impairment test of the goodwill as of January 1, 2022 and 2021, and did not identify any impairment. Intangible Assets Intangible assets consisted of the following: March 31, 2022 March 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Programs and contract assets, channel relationships, and other amortizable intangible assets (1) $ 483,294 $ 101,584 $ 381,710 $ 82,400 $ 50,503 $ 31,897 Software 119,398 44,626 74,772 114,972 29,941 85,031 Total amortizable intangible assets $ 602,692 $ 146,210 $ 456,482 $ 197,372 $ 80,444 $ 116,928 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 792,892 $ 146,210 $ 646,682 $ 387,572 $ 80,444 $ 307,128 (1) The increase in the carrying amount of programs and contracts, channel relationships, and other amortizable intangible assets was attributable to the Company's acquisitions of Liberty and Tracepoint. Programs and contract assets, channel relationships, and other amortizable intangible assets are generally amortized on an accelerated basis over periods ranging from 2 years to 12 years, and those related to software are generally amortized on a straight line basis over periods ranging from 1 years to 5 years. The Company performed an annual impairment test of the trade name as of January 1, 2022 and 2021, and did not identify any impairment. Amortization expense for fiscal 2022, 2021, and 2020 was $76.2 million, $19.3 million, and $22.3 million, respectively. The following table summarizes the estimated annual amortization expense for future periods, which does not reflect amortization expense for certain intangible assets that are not yet placed in service: For the Fiscal Year Ended March 31, 2023 $ 85,776 2024 71,149 2025 60,811 2026 53,552 2027 43,585 Thereafter 141,609 Total estimated amortization expense $ 456,482 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET The components of property and equipment, net were as follows: March 31, 2022 2021 Furniture and equipment $ 117,250 $ 117,430 Computer equipment 104,296 97,571 Leasehold improvements 235,342 225,132 Total 456,888 440,133 Less: Accumulated depreciation and amortization (254,659) (235,491) Property and equipment, net $ 202,229 $ 204,642 Depreciation and amortization expense relating to property and equipment for fiscal 2022, 2021, and 2020 was $69.5 million, $65.0 million, and $58.8 million, respectively. During fiscal 2022 and 2021, the Company reduced the gross cost and accumulated depreciation and amortization by $55.0 million |
ACCOUNTS PAYABLE AND OTHER ACCR
ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES | ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES Accounts payable and other accrued expenses consisted of the following: March 31, 2022 2021 Vendor payables $ 539,524 $ 371,744 Accrued expenses 363,092 295,227 Total accounts payable and other accrued expenses $ 902,616 $ 666,971 Accrued expenses consisted primarily of the Company’s provision for claimed indirect costs, which was approximately $290.4 million and $263.2 million as of March 31, 2022 and 2021, respectively. Refer to Note 20 for further discussion of this provision. |
ACCRUED COMPENSATION AND BENEFI
ACCRUED COMPENSATION AND BENEFITS | 12 Months Ended |
Mar. 31, 2022 | |
Compensation Related Costs [Abstract] | |
ACCRUED COMPENSATION AND BENEFITS | ACCRUED COMPENSATION AND BENEFITS Accrued compensation and benefits consisted of the following: March 31, 2022 2021 Bonus $ 96,040 $ 130,565 Retirement 48,169 44,474 Vacation 206,199 202,100 Other 88,226 48,476 Total accrued compensation and benefits $ 438,634 $ 425,615 |
DEBT
DEBT | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: March 31, 2022 March 31, 2021 Interest Outstanding Interest Outstanding Term Loan A 1.71 % $ 1,241,398 1.61 % $ 1,289,764 Term Loan B 2.21 % 380,321 1.86 % 384,212 Revolver — % — — % — Senior Notes due 2028 3.88 % 700,000 3.88 % 700,000 Senior Notes due 2029 4.00 % 500,000 — % — Less: Unamortized debt issuance costs and discount on debt (21,647) (17,380) Total 2,800,072 2,356,596 Less: Current portion of long-term debt (68,379) (77,865) Long-term debt, net of current portion $ 2,731,693 $ 2,278,731 Credit Agreement On June 24, 2021, Booz Allen Hamilton Inc. ("Booz Allen Hamilton"), Booz Allen Hamilton Investor Corporation ("Investor"), and certain wholly-owned subsidiaries of Booz Allen Hamilton, entered into the eighth amendment (the "Eighth Amendment") to the Credit Agreement dated as of July 31, 2012, as amended (the "Existing Credit Agreement" and, as amended, the "Credit Agreement"), with certain institutional lenders and Bank of America, N.A., as Administrative Agent and Collateral Agent. The Eighth Amendment added an additional tier in the pricing grid and extended the maturity applicable to both the Term Loan A ("Term Loan A") and revolving credit facility (the "Revolving Credit Facility") to June 24, 2026, increased the aggregate principal amount of the Revolving Credit Facility and the letter of credit sublimit thereunder, and made certain other amendments to the financial covenants and other terms under the Existing Credit Agreement. The interest rate and maturity date applicable to Term Loan B ("Term Loan B" and, together with Term Loan A, the "Term Loans") remained unchanged. Prior to the Eighth Amendment, approximately $1,289.8 million was outstanding under Term Loan A (the "Existing Tranche A Term Loans"). Pursuant to the Eighth Amendment, certain lenders under the Existing Credit Agreement converted their Existing Tranche A Term Loans into a new tranche of tranche A term loans (the “New Refinancing Tranche A Term Loans”) in an aggregate amount, along with the New Refinancing Tranche A Term Loans advanced by certain new lenders, of approximately $1,289.8 million. The proceeds from the new lenders were used to prepay in full all of the Existing Tranche A Term Loans that were not converted into the New Refinancing Tranche A Term Loans. Voluntary prepayments of the New Refinancing Tranche A Term Loans are permitted at any time, in minimum principal amounts, without premium or penalty. The other terms of the New Refinancing Tranche A Term Loans are generally the same as the Existing Tranche A Term Loans prior to the Eighth Amendment. Prior to the Eighth Amendment, approximately $500.0 million of revolving commitments (the “Existing Revolving Commitments”) were available under the Existing Credit Agreement, with a sublimit for letters of credit of $100.0 million. Pursuant to the Eighth Amendment, certain lenders under the Existing Credit Agreement converted their Existing Revolving Commitments into a new tranche of revolving commitments (the “New Revolving Commitments” and the revolving credit loans made thereunder, the “New Revolving Loans”) in an aggregate amount, along with the New Revolving Commitments of certain new lenders, of $1,000 million, with a sublimit for letters of credit of $200.0 million. As of March 31, 2022, the Credit Agreement provided Booz Allen Hamilton with a $1,241.4 million Term Loan A, a $380.3 million Term Loan B and a $1,000 million revolving credit facility (the “Revolving Credit Facility”) with a sub-limit for letters of credit of $200.0 million (collectively, the "Secured Credit Facility"). As of March 31, 2022, the maturity date of Term Loan B was November 26, 2026. Booz Allen Hamilton’s obligations and the guarantors’ guarantees under the Credit Agreement (the "Guarantee") are secured by a first priority lien on substantially all of the assets (including capital stock of subsidiaries) of Booz Allen Hamilton, Investor, and the subsidiary guarantors, subject to certain exceptions set forth in the Credit Agreement and related documentation. Subject to specified conditions, without the consent of the then-existing lenders (but subject to the receipt of commitments), the Term Loans or the Revolving Credit Facility may be expanded (or a new term loan facility or revolving credit facility added to the existing facilities) by up to (i) the greater of (x) $909 million and (y) 100% of consolidated EBITDA of Booz Allen Hamilton, as of the end of the most recently ended four quarter period for which financial statements have been delivered pursuant to the Credit Agreement plus (ii) the aggregate principal amount under which pro forma consolidated net senior secured leverage remains less than or equal to 3.50:1.00. At Booz Allen Hamilton’s option, borrowings under the Secured Credit Facility bear interest based either at LIBOR (adjusted for maximum reserves, and subject to a floor of zero) for the applicable interest period or a base rate (equal to the highest of (x) the administrative agent’s prime corporate rate, (y) the overnight federal funds rate plus 0.50% and (z) three-month LIBOR (adjusted for maximum reserves, and subject to a floor of zero) plus 1.00%), in each case plus an applicable margin, payable at the end of the applicable interest period and in any event at least quarterly. The applicable margin for Term Loan A and borrowings under the Revolving Credit Facility ranges from 1.125% to 2.00% for LIBOR loans and 0.125% to 1.00% for base rate loans, in each case based on Booz Allen Hamilton’s consolidated total net leverage ratio. Unused commitments under the Revolving Credit Facility are subject to a quarterly fee ranging from 0.175% to 0.35% based on Booz Allen Hamilton’s consolidated total net leverage ratio. The applicable margin for Term Loan B is 1.75% for LIBOR loans and 0.75% for base rate loans. The Credit Agreement requires quarterly principal payments of 1.25% of the stated principal amount of Term Loan A until maturity, and quarterly principal payments of 0.25% of the stated principal amount of Term Loan B until maturity. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include limitations on the following, in each case subject to certain exceptions: (i) indebtedness and liens; (ii) mergers, consolidations or amalgamations, liquidations, wind-ups or dissolutions, and disposition of all or substantially all assets; (iii) dispositions of property; (iv) restricted payments; (v) investments; (vi) transactions with affiliates; (vii) change in fiscal periods; (viii) negative pledges; (ix) restrictive agreements; (x) line of business; and (xi) speculative hedging. The events of default include the following, in each case subject to certain exceptions: (a) failure to make required payments under the Secured Credit Facility; (b) material breaches of representations or warranties under the Secured Credit Facility; (c) failure to observe covenants or agreements under the Secured Credit Facility; (d) failure to pay or default under certain other material indebtedness; (e) bankruptcy or insolvency; (f) certain Employee Retirement Income Security Act, or ERISA events; (g) certain material judgments; (h) actual or asserted invalidity of the Guarantee and collateral agreements or the other security documents or failure of the guarantees or perfected liens thereunder; and (i) a change of control. In addition, Booz Allen Hamilton is required to meet certain financial covenants at each quarter end, namely Consolidated Net Total Leverage and Consolidated Net Interest Coverage Ratios. As of March 31, 2022 and 2021, Booz Allen Hamilton was in compliance with all financial covenants associated with its debt and debt-like instruments. During fiscal 2022, interest payments of $19.6 million and $7.2 million were made for Term Loan A and Term Loan B, respectively. During fiscal 2021, interest payments of $23.6 million and $7.8 million were made for Term Loan A and Term Loan B, respectively. Borrowings under the Term Loans, and if used, the Revolving Credit Facility, incur interest at a variable rate. In accordance with Booz Allen Hamilton's risk management strategy, between April 6, 2017 and April 4, 2019, Booz Allen Hamilton executed a series of interest rate swaps. As of March 31, 2022, Booz Allen Hamilton had interest rate swaps with an aggregate notional amount of $700 million. These instruments hedge the variability of cash outflows for interest payments on the Term Loans and the Revolving Credit Facility. The Company's objectives in using cash flow hedges are to reduce volatility due to interest rate movements and to add stability to interest expense (see Note 11 in our consolidated financial statements). Senior Notes On June 17, 2021, Booz Allen Hamilton issued $500.0 million aggregate principal amount of its 4.000% Senior Notes due July 1, 2029 (the “Senior Notes due 2029”) under an Indenture, dated as of June 17, 2021, among Booz Allen Hamilton, certain subsidiaries of Booz Allen Hamilton, as guarantors (the “2029 Subsidiary Guarantors”), and Wilmington Trust, National Association (in such capacity, the “2029 Trustee”), as supplemented by the First Supplemental Indenture, dated as of June 17, 2021, among Booz Allen Hamilton, the 2029 Subsidiary Guarantors and the 2029 Trustee. The Senior Notes due 2029 and the related guarantees are Booz Allen Hamilton’s and each 2029 Subsidiary Guarantors’ senior unsecured obligations and rank equally in right of payment with all of Booz Allen Hamilton’s and the 2029 Subsidiary Guarantors’ existing and future senior indebtedness and rank senior in right of payment to any of Booz Allen Hamilton’s and the 2029 Subsidiary Guarantors’ future subordinated indebtedness. The net proceeds from the sale of the Senior Notes due 2029 were used to fund the acquisition of Liberty and to pay related fees and expenses. Booz Allen Hamilton may redeem some or all of the Senior Notes due 2029 at any time prior to July 1, 2024, at a price equal to 100.00% of the principal amount of the Senior Notes due 2029 redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date, plus an applicable “make-whole premium.” Booz Allen Hamilton may redeem the Senior Notes due 2029 at its option, in whole at any time or in part from time to time, upon certain required notice, at any time (i) on and after July 1, 2024, at a price equal to 102.00% of the principal amount of the Senior Notes due 2029 redeemed, (ii) on or after July 1, 2025, at a price equal to 101.00% of the principal amount of the Senior Notes due 2029 redeemed, and (iii) on July 1, 2026 and thereafter, at a price equal to 100.00% of the principal amount of the Senior Notes due 2029 redeemed, in each case, plus accrued and unpaid interest, if any, to (but not including) the applicable redemption date. In addition, at any time on or prior to July 1, 2024, Booz Allen Hamilton may redeem up to 40.00% of the Senior Notes due 2029 with an amount equal to the net cash proceeds of certain equity offerings at a redemption price equal to 104.00%, plus accrued and unpaid interest, if any, to (but not including) the redemption date, provided, however, that at least 50.00% of the original aggregate principal amount of the Senior Notes due 2029 must remain outstanding after each such redemption; and provided, further, that such redemption shall occur within 180 days after the date on which any such equity offering is consummated. Interest is payable on the Senior Notes due 2029 semi-annually in cash in arrears on July 1 and January 1 of each year, beginning on January 1, 2022. In connection with the issuance of the Senior Notes due 2029, the Company recognized $6.5 million of issuance costs, which were recorded as an offset against the carrying value of debt and will be amortized to interest expense over the term of the Senior Notes due 2029. On August 24, 2020, Booz Allen Hamilton issued $700.0 million aggregate principal amount of its 3.875% Senior Notes due 2028 (the “Senior Notes due 2028”, and, together with the Senior Notes due 2029, the "Senior Notes") under an Indenture, dated as of August 24, 2020, among Booz Allen Hamilton, certain subsidiaries of Booz Allen Hamilton, as guarantors (the “2028 Subsidiary Guarantors”), and Wilmington Trust, National Association as trustee (in such capacity, the “2028 Trustee”), as supplemented by the First Supplemental Indenture, dated as of August 24, 2020, among Booz Allen Hamilton, the 2028 Subsidiary Guarantors and the 2028 Trustee. Each of Booz Allen Hamilton's existing and future restricted subsidiaries that guarantee its obligations under the Secured Credit Facility or certain other indebtedness guarantee the Senior Notes due 2028 on a senior unsecured basis. The Senior Notes due 2028 and the guarantees are Booz Allen Hamilton’s and each 2028 Subsidiary Guarantors’ senior unsecured obligations and rank equally in right of payment with all of Booz Allen Hamilton’s and the 2028 Subsidiary Guarantors’ existing and future senior indebtedness and rank senior in right of payment to any of Booz Allen Hamilton’s and the Subsidiary Guarantors’ future subordinated indebtedness. Booz Allen Hamilton may redeem some or all of the Senior Notes due 2028 at any time prior to September 1, 2023, at a price equal to 100.00% of the principal amount of the Senior Notes due 2028 redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date, plus an applicable “make-whole premium.” Booz Allen Hamilton may redeem the Senior Notes due 2028 at its option, in whole at any time or in part from time to time, upon certain required notice, at any time (i) on and after September 1, 2023, at a price equal to 101.94% of the principal amount of the Senior Notes due 2028, (ii) on or after September 1, 2024, at a price equal to 100.97% of the principal amount of the Senior Notes due 2028, and (iii) on September 1, 2025 and thereafter, at a price equal to 100.00% of the principal amount of the Senior Notes due 2028, in each case, plus accrued and unpaid interest, if any, to (but not including) the applicable redemption date. In addition, at any time on or prior to September 1, 2023, Booz Allen Hamilton may redeem up to 40.00% of the original aggregate principal amount of the Senior Notes due 2028 with the net cash proceeds of certain equity offerings at a redemption price equal to 103.88% of the principal amount of the Senior Notes due 2028, plus accrued and unpaid interest, if any, to (but not including) the redemption date, provided that at least 50.00% of the original aggregate principal amount of the Senior Notes due 2028 remains outstanding after each such redemption; and the redemption occurs within 180 days of the closing date of such equity offering. Interest is payable on the Senior Notes due 2028 semi-annually on March 1 and September 1 of each year, beginning on March 1, 2021, and principal is due at maturity on September 1, 2028. In connection with the issuance of the Senior Notes due 2028, the Company