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Item 7A — Quantitative and Qualitative Disclosures About Market Risk
Caci International Inc · 10-K · FY 2026 · Period ended Jun 30, 2026
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The interest rates on the Credit Facility, the Term Loan B, and the Term Loan B-2 are affected by changes in market interest rates. The Company has the ability to manage these fluctuations in part through interest rate hedging alternatives in the form of interest rate swaps. The Company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $1,500.0 million related to a portion of its floating rate indebtedness. All remaining balances under the Credit Facility, the Term Loan B, and the Term Loan B-2 and any additional amounts that may be borrowed under the Revolving Facility are currently subject to interest rate fluctuations. With every one percent fluctuation in the applicable interest rate, interest expense on the Company’s variable rate debt for the twelve months ended June 30, 2026 would have fluctuated by $15.3 million.
3.2% and 3.0% of the Company’s total revenues in fiscal 2026 and 2025, respectively, were generated from our International Operations. The Company’s practice in International Operations is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency exchange rate fluctuations. To the extent that it is not feasible to negotiate the foreign currency, there is a risk that profits may be adversely affected by such exchange rate fluctuations. As of June 30, 2026, the Company held cash and cash equivalents denominated in pound sterling and euro in the U.K. and the Netherlands, with an aggregate U.S. dollar equivalent of $82.9 million. Although these balances are generally available to fund ordinary business operations without legal or other restrictions, a significant portion is not immediately available to fund U.S. operations unless repatriated. The Company’s intention is to reinvest earnings from our foreign subsidiaries. This allows the Company to better utilize cash resources on behalf of our foreign subsidiaries, thereby mitigating foreign currency conversion risks.