XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Revenue Recognition | 3 Months Ended
--- | ---
Sep. 30, 2020
Revenue From Contract With Customer [Abstract] |
Revenue Recognition |
6. | Revenue Recognition
We disaggregate our revenue arrangements by contract type, customer, whether we perform on the contract as the prime or subcontractor, and whether the solution provided is primarily expertise or technology as defined herein. We believe that these categories allow for a better understanding of the nature, amount, timing, and uncertainty of revenue and cash flows arising from our contracts. Revenue by Contract Type The Company generated revenue on our cost-plus-fee, fixed-price, and time-and-materials contracts as follows during the three months ended September 30, 2020 and 2019 (in thousands):
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, 2020 |  |  | September 30, 2019 |
|  | Domestic |  |  | International |  |  | Total |  |  | Domestic |  |  | International |  |  | Total |
Cost-plus-fee |  | $ | 823,609 |  |  | $ | — |  |  | $ | 823,609 |  |  | $ | 747,714 |  |  | $ | — |  |  | $ | 747,714 |
Fixed-price |  |  | 409,584 |  |  |  | 24,230 |  |  |  | 433,814 |  |  |  | 391,536 |  |  |  | 26,440 |  |  |  | 417,976 |
Time-and-materials |  |  | 184,994 |  |  |  | 17,089 |  |  |  | 202,083 |  |  |  | 185,523 |  |  |  | 12,179 |  |  |  | 197,702 |
Total |  | $ | 1,418,187 |  |  | $ | 41,319 |  |  | $ | 1,459,506 |  |  | $ | 1,324,773 |  |  | $ | 38,619 |  |  | $ | 1,363,392 |
Customer Group The Company generated revenue from our primary customer groups as follows during the three months ended September 30, 2020 and 2019 (in thousands):
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, 2020 |  |  | September 30, 2019 |
|  | Domestic |  |  | International |  |  | Total |  |  | Domestic |  |  | International |  |  | Total |
Department of Defense |  | $ | 1,004,195 |  |  | $ | — |  |  | $ | 1,004,195 |  |  | $ | 937,640 |  |  | $ | — |  |  | $ | 937,640 |
Federal Civilian agencies |  |  | 390,179 |  |  |  | — |  |  |  | 390,179 |  |  |  | 363,993 |  |  |  | — |  |  |  | 363,993 |
Commercial and other |  |  | 23,813 |  |  |  | 41,319 |  |  |  | 65,132 |  |  |  | 23,140 |  |  |  | 38,619 |  |  |  | 61,759 |
Total |  | $ | 1,418,187 |  |  | $ | 41,319 |  |  | $ | 1,459,506 |  |  | $ | 1,324,773 |  |  | $ | 38,619 |  |  | $ | 1,363,392 |
Prime or Subcontractor The Company generated revenue as either the prime or subcontractor as follows during the three months ended September 30, 2020 and 2019 (in thousands):
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, 2020 |  |  | September 30, 2019 |
|  | Domestic |  |  | International |  |  | Total |  |  | Domestic |  |  | International |  |  | Total |
Prime contractor |  | $ | 1,288,705 |  |  | $ | 38,133 |  |  | $ | 1,326,838 |  |  | $ | 1,197,634 |  |  | $ | 37,471 |  |  | $ | 1,235,105 |
Subcontractor |  |  | 129,482 |  |  |  | 3,186 |  |  |  | 132,668 |  |  |  | 127,139 |  |  |  | 1,148 |  |  |  | 128,287 |
Total |  | $ | 1,418,187 |  |  | $ | 41,319 |  |  | $ | 1,459,506 |  |  | $ | 1,324,773 |  |  | $ | 38,619 |  |  | $ | 1,363,392 |
Expertise or Technology The Company generated revenue by providing expertise or technology solutions to our customers as follows during the three months ended September 30, 2020 and 2019 (in thousands):
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, 2020 |  |  | September 30, 2019 |
|  | Domestic |  |  | International |  |  | Total |  |  | Domestic |  |  | International |  |  | Total |
Expertise |  | $ | 723,197 |  |  | $ | 17,486 |  |  | $ | 740,683 |  |  | $ | 709,025 |  |  | $ | 13,328 |  |  | $ | 722,353 |
Technology |  |  | 694,990 |  |  |  | 23,833 |  |  |  | 718,823 |  |  |  | 615,748 |  |  |  | 25,291 |  |  |  | 641,039 |
Total |  | $ | 1,418,187 |  |  | $ | 41,319 |  |  | $ | 1,459,506 |  |  | $ | 1,324,773 |  |  | $ | 38,619 |  |  | $ | 1,363,392 |
Significant E stimates For many of our fixed price revenue arrangements and for revenue arrangements that have award or incentive fees, the Company uses an estimate at completion (EAC) to measure progress towards the complete satisfaction of its performance obligations. For these revenue arrangements, revenue is recognized over time primarily using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. The EAC process requires the Company to use professional judgment when assessing risks, estimating contract revenue and costs, estimating variable consideration, and making assumptions for schedule and technical issues. The Company periodically reassesses its EAC assumptions and updates its estimates as needed. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. Based on changes in a contract’s EAC, a cumulative adjustment to revenue will be recorded. For the three months ended September 30, 2020 and 2019, we recognized an increase to income before income taxes of $7.8 million ($0.22 per diluted share) and $6.5 million ($0.19 per diluted share), respectively, from EAC adjustments. The Company used its statutory tax rate when calculating the impact to diluted earnings per share. Revenue recognized from previously satisfied performance obligations was immaterial for the three months ended September 30, 2020 and 2019. The change in revenue generally relates to final true-up adjustments to our estimated award or incentive fees in the period in which we receive the customer’s final performance score or when we can determine that more objective, contractually-defined criteria have been fully satisfied. Remaining Performance Obligations The Company’s remaining performance obligations balance as of period end represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on our existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle until such task orders are awarded. The remaining performance obligations balance generally increases with the execution of new contracts and converts into revenue as our contractual performance obligations are satisfied. The Company continues to monitor this balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations. Based on this analysis, an adjustment to the period end balance may be required. Our remaining performance obligations balance as of September 30, 2020 was $7.0 billion. The Company expects to recognize approximately 80 percent of our remaining performance obligations balance as revenue over the next twelve months and the remaining 20 percent thereafter.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration