Cubic 10-Q 6 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 20, 2015
Document and Entity Information
Entity Registrant Name	CUBIC CORP /DE/
Entity Central Index Key	26,076
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		26,882,875
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net sales:
Products	$ 133,762	$ 136,649	$ 392,884	$ 405,419
Services	214,044	203,708	612,244	596,567
Total net sales	347,806	340,357	1,005,128	1,001,986
Costs and expenses:
Products	94,381	108,301	288,926	305,245
Services	175,334	156,726	480,671	480,906
Selling, general and administrative expenses	55,127	46,489	155,603	131,508
Research and development	5,938	3,949	12,830	13,822
Amortization of purchased intangibles	6,606	5,653	21,035	17,056
Restructuring costs	127	24	5,385	227
Total costs and expenses	337,513	321,142	964,450	948,764
Operating income	10,293	19,215	40,678	53,222
Other income (expense):
Interest and dividend income	434	595	1,337	958
Interest expense	(1,125)	(1,504)	(3,058)	(3,117)
Other income (expense) - net	(257)	(1,098)	(1,157)	(1,058)
Income before income taxes	9,345	17,208	37,800	50,005
Income taxes	559	4,992	34,863	13,240
Net income	8,786	12,216	2,937	36,765
Less noncontrolling interest in income of VIE	6	10	29	79
Net income attributable to Cubic	$ 8,780	$ 12,206	$ 2,908	$ 36,686
Net income per share attributable to Cubic
Basic (in dollars per share)	$ 0.33	$ 0.46	$ 0.11	$ 1.37
Diluted (in dollars per share)	$ 0.33	$ 0.45	0.11	1.36
Dividends per common share (in dollars per share)			$ 0.14	$ 0.12
Weighted average shares used in per share calculations:
Basic (in shares)	26,883	26,789	26,868	26,786
Diluted (in shares)	26,960	26,921	26,925	26,901

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 8,786	$ 12,216	$ 2,937	$ 36,765
Other comprehensive income (loss):
Foreign currency translation	18,315	7,245	(14,742)	19,107
Change in net unrealized gains/losses from cash flow hedges:
Change in fair value of cash flow hedges, net of tax	(448)	(80)	519	(261)
Adjustment for net gains/losses realized and included in net income, net of tax	101	(208)	(767)	(231)
Total change in net unrealized gains/losses from cash flow hedges, net of tax	(347)	(288)	(248)	(492)
Total other comprehensive income (loss)	17,968	6,957	(14,990)	18,615
Total comprehensive income	$ 26,754	$ 19,173	$ (12,053)	$ 55,380

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 209,305	$ 215,849
Restricted cash	69,202	69,056
Marketable securities	5,601	1,196
Accounts receivable:
Accounts receivable - net	389,370	394,179
Recoverable income taxes	12,290	16,055
Inventories - net	66,259	38,775
Deferred income taxes and other current assets	37,612	30,277
Total current assets	789,639	765,387
Long-term contract receivables	13,460	15,870
Long-term capitalized contract costs	71,220	76,209
Property, plant and equipment - net	71,377	64,149
Deferred income taxes	2,707	17,849
Goodwill	239,824	184,141
Purchased intangibles - net	80,466	63,618
Other assets	17,855	7,383
Total assets	1,286,548	1,194,606
Current liabilities:
Short-term borrowings	70,000
Trade accounts payable	35,409	31,344
Customer advances	106,448	91,690
Accrued compensation and other current liabilities	133,119	133,367
Income taxes payable	9,979	12,737
Deferred income taxes	4,517	474
Current portion of long-term debt	545	563
Total current liabilities	360,017	270,175
Long-term debt	101,362	101,827
Other long-term liabilities	54,461	40,103
Shareholders' equity:
Common stock	24,602	20,669
Retained earnings	802,294	803,059
Accumulated other comprehensive loss	(20,362)	(5,372)
Treasury stock at cost	(36,078)	(36,078)
Shareholders' equity related to Cubic	770,456	782,278
Noncontrolling interest in variable interest entity	252	223
Total shareholders' equity	770,708	782,501
Total liabilities and shareholders' equity	$ 1,286,548	$ 1,194,606

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating Activities:
Net income	$ 8,786	$ 12,216	$ 2,937	$ 36,765
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	8,653	7,511	28,717	22,740
Share-based compensation expense	1,361	1,785	6,652	4,370
Changes in operating assets and liabilities net of effects from acquisitions	(33,406)	44,524	8,186	(27,138)
Changes in operating assets and liabilities, net of effects from acquisitions:
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(14,606)	66,036	46,492	36,737
Investing Activities:
Acquisition of businesses, net of cash acquired	(712)	(3,773)	(90,172)	(83,456)
Purchases of property, plant and equipment	(13,163)	(2,589)	(15,743)	(13,536)
Purchases of marketable securities	(1,611)		(6,201)
Proceeds from sales or maturities of marketable securities			1,196	4,055
Purchases of other assets			(2,993)
NET CASH USED IN INVESTING ACTIVITIES	(15,486)	(6,362)	(113,913)	(92,937)
Financing Activities:
Proceeds from short-term borrowings	25,000	8,000	95,000	38,000
Principal payments on short-term borrowings	(10,000)	(30,000)	(25,000)	(30,000)
Principal payments on long-term borrowings	(134)	(147)	(403)	(431)
Proceeds from issuance of common stock				113
Purchases of common stock	(929)		(2,652)
Dividends paid			(3,627)	(3,215)
Net change in restricted cash	(45)	(44)	(146)	353
Contingent consideration payments related to acquisitions of businessess		(1,251)		(2,368)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	13,892	(23,442)	63,172	2,452
Effect of exchange rates on cash	17,401	5,266	(2,295)	16,697
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,201	41,498	(6,544)	(37,051)
Cash and cash equivalents at the beginning of the year	208,104	125,343	215,849	203,892
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	209,305	166,841	209,305	166,841
DTECH LABS, Inc.
Operating Activities:
Net income	(200)		(2,000)
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net	44		8,898
Intific Inc.
Operating Activities:
Net income	$ (300)	$ (1,700)	$ (1,500)	3,800
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net				$ 1,173

Basis for Presentation

Basis for Presentation	9 Months Ended
	Jun. 30, 2015
Basis for Presentation
Basis for Presentation	Note 1 — Basis for Presentation Cubic Corporation (“we”, “us”, and “Cubic”) has prepared the accompanying unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In our opinion, all adjustments necessary for a fair presentation of these financial statements have been included, and are of a normal and recurring nature, with the exceptions discussed within the Audit Committee Investigation and Correction of Immaterial Errors subsections below, considered necessary to fairly state the financial position of Cubic Corporation at June 30, 2015 and September 30, 2014; the results of its operations for the three- and nine-month periods ended June 30, 2015 and 2014; and its cash flows for the three- and nine-month periods ended June 30, 2015 and 2014. Operating results for the three- and nine-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended September 30, 2014. In February 2015, we implemented a plan to restructure our defense services and defense systems businesses into a single business called Cubic Global Defense (CGD) to better align our defense business organizational structure with customer requirements, increase operational efficiencies and improve collaboration and innovation across the company. After this restructuring there is now a single, combined management structure for our legacy Cubic Defense Systems (CDS) and legacy Mission Support Services (MSS) segments. However, for segment financial reporting purposes, we continue to report the financial results of our defense systems and defense services segments separately. These two reporting segments have been renamed Cubic Global Defense Systems (CGD Systems) and Cubic Global Defense Services (CGD Services), respectively. There have been no significant changes in the operations that are included in each of these reporting segments as a result of the restructuring. The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Audit Committee Investigation Our Audit Committee has conducted an investigation with the assistance of Latham & Watkins LLP and Deloitte FAS LLP to review our controls and procedures in connection with programs that are accounted for under the percentage of completion method. Through the application of the Company’s internal controls, management identified an issue which led to the investigation. As a result of the investigation, the Audit Committee and management of the Company have together determined that as of September 30, 2014, the total estimated costs of certain of our CGD Systems segment contracts were inappropriately reduced during its accounting close for the year ended September 30, 2014. The inappropriate reduction of the estimated costs to complete these contracts resulted in the overstatement of CGD Systems sales and operating income by approximately $750,000 for the quarter and year ended September 30, 2014. Correction of Immaterial Errors During the accounting close for our March 31, 2015 financial statements, we identified certain errors, unrelated to the matters described in the paragraph above, in our September 30, 2014 financial statements. These errors included an overstatement of revenue recognition on one contract and the understatement of cost of sales on a small number of contracts. The cumulative impact of these errors resulted in an overstatement of the Company’s operating income for the year ended September 30, 2014 of $1.6 million. The cumulative amount of the errors described in the two paragraphs above overstated the Company’s operating income for fiscal 2014 by $2.4 million and understated the Company’s operating income for 2013 and prior years, cumulatively, by $0.3 million. The impact of correcting the above mentioned errors in the quarter ended December 31, 2014 understated operating income for the quarter by $2.1 million. The impact of correcting these errors (overstated) understated the following amounts in the quarter ended December 31, 2014 (in thousands): Audit Committee Investigation Error Other Errors Total Errors Net sales: Products $ $ $ Costs and expenses: Products — Services — Selling, general and administrative — ) ) — ) ) Operating income Income before income taxes Income taxes Net income attributable to Cubic $ $ $ Based on a qualitative and quantitative analysis of these errors, management concluded that all such errors are cumulatively and individually considered immaterial to the 2014 financial statements and are immaterial to the expected full year results for 2015 and had no effect on the trend of financial results. As such, these errors have been corrected in the financial statements for the quarter ended December 31, 2014. Interim Goodwill Impairment Test Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is subject to an impairment test on an annual basis and when circumstances indicate that an impairment is more likely than not. Such circumstances include a significant adverse change in the business climate for one of our reporting units or a decision to dispose of a reporting unit or a significant portion of a reporting unit. In the second quarter of fiscal 2015, we learned that our CGD Services business had not won two contracts for new work on which it had submitted proposals. Consequently, in the second quarter our Defense Services business lowered its internal profitability projections. As such, in the second quarter of fiscal 2015 we believed that it was appropriate to perform an interim goodwill impairment test for our Defense Services reporting unit. The test for goodwill impairment is a two-step process. The first step of the test is performed by comparing the fair value of each reporting unit to its carrying value, including recorded goodwill. If the carrying value of a reporting unit exceeds its fair value, the second step is performed to measure the amount of the impairment, if any, by comparing the implied fair value of goodwill to its carrying value. Any resulting impairment determined would be recorded in the current period. Determining the fair value of a reporting unit for purposes of the goodwill impairment test is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Estimates of fair value are primarily determined using discounted cash flows and market multiples from publicly traded comparable companies. These approaches use significant estimates and assumptions including projected future cash flows, discount rate reflecting the inherent risk in future cash flows, perpetual growth rate and determination of appropriate market comparables. Based upon the results of the first step of the impairment analysis that we performed, the estimated fair value for our Defense Services reporting unit exceeded its carrying value. As such, no impairment of goodwill was recorded in connection with our interim impairment test performed in the second quarter of fiscal 2015. In the third quarter of fiscal 2015, no interim goodwill impairment test was deemed necessary. Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. Also, changes in estimates and assumptions we make in conducting our goodwill assessment could affect the estimated fair value of our reporting units and could result in a goodwill impairment charge in a future period. Significant Accounting Policies There have been no material changes to our significant accounting policies as compared with the significant accounting policies described in our Annual Report on Form 10-K for the year ended September 30, 2014. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance and will require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. ASU 2014-09 will be effective for us starting in the first quarter of fiscal 2019 or we may adopt ASU 2014-09 early in the first quarter of 2018. ASU 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU 2014-09 is recognized as an adjustment to the opening retained earnings balance in the year of adoption. We have not yet determined which method of adoption we will select or if we will choose to adopt the standard early. As the new standard will supersede substantially all existing revenue guidance affecting us under GAAP, it could impact revenue and cost recognition on a significant number of contracts across our business segments, in addition to our business processes and our information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern , which requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016. ASU 2014-15 will be effective for the Company beginning in the first quarter of fiscal 2016. Early adoption is permitted for financial statements that have not been previously issued. This adoption is not expected to have a significant impact on our financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of fiscal 2016. We are currently evaluating the impact of ASU 2015-02 on our financial statements. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 will be effective for the Company beginning on October 1, 2016, with early adoption permitted. We are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs which requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. ASU 2015-03 is effective for us on October 1, 2016 with early adoption permitted. We do not expect that the adoption of this new accounting guidance will have a material impact on our consolidated financial statements.

