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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________ 
FORM 10-Q
 ___________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2021
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File No. 001-34972
 ___________________________________
Booz Allen Hamilton Holding Corporation
(Exact name of registrant as specified in its charter)
 ___________________________________
Delaware 26-2634160
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
8283 Greensboro Drive,McLean,Virginia 22102
(Address of principal executive offices) (Zip Code)
(703) 902-5000
Registrant’s telephone number, including area code
(Former name, former address, and former fiscal year if changed since last report.)
___________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Class A Common StockBAHNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer  
  Accelerated Filer  
Non-Accelerated Filer    Smaller Reporting Company  
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  



Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 Shares Outstanding
as of January 25, 2022
Class A Common Stock133,257,688 



TABLE OF CONTENTS
 



PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

INDEX TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Page



BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
December 31,
2021
March 31,
2021
 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$642,709 $990,955 
Accounts receivable, net1,618,494 1,411,894 
Prepaid expenses and other current assets93,937 233,323 
Total current assets2,355,140 2,636,172 
Property and equipment, net of accumulated depreciation
195,515 204,642 
Operating lease right-of-use assets229,041 239,374 
Intangible assets, net of accumulated amortization664,640 307,128 
Goodwill2,021,931 1,581,160 
Other long-term assets477,766 531,125 
Total assets$5,944,033 $5,499,601 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$68,379 $77,865 
Accounts payable and other accrued expenses796,438 666,971 
Accrued compensation and benefits404,678 425,615 
Operating lease liabilities50,717 54,956 
Other current liabilities72,142 65,698 
Total current liabilities1,392,354 1,291,105 
Long-term debt, net of current portion2,747,892 2,278,731 
Operating lease liabilities, net of current portion250,792 263,144 
Deferred tax liabilities242,859 364,461 
Other long-term liabilities235,882 230,984 
Total liabilities4,869,779 4,428,425 
Commitments and contingencies (Note 17)
Stockholders’ equity:
Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 163,721,966 shares at December 31, 2021 and 162,950,606 shares at March 31, 2021; outstanding, 133,427,292 shares at December 31, 2021 and 136,246,029 shares at March 31, 2021
1,637 1,629 
Treasury stock, at cost — 30,294,674 shares at December 31, 2021 and 26,704,577 shares at March 31, 2021
(1,515,903)(1,216,163)
Additional paid-in capital620,632 557,957 
Retained earnings1,981,715 1,757,524 
Accumulated other comprehensive loss(17,054)(29,771)
Total Booz Allen stockholders' equity1,071,027 1,071,176 
Non-controlling interest3,227  
Total stockholders’ equity1,074,254 1,071,176 
Total liabilities and stockholders’ equity$5,944,033 $5,499,601 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
1


BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Amounts in thousands, except per share data)
 Three Months Ended
December 31,
Nine Months Ended
December 31,
 2021202020212020
Revenue$2,030,520 $1,904,020 $6,125,624 $5,879,658 
Operating costs and expenses:
Cost of revenue929,568 866,771 2,840,044 2,758,270 
Billable expenses621,550 577,059 1,817,215 1,729,788 
General and administrative expenses262,614 254,820 826,606 745,375 
Depreciation and amortization39,576 21,113 104,923 62,860 
Total operating costs and expenses1,853,308 1,719,763 5,588,788 5,296,293 
Operating income177,212 184,257 536,836 583,365 
Interest expense(23,677)(20,878)(69,201)(60,900)
Other income (expense), net5,401 2,604 11,716 (10,266)
Income before income taxes158,936 165,983 479,351 512,199 
Income tax expense30,090 21,612 103,569 102,418 
Net income$128,846 $144,371 $375,782 $409,781 
Net loss attributable to non-controlling interest(85) (85) 
Net income attributable to common stockholders128,931 144,371 375,867 409,781 
Earnings per common share (Note 4):
Basic$0.96 $1.04 $2.77 $2.95 
Diluted$0.95 $1.03 $2.76 $2.93 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
2


BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(Amounts in thousands)
 Three Months Ended
December 31,
Nine Months Ended
December 31,
 2021202020212020
Net income$128,846 $144,371 $375,782 $409,781 
Other comprehensive income, net of tax:
Change in unrealized gain on derivatives designated as cash flow hedges6,925 3,758 12,658 5,983 
Change in postretirement plan costs20 22 59 66 
Total other comprehensive income, net of tax6,945 3,780 12,717 6,049 
Comprehensive income$135,791 $148,151 $388,499 $415,830 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3


BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)
 Nine Months Ended
December 31,
 20212020
Cash flows from operating activities
Net income$375,782 $409,781 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization104,923 62,860 
Noncash lease expense41,718 40,861 
Stock-based compensation expense45,187 40,972 
Amortization of debt issuance costs 3,463 3,302 
Loss on debt extinguishment2,515 13,239 
Gains on dispositions, and other(3,564)(3,479)
Gains associated with equity method investment activities(12,761) 
Changes in assets and liabilities:
Accounts receivable, net(150,156)38,270 
Deferred income taxes and income taxes receivable / payable38,453 36,902 
Prepaid expenses and other current and long-term assets(19,953)(3,656)
Accrued compensation and benefits(5,371)76,658 
Accounts payable and other accrued expenses88,529 125,887 
Other current and long-term liabilities(27,614)(42,638)
Net cash provided by operating activities481,151 798,959 
Cash flows from investing activities
Purchases of property, equipment, and software(51,608)(54,033)
Payments for business acquisitions, net of cash acquired(780,213) 
Payment for minority investment in entity (72,152)
Payment for cost method investment(3,000) 
Proceeds from sales of assets, net of payment  3,330 
Other investing activities(427) 
Net cash used in investing activities(835,248)(122,855)
Cash flows from financing activities
Proceeds from issuance of common stock17,240 13,948 
Stock option exercises3,558 10,193 
Repurchases of common stock(315,148)(143,354)
Cash dividends paid(151,664)(129,862)
Debt extinguishment costs (8,971)
Repayments on revolving credit facility and term loan(95,162)(508,399)
Net proceeds from debt issuance487,027 691,496 
Proceeds from revolving credit facility60,000  
Other financing activities (1,755)
Net cash provided by (used in) financing activities5,851 (76,704)
Net (decrease) increase in cash and cash equivalents(348,246)599,400 
Cash and cash equivalents––beginning of period990,955 741,901 
Cash and cash equivalents––end of period$642,709 $1,341,301 
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest$34,185 $39,737 
Income taxes$62,142 $69,374 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4

BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
(Amounts in thousands, except
share data)
Class A
Common Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Non-Controlling InterestTotal
Stockholders’
Equity
SharesAmountSharesAmount
Balance at September 30, 2021163,627,651$1,636 (29,302,541)$(1,433,136)$600,930 $1,902,667 $(23,999)$ $1,048,098 
Issuance of common stock79,0851 — — 5,713 — — — 5,714 
Stock options exercised15,230— — — 542 — — — 542 
Repurchase of common stock— — (992,133)(82,767) – — — — (82,767)
Recognition of liability related to future restricted stock units vesting— — — —  — — —  
Net income— — — — — 128,931 — (85)128,846 
Other comprehensive income, net of tax— — — —  – — 6,945 — 6,945 
Dividends declared of $0.37 per share of common stock
— — — —  – (49,883)— — (49,883)
Stock-based compensation expense— — — — 16,759 — — — 16,759 
Contribution to non-controlling interest— — — — (3,312)— — 3,312  
Balance at December 31, 2021163,721,966$1,637 (30,294,674)$(1,515,903)$620,632 $1,981,715 $(17,054)$3,227 $1,074,254 
Balance at March 31, 2021162,950,606$1,629 (26,704,577)$(1,216,163)$557,957 $1,757,524 $(29,771)$ $1,071,176 
Issuance of common stock637,7667 — — 16,030 — — — 16,037 
Stock options exercised133,5941 — — 3,557 — — — 3,558 
Repurchase of common stock (1)— — (3,590,097)(299,740)— — — — (299,740)
Recognition of liability related to future restricted stock units vesting— — — — 1,213 — — — 1,213 
Net income— — — — — 375,867 — (85)375,782 
Other comprehensive income, net of tax— — — — — — 12,717 — 12,717 
Dividends declared of $1.11 per share of common stock
— — — — — (151,676)— — (151,676)
Stock-based compensation expense— — — — 45,187 — — 45,187 
Contribution to non-controlling interest— — (3,312)— — 3,312  
Balance at December 31, 2021163,721,966$1,637 (30,294,674)$(1,515,903)$620,632 $1,981,715 $(17,054)$3,227 $1,074,254 

