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Long-term Debt | 6 Months Ended
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Dec. 31, 2018
Long Term Debt [Abstract] |
Long-term Debt |
10. | Long-term Debt
Long-term debt consisted of the following (in thousands):
|  | December 31, |  |  | June 30, |
|  | 2018 |  |  | 2018 |
Bank credit facility – term loans |  | $ | 914,934 |  |  | $ | 938,394 |
Bank credit facility – revolver loans |  |  | 150,000 |  |  |  | 135,000 |
Principal amount of long-term debt |  |  | 1,064,934 |  |  |  | 1,073,394 |
Less unamortized discounts and debt issuance costs |  |  | (9,898 | ) |  |  | (11,054 | )
Total long-term debt |  |  | 1,055,036 |  |  |  | 1,062,340 |
Less current portion |  |  | (46,920 | ) |  |  | (46,920 | )
Long-term debt, net of current portion |  | $ | 1,008,116 |  |  | $ | 1,015,420 |
Bank Credit Facility The Company has a $2,038.4 million credit facility (the Credit Facility), which consists of an $1,100.0 million revolving credit facility (the Revolving Facility) and a $938.4 million term loan (the Term Loan). The Revolving Facility has subfacilities of $100.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. At any time and so long as no default has occurred, the Company has the right to increase the Revolving Facility or the Term Loan in an aggregate principal amount of up to the greater of $400.0 million or an amount subject to 2.75 times senior secured leverage, calculated assuming the Revolving Facility is fully drawn, with applicable lender approvals. The Credit Facility is available to refinance existing indebtedness and for general corporate purposes, including working capital expenses and capital expenditures. The Revolving Facility is a secured facility that permits continuously renewable borrowings of up to $1,100.0 million. As of December 31, 2018, the Company had $150.0 million outstanding under the Revolving Facility and no borrowings on the swing line. The Company pays a quarterly facility fee for the unused portion of the Revolving Facility. The Term Loan is a five-year secured facility under which principal payments are due in quarterly installments of $11.7 million through June 30, 2021 and $23.5 million thereafter until the balance is due in full on June 30, 2023. As of December 31, 2018, the Company had $914.9 million outstanding under the Term Loan. The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Eurodollar rate plus, in each case, an applicable rate based upon the Company’s consolidated total leverage ratio. As of December 31, 2018, the effective interest rate, including the impact of the Company’s floating-to-fixed interest rate swap agreements and excluding the effect of amortization of debt financing costs, for the outstanding borrowings under the Credit Facility was 3.27 percent. The Credit Facility requires the Company to comply with certain financial covenants, including a maximum senior secured leverage ratio, a maximum total leverage ratio and a minimum fixed charge coverage ratio. The Credit Facility also includes customary negative covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or investments, transfer assets, declare dividends or redeem or repurchase capital stock or make other distributions, prepay subordinated indebtedness and engage in mergers, acquisitions or other business combinations, in each case except as expressly permitted under the Credit Facility. As of December 31, 2018, the Company was in compliance with all of the financial covenants. A majority of the Company’s assets serve as collateral under the Credit Facility. All debt issuance costs are being amortized from the date incurred to the expiration date of the Credit Facility. On January 17, 2019, CACI exercised the accordion feature under its Credit Facility, increasing the capacity of the Revolving Facility by $400.0 million. As a result, the Revolving Facility capacity has increased from $1.1 billion to $1.5 billion. Cash Flow Hedges The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate fluctuations. The Company has entered into several floating-to-fixed interest rate swap agreements for an aggregate notional amount of $700.0 million which hedge a portion of the Company’s floating rate indebtedness. The swaps mature at various dates through 2022. The Company has designated the swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The interest rate swap agreements are highly correlated to the changes in interest rates to which the Company is exposed. Unrealized gains and losses on these swaps are designated as effective or ineffective. Realized gains and losses in connection with each required interest payment are reclassified from accumulated other comprehensive income or loss to interest expense. The Company does not hold or issue derivative financial instruments for trading purposes. The effect of derivative instruments in the consolidated statements of operations and accumulated other comprehensive loss for the three and six months ended December 31, 2018 and 2017 is as follows (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | December 31, |  |  | December 31, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Gain (loss) recognized in other comprehensive income |  | $ | (2,598 | ) |  | $ | 1,867 |  |  | $ | (1,573 | ) |  | $ | 1,521 |
Amounts reclassified to earnings from accumulated other comprehensive loss |  |  | (1,180 | ) |  |  | 746 |  |  |  | (1,988 | ) |  |  | 1,600 |
Net current period other comprehensive income |  | $ | (3,778 | ) |  | $ | 2,613 |  |  | $ | (3,561 | ) |  | $ | 3,121 |
The aggregate maturities of long-term debt at December 31, 2018 are as follows (in thousands):
Twelve months ending December 31, |  |  |  |
2019 |  | $ | 46,920 |
2020 |  |  | 46,920 |
2021 |  |  | 70,380 |
2022 |  |  | 93,839 |
2023 |  |  | 806,875 |
Principal amount of long-term debt |  |  | 1,064,934 |
Less unamortized discounts and debt issuance costs |  |  | (9,898 | )
Total long-term debt |  | $ | 1,055,036 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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