FY24 Pipeline and Capital Deployment Overview
NON-GAAP FINANCIAL INFORMATION (Unaudited)
(a) Represents the reduction to our provision for claimed indirect costs recorded during the second quarter of fiscal 2024, which resulted in a
corresponding increase to revenue, as a result of the Defense Contract Audit Agency's findings related to its audit of our claimed indirect costs for fiscal
2022. See Note 15, "Commitments and Contingencies," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter
ended December 31, 2023 for further information.
(b) Represents costs associated with the acquisition efforts of the Company related to transactions for which the Company has entered into a letter of
intent to acquire a controlling financial interest in the target entity, as well as the divestiture costs incurred in divesting a portion of our business.
Acquisition and divestiture costs primarily include costs associated with (i) buy-side and sell-side due diligence activities, (ii) compensation expenses
associated with employee retention, and (iii) legal and advisory fees, primarily associated with the acquisitions of Liberty IT Solutions, LLC ("Liberty")
and Tracepoint Holdings, LLC ("Tracepoint") in fiscal 2022, and the acquisition of EverWatch Corp. ("EverWatch") and the divestitures of our
management consulting business serving the Middle East and North Africa ("MENA") and our Managed Threat Services business ("MTS") in fiscal 2023.
See Note 5, "Acquisition, Goodwill and Intangible Assets," to the condensed consolidated financial statements in the Company's Form 10-Q for the
quarter ended December 31, 2023 for further information.
(c) Reflects expenses associated with debt financing activities incurred during the second quarters of fiscal 2024 and 2023.
(d) Amortization expense associated with acquired intangibles from significant acquisitions. Significant acquisitions include acquisitions which the
Company considers to be beyond the scope of our normal operations. Significant acquisition amortization includes amortization expense associated
with the acquisition of Liberty in the second quarter of fiscal 2022 and EverWatch in the third quarter of fiscal 2023.
(e) Reserve associated with the U.S. Department of Justice's investigation of the Company. See Note 15, "Commitments and Contingencies," to the
condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further information.
(f) Reflects the combination of Interest expense and Other income, net from the condensed consolidated statement of operations.
(g) Represents the gain recognized on the divestitures of the Company's MENA business in the second quarter of fiscal 2023, its MTS business in the
third quarter of fiscal 2023, and the gain on the deconsolidation of an artificial intelligence software platform business in the third quarter of fiscal
2023.
(h) Reflects the tax effect of adjustments at an assumed effective tax rate of 26%, which approximates the blended federal and state tax rates, and
consistently excludes the impact of other tax credits and incentive benefits realized. The tax effect of certain discrete items is calculated specifically and
may vary from the general 26% rate. The tax effect also includes the indirect effects of uncertainty around the application of Section 174 of the Tax Cuts
and Jobs Act of 2017 ($26.0 million and $22.0 million for the three and nine months ended December 31, 2023, respectively). See Note 10, "Income
Taxes," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further
information.
(i) Excludes adjustments of approximately $1.2 million and $3.9 million of net earnings for the three and nine months ended December 31, 2023,
respectively, and approximately $0.5 million and $2.6 million of net earnings for the three and nine months ended December 31, 2022, respectively,
associated with the application of the two-class method for computing diluted earnings per share.
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