(1) During the nine months ended December 31, 2021, the Company purchased 3.4 million shares of the Company’s Class A Common Stock in a series of open market transactions for $286.3 million. Additionally, the Company repurchased shares for $13.4 million during the nine months ended December 31, 2021 to cover the minimum statutory withholding taxes on restricted stock units that vested on various dates during the period.

5

BOOZ ALLEN HAMILTON HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) [CONTINUED]
(Amounts in thousands, except
share data)
Class A
Common Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total
Stockholders’
Equity
SharesAmountSharesAmount
Balance at September 30, 2020162,079,334$1,621 (24,054,733)$(1,003,650)$509,512 $1,508,206 $(43,732)$971,957 
Issuance of common stock35,460— — — 4,262 — — 4,262 
Stock options exercised128,3791 — — 3,700 — — 3,701 
Repurchase of common stock— — (323,128)(27,063)— — — (27,063)
Recognition of liability related to future restricted stock units vesting— — — — (58)— — (58)
Net income— — — — — 144,371 — 144,371 
Other comprehensive income, net of tax— — — — — — 3,780 3,780 
Dividends paid of $0.31 per share of common stock
— — — — — (43,026)— (43,026)
Stock-based compensation expense— — — — 15,341 — — 15,341 
Balance at December 31, 2020162,243,173$1,622 (24,377,861)$(1,030,713)$532,757 $1,609,551 $(39,952)$1,073,265 
Balance at March 31, 2020161,333,973$1,613 (22,614,052)$(898,095)$468,027 $1,330,812 $(46,001)$856,356 
Topic 326 adoption impact— — — — (1,180)— (1,180)
Issuance of common stock478,7985 — — 13,349 — 13,354 
Stock options exercised430,4024 — — 10,189 — — 10,193 
Repurchase of common stock (2)— — (1,763,809)(132,618)— — — (132,618)
Recognition of liability related to future restricted stock units vesting— — — — 222 — — 222 
Net income— — — — — 409,781 — 409,781 
Other comprehensive income, net of tax— — — — — — 6,049 6,049 
Dividends paid of $0.93 per share of common stock
— — — — — (129,862)— (129,862)
Stock-based compensation expense— — — — 40,970 — — 40,970 
Balance at December 31, 2020162,243,173$1,622 (24,377,861)$(1,030,713)$532,757 $1,609,551 $(39,952)$1,073,265 


(2) During the nine months ended December 31, 2020, the Company purchased 1.6 million shares of the Company’s Class A Common Stock in a series of open market transactions for $123.4 million. Additionally, the Company repurchased shares for $9.2 million during the nine months ended December 31, 2020 to cover the minimum statutory withholding taxes on restricted stock units that vested on various dates during the period.










