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v3.26.1

Debt | 12 Months Ended
--- | ---
Mar. 31, 2026
Debt Disclosure [Abstract] |
Debt | Debt Debt consisted of the following on the dates below:
|  | March 31, 2026 |  | March 31, 2025
| Maturity | Interest Rate |  | Outstanding Balance |  | Interest Rate |  | Outstanding Balance
Term Loan A-1 | 9/7/2027 | 5.018 | % |  | $ | 714 |  |  | 5.675 | % |  | $ | 1,526 |
Term Loan A-2 | 2/27/2031 | 4.923 | % |  | 750 |  |  | — | % |  | — |
Senior Notes due 2028 | 9/1/2028 | 3.875 | % |  | 700 |  |  | 3.875 | % |  | 700 |
Senior Notes due 2029 | 7/1/2029 | 4.000 | % |  | 500 |  |  | 4.000 | % |  | 500 |
Senior Notes due 2033 | 8/4/2033 | 5.950 | % |  | 650 |  |  | 5.950 | % |  | 650 |
Senior Notes due 2035 | 4/15/2035 | 5.950 | % |  | 650 |  |  | 5.950 | % |  | 650 |
Less: Unamortized debt issuance costs and discount on debt |  | (24) |  |  |  |  | (28) |
Total |  | 3,940 |  |  |  |  | 3,998 |
Less: Current portion of long-term debt |  | (19) |  |  |  |  | (83) |
Long-term debt, net of current portion |  | $ | 3,921 |  |  |  |  | $ | 3,915 |
Credit Agreement Booz Allen Hamilton Inc., a wholly owned subsidiary of Booz Allen Hamilton Holding Corporation, as borrower, and Booz Allen Hamilton Holding Corporation, as guarantor, are parties to a Credit Agreement dated as of July 31, 2012, as amended, which as of March 31, 2026, provides the Company with facility term loans of $1,464 million and a $1,500 million revolving credit facility, with a sub-limit for letters of credit of $200 million. On February 27, 2026 (the “Eleventh Amendment Effective Date”), the eleventh amendment to the Credit Agreement (the “Eleventh Amendment”), dated as of July 31, 2012 (as amended prior to the Eleventh Amendment Effective Date, the “Existing Credit Agreement” and, as amended by the Eleventh Amendment, the “Credit Agreement”) among Booz Allen Hamilton Inc., as borrower, and Booz Allen Hamilton Holding Corporation as guarantor, with Bank of America, N.A., as administrative agent and the lenders from time to time party thereto, provided for a refinancing and modification of the credit facilities, including the amendments set forth in the sections below. In addition, pursuant to the Eleventh Amendment, certain other amendments to the Existing Credit Agreement were made, including amendments to certain negative covenants in the Existing Credit Agreement to (amongst other things): (i) increase the size of certain baskets that permit the incurrence of additional indebtedness and related liens and (ii) expand the Company’s ability to make dividends, equity repurchases and other distributions, in each case subject to specified conditions (including compliance with the applicable financial covenant and the absence of a continuing default). The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. In connection with Booz Allen Hamilton obtaining investment grade ratings from both Moody's and S&P, certain activities previously restricted by certain negative covenants are permitted subject to pro forma compliance with the financial covenants and no events of default having occurred or are continuing. In addition, Booz Allen Hamilton is required to meet certain financial covenants at each quarter end, namely the Consolidated Net Total Leverage Ratio. As of March 31, 2026 and March 31, 2025, Booz Allen Hamilton was in compliance with all financial covenants associated with its debt. Borrowings under the Credit Agreement incur interest at a variable rate. As of March 31, 2026, Booz Allen Hamilton had interest rate swaps with an aggregate notional amount of $350 million. These instruments hedge the variability of cash outflows for interest payments on these variable rate facilities. The Company's objectives in using cash flow hedges are to reduce volatility due to interest rate movements and to add stability to interest expense (see Note 11, “Derivatives,” to the consolidated financial statements for additional information about these interest rate swaps). Term Loans Prior to the Eleventh Amendment Effective Date, approximately $1,464 million of tranche A term loans (the “Term Loan A-1”) were outstanding under the Existing Credit Agreement. Pursuant to the Eleventh Amendment, certain lenders made term loans under a new tranche of term loans (the “Term Loan A-2”) with a maturity of February 27, 2031 under which the Company borrowed an aggregate principal amount of $750 million. The proceeds of such borrowings under Term Loan A-2 were used to repay $750 million of the aggregate principal outstanding under the Term Loan A-1. The terms of the remaining Term Loan A-1 debt remain unchanged and it is still governed under the Tenth Amendment to the Existing Credit