Acquisitions

Acquisitions	9 Months Ended
	Jun. 30, 2015
ACQUISITIONS
Acquisitions	Note 2 — Acquisitions Each of the following acquisitions has been treated as a business combination for accounting purposes. The results of operations of each acquired business have been included in our consolidated financial statements since the respective date of each acquisition. DTECH LABS, Inc. On December 16, 2014 we acquired all of the outstanding capital stock of DTECH LABs, Inc. (DTECH). DTECH, based in Sterling, VA, is a provider of modular networking and baseband communications equipment and adds networking capability to our secure communications business in our CGD Systems segment. In addition, this acquisition expands the portfolio of product offerings and the customer base of our CGD Systems segment. For the three months ended June 30, 2015, the amount of DTECH’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $10.8 million and $0.2 million, respectively. For the nine months ended June 30, 2015, the amount of DTECH’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $22.6 million and $2.0 million, respectively. Included in DTECH’s operating results for the nine months ended June 30, 2015 are $0.8 million of transaction and acquisition related costs before related income taxes. The purchase agreement states that the cost of the acquisition is approximately $99.5 million, adjusted by the difference between the net working capital acquired and the targeted working capital amounts and adjusted for other acquisition related payments made upon closing, plus a contingent amount of up to $15.0 million based upon DTECH’s achievement of revenue and gross profit targets in the future. The acquisition date fair value of the consideration transferred is estimated to be $99.4 million. Through June 30, 2015 we have paid $91.0 million to the seller. At June 30, 2015 we have recorded a liability of $8.9 million as an estimate of the fair value of additional cash consideration that will be due to the seller in the future. The fair value of the additional consideration is made up of two components, the holdback consideration and the contingent consideration. Approximately $4.9 million of cash consideration (Holdback Consideration) will be paid to the seller over time when certain events occur in the future. The fair value of the Holdback Consideration is estimated to approximate $4.5 million using a discounted cash flow model, based upon the expected timing of the payment of the Holdback Consideration. In addition to the Holdback Consideration, we will pay the seller up to $15.0 million of contingent cash consideration based upon DTECH’s achievement of revenue and gross profit targets. The purchase agreement specifies independent revenue and gross profit targets for the period from our acquisition of DTECH through September 30, 2015, and separately for each of fiscal 2016 and fiscal 2017. The total fair value of the contingent consideration has been estimated at $4.4 million as of June 30, 2015 using a real options approach (see Note 5 for further discussion of fair value measurements). The contingent consideration liability is re-measured to fair value at each reporting date until the contingencies are resolved and any changes in fair value are recognized in earnings. The acquisition of DTECH was paid for with a combination of funds from our existing cash resources and borrowings on our revolving credit facility. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Non compete agreements Backlog Cash Accounts receivable Inventory Warranty obligation ) Tax liabilities ) Accounts payable and accrued expenses ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $ The estimated fair values of purchased intangibles are preliminary estimates pending the finalization of our valuation analyses. The preliminary fair values of purchased intangibles were determined using the valuation methodology deemed to be the most appropriate for each type of asset being valued. The customer relationships and backlog valuation used the excess earnings approach and the non-compete agreements used the with-and-without approach. The intangible assets will be amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets, over a weighted average useful life of two years from the date of acquisition and is expected to be deductible for tax purposes. The goodwill resulting from the acquisition consists primarily of the synergies expected from combining the operations of DTECH with our existing CGD Systems business, including the synergies expected from combining the networking and secure communications technologies of DTECH, and complementary products that will enhance our overall product and service portfolio. The goodwill also consists of the value of the assembled workforce that became our employees following the close of the acquisition. The amount recorded as goodwill is allocated to our CGD Systems segment and is expected to be deductible for tax purposes. Based upon the preliminary estimate of the fair value of identifiable intangible assets, the estimated amortization expense related to the intangible assets recorded in connection with our acquisition of DTECH for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter Intific On February 28, 2014 we acquired all of the outstanding capital stock of Intific Inc. (Intific). Intific is focused on software and game-based solutions in modeling and simulation, training and education, cyber warfare, and neuroscience. The acquisition of Intific expanded the portfolio of services and customer base of our CGD Systems segment. For the three months ended June 30, 2015, the amount of Intific’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $3.8 million and $0.3 million, respectively. For the three months ended June 30, 2014, the amount of Intific’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $1.9 million and $1.7 million, respectively. For the nine months ended June 30, 2015, the amount of Intific’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $10.6 million and $1.5 million, respectively. For the nine months ended June 30, 2014, the amount of Intific’s sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $2.7 million and $3.8 million, respectively. Included in Intific’s operating results for the nine months ended June 30, 2014 are $0.2 million of transaction and acquisition related costs, and $3.7 million of compensation expense which was paid to Intific employees upon the close of the acquisition. The acquisition date fair value of the consideration transferred was $12.4 million. Through June 30, 2015, we have paid cash of approximately $11.2 million to the seller and as of June 30, 2015 we have accrued a liability of $1.2 million for the remaining cash to be paid. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Technology Backlog Other intangible assets Accounts receivable Deferred tax assets Accounts payable and accrued expenses ) Deferred tax liabilities ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $ The fair values of purchased intangibles were determined using the valuation methodology deemed to be the most appropriate for each type of asset being valued. The customer relationships and backlog valuation used the excess earnings approach and the technology valuation used the replacement cost approach. The intangible assets will be amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets, over a weighted average useful life of two years from the date of acquisition and the amortization expense is not expected to be deductible for tax purposes. The net deferred tax assets and liabilities offset each other to a negligible amount. However, the deferred tax liabilities of $1.5 million were primarily recorded to reflect the tax impact of amortization related to identified intangible assets that is not expected to be deductible for tax purposes, net of acquisition consideration that is a tax deductible expense. The deferred tax assets of $1.5 million primarily related to the future tax deduction for the cancellation of unvested options. The goodwill resulting from the acquisition consists primarily of the synergies expected from combining the operations of Intific with our existing CGD Systems business and the acquired assembled workforce. The anticipated synergies include the ability to expand services offerings and cost reductions. The amount recorded as goodwill is allocated to our CGD Systems segment and is not expected to be deductible for tax purposes. The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of Intific for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter ITMS On November 26, 2013 we acquired all of the outstanding capital stock of Intelligent Transport Management Solutions Limited (ITMS) from Serco Limited. ITMS is a provider of traffic management systems technology, traffic and road enforcement and maintenance of traffic signals, emergency equipment and other critical road and tunnel infrastructure. The acquisition of ITMS expands the portfolio of services and customer base of our Cubic Transportation Systems (CTS) segment. For the three months ended June 30, 2015, the amount of ITMS’ sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $10.9 million and $0.6 million, respectively. For the three months ended June 30, 2014, the amount of ITMS’ sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $12.8 million and $0.5 million, respectively. For the nine months ended June 30, 2015, the amount of ITMS’ sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $33.1 million and $2.2 million, respectively. For the nine months ended June 30, 2014, the amount of ITMS’ sales and net loss after taxes included in our Condensed Consolidated Statement of Income were $30.1 million and $0.2 million, respectively. Included in the ITMS operating results are $0.5 million of transaction costs incurred during the nine months ended June 30, 2014 . The acquisition date fair value of the consideration transferred was $72.2 million. We paid the seller cash of $69.0 million in November 2013 and $3.2 million in May 2014. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Intellectual property Backlog Supplier relationships Agreements with seller Accounts receivable - billed Accounts receivable - unbilled Deferred tax liabilities, net ) Deferred revenue ) Accounts payable and accrued expenses ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $ The fair values of purchased intangibles were determined using the valuation methodology deemed to be the most appropriate for each type of asset being valued. The customer relationships and backlog valuation used the excess earnings approach and the non-compete agreement and seller agreements valuations used the with-and-without approach. The supplier relationship and intellectual property valuations used the replacement cost approach. The intangible assets will be amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets, over a weighted average useful life of two years from the date of acquisition. Future amortization of purchased intangibles is not deductible for tax purposes. The goodwill resulting from the acquisition consists primarily of the synergies expected from combining the operations of ITMS with our existing CTS business and the acquired assembled workforce. The anticipated synergies include the ability to expand services offerings and cost reductions. The amount recorded as goodwill is allocated to our CTS segment and is not expected to be deductible for tax purposes. The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of ITMS for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter Changes in goodwill for the nine months ended June 30, 2015 were as follows (in millions): Cubic Global Cubic Global Transportation Defense Defense Systems Services Systems Total Balances at September 30, 2014 $ $ $ $ Acquisitions — — Foreign currency exchange rate changes ) — ) ) Balances at June 30, 2015 $ $ $ $ Pro forma information The following unaudited pro forma information presents our consolidated results of operations as if DTECH, Intific and ITMS had been included in our consolidated results since October 1, 2013 (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales $ $ $ $ Net income attributable to Cubic $ $ $ $ The pro forma information includes adjustments to give effect to pro forma events that are directly attributable to the acquisitions and have a continuing impact on operations including the amortization of purchased intangibles and the elimination of interest expense for the repayment of debt. There were no material, nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported pro forma sales and net income attributable to Cubic. No adjustments were made for transaction expenses, other adjustments that do not reflect ongoing operations or for operating efficiencies or synergies. The pro forma financial information is not necessarily indicative of what the consolidated financial results of our operations would have been had the acquisitions been completed on October 1, 2013, and it does not purport to project our future operating results.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Jun. 30, 2015
Net Income Per Share
Net Income Per Share	Note 3 — Net Income Per Share Basic net income per share (EPS) is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period, including vested restricted stock units (RSUs). In periods with a net income, diluted EPS is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares consist of dilutive restricted stock units. Dilutive restricted stock units are calculated based on the average share price for each fiscal period using the treasury stock method. For RSUs with performance-based vesting, no common equivalent shares are included in the computation of diluted EPS until the related performance criteria have been met. In periods with a net loss, common equivalent shares are not included in the computation of diluted EPS, because to do so would be anti-dilutive. Basic and diluted EPS are computed as follows (amounts in thousands, except per share data). Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to Cubic $ $ $ $ Weighted average shares - basic Effect of dilutive securities Weighted average shares - diluted Net income per share attributable to Cubic, basic $ $ $ $ Effect of dilutive securities — ) — ) Net income per share attributable to Cubic, diluted $ $ $ $ Anti-dilutive employee share-based awards — — — —

