Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2018 | Jan. 22, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CACI INTERNATIONAL INC /DE/ | |
Entity Central Index Key | 16,058 | |
Trading Symbol | caci | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 24,862,624 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,181,641 | $ 1,087,860 | $ 2,347,505 | $ 2,173,674 |
Costs of revenue: | ||||
Direct costs | 790,849 | 727,160 | 1,573,609 | 1,466,838 |
Indirect costs and selling expenses | 269,677 | 254,180 | 534,434 | 515,424 |
Depreciation and amortization | 18,852 | 18,258 | 37,599 | 35,846 |
Total costs of revenue | 1,079,378 | 999,598 | 2,145,642 | 2,018,108 |
Income from operations | 102,263 | 88,262 | 201,863 | 155,566 |
Interest expense and other, net | 9,421 | 10,956 | 18,307 | 22,203 |
Income before income taxes | 92,842 | 77,306 | 183,556 | 133,363 |
Income tax expense (benefit) | 24,246 | (65,489) | 36,127 | (51,478) |
Net income | $ 68,596 | $ 142,795 | $ 147,429 | $ 184,841 |
Basic earnings per share | $ 2.76 | $ 5.80 | $ 5.95 | $ 7.53 |
Diluted earnings per share | $ 2.71 | $ 5.66 | $ 5.81 | $ 7.33 |
Weighted-average basic shares outstanding | 24,856 | 24,622 | 24,796 | 24,555 |
Weighted-average diluted shares outstanding | 25,338 | 25,211 | 25,381 | 25,228 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 68,596 | $ 142,795 | $ 147,429 | $ 184,841 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (3,436) | 1,191 | (5,431) | 5,554 |
Change in fair value of interest rate swap agreements, net of tax | (3,778) | 2,613 | (3,561) | 3,121 |
Other comprehensive income (loss), net of tax | (7,214) | 3,804 | (8,992) | 8,675 |
Comprehensive income | $ 61,382 | $ 146,599 | $ 138,437 | $ 193,516 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 70,728 | $ 66,194 | |
Accounts receivable, net | 1,016,968 | 806,871 | |
Prepaid expenses and other current assets | 69,717 | 58,126 | |
Total current assets | 1,157,413 | 931,191 | |
Goodwill | 2,659,749 | 2,620,835 | |
Intangible assets, net | 230,556 | [1] | 241,755 |
Property and equipment, net | 107,125 | 101,140 | |
Supplemental retirement savings plan assets | 88,037 | 91,490 | |
Accounts receivable, long-term | 8,741 | 8,620 | |
Other long-term assets | 38,997 | 39,175 | |
Total assets | 4,290,618 | 4,034,206 | |
Current liabilities: | |||
Current portion of long-term debt | 46,920 | 46,920 | |
Accounts payable | 197,225 | 82,017 | |
Accrued compensation and benefits | 232,550 | 259,442 | |
Other accrued expenses and current liabilities | 160,361 | 150,602 | |
Total current liabilities | 637,056 | 538,981 | |
Long-term debt, net of current portion | 1,008,116 | 1,015,420 | |
Supplemental retirement savings plan obligations, net of current portion | 88,736 | 86,851 | |
Deferred income taxes | 215,451 | 200,880 | |
Other long-term liabilities | 84,526 | 85,187 | |
Total liabilities | 2,033,885 | 1,927,319 | |
COMMITMENTS AND CONTINGENCIES | |||
Shareholders’ equity: | |||
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding | |||
Common stock $0.10 par value, 80,000 shares authorized; 42,296 shares issued and 24,862 outstanding at December 31, 2018 and 42,139 shares issued and 24,704 outstanding at June 30, 2018 | 4,230 | 4,214 | |
Additional paid-in capital | 564,586 | 570,964 | |
Retained earnings | 2,291,989 | 2,126,790 | |
Accumulated other comprehensive loss | (28,022) | (19,030) | |
Treasury stock, at cost (17,434 and 17,434 shares, respectively) | (576,185) | (576,186) | |
Total CACI shareholders’ equity | 2,256,598 | 2,106,752 | |
Noncontrolling interest | 135 | 135 | |
Total shareholders’ equity | 2,256,733 | 2,106,887 | |
Total liabilities and shareholders’ equity | $ 4,290,618 | $ 4,034,206 | |
[1] | During the six months ended December 31, 2018, the Company removed $0.2 million in fully amortized intangible assets. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 42,296,000 | 42,139,000 |
Common stock, shares outstanding | 24,862,000 | 24,704,000 |
Treasury stock, shares at cost | 17,434,000 | 17,434,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 147,429 | $ 184,841 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,599 | 35,846 |
Amortization of deferred financing costs | 1,156 | 2,212 |
Stock-based compensation expense | 12,047 | 12,389 |
Deferred income taxes | 9,123 | (83,212) |
Changes in operating assets and liabilities, net of effect of business acquisitions: | ||
Accounts receivable, net | (136,177) | 7,367 |
Prepaid expenses and other assets | (2,739) | (13,774) |
Accounts payable and other accrued expenses | 110,007 | 15,190 |
Accrued compensation and benefits | (27,116) | (11,126) |
Income taxes payable and receivable | (10,781) | (3,796) |
Long-term liabilities | (1,008) | 6,157 |
Net cash provided by operating activities | 139,540 | 152,094 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (17,813) | (22,013) |
Cash paid for business acquisitions, net of cash acquired | (91,151) | (45,565) |
Other | 1,876 | 3,484 |
Net cash used in investing activities | (107,088) | (64,094) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings under bank credit facilities | 833,500 | 256,500 |
Principal payments made under bank credit facilities | (841,960) | (338,483) |
Payment of contingent consideration | (616) | (3,630) |
Proceeds from employee stock purchase plans | 2,827 | 2,459 |
Repurchases of common stock | (2,756) | (2,463) |
Payment of taxes for equity transactions | (18,039) | (12,656) |
Net cash used in financing activities | (27,044) | (98,273) |
Effect of exchange rate changes on cash and cash equivalents | (874) | 1,062 |
Net increase (decrease) in cash and cash equivalents | 4,534 | (9,211) |
Cash and cash equivalents, beginning of period | 66,194 | 65,539 |
Cash and cash equivalents, end of period | 70,728 | 56,328 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for income taxes, net of refunds | 39,975 | 35,264 |
Cash paid during the period for interest | 18,830 | 20,505 |
Non-cash financing and investing activities: | ||
Landlord sponsored tenant improvement | 3,518 | |
Accrued capital expenditures | $ 1,377 | $ 3,316 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations, comprehensive income and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated in consolidation. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt outstanding as of December 31, 2018 under its bank credit facility approximates its carrying value. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data of companies with a corporate rating similar to CACI’s that have recently priced credit facilities. See Notes 10 and 16. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the periods presented. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest annual report to the SEC on Form 10-K for the year ended June 30, 2018. The results of operations for the three and six months ended December 31, 2018 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year. Certain reclassifications have been made to the prior period’s financial statements to conform to the current presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Effective July 1, 2018, we adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption. In addition, for our fiscal year ending June 30, 2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard. The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605. The impact of adoption on our consolidated balance sheet is as follows (in thousands): June 30, 2018 As Reported Under ASC 605 Adjustments Due to ASC 606 July 1, 2018 Balance Under ASC 606 Assets: Accounts receivable, net $ 806,871 $ 20,454 $ 827,325 Prepaid expenses and other current assets 58,126 2,342 60,468 Other long-term assets 39,175 3,923 43,098 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 150,602 2,212 152,814 Deferred income taxes 200,880 6,639 207,519 Other long-term liabilities 85,187 98 85,285 Retained earnings 2,126,790 17,770 2,144,560 ASC 606 changed the pattern of revenue recognition for some of our contracts with customers. For our award and incentive fee contracts, we now recognize a constrained amount of variable consideration throughout the performance period rather than defer recognition of the relevant portion of fee until customer notification of the amount earned. Some of our fixed price services-type contracts in which revenue was previously recognized on a straight-line basis over the performance period converted to recognition of revenue using a cost-to-cost input method to measure our progress towards the complete satisfaction of the performance obligation. The cumulative effect of these changes in the pattern of revenue recognition resulted in an increase to accounts receivable, net with an offset to retained earnings. In addition, ASC 606 changed the timing of revenue recognition for license renewal performance obligations. Under prior GAAP, license renewals were generally recognized in the period the renewal contract was executed. However, upon adoption of ASC 606, the consideration received for a license renewal may not be recognized until the start of the term of the renewal. The cumulative effect of this change resulted in an increase to contract liabilities with an offset to retained earnings. The adoption of ASC 606 did not have a material impact on the Company’s revenue recognition for cost-plus-fee, fixed price/level-of-effort, time-and-materials (T&M), fixed price contracts previously recognized under ASC 605-35, and fixed price product revenue arrangements. Under ASC 340-40, the Company capitalizes certain costs to fulfill and obtain a contract. The cumulative effect of this change resulted in an increase to contract assets with an offset to retained earnings. These capitalized costs are amortized over the period of contract performance as revenue is recognized from the transfer of goods or services and the underlying performance obligation is satisfied. The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenue $ 1,177,635 $ 4,006 $ 1,181,641 $ 2,336,337 $ 11,168 $ 2,347,505 Costs of revenue: Direct costs 790,849 — 790,849 1,573,609 — 1,573,609 Indirect costs and selling expenses 270,997 (1,320 ) 269,677 535,697 (1,263 ) 534,434 Depreciation and amortization 18,852 — 18,852 37,599 — 37,599 Total costs of revenue 1,080,698 (1,320 ) 1,079,378 2,146,905 (1,263 ) 2,145,642 Income from operations 96,937 5,326 102,263 189,432 12,431 201,863 Interest expense and other, net 9,421 — 9,421 18,307 — 18,307 Income before taxes 87,516 5,326 92,842 171,125 12,431 183,556 Income tax expense 22,858 1,388 24,246 32,945 3,182 36,127 Net income $ 64,658 $ 3,938 $ 68,596 $ 138,180 $ 9,249 $ 147,429 Basic earnings per share $ 2.60 $ 0.16 $ 2.76 $ 5.57 $ 0.37 $ 5.95 Diluted earnings per share $ 2.55 $ 0.16 $ 2.71 $ 5.44 $ 0.36 $ 5.81 For the three and six months ended December 31, 2018, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition. The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of December 31, 2018 (in thousands): As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Assets: Accounts receivable, net $ 987,494 $ 29,474 $ 1,016,968 Prepaid expenses and other current assets 67,077 2,640 69,717 Other long-term assets 34,109 4,888 38,997 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 156,538 3,823 160,361 Deferred income taxes 209,291 6,160 215,451 Other long-term liabilities 84,526 — 84,526 Retained earnings 2,264,970 27,019 2,291,989 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Revenue Recognition The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, time-and-materials (T&M), and fixed-price contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services. We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires significant professional judgment as it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue. Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract. This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation. We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements. This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations. For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation. When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion methodology. For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided. When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation. Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program. Contract Assets Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables. In addition, the costs to fulfill a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract (e.g. ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation. The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception. Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value. Contract Liabilities Contract liabilities include advance payments received from the customer in excess of revenue that may be recognized as of the balance sheet date. The advance payment is then subsequently recognized into revenue as the performance obligation is satisfied. Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end. The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied. The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations. Based on this analysis, an adjustment to the period end balance may be required. |
Acquisitions
Acquisitions | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions Domestic Acquisition On August 15, 2018, CACI acquired certain assets of the systems engineering and acquisition support services business unit (SE&A BU) of CSRA LLC, a managed affiliate of General Dynamics Information Technology, Inc. The initial purchase consideration paid at closing to acquire the SE&A BU was $84.0 million plus $6.0 million representing a preliminary net working capital adjustment. Subsequent to closing, CACI estimated that an additional payment may be due to the sellers for the final net working capital adjustment. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $42.6 million to goodwill and $8.9 million to intangible assets. The intangible assets consist of customer relationships. The final purchase price allocation, which is provisional and is expected to be completed by Q1 FY2020, will be based on final appraisals and other analysis of fair values of acquired assets and liabilities. The Company does not expect that differences between the preliminary and final purchase price allocation will have a material impact on its results of operations or financial position. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Dec. 31, 2018 | |
Finite Lived Intangible Assets Net [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible assets consisted of the following (in thousands): December 31, June 30, 2018 (1) 2018 Intangible assets: Customer contracts and related customer relationships $ 444,221 $ 435,933 Acquired technologies 13,165 13,237 Other 800 804 Intangible assets 458,186 449,974 Less accumulated amortization: Customer contracts and related customer relationships (217,673 ) (199,018 ) Acquired technologies (9,484 ) (8,761 ) Other (473 ) (440 ) Less accumulated amortization (227,630 ) (208,219 ) Total intangible assets, net $ 230,556 $ 241,755 __________________ (1) During the six months ended December 31, 2018, the Company removed $0.2 million in fully amortized intangible assets. Intangible assets are primarily amortized on an accelerated basis over periods ranging from one to twenty years. The weighted-average period of amortization for all customer contracts and related customer relationships as of December 31, 2018 is 15.0 years, and the weighted-average remaining period of amortization is 11.5 years. The weighted-average period of amortization for acquired technologies as of December 31, 2018 is 7.0 years, and the weighted-average remaining period of amortization is 5.4 years. Expected amortization expense for the remainder of the fiscal year ending June 30, 2019, and for each of the fiscal years thereafter, is as follows (in thousands): Fiscal year ending June 30, Amount 2019 (six months) $ 17,165 2020 32,440 2021 28,767 2022 25,000 2023 22,336 Thereafter 104,848 Total intangible assets, net $ 230,556 |
Goodwill
Goodwill | 6 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 6 . Goodwill The changes in the carrying amount of goodwill for the year ended June 30, 2018 and the six months ended December 31, 2018 are as follows (in thousands): Domestic International Total Balance at June 30, 2017 $ 2,479,496 $ 97,939 $ 2,577,435 Goodwill acquired (1) 35,024 6,867 41,891 Foreign currency translation — 1,509 1,509 Balance at June 30, 2018 2,514,520 106,315 2,620,835 Goodwill acquired (1) 42,704 (99 ) 42,605 Foreign currency translation — (3,691 ) (3,691 ) Balance at December 31, 2018 $ 2,557,224 $ 102,525 $ 2,659,749 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 7. Revenue Recognition We disaggregate our revenue arrangements by contract type, customer, and whether the Company performs on the contract as the prime or subcontractor. We believe that these categories allow for a better understanding of the nature, amount, timing, and uncertainty of revenue and cash flows arising from our contracts. Revenue by Contract Type The Company generated revenue on our cost-plus-fee, firm fixed-price (including proprietary software product sales), and time-and-materials contracts as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Cost-plus-fee $ 657,050 $ — $ 657,050 $ 1,298,577 $ — $ 1,298,577 Firm fixed-price 313,018 24,356 337,374 634,089 47,289 681,378 Time and materials 172,484 14,733 187,217 336,409 31,141 367,550 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 Customer Information The Company generated revenue from our primary customer groups as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Department of Defense $ 834,797 $ — $ 834,797 $ 1,653,063 $ — $ 1,653,063 Federal civilian agencies 287,915 — 287,915 580,117 — 580,117 Commercial and other 19,840 39,089 58,929 35,895 78,430 114,325 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 Prime or Subcontractor The Company generated revenue as either the prime or subcontractor as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Prime contractor $ 1,052,867 $ 39,089 $ 1,091,956 $ 2,103,398 $ 78,430 $ 2,181,828 Subcontractor 89,685 — 89,685 165,677 — 165,677 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 Significant Estimates The Company uses an estimate at completion (EAC) as the basis to measure progress towards the complete satisfaction of our contractual performance obligations, for each of our contracts in which revenue is recognized using a percentage of completion calculation. The EAC process requires the Company to use professional judgment when assessing risks, estimating contract revenue and costs, estimating variable consideration, and making assumptions for schedule and technical issues. Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded. During the three and six months ended December 31, 2018, we recognized an increase to income before income taxes of $4.2 million ($0.12 per diluted share) and $10.6 million ($0.31 per diluted share), respectively, from EAC adjustments primarily related to the final true-up of firm fixed-price contracts. The Company used its statutory tax rate when calculating the impact to diluted earnings per share. The Company records final true-up adjustments to our estimated award or incentive fees in the period in which we receive the customer’s final performance score or when we can determine that more objective, contractually-defined criteria have been fully satisfied. These final true-up adjustments are disclosed as revenue recognized from previously satisfied performance obligations. For the three and six months ended December 31, 2018, the revenue recognized from previously satisfied performance obligations was not material. Remaining Performance Obligations The Company’s remaining performance obligations balance as of period end represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an IDIQ vehicle. Our remaining performance obligations balance as of December 31, 2018 was $5.3 billion. The Company expects to recognize approximately 86 percent of our remaining performance obligations balance as revenue over the next year and the remaining 14 percent thereafter. |
Contract Balances
Contract Balances | 6 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Contract Balances | 8. Contract Balances Contract assets are primarily comprised of conditional unbilled receivables in which revenue has been recognized but an invoice has not yet been issued to the customer as of the balance sheet date. Contract assets exclude billed and billable receivables and are not stated above their net realizable value. Contract liabilities are primarily comprised of advance payments in which consideration is received in advance of satisfying a performance obligation. Net contract assets (liabilities) consisted of the following (in thousands): December 31, July 1, Description of Contract Related Balance Financial Statement Classification 2018 2018 (1) Contract assets – current: Unbilled receivables Accounts receivable, net $ 77,464 $ 72,511 Costs to obtain – short-term Prepaid expenses and other current assets 2,640 2,342 Contract assets – noncurrent: Unbilled receivables Accounts receivable, long-term 8,741 8,620 Costs to obtain – long-term Other long-term assets 4,888 3,923 Contract liabilities – current: Deferred revenue Other accrued expenses and current liabilities (49,844 ) (43,940 ) Contract liabilities – noncurrent: Deferred revenue Other long-term liabilities (5,294 ) (4,740 ) Net contract assets (liabilities) $ 38,595 $ 38,716 (1) Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers During the three and six months ended December 31, 2018, we recognized $5.5 million and $22.6 million of revenue, respectively, that was included in a previously recorded contract liability as of the beginning of the period. |
Sales of Receivables
Sales of Receivables | 6 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Sales of Receivables | 9. Sales of Receivables On December 28, 2018, the Company entered into a Master Accounts Receivable Purchase Agreement (MARPA Facility) with MUFG Bank, Ltd., for the sale of certain designated eligible U.S. government receivables. The MARPA Facility has an initial term of one year. Under the MARPA Facility, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $200.0 million. The Company’s receivables are sold to the MARPA Facility without recourse for any U.S. government credit risk. There were no sales under the MARPA Facility as of December 31, 2018. The first sales under the MARPA Facility occurred during the third quarter of FY2019. The Company accounts for receivable transfers under the MARPA Facility as sales under ASC 860, Transfers and Servicing The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Dec. 31, 2018 | |
Long Term Debt [Abstract] | |
Long-term Debt | 10 . Long-term Debt Long-term debt consisted of the following (in thousands): December 31, June 30, 2018 2018 Bank credit facility – term loans $ 914,934 $ 938,394 Bank credit facility – revolver loans 150,000 135,000 Principal amount of long-term debt 1,064,934 1,073,394 Less unamortized discounts and debt issuance costs (9,898 ) (11,054 ) Total long-term debt 1,055,036 1,062,340 Less current portion (46,920 ) (46,920 ) Long-term debt, net of current portion $ 1,008,116 $ 1,015,420 Bank Credit Facility The Company has a $2,038.4 million credit facility (the Credit Facility), which consists of an $1,100.0 million revolving credit facility (the Revolving Facility) and a $938.4 million term loan (the Term Loan). The Revolving Facility has subfacilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $400.0 million or an amount subject to 2.75 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. The Credit Facility is available to refinance existing indebtedness and for general corporate purposes, including working capital expenses and capital expenditures. The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,100.0 million. As of December 31, 2018, the Company had $150.0 million outstanding under the Revolving Facility and no borrowings on the swing line. The Company pays a quarterly facility fee for the unused portion of the Revolving Facility. The Term Loan is a five-year secured facility under which principal payments are due in quarterly installments of $11.7 million through June 30, 2021 and $23.5 million thereafter until the balance is due in full on June 30, 2023. As of December 31, 2018, the Company had $914.9 million outstanding under the Term Loan. The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable rate based upon the Company’s consolidated total leverage ratio. As of December 31, 2018, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 3.27 percent. The Credit Facility requires the Company to comply with certain financial covenants, including a maximum senior secured leverage ratio, a maximum total leverage ratio and a minimum fixed charge coverage ratio. The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility. As of December 31, 2018, the Company was in compliance with all of the financial covenants. A majority of the Company’s assets serve as collateral under the Credit Facility. All debt issuance costs are being amortized from the date incurred to the expiration date of the Credit Facility. On January 17, 2019, CACI exercised the accordion feature under its Credit Facility, increasing the capacity of the Revolving Facility by $400.0 million. As a result, the Revolving Facility capacity has increased from $1.1 billion to $1.5 billion. Cash Flow Hedges The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations. The Company has entered into several floating-to-fixed interest rate swap agreements for an aggregate notional amount of $700.0 million which hedge a portion of the Company’s floating rate indebtedness. The swaps mature at various dates through 2022. The Company has designated the swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed. Unrealized gains and losses on these swaps are designated as effective or ineffective. Realized gains and losses in connection with each required interest payment are reclassified from accumulated other comprehensive income or loss to interest expense. The Company does not hold or issue derivative financial instruments for trading purposes. The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2018 and 2017 is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Gain (loss) recognized in other comprehensive income $ (2,598 ) $ 1,867 $ (1,573 ) $ 1,521 Amounts reclassified to earnings from accumulated other comprehensive loss (1,180 ) 746 (1,988 ) 1,600 Net current period other comprehensive income $ (3,778 ) $ 2,613 $ (3,561 ) $ 3,121 The aggregate maturities of long-term debt at December 31, 2018 are as follows (in thousands): Twelve months ending December 31, 2019 $ 46,920 2020 46,920 2021 70,380 2022 93,839 2023 806,875 Principal amount of long-term debt 1,064,934 Less unamortized discounts and debt issuance costs (9,898 ) Total long-term debt $ 1,055,036 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 1 . Commitments and Contingencies The Company is involved in various lawsuits, claims, and administrative proceedings arising in the normal course of business. Management is of the opinion that any liability or loss associated with such matters, either individually or in the aggregate, will not have a material adverse effect on the Company’s operations and liquidity. Government Contracting Payments to the Company on cost-plus-fee and T&M contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) and other government agencies that do not utilize DCAA’s services. The DCAA is nearing completion of audits of the Company’s annual incurred cost submissions through fiscal year 2016 and is auditing the Company’s incurred cost submissions for its fiscal year 2017. We are still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believe our reserves for such are adequate. In the opinion of management, adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows as the Company has accrued its best estimate of potential disallowances. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues are identified, discussed and settled. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 1 2 . Stock-Based Compensation Stock-based compensation expense recognized, together with the income tax benefits recognized, is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Stock-based compensation related to RSUs included in indirect costs and selling expense $ 6,349 $ 6,038 $ 12,047 $ 12,389 Income tax benefit recognized for stock-based compensation expense $ 1,657 $ 1,985 $ 2,373 $ 4,074 Under the terms of the 2016 Amended and Restated Incentive Compensation Plan (the 2016 Plan), the Company may issue, among others, non-qualified stock options, restricted stock, restricted stock units (RSUs), stock settled appreciation rights (SSARs), and performance awards, collectively referred to herein as equity instruments. The 2016 Plan was approved by the Company’s stockholders in November 2016 and amended and restated the 2006 Stock Incentive Plan (the 2006 Plan) which was due to expire at the end of the ten-year period. Previous grants that were made under the 2006 Plan, and equity instruments granted prior to approval of the 2016 Plan continue to be governed by the terms of the 2006 Plan. During the periods presented all equity instrument grants were made in the form of RSUs. Other than performance-based RSUs (PRSUs) which contain a market-based element, the fair value of RSU grants was determined based on the closing price of a share of the Company’s common stock on the date of grant. The fair value of RSUs with market-based vesting features was also measured on the grant date, but was done so using a binomial lattice model. Annual grants under the 2016 Plan, and previously the 2006 Plan, are generally made to the Company’s key employees during the first quarter of the Company’s fiscal year and to members of the Company’s Board of Directors during the second quarter of the Company’s fiscal year. With the approval of its Chief Executive Officer, the Company also issues equity instruments to strategic new hires and to employees who have demonstrated superior performance. The Company granted performance-based stock awards to key employees in October of 2018 and September of 2017 and 2016. The final number of PRSUs that are earned by participants and vest is based on the achievement of a specified EPS for the fiscal year and on the average share price for the 90-day period ended for the following three years. If the 90-day average share price of the Company’s stock in years one, two and three exceeds the 90-day average share price at the grant date by 100 percent or more the number of shares ultimately awarded could range up to 200 percent of the specified target award. In addition to the performance and market conditions, there is a service vesting condition that stipulates 50 percent of the award will vest approximately three years from the grant date and 50 percent will vest approximately four years from the grant date, depending on the award date. The annual performance-based awards granted for each of the fiscal years presented were as follows: Performance-based stock awards granted Number of additional shares earned under performance-based stock awards Fiscal year 2019 101,976 — Fiscal year 2018 185,056 20,116 Fiscal year 2017 193,420 73,065 As of December 31, 2018, the total number of shares authorized by shareholders for grants under the 2016 Plan and its predecessor plan is 1,200,000 plus any forfeitures from the 2006 Plan. The aggregate number of grants that may be made may exceed this approved amount as forfeited RSUs become available for future grants. As of December 31, 2018, cumulative grants of 560,169 equity instruments underlying the shares authorized have been awarded, and 130,004 of these instruments have been forfeited. Activity related to RSUs during the six months ended December 31, 2018 is as follows: RSUs Unvested at June 30, 2018 663,987 Granted 241,542 Vested (251,857 ) Forfeited (24,637 ) Unvested at December 31, 2018 629,035 Weighted-average grant date fair value for RSUs $ 205.74 As of December 31, 2018, there was $50.6 million of total unrecognized compensation costs related to RSUs scheduled to be recognized over a weighted-average period of 2.9 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 3 . Earnings Per Share ASC 260, Earnings Per Share, requires dual presentation of basic and diluted earnings per share on the face of the income statement. Basic earnings per share excludes dilution and is computed by dividing income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock but not securities that are anti-dilutive. Using the treasury stock method, diluted earnings per share include the incremental effect of RSUs that are no longer subject to a market or performance condition. The chart below shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Net income $ 68,596 $ 142,795 $ 147,429 $ 184,841 Weighted-average number of basic shares outstanding during the period 24,856 24,622 24,796 24,555 Dilutive effect of RSUs after application of treasury stock method 482 589 585 673 Weighted-average number of diluted shares outstanding during the period 25,338 25,211 25,381 25,228 Basic earnings per share $ 2.76 $ 5.80 $ 5.95 $ 7.53 Diluted earnings per share $ 2.71 $ 5.66 $ 5.81 $ 7.33 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 4 . Income Taxes The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination by one state jurisdiction for the years 2015 through 2017 and one foreign jurisdiction for the years 2011 through 2015. The Company does not expect resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows. The Company’s total liability for unrecognized tax benefits as of December 31, 2018 and June 30, 2018 was $4.4 million and $4.1 million, respectively. The $4.4 million unrecognized tax benefit at December 31, 2018, if recognized, would impact the Company’s effective tax rate. For the three months ended December 31, 2018, the effective income tax rate was 26.1 percent compared with (84.7) percent for the same period last year. For the three months ended December 31, 2017, the (84.7) percent effective tax rate included the favorable remeasurement of the Company’s deferred tax liability pursuant to the Tax Cuts and Jobs Act of 2017 (TCJA). For both comparative reporting periods, the Company’s effective tax rate was impacted by excess tax benefits under ASU 2016-09, Stock Compensation For the six months ended December 31, 2018, the effective income tax rate was 19.7 percent compared with (38.6) percent for the same period last year. For the six months ended December 31, 2017, the (38.6) percent effective tax rate included the favorable remeasurement of the Company’s deferred tax liability pursuant to the TCJA. For both comparative reporting periods, the Company’s effective tax rate was impacted by excess tax benefits under ASU 2016-09 and the change in value of assets invested in COLI policies. If gains or losses on the COLI investments throughout the rest of the current fiscal year vary from our estimates, our FY2019 effective tax rate will fluctuate in future quarters for the year ending June 30, 2019. Tax Cuts and Jobs Act The TCJA was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018. Prior to the expiration of the one-year measurement period of Staff Accounting Bulletin No. 118 on December 22, 2018, the Company finalized its tax reform positions related to: (1) transition tax liability; (2) remeasurement of deferred taxes; and (3) the limitation on the deductibility of certain executive compensation. In prior periods, the Company was able to make reasonable estimates and record provisional amounts for each of these elements. During the six months ended December 31, 2018, the Company recognized a $2.2 million tax benefit related to the reduction of our provisional calculation of the one-time transition tax liability and a $0.5 million tax benefit related to its final analysis of its deferred tax remeasurement. No other adjustments were made to FY2018 provisional amounts during the six months ended December 31, 2018. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | 1 5 . Business Segment Information The Company reports operating results and financial data in two segments: domestic operations and international operations. Domestic operations provide information solutions and services to its customers. Its customers are primarily U.S. federal government agencies. Other customers of the Company’s domestic operations include commercial enterprises. The Company places employees in locations around the world in support of its customers. International operations offer services to both commercial and non-U.S. government customers primarily within the Company’s business systems and enterprise IT markets. The Company evaluates the performance of its operating segments based on net income. Summarized financial information concerning the Company’s reportable segments is as follows (in thousands): Domestic Operations International Operations Total Three Months Ended December 31, 2018 Revenue from external customers $ 1,142,552 $ 39,089 $ 1,181,641 Net income 64,557 4,039 68,596 Three Months Ended December 31, 2017 Revenue from external customers $ 1,046,823 $ 41,037 $ 1,087,860 Net income 138,930 3,865 142,795 Six Months Ended December 31, 2018 Revenue from external customers $ 2,269,075 $ 78,430 $ 2,347,505 Net income 140,006 7,423 147,429 Six Months Ended December 31, 2017 Revenue from external customers $ 2,097,706 $ 75,968 $ 2,173,674 Net income 177,763 7,078 184,841 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 1 6 . Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures The Company’s financial assets and liabilities recorded at fair value on a recurring basis are categorized based on the priority of the inputs used to measure fair value. The inputs used in measuring fair value are categorized into three levels, as follows: • Level 1 Inputs – unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 Inputs – unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. • Level 3 Inputs – amounts derived from valuation models in which unobservable inputs reflect the reporting entity’s own assumptions about the assumptions of market participants that would be used in pricing the asset or liability. The Company’s financial instruments measured at fair value included interest rate swap agreements and contingent consideration in connection with business combinations. The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and June 30, 2018, and the level they fall within the fair value hierarchy (in thousands): December 31, June 30, Financial Statement Fair Value 2018 2018 Description of Financial Instrument Classification Hierarchy Fair Value Contingent consideration Other accrued expenses and current liabilities Level 3 $ — $ 693 Contingent consideration Other long-term liabilities Level 3 $ 10,200 $ 11,000 Interest rate swap agreements Prepaid expenses and other current assets Level 2 $ 5 $ 672 Interest rate swap agreements Other long-term assets Level 2 $ 9,240 $ 13,405 Changes in the fair value of the interest rate swap agreements are recorded as a component of accumulated other comprehensive income or loss. Various acquisitions completed during prior fiscal years contained provisions requiring that the Company pay contingent consideration in the event the acquired businesses achieved certain specified earnings results during the two and three year periods subsequent to each acquisition. The Company determined the fair value of the contingent consideration as of each acquisition date using a valuation model which included the evaluation of the most likely outcome and the application of an appropriate discount rate. At the end of each reporting period, the fair value of the contingent consideration was remeasured and any changes were recorded in indirect costs and selling expenses. During the six months ended December 31, 2018 this remeasurement resulted in a $0.8 million change to the liability recorded. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 7 . Subsequent Events On January 25, 2019, CACI entered into an agreement to acquire LGS Innovations (LGS) for a purchase price of $750.0 million in cash, subject to adjustments for working capital and certain other items. LGS is a leading provider of signals intelligence (SIGINT) and cyber products and solutions to the Intelligence Community and Department of Defense. The Company anticipates that it will complete the acquisition during the third quarter of FY2019. On January 29, 2019, CACI completed the acquisition of Mastodon Design LLC (Mastodon) for a purchase price of $225.0 million in cash, subject to adjustments for working capital and certain other items. Mastodon specializes in the rapid design of rugged tactical communications SIGINT and electronic warfare (EW) equipment. These acquisitions will allow CACI to leverage their integrated technology and capabilities to create scalable SIGINT, EW, and cyber products and solutions providing advanced operational capabilities to our warfighters to address emerging near-peer threats. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of CACI International Inc and subsidiaries (CACI or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and include the assets, liabilities, results of operations, comprehensive income and cash flows for the Company, including its subsidiaries and ventures that are majority-owned or otherwise controlled by the Company. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated in consolidation. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The fair value of the Company’s debt outstanding as of December 31, 2018 under its bank credit facility approximates its carrying value. The fair value of the Company’s debt under its bank credit facility was estimated using Level 2 inputs based on market data of companies with a corporate rating similar to CACI’s that have recently priced credit facilities. See Notes 10 and 16. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the periods presented. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest annual report to the SEC on Form 10-K for the year ended June 30, 2018. The results of operations for the three and six months ended December 31, 2018 are not necessarily indicative of the results to be expected for any subsequent interim period or for the full fiscal year. Certain reclassifications have been made to the prior period’s financial statements to conform to the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Effective July 1, 2018, we adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption. In addition, for our fiscal year ending June 30, 2019 and the interim reporting periods therein, the Company is required to disclose the amount by which each financial statement line item was affected by the new standard. The Company’s comparative information, for prior periods presented before July 1, 2018, has not been restated and continues to be reported under ASC 605. The impact of adoption on our consolidated balance sheet is as follows (in thousands): June 30, 2018 As Reported Under ASC 605 Adjustments Due to ASC 606 July 1, 2018 Balance Under ASC 606 Assets: Accounts receivable, net $ 806,871 $ 20,454 $ 827,325 Prepaid expenses and other current assets 58,126 2,342 60,468 Other long-term assets 39,175 3,923 43,098 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 150,602 2,212 152,814 Deferred income taxes 200,880 6,639 207,519 Other long-term liabilities 85,187 98 85,285 Retained earnings 2,126,790 17,770 2,144,560 ASC 606 changed the pattern of revenue recognition for some of our contracts with customers. For our award and incentive fee contracts, we now recognize a constrained amount of variable consideration throughout the performance period rather than defer recognition of the relevant portion of fee until customer notification of the amount earned. Some of our fixed price services-type contracts in which revenue was previously recognized on a straight-line basis over the performance period converted to recognition of revenue using a cost-to-cost input method to measure our progress towards the complete satisfaction of the performance obligation. The cumulative effect of these changes in the pattern of revenue recognition resulted in an increase to accounts receivable, net with an offset to retained earnings. In addition, ASC 606 changed the timing of revenue recognition for license renewal performance obligations. Under prior GAAP, license renewals were generally recognized in the period the renewal contract was executed. However, upon adoption of ASC 606, the consideration received for a license renewal may not be recognized until the start of the term of the renewal. The cumulative effect of this change resulted in an increase to contract liabilities with an offset to retained earnings. The adoption of ASC 606 did not have a material impact on the Company’s revenue recognition for cost-plus-fee, fixed price/level-of-effort, time-and-materials (T&M), fixed price contracts previously recognized under ASC 605-35, and fixed price product revenue arrangements. Under ASC 340-40, the Company capitalizes certain costs to fulfill and obtain a contract. The cumulative effect of this change resulted in an increase to contract assets with an offset to retained earnings. These capitalized costs are amortized over the period of contract performance as revenue is recognized from the transfer of goods or services and the underlying performance obligation is satisfied. The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenue $ 1,177,635 $ 4,006 $ 1,181,641 $ 2,336,337 $ 11,168 $ 2,347,505 Costs of revenue: Direct costs 790,849 — 790,849 1,573,609 — 1,573,609 Indirect costs and selling expenses 270,997 (1,320 ) 269,677 535,697 (1,263 ) 534,434 Depreciation and amortization 18,852 — 18,852 37,599 — 37,599 Total costs of revenue 1,080,698 (1,320 ) 1,079,378 2,146,905 (1,263 ) 2,145,642 Income from operations 96,937 5,326 102,263 189,432 12,431 201,863 Interest expense and other, net 9,421 — 9,421 18,307 — 18,307 Income before taxes 87,516 5,326 92,842 171,125 12,431 183,556 Income tax expense 22,858 1,388 24,246 32,945 3,182 36,127 Net income $ 64,658 $ 3,938 $ 68,596 $ 138,180 $ 9,249 $ 147,429 Basic earnings per share $ 2.60 $ 0.16 $ 2.76 $ 5.57 $ 0.37 $ 5.95 Diluted earnings per share $ 2.55 $ 0.16 $ 2.71 $ 5.44 $ 0.36 $ 5.81 For the three and six months ended December 31, 2018, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition. The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of December 31, 2018 (in thousands): As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Assets: Accounts receivable, net $ 987,494 $ 29,474 $ 1,016,968 Prepaid expenses and other current assets 67,077 2,640 69,717 Other long-term assets 34,109 4,888 38,997 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 156,538 3,823 160,361 Deferred income taxes 209,291 6,160 215,451 Other long-term liabilities 84,526 — 84,526 Retained earnings 2,264,970 27,019 2,291,989 |
Revenue Recognition | Revenue Recognition The Company generates almost all of our revenue from three different types of contractual arrangements with the U.S. government: cost-plus-fee, time-and-materials (T&M), and fixed-price contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services. We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires significant professional judgment as it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue. Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which we can calculate the final amount of award or incentive fee earned - based on the receipt of the customer’s final performance score or determining that more objective, contractually-defined criteria have been fully satisfied - the Company will adjust our cumulative revenue recognized to date on the contract. This adjustment to revenue will be disclosed as the amount of revenue recognized in the current period for a previously satisfied performance obligation. We generally recognize revenue over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements. This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including: costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations. For certain contracts, primarily our cost-plus and T&M services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenue is recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation. When a performance obligation has a significant degree of interrelation or interdependence between one month’s deliverables and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion methodology. For these revenue arrangements, substantially all revenue is recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. When a contract modification changes the scope or price and the additional performance obligations are at their standalone selling price, the original contract is terminated and the Company accounts for the change prospectively when the new goods or services to be transferred are distinct from those already provided. When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenue based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation. Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program. |
Contract Assets | Contract Assets Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables. In addition, the costs to fulfill a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract (e.g. ramp up costs at the beginning of the period of performance) may be capitalized when expenses are incurred prior to satisfying a performance obligation. The incremental costs of obtaining a contract (e.g. sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception. Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value. |
Contract Liabilities | Contract Liabilities Contract liabilities include advance payments received from the customer in excess of revenue that may be recognized as of the balance sheet date. The advance payment is then subsequently recognized into revenue as the performance obligation is satisfied. |
Remaining Performance Obligations | Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts as of period end. The remaining performance obligations balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied. The Company continues to monitor our remaining performance obligations balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations. Based on this analysis, an adjustment to the period end balance may be required. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
ASU 2014-09 | |
