On August 24, 2026, the Company acquired the Ultra I&C Mission Solutions business (“Ultra Mission Solutions”) for approximately $729 million, subject to certain customary adjustments including net working capital. Ultra Mission Solutions is a defense technology business specializing in mission critical software, encryption, and edge compute products. The acquisition was funded with cash on hand and proceeds from the Company’s recently issued bonds. See Note 8, “Debt”, to the condensed consolidated financial statements for further discussion of the Company’s bonds issued during the period.

The acquisition is accounted for under the acquisition method of accounting, resulting in provisional goodwill of $501 million, which is primarily attributable to the expected synergies between the Company and Ultra Mission Solutions and is partially deductible for tax purposes.

The Company provisionally recognized $284 million of intangible assets, consisting of $213 million of contract related assets and $71 million of developed technology, being amortized primarily over the estimated useful life of thirteen years and eight years, respectively. The remaining net liabilities assumed are provisionally recognized at $56 million, and consist primarily of deferred tax liabilities of $72 million related to the acquired intangibles.

The valuation of the assets acquired and liabilities assumed with the acquisition of Ultra Mission Solutions is 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.

On April 6, 2026, the Company acquired Defy Security for $235 million. 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, resulting in provisional goodwill of $128 million, which is primarily attributable to the expected synergies between the Company and Defy Security and is partially deductible for tax purposes.

The Company recognized $88 million of intangible assets which consist of contract related assets and are being amortized over the estimated useful life of eight years. The remaining net assets acquired are recognized at $19 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 $217 million and non‑current accrued expenses of $80 million.

The valuation of Defy Security’s assets acquired and liabilities assumed is substantially complete, with the exception of tax assets acquired and liabilities assumed and other certain matters. 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 September 30, 2026 and March 31, 2026, goodwill was $3,028 million and $2,399 million, respectively. The $629 million increase in the carrying amount of goodwill was attributable to the Company's acquisitions of Defy Security and Ultra Mission Solutions.


	September 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	$	920	$	406	$	514	$	619	$	365	$	254
Software	309		158		151		202		137		65
Total amortizable intangible assets	$	1,229	$	564	$	665	$	821	$	502	$	319
Unamortizable intangible assets:
Trade name	$	190	$	—	$	190	$	190	$	—	$	190
Total	$	1,419	$	564	$	855	$	1,011	$	502	$	509