Balance Sheet Details

Balance Sheet Details	9 Months Ended
	Jun. 30, 2015
Balance Sheet Details
Balance Sheet Details	Note 4 — Balance Sheet Details Marketable Securities Marketable securities consist of fixed time deposits with short-term maturities. Marketable securities are classified and accounted for as available-for-sale. These investments are recorded at fair value in the accompanying Condensed Consolidated Balance Sheets and the change in fair value is recorded, net of taxes, as a component of other comprehensive income (loss). There have been no significant realized or unrealized gains or losses on these marketable securities to date. Marketable securities have been classified as current assets in the accompanying Condensed Consolidated Balance Sheets based upon the nature of the securities and availability for use in current operations. Accounts Receivable The components of accounts receivable are as follows (in thousands): June 30, September 30, 2015 2014 Trade and other receivables $ $ Long-term contracts: Billed Unbilled Allowance for doubtful accounts ) ) Total accounts receivable Less estimated amounts not currently due ) ) Current accounts receivable $ $ The amount classified as not currently due is an estimate of the amount of long-term contract accounts receivable that will not be collected within one year from June 30, 2015 under transportation systems contracts in the U.S. and Australia based upon the payment terms in the contracts. The non-current balance at September 30, 2014 represented non-current amounts due from customers under transportation systems contracts in the same locations. Inventories Inventories consist of the following (in thousands): June 30, September 30, 2015 2014 Work in process and inventoried costs under long-term contracts $ $ Materials and purchased parts Customer advances ) ) Net inventories $ $ Pursuant to contract provisions, agencies of the U.S. government and certain other customers have title to, or security interest in, inventories related to such contracts as a result of advances, performance-based payments, and progress payments. Contract advances, performance-based payments and progress payments received are recorded as an offset against the related inventory balances for contracts that are accounted for on a percentage-of-completion basis using units-of-delivery as the basis to measure progress toward completing the contract. This determination is performed on a contract by contract basis. Any amount of payments received in excess of the cumulative amount of accounts receivable and inventoried costs for a contract is classified as customer advances, which is classified as a liability on the balance sheet. At June 30, 2015, work in process and inventoried costs under long-term contracts includes approximately $1.8 million in costs incurred outside the scope of work or in advance of a contract award compared to $2.3 million at September 30, 2014. We believe it is probable that we will recover the costs inventoried at June 30, 2015, plus a profit margin, under contract change orders or awards within the next year. Long-term Capitalized Costs Long-term capitalized contract costs consist of costs incurred on a contract to develop and manufacture a transportation fare system for a customer for which revenue recognition did not begin until the customer began operating the system in the fourth fiscal quarter of 2013. These capitalized costs are being recognized as cost of sales based upon the ratio of revenue recorded during the period compared to the revenue expected to be recognized over the term of the contract, which is through January 2024. Long-term capitalized costs that were recognized as cost of sales totaled $2.3 million and $6.0 million for the quarter and nine-month periods ended June 30, 2015, respectively, and $5.1 million and $6.1 million for the quarter and nine-month periods ended June 30, 2014, respectively. The balance of long-term capitalized costs at June 30, 2015 is expected to be recognized as cost of sales in approximately equal quarterly amounts in future months through the term of the contract. Capitalized Software We capitalize certain costs associated with the development or purchase of internal-use software. The amounts capitalized are included in property, plant and equipment in our Condensed Consolidated Balance Sheets and are amortized on a straight-line basis over the estimated useful life of the software, which ranges from three to seven years. No amortization expense is recorded until the software is ready for its intended use. As a part of our ongoing effort to upgrade our current information systems, early in fiscal 2015 we began the process of designing and implementing new enterprise resource planning (ERP) software and other software applications to manage our operations. Capitalized software costs totaled $1.3 million and $12.1 million for the quarter and nine-month periods ended June 30, 2015, respectively. The vast majority of the capitalized software costs at June 30, 2015 are related to the development of our ERP system, which is classified as construction in process as it has not yet been placed in service. At September 30, 2014 the carrying value of capitalized software was immaterial. In addition to software costs that were capitalized in fiscal 2015, during the three and nine months ended June 30, 2015, we recognized expense related to the development of our ERP system of $4.7 million and $6.6 million, respectively, for costs that did not meet the requirements for capitalization. ERP expense is classified within selling, general and administrative expenses in the Condensed Consolidated Statements of Income. Deferred Compensation Plan We have a non-qualified deferred compensation plan offered to a select group of highly compensated employees. The plan provides participants with the opportunity to defer a portion of their compensation in a given plan year. The liabilities associated with the non-qualified deferred compensation plan are included in other long-term liabilities in our Condensed Consolidated Balance Sheets and totaled $9.7 million and $9.5 million at June 30, 2015 and September 30, 2014, respectively. In the first quarter of fiscal 2015, we began making contributions to a rabbi trust to provide a source of funds for satisfying a portion of these deferred compensation liabilities. The total carrying value of the assets set aside to fund deferred compensation liabilities as of June 30, 2015 was $3.0 million. These assets are classified as other non-current assets and consist of life insurance contracts with a carrying value of $2.0 million and marketable securities with a carrying value of $1.0 million. The carrying value of the life insurance contracts is based on the cash surrender value of the policies. The marketable securities in the rabbi trust are carried at fair value, which is based upon quoted market prices for identical securities. Changes in the carrying value of the deferred compensation liability, and changes in the carrying value of the assets held in the rabbi trust are reflected in our Condensed Consolidated Statements of Income.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 5 — Fair Value of Financial Instruments The valuation techniques required to determine fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. The two types of inputs create the following fair value hierarchy: · Level 1 - Quoted prices for identical instruments in active markets. · Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. · Level 3 - Significant inputs to the valuation model are unobservable. The fair value of cash equivalents and short-term investments approximates their cost. The fair value of our marketable securities is determined based on quoted market prices for identical securities. Derivative financial instruments are measured at fair value, the material portions of which are based on active or inactive markets for identical or similar instruments or model-derived valuations whose inputs are observable. Where model-derived valuations are appropriate, we use the applicable credit spread as the discount rate. Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and through periodic settlements of positions. The fair value of our contingent consideration liability to the seller of DTECH is revalued to its fair value each period and any increase or decrease is recorded into selling, general and administrative expense. Any changes in the assumed timing and amount of the probability of payment scenarios could impact the fair value. The fair value of the contingent consideration was estimated using a real options approach. Each annual payment was modeled using a portfolio of long and short digital options written on the underlying earnings metric (revenue or gross profit). The strike price for each option is the respective earnings threshold as specified in the agreement, and the spot price is calibrated to the revenue and gross profit forecast by calculating the present value of the corresponding projected earnings metric using a risk-adjusted discount rate. The volatility for the underlying earnings metrics was estimated to be 22% based on analysis of comparable guideline public companies. The risk-free rate was selected based on the quoted yields for U.S. Treasury securities with terms matching the earn-out payment period. The inputs to this model are significant unobservable inputs and therefore represent Level 3 measurements within the fair value hierarchy. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and each subsequent period. Accordingly, changes in the assumptions described above can materially impact the amount of contingent consideration expense we record in any period. There was no change in the fair value of the contingent consideration between the date of the acquisition of DTECH and March 31, 2015; therefore, no contingent consideration expense was recorded through March 31, 2015. For the period from April 1, 2015 through June 30, 2015 t he following table summarizes the change in fair value of our Level 3 contingent consideration liability (in thousands): Balance as of April 1, 2015 $ Total remeasurement recognized in earnings Balance as of June 30, 2015 $ The following table presents assets and liabilities measured and recorded at fair value on our balance sheets on a recurring basis (in thousands): June 30, 2015 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ $ $ — $ Marketable securities — — Current derivative assets — — Noncurrent derivative assets — — Marketable securities in rabbi trust — — Total assets measured at fair value $ $ $ — $ Liabilities Current derivative liabilities $ — $ $ — $ Noncurrent derivative liabilities — — Current contingent consideration to seller of DTECH — — Noncurrent contingent consideration to seller of DTECH — — Total liabilities measured at fair value $ — $ $ $ September 30, 2014 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ $ $ — $ Marketable securities — — Current derivative assets — — Noncurrent derivative assets — — Total assets measured at fair value $ $ $ — $ Liabilities Current derivative liabilities $ — $ $ — $ Noncurrent derivative liabilities — — Total liabilities measured at fair value $ — $ $ — $ We carry financial instruments, including accounts receivable, accounts payable and accrued liabilities at cost, which we believe approximates fair value because of the short-term maturity of these instruments. The following table presents the estimated fair value and carrying value of our long-term debt (in millions): June 30, September 30, 2015 2014 Fair value $ $ Carrying value $ $ The fair value of long-term debt is calculated by discounting the value of the note based on market interest rates for similar debt instruments, which is a Level 2 technique.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Jun. 30, 2015
Financing Arrangements
Financing Arrangements	Note 6 — Financing Arrangements In March 2013, we entered into a note purchase and private shelf agreement pursuant to which we issued $100.0 million of senior unsecured notes, bearing interest at a rate of 3.35% and maturing on March 12, 2025. Interest on these notes is due semi-annually and principal payments are due from 2021 through 2025. In addition, pursuant to the agreement, on July 17, 2015 we issued additional senior unsecured notes in an aggregate principal amount of $25.0 million. These additional notes will also mature on March 12, 2025 and will bear an interest rate of 3.70%. All other terms, including the principal and interest payment dates are the same as the notes issued in March 2013. We have a committed five-year revolving credit agreement (Revolving Credit Agreement) with a group of financial institutions in the amount of $200 million, which expires in May 2017. The available line of credit is reduced by any letters of credit issued under the Revolving Credit Agreement. As of June 30, 2015, there were borrowings totaling $70.0 million under this agreement and there were letters of credit outstanding totaling $22.9 million, which reduce the available line of credit to $107.1 million. We have a secured letter of credit facility agreement with a bank (Secured Letter of Credit Facility) which is cancellable by us at any time upon the completion of certain conditions to the satisfaction of the bank. At June 30, 2015 there were letters of credit outstanding under this agreement of $61.0 million. Restricted cash at June 30, 2015 of $69.2 million was held on deposit in the U.K. as collateral in support of this Secured Letter of Credit Facility. We are required to leave the cash in the restricted account so long as the bank continues to maintain associated letters of credit under the facility. The maximum amount of letters of credit currently allowed by the facility is $62.8 million, and any increase above this amount would require bank approval and additional restricted funds to be placed on deposit. We may choose at any time to terminate the facility and move the associated letters of credit to another credit facility. Letters of credit outstanding under the Secured Letter of Credit Facility do not reduce the available line of credit under the Revolving Credit Agreement. As of June 30, 2015, we had letters of credit and bank guarantees outstanding totaling $79.3 million, including the letters of credit outstanding under the Revolving Credit Agreement and the Secured Letter of Credit Facility, which guarantee either our performance or customer advances under certain contracts. In addition, we had financial letters of credit outstanding totaling $16.6 million as of June 30, 2015, which primarily guarantee our payment of certain self-insured liabilities. We have never had a drawing on a letter of credit instrument, nor are any anticipated; therefore, we estimate the fair value of these instruments to be zero. We maintain short-term borrowing arrangements in New Zealand and Australia totaling $0.5 million New Zealand dollars (equivalent to approximately $0.34 million) and $3.0 million Australian dollars (equivalent to approximately $2.3 million) to help meet the short- term working capital requirements of our subsidiaries in those countries. At June 30, 2015, no amounts were outstanding under these borrowing arrangements. The terms of certain of our lending and credit agreements include provisions that require and/or limit, among other financial ratios and measurements, the permitted levels of debt, coverage of cash interest expense, and under certain circumstances, payments of dividends or other distributions to shareholders. As of June 30, 2015, these agreements do not restrict such distributions to shareholders. Our self-insurance arrangements are limited to certain workers’ compensation plans, automobile liability and product liability claims. Under these arrangements, we self-insure only up to the amount of a specified deductible for each claim. Self-insurance liabilities included in other current liabilities on the balance sheet amounted to $8.7 million and $9.1 million as of June 30, 2015 and September 30, 2014, respectively.