recognized $9.2 million of issuance costs, which were recorded as an offset against the carrying value of debt and will be amortized to interest expense over the term of the Senior Notes due 2028. The following table summarizes required future debt principal repayments: Payments Due By March 31, Total 2023 2024 2025 2026 2027 Thereafter Term Loan A $1,241,398 $64,488 $64,488 $64,488 $64,488 $983,446 — Term Loan B 380,321 3,891 3,891 3,891 3,891 364,757 — Senior Notes 2028 700,000 — — — — — 700,000 Senior Notes 2029 500,000 — — — — — 500,000 Interest on indebtedness 446,697 76,677 75,550 74,270 73,067 56,445 90,688 Total $3,268,416 $145,056 $143,929 $142,649 $141,446 $1,404,648 $1,290,688 Interest on debt and debt-like instruments consisted of the following: Fiscal Year Ended March 31, 2022 2021 2020 Term Loan A Interest Expense $ 19,570 $ 23,541 $ 50,080 Term Loan B Interest Expense 7,207 7,787 15,739 Interest on Revolving Credit Facility 25 799 92 Senior Notes Interest Expense 42,902 23,476 17,938 Deferred Payment Obligation Interest (1) — — 5,740 Amortization of Debt Issuance Costs (DIC) and Original Issue Discount (OID) (2) 4,619 4,396 4,688 Interest Swap Expense 17,535 20,558 2,094 Other 494 713 589 Total Interest Expense $ 92,352 $ 81,270 $ 96,960 (1) In connection with Carlyle Group indirectly acquiring all of the issued and outstanding stock of the Company on July 31, 2008, the Company established a Deferred Payment Obligation, payable 8.5 years after the closing date, or until settlement of all outstanding claims, less any settled claims. All remaining potential claims outstanding that were able to be indemnified under the Deferred Payment Obligation related to former officers and stockholders' lawsuits, were all settled as of December 31, 2019 . Interest payments on the Deferred Payment Obligation were made twice a year in January and July. The final payment was made during fiscal 2020. (2) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company's Revolving Credit Facility is recorded as a long-term asset on the consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company utilizes derivative financial instruments to manage interest rate risk related to its variable rate debt. The Company’s objectives in using these interest rate derivatives, which were designated as cash flow hedges, are to manage its exposure to interest rate movements and reduce volatility of interest expense. The aggregate notional amount of all interest rate swap agreements was $700.0 million as of March 31, 2022. The swaps have staggered maturities, ranging from June 30, 2022 to June 30, 2025. These swaps mature within the last tranche of the Company's floating rate debt (November 26, 2026). The floating-to-fixed interest rate swaps involve the exchange of variable interest amounts from a counterparty for the Company making fixed-rate interest payments over the life of the agreements without exchange of the underlying notional amount and effectively converting a portion of the variable rate debt into fixed interest rate debt. Derivative instruments are recorded in the consolidated balance sheet on a gross basis at estimated fair value. As of March 31, 2022, $4.1 million, $4.3 million and $39 thousand were classified as other long term assets, other current liabilities and other long-term liabilities, respectively, on the consolidated balance sheet. As of March 31, 2021, $17.2 million and $21.0 million were classified as other current liabilities, and other long-term liabilities, respectively, on the consolidated balance sheet. For interest rate swaps designated as cash flow hedges, the changes in the fair value of derivatives is recorded in Accumulated Other Comprehensive Income (Loss), net of taxes, and is subsequently reclassified into interest expense in the period that the hedged forecasted interest payments are made on the Company's variable-rate debt. Over the next 12 months, the Company estimates that $4.4 million will be reclassified as an increase to interest expense. Cash flows associated with periodic settlements of interest rate swaps will be classified as operating activities in the consolidated statement of cash flows. The effect of derivative instruments on the accompanying consolidated financial statements is as follows: Fiscal year ended March 31, Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Loss Reclassified from AOCI into Income (1) 2022 2021 2020 2022 2021 2020 Interest rate swaps Interest expense $ 20,352 $ (2,071) $ (55,871) $ (17,535) $ (20,558) $ (2,094) (1) The reclassifications from accumulated other comprehensive gain (loss) to net income was reduced by taxes of $4.6 million, $5.4 million and $0.5 million for fiscal 2022, 2021 and 2020. The Company is subject to counterparty risk in connection with its interest rate swap derivative contracts. Credit risk related to a derivative financial instrument represents the possibility that the counterparty will not fulfill the terms of the contract. The Company mitigates this credit risk by entering into agreements with credit-worthy counterparties and regularly reviews its credit exposure and the creditworthiness of the counterparties. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company's leases are generally for facilities and office space. The Company adopted ASU 2016-02, Leases (Topic 842) on April 1, 2019 using the modified retrospective transition approach, and as a result did not recast comparative prior period information and presented prior period amounts and disclosures under ASC 840, Leases (Topic 840). The Company’s total lease cost is recorded primarily within general and administrative expenses on the consolidated statement of operations and consisted of the following: Fiscal Year Ended 2022 2021 2020 Operating lease cost $ 69,831 $ 68,702 $ 71,067 Short-term lease cost 585 3,780 9,657 Variable lease cost 11,641 12,843 11,657 Total operating lease costs $ 82,057 $ 85,325 $ 92,381 Future minimum operating lease payments for noncancelable operating leases as of March 31, 2022 are as follows: For the Fiscal Year Ending March 31, Operating Lease Payments 2023 $ 64,528 2024 74,462 2025 70,907 2026 52,065 2027 30,400 Thereafter 45,537 Total future lease payments 337,899 Less: imputed interest (38,495) Total lease liabilities $ 299,404 Supplemental cash flow information related to leases was as follows: Fiscal Year Ended 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 76,100 $ 69,320 $ 53,741 Operating lease liabilities arising from obtaining ROU assets (1) 41,206 52,454 26,378 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: March 31, 2022 2021 Weighted average remaining lease term (in years) 5.0 5.5 Weighted average discount rate 4.5 % 4.6 % |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Current U.S. Federal $ 232,844 $ (227,309) $ (2,638) State and local 26,333 39,542 18,410 Foreign 8,486 9,250 15,625 Total current 267,663 (178,517) 31,397 Deferred U.S. Federal (146,581) 245,624 59,856 State and local 11,781 (13,626) 5,578 Foreign 4,603 — — Total deferred (130,197) 231,998 65,434 Total $ 137,466 $ 53,481 $ 96,831 A reconciliation of the provision for income tax to the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for each of the three years ended March 31 is as follows: Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense computed at U.S. federal statutory rate $ 126,981 $ 139,112 $ 121,681 Increases (reductions) resulting from: State and local income taxes, net of federal tax 28,762 17,586 20,031 Foreign income taxes, net of federal tax 9,243 6,679 12,344 Meals and entertainment 343 653 1,761 Re-measurement of current year losses under CARES Act — (76,767) — Excess tax benefits from stock-based compensation (4,227) (8,556) (10,265) Research and development and other federal credits (34,080) (30,313) (90,898) Executive compensation -162(m) 3,614 3,813 2,346 Foreign-Derived Intangible Income (FDII) (9,115) (4,536) (4,915) Changes in uncertain tax positions 16,938 6,793 44,621 Other (993) (983) 125 Income tax expense from operations $ 137,466 $ 53,481 $ 96,831 For the fiscal 2021 tax year, the Company generated a tax loss for U.S. Federal and state tax purposes resulting from the treatment of costs associated with property, plant, and equipment. As a result of a provision in the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), taxpayers are allowed to carry net operating losses generated in fiscal 2019, 2020 and 2021 back to the five prior tax years (fiscal years 2016 - 2020). Accordingly, the Company recorded a long-term income tax receivable in fiscal 2021 which was largely offset by a corresponding deferred tax liability reflected within the property and equipment deferred tax liability in the Company's significant components of deferred income tax assets and liabilities. The corporate tax rate for the Company was 35% during fiscal 2016 and 2017, 31.5% during fiscal 2018, and 21% since fiscal 2019. Carrying the loss back to these years with higher tax rates resulted in an income tax benefit in fiscal 2021 of $76.8 million related to the re-measurement of the loss for the applicable carryback fiscal years. The receivable remained outstanding at the end of fiscal 2022. For state tax purposes, an incremental net operating loss carryforward of $89.6 million that was generated was used in fiscal 2022 and will continue to be utilized in fiscal 2023 to offset state taxes. Including the impact of these state carryforwards, this transaction resulted in an incremental state deferred tax asset of $11.8 million. The Company has both income tax receivables and income tax payable on its consolidated balance sheet as follows: March 31, 2022 2021 Current income tax receivable $ 47,142 $ 175,541 Long term income tax receivable $ 341,738 $ 333,188 Current income tax payable $ 34,324 $ 30,694 The current income tax receivable as of March 31, 2022 represents estimated payments made in fiscal 2022 and prior periods that will be applied to the Company’s future U.S. federal and state tax returns. This amount is classified as prepaid expenses and other current assets on the consolidated balance sheet. The current income tax payable as of March 31, 2022 represents current liabilities associated with the Company’s amended fiscal 2020 U.S. state returns that the Company intends to file in fiscal 2023. This amount is classified as other current liabilities on the consolidated balance sheet. The long-term income tax receivable as of March 31, 2022 represents the carryback claim for the fiscal 2021 net operating loss and the amended U.S. federal return refund claims for research and development tax credits. This amount is classified as other long-term assets on the consolidated balance sheet. The significant components of the Company’s deferred income tax assets and liabilities were as follows: March 31, 2022 2021 Deferred income tax assets: Accrued expenses $ 80,344 $ 78,005 Deferred compensation 56,361 52,191 Stock-based compensation 9,783 5,724 Pension and postretirement benefits 30,797 32,881 Net operating loss carryforwards 44,118 98,471 Extended disability benefits 2,426 2,838 Interest rate swaps 75 9,955 Federal tax credits — 12,582 State tax credits 24,268 27,243 Operating lease liabilities 82,799 86,046 Other — 3,378 Total gross deferred income tax assets 330,971 409,314 Less: Valuation allowance (8,715) (6,165) Total net deferred income tax assets 322,256 403,149 Deferred income tax liabilities: Unbilled receivables (209,753) (245,809) Intangible assets (56,657) (69,519) Debt issuance costs (1,435) (1,488) Property and equipment (198,940) (336,321) Operating lease right-of-use assets (59,401) (62,442) Internally developed software — (20,309) Other (3,345) — Total deferred income tax liabilities (529,531) (735,888) Net deferred income tax liability $ (207,275) $ (332,739) Deferred tax balances arise from temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized. In determining if the Company's deferred tax assets are realizable, management considers all positive and negative evidence, including the history of generating financial reporting earnings, future reversals of existing taxable temporary differences, projected future taxable income, as well as any tax planning strategies. As of March 31, 2022 and 2021, the Company had available federal, state, and foreign net operating loss ("NOL carryforwards") of $44.1 million and $98.5 million, respectively, that may be applied against future taxable income. The federal net operating loss of $1.4 million is primarily attributable to an acquisition and will begin to expire in fiscal 2037. The state net operating loss of $36.6 million is primarily attributable to the fiscal 2021 loss. The foreign net operating loss is primarily attributable to operations in jurisdictions where the Company is expanding its business. The Company recorded a partial valuation allowance against those federal, state and foreign net operating losses it believes will expire prior to utilization. Uncertain Tax Positions The Company maintains reserves for uncertain tax positions related to unrecognized income tax benefits. These reserves involve considerable judgment and estimation and are evaluated by management based on the best information available including changes in tax laws and other information. As of March 31, 2022, 2021, and 2020, the Company has recorded $79.9 million, $62.9 million, and $56.1 million, respectively, of reserves for uncertain tax positions which includes potential tax benefits of $78.5 million, $62.7 million, and $55.2 million, respectively, that, when recognized, impact the effective tax rate. As of March 31, 2022 and 2021, $3.1 million and $11.1 million, respectively, of the reserve is reflected as a reduction to deferred taxes and the remaining balance is recorded as a component of other long-term liabilities in the consolidated balance sheet. A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows: March 31, 2022 2021 2020 Beginning of year $ 62,742 $ 55,221 $ 11,083 Increases in prior year position 2,620 5,018 34,001 Increases in current year position 13,530 12,753 10,970 Decreases in prior year position (373) — (765) Settlements with taxing authorities — — — Lapse of statute of limitations — (10,250) (68) End of year $ 78,519 $ 62,742 $ 55,221 During fiscal 2022, the Company recognized an increase in reserves for uncertain tax positions of approximately $13.5 million related to an increase in research and development tax credits available for fiscal years 2022 and prior years. The Company recognized accrued interest and penalties of $1.7 million, $0.3 million and $0.5 million for fiscal 2022, 2021, and 2020, respectively, related to the reserves for uncertain tax positions in the income tax provision. Included in the total reserve for uncertain tax positions are accrued penalties and interest of approximately $2.9 million, $1.2 million and $0.9 million at March 31, 2022, 2021, and 2020, respectively. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of March 31, 2022, the Company's tax years ended March 31, 2016 and forward are open and subject to examination by the federal tax authorities. The other jurisdictions' currently open or under examination are not considered to be material. The Company is currently contesting tax assessments from the District of Columbia Office of Tax and Revenue ("DC OTR") for fiscal years 2013 through 2015. The assessment relates to $11.7 million of taxes, net of federal tax benefits, as of March 31, 2022. During fiscal 2022, the Company received notification that the District of Columbia Office of Administrative Hearings ruled in favor of the DC OTR. The Company is currently appealing the decision with the District of Columbia Court of Appeals ("DC COA"). In the fourth quarter of fiscal year 2022, the DC COA filed the briefing order, indicating that the Company's brief is due May 9, 2022 and, absent the DC OTR requesting an extension, DC OTR's response brief is due June 8, 2022. The Company filed its brief on May 9, 2022. As a result of the ruling in favor of the DC OTR, the Company made an $8.6 million payment during the second quarter of fiscal 2022 related to these assessments, consisting of $3.7 million of tax related to fiscal 2014 and 2015, as well as $4.9 million of penalties and interest. This payment was made under protest and, given the Company's belief that it will be recovered, the payment has been recorded as a long term income tax-receivable (a component of other long-term assets) on its consolidated balance sheet. There has been no impact to income tax expense during fiscal 2022 related to this payment. The Company has taken similar tax positions with respect to subsequent fiscal years. As of March 31, 2022, the Company does not maintain reserves for any uncertain tax positions related to the contested tax benefits related to 2013 through 2015, nor does it maintain reserves for the similar tax positions taken in the subsequent fiscal years. Management continues to evaluate this position quarterly to determine if a change in estimate is needed. If an adverse final resolution were to occur with respect to uncertain tax positions related to the contested tax benefits or the similar tax positions taken for fiscal years 2013 through 2020, the total potential future tax expense that would arise would be approximately $40.2 million to $55.8 million, net of federal benefit. Effective fiscal 2023, the Tax Cuts and Jobs Act of 2017 requires the capitalization of research and development costs for tax purposes, which can then be amortized over five years and 15 years for domestic and foreign costs, respectively. Congress has proposed tax legislation to delay the effective date of this change to 2026, but it is uncertain whether the proposed delay will ultimately be enacted into law. If the current effective date remains in place, the Company's initial assessment is that the Company would experience a material decrease in cash from operations, but that the deferred tax liability would be offset by a corresponding amount. The Company has a significant long-term income tax receivable as of March 31, 2022, which primarily represents the amended U.S. federal return refund claims for research and development tax credits and the carryback claim for the fiscal 2021 net operating loss. The Company is currently under federal audit by the Internal Revenue Service (“IRS”) for fiscal years 2016, 2017 and 2019 and the receipt of our U.S federal return refund claims is contingent upon the completion of the ongoing IRS audits. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Contribution Plan The Company sponsors the Employees’ Capital Accumulation Plan, or ECAP, which is a qualified defined contribution plan that covers eligible U.S. and certain international employees. ECAP provides for distributions to participants by reason of retirement, death, disability, or termination of employment. The Company provides an annual matching contribution of up to 6% of eligible annual compensation. Total expense recognized under ECAP for fiscal 2022, 2021, and 2020 was $176.8 million, $166.3 million, and $151.0 million, respectively and the Company-paid contributions were $171.6 million, $163.0 million, and $146.5 million, respectively. Post Retirement Benefit Plans The Company provides postretirement healthcare benefits to former officers under a medical indemnity insurance plan, with premiums paid by the Company. This plan is referred to as the Officer Medical Plan. The Company recognizes a liability for the defined benefit plans' underfunded status, measures the defined benefit plans' obligations that determine its funded status as of the end of the fiscal year, and recognizes as a component of accumulated other comprehensive income the changes in the defined benefit plans' funded status that are not recognized as components of net periodic benefit cost. The components of net postretirement medical expense for the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Service cost $ 6,505 $ 5,657 $ 4,955 Interest cost 4,063 4,237 4,859 Total postretirement medical expense $ 10,568 $ 9,894 $ 9,814 The service cost component of net periodic benefit cost is included in cost of revenue and general and administrative expenses, and the non-service cost components of net periodic benefit cost (interest cost and net actuarial loss) are included as part of other income (expense), net in the accompanying consolidated statements of operations. The weighted-average discount rate used to determine the year-end benefit obligation for the Officer Medical Plan were 3.75%, 3.40% and 3.60% for fiscal 2022, 2021, and 2020, respectively. Assumed healthcare cost trend rates for the Officer Medical Plan at March 31, 2022 and 2021 were as follows: Pre-65 initial rate 2022 2021 Healthcare cost trend rate assumed for next year 6.30 % 6.55 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2031 2029 Post-65 initial rate 2022 2021 Healthcare cost trend rate assumed for next year 6.45 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2031 2029 The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Benefit obligation, beginning of the year $ 121,518 $ 119,609 $ 120,341 Service cost 6,505 5,657 4,955 Interest cost 4,063 4,237 4,859 Net actuarial gain (13,563) (3,466) (6,761) Benefits paid (5,018) (4,519) (3,785) Benefit obligation, end of the year $ 113,505 $ 121,518 $ 119,609 The net actuarial gain related to the benefit obligation in fiscal 2022 was primarily due to favorable changes in estimated medical costs and increases in discount rates, partially offset by updates to demographic assumptions and outlook of higher future medical inflation. The net actuarial gain related to the benefit obligation in fiscal 2021 was primarily due to a favorable medical cost experience, partially offset by the unfavorable impact from declines in discount rates as of March 31, 2021. The net actuarial gain related to the benefit obligation in fiscal 2020 was due mainly to the repeal of excise tax on high cost health plans in December 2019, partially offset by the unfavorable impact from declines in discount rates and changes in estimated medical costs as of March 31, 2020. Fiscal Year Ended March 31, Changes in plan assets 2022 2021 2020 Fair value of plan assets, beginning of the year $ — $ — $ — Employer contributions 5,018 4,519 3,785 Benefits paid (5,018) (4,519) (3,785) Fair value of plan assets, end of the year $ — $ — $ — As of March 31, 2022 and 2021, the unfunded status of the Officer Medical Plan was $113.5 million and $121.5 million, respectively, which is included in other long-term liabilities in the accompanying consolidated balance sheets. The expected future medical benefit payments and related contributions are as follows: For the Fiscal Year Ending March 31, 2023 $ 4,001 2024 $ 4,304 2025 $ 4,546 2026 $ 4,931 2027 $ 5,239 2028 - 2032 $ 31,203 Long-term Disability Benefits The Company offers medical and dental benefits to inactive employees (and their eligible dependents) on long-term disability. These benefits do not vary with an employee's years of service; therefore, the Company is required to accrue the costs of the benefits at the date the inactive employee becomes disability eligible and elects to participate in the benefit. The accrued cost for such benefits is calculated using an actuarial estimate. The accrued cost for these benefits was $9.3 million and $10.9 million at March 31, 2022 and 2021, respectively, and are presented in other long-term liabilities in the accompanying consolidated balance sheets. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) All amounts recorded in other comprehensive loss are related to the Company's post-retirement plans and interest rate swaps designated as cash flow hedges. The following table shows the changes in accumulated other comprehensive loss, net of tax: Fiscal Year Ended March 31, 2022 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (1,562) $ (28,209) $ (29,771) Other comprehensive income before reclassifications (1) 10,294 15,032 25,326 Amounts reclassified from accumulated other comprehensive loss 79 12,951 13,030 Net current-period other comprehensive income 10,373 27,983 38,356 End of year 8,811 (226) 8,585 (1) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $5.3 million for the fiscal year ended March 31, 2022. Fiscal Year Ended March 31, 2021 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (4,127) $ (41,874) $ (46,001) Other comprehensive income (loss) before reclassifications (2) 2,481 (1,529) 952 Amounts reclassified from accumulated other comprehensive loss 84 15,194 15,278 Net current-period other comprehensive income 2,565 13,665 16,230 End of year $ (1,562) $ (28,209) $ (29,771) (2) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $0.5 million for the fiscal year ended March 31, 2021. Fiscal Year Ended March 31, 2020 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (9,068) $ (2,122) $ (11,190) Other comprehensive income (loss) before reclassifications (3) 4,860 (41,300) (36,440) Amounts reclassified from accumulated other comprehensive loss 81 1,548 1,629 Net current-period other comprehensive income (loss) 4,941 (39,752) (34,811) End of year $ (4,127) $ (41,874) $ (46,001) |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Common Stock Holders of Class A Common Stock are entitled to one vote for each share. Each share of Class A Common is entitled to participate equally in all dividends and other distributions declared on and payable with respect to the Class A Common Stock, subject to the preferences and rights of any preferred stock and the General Corporation Law of the State of Delaware. The Company’s ability to pay dividends to stockholders is limited as a practical matter by restrictions in the agreements governing the Company's indebtedness. The authorized and unissued shares of Class A Common Stock are available for future issuance upon stock option exercises and vesting of restricted stock units without additional stockholder approval. Share Repurchase Program On December 21, 2011, the Board of Directors adopted a share repurchase program, which was most recently increased on January 26, 2022 to authorize the repurchase of up to $2,160.0 million in shares of Class A Common Stock. A special committee of the Board of Directors evaluates market conditions and other relevant factors and initiates repurchases under the program from time to time. The share repurchase program may be suspended, modified or discontinued at any time at the Company’s discretion without prior notice. During fiscal 2022, the Company purchased 4.7 million shares of Class A Common Stock in a series of open market transactions for $389.9 million. During fiscal 2021, the Company purchased 3.8 million shares of Class A Common Stock in a series of open market transactions for $293.4 million. As of March 31, 2022, the Company had $651.6 million remaining under the share repurchase program. Dividends The following table summarizes the cash distributions recognized in the consolidated statement of cash flows: Fiscal Year Ended 2022 2021 2020 Recurring dividends (1) $ 209,057 $ 181,066 $ 146,602 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense recognized in the consolidated statements of operations: Fiscal Year Ended March 31, 2022 2021 2020 Cost of revenue $ 36,836 $ 27,682 $ 16,272 General and administrative expenses 32,948 32,162 27,018 Total $ 69,784 $ 59,844 $ 43,290 The following table summarizes the total stock-based compensation expense recognized in the consolidated statements of operations by the following types of equity awards: Fiscal Year Ended March 31, 2022 2021 2020 Equity Incentive Plan Options $ 1,793 $ 2,625 $ 2,741 Restricted Stock and Other Awards 67,991 57,219 40,549 Total $ 69,784 $ 59,844 $ 43,290 As of March 31, 2022 and 2021, there was $48.9 million and $43.3 million, respectively, of total unrecognized compensation cost related to unvested stock-based compensation agreements. The unrecognized compensation cost as of March 31, 2022 is expected to be fully amortized over the next 4.7 years. Absent the effect of forfeiture or acceleration of stock compensation cost for any departures of employees, the following tables summarize the unrecognized compensation cost, the weighted average period the cost is expected to be amortized, and the estimated annual compensation cost for the future periods indicated below (excludes any future award): Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized March 31, March 31, March 31, March 31, Equity Incentive Plan Options $ 2,359 $ 3,426 3.2 3.5 Restricted Stock and Other Awards 46,528 39,881 1.7 1.9 Total $ 48,887 $ 43,307 Total Unrecognized Compensation Cost Total 2023 2024 2025 2026 2027 Equity Incentive Plan Options $ 2,359 $ 1,274 $ 681 $ 312 $ 88 $ 4 Restricted Stock and Other Awards 46,528 30,448 12,455 3,238 387 — Total $ 48,887 $ 31,722 $ 13,136 $ 3,550 $ 475 $ 4 Equity Incentive Plan Awards under the Company's Equity Incentive Plan, or EIP, may be made in the form of stock options; stock purchase rights; restricted stock; restricted stock units; performance shares; performance units; stock appreciation rights; deferred share units; dividend equivalents; and other stock-based awards. As of March 31, 2022 and 2021, there were 8.6 million and 9.3 million shares, respectively, available for future grant under the EIP. Stock Options Stock options under the EIP are granted at the discretion of the Board of Directors or its Compensation, Culture and People Committee and expire ten years from the grant date. Stock options generally vest in equal installments over a five-year period subject to the grantee’s continued service on each applicable vesting. All options under the EIP are exercisable, upon vesting, for shares of Class A Common Stock of Holding. During fiscal 2022 and 2021, the Company granted 0.1 million and 0.3 million options under the EIP, with an aggregate grant date fair value of $1.6 million and $3.6 million, respectively.The total fair value of EIP options vested during both fiscal 2022 and 2021 were $2.4 million. The total intrinsic value of EIP options exercised during fiscal 2022 and 2021 was $11.4 million and $28.9 million, respectively. As of March 31, 2022 and 2021, 0.3 million and 0.5 million options were unvested under the EIP, with a weighted average grant date fair value of $12.73 and $11.64, respectively. There were 1.3 million and 1.4 million EIP options outstanding as of March 31, 2022 and 2021, with a weighted average exercise price of $49.34 and $44.86, respectively. Annual Incentive Plans On October 1, 2010, the Board of Directors adopted an Annual Incentive Plan, or AIP, in connection with the initial public offering to more appropriately align the Company’s compensation programs with those of similarly situated companies. The amount of the annual incentive payment is determined based on performance targets established by the Board of Directors and a portion of the bonus may be paid in the form of equity (including stock and other awards under the EIP). Such equity awards vest over a three-year period subject to the employee’s continued service to the Company. The related expense is recognized in the accompanying consolidated statements of operations based on grant date fair value over the vesting period of three years. The Company maintains annual incentive programs for officers and key employees. The equity compensation would be issued in the form of restricted stock units of which a portion would vest based on the passage of time, and the other portion would vest based on specified performance conditions to be achieved over a specified time period. A restricted stock unit represents a contingent right to receive one share of Class A Common Stock upon vesting. Service-based restricted stock units vest in equal installments over a three-year period subject to the grantee's continued service on each applicable vesting date and are settled for shares of Class A Common Stock. Dividend equivalents are paid in respect of the service-based restricted stock units when dividends are paid on the Company's Class A Common Stock. Performance-based awards vest at the end of a three-year period subject to certain specified financial performance criteria and the grantee's continued service through the period. These awards are settled for Class A Common Stock and dividend equivalents. Compensation expense for performance-based awards during the performance period is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria. The Company also maintains a program whereby certain non-officer employees would be eligible to receive a portion of their annual bonus in equity. The equity compensation would be issued in the form of restricted stock units that would vest immediately after issuance or over an applicable vesting period subject to the employee's continued service for the Company. The associated expense will be recognized in the accompanying consolidated statements of operations based on grant date fair value. Grants of Class A Restricted Common Stock and Restricted Stock Units During fiscal 2022, the Board of Directors granted an aggregate of 1.1 million Restricted Stock Units with service-based and performance-based vesting conditions to existing officers, vice presidents, and other employees and non-employees of the Company, as well as to newly promoted and hired partners and vice presidents. The awards will vest based on the applicable vesting period for the specific award subject to the employees' continued employment with the Company. The Board of Directors also granted Class A Restricted Common Stock to members of the Board of Directors during fiscal 2022. These awards generally vest over one year. The aggregate fair value of all awards issued during fiscal 2022 was $89.9 million and was based on the grant date stock price, which ranged from $41.65 to $89.78. This amount will be recognized in the accompanying consolidated statements of operations over the applicable vesting period of the awards. The total fair value of restricted stock shares vested during fiscal 2022 and 2021 was $59.6 million and $49.8 million, respectively. As permitted under the terms of the EIP, the Compensation, Culture and People Committee, as Administrator of the Plan, authorized the withholding of taxes not to exceed the minimum statutory withholding amount, through the surrender of shares of Class A Common Stock issuable upon the vesting or accelerated vesting of Restricted Stock. As a result of these transactions, the Company repurchase d 0.3 million shares a nd recorded them as treasury shares at a total cost of $29.3 million in fiscal 2022. The following table summarizes unvested restricted stock activity for the periods presented: Number of Weighted Unvested Restricted Stock Awards Unvested at March 31, 2021 920,500 $ 65.37 Granted 1,154,622 77.85 Vested 935,485 63.72 Forfeited 75,377 80.33 Unvested at March 31, 2022 1,064,260 $ 79.29 Employee Stock Purchase Plan The Company offers a tax qualified Employee Stock Purchase Plan, or ESPP, which is designed to enable eligible employees to periodically purchase shares of the Class A Common Stock at a five percent discount from the fair market value of the Class A Common Stock. The ESPP provides for quarterly offering periods. For the year ended March 31, 2022, 0.3 million shares of Class A Common Stock were purchased by employees under the ESPP. Since the program's inception, 3.2 million shares have been purchased by employees of the total 10 million shares available. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we consider the principal or most advantageous market in which the asset or liability would transact, and if necessary, consider assumptions that market participants would use when pricing the asset or liability. The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes 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 (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3). A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The financial instruments measured at fair value in the accompanying consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long term deferred compensation plan asset (1) 16,512 — — 16,512 Long-term derivative instruments (3) — 4,088 — 4,088 Total Assets $ 16,512 $ 4,088 $ — $ 20,600 Liabilities: Current derivative instruments (3) — 4,324 — 4,324 Long-term derivative instruments (3) — 39 — 39 Long term deferred compensation plan liability (1) 16,512 — — 16,512 Total Liabilities $ 16,512 $ 4,363 $ — $ 20,875 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long term deferred compensation plan asset (1) $ 14,142 $ — $ — $ 14,142 Total Assets $ 14,142 $ — $ — $ 14,142 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,223 $ 1,223 Current derivative instruments (3) $ — $ 17,163 $ — $ 17,163 Long-term derivative instruments (3) $ — $ 20,999 $ — $ 20,999 Long term deferred compensation plan liability (1) $ 14,142 $ — $ — $ 14,142 Total liabilities $ 14,142 $ 38,162 $ 1,223 $ 53,527 (1) Investments in this category consist of primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our consolidated balance sheets. (2) The Company recognized a contingent consideration liability of $3.6 million in connection with the acquisition of Aquilent in fiscal 2017. As of March 31, 2021, the estimated fair value of the contingent consideration liability was $1.2 million, and was valued using probability-weighted cash flows, which is based on the use of Level 3 fair value measurement inputs. As of March 31, 2022 the relevant statute of limitations pertaining to the contingent liability expired at which point the Company wrote off the existing liability balance. (3) The Company’s interest rate swaps are considered over-the-counter derivatives and fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 11 to the consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. We did not have any material items that were measured at fair value on a non-recurring basis as of March 31, 2022 , with the exception of the assets and liabilities acquired through the acquisitions of Liberty and Tracepoint (see Note 5). |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Two of our directors served on the board of directors of a subcontractor to which the Company subcontracted $70.0 million, $85.9 million and $79.7 million of services for fiscal 2022, 2021 and 2020, respectively. The subcontractor was acquired by another company in August 2021, at which point the two directors ceased to serve on the board of directors. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit and Third-Party Guarantees As of March 31, 2022 and 2021, the Company was contingently liable under open standby letters of credit and bank guarantees issued by our banks in favor of third parties that totaled $8.4 million and $9.8 million, respectively. These letters of credit and bank guarantees primarily support insurance and bid and performance obligations. At March 31, 2022 and 2021, approximately $1.0 million and $0.9 million of these instruments reduce the available borrowings under the Revolving Credit Facility. The remainder is guaranteed under a separate $20.0 million facility of which $12.6 million and $11.1 million, respectively, was available to the Company at March 31, 2022 and 2021. Government Contracting Matters - Provision for Claimed Indirect Costs For fiscal 2022, 2021, and 2020, approximately 97%, 97%, and 96%, respectively, of the Company’s revenue was generated from contracts where the end user was an agency or department of the U.S. government, including contracts where the Company performed either as a prime contractor or subcontractor, and regardless of the geographic location in which the work was performed. U.S. government contracts and subcontracts are subject to extensive legal and regulatory requirements. From time to time and in the ordinary course of business, agencies of the U.S. government audit our claimed indirect costs and conduct inquiries and investigations of our business practices with respect to government contracts to determine whether the Company’s operations are conducted in accordance with these requirements and the terms of the relevant contracts. U.S. government agencies, including the Defense Contract Audit Agency (DCAA), routinely audit our claimed indirect costs, for compliance with the Cost Accounting Standards and the Federal Acquisition Regulation. These agencies also conduct reviews and investigations and make inquiries regarding our accounting and other systems in connection with our performance and business practices with respect to our government contracts and subcontracts. U.S. government audits, inquiries, or investigations of the Company, whether related to the Company’s U.S. government contracts or subcontracts or conducted for other reasons, could result in administrative, civil, or criminal liabilities, including withholding of payments, suspension of payments, repayments, fines, or penalties being imposed upon the Company, or could lead to suspension or debarment from future U.S. government contracting. Management believes it has recorded the appropriate provision for claimed indirect costs for any audit, inquiry, or investigation of which it is aware that may be subject to any reductions and/or penalties. As of March 31, 2022 and 2021, the Company had recorded liabilities of approximately $290.4 million and $263.2 million, respectively, for estimated adjustments to claimed indirect costs based on its historical DCAA audit results, including the final resolution of such audits with the Defense Contract Management Agency, for claimed indirect costs incurred subsequent to fiscal 2011, and for contracts not yet closed that are subject to audit and final resolution. Litigation Our performance under U.S. government contracts and compliance with the terms of those contracts and applicable laws and regulations are subject to continuous audit, review, and investigation by the U.S. government, which may include such investigative techniques as subpoenas or civil investigative demands. Given the nature of our business, these audits, reviews, and investigations may focus, among other areas, on various aspects of procurement integrity, labor time reporting, sensitive and/or classified information access and control, executive compensation, and post government employment restrictions. We are not always aware of our status in such matters, but we are currently aware of certain pending audits and investigations involving labor time reporting, procurement integrity, and classified information access. In addition, from time to time, we are also involved in legal proceedings and investigations arising in the ordinary course of business, including those relating to employment matters, relationships with clients and contractors, intellectual property disputes, and other business matters. These legal proceedings seek various remedies, including claims for monetary damages in varying amounts, none of which are considered material, or are unspecified as to amount. Although the outcome of any such matter is inherently uncertain and may be materially adverse, based on current information, we do not expect any of the currently ongoing audits, reviews, investigations, or litigation to have a material adverse effect on our financial condition and results of operations. As of March 31, 2022 and 2021, there were no material amounts accrued in the consolidated financial statements related to these proceedings. On June 7, 2017, Booz Allen Hamilton Inc. was informed that the U.S. Department of Justice (DOJ) is conducting a civil and criminal investigation of the Company. In connection with the investigation, the DOJ has requested information from the Company relating to certain elements of the Company’s cost accounting and indirect cost charging practices with the U.S. government. Since learning of the investigation, the Company has engaged a law firm experienced in these matters to represent the Company in connection with this matter and respond to the government's requests. As is commonly the case with this type of matter, the Company has also been in contact with other regulatory agencies and bodies, including the SEC, which notified the Company that it is conducting an investigation that the Company believes relates to the matters that are also the subject of the DOJ's investigation. The Company may receive additional regulatory or governmental inquiries related to the matters that are the subject of the DOJ's investigation. In accordance with the Company's practice, the Company is cooperating with all relevant government parties. On May 12, 2021, the Company was informed that the DOJ has closed its criminal investigation. The total cost associated with these matters will depend on many factors, including the duration of these matters and any related findings. At this stage, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these matters. On June 19, 2017, a purported stockholder of the Company filed a putative class action lawsuit in the United States District Court for the Eastern District of Virginia styled Langley v. Booz Allen Hamilton Holding Corp., No. 17-cv-00696 naming the Company, its Chief Executive Officer and its Chief Financial Officer as defendants purportedly on behalf of all purchasers of the Company’s securities from May 19, 2016 through June 15, 2017. On September 5, 2017, the court named two lead plaintiffs, and on October 20, 2017, the lead plaintiffs filed a consolidated amended complaint. The complaint asserts claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, alleging misrepresentations or omissions by the Company purporting to relate to matters that are the subject of the DOJ investigation described above. The plaintiffs seek to recover from the Company and the individual defendants an unspecified amount of damages. The Company believes the suit lacks merit and intends to defend against the lawsuit. Motions to dismiss were argued on January 12, 2018, and on February 8, 2018, the court dismissed the amended complaint in its entirety without prejudice. At this stage of the lawsuit, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with the lawsuit. On November 13, 2017, a Verified Shareholder Derivative Complaint was filed in the United States District Court for the District of Delaware styled Celine Thum v. Rozanski et al., C.A. No. 17-cv-01638, naming the Company as a nominal defendant and numerous current and former officers and directors as defendants. The complaint asserts claims for breach of fiduciary duties, unjust enrichment, waste of corporate assets, abuse of control, gross mismanagement, and violations of Sections 14(a), 10(b) and 20(a) of the Exchange Act, purportedly relating to matters that are the subject of the DOJ investigation described above. The parties have stipulated to a stay of the proceedings pending the outcome of the securities litigation (described above), which the court so ordered on January 24, 2018. On December 12, 2019, the court ordered that the stay remain in effect and ordered the parties to submit periodic status reports. On May 27, 2020, November 23, 2020, May 24, 2021, and November 22, 2021, the parties submitted status reports stating that plaintiff believes the stay should remain in effect and defendants do not object to the stay remaining in effect. At this stage of the lawsuit, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with the lawsuit. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATIONThe Company reports operating results and financial data in one operating and reportable segment. The Company manages its business as a single profit center in order to promote collaboration, provide comprehensive functional service offerings across its entire client base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding served markets and functional capabilities is discussed for purposes of promoting an understanding of the Company’s complex business, the Company manages its business and allocates resources at the consolidated level of a single operating segment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On May 20, 2022, the Company announced that its Board of Directors had declared a quarterly cash dividend of $ 0.43 per share. Payment of the dividend will be made on June 30, 2022 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are majority-owned or otherwise controlled by the Company and have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and notes of the Company include its subsidiaries and other entities over which the Company has a controlling financial interest or where the company is a primary beneficiary. The Company uses the equity method to account for investments in entities that it does not control if it is otherwise able to exert significant influence over the entities' operating and financial policies. Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost or cost net of other-than-temporary impairments. |
Reclassification | Certain amounts reported in the Company's prior year consolidated financial statements have been reclassified to conform to the current year presentation. |
Accounting Estimates | Accounting Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and expected lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition, including the accrual of indirect costs, bonus and other incentive compensation, stock-based compensation, reserves for uncertain tax positions and valuation allowances on deferred tax assets, provisions for income taxes, postretirement obligations, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ materially from management's estimates. |
Revenue Recognition | Revenue Recognition The Company's revenues from contracts with customers (clients) are derived from offerings that include consulting, analytics, digital solutions, engineering, and cyber services, substantially with the U.S. government and its agencies, and to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international commercial clients. The Company performs under various types of contracts, which include cost-reimbursable-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. The Company considers a contract with a customer to exist under Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers (Topic 606), when there is approval and commitment from both the Company and the customer, the rights of the parties and payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company also will consider whether two or more contracts entered into with the same customer should be combined and accounted for as a single contract. Furthermore, in certain transactions with commercial clients and with the U.S. government, the Company may commence providing services prior to receiving a formal approval from the customer. In these situations, the Company will consider the factors noted above, the risks associated with commencing the work and legal enforceability in determining whether a contract with the customer exists under Topic 606. Customer contracts are often modified to change the scope, price, specifications or other terms within the existing arrangement. Contract modifications are evaluated by management to determine whether the modification should be accounted for as part of the original performance obligation(s) or as a separate contract. If the modification adds distinct goods or services and increases the contract value proportionate to the stand-alone selling price of the additional goods or services, it will be accounted for as a separate contract. Generally, the Company’s contract modifications do not include goods or services which are distinct, and therefore are accounted for as part of the original performance obligation(s) with any impact on transaction price or estimated costs at completion being recorded as through a cumulative catch-up adjustment to revenue. The Company evaluates each service deliverable contracted with the customer to determine whether it represents promises to transfer distinct goods or services. Under Topic 606, these are referred to as performance obligations. One or more service deliverables often represent a single performance obligation. This evaluation requires significant judgment and the impact of combining or separating performance obligations may change the time over which revenue from the contract is recognized. The Company’s contracts generally provide a set of integrated or highly interrelated tasks or services and are therefore accounted for as a single performance obligation. However, in cases where we provide more than one distinct good or service within a customer contract, the contract is separated into individual performance obligations which are accounted for discretely. Contracts with the U.S. government are generally subject to the FAR and are priced based on estimated or actual costs of providing the goods or services. The Company derives a majority of its revenue from contracts awarded through a competitive bidding process. Pricing for non-U.S. government agencies and commercial customers is based on discrete negotiations with each customer. Certain of the Company’s contracts contain award fees, incentive fees or other provisions that may increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and may be based upon customer discretion. Management estimates variable consideration as the most likely amount that we expect to achieve based on our assessment of the variable fee provisions within the contract, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. The Company may perform work under a contract that has not been fully funded if the work has been authorized by management and the customer to proceed. The Company evaluates unfunded amounts as variable consideration in estimating the transaction price. We include the estimated variable consideration in our transaction price to the extent that it is probable that a significant reversal of revenue will not occur upon the ultimate settlement of the variable fee provision. In the limited number of situations where our contracts with customers contain more than one performance obligation, the Company allocates the transaction price of a contract between the performance obligations in the proportion to their respective stand-alone selling prices. The Company generally estimates the stand-alone selling price of performance obligations based on an expected cost-plus margin approach as allowed under Topic 606. Our U.S. government contracts generally contain FAR provisions that enable the customer to terminate a contract for default or for the convenience of the U.S. government. The Company recognizes revenue for each performance obligation identified within our customer contracts when, or as, the performance obligation is satisfied by transferring the promised goods or services. Revenue may either be recognized over time or at a point in time. The Company generally recognizes revenue over time as our contracts typically involve a continuous transfer of control to the customer. A continuous transfer of control under contracts with the U.S. government and its agencies is evidenced by clauses which require the Company to be paid for costs incurred plus a reasonable margin in the event that the customer unilaterally terminates the contract for convenience. For contracts where the Company recognizes revenue over time, a contract cost-based input method is generally used to measure progress towards satisfaction of the underlying performance obligation(s). Contract costs include direct costs