Agreement (the “Tenth Amendment”), entered into on July 27, 2023. Pursuant to the Tenth Amendment, the rate at which Term Loan A-1 bears interest is based either on Term SOFR (subject to a 0.10% adjustment and a floor of zero) for the applicable interest period or a base rate (equal to the highest of (i) the administrative agent’s prime corporate rate, (ii) the overnight federal funds rate plus 0.50% and (iii) three-month Term SOFR (subject to a 0.10% adjustment and a floor of zero) plus 1.00%), in each case plus an applicable margin, payable at the end of the applicable interest period and in any event at least quarterly. The applicable margin for Term Loan A-1 ranges from 1.00% to 2.00% for Term SOFR loans and zero to 1.00% for base rate loans, in each case based on the lower of (i) the applicable rate per annum determined pursuant to a consolidated total net leverage ratio grid and (ii) the applicable rate per annum determined pursuant to a ratings grid. Term Loan A-1 amortizes in consecutive quarterly installments in an amount equal to 1.25% of the stated principal amount of Term Loan A-1 and the remaining balance of Term Loan A-1 is payable upon maturity. Pursuant to the Eleventh Amendment, the rate at which Term Loan A-2 and the Revolving Credit facility bears interest is based either on Term SOFR for the applicable interest period or a base rate (equal to the highest of (i) the administrative agent’s prime corporate rate, (ii) the overnight federal funds rate plus 0.50% and (iii) three-month Term SOFR (subject to a floor of zero) plus 1.00%, in each case plus an applicable margin, payable at the end of the applicable interest period and in any event at least quarterly. The applicable margin for Term Loan A-2 and the Revolving Credit facility ranges from 1.00% to 1.63% for Term SOFR loans and zero to 0.63% for base rate loans, in each case based on the lower of (i) the applicable rate per annum determined pursuant to a consolidated total net leverage ratio grid and (ii) the applicable rate per annum determined pursuant to a ratings grid. Unused New Revolving Commitments are subject to a quarterly fee ranging from 0.10% to 0.25% based on the lower of (i) the applicable fee rate per annum determined pursuant to a consolidated total net leverage ratio grid and (ii) the applicable fee rate per annum determined pursuant to a ratings grid. Term Loan A-2 amortizes in consecutive quarterly installments in an amount equal to 0.625% of the stated principal amount for the first two years after funding, and 1.25% of the stated principal amount thereafter and the remaining balance of the Term Loan A-2 is payable upon maturity. Revolving Credit Facility Prior to the Eleventh Amendment Effective Date, the Existing Credit Agreement provided for $1.0 billion of revolving commitments (the “Existing Revolving Commitments”). Pursuant to the Eleventh Amendment, the Existing Revolving Commitments were replaced in full with new revolving commitments and then increased by $500 million, resulting in aggregate revolving commitments under the Credit Agreement (the “Revolving Credit Facility”) of $1.5 billion, treated as a single revolving tranche with a maturity of February 27, 2031. The Revolving Credit Facility is expected to be used for general corporate purposes, including working capital as needed. While the Company occasionally borrows under the Revolving Credit Facility for our working capital needs, there were no borrowings during the fiscal year ended March 31, 2026. During the fourth quarter of fiscal 2025, the Company borrowed $200 million under the Revolving Credit Facility for our working capital needs, which was subsequently repaid with the proceeds from the bond offering in the same quarter. As of March 31, 2026 and March 31, 2025, respectively, there was no outstanding balance on the Revolving Credit Facility. Booz Allen Hamilton has also agreed to pay customary letter of credit and agency fees. Senior Notes The following table summarizes additional material terms of the senior notes issued by Booz Allen Hamilton as of March 31, 2026:
| Indenture Date | Principal (in millions) | Interest Payable | Issuance Costs (in millions)
Senior Notes due 2028 | 8/24/2020 | $700 | March and September 1 | $9
Senior Notes due 2029 | 6/17/2021 | $500 | July and January 1 | $7
Senior Notes due 2033 | 8/4/2023 | $650 | February and August 4 | $12
Senior Notes due 2035 | 3/14/2025 | $650 | April and October 15 | $6
Total Senior Notes | $2,500 |  |