Pension Plans

Pension Plans	9 Months Ended
	Jun. 30, 2015
Pension Plans
Pension Plans	Note 7 — Pension Plans The components of net periodic pension cost (benefit) are as follows (in thousands): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of actuarial loss Administrative expenses Net pension benefit $ ) $ ) $ ) $ )

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	Note 8 - Stockholders’ Equity Long Term Equity Incentive Plan On March 21, 2013, the Executive Compensation Committee of the Board of Directors (Compensation Committee) approved a long- term equity incentive award program. Through June 30, 2015, the Compensation Committee has granted 546,085 RSU’s with time-based vesting and 488,604 RSU’s with performance-based vesting under this program. Each RSU represents a contingent right to receive one share of our common stock. Dividend equivalent rights accrue with respect to the RSUs when and as dividends are paid on our common stock and vest proportionately with the RSUs to which they relate. Vested shares are delivered to the recipient following each vesting date. The RSUs granted with time-based vesting generally vest in four equal installments on each of the four October 1 dates following the grant date, subject to the recipient’s continued service through such vesting date. The performance-based RSUs granted to participants vest over three-year performance periods based on Cubic’s achievement of performance goals established by the Compensation Committee over the performance periods, subject to the recipient’s continued service through the end of the respective performance periods. For the performance-based RSUs granted to date, the vesting will be contingent upon Cubic meeting one of three types of vesting criteria over the performance period. These three categories of vesting criteria consist of revenue growth targets, earnings targets, and return on equity targets. The level at which Cubic performs against scalable targets over the performance periods will determine the percentage of the RSUs that will ultimately vest. Through June 30, 2015, Cubic has granted 1,034,689 restricted stock units of which 230,493 have vested. The grant date fair value of each restricted stock unit is the fair market value of one share of our common stock at the grant date. At June 30, 2015, the total number of unvested RSUs that are ultimately expected to vest, after consideration of expected forfeitures and estimated vesting of performance-based RSUs is 273,131. The following table summarizes our RSU activity: Unvested Restricted Stock Units Number of Shares Weighted- Average Grant- Date Fair Value Unvested at September 30, 2014 $ Granted Vested ) Forfeited ) Unvested at June 30, 2015 $

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	Note 9 - Stock-Based Compensation We recorded non-cash compensation expense related to stock-based awards for the three- and nine-month period ended June 30, 2015 and 2014 as follows (in thousands): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of sales $ $ $ $ Selling, general and administrative $ $ $ $ In the second quarter of fiscal 2015, the Board of Directors approved the acceleration of vesting of certain restricted stock units for the Company’s Advisor to the Chief Executive Officer, and former Chief Executive Officer in connection with his retirement. We recognized $1.7 million of stock-based compensation expense in the second quarter of fiscal 2015 as a result of this stock award. As of June 30, 2015, there was $26.5 million of unrecognized compensation cost related to unvested RSUs. Based upon the expected forfeitures and the expected vesting of performance based RSUs, the aggregate fair value of RSUs expected to ultimately vest is $13.1 million. This amount is expected to be recognized over a weighted-average period of 1.7 years. We are required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods on a cumulative basis in the period the estimated forfeiture rate changes for all stock-based awards when significant events occur. We consider our historical experience with employee turnover as the basis to arrive at our estimated forfeiture rate. The forfeiture rate was estimated to be 12.5% per year as of June 30, 2015. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will be different from our expectations.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note 10 — Income Taxes Our effective tax rate for the three months ended June 30, 2015 was 6% as compared to 22% for the year ended September 30, 2014. The effective tax rate for the three months ended June 30, 2015 is lower than the prior full year effective tax rate primarily due to the disproportionate favorable impact of certain discrete tax events during the quarter, such as the expiration of the statute of limitations in a significant jurisdiction. The amount of net unrecognized tax benefits was $6.7 million as of June 30, 2015 and $4.7 million as of September 30, 2014, exclusive of interest and penalties. The increase in net unrecognized tax benefits was primarily related to acquisitions. At June 30, 2015, the amount of net unrecognized tax benefits from permanent tax adjustments that, if recognized, would favorably impact the effective rate was $4.0 million. During the next 12 months, it is reasonably possible that resolution of reviews by taxing authorities, both domestic and international, could be reached with respect to approximately $3.4 million of the net unrecognized tax benefits depending on the timing of examinations and expiration of statute of limitations, either because our tax positions are sustained or because we agree to their disallowance and pay the related income tax. We are subject to ongoing audits from various taxing authorities in the jurisdictions in which we do business. As of June 30, 2015, the years open under the statute of limitations in significant jurisdictions include fiscal years 2012-2014 in the U.S. We believe we have adequately provided for uncertain tax issues that have not yet been resolved with federal, state and foreign tax authorities. Companies are required to assess whether a valuation allowance should be recorded against their deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are, (1) future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. We have evaluated our DTAs, including an assessment of our cumulative income or loss over the prior three-year period and future periods, to determine if a valuation allowance was required. A significant negative factor in our assessment was Cubic’s three-year cumulative U.S. loss history at the end of the fiscal year 2014 and projected for fiscal year 2015. After a review of the four sources of taxable income described above and in view of our three-year cumulative U.S. loss, we recorded an increase in our valuation allowance on U.S. DTAs, with a corresponding charge to our income tax provision, of approximately $29.3 million and $0.9 million in the second and third quarters of fiscal 2015, respectively. Through June 30, 2015, a total valuation allowance of $46.2 million has been established for U.S. net deferred tax assets, certain foreign operating losses and other foreign assets. If sufficient positive evidence arises in the future, such as a sustained return to profitability in the U.S., any existing valuation allowance could be reversed as appropriate, decreasing income tax expense in the period that such conclusion is reached. The non-cash charge to establish a valuation allowance does not have any impact on the Company’s consolidated operations or cash flows, nor does such an allowance preclude the Company from using loss carryforwards or other deferred tax assets in the future. Until the Company re-establishes a pattern of continuing profitability in the U.S. tax jurisdiction, in accordance with the applicable accounting guidance, U.S. income tax expense or benefit related to the recognition of deferred tax assets in the condensed consolidated statement of operations for future periods will be offset by decreases or increases in the valuation allowance with no net effect on the consolidated condensed statement of operations.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	Note 11 — Derivative Instruments and Hedging Activities In order to manage our exposure to fluctuations in interest and foreign currency exchange rates we utilize derivative financial instruments such as forward starting swaps and foreign currency forwards. We do not use any derivative financial instruments for trading or other speculative purposes. All derivatives are recorded at fair value, however, the classification of gains and losses resulting from changes in the fair values of derivatives are dependent on the intended use of the derivative and its resulting designation. If a derivative is designated as a fair value hedge, then a change in the fair value of the derivative is offset against the change in the fair value of the underlying hedged item and only the ineffective portion of the hedge, if any, is recognized in earnings. If a derivative is designated as a cash flow hedge, then the effective portion of a change in the fair value of the derivative is recognized as a component of accumulated other comprehensive loss until the underlying hedged item is recognized in earnings, or the forecasted transaction is no longer probable of occurring. If a derivative does not qualify as a highly effective hedge, any change in fair value is immediately recognized in earnings. We formally document all hedging relationships for all derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transactions. We classify the fair value of all derivative contracts as current or non- current assets or liabilities, depending on the realized and unrealized gain or loss position of the hedged contract at the balance sheet date, and the timing of future cash flows. The cash flows from derivatives treated as hedges are classified in the Condensed Consolidated Statements of Cash Flows in the same category as the item being hedged. The following table shows the notional principal amounts of our outstanding derivative instruments as of June 30, 2015 and September 30, 2014 (in thousands): Notional Principal June 30, 2015 September 30, 2014 Instruments designated as accounting hedges: Foreign currency forwards $ $ Instruments not designated as accounting hedges: Foreign currency forwards $ $ Included in the amounts not designated as accounting hedges above at June 30, 2015 and September 30, 2014 are foreign currency forwards with notional principal amounts of $140.1 million and $132.1 million, respectively, that have been designed to manage exposure to foreign currency exchange risks, and for which the gains or losses of the changes in fair value of the forwards has approximately offset an equal and opposite amount of gains or losses related to the foreign currency exposure. The notional principal amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. Credit risk represents the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current interest or currency exchange rates at each respective date. The Company’s exposure to credit loss and market risk will vary over time as a function of interest and currency exchange rates. The amount of credit risk from derivative instruments and hedging activities was not material for the periods ended June 30, 2015 and September 30, 2014. Although the table above reflects the notional principal amounts of the Company’s foreign exchange instruments, it does not reflect the gains or losses associated with the exposures and transactions that the foreign exchange instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The Company generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company presents its derivative assets and derivative liabilities at their gross fair values. The Company did not have any derivative instruments with credit-risk related contingent features that would require it to post collateral as of June 30, 2015 or September 30, 2014. The table below presents the fair value of our derivative financial instruments that qualify for hedge accounting as well as their classification in the Condensed Consolidated Balance Sheets as of June 30, 2015 and September 30, 2014 (in thousands): Fair Value Balance Sheet Location June 30, 2015 September 30, 2014 Asset derivatives: Foreign currency forwards Other current assets $ $ Foreign currency forwards Other noncurrent assets $ $ Liability derivatives: Foreign currency forwards Other current liabilities $ $ Foreign currency forwards Other noncurrent liabilities Total $ $ The tables below present gains and losses recognized in other comprehensive income for the three and nine months ended June 30, 2015 and 2014 related to derivative financial instruments designated as cash flow hedges, as well as the amount of gains and losses reclassified into earnings during those periods (in thousands): Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivative Type Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Location of gain (loss) Gains (losses) recognized - Ineffective Portion and amount excluded from effectiveness testing Foreign currency forwards $ ) $ $ ) $ Other income/(expense), net $ — $ — Forward starting swap — — — — Other income/(expense), net — $ ) $ $ ) $ $ — $ Three Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivative Type Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Location of gain (loss) Gains (losses) recognized - Ineffective Portion and amount excluded from effectiveness testing Foreign currency forwards $ ) $ ) $ ) $ Other income/(expense), net $ — $ — Forward starting swap — — — — Other income/(expense), net — ) $ ) $ ) $ ) $ $ — $ ) The amount of gains and losses from derivative instruments and hedging activities classified as not highly effective did not have a material impact on the results of operations for the three and nine months ended June 30, 2015. For the three and nine months ended June 30, 2014, we recognized a loss of $0.7 million and a gain of $0.2 million, respectively, related to derivative instruments classified as not highly effective. The amount of estimated unrealized net gains from cash flow hedges which are expected to be reclassified to earnings in the next twelve months is $0.3 million, net of income taxes. Foreign currency forwards In order to limit our exposure to foreign currency exchange rate risk we generally hedge those commitments greater than $50,000 by using foreign currency exchange forward and option contracts that are denominated in currencies other than the functional currency of the subsidiary responsible for the commitment, typically the British pound, Canadian dollar, Singapore dollar, euro, Swedish krona, New Zealand dollar and Australian dollar. These contracts are designed to be effective hedges regardless of the direction or magnitude of any foreign currency exchange rate change, because they result in an equal and opposite income or cost stream that offsets the change in the value of the underlying commitment. Forward starting swap In July 2012 we entered into a forward starting swap contract with a bank in order to manage our exposure to fluctuations in interest rates related to an anticipated financing. This forward starting swap terminated on July 1, 2014. During the quarter ended June 30, 2014 we recognized a loss related to the forward starting swap of $0.7 million and during the nine months ended June 30, 2014 we recognized a gain on the swap of $0.2 million.

