Revenues and Contract Balances

3 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenues and Contract Balances

Note 4 – 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						Three Months Ended
	September 30, 2022						September 30, 2021
	Domestic		International		Total		Domestic		International		Total
Cost-plus-fee	$	934,746	$	—	$	934,746	$	893,713	$	—	$	893,713
Fixed-price		448,562		33,211		481,773		374,474		33,231		407,705
Time-and-materials		175,587		13,653		189,240		175,535		13,945		189,480
Total	$	1,558,895	$	46,864	$	1,605,759	$	1,443,722	$	47,176	$	1,490,898

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

	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
	Domestic		International		Total		Domestic		International		Total
Department of Defense	$	1,095,320	$	—	$	1,095,320	$	1,000,127	$	—	$	1,000,127
Federal Civilian agencies		424,087		—		424,087		413,664		—		413,664
Commercial and other		39,488		46,864		86,352		29,931		47,176		77,107
Total	$	1,558,895	$	46,864	$	1,605,759	$	1,443,722	$	47,176	$	1,490,898

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

	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
	Domestic		International		Total		Domestic		International		Total
Prime contractor	$	1,407,454	$	42,856	$	1,450,310	$	1,298,653	$	42,906	$	1,341,559
Subcontractor		151,441		4,008		155,449		145,069		4,270		149,339
Total	$	1,558,895	$	46,864	$	1,605,759	$	1,443,722	$	47,176	$	1,490,898

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

	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
	Domestic		International		Total		Domestic		International		Total
Expertise	$	717,650	$	16,553	$	734,203	$	683,624	$	19,422	$	703,046
Technology		841,245		30,311		871,556		760,098		27,754		787,852
Total	$	1,558,895	$	46,864	$	1,605,759	$	1,443,722	$	47,176	$	1,490,898

Changes in Estimates

Aggregate net changes in estimates for the three months ended September 30, 2022 reflected an increase to income before income taxes of $5.7 million ($0.18 per diluted share), compared with $2.8 million ($0.09 per diluted share) for the three months ended September 30, 2021.  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 months ended September 30, 2022 and 2021, 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 September 30, 2022, the Company had $9.2 billion of remaining performance obligations and expects to recognize approximately 44% and 62% 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):

		September 30,			June 30,
Description of Contract Related Balance	Financial Statement Classification	2022			2022
Billed and billable receivables	Accounts receivable, net	$	656,253		$	800,597
Contract assets – current unbilled receivables	Accounts receivable, net		138,524			125,547
Contract assets – current costs to obtain	Prepaid expenses and other current assets		5,270			5,167
Contract assets – noncurrent unbilled receivables	Accounts receivable, long-term		10,623			10,199
Contract assets – noncurrent costs to obtain	Other long-term assets		10,307			10,703
Contract liabilities – current deferred    revenue and other contract liabilities	Other accrued expenses and current liabilities		(104,519	)		(84,810	)
Contract liabilities – noncurrent deferred    revenue and other contract liabilities	Other long-term liabilities		(5,775	)		(7,552	)

During the three months ended September 30, 2022, we recognized $50.5 million of revenues, compared with $54.7 of revenues for the three months ended September 30, 2021, that was included in a previously recorded contract liability as of the beginning of the period.