Revenues and Contract Balances

6 Months Ended

Dec. 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 December 31, 2023						Six Months Ended December 31, 2023
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	1,102,474	$	—	$	1,102,474	$	2,236,909	$	—	$	2,236,909
Fixed-price	485,086		34,458		519,544		952,302		69,319		1,021,621
Time-and-materials	192,448		19,468		211,916		385,965		39,586		425,551
Total	$	1,780,008	$	53,926	$	1,833,934	$	3,575,176	$	108,905	$	3,684,081

	Three Months Ended December 31, 2022						Six Months Ended December 31, 2022
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	953,344	$	—	$	953,344	$	1,888,090	$	—	$	1,888,090
Fixed-price	478,201		31,155		509,356		926,763		64,366		991,129
Time-and-materials	173,630		13,086		186,716		349,217		26,739		375,956
Total	$	1,605,175	$	44,241	$	1,649,416	$	3,164,070	$	91,105	$	3,255,175

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

	Three Months Ended December 31, 2023						Six Months Ended December 31, 2023
	Domestic		International		Total		Domestic		International		Total
Department of Defense	$	1,358,509	$	—	$	1,358,509	$	2,710,815	$	—	$	2,710,815
Federal civilian agencies	389,942		—		389,942		797,286		—		797,286
Commercial and other	31,557		53,926		85,483		67,075		108,905		175,980
Total	$	1,780,008	$	53,926	$	1,833,934	$	3,575,176	$	108,905	$	3,684,081

	Three Months Ended December 31, 2022						Six Months Ended December 31, 2022
	Domestic		International		Total		Domestic		International		Total
Department of Defense	$	1,160,060	$	—	$	1,160,060	$	2,255,380	$	—	$	2,255,380
Federal civilian agencies	399,768		—		399,768		823,855		—		823,855
Commercial and other	45,347		44,241		89,588		84,835		91,105		175,940
Total	$	1,605,175	$	44,241	$	1,649,416	$	3,164,070	$	91,105	$	3,255,175

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

	Three Months Ended December 31, 2023						Six Months Ended December 31, 2023
	Domestic		International		Total		Domestic		International		Total
Prime contractor	$	1,588,589	$	47,788	$	1,636,377	$	3,189,680	$	96,059	$	3,285,739
Subcontractor	191,419		6,138		197,557		385,496		12,846		398,342
Total	$	1,780,008	$	53,926	$	1,833,934	$	3,575,176	$	108,905	$	3,684,081

	Three Months Ended December 31, 2022						Six Months Ended December 31, 2022
	Domestic		International		Total		Domestic		International		Total
Prime contractor	$	1,420,367	$	40,472	$	1,460,839	$	2,827,821	$	83,328	$	2,911,149
Subcontractor	184,808		3,769		188,577		336,249		7,777		344,026
Total	$	1,605,175	$	44,241	$	1,649,416	$	3,164,070	$	91,105	$	3,255,175

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

	Three Months Ended December 31, 2023						Six Months Ended December 31, 2023
	Domestic		International		Total		Domestic		International		Total
Expertise	$	830,647	$	18,894	$	849,541	$	1,687,843	$	39,792	$	1,727,635
Technology	949,361		35,032		984,393		1,887,333		69,113		1,956,446
Total	$	1,780,008	$	53,926	$	1,833,934	$	3,575,176	$	108,905	$	3,684,081

	Three Months Ended December 31, 2022						Six Months Ended December 31, 2022
	Domestic		International		Total		Domestic		International		Total
Expertise	$	725,503	$	16,117	$	741,620	$	1,443,153	$	32,670	$	1,475,823
Technology	879,672		28,124		907,796		1,720,917		58,435		1,779,352
Total	$	1,605,175	$	44,241	$	1,649,416	$	3,164,070	$	91,105	$	3,255,175

Changes in Estimates

Aggregate net changes in estimates for the three and six months ended December 31, 2023 reflected an increase to income before income taxes of $14.6 million ($0.49 per diluted share) and $17.0 million ($0.56 per diluted share), respectively, compared with $5.8 million ($0.18 per diluted share) and $11.5 million ($0.36 per diluted share), for the three and six months ended December 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 six months ended December 31, 2023 and 2022, respectively. The change in revenues recognized from previously satisfied performance obligations generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customer’s final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied.

Remaining Performance Obligations

As of December 31, 2023, the Company had $9.8 billion of remaining performance obligations and expects to recognize approximately 45% and 65% as revenue over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.

Contract Balances

Contract balances consisted of the following (in thousands):

Description of Contract Related Balance	Financial Statement Classification	December 31, 2023		June 30, 2023
Billed and billable receivables	Accounts receivable, net	$	792,647	$	763,547
Contract assets – current unbilled receivables	Accounts receivable, net	154,805		131,399
Contract assets – current costs to obtain	Prepaid expenses and other current assets	5,684		5,163
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term	12,409		11,857
Contract assets – noncurrent costs to obtain	Other long-term assets	10,598		8,294
Contract liabilities – current deferred revenue and other contract liabilities	Other accrued expenses and current liabilities	(128,861)		(138,469)
Contract liabilities – noncurrent deferred revenue and other contract liabilities	Other long-term liabilities	(5,393)		(5,522)

During the three and six months ended December 31, 2023, we recognized $30.0 million and $94.4 million of revenues, respectively, compared with $7.6 million and $58.1 million of revenues for the three and six months ended December 31, 2022, that was included in a previously recorded contract liability as of the beginning of the period.