On June 19, 2026, the Company entered into a definitive agreement to acquire the Ultra I&C Mission Solutions business (“Ultra Mission Solutions”) for $720 million, subject to certain customary adjustments. Ultra Mission Solutions is a defense technology business specializing in mission critical software, encryption, and edge compute products. Contingent upon customary closing conditions, including a regulatory approval, the transaction is expected to close during the second quarter of fiscal year 2027.

On April 6, 2026, the Company acquired Defy Security for $235 million subject to customary adjustments including net working capital. Defy Security will enable the Company to deliver end-to-end, tech-enabled cybersecurity solutions, and products for U.S. and foreign customers. The acquisition was funded with cash on hand.

The acquisition is accounted for under the acquisition method of accounting, which requires the total acquisition consideration to be allocated to the assets acquired and liabilities assumed based on an estimate of the acquisition date fair value, with the difference reflected in goodwill. The provisional goodwill of $129 million is primarily attributable to the expected synergies between the Company and Defy Security and is partially deductible for tax purposes.

The Company provisionally recognized $86 million of intangible assets which consists primarily of contract related assets and are being amortized over the estimated useful life of eight years. The remaining net assets acquired are provisionally recognized at $20 million, which includes current billed and unbilled accounts receivable of $221 million and non‑current unbilled receivables of $89 million, partially offset by current accounts payable and accrued expenses of $212 million and non‑current accrued expenses of $80 million.

The valuation of Defy Security’s assets acquired and liabilities assumed are provisional and based on valuation estimates and assumptions. Although the Company does not currently expect material changes to the initial value of net assets acquired, the Company continues to evaluate assumptions related to the valuation of the assets acquired and liabilities assumed. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition date.

As of June 30, 2026 and March 31, 2026, goodwill was $2,528 million and $2,399 million, respectively. The $129 million increase in the carrying amount of goodwill was attributable to the Company's acquisition of Defy Security.


	June 30, 2026						March 31, 2026
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Amortizable intangible assets:
Customer contracts and related customer relationships	$	705	$	383	$	322	$	619	$	365	$	254
Software	232		147		85		202		137		65
Total amortizable intangible assets	$	937	$	530	$	407	$	821	$	502	$	319
Unamortizable intangible assets:
Trade name	$	190	$	—	$	190	$	190	$	—	$	190
Total	$	1,127	$	530	$	597	$	1,011	$	502	$	509