Summary of Impact of Adoption of ASC 606 on Financial Statements | The impact of adoption on our consolidated balance sheet is as follows (in thousands): June 30, 2018 As Reported Under ASC 605 Adjustments Due to ASC 606 July 1, 2018 Balance Under ASC 606 Assets: Accounts receivable, net $ 806,871 $ 20,454 $ 827,325 Prepaid expenses and other current assets 58,126 2,342 60,468 Other long-term assets 39,175 3,923 43,098 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 150,602 2,212 152,814 Deferred income taxes 200,880 6,639 207,519 Other long-term liabilities 85,187 98 85,285 Retained earnings 2,126,790 17,770 2,144,560 The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenue $ 1,177,635 $ 4,006 $ 1,181,641 $ 2,336,337 $ 11,168 $ 2,347,505 Costs of revenue: Direct costs 790,849 — 790,849 1,573,609 — 1,573,609 Indirect costs and selling expenses 270,997 (1,320 ) 269,677 535,697 (1,263 ) 534,434 Depreciation and amortization 18,852 — 18,852 37,599 — 37,599 Total costs of revenue 1,080,698 (1,320 ) 1,079,378 2,146,905 (1,263 ) 2,145,642 Income from operations 96,937 5,326 102,263 189,432 12,431 201,863 Interest expense and other, net 9,421 — 9,421 18,307 — 18,307 Income before taxes 87,516 5,326 92,842 171,125 12,431 183,556 Income tax expense 22,858 1,388 24,246 32,945 3,182 36,127 Net income $ 64,658 $ 3,938 $ 68,596 $ 138,180 $ 9,249 $ 147,429 Basic earnings per share $ 2.60 $ 0.16 $ 2.76 $ 5.57 $ 0.37 $ 5.95 Diluted earnings per share $ 2.55 $ 0.16 $ 2.71 $ 5.44 $ 0.36 $ 5.81 For the three and six months ended December 31, 2018, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition. The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of December 31, 2018 (in thousands): As Adjusted Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Assets: Accounts receivable, net $ 987,494 $ 29,474 $ 1,016,968 Prepaid expenses and other current assets 67,077 2,640 69,717 Other long-term assets 34,109 4,888 38,997 Liabilities and Shareholders' Equity: Other accrued expenses and current liabilities 156,538 3,823 160,361 Deferred income taxes 209,291 6,160 215,451 Other long-term liabilities 84,526 — 84,526 Retained earnings 2,264,970 27,019 2,291,989 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Finite Lived Intangible Assets Net [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): December 31, June 30, 2018 (1) 2018 Intangible assets: Customer contracts and related customer relationships $ 444,221 $ 435,933 Acquired technologies 13,165 13,237 Other 800 804 Intangible assets 458,186 449,974 Less accumulated amortization: Customer contracts and related customer relationships (217,673 ) (199,018 ) Acquired technologies (9,484 ) (8,761 ) Other (473 ) (440 ) Less accumulated amortization (227,630 ) (208,219 ) Total intangible assets, net $ 230,556 $ 241,755 __________________ (1) During the six months ended December 31, 2018, the Company removed $0.2 million in fully amortized intangible assets. |
Expected Amortization Expense | Expected amortization expense for the remainder of the fiscal year ending June 30, 2019, and for each of the fiscal years thereafter, is as follows (in thousands): Fiscal year ending June 30, Amount 2019 (six months) $ 17,165 2020 32,440 2021 28,767 2022 25,000 2023 22,336 Thereafter 104,848 Total intangible assets, net $ 230,556 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill | The changes in the carrying amount of goodwill for the year ended June 30, 2018 and the six months ended December 31, 2018 are as follows (in thousands): Domestic International Total Balance at June 30, 2017 $ 2,479,496 $ 97,939 $ 2,577,435 Goodwill acquired (1) 35,024 6,867 41,891 Foreign currency translation — 1,509 1,509 Balance at June 30, 2018 2,514,520 106,315 2,620,835 Goodwill acquired (1) 42,704 (99 ) 42,605 Foreign currency translation — (3,691 ) (3,691 ) Balance at December 31, 2018 $ 2,557,224 $ 102,525 $ 2,659,749 (1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor | Revenue by Contract Type The Company generated revenue on our cost-plus-fee, firm fixed-price (including proprietary software product sales), and time-and-materials contracts as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Cost-plus-fee $ 657,050 $ — $ 657,050 $ 1,298,577 $ — $ 1,298,577 Firm fixed-price 313,018 24,356 337,374 634,089 47,289 681,378 Time and materials 172,484 14,733 187,217 336,409 31,141 367,550 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 Customer Information The Company generated revenue from our primary customer groups as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Department of Defense $ 834,797 $ — $ 834,797 $ 1,653,063 $ — $ 1,653,063 Federal civilian agencies 287,915 — 287,915 580,117 — 580,117 Commercial and other 19,840 39,089 58,929 35,895 78,430 114,325 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 Prime or Subcontractor The Company generated revenue as either the prime or subcontractor as follows during the three and six months ended December 31, 2018 (in thousands): Three Months Ended Six Months Ended December 31, 2018 December 31, 2018 Domestic International Total Domestic International Total Prime contractor $ 1,052,867 $ 39,089 $ 1,091,956 $ 2,103,398 $ 78,430 $ 2,181,828 Subcontractor 89,685 — 89,685 165,677 — 165,677 Total $ 1,142,552 $ 39,089 $ 1,181,641 $ 2,269,075 $ 78,430 $ 2,347,505 |
Contract Balances (Tables)
Contract Balances (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Liabilities | Net contract assets (liabilities) consisted of the following (in thousands): December 31, July 1, Description of Contract Related Balance Financial Statement Classification 2018 2018 (1) Contract assets – current: Unbilled receivables Accounts receivable, net $ 77,464 $ 72,511 Costs to obtain – short-term Prepaid expenses and other current assets 2,640 2,342 Contract assets – noncurrent: Unbilled receivables Accounts receivable, long-term 8,741 8,620 Costs to obtain – long-term Other long-term assets 4,888 3,923 Contract liabilities – current: Deferred revenue Other accrued expenses and current liabilities (49,844 ) (43,940 ) Contract liabilities – noncurrent: Deferred revenue Other long-term liabilities (5,294 ) (4,740 ) Net contract assets (liabilities) $ 38,595 $ 38,716 (1) Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Long Term Debt [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): December 31, June 30, 2018 2018 Bank credit facility – term loans $ 914,934 $ 938,394 Bank credit facility – revolver loans 150,000 135,000 Principal amount of long-term debt 1,064,934 1,073,394 Less unamortized discounts and debt issuance costs (9,898 ) (11,054 ) Total long-term debt 1,055,036 1,062,340 Less current portion (46,920 ) (46,920 ) Long-term debt, net of current portion $ 1,008,116 $ 1,015,420 |
Cash Flow Hedges | The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2018 and 2017 is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Gain (loss) recognized in other comprehensive income $ (2,598 ) $ 1,867 $ (1,573 ) $ 1,521 Amounts reclassified to earnings from accumulated other comprehensive loss (1,180 ) 746 (1,988 ) 1,600 Net current period other comprehensive income $ (3,778 ) $ 2,613 $ (3,561 ) $ 3,121 |
Aggregate Maturities of Long-term Debt | The aggregate maturities of long-term debt at December 31, 2018 are as follows (in thousands): Twelve months ending December 31, 2019 $ 46,920 2020 46,920 2021 70,380 2022 93,839 2023 806,875 Principal amount of long-term debt 1,064,934 Less unamortized discounts and debt issuance costs (9,898 ) Total long-term debt $ 1,055,036 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense and Related Tax Benefits Recognized | Stock-based compensation expense recognized, together with the income tax benefits recognized, is as follows (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Stock-based compensation related to RSUs included in indirect costs and selling expense $ 6,349 $ 6,038 $ 12,047 $ 12,389 Income tax benefit recognized for stock-based compensation expense $ 1,657 $ 1,985 $ 2,373 $ 4,074 |
Annual Performance-Based Awards Granted | The annual performance-based awards granted for each of the fiscal years presented were as follows: Performance-based stock awards granted Number of additional shares earned under performance-based stock awards Fiscal year 2019 101,976 — Fiscal year 2018 185,056 20,116 Fiscal year 2017 193,420 73,065 |
Summary of Activity Related to RSUs | Activity related to RSUs during the six months ended December 31, 2018 is as follows: RSUs Unvested at June 30, 2018 663,987 Granted 241,542 Vested (251,857 ) Forfeited (24,637 ) Unvested at December 31, 2018 629,035 Weighted-average grant date fair value for RSUs $ 205.74 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings per Share | The chart below shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Net income $ 68,596 $ 142,795 $ 147,429 $ 184,841 Weighted-average number of basic shares outstanding during the period 24,856 24,622 24,796 24,555 Dilutive effect of RSUs after application of treasury stock method 482 589 585 673 Weighted-average number of diluted shares outstanding during the period 25,338 25,211 25,381 25,228 Basic earnings per share $ 2.76 $ 5.80 $ 5.95 $ 7.53 Diluted earnings per share $ 2.71 $ 5.66 $ 5.81 $ 7.33 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | Summarized financial information concerning the Company’s reportable segments is as follows (in thousands): Domestic Operations International Operations Total Three Months Ended December 31, 2018 Revenue from external customers $ 1,142,552 $ 39,089 $ 1,181,641 Net income 64,557 4,039 68,596 Three Months Ended December 31, 2017 Revenue from external customers $ 1,046,823 $ 41,037 $ 1,087,860 Net income 138,930 3,865 142,795 Six Months Ended December 31, 2018 Revenue from external customers $ 2,269,075 $ 78,430 $ 2,347,505 Net income 140,006 7,423 147,429 Six Months Ended December 31, 2017 Revenue from external customers $ 2,097,706 $ 75,968 $ 2,173,674 Net income 177,763 7,078 184,841 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and June 30, 2018, and the level they fall within the fair value hierarchy (in thousands): December 31, June 30, Financial Statement Fair Value 2018 2018 Description of Financial Instrument Classification Hierarchy Fair Value Contingent consideration Other accrued expenses and current liabilities Level 3 $ — $ 693 Contingent consideration Other long-term liabilities Level 3 $ 10,200 $ 11,000 Interest rate swap agreements Prepaid expenses and other current assets Level 2 $ 5 $ 672 Interest rate swap agreements Other long-term assets Level 2 $ 9,240 $ 13,405 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Detail Textual) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Payments For Proceeds From Life Insurance Policies [Abstract] | ||