such as materials, labor and subcontract costs, as well as indirect costs identifiable with, or allocable to, a specific contract that are expensed as incurred. The Company does not incur material incremental costs to acquire or fulfill contracts. Under a contract cost-based input method, revenue is recognized based on the proportion of contract costs incurred to the total estimated costs expected to be incurred upon completion of the underlying performance obligation. The Company generally includes both funded and unfunded portions of customer contracts in this estimation process. For interim financial reporting periods, contract revenue attributable to indirect costs is recognized based upon agreed-upon annual forward-pricing rates established with the U.S. government at the start of each fiscal year. Forward pricing rates are estimated and agreed upon between the Company and the U.S. government and represent indirect contract costs required to execute and administer contract obligations. The impact of any agreed-upon changes, or changes in the estimated annual forward-pricing rates, are recorded in the interim financial reporting period when such changes are identified. These changes relate to the interim financial reporting period differences between the actual indirect costs incurred and allocated to customer contracts compared to the estimated amounts allocated to contracts using the estimated annual forward-pricing rates established with the U.S. government. On certain contracts, principally time-and-materials and cost-reimbursable-plus-fee contracts, revenue is recognized using the right-to-invoice practical expedient as the Company is contractually able to invoice the customer based on the control transferred. However, we did not elect to use the practical expedient which would allow the Company to exclude contracts recognized using the right-to-invoice practical expedient from the remaining performance obligations disclosed below. Additionally, for stand-ready performance obligations to provide services under fixed-price contracts, revenue is recognized over time using a straight-line measure of progress as the control of the services is provided to the customer ratably over the term of the contract. If a contract does not meet the criteria for recognition of revenue over time, we recognize revenue at the point in time when control of the good or service is transferred to the customer. Determining a measure of progress towards the satisfaction of performance obligations requires management to make judgments that may affect the timing of revenue recognition. Many of our contracts recognize revenue under a contract cost-based input method and require an Estimate-at-Completion (EAC) process, which management uses to review and monitor the progress towards the completion of our performance obligations. Under this process, management considers various inputs and assumptions related to the EAC, including, but not limited to, progress towards completion, labor costs and productivity, material and subcontractor costs, and identified risks. Estimating the total cost at completion of performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized in the period when such changes are made on a cumulative catch-up basis. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For fiscal 2022, 2021 and 2020, the aggregate impact of adjustments in contract estimates was not material. Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations do not include negotiated but unexercised options or the unfunded value of expired contracts. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include operating cash on hand and highly liquid investments having a weighted average maturity of 60 days or less and a weighted average life of 120 days or less. The Company’s cash equivalents consist primarily of government money market funds and money market deposit accounts. The Company maintains its cash and cash equivalents in bank accounts that, at times, exceed the federally insured FDIC limits. The Company has not experienced any losses in such accounts. |
Valuation of Accounts Receivable | Valuation of Accounts Receivable The Company maintains allowances for doubtful accounts against certain accounts receivables based upon the latest information regarding whether specific charges are recoverable or invoices are ultimately collectible. Assessing the recoverability of charges and collectability of customer receivables requires management judgment. The Company determines its allowance for doubtful accounts by specifically analyzing individual accounts receivable, historical bad debts, customer credit-worthiness, current economic conditions, accounts receivable aging trends for billed receivables, availability of funding, compliance with contractual terms and conditions, client satisfaction with work performed, and other factors impacting accounts receivables. Valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate recoverability and collectability of accounts receivable becomes available. Upon determination that a receivable is uncollectible, the receivable balance and any associated reserve are written off. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. The Company’s cash equivalents are generally invested in U.S. government money market funds and money market deposit accounts. The Company believes that credit risk for accounts receivable is limited as the receivables are primarily with the U.S. government. |
Property and Equipment | Property and EquipmentProperty and equipment are recorded at cost, and the balances are presented net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Furniture and equipment is depreciated over five |
Business Combinations | Business CombinationsThe accounting for the Company’s business combinations consists of allocating the purchase price to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. The Company has up to one year from the acquisition date to use information as of each acquisition date to adjust the fair value of the acquired assets and liabilities which may result in material changes to their recorded values with an offsetting adjustment to goodwill. |
Intangible Assets | Intangible AssetsIntangible assets primarily consist of programs and contracts assets, channel relationships, the Company's trade name, customer relationships, software and other amortizable intangible assets. The Company capitalizes the following costs associated with developing internal-use computer software pertaining to upgrades in our business and financial systems: (i) external direct costs of materials and services consumed in developing or obtaining internal-use computer software and (ii) certain payroll and payroll-related costs for Company employees who are directly associated with the development of internal-use software, to the extent of the time spent directly on the project. Programs and contract assets, channel relationships, and other amortizable intangible assets are generally amortized on an accelerated basis over the expected life based on projected future cash flows of approximately two one |
Goodwill | GoodwillThe Company assesses goodwill for impairment on at least an annual basis on January 1 unless interim indicators of impairment exist. Goodwill is considered to be impaired when the net book value of a reporting unit exceeds its estimated fair value. The Company operates as a single operating segment and as a single reporting unit for the purpose of evaluating goodwill. As of January 1, 2022, the Company performed its annual impairment test of goodwill by comparing the fair value of the Company (based on market capitalization) to the carrying value of the Company's net equity, and concluded that the fair value of the reporting unit was significantly greater than the carrying amount. |
Long-Lived Assets | Long-Lived AssetsThe Company reviews its long-lived assets, including property and equipment, amortizable intangible assets, and right-of-use (ROU) assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for any excess of the carrying amount over the fair value of the asset. |
Leases | Leases At contract inception, the Company determines whether the contract is, or contains, a lease, which exists when the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. Operating lease balances are included in operating lease right-of-use ("ROU") assets, operating lease liabilities, and operating lease liabilities, net of current portion in our consolidated balance sheet. Cash payments arising from operating leases are classified within operating activities in the consolidated statement of cash flows. As of March 31, 2022, the Company had no finance leases. The Company's leases are generally for facilities and office space and the Company recognizes ROU assets and lease liabilities at the lease commencement date for those arrangements. The initial lease liability is equal to the present value of the future minimum lease payments over the lease term. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepaid lease payments, less any lease incentives. At the lease commencement date, the Company estimates its collateralized incremental borrowing rate based on publicly available yields adjusted for Company-specific considerations and the Company's varying lease terms in determining the present value of future payments. Certain of the Company’s leases contain options to renew or to terminate the lease which are included in the determination of the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. The Company's leases may also include variable lease payments, such as an escalation clause based on consumer price index rates, maintenance costs, and utilities. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date, whereas variable lease-related payments that do not depend on an index or rate are recorded as lease expense in the period incurred. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. |
Income Taxes | Income Taxes The Company provides for income taxes as a “C” corporation on income earned from operations. The Company is subject to federal, state, and foreign taxation in various jurisdictions. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are computed based on the difference between the consolidated financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates and laws for the years in which these items are expected to reverse. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to an appropriate level in that period. In determining the need for a valuation allowance, management considers all positive and negative evidence, including historical earnings, projected future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryback periods, and prudent, feasible tax-planning strategies. The Company periodically assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the Internal Revenue Service (“IRS”) or other taxing authorities. The Company reserves for these uncertain tax positions related to unrecognized income tax benefits where it is not more likely than not that the Company’s tax position will be sustained on examination and settlement with the various taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. As uncertain tax positions in periods open to examination are closed out, or as new information becomes available, the resulting change is reflected in the recorded liability and income tax expense. Penalties and interest recognized related to the reserves for uncertain tax positions are recorded as a component of income tax expense. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation to employees is recognized in the consolidated statements of operations based on the grant date fair values with the expense for time vested awards recognized on an accelerated basis over the vesting perio d. The Company estimates forfeitures anticipated to occur during the vesting period for the purposes of recognizing costs associated with stock-based compensation. The expense for performance awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance criteria and is recognized straight line over the vesting pe riod. The Company uses the Black-Scholes option-pricing model to determine the fair value of its option awards at the time of grant. |
Defined Benefit Plan, Other Post-Retirement Benefits and Long-term Disability Plan | Defined Benefit Plan, Other Post-Retirement Benefits and Long-term Disability Plan The Company recognizes the underfunded status of defined benefit plans and other post-retirement benefits on the consolidated balance sheets within other long-term liabilities. Gains and losses, and prior service costs and credits that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, and will be amortized as a component of net periodic cost in future periods. The measurement date, the date at which the benefit obligations are measured, is the Company’s fiscal year-end. The Company also offers medical and dental benefits to inactive employees (and their eligible dependents) on long-term disability. The Company accrues the costs of the benefits at the date the inactive employee becomes disability eligible and elects to participate in the benefit. The accrued cost for such benefits is calculated using an actuarial estimate of the present value of all future benefit payments for obligations at the end of the fiscal year. |
Self-Funded Medical Plans | Self-Funded Medical Plans The Company maintains self-funded medical insurance. Self-funded plans include Consumer Driven Health Plans with a Health Savings Account option and traditional choice plans. Further, self-funded plans also include prescription drug and dental benefits. The Company records an incurred but unreported claim liability in the accrued compensation and benefits line of the consolidated balance sheets for self-funded plans based on an actuarial valuation. The estimate of the incurred but unreported claim liability was provided by a third-party valuation firm, primarily based on claims and participant data for the medical, dental, and pharmacy related costs. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In November 2020, the SEC issued Release No. 33-10890, Amendments to Management's Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information , to simplify, modernize and enhance certain financial disclosure requirements in Regulation S-K. The Company updated its disclosures throughout this Annual Report on Form 10-K to comply with these amendments. The Company’s adoption only impacted the Company's disclosures and did not impact the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms, and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for annual periods beginning after December 15, 2022 on a prospective basis. Early adoption is permitted. The Company early adopted the requirements of ASU 2021-08 to apply the amendments prospectively to all business combinations that occurred on or after April 1, 2022. Recent Accounting Pronouncements Not Yet Adopted |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below presents the total revenue for each type of contract: Fiscal Year Ended March 31, 2022 2021 2020 Cost-reimbursable $ 4,514,262 54% $ 4,419,533 56% $ 4,211,592 57% Time-and-materials 2,017,094 24% 1,962,999 25% 1,737,414 23% Fixed-price 1,832,344 22% 1,476,406 19% 1,514,835 20% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% Revenue by Customer Type: Fiscal Year Ended March 31, 2022 2021 2020 U.S. government (1) : Defense Clients $ 3,955,473 47% $ 3,920,503 49% $ 3,596,081 47% Intelligence Clients 1,573,037 19% 1,549,417 20% 1,580,925 22% Civil Clients 2,618,914 31% 2,183,184 28% 2,020,320 27% Total U.S. government 8,147,424 97% 7,653,104 97% 7,197,326 96% Global Commercial Clients 216,276 3% 205,834 3% 266,515 4% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% (1) Certain contracts were reassigned between the various verticals of our U.S. government business shown in the table above to better align our operations to the customers we serve within each market. Prior year revenue by customer type has been recast to reflect the changes. Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor: Fiscal Year Ended March 31, 2022 2021 2020 Prime Contractor $ 7,864,273 94% $ 7,311,313 93% $ 6,884,763 92% Sub-contractor 499,427 6% 547,625 7% 579,078 8% Total Revenue $ 8,363,700 100% $ 7,858,938 100% $ 7,463,841 100% |
Schedule of Contract Assets and Liabilities | The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s condensed consolidated balance sheets: March 31, 2022 2021 Current assets: Accounts receivable–billed $ 465,322 $ 375,383 Accounts receivable–unbilled (contract assets) 1,157,667 1,037,968 Allowance for credit losses — (1,457) Accounts receivable, net 1,622,989 1,411,894 Other long-term assets: Accounts receivable–unbilled (contract assets) 64,339 63,869 Total accounts receivable, net $ 1,687,328 $ 1,475,763 Other current liabilities Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) $ 26,747 $ 15,906 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Income Used to Compute Basic and Diluted EPS | A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows: Fiscal Year Ended 2022 2021 2020 Earnings for basic computations (1) $ 463,626 $ 605,437 $ 481,085 Weighted-average of common stock shares outstanding for basic computations 134,134,034 137,722,589 140,059,494 Earnings for diluted computations (1) $ 463,635 $ 605,455 $ 481,092 Dilutive stock options and restricted stock 716,774 980,631 1,178,641 Weighted-average of common stock shares outstanding for diluted computations 134,850,808 138,703,220 141,238,135 Earnings per share of common stock Basic $ 3.46 $ 4.40 $ 3.43 Diluted $ 3.44 $ 4.37 $ 3.41 (1) During fiscal 2022, 2021, and 2020 approximately 0.9 million, 0.8 million, and 0.4 million shares of participating securities were paid dividends totaling $1.4 million, $1.0 million, and $0.7 million, respectively. There were undistributed earnings of $1.7 million, $2.5 million, and $0.9 million allocated to the participating class of securities in both basic and diluted earnings per share of common stock for fiscal 2022, 2021, and 2020, respectively. The allocated undistributed earnings and the dividends paid comprise the difference between net income presented on the consolidated statements of operations and earnings for basic and diluted computations for fiscal 2022, 2021, and 2020. The impact of any anti-dilutive options included in the calculation of EPS was not material. |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the cumulative consideration paid and the allocation of the purchase price paid for Tracepoint and Liberty: Cash consideration (gross of cash acquired and including net adjustments) $ 789,429 Fair value of non-controlling interest 80,063 Total purchase consideration 869,492 Purchase price allocation: Cash 9,096 Current assets 57,519 Operating lease right-of-use asset 2,532 Other long-term assets 2,825 Intangible assets 399,500 Current liabilities (40,217) Operating lease liabilities-current (1,017) Operating lease liabilities-long term (1,516) Total fair value of identifiable net assets acquired $ 428,722 Goodwill $ 440,770 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consisted of the following: March 31, 2022 March 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Programs and contract assets, channel relationships, and other amortizable intangible assets (1) $ 483,294 $ 101,584 $ 381,710 $ 82,400 $ 50,503 $ 31,897 Software 119,398 44,626 74,772 114,972 29,941 85,031 Total amortizable intangible assets $ 602,692 $ 146,210 $ 456,482 $ 197,372 $ 80,444 $ 116,928 Unamortizable intangible assets: Trade name $ 190,200 $ — $ 190,200 $ 190,200 $ — $ 190,200 Total $ 792,892 $ 146,210 $ 646,682 $ 387,572 $ 80,444 $ 307,128 (1) The increase in the carrying amount of programs and contracts, channel relationships, and other amortizable intangible assets was attributable to the Company's acquisitions of Liberty and Tracepoint. |