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2015
Segment Information
Segment Information	Note 12 — Segment Information Business segment financial data is as follows (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Sales: Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Total sales $ $ $ $ Operating income (loss): Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Unallocated corporate expenses and other ) ) ) ) Total operating income $ $ $ $ Depreciation and amortization: Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Other Total depreciation and amortization $ $ $ $ Changes in estimates on contracts for which revenue is recognized using the cost-to-cost-percentage-of-completion method had no impact on operating income for the three months ended June 30, 2015 and $4.8 million for the three months ended June 30, 2014, and decreased operating income by $13.8 million and $3.8 million for the nine months ended June 30, 2015 and 2014, respectively. These adjustments increased net income by $0.3 million ($0.01 per share) for the three months ended June 30, 2015 and decreased net income by approximately $2.0 million ($0.07 per share) for the three months ended June 30, 2014, and decreased net income by $10.7 million ($0.40 per share) and $0.3 million ($0.01 per share) for the nine months ended June 30, 2015 and 2014, respectively.

Legal Matters

Legal Matters	9 Months Ended
	Jun. 30, 2015
Legal Matters
Legal Matters	Note 13 — Legal Matters In November 2011, we received a claim from a public transit authority customer which alleged that the authority incurred a loss of transit revenue due to the inappropriate and illegal actions of one of our former employees, who has pled guilty to the charges. This individual was employed to work on a contract we acquired in a business combination in 2009 and had allegedly been committing these illegal acts from almost two years prior to our acquisition of the contract, until his arrest in May 2011. The transit system was designed and installed by a company unrelated to us. The transit authority sought recoupment from us of a total amount of $4.5 million for alleged lost revenue, fees and damages. In March 2012, the county superior court entered a default judgment against our former employee and others for $2.9 million based upon the estimated loss of revenue by the public transit authority customer. In 2012, we recorded an accrued cost of $2.9 million within general and administrative expense in the transportation systems segment based upon the court’s assessment of these losses. In July 2014, we entered into a settlement agreement with the customer for a cash payment of $2.6 million plus an assignment of forty percent of any insurance proceeds we receive under relevant insurance policies. In June 2014 we reduced our accrued costs to $2.6 million. In March 2015, our insurer paid us $1.8 million related to this matter and we paid our customer forty percent of this amount, or $0.7 million, in connection with the settlement agreement with the customer. We recognized a gain of the net amount of $1.1 million as a reduction of general and administrative expenses in the first quarter of fiscal 2015. In October and December of 2013, and January of 2014, lawsuits were filed in the United States District Court for the Northern District of Illinois, Eastern Division against us and one of our transit customers alleging variously, among other things, breach of contract, violation of the Illinois Consumer Fraud Act, unjust enrichment and violation of the Electronic Funds Act. In January 2014, these cases were consolidated into a single case and the plaintiffs are seeking to have the case certified as a class action. Plaintiffs variously claim, among other things, that: (i) they were wrongly charged for calling the call center that we operate for patrons of our transit customer, (ii) they were wrongly charged for a transfer and a second fare, (iii) they were not credited the cost of a transit card even after registration of the card, as is required under the terms of the cardholder agreement, and (iv) they were double charged for rides taken. We are undertaking the defense of the transit customer pursuant to our contractual obligations to that customer. We are investigating the matter and are vigorously defending this lawsuit. As this case remains in its early stages, we cannot estimate the probability of loss or any range of estimate of possible loss. In October 2014, a lawsuit was filed in the United States District Court, Northern District of Illinois against us and our same transit customer alleging infringement of various patents held by the plaintiff. We are investigating the matter and plan to vigorously defend the lawsuit. We are also undertaking defense of our customer in this matter pursuant to our contractual obligations to that customer. Due to the preliminary nature of this case, we cannot estimate the probability of loss or any range of estimate of possible loss. In January 2015, we received $3.6 million as a settlement of a claim related to the reimbursement of expenses we incurred primarily in 2014 for a proposal prepared for a prospective customer of our transportation systems business. This $3.6 million settlement has been recorded as a reduction of research and development and general and administrative expenses in the quarter ended March 31, 2015. We are not a party to any other material pending proceedings and we consider all other matters to be ordinary proceedings incidental to the business. We believe the outcome of these other proceedings will not have a materially adverse effect on our financial position, results of operations, or cash flows.

Restructuring Costs

Restructuring Costs	9 Months Ended
	Jun. 30, 2015
Restructuring Costs
Restructuring Costs	Note 14 — Restructuring Costs In February 2015, we implemented a plan to restructure our defense services and defense systems businesses into a single business called Cubic Global Defense to better align our defense business organizational structure with customer requirements, increase operational efficiencies and improve collaboration and innovation across the company. The restructuring plan includes a reduction in global employee headcount by approximately 100. We incurred a restructuring charge of $5.4 million in the second quarter of fiscal 2015. The total costs of the restructuring plan are not expected to be significantly greater than the charges incurred to date. Restructuring charges incurred by business segment were as follows (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Restructuring costs: Cubic Transportation Systems $ $ — $ $ — Cubic Global Defense Services — — Cubic Global Defense Systems ) — Unallocated corporate expenses and other ) — Total restructuring costs $ $ $ $ — The following table presents a rollforward of our restructuring liability as of June 30, 2015, which is included within accrued compensation and other current liabilities within our Condensed Consolidated Balance Sheets (in millions): Restructuring Liability Employee Separation Liability as of September 30, 2014 $ Accrued costs Cash payments ) Liability as of June 30, 2015 $ Certain restructuring costs are based upon estimates. Actual amounts paid may ultimately differ from these estimates. If additional costs are incurred or recognized amounts exceed costs, such changes in estimates will be recognized when incurred.

Basis for Presentation (Policie

Basis for Presentation (Policies)	9 Months Ended
	Jun. 30, 2015
Basis for Presentation
Audit Committee Investigation	Audit Committee Investigation Our Audit Committee has conducted an investigation with the assistance of Latham & Watkins LLP and Deloitte FAS LLP to review our controls and procedures in connection with programs that are accounted for under the percentage of completion method. Through the application of the Company’s internal controls, management identified an issue which led to the investigation. As a result of the investigation, the Audit Committee and management of the Company have together determined that as of September 30, 2014, the total estimated costs of certain of our CGD Systems segment contracts were inappropriately reduced during its accounting close for the year ended September 30, 2014. The inappropriate reduction of the estimated costs to complete these contracts resulted in the overstatement of CGD Systems sales and operating income by approximately $750,000 for the quarter and year ended September 30, 2014.
Correction of Immaterial Errors	Correction of Immaterial Errors During the accounting close for our March 31, 2015 financial statements, we identified certain errors, unrelated to the matters described in the paragraph above, in our September 30, 2014 financial statements. These errors included an overstatement of revenue recognition on one contract and the understatement of cost of sales on a small number of contracts. The cumulative impact of these errors resulted in an overstatement of the Company’s operating income for the year ended September 30, 2014 of $1.6 million. The cumulative amount of the errors described in the two paragraphs above overstated the Company’s operating income for fiscal 2014 by $2.4 million and understated the Company’s operating income for 2013 and prior years, cumulatively, by $0.3 million. The impact of correcting the above mentioned errors in the quarter ended December 31, 2014 understated operating income for the quarter by $2.1 million. The impact of correcting these errors (overstated) understated the following amounts in the quarter ended December 31, 2014 (in thousands): Audit Committee Investigation Error Other Errors Total Errors Net sales: Products $ $ $ Costs and expenses: Products — Services — Selling, general and administrative — ) ) — ) ) Operating income Income before income taxes Income taxes Net income attributable to Cubic $ $ $ Based on a qualitative and quantitative analysis of these errors, management concluded that all such errors are cumulatively and individually considered immaterial to the 2014 financial statements and are immaterial to the expected full year results for 2015 and had no effect on the trend of financial results. As such, these errors have been corrected in the financial statements for the quarter ended December 31, 2014.
Interim Goodwill Impairment Test	Interim Goodwill Impairment Test Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is subject to an impairment test on an annual basis and when circumstances indicate that an impairment is more likely than not. Such circumstances include a significant adverse change in the business climate for one of our reporting units or a decision to dispose of a reporting unit or a significant portion of a reporting unit. In the second quarter of fiscal 2015, we learned that our CGD Services business had not won two contracts for new work on which it had submitted proposals. Consequently, in the second quarter our Defense Services business lowered its internal profitability projections. As such, in the second quarter of fiscal 2015 we believed that it was appropriate to perform an interim goodwill impairment test for our Defense Services reporting unit. The test for goodwill impairment is a two-step process. The first step of the test is performed by comparing the fair value of each reporting unit to its carrying value, including recorded goodwill. If the carrying value of a reporting unit exceeds its fair value, the second step is performed to measure the amount of the impairment, if any, by comparing the implied fair value of goodwill to its carrying value. Any resulting impairment determined would be recorded in the current period. Determining the fair value of a reporting unit for purposes of the goodwill impairment test is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Estimates of fair value are primarily determined using discounted cash flows and market multiples from publicly traded comparable companies. These approaches use significant estimates and assumptions including projected future cash flows, discount rate reflecting the inherent risk in future cash flows, perpetual growth rate and determination of appropriate market comparables. Based upon the results of the first step of the impairment analysis that we performed, the estimated fair value for our Defense Services reporting unit exceeded its carrying value. As such, no impairment of goodwill was recorded in connection with our interim impairment test performed in the second quarter of fiscal 2015. In the third quarter of fiscal 2015, no interim goodwill impairment test was deemed necessary. Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. Also, changes in estimates and assumptions we make in conducting our goodwill assessment could affect the estimated fair value of our reporting units and could result in a goodwill impairment charge in a future period. Significant Accounting Policies There have been no material changes to our significant accounting policies as compared with the significant accounting policies described in our Annual Report on Form 10-K for the year ended September 30, 2014.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance and will require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. ASU 2014-09 will be effective for us starting in the first quarter of fiscal 2019 or we may adopt ASU 2014-09 early in the first quarter of 2018. ASU 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU 2014-09 is recognized as an adjustment to the opening retained earnings balance in the year of adoption. We have not yet determined which method of adoption we will select or if we will choose to adopt the standard early. As the new standard will supersede substantially all existing revenue guidance affecting us under GAAP, it could impact revenue and cost recognition on a significant number of contracts across our business segments, in addition to our business processes and our information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern , which requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016. ASU 2014-15 will be effective for the Company beginning in the first quarter of fiscal 2016. Early adoption is permitted for financial statements that have not been previously issued. This adoption is not expected to have a significant impact on our financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of fiscal 2016. We are currently evaluating the impact of ASU 2015-02 on our financial statements. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 will be effective for the Company beginning on October 1, 2016, with early adoption permitted. We are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs which requires that all costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt, similar to the presentation of debt discounts. ASU 2015-03 is effective for us on October 1, 2016 with early adoption permitted. We do not expect that the adoption of this new accounting guidance will have a material impact on our consolidated financial statements.

