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Revenue Recognition (Tables) | 3 Months Ended
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Dec. 30, 2018
Revenue from Contract with Customer [Abstract] |
Summary of the Effects of Adoption of ASC 606 | The following table presents how the adoption of ASC 606 affected certain line items in our consolidated statement of cash flows for the three months ended December 30, 2018:
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 40,354 |  |  | $ | 1,678 |  |  | $ | 42,032 |
Accounts receivable and contract assets | 7,574 |  |  | 6,954 |  |  | 14,528 |
Contract liabilities | 15,248 |  |  | (9,158 | ) |  | 6,090 |
Income taxes receivable/payable | 11,489 |  |  | 526 |  |  | 12,015 |
Net cash used in operating activities | (15,302 | ) |  | — |  |  | (15,302 | )
The following table presents how the adoption of ASC 606 affected certain line items in our consolidated balance sheet as of December 30, 2018:
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Assets |  |  |  |  |
Contract assets (1) | $ | 131,885 |  |  | $ | (5,340 | ) |  | $ | 126,545 |
Deferred tax assets | 7,328 |  |  | 1,120 |  |  | 8,448 |
Liabilities and equity |  |  |  |  |
Contract liabilities (2) | $ | 158,519 |  |  | $ | (2,934 | ) |  | $ | 155,585 |
Income taxes payable | 16,824 |  |  | 525 |  |  | 17,349 |
Equity (3) |  |  |  |  |
Retained earnings | $ | 978,632 |  |  | $ | (1,089 | ) |  | $ | 977,543 |
(1) Previously included in "Account receivable - net". (2) Previously presented as "Billings in excess of costs on uncompleted contracts". (3) Includes $2.8 million of cumulative catch-up adjustment to retained earnings on October 1, 2018 upon adoption of ASC 606. The following table presents how the adoption of ASC 606 affected certain line items in our consolidated statement of income for the three months ended December 30, 2018:
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Revenue | $ | 715,228 |  |  | $ | 2,203 |  |  | $ | 717,431 |
Income from operations | 53,508 |  |  | 2,203 |  |  | 55,711 |
Income tax expense | 10,257 |  |  | 525 |  |  | 10,782 |
Net income attributable to Tetra Tech | 40,319 |  |  | 1,678 |  |  | 41,997 |
Summary of Net Contract Liabilities/Assets | Net contract liabilities/assets consisted of the following:
| Balance at
| December 30, 2018 |  | September 30, 2018
| (in thousands)
Contract assets | $ | 126,545 |  |  | $ | 142,882 |
Contract liabilities | 155,585 |  |  | 143,270 |
Net contract liabilities | 29,040 |  |  | 388 |
Reconciliation of Disaggregation of Revenue to Reportable Segments |
| Three Months Ended
| December 30, 2018 |  | December 31, 2017
| (in thousands)
Client Sector |  |  |  |  |
U.S. state and local government | $ | 123,280 |  |  | $ | 151,754 |
U.S. federal government (1) | 224,757 |  |  | 236,249 |
U.S. commercial | 172,788 |  |  | 206,786 |
International (2) | 196,606 |  |  | 164,960 |
Total | $ | 717,431 |  |  | $ | 759,749 |
(1) Includes revenue generated under U.S. federal government contracts performed outside the United States. (2) Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients. Other than the U.S. federal government, no single client accounted for more than 10% of our revenue for the three months ended December 30, 2018 and December 31, 2017.
| Three Months Ended
| December 30, 2018 |  | December 31, 2017 |
Contract Type |  |  |  |
Fixed-price | $ | 240,933 |  |  | $ | 235,420 |  |
Time-and-materials | 336,537 |  |  | 376,773 |  |
Cost-plus | 139,961 |  |  | 147,556 |  |
Total revenue | $ | 717,431 |  |  | $ | 759,749 |  |
Remaining Performance Obligation, Expected Timing | We expect to satisfy our RUPOs as of December 30, 2018 over the following periods:
| Amount
| (in thousands)
Within 12 months | $ | 1,670,929 |
Beyond | 1,101,342 |
Total RUPOs | $ | 2,772,271 |

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