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Revenues and Contract Balances
9 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues and Contract Balances Revenues and Contract Balances
Disaggregation of Revenues
The Company disaggregates revenues by contract type, customer type, prime vs. subcontractor, and whether the solution provided is primarily Expertise or Technology. These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.
Disaggregated revenues by contract type were as follows (in thousands):
Three Months Ended
March 31, 2023
Nine Months Ended
March 31, 2023
DomesticInternationalTotalDomesticInternationalTotal
Cost-plus-fee$1,008,688 $— $1,008,688 $2,896,778 $— $2,896,778 
Fixed-price494,095 35,691 529,786 1,420,858 100,057 1,520,915 
Time-and-materials191,696 14,100 205,796 540,913 40,839 581,752 
Total$1,694,479 $49,791 $1,744,270 $4,858,549 $140,896 $4,999,445 
Three Months Ended
March 31, 2022
Nine Months Ended
March 31, 2022
DomesticInternationalTotalDomesticInternationalTotal
Cost-plus-fee$889,624 $— $889,624 $2,672,695 $— $2,672,695 
Fixed-price468,116 35,058 503,174 1,242,601 101,568 1,344,169 
Time-and-materials175,140 16,042 191,182 499,556 44,236 543,792 
Total$1,532,880 $51,100 $1,583,980 $4,414,852 $145,804 $4,560,656 
Disaggregated revenues by customer type were as follows (in thousands):
Three Months Ended
March 31, 2023
Nine Months Ended
March 31, 2023
DomesticInternationalTotalDomesticInternationalTotal
Department of Defense$1,298,700 $— $1,298,700 $3,554,080 $— $3,554,080 
Federal Civilian agencies355,612 — 355,612 1,179,467 — 1,179,467 
Commercial and other40,167 49,791 89,958 125,002 140,896 265,898 
Total$1,694,479 $49,791 $1,744,270 $4,858,549 $140,896 $4,999,445 
Three Months Ended
March 31, 2022
Nine Months Ended
March 31, 2022
DomesticInternationalTotalDomesticInternationalTotal
Department of Defense$1,118,665 $— $1,118,665 $3,155,806 $— $3,155,806 
Federal Civilian agencies380,837 — 380,837 1,166,398 — 1,166,398 
Commercial and other33,378 51,100 84,478 92,648 145,804 238,452 
Total$1,532,880 $51,100 $1,583,980 $4,414,852 $145,804 $4,560,656 
Disaggregated revenues by prime vs. subcontractor were as follows (in thousands):
Three Months Ended
March 31, 2023
Nine Months Ended
March 31, 2023
DomesticInternationalTotalDomesticInternationalTotal
Prime contractor$1,511,758 $44,975 $1,556,733 $4,339,579 $128,303 $4,467,882 
Subcontractor182,721 4,816 187,537 518,970 12,593 531,563 
Total$1,694,479 $49,791 $1,744,270 $4,858,549 $140,896 $4,999,445 
Three Months Ended
March 31, 2022
Nine Months Ended
March 31, 2022
DomesticInternationalTotalDomesticInternationalTotal
Prime contractor$1,373,045 $46,760 $1,419,805 $3,964,227 $132,983 $4,097,210 
Subcontractor159,835 4,340 164,175 450,625 12,821 463,446 
Total$1,532,880 $51,100 $1,583,980 $4,414,852 $145,804 $4,560,656 
Disaggregated revenues by expertise or technology were as follows (in thousands):
Three Months Ended
March 31, 2023
Nine Months Ended
March 31, 2023
DomesticInternationalTotalDomesticInternationalTotal
Expertise$793,993 $18,307 $812,300 $2,237,146 $50,977 $2,288,123 
Technology900,486 31,484 931,970 2,621,403 89,919 2,711,322 
Total$1,694,479 $49,791 $1,744,270 $4,858,549 $140,896 $4,999,445 
Three Months Ended
March 31, 2022
Nine Months Ended
March 31, 2022
DomesticInternationalTotalDomesticInternationalTotal
Expertise$697,347 $18,852 $716,199 $2,049,180 $56,374 $2,105,554 
Technology835,533 32,248 867,781 2,365,672 89,430 2,455,102 
Total$1,532,880 $51,100 $1,583,980 $4,414,852 $145,804 $4,560,656 
Changes in Estimates
Aggregate net changes in estimates for the three and nine months ended March 31, 2023 reflected an increase to income before income taxes of $5.3 million ($0.17 per diluted share) and $16.8 million ($0.53 per diluted share), respectively, compared with $13.0 million ($0.40 per diluted share) and $21.2 million ($0.66 per diluted share), for the three and nine months ended March 31, 2022. The Company uses its statutory tax rate when calculating the impact to diluted earnings per share.
Revenues recognized from previously satisfied performance obligations were not material for the three and nine months ended March 31, 2023 and 2022, respectively. The change in revenues generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customer’s final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied.
Remaining Performance Obligations
As of March 31, 2023, the Company had $8.4 billion of remaining performance obligations and expects to recognize approximately 49% and 71% over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.
Contract Balances
Contract balances consisted of the following (in thousands):
Description of Contract Related BalanceFinancial Statement ClassificationMarch 31, 2023June 30, 2022
Billed and billable receivablesAccounts receivable, net$865,828 $800,597 
Contract assets – current unbilled receivablesAccounts receivable, net138,905 125,547 
Contract assets – current costs to obtainPrepaid expenses and other current assets5,174 5,167 
Contract assets – noncurrent unbilled receivablesAccounts receivable, long-term12,653 10,199 
Contract assets – noncurrent costs to obtainOther long-term assets8,853 10,703 
Contract liabilities – current deferred revenue and other contract liabilitiesOther accrued expenses and current liabilities(108,325)(84,810)
Contract liabilities – noncurrent deferred revenue and other contract liabilitiesOther long-term liabilities(5,814)(7,552)
During the three and nine months ended March 31, 2023, we recognized $10.8 million and $81.8 million of revenues, respectively, compared with $4.1 million and $72.4 million of revenues for the three and nine months ended March 31, 2022, that was included in a previously recorded contract liability as of the beginning of the period.