Proceeds from settlement of corporate owned life insurance (COLI) | $ 1.9 | $ 3.7 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Impact of Adoption of ASC 606 on Financial Statements - Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jul. 01, 2018 | Jun. 30, 2018 |
ASSETS | |||
Accounts receivable, net | $ 1,016,968 | $ 827,325 | $ 806,871 |
Prepaid expenses and other current assets | 69,717 | 60,468 | 58,126 |
Other long-term assets | 38,997 | 43,098 | 39,175 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Accounts payable | 197,225 | 82,017 | |
Other accrued expenses and current liabilities | 160,361 | 152,814 | 150,602 |
Deferred income taxes | 215,451 | 207,519 | 200,880 |
Other long-term liabilities | 84,526 | 85,285 | 85,187 |
Retained earnings | 2,291,989 | 2,144,560 | 2,126,790 |
Under ASC 605 | |||
ASSETS | |||
Accounts receivable, net | 987,494 | 806,871 | |
Prepaid expenses and other current assets | 67,077 | 58,126 | |
Other long-term assets | 34,109 | 39,175 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Other accrued expenses and current liabilities | 156,538 | 150,602 | |
Deferred income taxes | 209,291 | 200,880 | |
Other long-term liabilities | 84,526 | 85,187 | |
Retained earnings | 2,264,970 | $ 2,126,790 | |
ASU 2014-09 | Adjustments Due to ASC 606 | |||
ASSETS | |||
Accounts receivable, net | 29,474 | 20,454 | |
Prepaid expenses and other current assets | 2,640 | 2,342 | |
Other long-term assets | 4,888 | 3,923 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Other accrued expenses and current liabilities | 3,823 | 2,212 | |
Deferred income taxes | 6,160 | 6,639 | |
Other long-term liabilities | 98 | ||
Retained earnings | $ 27,019 | $ 17,770 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements - Impact of Adoption of ASC 606 on Financial Statements - Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 1,181,641 | $ 1,087,860 | $ 2,347,505 | $ 2,173,674 |
Costs of revenue: | ||||
Direct costs | 790,849 | 727,160 | 1,573,609 | 1,466,838 |
Indirect costs and selling expenses | 269,677 | 254,180 | 534,434 | 515,424 |
Depreciation and amortization | 18,852 | 18,258 | 37,599 | 35,846 |
Total costs of revenue | 1,079,378 | 999,598 | 2,145,642 | 2,018,108 |
Income from operations | 102,263 | 88,262 | 201,863 | 155,566 |
Interest expense and other, net | 9,421 | 10,956 | 18,307 | 22,203 |
Income before taxes | 92,842 | 77,306 | 183,556 | 133,363 |
Income tax expense (benefit) | 24,246 | (65,489) | 36,127 | (51,478) |
Net income | $ 68,596 | $ 142,795 | $ 147,429 | $ 184,841 |
Basic earnings per share | $ 2.76 | $ 5.80 | $ 5.95 | $ 7.53 |
Diluted earnings per share | $ 2.71 | $ 5.66 | $ 5.81 | $ 7.33 |
Under ASC 605 | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 1,177,635 | $ 2,336,337 | ||
Costs of revenue: | ||||
Direct costs | 790,849 | 1,573,609 | ||
Indirect costs and selling expenses | 270,997 | 535,697 | ||
Depreciation and amortization | 18,852 | 37,599 | ||
Total costs of revenue | 1,080,698 | 2,146,905 | ||
Income from operations | 96,937 | 189,432 | ||
Interest expense and other, net | 9,421 | 18,307 | ||
Income before taxes | 87,516 | 171,125 | ||
Income tax expense (benefit) | 22,858 | 32,945 | ||
Net income | $ 64,658 | $ 138,180 | ||
Basic earnings per share | $ 2.60 | $ 5.57 | ||
Diluted earnings per share | $ 2.55 | $ 5.44 | ||
ASU 2014-09 | Effect of ASC 606 | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 4,006 | $ 11,168 | ||
Costs of revenue: | ||||
Indirect costs and selling expenses | (1,320) | (1,263) | ||
Total costs of revenue | (1,320) | (1,263) | ||
Income from operations | 5,326 | 12,431 | ||
Income before taxes | 5,326 | 12,431 | ||
Income tax expense (benefit) | 1,388 | 3,182 | ||
Net income | $ 3,938 | $ 9,249 | ||
Basic earnings per share | $ 0.16 | $ 0.37 | ||
Diluted earnings per share | $ 0.16 | $ 0.36 |
Acquisitions (Detail Textual)
Acquisitions (Detail Textual) - USD ($) $ in Thousands | Aug. 15, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,659,749 | $ 2,620,835 | $ 2,577,435 | |
Domestic Acquisition | SE&A BU | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Aug. 15, 2018 | |||
Cash consideration | $ 84,000 | |||
Consideration, initial net working capital payment | 6,000 | |||
Goodwill | 42,600 | |||
Identifiable intangible assets | $ 8,900 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | [1] | Jun. 30, 2018 |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 458,186 | $ 449,974 | |
Less accumulated amortization | (227,630) | (208,219) | |
Total intangible assets, net | 230,556 | 241,755 | |
Customer contracts and related customer relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 444,221 | 435,933 | |
Less accumulated amortization | (217,673) | (199,018) | |
Acquired technologies | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 13,165 | 13,237 | |
Less accumulated amortization | (9,484) | (8,761) | |
Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 800 | 804 | |
Less accumulated amortization | $ (473) | $ (440) | |
[1] | During the six months ended December 31, 2018, the Company removed $0.2 million in fully amortized intangible assets. |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Intangible Assets (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Dec. 31, 2018USD ($) | |
Finite Lived Intangible Assets Net [Abstract] | |
Removal of fully amortized intangible assets | $ 0.2 |
Intangible Assets (Detail Textu
Intangible Assets (Detail Textual) | 6 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible asset amortization period | 1 year |
Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible asset amortization period | 20 years |
Customer contracts and related customer relationships | |
Finite Lived Intangible Assets [Line Items] | |
Weighted-average amortization period | 15 years |
Weighted-average remaining amortization period | 11 years 6 months |
Acquired technologies | |
Finite Lived Intangible Assets [Line Items] | |
Weighted-average amortization period | 7 years |
Weighted-average remaining amortization period | 5 years 4 months 24 days |
Intangible Assets - Expected Am
Intangible Assets - Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 | |
Finite Lived Intangible Assets Net [Abstract] | |||
2019 (six months) | $ 17,165 | ||
2,020 | 32,440 | ||
2,021 | 28,767 | ||
2,022 | 25,000 | ||
2,023 | 22,336 | ||
Thereafter | 104,848 | ||
Total intangible assets, net | $ 230,556 | [1] | $ 241,755 |
[1] | During the six months ended December 31, 2018, the Company removed $0.2 million in fully amortized intangible assets. |
Goodwill - Roll Forward of Good
Goodwill - Roll Forward of Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2018 | ||
Goodwill [Roll Forward] | |||
Balance | $ 2,620,835 | $ 2,577,435 | |
Goodwill acquired | [1] | 42,605 | 41,891 |
Foreign currency translation | (3,691) | 1,509 | |
Balance | 2,659,749 | 2,620,835 | |
Domestic | |||
Goodwill [Roll Forward] | |||
Balance | 2,514,520 | 2,479,496 | |
Goodwill acquired | [1] | 42,704 | 35,024 |
Balance | 2,557,224 | 2,514,520 | |
International | |||
Goodwill [Roll Forward] | |||
Balance | 106,315 | 97,939 | |
Goodwill acquired | [1] | (99) | 6,867 |
Foreign currency translation | (3,691) | 1,509 | |
Balance | $ 102,525 | $ 106,315 | |
[1] | Includes goodwill initially allocated to new business combinations as well as measurement period adjustments. |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Contract Type, Customer Information and Prime or Subcontractor (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 1,181,641 | $ 1,087,860 | $ 2,347,505 | $ 2,173,674 |
Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,091,956 | 2,181,828 | ||
Subcontractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 89,685 | 165,677 | ||
Department of Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 834,797 | 1,653,063 | ||
Federal civilian agencies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 287,915 | 580,117 | ||
Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 58,929 | 114,325 | ||
Domestic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,142,552 | 1,046,823 | 2,269,075 | 2,097,706 |
Domestic | Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,052,867 | 2,103,398 | ||
Domestic | Subcontractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 89,685 | 165,677 | ||
Domestic | Department of Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 834,797 | 1,653,063 | ||
Domestic | Federal civilian agencies | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 287,915 | 580,117 | ||
Domestic | Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 19,840 | 35,895 | ||
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 39,089 | $ 41,037 | 78,430 | $ 75,968 |
International | Prime contractor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 39,089 | 78,430 | ||
International | Commercial and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 39,089 | 78,430 | ||
Cost-plus-fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 657,050 | 1,298,577 | ||
Cost-plus-fee | Domestic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 657,050 | 1,298,577 | ||
Firm fixed-price | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 337,374 | 681,378 | ||
Firm fixed-price | Domestic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 313,018 | 634,089 | ||
Firm fixed-price | International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 24,356 | 47,289 | ||
Time and materials | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 187,217 | 367,550 | ||
Time and materials | Domestic | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 172,484 | 336,409 | ||
Time and materials | International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 14,733 | $ 31,141 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change In Accounting Estimate [Line Items] | ||||
Income before income taxes | $ 92,842 | $ 77,306 | $ 183,556 | $ 133,363 |
Diluted earnings per share | $ 2.71 | $ 5.66 | $ 5.81 | $ 7.33 |
EAC Adjustments | ||||
Change In Accounting Estimate [Line Items] | ||||
Income before income taxes | $ 4,200 | $ 10,600 | ||
Diluted earnings per share | $ 0.12 | $ 0.31 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Detail) $ in Billions | Dec. 31, 2018USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining performance obligations | $ 5.3 |
Revenue - Remaining Performan_2
Revenue - Remaining Performance Obligations (Detail 1) | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 86.00% |
Remaining performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Remaining Performance Obligations [Line Items] | |
Remaining performance obligations, expected satisfaction, percentage | 14.00% |
Remaining performance obligations, expected timing of satisfaction |
Contract Balances - Contract As
Contract Balances - Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jul. 01, 2018 | [1] | Jun. 30, 2018 |
Contract assets – current: | ||||
Unbilled receivables | $ 77,464 | $ 72,511 | ||
Costs to obtain – short-term | 2,640 | 2,342 | ||
Contract assets – noncurrent: | ||||
Unbilled receivables | 8,741 | 8,620 | $ 8,620 | |
Costs to obtain – long-term | 4,888 | 3,923 | ||
Contract liabilities – current: | ||||
Deferred revenue | (49,844) | (43,940) | ||
Contract liabilities – noncurrent: | ||||
Deferred revenue | (5,294) | (4,740) | ||
Net contract assets (liabilities) | $ 38,595 | $ 38,716 | ||
[1] | Includes the cumulative effect to the Company’s opening balance sheet from the adoption of ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. |
Contract Balances (Detail Textu
Contract Balances (Detail Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Liability, revenue recognized | $ 5.5 | $ 22.6 |
Sales of Receivables (Detail Te
Sales of Receivables (Detail Textual) - USD ($) | Dec. 28, 2018 | Dec. 31, 2018 |
MARPA Facility | ||
MARPA Facility term | 1 year | |
MARPA Facility maximum commitment | $ 200,000,000 | |
Sales of receivables | 0 | |
Gain (loss) on sale of receivables | $ 0 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 1,064,934 | $ 1,073,394 |
Less unamortized discounts and debt issuance costs | (9,898) | (11,054) |
Total long-term debt | 1,055,036 | 1,062,340 |
Less current portion | (46,920) | (46,920) |
Long-term debt, net of current portion | 1,008,116 | 1,015,420 |
Bank credit facility - term loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | 914,934 | 938,394 |
Bank credit facility - revolver loans | ||
Debt Instrument [Line Items] | ||
Principal amount of long-term debt | $ 150,000 | $ 135,000 |
Long-term Debt (Detail Textual)
Long-term Debt (Detail Textual) - USD ($) | Jan. 17, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||
Outstanding amount under Credit Facility | $ 1,064,934,000 | $ 1,073,394,000 | |
Interest Rate Swap | Cash Flow Hedging | |||
Debt Instrument [Line Items] | |||
Aggregate notional amount | 700,000,000 | ||
Bank Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 2,038,400,000 | ||
Credit facility borrowing capacity, description | At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $400.0 million or an amount subject to 2.75 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. | ||
Credit Facility optional increases to borrowing capacity | $ 400,000,000 | ||
Ratio that restricts optional increases to borrowing capacity | 275.00% | ||
Outstanding borrowings interest rate | 3.27% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 1,100,000,000 | ||
Outstanding amount under Credit Facility | 150,000,000 | 135,000,000 | |
Revolving Credit Facility | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 1,500,000,000 | ||
Credit facility, increase in borrowing capacity | $ 400,000,000 | ||
Term loans | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | 938,400,000 | ||
Outstanding amount under Credit Facility | $ 914,934,000 | $ 938,394,000 | |
Term loan period | 5 years | ||
Loan maturity date | Jun. 30, 2023 | ||
Term loan frequency of payment | quarterly | ||
Term loans | Principal Payment Through June 30, 2021 | |||
Debt Instrument [Line Items] | |||
Term loan principal payment | $ 11,700,000 | ||
Term loans | Principal Payment Thereafter June 30, 2021 | |||
Debt Instrument [Line Items] | |||
Term loan principal payment | 23,500,000 | ||
Same-Day Swing Line Loan Revolving Credit Subfacility | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | 100,000,000 | ||
Outstanding amount under Credit Facility | 0 | ||
Stand-By Letters Of Credit Revolving Credit Subfacility | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 25,000,000 |
Long-term Debt - Cash Flow Hedg
Long-term Debt - Cash Flow Hedges (Detail 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long Term Debt [Abstract] | ||||
Gain (loss) recognized in other comprehensive income | $ (2,598) | $ 1,867 | $ (1,573) | $ 1,521 |
Amounts reclassified to earnings from accumulated other comprehensive loss | (1,180) | 746 | (1,988) | 1,600 |
Net current period other comprehensive income | $ (3,778) | $ 2,613 | $ (3,561) | $ 3,121 |
Long-term Debt - Aggregate Matu
Long-term Debt - Aggregate Maturities of Long-Term Debt (Detail 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Long Term Debt [Abstract] | ||
2,019 | $ 46,920 | |
2,020 | 46,920 | |
2,021 | 70,380 | |
2,022 | 93,839 | |
2,023 | 806,875 | |
Principal amount of long-term debt | 1,064,934 | $ 1,073,394 |
Less unamortized discounts and debt issuance costs | (9,898) | (11,054) |
Total long-term debt | $ 1,055,036 | $ 1,062,340 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense and Related Tax Benefits Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation included in indirect costs and selling expense: | ||||
Stock-based compensation related to RSUs included in indirect costs and selling expense | $ 6,349 | $ 6,038 | $ 12,047 | $ 12,389 |
Income tax benefit recognized for stock-based compensation expense | $ 1,657 | $ 1,985 | $ 2,373 | $ 4,074 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail Textual) $ in Millions | 6 Months Ended |
Dec. 31, 2018USD ($)shares | |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period to establish average share price for performance measurement | 90 days |
Average share price performance condition, percentage | 100.00% |
Maximum earned award, percentage of target award | 200.00% |
Percentage of earned award vesting after three years | 50.00% |
Percentage of earned award vesting after four years | 50.00% |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ | $ 50.6 |
Weighted-average period to recognize unrecognized compensation cost (in years) | 2 years 10 months 24 days |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock incentive plan, expiration period | 10 years |
2016 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for grants | 1,200,000 |
Cumulative equity instruments awarded | 560,169 |
Cumulative equity instruments forfeited | 130,004 |
Stock-Based Compensation - Annu
Stock-Based Compensation - Annual Performance-Based Awards Granted (Detail) | 6 Months Ended |
Dec. 31, 2018shares | |
FY2019 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 101,976 |
FY2018 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 185,056 |
Additional PRSUs earned pursuant to condition | 20,116 |
FY2017 PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSUs granted | 193,420 |
Additional PRSUs earned pursuant to condition | 73,065 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Related to RSUs (Detail 1) - RSUs | 6 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at June 30, 2018 | 663,987 |
Granted | 241,542 |
Vested | (251,857) |
Forfeited | (24,637) |
Unvested at December 31, 2018 | 629,035 |
Weighted-average grant date fair value for RSUs | $ / shares | $ 205.74 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 68,596 | $ 142,795 | $ 147,429 | $ 184,841 |
Weighted-average number of basic shares outstanding during the period | 24,856 | 24,622 | 24,796 | 24,555 |
Dilutive effect of RSUs after application of treasury stock method | 482 | 589 | 585 | 673 |
Weighted-average number of diluted shares outstanding during the period | 25,338 | 25,211 | 25,381 | 25,228 |
Basic earnings per share | $ 2.76 | $ 5.80 | $ 5.95 | $ 7.53 |
Diluted earnings per share | $ 2.71 | $ 5.66 | $ 5.81 | $ 7.33 |
Income Taxes (Detail Textual)
Income Taxes (Detail Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Liability for unrecognized tax benefits | $ 4.4 | $ 4.4 | $ 4.1 | ||
Unrecognized tax benefit that would impact the company's effective tax rate | $ 4.4 | $ 4.4 | |||
Effective tax rate, percentage | 26.10% | (84.70%) | 19.70% | (38.60%) | |
Statutory U.S. Income Tax Rate | 21.00% | 35.00% | |||
TCJA one-time transition tax, measurement period adjustment to income tax expense | $ 2.2 | ||||
TCJA reameasurement of deferred taxes, measurement period adjustment to income tax expense | $ 0.5 | $ 0.5 |
Business Segment Information (D
Business Segment Information (Detail Textual) | 6 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segment Information -
Business Segment Information - Summarized Financial Information of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | $ 1,181,641 | $ 1,087,860 | $ 2,347,505 | $ 2,173,674 |
Net income | 68,596 | 142,795 | 147,429 | 184,841 |
Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 1,142,552 | 1,046,823 | 2,269,075 | 2,097,706 |
Net income | 64,557 | 138,930 | 140,006 | 177,763 |
International Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 39,089 | 41,037 | 78,430 | 75,968 |
Net income | $ 4,039 | $ 3,865 | $ 7,423 | $ 7,078 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Fair Value Measurements (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Other accrued expenses and current liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 693 | |
Other long-term liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 10,200 | 11,000 |
Prepaid expenses and other current assets | Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 5 | 672 |
Other long-term assets | Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 9,240 | $ 13,405 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Detail Textual) $ in Millions | 6 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Business combination contingent consideration period | two and three year periods |
Change in fair value of contingent consideration | $ (0.8) |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textual) - Subsequent Event - USD ($) $ in Millions | Jan. 29, 2019 | Jan. 25, 2019 |
LGS | ||
Subsequent Event [Line Items] | ||
Purchase consideration | $ 750 | |
Mastodon | ||
Subsequent Event [Line Items] | ||
Purchase consideration | $ 225 |