The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6

BOOZ ALLEN HAMILTON HOLDING CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in tables in thousands, except share and per share data or unless otherwise noted)
1. BUSINESS OVERVIEW
Booz Allen Hamilton Holding Corporation, including its wholly owned subsidiaries, or the Company, we, us, and our, was incorporated in Delaware in May 2008. The Company provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to U.S. and international governments, major corporations, and not-for-profit organizations. The Company reports operating results and financial data in one reportable segment. The Company is headquartered in McLean, Virginia, with approximately 29,500 employees as of December 31, 2021.
2. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission, or SEC, and should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K for the year ended March 31, 2021. The interim period unaudited condensed consolidated financial statements are presented as described below. Certain information and disclosures normally required for annual financial statements have been condensed or omitted pursuant to GAAP and SEC rules and regulations. In the opinion of management, all adjustments considered necessary for fair presentation of the results of the interim period presented have been included. The Company’s fiscal year ends on March 31 and unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended March 31. The results of operations for the nine months ended December 31, 2021 are not necessarily indicative of results to be expected for the full fiscal year.
The condensed consolidated financial statements and notes of the Company include its subsidiaries, and the joint ventures and partnerships over which the Company has a controlling financial interest. The Company uses the equity method to account for investments in entities that it does not control if it is otherwise able to exert significant influence over the entities' operating and financial policies.
Certain amounts reported in the Company's prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation.
Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the financial statements where estimates may have the most significant effect include the provision for claimed indirect costs, valuation and lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition, including the accrual of indirect costs, bonus and other incentive compensation, stock-based compensation, reserves for uncertain tax positions and valuation allowances on deferred tax assets, provisions for income taxes, postretirement obligations, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ materially from management's estimates.
Recent Accounting Pronouncements Not Yet Adopted
In November 2020, the SEC issued Release No. 33-10890, Amendments to Management's Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, to simplify, modernize and enhance certain financial disclosure requirements in Regulation S-K. This amendment became effective on February 10, 2021. The Company’s adoption is expected to impact fiscal 2022 Form 10-K disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers to improve the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms, and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for annual periods beginning after December 15, 2022 on a prospective basis. Early adoption is permitted. The Company is currently assessing the impact of this update on its condensed consolidated financial statements and related disclosures.
Other accounting and reporting pronouncements effective after December 31, 2021 and issued through the filing date are not expected to have a material impact on the Company's condensed consolidated financial statements.
3. REVENUE
The Company's revenues from contracts with customers (clients) are derived from offerings that include consulting, analytics, digital solutions, engineering, mission, and cyber services, substantially with the U.S. government and its agencies and, to a lesser extent, subcontractors. The Company also serves foreign governments, as well as domestic and international
7

BOOZ ALLEN HAMILTON HOLDING CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in tables in thousands, except share and per share data or unless otherwise noted)
commercial clients. The Company performs under various types of contracts, which include cost-reimbursable contracts, time-and-materials contracts, and fixed-price contracts.
Contract Estimates
Many of our contracts recognize revenue under a contract cost-based input method and require an Estimate-at-Completion ("EAC") process, which management uses to review and monitor the progress towards the completion of our performance obligations. Under this process, management considers various inputs and assumptions related to the EAC, including, but not limited to, progress towards completion, labor costs and productivity, material and subcontractor costs, and identified risks. Estimating the total cost at the completion of our performance obligations is subjective and requires management to make assumptions about future activity and cost drivers under the contract. Changes in these estimates can occur for a variety of reasons and, if significant, may impact the revenue and profitability of the Company’s contracts. Changes in estimates related to contracts accounted for under the EAC process are recognized on a cumulative catch-up basis in the period when such changes are determinable and reasonably estimable. If the estimate of contract profitability indicates an anticipated loss on a contract, the Company recognizes the total loss at the time it is identified. For each of the three and nine months ended December 31, 2021 and 2020, the aggregate impact of adjustments in contract estimates was not material.
Disaggregation of Revenue
We disaggregate our revenue from contracts with customers by contract type, customer, as well as whether the Company acts as prime contractor or subcontractor, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories.
Revenue by Contract Type:
    We generate revenue under the following three basic types of contracts:
Cost-Reimbursable Contracts: Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract, up to a ceiling based on the amount that has been funded, plus a fixed fee or award fee.
Time-and-Materials Contracts: Under contracts in this category, we are paid a fixed hourly rate for each direct labor hour expended, and we are reimbursed for billable material costs and billable out-of-pocket expenses inclusive of allocable indirect costs. We assume the financial risk on time-and-materials contracts because our costs of performance may exceed negotiated hourly rates.
Fixed-Price Contracts: Under a fixed-price contract, we agree to perform the specified work for a predetermined price. To the extent our actual direct and allocated indirect costs decrease or increase from the estimates upon which the price was negotiated, we will generate more or less profit, respectively, or could incur a loss.
The table below presents the total revenue for each type of contract:
 Three Months Ended
December 31,
Nine Months Ended
December 31,
 2021202020212020
Cost-reimbursable$1,079,893 53 %$1,086,679 57 %$3,322,507 54 %$3,317,228 56 %
Time-and-materials484,718 24 %462,206 24 %1,482,431 24 %1,469,415 25 %
Fixed-price465,909 23 %355,135 19 %1,320,686 22 %1,093,015 19 %
Total Revenue$2,030,520 100 %$1,904,020 100 %$6,125,624 100 %$5,879,658 100 %








