| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The adoption of Topic 606 resulted in the following changes to our opening balance sheet:
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| (dollars in thousands) |
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Balance at September 30, 2018 |
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Adjustments due to adoption of new standard |
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Opening balance at October 1, 2018 |
| Assets |
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| Accounts receivable - unbilled |
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$ |
31,536 |
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$ |
35,414 |
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$ |
66,950 |
| Deferred income taxes |
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6,834 |
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(6,625) |
|
209 |
| Liabilities and shareholders' equity |
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| Deferred revenue - current |
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51,182 |
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(11,767) |
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39,415 |
| Deferred income taxes - long-term |
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26,377 |
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7,074 |
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33,451 |
| Retained earnings |
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633,281 |
|
32,929 |
|
666,210 |
| Noncontrolling interests |
|
2,552 |
|
553 |
|
3,105 |
The table below shows the effects of the adoption of Topic 606 on our consolidated statement of operations for the three and nine months ended June 30, 2019.
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Three months ended June 30, 2019 |
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Nine months ended June 30, 2019 |
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| (dollars in thousands) |
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Balance under previous accounting guidance |
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Adjustments due to adoption of new standard |
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Balance as reported |
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Balance under previous accounting guidance |
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Adjustments due to adoption of new standard |
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Balance as reported |
| Revenue |
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$ |
728,420 |
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$ |
2,290 |
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$ |
730,710 |
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$ |
2,127,792 |
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$ |
4,057 |
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$ |
2,131,849 |
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| Income before income taxes |
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81,440 |
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2,290 |
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83,730 |
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235,908 |
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4,057 |
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239,965 |
| Provision for income taxes |
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20,031 |
|
734 |
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20,765 |
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58,008 |
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1,503 |
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59,511 |
| Net income |
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61,409 |
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1,556 |
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62,965 |
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177,900 |
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2,554 |
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180,454 |
| (Loss)/income attributable to noncontrolling interests |
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(91) |
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158 |
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67 |
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(929) |
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648 |
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(281) |
| Net income attributable to MAXIMUS |
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$ |
61,500 |
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$ |
1,398 |
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$ |
62,898 |
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$ |
178,829 |
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$ |
1,906 |
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$ |
180,735 |
The effect on our balance sheet would have been as follows:
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| (dollars in thousands) |
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Balance at June 30, 2019 under previous accounting guidance |
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Adjustments due to adoption of new standard |
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Balance at June 30, 2019 as reported |
| Assets |
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| Accounts receivable - unbilled |
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$ |
56,341 |
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$ |
37,761 |
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$ |
94,102 |
| Deferred income taxes |
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7,199 |
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(6,582) |
|
617 |
| Liabilities and shareholders' equity |
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| Deferred revenue - current |
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53,032 |
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(12,081) |
|
40,951 |
| Deferred income taxes - long-term |
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37,195 |
|
7,574 |
|
44,769 |
| Common stock |
|
501,983 |
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1,201 |
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503,184 |
| Accumulated other comprehensive loss |
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(40,112) |
|
(998) |
|
(41,110) |
| Retained earnings |
|
716,887 |
|
35,483 |
|
752,370 |
| Noncontrolling interests |
|
455 |
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— |
|
455 |
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| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
Accordingly, we have presented our consolidated statement of cash flows using the new rules for all periods shown. Our balances for cash, cash equivalents and restricted cash are as follows:
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Balance as of |
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| (dollars in thousands) |
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June 30,
2019 |
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September 30, 2018 |
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June 30,
2018 |
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September 30, 2017 |
| Cash and cash equivalents |
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$ |
71,084 |
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$ |
349,245 |
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$ |
229,021 |
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$ |
166,252 |
| Restricted cash (recorded within "other current assets") |
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7,885 |
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7,314 |
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13,323 |
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13,475 |
| Cash, cash equivalents and restricted cash |
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$ |
78,969 |
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$ |
356,559 |
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$ |
242,344 |
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$ |
179,727 |
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