Quarterly report pursuant to Section 13 or 15(d)

Other Balance Sheet Items

v3.23.1
Other Balance Sheet Items
 6 Months Ended
Mar. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]  
Other Balance Sheet Items OTHER BALANCE SHEET ITEMS
Cash, Cash Equivalents, and Restricted Cash
Table 10.1: Details of Cash and Cash Equivalents and Restricted Cash
March 31, 2023 September 30, 2022
(in thousands)
Cash and cash equivalents $ 56,344  $ 40,658 
Restricted cash (1) 62,376  96,137 
Cash, cash equivalents, and restricted cash $ 118,720  $ 136,795 
(1)Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. At September 30, 2022, this balance included $60.7 million of funds received from a customer which had previously been sold under our Receivables Purchase Agreement; this is offset by a corresponding liability in "Other current liabilities". No similar arrangements existed at March 31, 2023. The remaining balance includes funds held in trust on behalf of certain clients, offset with a corresponding liability in "Other current liabilities", and certain collateral obligations on contracts.
Table 10.2: Supplemental Disclosures of Cash Flow Information
For the Six Months Ended
March 31, 2023 March 31, 2022
(in thousands)
Interest payments $ 19,262  $ 17,755 
Income tax payments $ 31,926  $ 50,531 
Accounts Receivable, Net
Table 10.3: Details of Accounts Receivable, Net
March 31, 2023 September 30, 2022
(in thousands)
Billed and billable receivables $ 614,907  $ 723,979 
Unbilled receivables 134,695  91,404 
Allowance for credit losses (7,215) (8,273)
Accounts receivable, net $ 742,387  $ 807,110 
In September 2022, we entered into a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain U.S.-originated accounts receivable balances up to a maximum amount of $110.0 million at any given time. In return for these sales, we receive a cash payment equal to the face value of the receivables less a financing charge.
We account for these transfers as sales. We have no retained interest in the transferred receivables other than administrative responsibilities, and Wells Fargo has no recourse for any credit risk. We estimate that the implicit servicing fees for an arrangement of this size and type would be immaterial.
For the six months ended March 31, 2023, the gross fair value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $292.8 million. In exchange for these sales, we received $291.1 million in cash. The balance, representing a loss on sale from these transfers, is included within our selling, general and administrative expenses. We have recorded these transactions within our operating cash flows. The effective annual interest rate under this program was 5.04%.