Summary of Expected Amortization Expense for Intangible Assets | The following table summarizes the estimated annual amortization expense for future periods, which does not reflect amortization expense for certain intangible assets that are not yet placed in service: For the Fiscal Year Ended March 31, 2023 $ 85,776 2024 71,149 2025 60,811 2026 53,552 2027 43,585 Thereafter 141,609 Total estimated amortization expense $ 456,482 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property and Equipment, Net | The components of property and equipment, net were as follows: March 31, 2022 2021 Furniture and equipment $ 117,250 $ 117,430 Computer equipment 104,296 97,571 Leasehold improvements 235,342 225,132 Total 456,888 440,133 Less: Accumulated depreciation and amortization (254,659) (235,491) Property and equipment, net $ 202,229 $ 204,642 |
ACCOUNTS PAYABLE AND OTHER AC_2
ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Accrued Expenses | Accounts payable and other accrued expenses consisted of the following: March 31, 2022 2021 Vendor payables $ 539,524 $ 371,744 Accrued expenses 363,092 295,227 Total accounts payable and other accrued expenses $ 902,616 $ 666,971 |
ACCRUED COMPENSATION AND BENE_2
ACCRUED COMPENSATION AND BENEFITS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Schedule of Accrued Compensation and Benefits | Accrued compensation and benefits consisted of the following: March 31, 2022 2021 Bonus $ 96,040 $ 130,565 Retirement 48,169 44,474 Vacation 206,199 202,100 Other 88,226 48,476 Total accrued compensation and benefits $ 438,634 $ 425,615 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: March 31, 2022 March 31, 2021 Interest Outstanding Interest Outstanding Term Loan A 1.71 % $ 1,241,398 1.61 % $ 1,289,764 Term Loan B 2.21 % 380,321 1.86 % 384,212 Revolver — % — — % — Senior Notes due 2028 3.88 % 700,000 3.88 % 700,000 Senior Notes due 2029 4.00 % 500,000 — % — Less: Unamortized debt issuance costs and discount on debt (21,647) (17,380) Total 2,800,072 2,356,596 Less: Current portion of long-term debt (68,379) (77,865) Long-term debt, net of current portion $ 2,731,693 $ 2,278,731 |
Schedule of Future Debt Principal Repayments | The following table summarizes required future debt principal repayments: Payments Due By March 31, Total 2023 2024 2025 2026 2027 Thereafter Term Loan A $1,241,398 $64,488 $64,488 $64,488 $64,488 $983,446 — Term Loan B 380,321 3,891 3,891 3,891 3,891 364,757 — Senior Notes 2028 700,000 — — — — — 700,000 Senior Notes 2029 500,000 — — — — — 500,000 Interest on indebtedness 446,697 76,677 75,550 74,270 73,067 56,445 90,688 Total $3,268,416 $145,056 $143,929 $142,649 $141,446 $1,404,648 $1,290,688 |
Schedule of Interest Expense | Interest on debt and debt-like instruments consisted of the following: Fiscal Year Ended March 31, 2022 2021 2020 Term Loan A Interest Expense $ 19,570 $ 23,541 $ 50,080 Term Loan B Interest Expense 7,207 7,787 15,739 Interest on Revolving Credit Facility 25 799 92 Senior Notes Interest Expense 42,902 23,476 17,938 Deferred Payment Obligation Interest (1) — — 5,740 Amortization of Debt Issuance Costs (DIC) and Original Issue Discount (OID) (2) 4,619 4,396 4,688 Interest Swap Expense 17,535 20,558 2,094 Other 494 713 589 Total Interest Expense $ 92,352 $ 81,270 $ 96,960 (1) In connection with Carlyle Group indirectly acquiring all of the issued and outstanding stock of the Company on July 31, 2008, the Company established a Deferred Payment Obligation, payable 8.5 years after the closing date, or until settlement of all outstanding claims, less any settled claims. All remaining potential claims outstanding that were able to be indemnified under the Deferred Payment Obligation related to former officers and stockholders' lawsuits, were all settled as of December 31, 2019 . Interest payments on the Deferred Payment Obligation were made twice a year in January and July. The final payment was made during fiscal 2020. (2) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company's Revolving Credit Facility is recorded as a long-term asset on the consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The effect of derivative instruments on the accompanying consolidated financial statements is as follows: Fiscal year ended March 31, Derivatives in Cash Flow Hedging Relationships Location of Gain or Loss Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Loss Reclassified from AOCI into Income (1) 2022 2021 2020 2022 2021 2020 Interest rate swaps Interest expense $ 20,352 $ (2,071) $ (55,871) $ (17,535) $ (20,558) $ (2,094) (1) The reclassifications from accumulated other comprehensive gain (loss) to net income was reduced by taxes of $4.6 million, $5.4 million and $0.5 million for fiscal 2022, 2021 and 2020. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedules of Lease Cost | The Company’s total lease cost is recorded primarily within general and administrative expenses on the consolidated statement of operations and consisted of the following: Fiscal Year Ended 2022 2021 2020 Operating lease cost $ 69,831 $ 68,702 $ 71,067 Short-term lease cost 585 3,780 9,657 Variable lease cost 11,641 12,843 11,657 Total operating lease costs $ 82,057 $ 85,325 $ 92,381 Supplemental cash flow information related to leases was as follows: Fiscal Year Ended 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 76,100 $ 69,320 $ 53,741 Operating lease liabilities arising from obtaining ROU assets (1) 41,206 52,454 26,378 (1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements Other information related to leases was as follows: March 31, 2022 2021 Weighted average remaining lease term (in years) 5.0 5.5 Weighted average discount rate 4.5 % 4.6 % |
Schedule of Future Minimum Operating Lease Payments | Future minimum operating lease payments for noncancelable operating leases as of March 31, 2022 are as follows: For the Fiscal Year Ending March 31, Operating Lease Payments 2023 $ 64,528 2024 74,462 2025 70,907 2026 52,065 2027 30,400 Thereafter 45,537 Total future lease payments 337,899 Less: imputed interest (38,495) Total lease liabilities $ 299,404 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense | The components of income tax expense were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Current U.S. Federal $ 232,844 $ (227,309) $ (2,638) State and local 26,333 39,542 18,410 Foreign 8,486 9,250 15,625 Total current 267,663 (178,517) 31,397 Deferred U.S. Federal (146,581) 245,624 59,856 State and local 11,781 (13,626) 5,578 Foreign 4,603 — — Total deferred (130,197) 231,998 65,434 Total $ 137,466 $ 53,481 $ 96,831 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income tax to the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for each of the three years ended March 31 is as follows: Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense computed at U.S. federal statutory rate $ 126,981 $ 139,112 $ 121,681 Increases (reductions) resulting from: State and local income taxes, net of federal tax 28,762 17,586 20,031 Foreign income taxes, net of federal tax 9,243 6,679 12,344 Meals and entertainment 343 653 1,761 Re-measurement of current year losses under CARES Act — (76,767) — Excess tax benefits from stock-based compensation (4,227) (8,556) (10,265) Research and development and other federal credits (34,080) (30,313) (90,898) Executive compensation -162(m) 3,614 3,813 2,346 Foreign-Derived Intangible Income (FDII) (9,115) (4,536) (4,915) Changes in uncertain tax positions 16,938 6,793 44,621 Other (993) (983) 125 Income tax expense from operations $ 137,466 $ 53,481 $ 96,831 |
Schedule of Components of Income Tax Receivables and Payables | The Company has both income tax receivables and income tax payable on its consolidated balance sheet as follows: March 31, 2022 2021 Current income tax receivable $ 47,142 $ 175,541 Long term income tax receivable $ 341,738 $ 333,188 Current income tax payable $ 34,324 $ 30,694 |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred income tax assets and liabilities were as follows: March 31, 2022 2021 Deferred income tax assets: Accrued expenses $ 80,344 $ 78,005 Deferred compensation 56,361 52,191 Stock-based compensation 9,783 5,724 Pension and postretirement benefits 30,797 32,881 Net operating loss carryforwards 44,118 98,471 Extended disability benefits 2,426 2,838 Interest rate swaps 75 9,955 Federal tax credits — 12,582 State tax credits 24,268 27,243 Operating lease liabilities 82,799 86,046 Other — 3,378 Total gross deferred income tax assets 330,971 409,314 Less: Valuation allowance (8,715) (6,165) Total net deferred income tax assets 322,256 403,149 Deferred income tax liabilities: Unbilled receivables (209,753) (245,809) Intangible assets (56,657) (69,519) Debt issuance costs (1,435) (1,488) Property and equipment (198,940) (336,321) Operating lease right-of-use assets (59,401) (62,442) Internally developed software — (20,309) Other (3,345) — Total deferred income tax liabilities (529,531) (735,888) Net deferred income tax liability $ (207,275) $ (332,739) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows: March 31, 2022 2021 2020 Beginning of year $ 62,742 $ 55,221 $ 11,083 Increases in prior year position 2,620 5,018 34,001 Increases in current year position 13,530 12,753 10,970 Decreases in prior year position (373) — (765) Settlements with taxing authorities — — — Lapse of statute of limitations — (10,250) (68) End of year $ 78,519 $ 62,742 $ 55,221 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Postretirement Medical Expense | The components of net postretirement medical expense for the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Service cost $ 6,505 $ 5,657 $ 4,955 Interest cost 4,063 4,237 4,859 Total postretirement medical expense $ 10,568 $ 9,894 $ 9,814 |
Schedule of Assumed Health Care Cost Trend Rates | Assumed healthcare cost trend rates for the Officer Medical Plan at March 31, 2022 and 2021 were as follows: Pre-65 initial rate 2022 2021 Healthcare cost trend rate assumed for next year 6.30 % 6.55 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2031 2029 Post-65 initial rate 2022 2021 Healthcare cost trend rate assumed for next year 6.45 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2031 2029 |
Schedule of Change in Benefit Obligation | The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows: Fiscal Year Ended March 31, 2022 2021 2020 Benefit obligation, beginning of the year $ 121,518 $ 119,609 $ 120,341 Service cost 6,505 5,657 4,955 Interest cost 4,063 4,237 4,859 Net actuarial gain (13,563) (3,466) (6,761) Benefits paid (5,018) (4,519) (3,785) Benefit obligation, end of the year $ 113,505 $ 121,518 $ 119,609 |
Schedule of Change in Fair Value of Plan Assets | Fiscal Year Ended March 31, Changes in plan assets 2022 2021 2020 Fair value of plan assets, beginning of the year $ — $ — $ — Employer contributions 5,018 4,519 3,785 Benefits paid (5,018) (4,519) (3,785) Fair value of plan assets, end of the year $ — $ — $ — |
Schedule of Expected Future Benefit Payments | The expected future medical benefit payments and related contributions are as follows: For the Fiscal Year Ending March 31, 2023 $ 4,001 2024 $ 4,304 2025 $ 4,546 2026 $ 4,931 2027 $ 5,239 2028 - 2032 $ 31,203 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table shows the changes in accumulated other comprehensive loss, net of tax: Fiscal Year Ended March 31, 2022 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (1,562) $ (28,209) $ (29,771) Other comprehensive income before reclassifications (1) 10,294 15,032 25,326 Amounts reclassified from accumulated other comprehensive loss 79 12,951 13,030 Net current-period other comprehensive income 10,373 27,983 38,356 End of year 8,811 (226) 8,585 (1) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $5.3 million for the fiscal year ended March 31, 2022. Fiscal Year Ended March 31, 2021 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (4,127) $ (41,874) $ (46,001) Other comprehensive income (loss) before reclassifications (2) 2,481 (1,529) 952 Amounts reclassified from accumulated other comprehensive loss 84 15,194 15,278 Net current-period other comprehensive income 2,565 13,665 16,230 End of year $ (1,562) $ (28,209) $ (29,771) (2) Changes in other comprehensive income (loss) before reclassification for derivatives designated as cash flow hedges are recorded net of tax benefits of $0.5 million for the fiscal year ended March 31, 2021. Fiscal Year Ended March 31, 2020 Post-retirement plans Derivatives designated as cash flow hedges Totals Beginning of year $ (9,068) $ (2,122) $ (11,190) Other comprehensive income (loss) before reclassifications (3) 4,860 (41,300) (36,440) Amounts reclassified from accumulated other comprehensive loss 81 1,548 1,629 Net current-period other comprehensive income (loss) 4,941 (39,752) (34,811) End of year $ (4,127) $ (41,874) $ (46,001) |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Dividends Declared | The following table summarizes the cash distributions recognized in the consolidated statement of cash flows: Fiscal Year Ended 2022 2021 2020 Recurring dividends (1) $ 209,057 $ 181,066 $ 146,602 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense Recognized in the Consolidated Statements of Operations | The following table summarizes stock-based compensation expense recognized in the consolidated statements of operations: Fiscal Year Ended March 31, 2022 2021 2020 Cost of revenue $ 36,836 $ 27,682 $ 16,272 General and administrative expenses 32,948 32,162 27,018 Total $ 69,784 $ 59,844 $ 43,290 The following table summarizes the total stock-based compensation expense recognized in the consolidated statements of operations by the following types of equity awards: Fiscal Year Ended March 31, 2022 2021 2020 Equity Incentive Plan Options $ 1,793 $ 2,625 $ 2,741 Restricted Stock and Other Awards 67,991 57,219 40,549 Total $ 69,784 $ 59,844 $ 43,290 |
Schedule of Unrecognized Compensation Cost | Absent the effect of forfeiture or acceleration of stock compensation cost for any departures of employees, the following tables summarize the unrecognized compensation cost, the weighted average period the cost is expected to be amortized, and the estimated annual compensation cost for the future periods indicated below (excludes any future award): Unrecognized Compensation Cost Weighted Average Remaining Period to be Recognized March 31, March 31, March 31, March 31, Equity Incentive Plan Options $ 2,359 $ 3,426 3.2 3.5 Restricted Stock and Other Awards 46,528 39,881 1.7 1.9 Total $ 48,887 $ 43,307 Total Unrecognized Compensation Cost Total 2023 2024 2025 2026 2027 Equity Incentive Plan Options $ 2,359 $ 1,274 $ 681 $ 312 $ 88 $ 4 Restricted Stock and Other Awards 46,528 30,448 12,455 3,238 387 — Total $ 48,887 $ 31,722 $ 13,136 $ 3,550 $ 475 $ 4 |
Schedule of Unvested Restricted Stock Activity | The following table summarizes unvested restricted stock activity for the periods presented: Number of Weighted Unvested Restricted Stock Awards Unvested at March 31, 2021 920,500 $ 65.37 Granted 1,154,622 77.85 Vested 935,485 63.72 Forfeited 75,377 80.33 Unvested at March 31, 2022 1,064,260 $ 79.29 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Measurements | The financial instruments measured at fair value in the accompanying consolidated balance sheets consist of the following: Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long term deferred compensation plan asset (1) 16,512 — — 16,512 Long-term derivative instruments (3) — 4,088 — 4,088 Total Assets $ 16,512 $ 4,088 $ — $ 20,600 Liabilities: Current derivative instruments (3) — 4,324 — 4,324 Long-term derivative instruments (3) — 39 — 39 Long term deferred compensation plan liability (1) 16,512 — — 16,512 Total Liabilities $ 16,512 $ 4,363 $ — $ 20,875 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Total Assets: Long term deferred compensation plan asset (1) $ 14,142 $ — $ — $ 14,142 Total Assets $ 14,142 $ — $ — $ 14,142 Liabilities: Contingent consideration liability (2) $ — $ — $ 1,223 $ 1,223 Current derivative instruments (3) $ — $ 17,163 $ — $ 17,163 Long-term derivative instruments (3) $ — $ 20,999 $ — $ 20,999 Long term deferred compensation plan liability (1) $ 14,142 $ — $ — $ 14,142 Total liabilities $ 14,142 $ 38,162 $ 1,223 $ 53,527 (1) Investments in this category consist of primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our consolidated balance sheets. (2) The Company recognized a contingent consideration liability of $3.6 million in connection with the acquisition of Aquilent in fiscal 2017. As of March 31, 2021, the estimated fair value of the contingent consideration liability was $1.2 million, and was valued using probability-weighted cash flows, which is based on the use of Level 3 fair value measurement inputs. As of March 31, 2022 the relevant statute of limitations pertaining to the contingent liability expired at which point the Company wrote off the existing liability balance. (3) The Company’s interest rate swaps are considered over-the-counter derivatives and fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 11 to the consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges. |
