During fiscal 2026, Booz Allen Hamilton Inc., a wholly owned subsidiary of the Company, committed to invest up to $400 million and $100 million, respectively, as a limited partner in two separate venture capital funds (the “Funds”), which are accounted for as equity method investments and considered related parties. The commitments are subject to capital calls to be funded over the Funds’ 10-year terms, which may be extended in accordance with the Funds’ governing documents. The Company funded a total investment of $178 million in the Funds in the fourth quarter, and believes that future capital calls will be concentrated in the earlier years of the Funds’ operation as the Funds execute on their expected investment strategy. As of March 31, 2026, the Company’s unfunded capital commitments as a limited partner in the Funds was $322 million.

As of March 31, 2026 and 2025, the total of our investments that are accounted for at fair value on a non-recurring basis under the measurement alternative were $146 million and $85 million, respectively. While these assets are not measured at fair value on an ongoing basis, they are subject to fair value adjustments in certain circumstances (e.g., observable price changes or impairment).


	March 31, 2026
	Level 1		Level 2		Total
Assets:
Money market funds	$	307	$	—	$	307


Long term deferred compensation plan asset (2)	40		—		40
Total Assets	$	347	$	—	$	347
Liabilities:
Current derivative instruments (1)	—		1		1

Long term deferred compensation plan liability (2)	40		—		40
Total Liabilities	$	40	$	1	$	41


	March 31, 2025
	Level 1		Level 2		Total
Assets:
Money market funds	$	802	$	—	$	802
Current derivative instruments (1)	—		1		1

Long term deferred compensation plan asset (2)	$	35	$	—	$	35
Total Assets	$	837	$	1	$	838
Liabilities:

Current derivative instruments (1)	$	—	$	1	$	1
Long-term derivative instruments (1)	—		2		2
Long term deferred compensation plan liability (2)	35		—		35
Total liabilities	$	35	$	3	$	38

(1) The Company’s interest rate swaps are considered over-the-counter derivatives which are recorded in the consolidated balance sheet on a gross basis at estimated fair value. Fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 11, “Derivatives,” to the consolidated financial statements for further information on the Company’s derivative instruments designated as cash flow hedges.

(2) Investments in this category consist primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets are recorded in other long-term assets and represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan, which is recorded in other long-term liabilities on our consolidated balance sheets.

As of March 31, 2026 and 2025, the Company's cash and cash equivalents presented on the accompanying consolidated balance sheets include the money market funds disclosed in the table above. As of both March 31, 2026 and 2025, the fair value of the Company’s cash and cash equivalents approximated its carrying value.

The Company's long-term debt is carried at amortized cost and fair value is presented quarterly for disclosure purposes. The estimated fair values of debt are determined using quoted prices or other market information obtained from recent trading activity of the debt in markets that are not active (Level 2 inputs). The fair value is corroborated by prices derived from the interest rate spreads of recently completed leveraged loan transactions of a similar credit profile, industry, and terms to that of the Company. The fair value of the Senior Notes are determined using quoted prices or other market information obtained from recent trading activity in the high-yield bond market (Level 2 inputs). The carrying amount and estimated fair value of debt consists of the following:


	March 31, 2026				March 31, 2025
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Term Loan A-1	$	714	$	712	$	1,526	$	1,521
Term Loan A-2	750		743		—		—
3.875% Senior Notes due 2028	700		680		700		666
4.000% Senior Notes due 2029	500		484		500		471
5.950% Senior Notes due 2033	650		663		650		651
5.950% Senior Notes due 2035	650		655		650		645
Total Debt	$	3,964	$	3,937	$	4,026	$	3,954