Revenue

12 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The Company's revenues from contracts with customers (clients) are derived from offerings that include management and technology consulting services, analytics, digital solutions, engineering, mission operations, and cyber services, substantially with the U.S. government and its agencies, and to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international commercial clients. The Company performs under various types of contracts, which include cost-reimbursable-plus-fee contracts, time-and-material contracts, and fixed-price contracts.

Disaggregation of Revenue

We disaggregate our revenue from contracts with customers by contract type, customer, as well as whether the Company acts as prime contractor or sub-contractor, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories.

Revenue by Contract Type:

We generate revenue under the following three basic types of contracts:

• Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee.

• Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates.

• Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss.

The table below presents the total revenue for each type of contract:

	Fiscal Year Ended March 31,
	2020			2019			2018
Cost-reimbursable	$	4,211,592	57%	$	3,580,595	53%	$	3,155,049	51%
Time-and-materials	1,737,414		23%	1,576,673		24%	1,542,899		25%
Fixed-price	1,514,835		20%	1,546,769		23%	1,469,652		24%
Total Revenue	$	7,463,841	100%	$	6,704,037	100%	$	6,167,600	100%

Revenue by Customer Type:    

	Fiscal Year Ended March 31,
	2020			2019			2018
U.S. government:
Defense Clients	$	3,568,659	47%	$	3,114,571	47%	$	2,830,102	46%
Intelligence Clients	1,614,315		22%	1,566,870		23%	1,494,489		24%
Civil Clients	2,019,245		27%	1,760,996		26%	1,644,860		27%
Total U.S. government	7,202,219		96%	6,442,437		96%	5,969,451		97%
Global Commercial Clients	261,622		4%	261,600		4%	198,149		3%
Total Revenue	$	7,463,841	100%	$	6,704,037	100%	$	6,167,600	100%

Revenue by Whether the Company Acts as a Prime Contractor or a Sub-Contractor:    

	Fiscal Year Ended March 31,
	2020			2019			2018
Prime Contractor	$	6,884,763	92%	$	6,159,918	92%	$	5,626,544	91%
Sub-contractor	579,078		8%	544,119		8%	541,056		9%
Total Revenue	$	7,463,841	100%	$	6,704,037	100%	$	6,167,600	100%

Performance Obligations

Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations do not include negotiated but unexercised options or the unfunded value of expired contracts.

As of March 31, 2020 and 2019, the Company had $6.3 billion and $5.8 billion of remaining performance obligations, respectively. We expect to recognize more than half of the remaining performance obligations as of March 31, 2020 as revenue over the next 12 months, and approximately three quarters over the next 24 months. The remainder is expected to be recognized thereafter.

Contract Balances

As discussed in Note 2, the Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-material contracts are typically billed to the customer at periodic intervals (e.g. monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections results in net contract assets or liabilities being recognized at the end of each reporting period.

Contract assets primarily consist of unbilled receivables typically resulting from revenue recognized exceeding the amount billed to the customer and right to payment is not just subject to the passage of time. Contract liabilities primarily consist of advance payments, billings in excess of costs incurred and deferred revenue. Contract assets and liabilities are reported on a net contract basis at the end of each reporting period. The Company maintains an allowance for doubtful accounts to provide for an estimate of uncollected receivables. Refer to Note 6 for more information on receivables recognized from contracts accounted for under Topic 606.

The following table summarizes the contract balances recognized on the Company’s consolidated balance sheets:

	March 31, 2020		March 31, 2019
Contract assets:
Current	$	988,634	$	846,372
Long-term	62,600		61,391
Total	1,051,234		907,763
Contract liabilities:
Advance payments, billings in excess of costs incurred and deferred revenue	$	26,018	$	21,316

Changes in contract assets and contract liabilities are primarily due to the timing difference between the Company’s performance of services and payments from customers. For fiscal 2020, 2019 and 2018, we recognized revenue of $18.9 million, $25.3 million and $16.2 million, respectively, related to our contract liabilities on April 1, 2019, 2018 and 2017, respectively. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances.