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Revenue Recognition (Tables) | 6 Months Ended
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Mar. 31, 2019
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 balance sheet as of March 31, 2019:
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Assets |  |  |  |  |
Accounts receivable - net | $ | 634,972 |  |  | $ | (5,375 | ) |  | $ | 629,597 |
Contract assets (1) | 165,530 |  |  | (7,612 | ) |  | 157,918 |
Deferred tax assets | 29,461 |  |  | 1,120 |  |  | 30,581 |
Liabilities and equity |  |  |  |  |
Contract liabilities (2) | $ | 164,868 |  |  | $ | (10,259 | ) |  | $ | 154,609 |
Income taxes payable | 1,597 |  |  | 280 |  |  | 1,877 |
Equity (3) |  |  |  |  |
Retained earnings | $ | 1,028,724 |  |  | $ | (1,888 | ) |  | $ | 1,026,836 |
(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 statements of income for the three and six months ended March 31, 2019:
| Three Months Ended |  | Six Months Ended
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606 |  | Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Revenue | $ | 723,666 |  |  | $ | (1,045 | ) |  | $ | 722,621 |  |  | $ | 1,438,894 |  |  | $ | 1,158 |  |  | $ | 1,440,052 |
Income from operations | 48,590 |  |  | (1,045 | ) |  | 47,545 |  |  | 102,098 |  |  | 1,158 |  |  | 103,256 |
Income tax benefit (expense) | 11,317 |  |  | 246 |  |  | 11,563 |  |  | 1,061 |  |  | (280 | ) |  | 781 |
Net income (loss) attributable to Tetra Tech | 56,710 |  |  | (799 | ) |  | 55,911 |  |  | 97,028 |  |  | 879 |  |  | 97,907 |
The following table presents how the adoption of ASC 606 affected certain line items in our consolidated statement of cash flows for the six months ended March 31, 2019:
| Recognition Under Previous Guidance |  | Impact of the Adoption of ASC 606 |  | Recognition Under ASC 606
| (in thousands)
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 97,097 |  |  | $ | 879 |  |  | $ | 97,976 |
Accounts receivable and contract assets | 32,716 |  |  | 15,325 |  |  | 48,041 |
Contract liabilities | 21,598 |  |  | (16,484 | ) |  | 5,114 |
Income taxes receivable/payable | (4,231 | ) |  | 280 |  |  | (3,951 | )
Net cash provided by operating activities | 99,248 |  |  | — |  |  | 99,248 |
Summary of Net Contract Liabilities/Assets | Net contract liabilities/assets consisted of the following:
| Balance at
| March 31, 2019 |  | September 30, 2018
| (in thousands)
Contract assets | $ | 157,918 |  |  | $ | 142,882 |
Contract liabilities | 154,609 |  |  | 143,270 |
Net contract assets (liabilities) | $ | 3,309 |  |  | $ | (388 | )
Reconciliation of Disaggregation of Revenue to Reportable Segments | The following tables provide information about disaggregated revenue and a reconciliation of the disaggregated revenue:
| Three Months Ended |  | Six Months Ended
| March 31, 2019 |  | April 1, 2018 |  | March 31, 2019 |  | April 1, 2018
Client Sector |  |  |  |  |  |  |  |  |
U.S. state and local government | $ | 129,868 |  |  | $ | 104,905 |  |  | $ | 253,147 |  |  | $ | 256,659 |
U.S. federal government (1) | 216,498 |  |  | 236,951 |  |  | 441,256 |  |  | 473,199 |
U.S. commercial | 165,970 |  |  | 180,398 |  |  | 338,758 |  |  | 387,184 |
International (2) | 210,285 |  |  | 178,008 |  |  | 406,891 |  |  | 342,968 |
Total | $ | 722,621 |  |  | $ | 700,262 |  |  | $ | 1,440,052 |  |  | $ | 1,460,010 |
(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 and six months ended March 31, 2019 and April 1, 2018.
| Three Months Ended |  | Six Months Ended
| March 31, 2019 |  | April 1, 2018 |  | March 31, 2019 |  | April 1, 2018
| (in thousands)
Contract Type |  |  |  |  |  |  |
Fixed-price | $ | 247,831 |  |  | $ | 224,878 |  |  | $ | 488,764 |  |  | $ | 460,298 |
Time-and-materials | 345,626 |  |  | 333,590 |  |  | 682,163 |  |  | 710,362 |
Cost-plus | 129,164 |  |  | 141,794 |  |  | 269,125 |  |  | 289,350 |
Total | $ | 722,621 |  |  | $ | 700,262 |  |  | $ | 1,440,052 |  |  | $ | 1,460,010 |
Remaining Performance Obligation, Expected Timing | We expect to satisfy our RUPOs as of March 31, 2019 over the following periods:
| Amount
| (in thousands)
Within 12 months | $ | 1,807,078 |
Beyond | 993,344 |
Total | $ | 2,800,422 |

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