Basis for Presentation (Tables)

Basis for Presentation (Tables)	9 Months Ended
	Jun. 30, 2015
Basis for Presentation
Schedule of impact of correcting the errors (overstated) understated	The impact of correcting these errors (overstated) understated the following amounts in the quarter ended December 31, 2014 (in thousands): Audit Committee Investigation Error Other Errors Total Errors Net sales: Products $ $ $ Costs and expenses: Products — Services — Selling, general and administrative — ) ) — ) ) Operating income Income before income taxes Income taxes Net income attributable to Cubic $ $ $

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Jun. 30, 2015
Acquisitions
Schedule of changes in the carrying amount of goodwill	Changes in goodwill for the nine months ended June 30, 2015 were as follows (in millions): Cubic Global Cubic Global Transportation Defense Defense Systems Services Systems Total Balances at September 30, 2014 $ $ $ $ Acquisitions — — Foreign currency exchange rate changes ) — ) ) Balances at June 30, 2015 $ $ $ $
Schedule of unaudited pro forma information	The following unaudited pro forma information presents our consolidated results of operations as if DTECH, Intific and ITMS had been included in our consolidated results since October 1, 2013 (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales $ $ $ $ Net income attributable to Cubic $ $ $ $
DTECH LABS, Inc.
Acquisitions
Schedule of estimated fair values of the assets acquired and liabilities assumed at the acquisition date	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Non compete agreements Backlog Cash Accounts receivable Inventory Warranty obligation ) Tax liabilities ) Accounts payable and accrued expenses ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $
Schedule of estimated amortization expense related to acquisition	Based upon the preliminary estimate of the fair value of identifiable intangible assets, the estimated amortization expense related to the intangible assets recorded in connection with our acquisition of DTECH for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter
Intific Inc.
Acquisitions
Schedule of estimated fair values of the assets acquired and liabilities assumed at the acquisition date	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Technology Backlog Other intangible assets Accounts receivable Deferred tax assets Accounts payable and accrued expenses ) Deferred tax liabilities ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of Intific for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter
ITMS
Acquisitions
Schedule of estimated fair values of the assets acquired and liabilities assumed at the acquisition date	The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ Intellectual property Backlog Supplier relationships Agreements with seller Accounts receivable - billed Accounts receivable - unbilled Deferred tax liabilities, net ) Deferred revenue ) Accounts payable and accrued expenses ) Other net assets acquired Net identifiable assets acquired Goodwill Net assets acquired $
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of ITMS for future periods is as follows (in millions): Year Ended September 30, 2015 $ 2016 2017 2018 2019 Thereafter

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Jun. 30, 2015
Net Income Per Share
Schedule of computation of basic and diluted EPS	Basic and diluted EPS are computed as follows (amounts in thousands, except per share data). Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to Cubic $ $ $ $ Weighted average shares - basic Effect of dilutive securities Weighted average shares - diluted Net income per share attributable to Cubic, basic $ $ $ $ Effect of dilutive securities — ) — ) Net income per share attributable to Cubic, diluted $ $ $ $ Anti-dilutive employee share-based awards — — — —

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	9 Months Ended
	Jun. 30, 2015
Balance Sheet Details
Schedule of components of accounts receivable	The components of accounts receivable are as follows (in thousands): June 30, September 30, 2015 2014 Trade and other receivables $ $ Long-term contracts: Billed Unbilled Allowance for doubtful accounts ) ) Total accounts receivable Less estimated amounts not currently due ) ) Current accounts receivable $ $
Components of inventories	Inventories consist of the following (in thousands): June 30, September 30, 2015 2014 Work in process and inventoried costs under long-term contracts $ $ Materials and purchased parts Customer advances ) ) Net inventories $ $

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Summary of change in fair value of liability	For the period from April 1, 2015 through June 30, 2015 t he following table summarizes the change in fair value of our Level 3 contingent consideration liability (in thousands): Balance as of April 1, 2015 $ Total remeasurement recognized in earnings Balance as of June 30, 2015 $
Summary of assets and liabilities measured and recorded at fair value on Balance Sheet on a recurring basis	The following table presents assets and liabilities measured and recorded at fair value on our balance sheets on a recurring basis (in thousands): June 30, 2015 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ $ $ — $ Marketable securities — — Current derivative assets — — Noncurrent derivative assets — — Marketable securities in rabbi trust — — Total assets measured at fair value $ $ $ — $ Liabilities Current derivative liabilities $ — $ $ — $ Noncurrent derivative liabilities — — Current contingent consideration to seller of DTECH — — Noncurrent contingent consideration to seller of DTECH — — Total liabilities measured at fair value $ — $ $ $ September 30, 2014 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ $ $ — $ Marketable securities — — Current derivative assets — — Noncurrent derivative assets — — Total assets measured at fair value $ $ $ — $ Liabilities Current derivative liabilities $ — $ $ — $ Noncurrent derivative liabilities — — Total liabilities measured at fair value $ — $ $ — $
Schedule of estimated fair value and carrying value of our long-term debt	The following table presents the estimated fair value and carrying value of our long-term debt (in millions): June 30, September 30, 2015 2014 Fair value $ $ Carrying value $ $

Pension Plans (Tables)

Pension Plans (Tables)	9 Months Ended
	Jun. 30, 2015
Pension Plans
Components of net periodic pension cost (benefit)	The components of net periodic pension cost (benefit) are as follows (in thousands): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of actuarial loss Administrative expenses Net pension benefit $ ) $ ) $ ) $ )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Summary of RSU activity	Unvested Restricted Stock Units Number of Shares Weighted- Average Grant- Date Fair Value Unvested at September 30, 2014 $ Granted Vested ) Forfeited ) Unvested at June 30, 2015 $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Schedule of stock-based compensation expense related to stock-based awards	We recorded non-cash compensation expense related to stock-based awards for the three- and nine-month period ended June 30, 2015 and 2014 as follows (in thousands): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of sales $ $ $ $ Selling, general and administrative $ $ $ $

Derivative Instruments and He29

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities
Schedule of notional principal amounts of the outstanding derivative instruments	The following table shows the notional principal amounts of our outstanding derivative instruments as of June 30, 2015 and September 30, 2014 (in thousands): Notional Principal June 30, 2015 September 30, 2014 Instruments designated as accounting hedges: Foreign currency forwards $ $ Instruments not designated as accounting hedges: Foreign currency forwards $ $
Schedule of fair value of derivative financial instruments	The table below presents the fair value of our derivative financial instruments that qualify for hedge accounting as well as their classification in the Condensed Consolidated Balance Sheets as of June 30, 2015 and September 30, 2014 (in thousands): Fair Value Balance Sheet Location June 30, 2015 September 30, 2014 Asset derivatives: Foreign currency forwards Other current assets $ $ Foreign currency forwards Other noncurrent assets $ $ Liability derivatives: Foreign currency forwards Other current liabilities $ $ Foreign currency forwards Other noncurrent liabilities Total $ $
Schedule of gains and losses recognized in other comprehensive income (loss) on derivative financial instruments designated as cash flow hedges	The tables below present gains and losses recognized in other comprehensive income for the three and nine months ended June 30, 2015 and 2014 related to derivative financial instruments designated as cash flow hedges, as well as the amount of gains and losses reclassified into earnings during those periods (in thousands): Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivative Type Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Location of gain (loss) Gains (losses) recognized - Ineffective Portion and amount excluded from effectiveness testing Foreign currency forwards $ ) $ $ ) $ Other income/(expense), net $ — $ — Forward starting swap — — — — Other income/(expense), net — $ ) $ $ ) $ $ — $ Three Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivative Type Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Gains (losses) recognized in OCI Gains (losses) reclassified into earnings - Effective Portion Location of gain (loss) Gains (losses) recognized - Ineffective Portion and amount excluded from effectiveness testing Foreign currency forwards $ ) $ ) $ ) $ Other income/(expense), net $ — $ — Forward starting swap — — — — Other income/(expense), net — ) $ ) $ ) $ ) $ $ — $ )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2015
Segment Information
Schedule of business segment financial data	Business segment financial data is as follows (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Sales: Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Total sales $ $ $ $ Operating income (loss): Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Unallocated corporate expenses and other ) ) ) ) Total operating income $ $ $ $ Depreciation and amortization: Cubic Transportation Systems $ $ $ $ Cubic Global Defense Services Cubic Global Defense Systems Other Total depreciation and amortization $ $ $ $

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Jun. 30, 2015
Restructuring Costs
Schedule Of Restructuring Charges	Restructuring charges incurred by business segment were as follows (in millions): Nine Months Ended Three Months Ended June 30, June 30, 2015 2014 2015 2014 Restructuring costs: Cubic Transportation Systems $ $ — $ $ — Cubic Global Defense Services — — Cubic Global Defense Systems ) — Unallocated corporate expenses and other ) — Total restructuring costs $ $ $ $ —
Summary of the activity relating to the restructuring liability and employee separation expenses	The following table presents a rollforward of our restructuring liability as of June 30, 2015, which is included within accrued compensation and other current liabilities within our Condensed Consolidated Balance Sheets (in millions): Restructuring Liability Employee Separation Liability as of September 30, 2014 $ Accrued costs Cash payments ) Liability as of June 30, 2015 $

Basis for Presentation (Details

Basis for Presentation (Details)	1 Months Ended	3 Months Ended		12 Months Ended
	Feb. 28, 2015item	Mar. 31, 2015USD ($)contract	Sep. 30, 2014USD ($)	Sep. 30, 2014USD ($)
Quantifying Misstatement in Current Year Financial Statements
Number of reporting segments | item	2
Interim Goodwill Impairment Test
Impairment of goodwill		$ 0
Defense service reporting unit
Interim Goodwill Impairment Test
Number of contracts | contract		2
Adjustments | Audit Committee Investigation
Quantifying Misstatement in Current Year Financial Statements
Quantifying immaterial misstatement amount			$ 750,000	$ 750,000
Adjustments | Correction Of Immaterial Errors
Quantifying Misstatement in Current Year Financial Statements
Quantifying immaterial misstatement amount				$ 1,600,000