8

BOOZ ALLEN HAMILTON HOLDING CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in tables in thousands, except share and per share data or unless otherwise noted)


Revenue by Customer Type:
Three Months Ended
December 31,
Nine Months Ended
December 31,
2021202020212020
U.S. government(1):
Defense Clients$946,161 47 %$967,671 51 %$2,921,262 48 %$2,907,842 49 %
Intelligence Clients368,987 18 %366,104 19 %1,139,312 18 %1,159,156 20 %
Civil Clients651,372 32 %519,728 27 %1,906,528 31 %1,648,055 28 %
Total U.S. government1,966,520 97 %1,853,503 97 %5,967,102 97 %5,715,053 97 %
Global Commercial Clients64,000 3 %50,517 3 %158,522 3 %164,605 3 %
Total Revenue$2,030,520 100 %$1,904,020 100 %$6,125,624 100 %$5,879,658 100 %
(1) Certain contracts were reassigned between the various verticals of our U.S. government business shown in the table above to better align our operations to the customers we serve within each market. Prior year revenue by customer type has been recast to reflect the changes.

Revenue by Whether the Company Acts as a Prime Contractor or a Subcontractor:
Three Months Ended
December 31,
Nine Months Ended
December 31,
2021202020212020
Prime Contractor$1,913,657 94 %$1,777,878 93 %$5,753,596 94 %$5,462,260 93 %
Subcontractor116,863 6 %126,142 7 %372,028 6 %417,398 7 %
Total Revenue$2,030,520 100 %$1,904,020 100 %$6,125,624 100 %$5,879,658 100 %

Performance Obligations
Remaining performance obligations represent the transaction price of exercised contracts for which work has not yet been performed, irrespective of whether funding has or has not been authorized and appropriated as of the date of exercise. Remaining performance obligations exclude negotiated but unexercised options, the unfunded value of expired contracts, and certain variable consideration which the Company does not expect to recognize as revenue.
As of December 31, 2021 and March 31, 2021, the Company had $7.5 billion and $6.7 billion of remaining performance obligations, respectively. We expect to recognize approximately 70% of the remaining performance obligations at December 31, 2021 as revenue over the next 12 months, and approximately 85% over the next 24 months. The remainder is expected to be recognized thereafter.
Contract Balances
The Company's performance obligations are typically satisfied over time and revenue is generally recognized using a cost-based input method. Fixed-price contracts are typically billed to the customer using milestone or fixed monthly payments, while cost-reimbursable-plus-fee and time-and-material contracts are typically billed to the customer at periodic intervals (e.g. monthly or weekly) as indicated by the terms of the contract. Disparities between the timing of revenue recognition and customer billings and cash collections result in net contract assets or liabilities being recognized at the end of each reporting period.
9

