Quarterly report pursuant to Section 13 or 15(d)

Organization and Basis of Presentation (Tables)

v3.19.1
Organization and Basis of Presentation (Tables)
 6 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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:
(dollars in thousands) Balance at September 30, 2018 Adjustments due to adoption of new standard Opening balance at October 1, 2018
Assets
Accounts receivable - unbilled $ 31,536  $ 35,414  $ 66,950 
Deferred income taxes 6,834  (6,625) 209 
Liabilities and shareholders' equity
Deferred revenue - current 51,182  (11,767) 39,415 
Deferred income taxes - long-term 26,377  7,074  33,451 
Retained earnings 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 six months ended March 31, 2019.
  Three months ended March 31, 2019 Six months ended March 31, 2019
(dollars in thousands) Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported
Revenue $ 735,487  $ 1,033  $ 736,520  $ 1,399,372  $ 1,767  $ 1,401,139 
Income before income taxes 79,646  1,033  80,679  154,468  1,767  156,235 
Provision for income taxes 18,628  285  18,913  38,467  279  38,746 
Net income 61,018  748  61,766  116,001  1,488  117,489 
(Loss)/income attributable to noncontrolling interests (328) 170  (158) (838) 490  (348)
Net income attributable to MAXIMUS $ 61,346  $ 578  $ 61,924  $ 116,839  $ 998  $ 117,837 
The effect on our balance sheet would have been as follows:
(dollars in thousands) Balance at March 31, 2019, under previous accounting guidance Adjustments due to adoption of new standard Balance at March 31, 2019, as reported
Assets
Accounts receivable - unbilled $ 95,796  $ 35,454  $ 131,250 
Deferred income taxes 6,858  (6,649) 209 
Liabilities and shareholders' equity
Deferred revenue - current 51,963  (12,748) 39,215 
Deferred income taxes - long-term 43,957  7,103  51,060 
Accumulated other comprehensive loss (38,617) (519) (39,136)
Retained earnings 671,897  33,927  705,824 
Noncontrolling interests 1,581  1,043  2,624 

Additional information and disclosures relating to this change are included within "Note 3. Revenue recognition."
Statement of cash flows
We adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments and ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on October 1, 2018, using the retrospective method. The most notable change relates to the treatment of balances we consider to be "restricted cash." Restricted cash represents funds which are held in our bank accounts but which we are precluded from using for general business needs through contractual requirements; these requirements include serving as collateral for lease, credit card or letter of credit arrangements or where we hold funds on behalf of clients. As we did not consider these restricted cash balances to be cash or cash equivalents, we did not previously include them within our cash flow statement except where restrictions over cash were imposed or lapsed. Beginning  on October 1, 2018, we are required to include movements in cash, cash equivalents and restricted cash within our consolidated statements of cash flows.
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:
Balance as of
(dollars in thousands) March 31, 2019 September 30, 2018 March 31, 2018 September 30, 2017
Cash and cash equivalents $ 46,799  $ 349,245  $ 253,227  $ 166,252 
Restricted cash (recorded within "other current assets") 7,679  7,314  13,908  13,475 
Cash, cash equivalents and restricted cash $ 54,478  $ 356,559  $ 267,135  $ 179,727 

Consolidated Statements of Changes in Shareholders' Equity
In August 2018, the United States Securities and Exchange Commission (SEC) adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The amendments became effective on November 5, 2018, and did not have a material effect on the Company's consolidated financial statements for fiscal year 2019. We have adopted these changes to the Consolidated Statements of Changes in Shareholders’ Equity in this filing.