Basis for Presentation (Detai33

Basis for Presentation (Details 2) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Net sales:
Products	$ 133,762		$ 136,649	$ 392,884	$ 405,419
Costs and expenses:
Products	94,381		108,301	288,926	305,245
Services	175,334		156,726	480,671	480,906
Selling, general and administrative expenses	55,127		46,489	155,603	131,508
Total costs and expenses	337,513		321,142	964,450	948,764
Operating income	10,293		19,215	40,678	53,222
Income before income taxes	9,345		17,208	37,800	50,005
Income taxes	559		4,992	34,863	13,240
Net income attributable to Cubic	$ 8,780		$ 12,206	$ 2,908	$ 36,686
Adjustments
Net sales:
Products		$ 1,264
Costs and expenses:
Products		138
Services		438
Selling, general and administrative expenses		(1,385)
Total costs and expenses		(809)
Operating income		2,073				$ 2,400	$ 300
Income before income taxes		2,073
Income taxes		789
Net income attributable to Cubic		1,284
Adjustments | Audit Committee Investigation Error
Net sales:
Products		747
Costs and expenses:
Operating income		747
Income before income taxes		747
Income taxes		299
Net income attributable to Cubic		448
Adjustments | Other Errors
Net sales:
Products		517
Costs and expenses:
Products		138
Services		438
Selling, general and administrative expenses		(1,385)
Total costs and expenses		(809)
Operating income		1,326
Income before income taxes		1,326
Income taxes		490
Net income attributable to Cubic		$ 836

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Dec. 16, 2014	Feb. 28, 2014	Nov. 26, 2013	May. 31, 2014	Nov. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Acquisitions
Net sales						$ 347,806	$ 340,357			$ 1,005,128	$ 1,001,986
Net loss after taxes						(8,786)	(12,216)			(2,937)	(36,765)
Purchase price allocation
Goodwill						239,824		$ 184,141		184,141
Changes in the carrying amount of goodwill
Balance at the beginning of the period								184,141		184,141
Balance at the end of the period						239,824				239,824
Unaudited pro forma information
Net sales						347,800	352,500			1,014,800	1,046,500
Net income attributable to Cubic						8,800	13,800			4,000	37,900
Adjustments made for transaction expenses										0
Transportation Systems
Acquisitions
Net sales						133,300	153,000			411,500	429,100
Cubic Global Defense Services
Acquisitions
Net sales						111,900	91,800			298,400	291,700
Cubic Global Defense Systems
Acquisitions
Net sales						102,600	95,600			295,200	281,200
DTECH LABS, Inc.
Acquisitions
Net sales						10,800				22,600
Net loss after taxes						200				2,000
Transaction and acquisition related costs										800
Cost of acquisition net	$ 99,500
Contingent Amount	15,000
Fair value of consideration transferred	99,400
Cash consideration paid										$ 91,000
Current liability of additional cash consideration to be paid						8,900
Additional cash consideration accelerated if certain event occurs	4,900
Fair value of the potential customer	4,500
Estimated fair value of the liability for contingent consideration						4,400
Purchase price allocation
Cash	900
Deferred tax liabilities	(3,300)
Accounts payable and accrued expenses	(3,300)
Other net assets acquired	200
Net identifiable assets acquired	41,600
Goodwill	57,800
Net assets acquired	99,400
Accounts receivable	5,400
Inventory	4,200
Warranty obligation	(400)
Weighted average useful life of intangible assets										2 years
Estimated amortization expense related to the intangible assets
2,015	9,200
2,016	8,000
2,017	6,800
2,018	5,500
2,019	4,100
Thereafter	4,300
Changes in the carrying amount of goodwill
Balance at the end of the period	57,800
DTECH LABS, Inc. | Customer relationships
Purchase price allocation
Amortizable intangible assets	35,100
DTECH LABS, Inc. | Non-compete agreements
Purchase price allocation
Amortizable intangible assets	700
DTECH LABS, Inc. | Backlog
Purchase price allocation
Amortizable intangible assets	$ 2,100
Intific Inc.
Acquisitions
Net sales						3,800	1,900			$ 10,600	2,700
Net loss after taxes						300	1,700			1,500	(3,800)
Transaction and acquisition related costs											200
Compensation expense paid											$ 3,700
Fair value of consideration transferred		$ 12,400
Cash consideration paid										$ 11,200
Current liability of additional cash consideration to be paid						1,200
Purchase price allocation
Other intangible assets		200
Deferred tax liabilities		(1,500)
Accounts payable and accrued expenses		(600)
Other net assets acquired		500
Net identifiable assets acquired		5,000
Goodwill		7,400
Net assets acquired		12,400
Accounts receivable		1,500
Deferred tax assets		1,500
Weighted average useful life of intangible assets										2 years
Estimated amortization expense related to the intangible assets
2,015		900
2,016		700
2,017		600
2,018		500
2,019		200
Thereafter		100
Changes in the carrying amount of goodwill
Balance at the end of the period		7,400
Intific Inc. | Customer relationships
Purchase price allocation
Amortizable intangible assets		2,000
Intific Inc. | Technology
Purchase price allocation
Amortizable intangible assets		700
Intific Inc. | Backlog
Purchase price allocation
Amortizable intangible assets		$ 700
ITMS
Acquisitions
Net sales						10,900	12,800	33,100	$ 30,100
Net loss after taxes						600	$ 500	2,200	$ 200
Transaction and acquisition related costs										$ 500
Fair value of consideration transferred			$ 72,200
Cash consideration paid				$ 3,200	$ 69,000
Purchase price allocation
Accounts receivable - billed			4,400
Accounts receivable - unbilled			6,900
Deferred tax liabilities			(200)
Deferred revenue			(2,600)
Accounts payable and accrued expenses			(4,600)
Other net assets acquired			2,600
Net identifiable assets acquired			31,400
Goodwill			40,800			239,800		184,200		$ 184,200
Net assets acquired			72,200
Weighted average useful life of intangible assets										2 years
Estimated amortization expense related to the intangible assets
2,015			5,900
2,016			4,900
2,017			3,900
2,018			2,900
2,019			900
Thereafter			100
Changes in the carrying amount of goodwill
Balance at the beginning of the period								184,200		$ 184,200
Acquisitions										57,800
Foreign currency exchange rate changes										(2,200)
Balance at the end of the period			40,800			239,800				239,800
ITMS | Transportation Systems
Purchase price allocation
Goodwill						57,600		59,200		59,200
Changes in the carrying amount of goodwill
Balance at the beginning of the period								59,200		59,200
Foreign currency exchange rate changes										(1,600)
Balance at the end of the period						57,600				57,600
ITMS | Cubic Global Defense Services
Purchase price allocation
Goodwill						94,400		94,400		94,400
Changes in the carrying amount of goodwill
Balance at the beginning of the period								94,400		94,400
Balance at the end of the period						94,400				94,400
ITMS | Cubic Global Defense Systems
Purchase price allocation
Goodwill						87,800		30,600		30,600
Changes in the carrying amount of goodwill
Balance at the beginning of the period								$ 30,600		30,600
Acquisitions										57,800
Foreign currency exchange rate changes										(600)
Balance at the end of the period						$ 87,800				$ 87,800
ITMS | Customer relationships
Purchase price allocation
Amortizable intangible assets			15,700
ITMS | Intellectual property
Purchase price allocation
Amortizable intangible assets			1,600
ITMS | Backlog
Purchase price allocation
Amortizable intangible assets			5,700
ITMS | Supplier relationships
Purchase price allocation
Amortizable intangible assets			600
ITMS | Agreements with Seller
Purchase price allocation
Amortizable intangible assets			$ 1,300

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Income Per Share
Net income attributable to Cubic	$ 8,780	$ 12,206	$ 2,908	$ 36,686
Weighted average shares - basic	26,883	26,789	26,868	26,786
Effect of dilutive securities (in shares)	77	132	57	115
Weighted average shares - diluted	26,960	26,921	26,925	26,901
Net income per share attributable to Cubic, basic (in dollars per share)	$ 0.33	$ 0.46	$ 0.11	$ 1.37
Effect of dilutive securities (in dollars per share)		(0.01)		(0.01)
Net income per share attributable to Cubic, diluted (in dollars per share)	$ 0.33	$ 0.45	$ 0.11	$ 1.36

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Marketable Securities
Realized or unrealized gains or losses on marketable securities			$ 0
Accounts Receivable
Trade and other receivables	$ 16,119		16,119		$ 30,593
Long-term contracts:
Billed	92,436		92,436		121,871
Unbilled	294,442		294,442		258,074
Allowance for doubtful accounts	(167)		(167)		(489)
Total accounts receivable	402,830		402,830		410,049
Less estimated amounts not currently due	(13,460)		(13,460)		(15,870)
Current accounts receivable	389,370		$ 389,370		394,179
Period that receivables will not be collected within to be classified as not currently due			1 year
Inventories
Work in process and inventoried costs under long-term	83,061		$ 83,061		58,440
Materials and purchased parts	2,367		2,367		125
Customer advances	(19,169)		(19,169)		(19,790)
Net inventories	66,259		66,259		38,775
Costs incurred outside the scope of work or in advance of a contract award	1,800		1,800		2,300
Long-term Capitalized Costs
Long-term capitalized costs being recognized as cost of sales	2,300	$ 5,100	6,000	$ 6,100
Deferred Compensation Plan
Deferred compensation	9,700		9,700		$ 9,500
Carrying value of Rabbi trust to fund deferred compensation liabilities	3,000		3,000
Carrying value of insurance contracts	2,000		2,000
Carrying value of marketable securities	1,000		1,000
Software
Capitalized Software
Capitalized software, net	1,300		1,300
Amortization expense			0
Addition to capitalized software expenses	4,700		$ 6,600
Software | Maximum
Capitalized Software
Estimated useful life			P7Y
Software | Minimum
Capitalized Software
Estimated useful life			P3Y
Other Software
Capitalized Software
Capitalized software, net	$ 12,100		$ 12,100

Fair Value of Financial Instr37

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2014
Debt instruments
Fair Value	$ 99,700		$ 99,700	$ 99,600
Carrying value	101,900		$ 101,900	102,400
DTECH LABS, Inc.
Assets and liabilities measured at fair value on a recurring basis
Volatility earning metrics			22.00%
Change in fair value of contingent consideration since the date of the acquisition		$ 0
Contingent consideration expense		0
Assets and liabilities measured at fair value | Level 1
Assets
Cash equivalents	56,571		$ 56,571	46,183
Marketable securities in rabbi trust	992		992
Total assets measured at fair value	57,563		57,563	46,183
Assets and liabilities measured at fair value | Level 2
Assets
Cash equivalents	26,320		26,320	34,511
Marketable securities	5,601		5,601	1,196
Current derivative assets	9,693		9,693	7,389
Noncurrent derivative assets	13,466		13,466	5,920
Total assets measured at fair value	55,080		55,080	49,016
Liabilities
Current derivative liabilities	9,287		9,287	6,645
Noncurrent derivative liabilities	13,466		13,466	5,878
Total liabilities measured at fair value	22,753		22,753	12,523
Assets and liabilities measured at fair value | Level 3
Liabilities
Current contingent consideration to seller of DTECH	1,989		1,989
Noncurrent contingent consideration to seller of DTECH	2,361		2,361
Total liabilities measured at fair value	4,350		4,350
Assets and liabilities measured at fair value | Total
Assets
Cash equivalents	82,891		82,891	80,694
Marketable securities	5,601		5,601	1,196
Current derivative assets	9,693		9,693	7,389
Noncurrent derivative assets	13,466		13,466	5,920
Marketable securities in rabbi trust	992		992
Total assets measured at fair value	112,643		112,643	95,199
Liabilities
Current derivative liabilities	9,287		9,287	6,645
Noncurrent derivative liabilities	13,466		13,466	5,878
Current contingent consideration to seller of DTECH	1,989		1,989
Noncurrent contingent consideration to seller of DTECH	2,361		2,361
Total liabilities measured at fair value	27,103		27,103	$ 12,523
Contingent Consideration liability | Level 3
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period	3,900
Total remeasurement recognized in earnings	450
Balance at the ending period	$ 4,350	$ 3,900	$ 4,350