BUSINESS OVERVIEW (Details)
BUSINESS OVERVIEW (Details) | 12 Months Ended |
Mar. 31, 2022employeesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Number of employees | employee | 29,300 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) | 12 Months Ended |
Mar. 31, 2022 | |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets and Goodwill (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge on intangibles | $ 0 | $ 0 | $ 0 |
Goodwill impairment | 0 | 0 | 0 |
Impairment charges | $ 0 | $ 0 | $ 0 |
Programs and contract assets, channel relationships, and other amortizable intangible assets | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 2 years | ||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 12 years | ||
Software | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 1 year | ||
Software | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 5 years |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 8,363,700 | $ 7,858,938 | $ 7,463,841 |
Revenue (as a percent) | 100.00% | 100.00% | 100.00% |
Prime Contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 7,864,273 | $ 7,311,313 | $ 6,884,763 |
Revenue (as a percent) | 94.00% | 93.00% | 92.00% |
Sub-contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 499,427 | $ 547,625 | $ 579,078 |
Revenue (as a percent) | 6.00% | 7.00% | 8.00% |
Global Commercial Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 216,276 | $ 205,834 | $ 266,515 |
Revenue (as a percent) | 3.00% | 3.00% | 4.00% |
Total U.S. government | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 8,147,424 | $ 7,653,104 | $ 7,197,326 |
Revenue (as a percent) | 97.00% | 97.00% | 96.00% |
Total U.S. government | Defense Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,955,473 | $ 3,920,503 | $ 3,596,081 |
Revenue (as a percent) | 47.00% | 49.00% | 47.00% |
Total U.S. government | Intelligence Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,573,037 | $ 1,549,417 | $ 1,580,925 |
Revenue (as a percent) | 19.00% | 20.00% | 22.00% |
Total U.S. government | Civil Clients | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,618,914 | $ 2,183,184 | $ 2,020,320 |
Revenue (as a percent) | 31.00% | 28.00% | 27.00% |
Cost-reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,514,262 | $ 4,419,533 | $ 4,211,592 |
Revenue (as a percent) | 54.00% | 56.00% | 57.00% |
Time-and-materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,017,094 | $ 1,962,999 | $ 1,737,414 |
Revenue (as a percent) | 24.00% | 25.00% | 23.00% |
Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,832,344 | $ 1,476,406 | $ 1,514,835 |
Revenue (as a percent) | 22.00% | 19.00% | 20.00% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue, amount of remaining performance obligation | $ 7,400 | $ 6,700 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Provision (benefit) for credit losses | (1.5) | (2.6) | $ (6.4) |
Contract with customer, liability, revenue recognized | $ 14.9 | $ 24.5 | $ 18.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation (as per percent) | 70.00% | ||
Remaining performance obligation, expected timing, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation (as per percent) | 85.00% | ||
Remaining performance obligation, expected timing, period | 24 months |
REVENUE - Summary of Contract B
REVENUE - Summary of Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Contract with Customer, Asset, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable–billed | $ 465,322 | $ 375,383 |
Accounts receivable–unbilled (contract assets) | 1,157,667 | 1,037,968 |
Allowance for credit losses | 0 | (1,457) |
Accounts receivable, net | 1,622,989 | 1,411,894 |
Accounts receivable–unbilled (contract assets) | 64,339 | 63,869 |
Total accounts receivable, net | 1,687,328 | 1,475,763 |
Contract with Customer, Liability [Abstract] | ||
Advance payments, billings in excess of costs incurred and deferred revenue (contract liabilities) | $ 26,747 | $ 15,906 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Earnings for basic computations | $ 463,626 | $ 605,437 | $ 481,085 |
Weighted-average of common stock shares outstanding for basic computations (in shares) | 134,134,034 | 137,722,589 | 140,059,494 |
Earnings for diluted computations | $ 463,635 | $ 605,455 | $ 481,092 |
Dilutive stock options and restricted stock (in shares) | 716,774 | 980,631 | 1,178,641 |
Weighted-average of common stock shares outstanding for diluted computations (in shares) | 134,850,808 | 138,703,220 | 141,238,135 |
Earnings per share of common stock | |||
Basic (in dollars per share) | $ 3.46 | $ 4.40 | $ 3.43 |
Diluted (in dollars per share) | $ 3.44 | $ 4.37 | $ 3.41 |
Cash dividends paid | $ 209,057 | $ 181,066 | $ 146,602 |
Restricted Stock | |||
Earnings per share of common stock | |||
Unvested shares participating in the payment of the Company's dividends declared (in shares) | 900,000 | 800,000 | 400,000 |
Cash dividends paid | $ 1,400 | $ 1,000 | $ 700 |
Undistributed earnings (loss) allocated to participating securities, basic | 1,700 | 2,500 | 900 |
Undistributed earnings (loss) allocated to participating securities, diluted | $ 1,700 | $ 2,500 | $ 900 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) - USD ($) $ in Thousands | Sep. 10, 2021 | Sep. 09, 2021 | Jun. 11, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,021,931 | $ 1,581,160 | |||
Accounts receivable held-for-sale | 23,600 | ||||
Other assets held-for-sale | 700 | ||||
Deferred revenue held-for-sale | 1,700 | ||||
Accounts payable held-for-sale | 200 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Tracepoint LLC | |||||
Business Acquisition [Line Items] | |||||
Equity method investment, ownership (as a percent) | 40.00% | ||||
Gains associated with equity method investment activities | $ 5,700 | ||||
Tracepoint LLC | |||||
Business Acquisition [Line Items] | |||||
Ownership interest acquired (as a percent) | 60.00% | ||||
Cash consideration (gross of cash acquired and including net adjustments) | $ 120,300 | ||||
Intangible assets | $ 90,500 | ||||
Useful life (in years) | 10 years | ||||
Goodwill | $ 94,300 | ||||
Liberty | |||||
Business Acquisition [Line Items] | |||||
Cash consideration (gross of cash acquired and including net adjustments) | $ 669,100 | ||||
Intangible assets | $ 309,000 | ||||
Useful life (in years) | 12 years | ||||
Goodwill | $ 346,500 | ||||
EverWatch | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 440,000 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Purchase price allocation: | ||
Goodwill | $ 2,021,931 | $ 1,581,160 |
Tracepoint LLC and Liberty IT Solutions LLC | ||
Business Acquisition [Line Items] | ||
Cash consideration (gross of cash acquired and including net adjustments) | 789,429 | |
Fair value of non-controlling interest | 80,063 | |
Total purchase consideration | 869,492 | |
Purchase price allocation: | ||
Cash | 9,096 | |
Current assets | 57,519 | |
Operating lease right-of-use asset | 2,532 | |
Other long-term assets | 2,825 | |
Intangible assets | 399,500 | |
Current liabilities | (40,217) | |
Operating lease liabilities-current | (1,017) | |
Operating lease liabilities-long term | (1,516) | |
Total fair value of identifiable net assets acquired | 428,722 | |
Goodwill | $ 440,770 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,021,931 | $ 1,581,160 | |
Goodwill allocated to assets held-for-sale | 10,000 | ||
Amortization of intangible assets | $ 76,200 | $ 19,300 | $ 22,300 |
Programs and contract assets, channel relationships, and other amortizable intangible assets | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 2 years | ||
Programs and contract assets, channel relationships, and other amortizable intangible assets | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 12 years | ||
Software | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 1 year | ||
Software | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 5 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | $ 602,692 | $ 197,372 |
Accumulated Amortization | 146,210 | 80,444 |
Net Carrying Value | 456,482 | 116,928 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets, gross | 792,892 | 387,572 |
Net Carrying Value | 646,682 | 307,128 |
Trade name | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Unamortizable intangible assets | 190,200 | 190,200 |
Programs and contract assets, channel relationships, and other amortizable intangible assets | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | 483,294 | 82,400 |
Accumulated Amortization | 101,584 | 50,503 |
Net Carrying Value | 381,710 | 31,897 |
Software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | 119,398 | 114,972 |
Accumulated Amortization | 44,626 | 29,941 |
Net Carrying Value | $ 74,772 | $ 85,031 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 85,776 | |
2024 | 71,149 | |
2025 | 60,811 | |
2026 | 53,552 | |
2027 | 43,585 | |
Thereafter | 141,609 | |
Net Carrying Value | $ 456,482 | $ 116,928 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 456,888 | $ 440,133 | |
Less: Accumulated depreciation and amortization | (254,659) | (235,491) | |
Property and equipment, net | 202,229 | 204,642 | |
Depreciation and amortization expense related to property and equipment | 69,500 | 65,000 | $ 58,800 |
Reduction to gross cost and accumulated depreciation for zero net book value assets | 55,000 | 100,300 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 117,250 | 117,430 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 104,296 | 97,571 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 235,342 | $ 225,132 |
ACCOUNTS PAYABLE AND OTHER AC_3
ACCOUNTS PAYABLE AND OTHER ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Payables and Accruals [Abstract] | ||
Vendor payables | $ 539,524 | $ 371,744 |
Accrued expenses | 363,092 | 295,227 |
Total accounts payable and other accrued expenses | 902,616 | 666,971 |
Unfavorable Regulatory Action | ||
Loss Contingencies [Line Items] | ||
Provision for claimed indirect costs | $ 290,400 | $ 263,200 |
ACCRUED COMPENSATION AND BENE_3
ACCRUED COMPENSATION AND BENEFITS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Compensation Related Costs [Abstract] | ||
Bonus | $ 96,040 | $ 130,565 |
Retirement | 48,169 | 44,474 |
Vacation | 206,199 | 202,100 |
Other | 88,226 | 48,476 |
Total accrued compensation and benefits | $ 438,634 | $ 425,615 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 23, 2021 | Mar. 31, 2021 |
Long-term Debt, Current and Noncurrent [Abstract] | |||
Less: Unamortized debt issuance costs and discount on debt | $ (21,647) | $ (17,380) | |
Long-term debt | 2,800,072 | 2,356,596 | |
Less: Current portion of long-term debt | (68,379) | (77,865) | |
Long-term debt, net of current portion | 2,731,693 | $ 2,278,731 | |
Term Loan A | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Total | 1,241,398 | ||
Term Loan B | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Total | $ 380,321 | ||
Revolver | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Interest rate on long term debt (as a percent) | 0.00% | 0.00% | |
Total | $ 0 | $ 0 | |
Secured Debt | Term Loan A | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Interest rate on long term debt (as a percent) | 1.71% | 1.61% | |
Total | $ 1,241,398 | $ 1,289,800 | $ 1,289,764 |
Secured Debt | Term Loan B | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Interest rate on long term debt (as a percent) | 2.21% | 1.86% | |
Total | $ 380,321 | $ 384,212 | |
Senior Notes | Senior Notes due 2028 | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Interest rate on long term debt (as a percent) | 3.88% | 3.88% | |
Total | $ 700,000 | $ 700,000 | |
Senior Notes | Senior Notes due 2029 | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Interest rate on long term debt (as a percent) | 4.00% | 0.00% | |
Total | $ 500,000 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | Jun. 17, 2021 | Aug. 24, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 24, 2021 | Jun. 23, 2021 |
Debt Instrument [Line Items] | ||||||
Maximum expanded loan facility | $ 909,000,000 | |||||
Percentage of consolidated EBITDA required | 100.00% | |||||
Maximum net secured leverage ratio | 350.00% | |||||
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount of interest rate swap | $ 700,000,000 | |||||
London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Overnight Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.50% | |||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.00% | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | |||
Term Loan A | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | 1,241,398,000 | |||||
Interest paid | $ 19,600,000 | $ 23,600,000 | ||||
Term Loan A | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.125% | |||||
Term Loan A | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 2.00% | |||||
Term Loan A | Alternative Base Rate (ABR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.125% | |||||
Term Loan A | Alternative Base Rate (ABR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Term Loan A | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 1,241,398,000 | 1,289,764,000 | 1,289,800,000 | |||
Quarterly periodic payment percentage, principal | 1.25% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 1,000,000,000 | $ 500,000,000 | ||||
Revolving credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||
Revolving Credit Facility | Secured Debt | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.175% | |||||
Revolving Credit Facility | Secured Debt | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.35% | |||||
Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 380,321,000 | |||||
Interest paid | $ 7,200,000 | 7,800,000 | ||||
Term Loan B | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.75% | |||||
Term Loan B | Alternative Base Rate (ABR) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.75% | |||||
Term Loan B | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 380,321,000 | 384,212,000 | ||||
Quarterly periodic payment percentage, principal | 0.25% | |||||
Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 500,000,000 | 0 | ||||
Face amount of debt | $ 500,000,000 | $ 700,000,000 | ||||
Stated interest rate | 4.00% | 3.875% | ||||
Redemption price (as a percent) | 104.00% | |||||
Percentage of principal amount outstanding (as a percent) | 50.00% | |||||
Redemption of principal, redemption period | 180 days | |||||
Debt issuance costs | $ 6,500,000 | |||||
Senior Notes due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt outstanding | $ 700,000,000 | $ 700,000,000 | ||||
Redemption price (as a percent) | 103.88% | |||||
Percentage of principal amount outstanding (as a percent) | 50.00% | |||||
Redemption of principal, redemption period | 180 days | |||||
Debt issuance costs | $ 9,200,000 | |||||
Period One | Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 100.00% | |||||
Redemption price (as a percent) | 40.00% | |||||
Period One | Senior Notes due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 100.00% | |||||
Redemption price (as a percent) | 40.00% | |||||
Period Two | Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 102.00% | |||||
Period Two | Senior Notes due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 101.94% | |||||
Period Three | Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 101.00% | |||||
Period Three | Senior Notes due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 100.97% | |||||
Period Four | Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 100.00% | |||||
Period Four | Senior Notes due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of principal amount (as a percent) | 100.00% |
DEBT - Schedule of Future Debt
DEBT - Schedule of Future Debt Principal Repayments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Interest on indebtedness | ||
Total | $ 446,697 | |
2023 | 76,677 | |
2024 | 75,550 | |
2025 | 74,270 | |
2026 | 73,067 | |
2027 | 56,445 | |
Thereafter | 90,688 | |
Total | ||
Total | 3,268,416 | |
2023 | 145,056 | |
2024 | 143,929 | |
2025 | 142,649 | |
2026 | 141,446 | |
2027 | 1,404,648 | |
Thereafter | 1,290,688 | |
Term Loan A | ||
Long-term debt, gross | ||
Total | 1,241,398 | |
2023 | 64,488 | |
2024 | 64,488 | |
2025 | 64,488 | |
2026 | 64,488 | |
2027 | 983,446 | |
Thereafter | 0 | |
Term Loan B | ||
Long-term debt, gross | ||
Total | 380,321 | |
2023 | 3,891 | |
2024 | 3,891 | |
2025 | 3,891 | |
2026 | 3,891 | |
2027 | 364,757 | |
Thereafter | 0 | |
Senior Notes 2028 | Senior Notes | ||
Long-term debt, gross | ||
Total | 700,000 | $ 700,000 |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 700,000 | |
Senior Notes 2029 | Senior Notes | ||
Long-term debt, gross | ||
Total | 500,000 | $ 0 |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | $ 500,000 |
DEBT - Schedule of Detail of In
DEBT - Schedule of Detail of Interest Expense (Details) - USD ($) $ in Thousands | Jul. 31, 2008 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||||
Deferred payment obligation, accrued interest payment | $ 0 | $ 0 | $ 5,740 | |
Amortization of debt issuance costs | 4,619 | 4,396 | 4,688 | |
Interest Swap Expense | 17,535 | 20,558 | 2,094 | |
Other | 494 | 713 | 589 | |
Total Interest Expense | 92,352 | 81,270 | 96,960 | |
Deferred payment obligation, payment period | 8 years 6 months | |||
Secured Debt | Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Interest expense, debt | 19,570 | 23,541 | 50,080 | |
Secured Debt | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Interest expense, debt | 7,207 | 7,787 | 15,739 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest expense, debt | 25 | 799 | 92 | |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest expense, debt | $ 42,902 | $ 23,476 | $ 17,938 |
DEBT - Schedule of Debt Princip
DEBT - Schedule of Debt Principal Repayments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Term Loan A | |
Debt Instrument [Line Items] | |
Total | $ 1,241,398 |
2020 | 64,488 |
2021 | 64,488 |
2022 | 64,488 |
2023 | 64,488 |
2024 | 983,446 |
Thereafter | 0 |
Term Loan B | |
Debt Instrument [Line Items] | |
Total | 380,321 |
2020 | 3,891 |
2021 | 3,891 |
2022 | 3,891 |
2023 | 3,891 |
2024 | 364,757 |
Thereafter | $ 0 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Estimated fair value of derivative assets | $ 4,100,000 | |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Estimated fair value of derivative liabilities | 4,300,000 | $ 17,200,000 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Estimated fair value of derivative liabilities | 39,000 | $ 21,000,000 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of interest rate swap | 700,000,000 | |