The Senior Notes due 2035 and 2033 are fully and unconditionally guaranteed on an unsecured and unsubordinated basis by Booz Allen Hamilton Holding Corporation and rank equally and ratably in right of payment with all of Booz Allen Hamilton’s and Booz Allen Hamilton Holding Corporation’s other unsecured and unsubordinated indebtedness outstanding from time to time, pursuant to the relevant indenture. The Senior Notes due 2029 and 2028 are unsecured and are guaranteed by certain subsidiaries of Booz Allen Hamilton and rank equally in right of payment with all of Booz Allen Hamilton’s and the respective subsidiary guarantors’ existing and future senior indebtedness and rank senior in right of payment to any of Booz Allen Hamilton’s future subordinated indebtedness, pursuant to the relevant indenture. We refer to the Senior Notes due 2028, Senior Notes due 2029, Senior Notes due 2033 and Senior Notes due 2035 together, as the “Senior Notes” herein. Interest is payable on the Senior Notes semi-annually in cash in arrears, with the principal due at maturity. Issuance Costs were recorded as an offset against the carrying value of respective debt and are being amortized to interest expense over the term of the respective debt. All the Senior Notes’ indentures contain certain covenants, events of default, and other customary provisions. In connection with the Senior Notes obtaining investment grade ratings from Moody’s and S&P, in January 2023, certain negative covenants in the indentures governing the Senior Notes 2028 and Senior Notes 2029 were suspended. The Senior Notes are generally subject to redemption, in whole or in part, at Booz Allen Hamilton’s option, in whole or in part, at any time and from time to time, at the redemption prices specified in their respective indenture and outlined below:
|  | Optional Redemption Date |  | Redemption Price
Senior Notes due 2028 |  | present - 8/31/2025 |  | 100.969% of the principal amount being redeemed*
|  | 9/1/2025 - maturity |  | 100% of the principal amount being redeemed*
Senior Notes due 2029 |  | present - 6/30/2025 |  | 102% of the principal amount being redeemed*
|  | 7/1/2025 - 6/30/2026 |  | 101% of the principal amount being redeemed*
|  | 7/1/2026 - maturity |  | 100% of the principal amount being redeemed*
Senior Notes due 2033 |  | present - 5/3/2033 |  | The greater of 1) the present value of the remaining payments plus 100% of the principal being redeemed, less accrued interest and 2) 100% of the principal amount being redeemed*
|  | 5/4/2033 - maturity |  | 100% of the principal amount being redeemed*
Senior Notes due 2035 |  | present - 1/14/2035 |  | The greater of 1) the present value of the remaining payments plus 100% of the principal being redeemed, less accrued interest and 2) 100% of the principal amount being redeemed*
|  | 1/15/2035 - maturity |  | 100% of the principal amount being redeemed *
*plus any unpaid interest Scheduled Maturities and Interest Expense The following table summarizes required future debt repayments:
|  | Payments Due By March 31,
|  | Total |  | 2027 |  | 2028 |  | 2029 |  | 2030 |  | 2031 |  | Thereafter
Term Loan A-1 |  | $ | 714 |  |  | $ | — |  |  | $ | 714 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Term Loan A-2 |  | 750 |  |  | 19 |  |  | 18 |  |  | 37 |  |  | 38 |  |  | 638 |  |  | — |
Senior Notes due 2028 |  | 700 |  |  | — |  |  | — |  |  | 700 |  |  | — |  |  | — |  |  | — |
Senior Notes due 2029 |  | 500 |  |  | — |  |  | — |  |  | — |  |  | 500 |  |  | — |  |  | — |
Senior Notes due 2033 |  | 650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 650 |
Senior Notes due 2035 |  | 650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 650 |
Interest on indebtedness |  | 1,017 |  |  | 198 |  |  | 176 |  |  | 146 |  |  | 120 |  |  | 106 |  |  | 271 |
Total |  | $ | 4,981 |  |  | $ | 217 |  |  | $ | 908 |  |  | $ | 883 |  |  | $ | 658 |  |  | $ | 744 |  |  | $ | 1,571 |
Interest expense consisted of the following:
| Fiscal Year Ended March 31,
| 2026 |  | 2025 |  | 2024
Term Loan A-1 | $ | 83 |  |  | $ | 100 |  |  | $ | 108 |
Term Loan A-2 | — |  |  | — |  |  | — |
Revolving Credit Facility | — |  |  | 1 |  |  | 1 |
Senior Notes | 125 |  |  | 88 |  |  | 73 |
Amortization of Debt Issuance Cost (DIC) and Original Issue Discount (OID) (1) | 5 |  |  | 6 |  |  | 5 |
Interest Rate Swaps | (1) |  |  | (10) |  |  | (15) |
Other | — |  |  | 1 |  |  | 1 |
Total Interest Expense | $ | 212 |  |  | $ | 186 |  |  | $ | 173 |
(1) DIC and OID on the Term Loans and Senior Notes are recorded as a reduction of long-term debt in the consolidated balance sheet and are amortized ratably over the life of the related debt using the effective rate method. DIC on the Company's Revolving Credit Facility is recorded as a long-term asset on the consolidated balance sheet and amortized ratably over the term of the Revolving Credit Facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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