Financing Arrangements (Details

Financing Arrangements (Details) $ in Thousands, NZD in Millions, AUD in Millions	Jul. 17, 2015USD ($)	Mar. 31, 2013USD ($)	Jun. 30, 2015NZD	Jun. 30, 2015AUD	Jun. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Short term borrowings
Restricted cash					$ 69,202	$ 69,056
Self-insurance liabilities					8,700	$ 9,100
Letters of credit primarily for self-insured liabilities
Short term borrowings
Letters of Credit and bank guarantees outstanding					16,600
Fair value of instruments					0
Letters of credit and bank guarantees
Short term borrowings
Letters of Credit and bank guarantees outstanding					79,300
New Zealand
Short term borrowings
Maximum borrowing capacity under credit agreement			NZD 0.5		340
Borrowings outstanding					0
Australia
Short term borrowings
Maximum borrowing capacity under credit agreement				AUD 3	2,300
Borrowings outstanding					0
Senior unsecured notes
Financial arrangement
Interest rate (as a percent)		3.35%
Additional senior notes principal amount agreed to be issued		$ 100,000
Senior unsecured notes | Subsequent event
Financial arrangement
Interest rate (as a percent)	3.70%
Additional senior notes principal amount agreed to be issued	$ 25,000
Revolving credit agreement
Short term borrowings
Maximum borrowing capacity under credit agreement					200,000
Term under revolving credit or letter of agreement			5 years
Borrowings outstanding					70,000
Letters of credit outstanding					22,900
Available amount under line of credit					107,100
Secured letter of credit agreement
Short term borrowings
Maximum borrowing capacity under credit agreement					62,800
Letters of credit outstanding					61,000
Secured letter of credit agreement | United Kingdom
Short term borrowings
Restricted cash					$ 69,200

Pension Plans (Details)

Pension Plans (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of net periodic pension cost (benefit)
Service cost	$ 166	$ 157	$ 505	$ 463
Interest cost	2,248	2,505	6,833	7,461
Expected return on plan assets	(3,483)	(3,313)	(10,363)	(9,869)
Amortization of actuarial loss	183	202	521	599
Administrative expenses	42	38	121	114
Net pension cost	$ (844)	$ (411)	$ (2,383)	$ (1,232)

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Mar. 21, 2015itemshares	Jun. 30, 2015item$ / sharesshares
RSUs
Stockholders' Equity
Number of units awarded (in shares)		303,104
Number of units awarded (in shares)		1,034,689
Number of shares of common stock that each award holder has the contingent right to receive	1
Awards vested (in shares)		160,499
Expected awards vested (in shares)		273,131
Vested awards to date		230,493
Number of Shares
Balance unvested at the beginning of the period (in shares)		642,949
Granted (in shares)		303,104
Vested (in shares)		(160,499)
Forfeited (in shares)		(43,341)
Balance unvested at the end of the period (in shares)		742,213
Weighted Average Grant-Date Fair Value
Balance unvested at the beginning of the period (in dollars per share) | $ / shares		$ 46.43
Granted (in dollars per share) | $ / shares		48.14
Vested (in dollars per share) | $ / shares		45.91
Forfeited (in dollars per share) | $ / shares		47.48
Balance unvested at the end of the period (in dollars per share) | $ / shares		$ 47.17
Time-based RSUs
Stockholders' Equity
Number of units awarded (in shares)		546,085
Number of equal installments for vesting of stock awards | item	4
Performance-based RSUs
Stockholders' Equity
Number of units awarded (in shares)		488,604
Vesting period		3 years
Number of vesting criteria's which has to be satisfied out of total vesting criteria's | item		1
Number of vesting criteria's | item		3

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	$ 1,361	$ 1,785	$ 6,652	$ 4,370
Estimated forfeiture rate (as a percent)			12.50%
CEO
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	1,700
RSUs
Stock-Based Compensation
Unrecognized compensation cost related to unvested awards	26,500		$ 26,500
Aggregate fair value of awards			$ 13,100
Weighted-average period of recognition			1 year 8 months 12 days
RSUs | Cost of sales
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	117	192	$ 536	397
RSUs | Selling, general and administrative
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	$ 1,244	$ 1,593	$ 6,116	$ 3,973

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014
Income Taxes
Effective tax rate (as a percent)	6.00%		22.00%
Additional income tax expense	$ 0.9	$ 29.3
Unrecognized tax benefits, exclusive of interest and penalties	6.7		$ 4.7
Unrecognized tax benefits from permanent tax adjustments that, if recognized, would affect the effective rate	4
Estimated unrecognized tax benefits resulting from possible resolution of reviews by domestic and international taxing authorities	3.4
Deferred tax asset valuation allowance	$ 46.2

Derivative Instruments and He43

Derivative Instruments and Hedging Activities (Details) - Foreign currency forwards - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Not designated but designed to manage exposure:
Derivative instruments and hedging activities
Notional Principal outstanding derivative instruments	$ 140,100	$ 132,100
Instruments designated as accounting hedges:
Derivative instruments and hedging activities
Notional Principal outstanding derivative instruments	241,925	249,628
Instruments not designated as accounting hedges:
Derivative instruments and hedging activities
Notional Principal outstanding derivative instruments	$ 146,767	$ 136,955

Derivative Instruments and He44

Derivative Instruments and Hedging Activities (Details 2) - Instruments designated as accounting hedges: - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Derivative instruments and hedging activities
Asset derivatives:	$ 23,159	$ 13,309
Liability derivatives:	22,753	12,523
Foreign currency forwards | Other current assets
Derivative instruments and hedging activities
Asset derivatives:	9,693	7,389
Foreign currency forwards | Other noncurrent assets
Derivative instruments and hedging activities
Asset derivatives:	13,466	5,920
Foreign currency forwards | Other current liabilities
Derivative instruments and hedging activities
Liability derivatives:	9,287	6,645
Foreign currency forwards | Other noncurrent liabilities
Derivative instruments and hedging activities
Liability derivatives:	$ 13,466	$ 5,878

Derivative Instruments and He45

Derivative Instruments and Hedging Activities (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative instruments and hedging activities
Gains (losses) recognized in OCI	$ (534)	$ (443)	$ (382)	$ (757)
Gains (losses) reclassified into earnings - Effective Portion	(156)	320	1,180	355
Gain (losses) recognized - Ineffective Portion and Amount excluded from effectiveness testing		(673)		164
Estimated unrealized net gains from cash flow hedges which are expected to be reclassified into earnings in the next twelve months	300		300
Foreign currency forwards
Derivative instruments and hedging activities
Gains (losses) recognized in OCI	(534)	(443)	(382)	(757)
Gains (losses) reclassified into earnings - Effective Portion	$ (156)	320	$ 1,180	355
Forward starting swap | Other income/(expense), net
Derivative instruments and hedging activities
Gain (losses) recognized - Ineffective Portion and Amount excluded from effectiveness testing		$ (673)		$ 164

Derivative Instruments and He46

Derivative Instruments and Hedging Activities (Details 4) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2015
Foreign currency forwards
Derivative instruments and hedging activities
Minimum commitment amount for hedging			$ 50,000
Forward starting swap
Derivative instruments and hedging activities
Gain on derivative settlement	$ 700,000	$ 200,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue recognition
Sales	$ 347,806	$ 340,357	$ 1,005,128	$ 1,001,986
Operating income (loss)	10,293	19,215	40,678	53,222
Depreciation and amortization	8,653	7,511	28,717	22,740
Transportation Systems
Revenue recognition
Sales	133,300	153,000	411,500	429,100
Operating income (loss)	11,700	15,300	50,800	35,200
Depreciation and amortization	2,800	2,700	8,400	8,500
Cubic Global Defense Services
Revenue recognition
Sales	111,900	91,800	298,400	291,700
Operating income (loss)	3,100	1,800	4,200	6,000
Depreciation and amortization	1,900	2,700	6,200	8,500
Cubic Global Defense Systems
Revenue recognition
Sales	102,600	95,600	295,200	281,200
Operating income (loss)	3,200	3,300	2,800	16,100
Depreciation and amortization	3,900	1,800	13,300	5,000
Other
Revenue recognition
Depreciation and amortization	100	300	800	700
Unallocated corporate expenses and other
Revenue recognition
Operating income (loss)	$ (7,700)	$ (1,200)	$ (17,100)	$ (4,100)

Segment Information (Detail 2)

Segment Information (Detail 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue recognition
Increase (decrease) in operating income	$ 10,293	$ 19,215	$ 40,678	$ 53,222
Increase (decrease) in net income	$ 8,786	$ 12,216	$ 2,937	$ 36,765
Increase (decrease) in net income per common share (in dollars per share)	$ 0.33	$ 0.46	$ 0.11	$ 1.37
Change in estimated total costs | Adjustment
Revenue recognition
Increase (decrease) in operating income		$ (4,800)	$ (13,800)	$ (3,800)
Increase (decrease) in net income	$ 300	$ (2,000)	$ 10,700	$ (300)
Increase (decrease) in net income per common share (in dollars per share)	$ 0.01	$ 0.07	$ 0.40	$ 0.01

Legal Matters (Details)

Legal Matters (Details) $ in Millions	1 Months Ended					3 Months Ended
	Mar. 31, 2015USD ($)	Jan. 31, 2015USD ($)	Jul. 31, 2014USD ($)	Mar. 31, 2012USD ($)	Nov. 30, 2011USD ($)item	Mar. 31, 2015USD ($)	Jun. 30, 2014USD ($)
Legal Matters
Claim settlement		$ 3.6
General and administrative expenses
Legal Matters
Claim settlement						$ 3.6
Claim from public transit authority customer
Legal Matters
Number of former employees alleged for loss of revenue due to inappropriate and illegal actions | item					1
Period prior to acquisition of contract during which a former employee was committing illegal acts					2 years
Amount of recoupment sought under claim for alleged lost revenue, fees and damages					$ 4.5
Default judgment award amount				$ 2.9
Estimated loss of revenue				$ 2.9			$ 2.6
Percentage of insurance proceeds	40.00%		40.00%
Amount to be paid under settlement agreement excluding percentage of insurance proceeds received	$ 0.7		$ 2.6
Amount received from insurer	1.8
Claim from public transit authority customer | General and administrative expenses
Legal Matters
Claim settlement	$ 1.1

Restructuring Costs (Details)

Restructuring Costs (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)
Restructuring plan
Reduction in employee headcount | item				100
Restructuring costs	$ 127	$ 5,400	$ 24	$ 5,385	$ 227
Unallocated corporate expenses and other
Restructuring plan
Restructuring costs	100			600	(100)
Transportation Systems
Restructuring plan
Restructuring costs	100			500
Cubic Global Defense Services
Restructuring plan
Restructuring costs	100			300
Cubic Global Defense Systems
Restructuring plan
Restructuring costs	$ (200)			$ 4,000	$ 300

Restructuring Costs (Details 2)

Restructuring Costs (Details 2) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring liability
Liability at the beginning of the period				$ 800
Accrued costs	$ 127	$ 5,400	$ 24	5,385	$ 227
Cash payments				(4,400)
Liability at the end of the period	$ 1,800			$ 1,800