Estimated amounts to be reclassified over 12 months | $ 4,400,000 |
DERIVATIVES - Schedule of Effec
DERIVATIVES - Schedule of Effect of Derivatives on Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives designated as cash flow hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification from AOCI, tax | $ (4,600) | $ (5,400) | $ (500) |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 20,352 | (2,071) | (55,871) |
Amount of Loss Reclassified from AOCI into Income | $ (17,535) | $ (20,558) | $ (2,094) |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 69,831 | $ 68,702 | $ 71,067 |
Short-term lease cost | 585 | 3,780 | 9,657 |
Variable lease cost | 11,641 | 12,843 | 11,657 |
Total operating lease costs | $ 82,057 | $ 85,325 | $ 92,381 |
LEASES - Future Minimum Obligat
LEASES - Future Minimum Obligations for Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 64,528 |
2024 | 74,462 |
2025 | 70,907 |
2026 | 52,065 |
2027 | 30,400 |
Thereafter | 45,537 |
Total future lease payments | 337,899 |
Less: imputed interest | (38,495) |
Total lease liabilities | $ 299,404 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 76,100 | $ 69,320 | $ 53,741 |
Operating lease liabilities arising from obtaining ROU asset | $ 41,206 | $ 52,454 | $ 26,378 |
Weighted average remaining lease term (in years) | 5 years | 5 years 6 months | |
Weighted average discount rate | 4.50% | 4.60% |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current | |||
U.S. Federal | $ 232,844 | $ (227,309) | $ (2,638) |
State and local | 26,333 | 39,542 | 18,410 |
Foreign | 8,486 | 9,250 | 15,625 |
Total current | 267,663 | (178,517) | 31,397 |
Deferred | |||
U.S. Federal | (146,581) | 245,624 | 59,856 |
State and local | 11,781 | (13,626) | 5,578 |
Foreign | 4,603 | 0 | 0 |
Total deferred | (130,197) | 231,998 | 65,434 |
Total | $ 137,466 | $ 53,481 | $ 96,831 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at U.S. federal statutory rate | $ 126,981 | $ 139,112 | $ 121,681 |
Increases (reductions) resulting from: | |||
State and local income taxes, net of federal tax | 28,762 | 17,586 | 20,031 |
Foreign income taxes, net of federal tax | 9,243 | 6,679 | 12,344 |
Meals and entertainment | 343 | 653 | 1,761 |
Re-measurement of current year losses under CARES Act | 0 | (76,767) | 0 |
Excess tax benefits from stock-based compensation | (4,227) | (8,556) | (10,265) |
Research and development and other federal credits | (34,080) | (30,313) | (90,898) |
Executive compensation -162(m) | 3,614 | 3,813 | 2,346 |
Foreign-Derived Intangible Income (FDII) | (9,115) | (4,536) | (4,915) |
Changes in uncertain tax positions | 16,938 | 6,793 | 44,621 |
Other | (993) | (983) | 125 |
Total | $ 137,466 | $ 53,481 | $ 96,831 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) from remeasurement of net operating losses, COVID-19 | $ 76,800 | ||
Net operating losses | $ 44,100 | 98,500 | |
Reserves for uncertain tax positions | 79,900 | 62,900 | $ 56,100 |
Unrecognized tax benefits that would impact effective tax rate | 78,500 | 62,700 | 55,200 |
Unrecognized tax benefits that decrease deferred tax assets | 3,100 | 11,100 | |
Increase in reserves for uncertain tax positions | 13,530 | 12,753 | 10,970 |
Accrued interest and penalties | 1,700 | 300 | 500 |
Income tax reserve, accrued penalties and interest | 2,900 | $ 1,200 | $ 900 |
Penalties and interest accrued | 4,900 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Potential future tax expense that would arise | 40,200 | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Potential future tax expense that would arise | 55,800 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses | 1,400 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses | 36,600 | ||
Tax Year 2022 and Thereafter | State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses | 89,600 | ||
Incremental state deferred tax asset | 11,800 | ||
Tax Years 2013-2015 | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax assessments | 11,700 | ||
Penalties accrued | 8,600 | ||
Tax Years 2014 and 2015 | |||
Operating Loss Carryforwards [Line Items] | |||
Penalties accrued | $ 3,700 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Receivable and Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Current income tax receivable | $ 47,142 | $ 175,541 |
Long term income tax receivable | 341,738 | 333,188 |
Current income tax payable | $ 34,324 | $ 30,694 |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred income tax assets: | ||
Accrued expenses | $ 80,344 | $ 78,005 |
Deferred compensation | 56,361 | 52,191 |
Stock-based compensation | 9,783 | 5,724 |
Pension and postretirement benefits | 30,797 | 32,881 |
Net operating loss carryforwards | 44,118 | 98,471 |
Extended disability benefits | 2,426 | 2,838 |
Interest rate swaps | 75 | 9,955 |
Federal tax credits | 0 | 12,582 |
State tax credits | 24,268 | 27,243 |
Operating lease liabilities | 82,799 | 86,046 |
Other | 0 | 3,378 |
Total gross deferred income tax assets | 330,971 | 409,314 |
Less: Valuation allowance | (8,715) | (6,165) |
Total net deferred income tax assets | 322,256 | 403,149 |
Deferred income tax liabilities: | ||
Unbilled receivables | (209,753) | (245,809) |
Intangible assets | (56,657) | (69,519) |
Debt issuance costs | (1,435) | (1,488) |
Property and equipment | (198,940) | (336,321) |
Operating lease right-of-use assets | (59,401) | (62,442) |
Internally developed software | 0 | (20,309) |
Other | (3,345) | 0 |
Total deferred income tax liabilities | (529,531) | (735,888) |
Net deferred income tax liabilities | $ (207,275) | $ (332,739) |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Potential Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of the beginning and ending amount of potential tax benefits | |||
Beginning of year | $ 62,742 | $ 55,221 | $ 11,083 |
Increases in prior year position | 2,620 | 5,018 | 34,001 |
Increases in current year position | 13,530 | 12,753 | 10,970 |
Decreases in prior year position | (373) | 0 | (765) |
Settlements with taxing authorities | 0 | 0 | 0 |
Lapse of statute of limitations | 0 | (10,250) | (68) |
End of year | $ 78,519 | $ 62,742 | $ 55,221 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percentage of match | 6.00% | ||
Employees’ capital accumulation plan, total expense recognized | $ 176.8 | $ 166.3 | $ 151 |
Employees’ capital accumulation plan, company-paid contributions | 171.6 | 163 | $ 146.5 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term disability obligation | $ 9.3 | $ 10.9 | |
Officer Medical Plan | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average discount rate for benefit obligation (as a percent) | 3.75% | 3.40% | 3.60% |
Defined benefit plan, funded (unfunded) status of plan | $ (113.5) | $ (121.5) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Postretirement Medical Expense (Details) - Officer Medical Plan - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6,505 | $ 5,657 | $ 4,955 |
Interest cost | 4,063 | 4,237 | 4,859 |
Total postretirement medical expense | $ 10,568 | $ 9,894 | $ 9,814 |
EMPLOYEE BENEFIT PLANS - Health
EMPLOYEE BENEFIT PLANS - Healthcare Cost Trend Rates (Details) - Officer Medical Plan - Other Postretirement Benefits Plan | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year, Pre 65 | 6.30% | 6.55% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate), Pre 65 | 4.50% | 4.50% |
Health care cost trend rate assumed for next year, Post 65 | 6.45% | 6.75% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate), Post 65 | 4.50% | 4.50% |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation and Change in Plan Assets (Details) - Officer Medical Plan - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of the year | $ 121,518 | $ 119,609 | $ 120,341 |
Service cost | 6,505 | 5,657 | 4,955 |
Interest cost | 4,063 | 4,237 | 4,859 |
Net actuarial gain | (13,563) | (3,466) | (6,761) |
Benefits paid | (5,018) | (4,519) | (3,785) |
Benefit obligation, end of the year | 113,505 | 121,518 | 119,609 |
Changes in plan assets | |||
Fair value of plan assets, beginning of the year | 0 | 0 | 0 |
Employer contributions | 5,018 | 4,519 | 3,785 |
Benefits paid | (5,018) | (4,519) | (3,785) |
Fair value of plan assets, end of the year | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Future
EMPLOYEE BENEFIT PLANS - Future Benefit Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 4,001 |
2024 | 4,304 |
2025 | 4,546 |
2026 | 4,931 |
2027 | 5,239 |
2028 - 2032 | $ 31,203 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of year | $ 1,071,176 | ||
Other comprehensive income (loss) before reclassifications | 25,326 | $ 952 | $ (36,440) |
Amounts reclassified from accumulated other comprehensive loss | 13,030 | 15,278 | 1,629 |
Total other comprehensive (loss) income, net of tax | 38,356 | 16,230 | (34,811) |
End of year | 1,046,070 | 1,071,176 | |
Tax expense (benefit) | (5,300) | (500) | 14,600 |
Post-retirement plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of year | (1,562) | (4,127) | (9,068) |
Other comprehensive income (loss) before reclassifications | 10,294 | 2,481 | 4,860 |
Amounts reclassified from accumulated other comprehensive loss | 79 | 84 | 81 |
Total other comprehensive (loss) income, net of tax | 10,373 | 2,565 | 4,941 |
End of year | 8,811 | (1,562) | (4,127) |
Derivatives designated as cash flow hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of year | (28,209) | (41,874) | (2,122) |
Other comprehensive income (loss) before reclassifications | 15,032 | (1,529) | (41,300) |
Amounts reclassified from accumulated other comprehensive loss | 12,951 | 15,194 | 1,548 |
Total other comprehensive (loss) income, net of tax | 27,983 | 13,665 | (39,752) |
End of year | (226) | (28,209) | (41,874) |
Totals | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of year | (29,771) | (46,001) | (11,190) |
End of year | $ 8,585 | $ (29,771) | $ (46,001) |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2022USD ($)voteshares | Mar. 31, 2021USD ($)shares | Dec. 21, 2011USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock votes per share | vote | 1 | ||
Share repurchase program, remaining authorized repurchase amount | $ 651.6 | ||
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share repurchase program, remaining authorized repurchase amount | $ 2,160 | ||
Repurchase of common stock (in shares) | shares | 4.7 | 3.8 | |
Share repurchase program, amount authorized | $ 389.9 | $ 293.4 |
STOCKHOLDERS_ EQUITY - Summary
STOCKHOLDERS’ EQUITY - Summary of Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | |||
Recurring dividends | $ 209,057 | $ 181,066 | $ 146,602 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 69,784 | $ 59,844 | $ 43,290 |
EIP | Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,793 | 2,625 | 2,741 |
Annual Incentive Plan | Restricted Stock | Class A Common Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 67,991 | 57,219 | 40,549 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 36,836 | 27,682 | 16,272 |
General and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 32,948 | $ 32,162 | $ 27,018 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Unrecognized Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 48,887 | $ 43,307 |
Unrecognized compensation cost, amortization period | 4 years 8 months 12 days | |
Total | $ 48,887 | 43,307 |
2023 | 31,722 | |
2024 | 13,136 | |
2025 | 3,550 | |
2026 | 475 | |
2027 | 4 | |
EIP | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 2,359 | $ 3,426 |
Unrecognized compensation cost, amortization period | 3 years 2 months 12 days | 3 years 6 months |
Total | $ 2,359 | $ 3,426 |
2023 | 1,274 | |
2024 | 681 | |
2025 | 312 | |
2026 | 88 | |
2027 | 4 | |
Annual Incentive Plan | Restricted Stock | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to unvested stock-based compensation agreements | $ 46,528 | $ 39,881 |
Unrecognized compensation cost, amortization period | 1 year 8 months 12 days | 1 year 10 months 24 days |
Total | $ 46,528 | $ 39,881 |
2023 | 30,448 | |
2024 | 12,455 | |
2025 | 3,238 | |
2026 | 387 | |
2027 | $ 0 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2010 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock | $ 419,291 | $ 318,068 | $ 186,645 | |
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock (in shares) | 4,700,000 | 3,800,000 | ||
EIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 100,000 | 300,000 | ||
Grant date fair value of options granted during period | $ 1,600 | $ 3,600 | ||
Fair value of options vested | 2,400 | 2,400 | ||
Intrinsic value of options exercised | $ 11,400 | $ 28,900 | ||
Stock options outstanding, unvested (in shares) | 300,000 | 500,000 | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ 12.73 | $ 11.64 | ||
Stock options outstanding (in shares) | 1,300,000 | 1,400,000 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 49.34 | $ 44.86 | ||
Restricted stock granted (in shares) | 1,154,622 | |||
Repurchase of common stock (in shares) | 300,000 | |||
Repurchase of common stock | $ 29,300 | |||
EIP | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for future grant (in shares) | 8,600,000 | 9,300,000 | ||
Stock option expiration period | 10 years | |||
Stock option vesting period | 5 years | |||
EIP | Restricted Stock | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of all awards issued | $ 59,600 | $ 49,800 | ||
EIP | Restricted Stock Units (RSUs) | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 1,100,000 | |||
Aggregate fair value of all awards issued | $ 89,900 | |||
Annual Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Officer | Annual Incentive Plan | Restricted Stock | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 3 years | |||
Stock issued upon conversion (in shares) | 1 | |||
Director | EIP | Restricted Stock | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period | 1 year | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date share price (in dollars per share) | $ 41.65 | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date share price (in dollars per share) | $ 89.78 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Activity (Details) - EIP | 12 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Unvested, beginning balance (in shares) | shares | 920,500 |
Granted (in shares) | shares | 1,154,622 |
Vested (in shares) | shares | 935,485 |
Forfeited (in shares) | shares | 75,377 |
Unvested, ending balance (in shares) | shares | 1,064,260 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 65.37 |
Granted (in dollars per share) | $ / shares | 77.85 |
Vested (in dollars per share) | $ / shares | 63.72 |
Forfeited (in dollars per share) | $ / shares | 80.33 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 79.29 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock purchase Plan (Details) - shares shares in Millions | 12 Months Ended | 125 Months Ended |
Mar. 31, 2022 | Mar. 31, 2021 | |
EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount for shares repurchased (as a percent) | 5.00% | |
Shares authorized to be repurchased (in shares) | 10 | |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock issued during period, Shares, employee stock purchase plans | 0.3 | 3.2 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2017 |
Assets: | |||
Long-term deferred compensation costs | $ 16,512 | $ 14,142 | |
Long-term derivative instruments | 4,088 | ||
Total Assets | 20,600 | 14,142 | |
Liabilities: | |||
Contingent consideration liability | 1,223 | ||
Current derivative instruments | 4,324 | 17,163 | |
Long-term derivative instruments | 39 | 20,999 | |
Long-term deferred compensation costs | 16,512 | 14,142 | |
Total Liabilities | 20,875 | 53,527 | |
Level 1 | |||
Assets: | |||
Long-term deferred compensation costs | 16,512 | 14,142 | |
Long-term derivative instruments | 0 | ||
Total Assets | 16,512 | 14,142 | |
Liabilities: | |||
Contingent consideration liability | 0 | ||
Current derivative instruments | 0 | 0 | |
Long-term derivative instruments | 0 | 0 | |
Long-term deferred compensation costs | 16,512 | 14,142 | |
Total Liabilities | 16,512 | 14,142 | |
Level 2 | |||
Assets: | |||
Long-term deferred compensation costs | 0 | 0 | |
Long-term derivative instruments | 4,088 | ||
Total Assets | 4,088 | 0 | |
Liabilities: | |||
Contingent consideration liability | 0 | ||
Current derivative instruments | 4,324 | 17,163 | |
Long-term derivative instruments | 39 | 20,999 | |
Long-term deferred compensation costs | 0 | 0 | |
Total Liabilities | 4,363 | 38,162 | |
Level 3 | |||
Assets: | |||
Long-term deferred compensation costs | 0 | 0 | |
Long-term derivative instruments | 0 | ||
Total Assets | 0 | 0 | |
Liabilities: | |||
Contingent consideration liability | 1,223 | ||
Current derivative instruments | 0 | 0 | |
Long-term derivative instruments | 0 | 0 | |
Long-term deferred compensation costs | 0 | 0 | |
Total Liabilities | $ 0 | 1,223 | |
Other Noncurrent Liabilities | Level 3 | |||
Liabilities: | |||
Contingent consideration liability | $ 1,200 | $ 3,600 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - Affiliated Entity - Services Performed Under Subcontractor $ in Millions | 12 Months Ended | |||
Mar. 31, 2022USD ($)director | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Aug. 31, 2021director | |
Related Party Transaction [Line Items] | ||||
Number of directors | director | 2 | 2 | ||
Amount of related party transaction | $ | $ 70 | $ 85.9 | $ 79.7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Contracts with U.S. government agencies or other U.S. government contractors | Revenue Benchmark | Total U.S. government | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 97.00% | 97.00% | 96.00% |
Unfavorable Regulatory Action | |||
Loss Contingencies [Line Items] | |||
Liability for reductions and/or penalties from U.S Government audits | $ 290.4 | $ 263.2 | |
Financial Standby Letter of Credit | |||
Concentration Risk [Line Items] | |||
Guarantor obligations, carrying value | 8.4 | 9.8 | |
Guarantor obligations, reduction to available borrowings | 1 | 0.9 | |
Guarantor obligations, facility | 20 | ||
Guarantor obligations, available amount | $ 12.6 | $ 11.1 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) | 12 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 20, 2022$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends declared per share (in dollars per share) | $ 0.43 |