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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.

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Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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