BOOZ ALLEN HAMILTON HOLDING CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in tables in thousands, except share and per share data or unless otherwise noted)
Contract assets primarily consist of unbilled receivables typically resulting from revenue recognized exceeding the amount billed to the customer and right to payment is not just subject to the passage of time. Unbilled amounts represent revenues for which billings have not been presented to customers at quarter-end or year-end. These amounts are generally billed and collected within one year subject to various conditions including, without limitation, appropriated and available funding. Long-term unbilled receivables not anticipated to be billed and collected within one year, which are primarily related to retainage, holdbacks, and long-term rate settlements to be billed at contract closeout, are included in other long-term assets in the accompanying condensed consolidated balance sheets. Contract liabilities primarily consist of advance payments, billings in excess of costs incurred and deferred revenue. Contract assets and liabilities are reported on a net contract basis at the end of each reporting period. The Company maintains an allowance for credit losses to provide for an estimate of uncollectible receivables. Provision for credit losses recognized was not material for the three and nine months ended December 31, 2021 and 2020.
The following table summarizes the contract assets and liabilities, and accounts receivable, net of allowance recognized on the Company’s condensed consolidated balance sheets:
Contract BalancesDecember 31,
2021
March 31,
2021
Current assets
Accounts receivable–billed$509,632 $375,383 
Accounts receivable–unbilledContract assets1,108,862 1,037,968 
Allowance for credit losses (1,457)
Accounts receivable, net1,618,494 1,411,894 
Other long-term assets
Accounts receivable–unbilledContract assets64,395 63,869 
Total accounts receivable, net$1,682,889 $1,475,763 
Other current liabilities
Advance payments, billings in excess of costs incurred and deferred revenueContract liabilities$18,147 $15,906 

Changes in contract assets and contract liabilities are primarily due to the timing difference between the Company’s performance of services and billings to customers. For the three months ended December 31, 2021 and 2020, we recognized revenue of $0.1 million and $1.7 million, respectively, and for the nine months ended December 31, 2021 and 2020, we recognized revenue of $14.3 million and $23.7 million, respectively, related to our contract liabilities on April 1, 2021 and 2020, respectively. To determine revenue recognized from contract liabilities during the reporting periods, the Company allocates revenue to individual contract liability balances and applies revenue recognized during the reporting periods first to the beginning balances of contract liabilities until the revenue exceeds the balances.

4. EARNINGS PER SHARE
The Company computes basic and diluted earnings per share amounts based on net income attributable to common stockholders for the periods presented. The Company uses the weighted-average number of common shares outstanding during the period to calculate basic earnings per share, or EPS. Diluted EPS adjusts the weighted average number of shares outstanding to include the dilutive effect of outstanding common stock options and other stock-based awards.
The Company currently has outstanding shares of Class A Common Stock. Unvested Class A Restricted Common Stock holders are entitled to participate in non-forfeitable dividends or other distributions. These unvested restricted shares participated in the Company's dividends declared and were paid in the first, second and third quarters of fiscal 2022 and 2021. As such, EPS is calculated using the two-class method whereby earnings are reduced by distributed earnings as well as any available undistributed earnings allocable to holders of unvested restricted shares. A reconciliation of the income used to compute basic and diluted EPS for the periods presented are as follows:
10

BOOZ ALLEN HAMILTON HOLDING CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in tables in thousands, except share and per share data or unless otherwise noted)
 Three Months Ended
December 31,
Nine Months Ended
December 31,
 2021202020212020
Earnings for basic computations (1)$127,992 $143,488 $373,413 $407,454 
Weighted-average common shares outstanding for basic computations133,587,858 137,879,820134,629,367 137,971,114
Earnings for diluted computations (1)$127,995 $143,492 $373,421 $407,465 
Dilutive stock options and restricted stock674,392 1,006,299684,859 961,011
Weighted-average common shares outstanding for diluted computations134,262,250 138,886,119135,314,226 138,932,125
Earnings per common share
Basic$0.96 $1.04 $2.77 $2.95 
Diluted$0.95 $1.03 $2.76 $2.93 

(1) During the three months ended December 31, 2021 and 2020, approximately