CACI INTERNATIONAL INC /DE/CACI

CACI INTERNATIONAL INC /DE/ Fair Value Disclosure

10-KFiled Aug 7, 20252 min read
Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and categorizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data which requires development of assumptions that market participants would use in pricing the asset or liability (Level 3).
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts.
The financial instruments measured at fair value on a recurring basis consist of the following (dollars in thousands):
 Financial Statement
Classification		Fair Value
Hierarchy		As of June 30,
20252024
Description of Financial InstrumentFair Value
Contingent considerationOther accrued expenses and current liabilitiesLevel 3$(3,678)$(3,061)
Contingent considerationOther long-term liabilitiesLevel 3$(10,017)$(13,737)
Interest rate swap agreementsOther long-term assetsLevel 2$9,839 $33,327 
Interest rate swap agreementsOther long-term liabilitiesLevel 2$(1,503)$— 
Interest rate swap agreementsPrepaid expenses and other current assetsLevel 2$220 $— 
The outstanding principal amount of the Company’s long-term debt approximates its fair value at June 30, 2025. The fair value of the Company’s debt was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.
The Company uses interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.
The Company recognized contingent consideration liabilities in connection with certain acquisitions, representing potential earnout payments and other contingent payments. The fair values of these liabilities were determined using a valuation model, which included an assessment of the most likely outcome, assumptions related to projected earnings of the acquired company, and the application of a discount rate, when applicable. Fair value of contingent consideration is reassessed quarterly, including an analysis of the significant inputs used in the evaluation, as well as the accretion of the discount. Changes in the fair value of contingent consideration are reflected within indirect costs and selling expenses

Historical Timeline

Fiscal YearFiled
2025Aug 7, 2025Showing above
2024Aug 8, 2024
2023Aug 10, 2023
2022Aug 11, 2022
2021Aug 17, 2021
2020Aug 14, 2020
2019Aug 21, 2019
2018Aug 20, 2018
2017Aug 21, 2017
2016Aug 24, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance